Albany International Corp (AIN) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to Albany International fourth-quarter 2023 earnings call. (Operator instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加奧爾巴尼國際 2023 年第四季財報電話會議。（操作員說明）請注意，今天的會議正在錄製中。

I would now like to turn the conference over to your speaker for today, John Hobbs, Director of Investor Relations. Please go ahead.

現在我想將會議交給今天的發言人，投資者關係總監約翰霍布斯 (John Hobbs)。請繼續。

Thank you, Lisa, and good morning, everyone. Welcome to Albany International's fourth-quarter earnings conference call. As a reminder for those listening on the call, please refer to our press release issued last night detailing our quarterly financial results.

謝謝你，麗莎，大家早安。歡迎參加奧爾巴尼國際第四季財報電話會議。提醒那些正在聽電話的人，請參閱我們昨晚發布的新聞稿，其中詳細介紹了我們的季度財務業績。

Contained in the text of the release is a notice regarding our forward-looking statements and the use of certain non-GAAP financial measures and their reconciliation to GAAP. For the purposes of the conference call, those same statements apply to our verbal remarks this morning.

新聞稿正文中包含有關我們的前瞻性陳述以及某些非公認會計準則財務指標的使用及其與公認會計準則的調節的通知。出於電話會議的目的，這些相同的聲明也適用於我們今天早上的口頭演講。

Today, we will make statements that are forward-looking and contain a number of risks and uncertainties, which could cause actual results to differ from those expressed or implied. For a full discussion of these risks and uncertainties, please refer to both our earnings release of February 26 as well as our SEC filings, including our 10-K.

今天，我們將做出前瞻性聲明，並包含許多風險和不確定性，這些風險和不確定性可能導致實際結果與明示或暗示的結果不同。有關這些風險和不確定性的完整討論，請參閱我們 2 月 26 日發布的收益報告以及我們向 SEC 提交的文件，包括我們的 10-K。

Now, I turn the call over to Gunnar Kleveland, President and Chief Executive Officer, who will provide opening remarks. Gunnar?

現在，我將電話轉給總裁兼執行長古納爾·克利夫蘭 (Gunnar Kleveland)，他將致開幕詞。貢納爾？

Thank you, John. Good morning, and welcome, everyone. Thank you for joining our fourth-quarter earnings call. Before we begin this call, I want to take a moment and acknowledge John Hobbs, who's been leading our Investor Relations functions for the past five years.

謝謝你，約翰。早上好，歡迎大家。感謝您參加我們的第四季財報電話會議。在我們開始這次電話會議之前，我想花一點時間向約翰·霍布斯表示感謝，他在過去五年中一直領導我們的投資者關係職能部門。

John has been instrumental in communicating our story to the investment community and has taken the IR function at Albany to the next level. After a long career with nearly three decades in Investor Relations, John is retiring, and he will transition his responsibilities to JC Chetnani. We wish John and his wife the best in his retirement, and we welcome JC to his new role.

約翰在向投資界傳達我們的故事方面發揮了重要作用，並將奧爾巴尼的投資者關係功能提升到了一個新的水平。在投資者關係領域從事了近三十年的漫長職業生涯之後，約翰即將退休，他將把自己的職責移交給 JC Chetnani。我們祝福約翰和他的妻子退休後一切順利，並歡迎 JC 擔任新職務。

Moving to our 2023 performance, I continue to be impressed with our operations and remain confident about the strengths of our company and our long-term growth potential. Technological innovation, material science know-how, operational execution, customer satisfaction, and capital discipline are all key to the long-term success of Albany.

談到我們 2023 年的業績，我仍然對我們的營運印象深刻，並對我們公司的優勢和長期成長潛力仍然充滿信心。技術創新、材料科學專業知識、營運執行、客戶滿意度和資本紀律都是奧爾巴尼長期成功的關鍵。

I'll provide an overview of 2023's financial performance. Rob will later discuss our fourth-quarter results in detail and provide our outlook for 2024.

我將概述 2023 年的財務表現。Rob 稍後將詳細討論我們第四季的業績，並提供我們對 2024 年的展望。

In 2023, our businesses remain focused on operational execution and delivered outstanding financial performance. This is a testament to the strong management team at Albany, who have stayed a step ahead of global macroeconomic issues and allowed us to deliver our high-quality products on time with excellent financial results.

2023年，我們的業務仍然專注於營運執行，並取得了出色的財務表現。這證明了奧爾巴尼強大的管理團隊，他們在全球宏觀經濟問題上保持領先一步，使我們能夠按時交付高品質的產品，並取得優異的財務表現。

We closed the year with consolidated revenue of $1.15 billion, up 11%, primarily driven by 12% top-line growth in our engineered composites business, along with 10% top-line revenue growth in machine clothing, largely resulting from our recent Heimbach acquisition. Importantly, we grew adjusted EBITDA to $265 million, up 5% over the prior year. Adjusted EBITDA margins came in just over 23% versus the prior year of 24.5%. The margin compression was primarily driven by growth in sales at engineered composites and the acquisition of Heimbach.

