<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: SEPTEMBER 30, 2000
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number: 0-16214
ALBANY INTERNATIONAL CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 14-0462060
------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1373 BROADWAY, ALBANY, NEW YORK 12204
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 518-445-2200
------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports,) and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
The registrant had 24,851,127 shares of Class A Common Stock and 5,869,457
shares of Class B Common Stock outstanding as of September 30, 2000.
<PAGE>
ALBANY INTERNATIONAL CORP.
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Part I Financial information
Item 1. Financial Statements
Consolidated statements of income and retained earnings -
three and nine months ended September 30, 2000 and 1999 1
Consolidated balance sheets - September 30, 2000 and December 31, 1999 2
Consolidated statements of cash flows - nine months ended September 30, 2000 and 1999 3
Notes to consolidated financial statements 4-6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 7-9
Part II Other information
Item 6. Exhibits and Reports on Form 8-K 10
</TABLE>
<PAGE>
Item 1. Financial Statements
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(unaudited)
(in thousands except per share data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
------------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
$201,081 $196,566 Net sales $629,822 $553,960
121,661 118,197 Cost of goods sold 377,817 326,849
------------------- ----------------- ----------------- -----------------
79,420 78,369 Gross profit 252,005 227,111
55,932 54,474 Selling, technical and general expenses 172,675 161,030
------------------- ----------------- ----------------- -----------------
23,488 23,895 Operating income 79,330 66,081
10,645 6,488 Interest expense, net 31,374 15,227
(909) (555) Other (income) expense, net 923 (231)
------------------- ----------------- ----------------- -----------------
13,752 17,962 Income before income taxes 47,033 51,085
4,502 7,508 Income taxes 18,813 20,426
------------------- ----------------- ----------------- -----------------
9,250 10,454 Income before associated companies 28,220 30,659
93 213 Equity in earnings of associated companies 534 513
------------------- ----------------- ----------------- -----------------
9,343 10,667 Net income 28,754 31,172
295,965 276,091 Retained earnings, beginning of period 276,554 255,586
- - Less dividends - -
------------------- ----------------- ----------------- -----------------
$305,308 $286,758 Retained earnings, end of period $305,308 $286,758
=================== ================= ================= =================
$0.30 $0.35 Net income per share $0.94 $1.03
=================== ================= ================= =================
$0.30 $0.35 Diluted net income per share $0.94 $1.02
=================== ================= ================= =================
- - Cash dividends per common share - -
=================== ================= ================= =================
30,671 30,372 Weighted average number of shares 30,592 30,310
=================== ================= ================= =================
</TABLE>
The accompanying notes are an integral part of the financial statements.
1
<PAGE>
ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
(unaudited)
September 30, December 31,
2000 1999
-------------------- -----------------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $3,741 $7,025
Accounts receivable, net 219,196 235,303
Inventories:
Finished goods 130,343 131,749
Work in process 58,827 61,200
Raw material and supplies 44,094 42,733
-------------------- -----------------------
233,264 235,682
Deferred taxes and prepaid expenses 32,911 30,063
-------------------- -----------------------
Total current assets 489,112 508,073
Property, plant and equipment, net 385,867 435,172
Investments in associated companies 4,210 4,389
Intangibles 160,793 197,953
Deferred taxes 9,791 10,871
Other assets 47,577 50,384
-------------------- -----------------------
Total assets $1,097,350 $1,206,842
==================== =======================
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable $33,398 $36,839
Accounts payable 30,954 42,647
Accrued liabilities 87,651 86,008
Current maturities of long-term debt 4,816 6,174
Income taxes payable and deferred 5,924 5,296
-------------------- -----------------------
Total current liabilities 162,743 176,964
Long-term debt 474,820 521,257
Other noncurrent liabilities 125,573 124,847
Deferred taxes and other credits 31,464 58,367
