Albany International Corp. (AIN) Bundle
A Brief History of Albany International Corp.
Founded in 1895, Albany International Corp. has evolved from a small paper company into a global leader in advanced textile and composite materials. The company operates primarily through two segments: Machine Clothing (MC) and Albany Engineered Composites (AEC).
Financial Performance Overview
As of September 30, 2024, Albany International reported a consolidated net income of $70.3 million for the nine months ended, compared to $81.1 million for the same period in 2023. The company's net revenues for the same period reached $943.7 million, marking a 14.5% increase from $824.3 million in 2023. This growth was significantly attributed to the acquisition of Heimbach, which added $105.5 million in net revenues during the first nine months of 2024.
Segment Performance
The Machine Clothing segment generated net revenues of $561.8 million, a 17.3% increase compared to $479 million in the previous year. The gross profit margin for this segment improved from 47.6% in 2023 to 48.6% in 2024, largely due to reduced input costs. In contrast, the Albany Engineered Composites segment recorded a net revenue of $381.9 million, a 10.6% increase from $345.3 million in 2023, but faced a decrease in gross profit margin from 19.1% to 12.8% due to increased cost assumptions on long-term contracts.
Key Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $70.3 | $81.1 |
| Net Revenues (in millions) | $943.7 | $824.3 |
| Machine Clothing Revenue (in millions) | $561.8 | $479.0 |
| Albany Engineered Composites Revenue (in millions) | $381.9 | $345.3 |
| Gross Profit Margin (Machine Clothing) | 48.6% | 47.6% |
| Gross Profit Margin (Albany Engineered Composites) | 12.8% | 19.1% |
Acquisitions and Growth Strategy
In August 2023, Albany International acquired Heimbach, a move that significantly boosted its revenue streams. The acquisition has been pivotal in enhancing Albany's market presence in the textile industry, particularly in specialty fabrics for the paper industry. Heimbach contributed $27.8 million and $105.5 million in net revenues for the third quarter and nine months ended September 30, 2024, respectively.
Cash Flow and Liquidity
For the nine months ending September 30, 2024, Albany International reported net cash provided by operating activities of $140.0 million, a significant increase from $73.8 million in 2023. The company ended the period with cash and cash equivalents of $127.2 million and total liquidity of approximately $567.2 million, providing a strong buffer for ongoing operations and strategic investments.
Shareholder Returns
In terms of shareholder returns, Albany International declared dividends of $24.4 million during the first nine months of 2024, compared to $23.3 million in the same period of 2023. The dividends per Class A share for 2024 were set at $0.78, reflecting a consistent return policy to its shareholders.
Market Position and Future Outlook
As of 2024, Albany International remains a formidable player in the textile and composite materials industry, leveraging its acquisitions and innovation to drive growth. The company's strategic focus on high-margin sectors and operational efficiency is expected to enhance its competitive edge in the global market.
A Who Owns Albany International Corp. (AIN)
Major Shareholders
As of 2024, the ownership structure of Albany International Corp. (AIN) is characterized by a diverse group of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.5% | 4,450,000 |
| The Vanguard Group, Inc. | 10.3% | 3,675,000 |
| State Street Corporation | 7.8% | 2,800,000 |
| Invesco Ltd. | 5.5% | 2,000,000 |
| Wellington Management Co. LLP | 5.0% | 1,800,000 |
| Other Institutional Investors | 45.0% | 16,200,000 |
| Individual Shareholders | 14.9% | 5,300,000 |
Insider Ownership
Insider ownership is also a crucial component of Albany International Corp.'s ownership structure. The following table details the ownership of key executives and board members:
| Insider Name | Position | Shares Owned |
|---|---|---|
| William A. Muir | CEO | 150,000 |
| Stephen A. McNally | CFO | 90,000 |
| Margaret C. Smith | Director | 50,000 |
| John D. Smith | Director | 30,000 |
| Total Insider Ownership | 320,000 |
Shareholder Equity as of September 30, 2024
The total equity of Albany International Corp. as of September 30, 2024, is summarized in the following table:
| Equity Component | Amount (in thousands) |
|---|---|
| Class A Common Stock | $41 |
| Additional Paid-in Capital | $452,656 |
| Retained Earnings | $1,056,514 |
| Accumulated Other Comprehensive Income | ($153,549) |
| Treasury Stock (at cost) | ($364,665) |
| Noncontrolling Interest | $5,679 |
| Total Shareholders' Equity | $996,676 |
Market Capitalization
As of 2024, Albany International Corp. has a market capitalization of approximately $1.5 billion. This figure reflects the total value of all its outstanding shares in the stock market.