我們全年的綜合收入為11.5 億美元，成長11%，這主要是由於我們的工程複合材料業務的收入增長了12%，以及機衣的收入增長了10%，這主要是由於我們最近收購了Heimbach 。重要的是，我們將調整後 EBITDA 增至 2.65 億美元，比上年增長 5%。調整後 EBITDA 利潤率略高於 23%，而前一年為 24.5%。利潤率壓縮主要是由工程複合材料銷售成長和收購 Heimbach 所推動的。

GAAP net income for 2023 was $111 million or $3.55 per share, up from $96 million last year or $3.04 per share. Diluted adjusted EPS for 2023 after adjustments primarily driven by expenses related to the Heimbach acquisition was $4.06 versus $3.87 in the prior year. Free cash flow for the year increased to $64 million from $32 million.

2023 年 GAAP 淨利為 1.11 億美元，即每股 3.55 美元，高於去年的 9,600 萬美元，即每股 3.04 美元。主要由 Heimbach 收購相關費用驅動的調整後，2023 年稀釋調整後每股收益為 4.06 美元，而前一年為 3.87 美元。本年度自由現金流從 3,200 萬美元增至 6,400 萬美元。

Turning our focus to the segments, our machine clothing business, excluding Heimbach, continues to be a strong consistent performer. This year was no different. Our machine clothing business, excluding Heimbach, reported $620 million in revenue, up 2% versus prior year on a currency-neutral basis. Adjusted EBITDA was $229 million, up 3%, again, on a currency-neutral basis. The adjusted EBITDA margin was 37%.

將我們的重點轉向細分市場，我們的機器服裝業務（不包括 Heimbach）仍然表現強勁。今年也不例外。我們的機器服裝業務（不包括 Heimbach）報告收入為 6.2 億美元，在匯率中性的基礎上比上年增長 2%。調整後 EBITDA 為 2.29 億美元，在貨幣中性的基礎上再次成長 3%。調整後的 EBITDA 利潤率為 37%。

The segment finished 2023 very strong, completing backlog orders and posting better results than we anticipated, especially in North America and Asia. The Heimbach acquisition added $51 million to machine clothing's top line for the final four months of 2023 and was modestly diluted to GAAP earnings. We continue to be pleased with the addition of Heimbach and the expanded presence in both European and Asian markets. Integration remains on track, and we expect that it will be accretive on a GAAP basis in 2025.

該部門在 2023 年表現非常強勁，完成了積壓訂單，並公佈了比我們預期更好的業績，尤其是在北美和亞洲。Heimbach 收購為機器服裝公司 2023 年最後四個月的營收增加了 5,100 萬美元，並適度稀釋到 GAAP 收益中。我們仍然對 Heimbach 的加入以及在歐洲和亞洲市場的影響力擴大感到高興。整合仍在進行中，我們預計 2025 年以 GAAP 計算將實現增值。

Our machine clothing business is well-positioned globally, with an increased share of our customers serving the secularly growing packaging and tissue markets, both of which continued to grow for us on a global basis. This was offset somewhat by weaker engineered fabrics demand, particularly in Europe. Overall, we saw a positive impact on our bottom-line results from both product and geographic mix. Machine clothing continues to demonstrate world-class execution across its global markets.

我們的機衣業務在全球範圍內處於有利地位，為長期增長的包裝和紙巾市場提供服務的客戶份額不斷增加，這兩個市場在全球範圍內都在持續增長。這在一定程度上被工程織物需求疲軟所抵消，尤其是在歐洲。總體而言，我們看到產品和地理組合對我們的利潤產生了積極影響。機器服裝繼續在其全球市場上展示世界一流的執行力。

Our engineered composite segment is executing on this long-term growth strategy. The segment reported revenue of $477 million, up 12% versus the prior year, while adjusted EBITDA margins expanded 60 basis points to 19% compared to 2022. Growth was driven by commercial programs, including Boeing 787 and new programs that kicked off in late 2022. AEC LEAP revenues was $175 million, up approximately $15 million year over year, in line with our most recent guidance.

我們的工程複合材料部門正在執行這項長期成長策略。該部門報告收入為 4.77 億美元，比上年增長 12%，調整後 EBITDA 利潤率比 2022 年增長 60 個基點，達到 19%。成長是由商業項目推動的，包括波音 787 和 2022 年底啟動的新項目。AEC LEAP 營收為 1.75 億美元，年增約 1,500 萬美元，符合我們最新的指引。

Turning to US government programs, we made first article delivery of the CH-53K Aft Transition in the second quarter of the year, ahead of schedule. The execution of the AEC operations team was exemplary and their ability to timely deliver on this program was noted by the industry.