-------------------- -----------------------
Total liabilities 794,600 881,435
-------------------- -----------------------
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share;
authorized 2,000,000 shares; none issued -- --
Class A Common Stock, par value $.001 per share;
authorized 100,000,000 shares; issued
27,052,359 in 2000 and 26,803,721 in 1999 27 27
Class B Common Stock, par value $.001 per share;
authorized 25,000,000 shares; issued and
outstanding 5,869,457 in 2000 and 1999 6 6
Additional paid in capital 222,947 219,443
Retained earnings 305,308 276,554
Accumulated items of other comprehensive income:
Translation adjustments (175,897) (120,877)
Pension liability adjustment (3,903) (3,903)
-------------------- -----------------------
348,488 371,250
Less treasury stock (Class A), at cost (2,201,232 shares
in 2000 and 2,205,992 shares in 1999) 45,738 45,843
-------------------- -----------------------
Total shareholders' equity 302,750 325,407
-------------------- -----------------------
Total liabilities and shareholders' equity $1,097,350 $1,206,842
==================== =======================
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
2000 1999
-------- --------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $28,754 $31,172
Adjustments to reconcile net cash provided by operating activities:
Equity in earnings of associated companies (534) (513)
Depreciation and amortization 47,777 38,662
Provision for deferred income taxes, other credits and long-term liabilities (1,088) 6,335
Increase in value of life insurance, net of premiums paid (420) (869)
Unrealized currency transaction gains (2,659) (3,206)
Loss on disposition of assets 1,868 31
Shares contributed to ESOP 3,611 3,489
Debt issuance costs -- (4,905)
Changes in operating assets and liabilities:
Accounts receivable 18,766 4,810
Inventories 2,418 6,573
Prepaid expenses (2,438) (3,121)
Accounts payable (11,694) (5,402)
Accrued liabilities (1,759) (1,203)
Income taxes payable 780 (4,792)
Other, net 1,723 (303)
-------- --------
Net cash provided by operating activities 85,105 66,758
-------- --------
INVESTING ACTIVITIES
Purchases of property, plant and equipment (26,943) (23,255)
Purchased software (925) (1,369)
Proceeds from sale of assets 8,348 60
Acquisitions, net of cash acquired (1,037) (241,591)
Loan to other company -- (3,000)
Premiums paid for life insurance policies (1,161) (1,187)
Distributions from associated companies -- 75
-------- --------
Net cash used in investing activities (21,718) (270,267)
-------- --------
FINANCING ACTIVITIES
Proceeds from borrowings 19,118 573,306
Principal payments on debt (69,026) (336,828)
Proceeds from options exercised -- 165
-------- --------
Net cash used in financing activities (49,908) 236,643
-------- --------
Effect of exchange rate changes on cash flows (16,763) (14,019)
-------- --------
(Decrease)/increase in cash and cash equivalents (3,284) 19,115
Cash and cash equivalents at beginning of year 7,025 5,868
-------- --------
Cash and cash equivalents at end of period $3,741 $24,983
======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
ALBANY INTERNATIONAL CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. MANAGEMENT OPINION
In the opinion of management the accompanying unaudited consolidated
financial statements contain all adjustments, consisting of only normal,
recurring adjustments, necessary for a fair presentation of results for such
periods. The results for any interim period are not necessarily indicative of
results for the full year. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been omitted. These consolidated financial statements
should be read in conjunction with financial statements and notes thereto for
the year ended December 31, 1999.
2. ACCOUNTING POLICIES
Gains or losses on forward exchange contracts that function as an
economic hedge against currency fluctuation effects on future revenue streams
are recorded in "Other (income) expense, net".
Gains or losses on forward exchange contracts that are designated a
hedge of a foreign operation's net assets and/or long-term intercompany loans
are recorded in "Translation adjustments", a separate component of shareholders'
equity. These contracts reduce the risk of currency exposure on foreign currency
net assets and do not exceed the foreign currency amount being hedged. To the
extent the above criteria are not met, or the related assets are sold,
extinguished, or terminated, activity associated with such hedges is recorded in
"Other (income) expense, net".
All open positions on forward exchange contracts are valued at fair
value using the estimated forward rate of a matching contract.
