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Dec 31, 2020
Albany Q4 2020 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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