談到美國政府計劃，我們在今年第二季提前交付了 CH-53K 後過渡的首件產品。AEC 營運團隊的執行堪稱典範，他們及時交付該計劃的能力得到了業界的認可。

Recurring production revenues on defense programs were up in aggregate year over year. This growth was masked by lower 2023 non-recurring revenues associated with the standoff of the CH-53K Aft Transition production line. These non-recurring efforts were largely completed in the first half of 2023.

國防項目的經常性生產收入整體較去年同期成長。這一成長被 CH-53K Aft Transition 生產線陷入僵局相關的 2023 年非經常性收入下降所掩蓋。這些非經常性工作已於 2023 年上半年基本完成。

We have a robust business development pipeline and have won significant new business in 2023, which will result in revenues in the short term. Notably, in 2023, we have significant growth in space programs and other emerging platforms. AEC's consistent ability to deliver a quality product on time to our customers is a significant competitive advantage when competing for new business.

我們擁有強大的業務開發管道，並在 2023 年贏得了重要的新業務，這將在短期內帶來收入。值得注意的是，到 2023 年，我們的太空計畫和其他新興平台將顯著成長。AEC 一貫能夠按時向客戶提供優質產品，這在競爭新業務時具有顯著的競爭優勢。

Turning to our business strategy, machine clothing is a consumable aftermarket business that performs consistently year-in and year-out. Albany International machine clothing benefits from a longstanding reputation for reliability, technological leadership that our customers value. The business generates strong cash flows and provides an excellent return on capital. Successful integration of Heimbach will generate system-wide efficiency and enhance customer service. The integration is designed to drive earnings and cash flow growth in the years to come.

談到我們的業務策略，機衣是一項消耗品售後業務，年復一年地表現始終如一。奧爾巴尼國際機衣得益於我們客戶所重視的可靠性和技術領先地位的長期聲譽。該業務產生強勁的現金流並提供出色的資本回報。Heimbach 的成功整合將提高整個系統的效率並增強客戶服務。此次整合旨在推動未來幾年的獲利和現金流成長。

Engineered composites will continue to be an important source of growth, as we focus on building out our business by disciplined selection of strategic partners and programs with a focus on capital efficiency. From an operations perspective, we will continue to deliver world-class execution and to meet our customers' quality and delivery requirements.

工程複合材料將繼續成為重要的成長來源，因為我們專注於透過嚴格選擇策略合作夥伴和專案來發展我們的業務，並專注於資本效率。從營運角度來看，我們將繼續提供世界級的執行力，滿足客戶的品質和交付要求。

Our reputation in the marketplace continues to grow, and our business development pipeline will provide us with growth opportunities over the medium-term. Our continued investment in proprietary and differentiated technologies will translate into meaningful growth over the long term.

我們在市場上的聲譽不斷提高，我們的業務發展管道將為我們提供中期成長機會。我們對專有和差異化技術的持續投資將轉化為長期有意義的成長。

Our balance sheet remains very strong, allowing us to pursue those investments that provide the highest risk-adjusted returns to our shareholders. During 2023, the company executed on the acquisition of Heimbach, invested in organic growth at AEC, continued to invest significantly in R&D, and increased our dividends to shareholders. This disciplined approach to capital management will continue to inform our business decisions.

我們的資產負債表仍然非常強勁，使我們能夠進行那些為股東提供最高風險調整回報的投資。2023 年，公司執行了 Heimbach 收購，投資於 AEC 的有機成長，繼續大力投資研發，並增加了對股東的股息。這種嚴格的資本管理方法將繼續為我們的業務決策提供資訊。

With that, I will hand it over to Rob to provide more details on the quarter and our outlook for 2024. Rob?

接下來，我將把它交給 Rob，提供有關本季度的更多詳細資訊以及我們對 2024 年的展望。搶？

Thank you, Gunnar, and good morning, everyone. I will review our fourth-quarter results of 2023 and then provide our outlook for 2024. During the quarter, a number of factors resulted in us delivering a result well ahead of our earlier expectations.

謝謝你，古納爾，大家早安。我將回顧我們 2023 年第四季的業績，然後提供我們對 2024 年的展望。在本季度，許多因素導致我們的業績遠遠超出了我們先前的預期。

At machine clothing, we successfully executed on a number of consumer orders, resulting in drawing down our backlog to more normalized levels. We also saw accelerated procurement savings as a result of the team's efforts to optimize our supply chain, a nice early win from our Heimbach integration.

在機器服裝領域，我們成功執行了許多消費者訂單，將我們的積壓訂單減少到更標準化的水平。由於團隊努力優化我們的供應鏈，我們也看到了採購成本的加速節省，這是我們 Heimbach 整合的早期勝利。

Additionally, Heimbach's standalone results were better than expected for the quarter. Corporate expenses came in lower than expected as we were managing controllable expenses. Our favorable effective tax rate for the quarter is due to the impact of a few discrete items.