Gains or losses on futures contracts have been recorded in "Other
(income) expense, net". Open positions have been valued at fair value using
quoted market rates.
Gains or losses on interest rate swap agreements, that are entered into
to hedge part of the Company's interest rate exposure, are recorded in "Interest
expense, net". Unrealized gains or losses related to changes in the fair value
of the contracts are not recognized.
In June 1998, Financial Accounting Standard No. 133, "Accounting
for Derivative Instruments and Hedging Activities", was issued and amended in
June 2000 by Financial Accounting Standard No. 138, "Accounting for Certain
Derivative Instruments and Certain Hedging Activities". These Standards
establish a new model for accounting for derivatives and hedging activities. All
derivatives will be required to be recognized as either assets or liabilities
and measured at fair value. Each hedging relationship must be designated and
accounted for pursuant to this Standard. Since the Company already records
forward exchange and futures contracts at fair value, this Standard is not
expected to have a material effect on the accounting for these transactions.
Interest rate swaps that qualify as cash flow hedges will be measured at fair
value with the initial asset or liability recognized in "Other comprehensive
income". Subsequently, amounts will be reclassified to "Interest expense, net"
in accordance with this Standard. The Company plans to adopt this Standard on
its effective date of January 1, 2001.
In December 1999, The Securities Exchange Commission (SEC) issued
Staff Accounting Bulletin No. 101 (SAB 101), "Revenue Recognition in Financial
Statements". SAB 101 summarizes certain of the SEC's views in applying
generally accepted accounting principles to revenue recognition in financial
statements. The Company is required to adopt SAB 101 in the fourth quarter of
2000. Management does not expect the adoption of SAB 101 to have a material
effect on the Company's financial condition or results of operations.
In March 2000, the Financial Accounting Standards Board issued
Interpretation No. 44 (FIN 44), "Accounting for Certain Transactions
Involving Stock Compensation--an Interpretation of APB Opinion No. 25". FIN
44 clarifies the application of APB Opinion No. 25 and, among other issues,
clarifies the following: the definition of an employee for purposes of
applying APB Opinion No. 25; the criteria for determining whether a plan
qualifies as a non compensatory plan; the accounting consequences of various
modifications to the terms of previously fixed stock options or awards; and
the accounting for an exchange of stock compensation awards in a business
combination. FIN 44 is effective July 1, 2000, but certain conclusions in FIN
44 cover specific events that occurred after either December 15, 1998 or
January 12, 2000. The Company's method of accounting for stock compensation
is in accordance with FIN 44.
3. OTHER (INCOME) EXPENSE, NET
Included in other (income) expense, net for the nine months ended
September 30 are: currency transactions, $2.9 million income in 2000 and $3.2
million income in 1999; amortization of debt issuance costs
4
<PAGE>
and loan origination fees, $1.8 million in 2000 and $0.9 million in 1999 and
other miscellaneous expenses, none of which are significant in 2000 and 1999.
Included in other (income) expense, net for the three months ended
September 30 are: currency transactions, $2.8 million income in 2000 and $1.3
million income in 1999; amortization of debt issuance costs and loan origination
fees, $0.7 million in 2000 and $0.4 million in 1999 and other miscellaneous
expenses, none of which are significant, in 2000 and 1999.
4. EARNINGS PER SHARE
Net income per share is computed using the weighted average number of
shares of Class A and Class B Common Stock outstanding during the period.
Diluted net income per share includes the effect of all potentially dilutive
securities.
The amounts used in computing earnings per share, including the effect
on income and the weighted average number of shares of potentially dilutive
securities, are as follows:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Nine Months Ended Three Months Ended
September 30, September 30,
(in thousands) 2000 1999 2000 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME AVAILABLE TO COMMON STOCKHOLDERS:
Income available to common stockholders $28,754 $31,172 $ 9,343 $10,667
------- ------- ------- -------
WEIGHTED AVERAGE NUMBER OF SHARES:
Weighted average number of shares used in
net income per share 30,592 30,310 30,671 30,372
Effect of dilutive securities:
Stock options -- 202 -- 75
------- ------- ------- -------
Weighted average number of shares used in
diluted net income per share 30,592 30,512 30,671 30,447
------- ------- ------- -------
</TABLE>
For all periods ended September 30, 2000, all options were excluded from the
computation of diluted net income per share because the options' exercise price
was greater than the average market price of the common shares for the period.