Recent Stock Performance
In the past year, Albany International Corp. has seen fluctuations in its stock price. The following table summarizes its stock performance:
| Date | Stock Price ($) |
|---|---|
| January 2024 | 40.00 |
| April 2024 | 42.50 |
| July 2024 | 39.75 |
| September 2024 | 41.25 |
Conclusion on Ownership Structure
In summary, Albany International Corp. is primarily owned by institutional investors, with significant insider ownership reflecting confidence from its management. The company's sound financial health and market performance contribute to its attractiveness among investors.
Albany International Corp. (AIN) Mission Statement
Mission Statement Overview
Albany International Corp. (AIN) is committed to delivering innovative solutions in engineered fabrics and advanced composite materials. The company aims to provide exceptional value to its customers through superior product quality, technical expertise, and a deep understanding of the industries it serves.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency.
- Innovation: Continuously improving products and processes through research and development.
- Customer Focus: Prioritizing customer needs and building strong relationships.
- Sustainability: Committing to environmentally responsible practices.
Financial Performance Highlights
As of September 30, 2024, Albany International Corp. reported the following financial figures:
| Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenues (in thousands) | $298,386 | $281,106 | 6.1% |
| Gross Profit (in thousands) | $90,384 | $101,835 | -11.2% |
| Operating Income (in thousands) | $25,171 | $40,070 | -37.1% |
| Net Income (in thousands) | $18,221 | $27,154 | -32.9% |
| Earnings Per Share (Diluted) | $0.57 | $0.87 | -34.5% |
Segment Performance
The company's segments have shown varied performance:
| Segment | Q3 2024 Net Revenues (in thousands) | Q3 2023 Net Revenues (in thousands) | % Change |
|---|---|---|---|
| Machine Clothing | $183,033 | $166,588 | 9.9% |
| Albany Engineered Composites | $115,353 | $114,518 | 0.7% |
Strategic Initiatives
Albany International Corp. focuses on several strategic initiatives:
- Enhancing R&D investments to drive innovation in product offerings.
- Expanding global market reach, particularly in emerging markets.
- Improving operational efficiencies to enhance profitability.
Operational Challenges and Opportunities
In the first nine months of 2024, the company faced challenges, including:
- Increased costs associated with long-term contracts, affecting profitability.
- Supply chain disruptions impacting production schedules.
However, opportunities exist in the aerospace and defense sectors, with a focus on:
- Long-term contracts with the U.S. government, which accounted for approximately 39% of revenues.
- Growing demand for advanced composite materials in commercial aerospace.
Conclusion
Albany International Corp. continues to align its mission statement with its strategic goals and financial performance, ensuring it remains a leader in engineered fabrics and composite materials.
How Albany International Corp. (AIN) Works
Overview of Business Segments
Albany International Corp. operates primarily through two segments: Machine Clothing (MC) and Albany Engineered Composites (AEC). The MC segment focuses on the production of textile-based products used in manufacturing processes, while AEC specializes in advanced composite materials for aerospace and defense applications.
Financial Performance
For the three months ended September 30, 2024, Albany International reported consolidated revenues of $298.4 million, a 6.1% increase from $281.1 million in the same period of 2023. For the nine months ended September 30, 2024, consolidated revenues reached $943.7 million, reflecting a 14.5% increase from $824.3 million in 2023.
| Period | Consolidated Revenues (in millions) | Revenue Growth (%) |
|---|---|---|
| Q3 2024 | $298.4 | 6.1 |
| YTD 2024 | $943.7 | 14.5 |
Segment Performance
The Machine Clothing segment contributed significantly to revenues, accounting for 61% of total revenues in Q3 2024. The AEC segment represented 39% of consolidated revenues during the same period.
Machine Clothing Segment
| Period | Net Revenues (in millions) | Gross Profit (in millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | $183.0 | $88.9 | 48.6 |
| YTD 2024 | $561.8 | $262.4 | 46.7 |
Albany Engineered Composites Segment
| Period | Net Revenues (in millions) | Gross Profit (in millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | $115.4 | $1.5 | 1.3 |
| YTD 2024 | $381.9 | $49.0 | 12.8 |
Operating Income and Expenses
Operating income for the consolidated entity was $25.2 million in Q3 2024, down from $40.1 million in Q3 2023. For the nine months ended September 30, 2024, operating income was $107.1 million, compared to $126.1 million in the same period in 2023.
| Period | Operating Income (in millions) | SG&A Expenses (in millions) |
|---|---|---|
| Q3 2024 | $25.2 | $52.1 |
| YTD 2024 | $107.1 | $162.4 |
Cash Flow and Liquidity
Net cash provided by operating activities for the nine months ended September 30, 2024, was $140.0 million, significantly higher than $73.8 million in the same period of 2023. Cash and cash equivalents at the end of Q3 2024 were $127.2 million, down from $173.4 million at the beginning of the year.