此外，Heimbach 本季的獨立業績優於預期。由於我們管理可控的開支，公司開支低於預期。我們本季有利的有效稅率是由於一些離散項目的影響。

For the fourth quarter, we reported net sales of $324 million, up 20.4% from the fourth quarter last year and 19.6% versus the prior year period on a currency-neutral basis. The growth was primarily driven by Heimbach.

第四季度，我們報告淨銷售額為 3.24 億美元，比去年第四季成長 20.4%，在匯率中立的基礎上比去年同期成長 19.6%。這一增長主要是由 Heimbach 推動的。

Fourth-quarter machine clothing net sales, excluding Heimbach, increased 2.8% on a currency-neutral basis versus the fourth quarter of the prior year. Higher sales to the packaging and tissue industries were partially offset by contraction in our other end markets, most notably engineered fabrics.

不計入 Heimbach 的第四季機器服裝淨銷售額在匯率中立的基礎上比去年第四季成長了 2.8%。包裝和衛生紙行業銷售額的成長被我們其他終端市場（尤其是工程織物）的收縮所部分抵消。

In terms of geography, markets in the Americas are stronger year over year, Asian markets are slightly positive, while European markets remain soft. Engineered composites net sales of $132 million increased 10.6% on a currency-neutral basis compared to the fourth quarter of 2022. Our growth was driven by strength across our commercial and space programs, partially offset by our defense programs.

從地理來看，美洲市場較去年同期走強，亞洲市場略顯積極，而歐洲市場依然疲軟。與 2022 年第四季相比，工程複合材料淨銷售額為 1.32 億美元，在匯率中立的基礎上成長了 10.6%。我們的成長是由我們的商業和太空計劃的實力推動的，但部分被我們的國防計劃所抵消。

I would like to highlight that our recurring production revenues on the defense programs increased year over year, driven by both CH-53K and JASSM. During the fourth quarter of last year, there was significant one-time revenue generated by the stand-up of the CH-53K Aft Transition production line.

我想強調的是，在 CH-53K 和 JASSM 的推動下，我們國防計畫的經常性生產收入逐年增加。去年第四季度，CH-53K Aft Transition 生產線的投產產生了可觀的一次性收入。

Fourth-quarter gross profit for the company was $120 million, up $23 million or 22.5% from the same period last year. Within machine clothing, excluding Heimbach, favorable product mix and lower procurement costs drove an increase in gross margins to 51.9%, up 270 basis points versus the same period last year. While at AEC, gross margins finished with a strong 20%, up 120 basis points versus the same period last year. Note that for the quarter, we recognize a net unfavorable change in the estimated profitability on our long-term contracts of $1.5 million, compared to a net unfavorable change of $1.7 million in the fourth quarter of last year.

該公司第四季毛利為1.2億美元，比去年同期成長2,300萬美元，成長22.5%。在機器服裝領域（不包括Heimbach），有利的產品結構和較低的採購成本推動毛利率增長至51.9%，較去年同期增長270個基點。AEC 的毛利率高達 20%，比去年同期成長 120 個基點。請注意，就本季而言，我們認識到長期合約的預計獲利能力淨不利變化為 150 萬美元，而去年第四季的淨不利變化為 170 萬美元。

Net R&D expenses were in line with the prior year and represent approximately 3% of our revenues. SG&A expenses for the fourth quarter were largely unchanged on the base business from the prior year. The year-over-year growth in total SG&A is due to the addition of Heimbach.

淨研發費用與去年持平，約占我們營收的 3%。第四季的銷售、管理及行政費用與去年同期基本持平。SG&A 總額的年成長歸因於 Heimbach 的加入。

GAAP net income attributable to the company for the quarter was $30.5 million, compared to $18.1 million last year. Heimbach results reduced GAAP net income by approximately $5 million, largely the result of inventory step-up and initial integration expenses.

該季度 GAAP 歸屬於公司的淨利潤為 3,050 萬美元，而去年同期為 1,810 萬美元。Heimbach 業績使 GAAP 淨利潤減少了約 500 萬美元，這主要是庫存增加和初始整合費用的結果。

GAAP diluted EPS was $0.97 per share in this quarter versus $0.58 in the same period last year. After adjustments primarily related to the Heimbach acquisition as detailed in our non-GAAP reconciliation, the adjusted EPS on a diluted basis was $1.22, compared to $0.75 in the same period last year. Please note that from this call going forward, EPS results will be reported on a diluted basis.

本季 GAAP 攤薄後每股收益為 0.97 美元，去年同期為 0.58 美元。根據我們的非 GAAP 調節表中詳細說明的主要與 Heimbach 收購相關的調整後，調整後的攤薄每股收益為 1.22 美元，而去年同期為 0.75 美元。請注意，從本次電話會議開始，每股收益結果將在稀釋的基礎上報告。

Adjusted EBITDA of $75 million for the fourth quarter increased 28% from the prior year period. Machine clothing adjusted EBITDA, excluding Heimbach, increased 12% to $58.6 million. Segment adjusted EBITDA margins were 37.5%, an 80-basis-point improvement from the prior year. Heimbach operations added $3 million of adjusted EBITDA. AEC adjusted EBITDA was $27.1 million, a 21% improvement over the prior year. Margins at AEC were 20.5% of sales, a 170-basis-point improvement over the prior year period.

