Albany International Corp. (NYSE:AIN) Q4 2019 Earnings Conference Call - Final Transcript

Feb 11, 2020 • 09:00 am ET

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Albany International Corp. (NYSE:AIN) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Albany International Fourth Quarter 2019 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to our host, John Hobbs, Director of Investor Relations. Please go ahead.

Executive
John Hobbs

Thank you, Grace and good morning, everyone. As a reminder for those listening on the call, please refer to our detailed press release issued last night regarding our quarterly financial results with particular reference to the notice contained in the text of the release about our forward-looking statements and the use of certain non-GAAP financial measures and associated reconciliation to GAAP. For purposes of this conference call, those same statements also apply to our verbal remarks this morning.

For a full discussion, including a reconciliation of non-GAAP measures we may use on this call to their most comparable GAAP measures, please refer to both that earnings release as well as our SEC filings, including our 10-K.

Now I turn the call over to Bill Higgins, Chief Executive Officer, who will provide opening remarks. Bill?

Executive
A. William Higgins

Thank you, John. Good morning. Welcome everyone, and thank you for joining our fourth quarter earnings call. I'm happy to be here on my first earnings call as CEO of Albany. As I'm sure you saw in last night's press release, we delivered another strong quarter, capping a great year. While I'll let Stephen go through the details, let me point out a few highlights from the quarter and then give my perspective on our strategy and my priorities.

The Company delivered strong results in the fourth quarter and met or exceeded all the revenue and profitability guidance we had issued on our third quarter earnings announcement. I'm particularly pleased with the adjusted EBITDA margins in both segments. In the fourth quarter, we delivered margins of 35.1% in Machine Clothing and 22.6% in Engineered Composites. I'm also proud of the Company's cash performance this year. The Company generated over $130 million in free cash flow. And for the first time since beginning on our growth trajectory several years ago, the Engineered Composites segment delivered positive free cash flow for the year.

I'd like to thank our employees across the globe for their contribution to the growth and success of the Company. And while on the Board, I've had the opportunity to visit our operations around the world, and I've been impressed with the talent and dedication I've seen. I'd also like to thank my predecessor, Olivier Jarrault, for his pursuit of operational excellence and contributions. As you may know, I've been on the Albany Board since 2016 and was appointed Chairman last year. I appreciate the trust the Board has now placed in me, and I'm honored to be responsible for the success of this great Company. In parallel with my transition and to ensure continuity and consistency at the Board level, my predecessor, Erkie Kailbourne, is stepping back into the role of Chairman.

I've known Albany for a long time. In fact, when I completed