Albany International has recorded net sales of $256.2 million in the second quarter of fiscal 2018, an increase of 18.9 per cent compared to the same period in the previous year. Excluding the impact of the adoption of the new revenue recognition standard (ASC 606) and currency translation effects, the company's net sales increased 17.0 per cent.

The net income attributable to the company was increased by $1.4 million as a result of adopting ASC 606. In the second quarter of fiscal 2017, net income attributable to the company was $1.1 million, including a net charge of $0.8 million from income tax adjustments.

For the reported period, income before income taxes totaled at $37.3 million, including $2.6 million of restructuring charges and $2.4 million of gains from foreign currency revaluation. In fiscal 2017, income before income taxes was $3.0 million, including restructuring charges of $2.0 million and losses of $3.5 million from foreign currency revaluation. In Q2 2017, income before income taxes also included a $15.8 million charge to cost of goods sold related to revisions in the estimated profitability of two contracts in the Albany Engineered Composites segment.

“Second-quarter cash flow was slightly negative as cash generated by the Company’s strong operating results was utilized to fund the continued growth in AEC. Overall, total debt increased about $4 million to $525 million as of the end of the quarter and cash balances increased $3 million to $155 million. The combined effect of those two changes resulted in a $1 million increase in net debt (total debt less cash, see Table 22) to a balance of $370 million as of the end of the quarter. The Company’s leverage ratio, as defined in our revolving credit facility, was 2.23 at the end of Q2, as compared to 2.55 at the end of Q1, well below our current limit of 3.75," CFO and treasurer John Cozzolino said.

“We expect AEC to continue to perform well over the second half of the year. For the full year 2018, we expect the increase in Net sales to end up closer to the upper end of the 20% to 30% range we discussed last quarter and while profitability could fluctuate somewhat over the second half, full-year Adjusted EBITDA as a percentage of net sales should show strong incremental improvement compared to 2017. Beyond 2018, we remain on track toward our goal of 18% to 20% Adjusted EBITDA as a percentage of sales in 2020," CEO Olivier Jarrault said.

“So in summary, this was a very good quarter for the Company, with outstanding financial performance in MC and solid sales growth with good profitability in AEC. With the strong year-to-date results and our expectation of good performance over the second half of the year, our financial outlook for both businesses for the full year 2018 is for improvement compared to 2017, at levels in line with or better than previously discussed expectations," concluded Jarrault. (RR)