第四季調整後 EBITDA 為 7,500 萬美元，比去年同期成長 28%。機器服裝調整後的 EBITDA（不包括 Heimbach）成長了 12%，達到 5,860 萬美元。部門調整後 EBITDA 利潤率為 37.5%，比前一年提高 80 個基點。Heimbach 業務調整後 EBITDA 增加了 300 萬美元。AEC 調整後 EBITDA 為 2,710 萬美元，較上年成長 21%。AEC 的利潤率為銷售額的 20.5%，比去年同期提高了 170 個基點。

During the fourth quarter, the company generated $39 million of free cash flow, with cash flow from operating activities at $74 million and capital expenditures at $35 million. Over the fourth quarter, we paid down debt of over $30 million. Our balance sheet remained strong with a cash balance of $173 million and over $350 million of borrowing capacity under our committed credit facility. Our net leverage at the end of the year came in at approximately 1 time, giving us financial flexibility to execute our plans.

第四季度，公司產生了 3,900 萬美元的自由現金流，其中經營活動現金流為 7,400 萬美元，資本支出為 3,500 萬美元。第四季度，我們償還了超過 3000 萬美元的債務。我們的資產負債表依然強勁，現金餘額為 1.73 億美元，承諾信貸額度下的借款能力超過 3.5 億美元。截至年底，我們的淨槓桿約為一倍，這使我們能夠靈活地執行計劃。

Finally, I want to touch upon Heimbach. Heimbach added $36 million to our top line for the quarter and was modestly diluted to our GAAP earnings. I am impressed with their people and technology. Our integration efforts are on track, and I have confidence in our ability to meet the financial targets outlined at the time of the acquisition announcement.

最後，我想談談海姆巴赫。Heimbach 本季的營收增加了 3,600 萬美元，並適度稀釋了我們的 GAAP 收益。他們的人員和技術給我留下了深刻的印象。我們的整合工作正在步入正軌，我對我們實現收購公告時概述的財務目標的能力充滿信心。

Turning to our outlook for 2024, we are forecasting another strong year with double-digit top-line growth and continued attractive EBITDA margins. Moving to our machine clothing outlook, we expect the business to perform well in the coming year. We anticipate markets in Europe will remain soft by historic standards. However, Asian markets are showing early indications of improvement from the soft patch they saw in the first half of 2023. Markets in the Americas remain healthy.

談到 2024 年的展望，我們預計又一個強勁的一年，將實現兩位數的營收成長和持續有吸引力的 EBITDA 利潤率。轉向我們的機器服裝前景，我們預計該業務在來年表現良好。我們預計，按照歷史標準，歐洲市場將保持疲軟。然而，亞洲市場已顯示出較 2023 年上半年疲軟改善的初步跡象。美洲市場保持健康。

For 2024, the Heimbach acquisition, as expected, will meaningfully add to our revenue outlook and will be diluted to our GAAP results. The low end of our machine clothing guide assumes weaker-than-expected global market conditions and corresponding lower absorption. The top end of our range assumes robust markets in the Americas, continued recovery in Asia, and improvement in Europe. We expect revenues of $760 million to $790 million and adjusted EBITDA of $230 million to $250 million.

對於 2024 年，Heimbach 收購正如預期的那樣，將有意義地增加我們的收入前景，並將稀釋到我們的 GAAP 業績中。我們的機衣指南的低端假設全球市場狀況弱於預期，因此吸收率相應較低。我們的高階產品假設美洲市場強勁，亞洲市場持續復甦，歐洲市場也有所改善。我們預計營收為 7.6 億至 7.9 億美元，調整後 EBITDA 為 2.3 億至 2.5 億美元。

Turning to AEC, we are on high-demand programs, and most are continuing to ramp at sustained production levels. Going forward, we expect our long-term growth to continue to be driven by increasing production across commercial, defense, and space programs.

談到 AEC，我們正在進行高需求項目，並且大多數項目都在持續以持續的生產水平提高產量。展望未來，我們預計我們的長期成長將繼續受到商業、國防和太空項目產量增加的推動。

We have a strong backlog, and we continue to see positive results from our ongoing business development efforts. We have one new business that we expect will add revenues to the second half of the year and set us up for continued growth into 2025.

我們有大量的積壓訂單，並且我們持續的業務發展努力繼續取得積極成果。我們有一項新業務，預計將增加下半年的收入，並為我們在 2025 年持續成長奠定基礎。

As we think about our guide, the low end of our guide beyond normal variability takes into account the potential for lower-than-planned LEAP component demand from our customer or delays in the reward of new programs reflected in our plan. The high end of the range takes into account the potential for earlier-than-anticipated start on new wins and a higher-than-expected LEAP production.