5. COMPREHENSIVE INCOME/(LOSS)
Total comprehensive income/(loss) consists of:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Nine Months Ended Three Months Ended
September 30, September 30,
(in thousands) 2000 1999 2000 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net income $ 28,754 $ 31,172 $ 9,343 $ 10,667
Other comprehensive loss, before tax:
Foreign currency translation adjustments (55,268) (20,699) (11,277) (3,296)
Income tax related to items of other
comprehensive loss 248 -- -- --
-------- -------- -------- --------
Total comprehensive (loss)/income $(25,266) ($10,473) $ (1,624) $ 13,963
-------- -------- -------- --------
</TABLE>
5
<PAGE>
6. OPERATING SEGMENT DATA
The following table shows data by operating segment, reconciled to
consolidated totals included in the financial statements:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
Nine Months Ended Three Months Ended
September 30, September 30,
(in thousands) 2000 1999 2000 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES
Engineered Fabrics $ 525,472 $ 450,217 $ 166,673 $ 160,125
High Performance Doors 71,624 72,280 24,834 25,506
All other 32,726 31,463 9,574 10,935
--------- --------- --------- ---------
Consolidated Total $ 629,822 $ 553,960 $ 201,081 $ 196,566
--------- --------- --------- ---------
OPERATING INCOME
Engineered Fabrics $ 115,840 $ 101,011 $ 37,996 $ 37,336
High Performance Doors 4,068 3,446 972 814
All other 6,588 4,000 1,754 808
Research expense (16,995) (16,710) (6,142) (5,534)
Unallocated expenses (30,171) (25,666) (11,092) (9,529)
--------- --------- --------- ---------
Operating income before reconciling items 79,330 66,081 23,488 23,895
Reconciling items:
Interest expense, net (31,374) (15,227) (10,645) (6,488)
Other (expense) income, net (923) 231 909 555
--------- --------- --------- ---------
Consolidated income before income taxes $ 47,033 $ 51,085 $ 13,752 $ 17,962
--------- --------- --------- ---------
</TABLE>
7. INCOME TAXES
The tax rate for the first nine months of 2000 and 1999 was 40%. During
the third quarter of 2000, the Company's estimated tax rate was reduced from 43%
to 40%, as actual tax costs associated with the acquisition and integration
of 1999 acquisitions were lower than originally estimated. The effect of the
rate change for the first nine months was fully recognized in the third
quarter.
8. SUPPLEMENTARY CASH FLOW INFORMATION
Interest paid for the nine months ended September 30, 2000 and 1999 was
$29.4 million and $15.3 million, respectively.
Taxes paid for the nine months ended September 30, 2000 and 1999 was
$18.8 million and $20.7 million, respectively.
9. ACQUISITIONS
In September 2000, the Company acquired all of the shares of Portsam
AB, a Swedish company that provides services for high performance doors. The
purchase price was approximately $1.1 million and was accounted for as a
purchase. Accordingly, the results of operations are included in the financial
statements as of the acquisition date.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
The following discussion should be read in conjunction with the accompanying
Consolidated Financial Statements and Notes thereto.
RESULTS OF OPERATIONS:
Net sales increased to $201.1 million for the three months ended September 30,
2000 as compared to $196.6 million for the same period in 1999. The effect of
the stronger U.S. dollar as compared to the third quarter of 1999 was to
decrease net sales by $8.7 million. Acquisitions made in 1999 added $19.1
million to third quarter 2000 net sales. Excluding these two factors, 2000 net
sales were 3.0% lower than the third quarter of 1999.