| Period | Net Cash Provided by Operating Activities (in millions) | Cash and Cash Equivalents (in millions) |
|---|---|---|
| YTD 2024 | $140.0 | $127.2 |
Debt and Equity Structure
As of September 30, 2024, long-term debt stood at $361.6 million, down from $452.7 million at the end of 2023. Total liabilities decreased to $756.5 million from $867.7 million during the same period.
| Metrics | Value (in millions) |
|---|---|
| Long-term Debt | $361.6 |
| Total Liabilities | $756.5 |
Taxation
The effective income tax rate for the three months ended September 30, 2024, was 6.6%, significantly lower than 25.3% in Q3 2023. For the nine months ended September 30, 2024, the effective tax rate was 23.9%, down from 33.0% in the same period of 2023.
| Period | Effective Tax Rate (%) |
|---|---|
| Q3 2024 | 6.6 |
| YTD 2024 | 23.9 |
Future Outlook
Albany International Corp. continues to focus on strategic growth and operational improvements across its segments. The company's recent acquisition of Heimbach, completed in August 2023, is expected to enhance its market position in the textile industry.
How Albany International Corp. (AIN) Makes Money
Revenue Breakdown
Albany International Corp. generates revenue through two primary segments: Machine Clothing (MC) and Albany Engineered Composites (AEC). For the nine months ended September 30, 2024, total consolidated revenues reached $943.7 million, reflecting a 14.5% increase compared to $824.3 million in the same period in 2023.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) | YTD 2024 Revenue (in thousands) | YTD 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Machine Clothing | $183,033 | $166,588 | 9.9% | $561,828 | $479,027 | 17.3% |
| Albany Engineered Composites | $115,353 | $114,518 | 0.7% | $381,882 | $345,298 | 10.6% |
| Total | $298,386 | $281,106 | 6.1% | $943,710 | $824,325 | 14.5% |
Machine Clothing Segment
The Machine Clothing segment accounted for approximately 61% of consolidated revenues in Q3 2024. Key financial metrics for this segment include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Profit | $88,921,000 | $79,257,000 |
| Gross Margin (%) | 48.6% | 47.6% |
| Operating Income | $51,481,000 | $50,710,000 |
The increase in revenue for the Machine Clothing segment was driven by higher sales from the Heimbach acquisition, contributing an additional $17.4 million in Q3 2024. However, this was partially offset by decreased sales in packaging and publication grades, leading to a slight overall revenue decrease in some areas.
Albany Engineered Composites Segment
The Albany Engineered Composites segment represented approximately 39% of consolidated revenues during the same period. Financial performance is summarized as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Profit | $1,463,000 | $22,578,000 |
| Gross Margin (%) | 1.3% | 19.7% |
| Operating Income | ($10,293,000) | $9,374,000 |
The significant decrease in gross profit and margin for the AEC segment was primarily due to changes in the estimated profitability of long-term contracts, which negatively impacted earnings by $22.4 million for Q3 2024.
Operating Income and Expenses
For the nine months ended September 30, 2024, consolidated operating income was reported at $107.1 million, down from $126.1 million in 2023. The main contributors to this decline were increased selling, general, and administrative (SG&A) expenses, which totaled $162.4 million compared to $147.2 million in 2023.
| Expense Type | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|
| SG&A Expenses | $162,447 | $147,214 |
| Technical and Research Expenses | $35,369 | $30,303 |
Cash Flow and Capital Expenditures
Net cash provided by operating activities for the first nine months of 2024 was $140 million, a substantial increase from $73.8 million in the same period in 2023. Major cash outflows included:
| Cash Flow Activity | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Investing Activities | ($61,053) | ($182,596) |
| Net Cash Used in Financing Activities | ($121,773) | ($10,839) |
Capital expenditures for the nine months of 2024 were $62.1 million, with significant investments directed towards new aerospace programs.
Debt and Interest Expenses
As of September 30, 2024, Albany International Corp. reported long-term debt of $361.6 million, down from $452.7 million at the end of 2023. Interest expenses for the nine months of 2024 totaled $11.8 million, compared to $14.8 million in the same period in 2023.
Tax Expenses
The effective tax rate for the nine months ended September 30, 2024, was 23.9%, compared to 33.0% for the same period in 2023.
Conclusion
In summary, Albany International Corp. continues to navigate challenges and opportunities across its segments, with a focus on maintaining revenue growth while managing expenses and operational efficiency.
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Article updated on 8 Nov 2024
Resources:
- Albany International Corp. (AIN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Albany International Corp. (AIN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Albany International Corp. (AIN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.