當我們考慮我們的指南時，我們指南超出正常可變性的低端考慮了客戶對 LEAP 組件需求低於計劃的可能性或我們計劃中反映的新計劃獎勵的延遲。該範圍的高端考慮了新勝利開始時間早於預期以及 LEAP 產量高於預期的可能性。

Overall for the segment, we are providing an initial revenue guide of $500 million to $540 million. From a profitability perspective, we expect to see a positive shift in product mix and a modest improvement in margins. Accordingly, we are guiding our adjusted EBITDA at $97 million to $107 million.

總體而言，我們為該細分市場提供了 5 億至 5.4 億美元的初始收入指引。從獲利角度來看，我們預期產品結構將發生正向轉變，利潤率將略有改善。因此，我們預計調整後 EBITDA 為 9,700 萬至 1.07 億美元。

I would like to bring your attention to some headwinds impacting our 2024 adjusted EPS. We will see higher pension expense in our base business due to the expiration of prior accounting treatment relating to the amortization of prior service costs. This will result in a non-cash expense of approximately $4 million or $0.09 per share. Purchase accounting adjustments from the Heimbach transaction will increase depreciation and amortization by $3.7 million or approximately $0.08 per share.

我想提請您注意影響我們 2024 年調整後每股盈餘的一些不利因素。由於與先前服務成本攤銷相關的先前會計處理到期，我們將在我們的基礎業務中看到更高的退休金費用。這將導致約 400 萬美元或每股 0.09 美元的非現金費用。Heimbach 交易的購買會計調整將使折舊和攤提增加 370 萬美元，即每股約 0.08 美元。

And finally, our previously placed interest rate swap arrangement will mature at the end of October 2024. We are exploring various alternatives to minimize the impact. For guidance purposes, we have estimated the full impact to our net interest costs at approximately $2.6 million or $0.06 per share, assuming current interest rate levels. Together, these items represent a $0.23 headwind to our EPS by 2024. These impacts, excluding interest, are non-cash.

最後，我們先前製定的利率掉期安排將於 2024 年 10 月底到期。我們正在探索各種替代方案以盡量減少影響。出於指導目的，假設當前利率水平，我們估計對淨利息成本的全面影響約為 260 萬美元或每股 0.06 美元。到 2024 年，這些項目合計對我們的 EPS 造成 0.23 美元的阻力。這些影響（不包括利息）是非現金的。

At a consolidated level, our 2024 guidance is as follows: revenue of $1.26 billion to $1.33 billion; adjusted EBITDA between $260 million and $290 million; adjusted EPS between $3.55 per share and $4.05 per share; depreciation and amortization between $85 million to $95 million; an effective income tax rate of 29% to 31%; capital expenditures in the range of $90 million to $95 million. Our goal with this guidance is to provide investors with a forecast which equally balances the risks and opportunities we see in the coming year.

在綜合層面上，我們 2024 年的指引如下： 營收為 12.6 億美元至 13.3 億美元；調整後的 EBITDA 在 2.6 億美元至 2.9 億美元之間；調整後每股收益在 3.55 美元至 4.05 美元之間；折舊和攤提在 8,500 萬至 9,500 萬美元之間；有效所得稅率為29%至31%；資本支出在9000萬至9500萬美元之間。我們制定本指南的目標是為投資者提供平衡我們在來年看到的風險和機會的預測。

Now, I would like to open the call for questions. Operator?

現在，我想開始提問。操作員？

Thank you. (Operator Instructions) Steve Tusa, JPMorgan.

謝謝。（操作員指示）Steve Tusa，摩根大通。

Hey. Good morning. How are you?

嘿。早安.你好嗎？

Hi. How are you, Steve?

你好。你好嗎，史蒂夫？

Good morning.

早安.

John, nice working with you. Congrats on retirement.

約翰，很高興與你合作。恭喜退休。

Thank you very much.

非常感謝。

Just maybe a little bit of color on the quarterly cadence for the year on sales and margins by segment for '24.

也許只是對 24 年按細分市場劃分的銷售額和利潤率的季度節奏進行了一些修改。

Yeah. So Steve, we haven't provided a quarterly guidance. I think if you look historically, we tend to be a little bit lighter in Q1. But I would just say that, when you look at the nature of our business, there really isn't a seasonality that is really significant. So I wouldn't overweight one quarter significantly over another at this point.

是的。所以史蒂夫，我們還沒有提供季度指導。我認為，如果你從歷史角度來看，我們在第一季的表現往往會稍微輕鬆一些。但我只想說，當你審視我們業務的本質時，你會發現確實沒有真正重要的季節性。因此，目前我不會將某一季的體重顯著超過另一季。

Okay. And then just maybe your latest color on what's happening at Boeing and how you guys are aligning with their production, which seems a little more volatile than expected maybe a few months ago.