Net sales increased to $629.8 million for the nine months ended September 30,
2000 as compared to $554.0 million for the same period in 1999. The effect of
the stronger U.S. dollar as compared to the first half of 1999 was to decrease
net sales by $19.0 million. Acquisitions made in 1999 added $87.4 million to
2000 net sales. Excluding these two factors, 2000 net sales were up 1.3% as
compared to 1999.
Geographically, year to date net sales, excluding the effect of acquisitions,
were down 3.0% in the United States, as compared to 1999. Net sales in
Canada, Korea and China increased in local currencies and U.S. dollars.
European sales for 2000 increased in local currencies, but decreased in U.S.
dollars.
Gross profit was 39.5% of net sales for the three months ended September 30,
2000 as compared to 39.9% for the same period in 1999 bringing the nine month
result to 40.0% for 2000 as compared to 41.0% for 1999. Excluding the effect of
the stronger U.S. dollar and acquisitions, gross profit was 40.0% of net sales
in the third quarter and 41.2% in the first nine months of 2000. Year to date
variable costs as a percent of net sales were 35.2% in 2000 and 1999. Excluding
the effect of the stronger U.S. dollar and acquisitions, variable costs as a
percent of net sales were 34.1% in 2000.
Selling, technical, general and research expenses, excluding the effect of the
stronger U.S. dollar and acquisitions, were down 0.1% for the nine months ended
September 30, 2000 as compared to the same period in 1999.
Operating income as a percentage of net sales was 12.6% for the nine months
ended September 30, 2000 compared to 11.9% for the comparable period in 1999.
The stronger U.S. dollar and acquisitions had no net effect on the operating
income percentage for the nine months ended September 30, 2000.
Previously announced cost reduction and equipment relocation initiatives are
proceeding on schedule. These cost reduction initiatives have resulted in
incremental year to date savings of $17.7 million, in addition to $13.0 of
savings realized in 1999. For the full year 2000, these initiatives will
result in incremental cost savings of $25.0 million as compared to 1999. As
compared to the cost structure in place at the beginning of the program
in January 1999, the cumulative effect of the cost reduction program
will be $50.0 million, of which $12.0 million will be reflected in 2001, in
comparison to this year. The Company has completed the closing of five
manufacturing plants and has nearly completed the closing of a sixth facility.
The Company is on schedule to complete the reduction of the worldwide workforce
by about 9 percent in comparison to the beginning of 1999. Expenditures for
7
<PAGE>
equipment relocations and asset write-offs were approximately $5.5 million in
the first nine months of 2000 and are expected to be approximately $9 million
for the full year.
Interest expense for the nine months ended September 30, 2000 increased $16.1
million as compared to the same period in 1999. This increase was due to higher
debt and interest rates during the period due principally to acquisitions made
in 1999.
The tax rate for the first nine months of 2000 and 1999 was 40%. During the
third quarter of 2000, the Company's estimated tax rate was reduced from 43% to
40%, as actual tax costs associated with the acquisition and integration of
1999 acquisitions were lower than originally estimated. The effect of the tax
rate change for the first nine months was fully recognized in the third quarter.
Reasons for the changes in operating results for the three month period ended
September 30, 2000 as compared to the corresponding period in 1999 are similar
to those which affected the nine month comparisons, except where specifically
noted.
In September 2000, the Company acquired all of the shares of Portsam AB, a
Swedish company that provides services for high performance doors. The
purchase price was approximately $1.1 million and was accounted for as a
purchase. Accordingly, the results of operations are included in the
financial statements as of the acquisition date.
In June 1998, Financial Accounting Standard No. 133, "Accounting for Derivative
Instruments and Hedging Activities", was issued and amended in June 2000 by
Financial Accounting Standard No. 138, "Accounting for Certain Derivative
Instruments and Certain Hedging Activities". These Standards establish a new
model for accounting for derivatives and hedging activities. All derivatives
will be required to be recognized as either assets or liabilities and measured
at fair value. Each hedging relationship must be designated and accounted for
pursuant to this Standard. Since the Company already records forward exchange
and futures contracts at fair value, this Standard is not expected to have a
material effect on the accounting for these transactions. Interest rate swaps
that qualify as cash flow hedges will be measured at fair value with the
initial asset or liability recognized in "Other comprehensive income".
