Sales at Albany soar 16.1% in Q3 FY17

"Cash flow in the third quarter improved compared to the first half of the year. The improvement was primarily the result of strong operating performance and lower capital expenditures. Cash balances increased about $15 million to a total of $153 million, while total debt increased about $10-$506 million in the end of the quarter. The combined effect of those two changes resulted in $5 million decrease to net debt to a balance of $352 million in the end of the quarter," CFO and treasurer John Cozzolino said.

For the reported period, the company's adjusted EBITDA (a non-GAAP measure) was $51.9 million, compared to $42.7 million in the third quarter of 2016. Q3 2017 adjusted EBITDA includes a $2.0 million insurance recovery gain related to the theft in Japan that was reported in the fourth quarter of 2016.

"The company’s income tax rate based on income from continuing operations was about 36 per cent in Q3 2017, compared to 35 per cent for the full-year 2016. The company expects the full-year rate for 2017 to stay at approximately 36 per cent. Cash paid for income taxes was about $3 million in the third quarter, bringing the year-to-date total to $22 million. For the full year, we estimate cash taxes to range from $25-$28 million," added Cozzolino.

"Q3 2017 was an especially strong quarter for Albany International. Aggregate sales, net income and adjusted EBITDA grew sharply; MC’s performance was outstanding; and AEC continued its rapid growth, took another incremental step forward in profitability, and made good progress on its multiple ramp-ups and new business development. Both businesses are now on pace to outperform our previously upgraded full-year targets," Joseph Morone, chief executive officer said.

"Because of end-of-year seasonal effects and the regression we typically experience after especially strong quarters, the fourth quarter is likely to be the weakest quarter of the year. But on a year-over-year basis, because of good backlogs and healthy economic conditions, we expect Q4 2017 to be comparable to Q4 2016. Given the strong year-to-date performance in MC, this means that we now expect full-year Adjusted EBITDA to be at least at the high-end of our normal $180-$195 million range," added Morone.

"In sum, this was an outstanding quarter for Albany, with good performance in both businesses, and a stronger full-year outlook for each business than the already strong, upgraded estimates we provided on our last earnings call," concluded Morone. (RR)

Fibre2Fashion News Desk – India