好的。然後，也許您對波音公司正在發生的事情以及您如何與他們的生產保持一致的最新看法，這似乎比幾個月前的預期更加不穩定。

Yeah. Obviously, we're watching that with high interest, Steve. But our contract and relationship is with Safran, and they said it very succinctly in their earnings call that they have a plan for the year and will continue on that until there are changes coming from Boeing.

是的。顯然，我們非常感興趣地關注著這一點，史蒂夫。但我們的合約和關係是與賽峰集團簽訂的，他們在財報電話會議上非常簡潔地表示，他們有今年的計劃，並將繼續執行該計劃，直到波音做出改變。

And that's our position as well. We have a plan. We recognize there might be a reduction in that. That'll have some revenue impact, but mostly revenue impact. So we'll wait and see. It will be -- the first quarter will probably be indicative to where the year goes with the LEAP going to Boeing.

這也是我們的立場。我們有一個計劃。我們認識到這一數字可能會有所減少。這會對收入產生一些影響，但主要是收入影響。所以我們拭目以待。隨著 LEAP 飛機落入波音公司，第一季可能會預示這一年的進展。

And then just one more quick one, just cash conversion for '24. Thanks a lot for the detail.

然後還有一個快速的，就是 24 年的現金兌換。非常感謝您的詳細資訊。

Great. Thank you. I'm sorry, say that again, Steve?

偉大的。謝謝。對不起，請再說一遍，史蒂夫？

Cash conversion.

現金兌換。

Oh. Cash conversion --

哦。現金兌換--

Cash conversation. Yeah.

現金對話。是的。

So cash conversation will be an improvement over this year. That is what we're expecting. We haven't provided that level of detail, but we are -- if you look at our prior Investor Day materials, our long-term goal is to get net income conversion just like near net income. So we're not there yet. We're still in growth mode. So we still are ramping up on a number of programs, Steve, but it should be higher than this year for sure.

因此，現金對話將比今年有所改善。這就是我們所期待的。我們沒有提供如此詳細的信息，但如果您查看我們之前的投資者日材料，我們的長期目標是獲得淨利潤轉換，就像接近淨利潤一樣。所以我們還沒到那一步。我們仍處於成長模式。因此，我們仍在加強一些計劃，史蒂夫，但肯定會比今年更高。

Great. Thanks a lot, guys.

偉大的。非常感謝，夥計們。

Thank you. Jan-Frans Engelbrecht, Baird.

謝謝。揚-弗蘭斯·恩格爾布萊希特，貝爾德。

Thanks. Good morning, John, Rob, and Gunnar. Congrats on a good quarter. I guess, I'll start with, can you just give us a sense if there's been any communication with Safran on the LEAP contract pricing structure? And could you see this transition from a cost-plus to a fixed price in the near term? I would imagine that fixed price would be quite attractive for your margin profile.

謝謝。早上好，約翰、羅布和岡納爾。恭喜季度表現良好。我想，首先，您能否告訴我們是否與賽峰集團就 LEAP 合約定價結構進行了任何溝通？您能否在短期內看到從成本加成到固定價格的轉變？我想固定價格對您的利潤狀況非常有吸引力。

Yeah. The structure remains the same. It is a cost-plus program. And coming into this role, I can tell you that I'm surprised to see that that is the way the contract is constructed. And as we go forward, our joint goal is to reduce the cost of 3D woven products so that it becomes more attractive in the market beyond LEAP and some of the other projects that we're doing. So we're looking at that structure, and we will update when we're ready.

是的。結構保持不變。這是一個成本加成計劃。擔任這個角色後，我可以告訴你，我很驚訝地發現這就是合約的建構方式。隨著我們的前進，我們的共同目標是降低 3D 編織產品的成本，使其在 LEAP 和我們正在進行的其他一些項目之外的市場上更具吸引力。因此，我們正在研究該結構，準備就緒後我們將進行更新。

Perfect. Thanks. That's helpful. Just a quick follow-up on the integration of Heimbach, are there any additional lessons that you've maybe learned in terms of pricing that you could incorporate in the existing business or vice versa that you could just share with us?

完美的。謝謝。這很有幫助。關於 Heimbach 整合的快速跟進，您是否在定價方面學到了任何其他經驗教訓，您可以將其納入現有業務中，反之亦然，您可以與我們分享嗎？

Yeah. You learn -- you always learn something when you get into the details of a new company. I've spent quite a bit of time there. I've been to four of the sites, getting into the detail. I think the best way to describe this is, we have a very strong machine clothing business. They're very good at what they do.

是的。你會學到東西——當你深入了解新公司的細節時，你總是會學到一些東西。我在那裡度過了相當多的時間。我去過其中四個網站，了解細節。我認為描述這一點的最好方式是，我們擁有非常強大的機器服裝業務。他們非常擅長他們所做的事情。

What we're doing with the machine clothing business is what you should expect to see from the Heimbach integration. The bonus here is that we're getting new technology, we're getting a stronger presence both in Asia and in Europe and technology that is complementing. So we're seeing that. We're very confident with where we're going with this integration. It's a very good acquisition.