Subsequently, amounts will be reclassified to "Interest expense, net" in
accordance with this Standard. The Company plans to adopt this Standard on its
effective date of January 1, 2001.
In December 1999, The Securities Exchange Commission (SEC) issued
Staff Accounting Bulletin No. 101 (SAB 101), "Revenue Recognition in Financial
Statements". SAB 101 summarizes certain of the SEC's views in applying
generally accepted accounting principles to revenue recognition in financial
statements. The Company is required to adopt SAB 101 in the fourth quarter of
2000. Management does not expect the adoption of SAB 101 to have a material
effect on the Company's financial condition or results of operations.
In March 2000, the Financial Accounting Standards Board issued
Interpretation No. 44 (FIN 44), "Accounting for Certain Transactions
Involving Stock Compensation--an Interpretation of APB Opinion No. 25". FIN
44 clarifies the application of APB Opinion No. 25 and, among other issues,
clarifies the following: the definition of an employee for purposes of
applying APB Opinion No. 25; the criteria for determining whether a plan
qualifies as a non compensatory plan; the accounting consequences of various
modifications to the terms of previously fixed stock options or awards; and
the accounting for an exchange of stock compensation awards in a business
combination. FIN 44 is effective July 1, 2000, but certain conclusions in FIN
44 cover specific events that occurred after either December 15, 1998 or
January 12, 2000. The Company's method of accounting for stock compensation
is in accordance with FIN 44.
LIQUIDITY AND CAPITAL RESOURCES:
Accounts receivable decreased $16.1 million since December 31, 1999. Excluding
the effect of the stronger U.S. dollar, accounts receivable decreased $3.5
million. Inventories decreased $2.4 million during the nine months ended
September 30, 2000. Excluding the effect of the stronger U.S. dollar,
inventories increased $7.0 million.
During the first nine months of 2000, total debt decreased $51.2 million. The
Company's current debt structure, which is mostly floating-rate, currently
provides approximately $280 million in committed and available unused debt
capacity with financial institutions. Management believes that this debt
capacity, in combination with informal commitments and expected free cash flows,
should be sufficient to meet anticipated operating requirements and normal
business opportunities which support corporate strategies.
Capital expenditures for the nine months ended September 30, 2000, including the
value of capital leases, were $26.9 million as compared to $23.3 million for the
same period last year. The Company anticipates that capital expenditures,
including leases, are expected to be about $40 million and will continue to
finance these expenditures with cash from operations and existing credit
facilities.
8
<PAGE>
FORWARD-LOOKING STATEMENTS
This Form 10-Q contains "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. These statements include statements
about such matters as annual cost savings, workforce reductions, debt capacity,
capital expenditures, taxes, and the effect of accounting changes. Actual future
events and circumstances (including future performance, results and trends)
could differ materially from those set forth in such statements due to various
factors. These factors include more competitive marketing conditions,
unanticipated events or circumstances related to recently acquired businesses,
the occurrence of unanticipated events or difficulties relating to divestiture,
joint venture, operating, capital, global integration and other projects,
changes in currency exchange rates, changes in general economic and competitive
conditions, technological developments, and other risks and uncertainties,
including those detailed in the Company's other filings with the Securities and
Exchange Commission.
9
<PAGE>
Part II - Other Information
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the quarter ended September 30, 2000.
EXHIBIT NO. DESCRIPTION
----------- -----------
11. Schedule of computation of net income per share
and diluted net income per share
27. Financial data schedule
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ALBANY INTERNATIONAL CORP.
--------------------------
(Registrant)
Date: September 13, 2000
by /s/ Michael C. Nahl
-------------------
Michael C. Nahl
Sr. Vice President and
Chief Financial Officer
