NYSE$AIN

Albany International Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Albany International's Q4 2020 results reflected challenges due to the pandemic and Boeing 737 MAX grounding, but operations performed well with impressive profit margins in both segments.

Albany International reported net sales of $226.9 million, a decrease of 12% compared to the prior year, with a net income of $27.5 million ($0.85 per share). Adjusted EPS was $0.89, and Adjusted EBITDA was $57.3 million, down 10.4% year-over-year. The company highlighted strong free cash flow and a healthy balance sheet.

  • Net sales decreased by 12% to $226.9 million due to lower demand for LEAP components in the Engineered Composites segment.
  • Operating income decreased by 20% to $35.0 million, primarily due to lower gross profit and higher STG&R expenses.
  • Net income attributable to the Company was $27.5 million ($0.85 per share), compared to $29.1 million ($0.90 per share) in Q4 2019.
  • Adjusted EBITDA decreased by 10.4% to $57.3 million.

Headline financials

Total Revenue

$227M

Previous: $258M-12.0%
EPS (adj)

$0.89

Previous: $0.97-8.2%
Effective Tax Rate

13.5%

Previous: 24.8%-45.6%
Capital Expenditures

$10.1M

Previous: $18.5M-45.2%
Free Cash Flow

$46.4M

Previous: $55.2M-16.0%
Net Income

$27.6M

Previous: $29.6M-6.7%
Operating Income

$35M

Previous: $43.6M-19.7%
Gross Profit

$91.3M

Previous: $96.6M-5.5%
Cash & Equivalents

$241M

Previous: $196M+23.4%
Total Assets

$1.55B

Previous: $1.47B+5.1%

Revenue & EPS history

Albany · Revenue · Quarterly

$227M

Q4 2020-12%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Albany · $144M total across 1 segment · Q4 2020

  • Machine Clothing
    $144M-4.3%

Forward guidance

Albany International provided initial financial guidance for 2021, anticipating strong performance in Machine Clothing but expecting a significant impact on Engineered Composites due to customer destocking.

Tailwinds

  • Total company revenue of between $850 and $890 million.
  • Effective income tax rate, including tax adjustments, of 28% to 30%.
  • Total company depreciation and amortization of between $70 and $75 million.
  • GAAP and Adjusted earnings per share of between $2.40 and $2.80.
  • Total company Adjusted EBITDA of $195 to $220 million.

Headwinds

  • Engineered Composites being significantly impacted by a destocking cycle for our finished goods in our customers’ supply chains.
  • Albany Engineered Composites (AEC) revenue between $275 to $295 million.
  • Albany Engineered Composites Adjusted EBITDA of $55 to $65 million.
  • Capital expenditures in the range of $50 to $60 million.
  • Machine Clothing revenue of $570 to $590 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.4%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+19.1%

Q3 2015

Best reaction

-12.5%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.8%+11.2%
Q4 2025-1.6%-0.5%-10.0%
Q3 2025-1.0%-16.5%-9.1%
Q1 2025-5.4%-3.2%+0.5%
Q4 2024-6.4%-9.3%-12.0%
Q3 2024-5.2%-1.9%+15.7%
Q2 2024+3.6%+5.5%+2.4%
Q1 2024-9.0%-3.4%-2.7%
Q4 2023+3.3%+2.6%+5.5%
Q3 2023-2.3%-5.1%-0.3%
Q2 2023-0.4%+2.0%-0.7%
Q1 2023-5.2%+0.2%-5.4%
Q4 2022-3.8%-4.7%-17.8%
Q3 2022+1.0%+4.3%+17.2%
Q2 2022+5.3%+12.2%+14.1%
Q1 2022-7.7%-5.9%-1.2%
Q4 2021+0.6%-0.1%-1.9%
Q3 2021+1.8%-0.6%+8.2%
Q2 2021+4.9%+5.8%-3.7%
Q1 2021+2.2%+1.5%-2.6%
Q4 2020-5.0%-2.6%+13.8%
Q3 2020-5.5%+1.3%+35.1%
Q2 2020-5.4%-4.1%+3.8%
Q1 2020-0.6%-0.8%+17.2%
Q4 2019+2.5%+3.2%-19.7%
Q3 2019+1.0%+4.2%+3.1%
Q2 2019+9.1%+6.9%+4.6%
Q1 2019+5.4%+8.4%-5.6%
Q4 2018+5.8%+8.6%+5.0%
Q3 2018+6.4%+7.5%+8.8%
Q2 2018+15.8%+17.3%+19.5%
Q1 2018+4.2%+3.4%+9.5%
Q4 2017+3.3%+0.8%+2.7%
Q3 2017+4.1%+1.9%+12.5%
Q2 2017-5.4%-2.5%+0.2%
Q1 2017-2.1%-1.9%+4.4%
Q4 2016+0.7%+0.0%-5.6%
Q3 2016-3.2%-2.6%+16.6%
Q2 2016-3.1%+1.7%+0.0%
Q1 2016-3.4%
Q4 2015+11.7%
Q3 2015+19.1%
Q2 2015-5.0%
Q1 2015-1.4%
Q4 2014-1.3%
Q3 2014-0.8%
Q2 2014+3.5%
Q1 2014-0.9%
Q4 2013+1.5%
Q3 2013-3.0%
Q2 2013-0.7%
Q1 2013+0.3%
Q4 2012+3.8%
Q3 2012+4.4%
Q2 2012+10.8%
Q1 2012-12.5%
Q1 2009-3.1%
Q2 2009-3.1%
Q3 2009-3.1%
Q2 2011-3.1%
Q4 2009-3.1%
Q4 2011-3.1%
Q3 2010-1.0%
Q3 2011-1.0%
Q2 2010-8.6%
Q1 2010+7.3%
Q4 2010+7.3%
Q1 2011+7.3%

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