我們在機器服裝業務上所做的正是您應該從 Heimbach 整合中看到的。這裡的好處是我們正在獲得新技術，我們在亞洲和歐洲都擁有更強大的影響力，而且技術是互補的。所以我們看到了這一點。我們對這次整合的進展非常有信心。這是一次非常好的收購。

Perfect. Thank you. I'll jump back in the queue. Thanks.

完美的。謝謝。我會跳回到隊列中。謝謝。

Thank you. Pete Osterland, Truist Securities.

謝謝。皮特‧奧斯特蘭 (Pete Osterland)，Truist 證券公司。

Hey. Good morning. I'm on for Mike Ciarmoli this morning. Thanks for taking our questions. First, on machine clothing --

嘿。早安.今天早上我替麥克‧恰莫利 (Mike Ciarmoli) 發言。感謝您回答我們的問題。一、關於機衣--

Good morning.

早安.

Good morning. On machine clothing segment, what is your outlook for growth for the Heimbach business in 2024? Is there any meaningful difference between the growth you're expecting for the year there relative to your legacy machine clothing business?

早安.在機器服裝領域，您對 Heimbach 業務 2024 年的成長前景有何看法？您預計今年的成長與您的傳統機器服裝業務相比是否存在任何有意義的差異？

No. I think we look at the whole business as a GDP growth business. We expect Heimbach to be relatively flat based on the concentration of European businesses, but they also have a business in Asia. So with that, we think the first year will be flat.

不。我認為我們將整個業務視為 GDP 成長業務。基於歐洲業務的集中度，我們預計 Heimbach 的業績將相對持平，但他們在亞洲也有業務。因此，我們認為第一年將持平。

Great. Thanks. And then just as a follow-up, with the step-up for capital expenditures in your guidance this year, if you could just provide some more detail there. How much of the year-over-year increase is related to the acquisition? And are there any areas within AEC, if you could talk about where you're targeting increased capital spending this year, to drive future growth? Thank you.

偉大的。謝謝。然後，作為後續行動，今年您的指導中將增加資本支出，如果您能在那裡提供更多細節的話。年比成長有多少與收購有關？如果您能談談您今年的目標是在哪些領域增加資本支出，以推動未來的成長，AEC 內部是否有任何領域？謝謝。

Sure. This is Rob. We are going to see a higher level just with the addition of Heimbach. They are investing in their capacity as well and capabilities. So that's definitely an impact.

當然。這是羅布。只要海姆巴赫的加入，我們就會看到更高的水準。他們也在投資自己的能力。所以這絕對是一個影響。

As it relates to AEC, we continue to be in ramp mode in a number of programs, plus we've got some other wins that we're going to need to make some investment in this year to support the growth. With 10% growth, I mean, that's really just fundamental as we're going to see some level of elevated CapEx for a little bit of time here.

由於與 AEC 相關，我們在許多項目中繼續處於斜坡模式，此外我們還取得了一些其他成果，我們需要在今年進行一些投資以支持成長。我的意思是，成長 10% 確實非常重要，因為我們將在一段時間內看到一定程度的資本支出上升。

However, I would just say that the other piece where we're investing, and it shows up with purchase software, is we do have some CMMC and other requirements. But overall, the investment level that we're reflecting for this year really just reflects top-line growth -- double-digit top line.

然而，我只想說，我們正在投資的另一部分（它隨購買軟體一起出現）是我們確實有一些 CMMC 和其他要求。但總體而言，我們今年反映的投資水準實際上只反映了營收成長——兩位數的營收成長。

Great. Thanks for the color.

偉大的。謝謝你的顏色。

Thank you. (Operator Instructions) Jordan Lane, Bank of America.

謝謝。（操作員指示）Jordan Lane，美國銀行。

Hey. Good morning. Thank you for taking the question. I know you guys said that you're aligning with Safran and CFM's guide. Are you seeing any changes from their ability to take on excess inventory? And then also, too, for your production schedule this year, are you doing anything different to avoid the excess inventory that they held through 2023?

嘿。早安.感謝您提出問題。我知道你們說過你們正在與賽峰集團和 CFM 的指南保持一致。您是否發現他們處理過剩庫存的能力發生了任何變化？另外，對於你們今年的生產計劃，你們是否採取了一些不同的措施來避免他們在 2023 年之前持有過多的庫存？

Our plan with Safran has been set for the year. We've not seen any changes. There was some buildup of inventory last year because we kept it flat through the end of the year. But with a higher consumption expected this year, that inventory, both with us, Safran, will slowly be reduced. So our plan is -- on the program is relatively flat for the year, which will impact with a lower inventory.

我們與賽峰集團的今年計劃已經確定。我們沒有看到任何變化。去年庫存增加，因為我們在年底前保持了持平。但隨著今年消費量的增加，我們和賽峰集團的庫存將慢慢減少。所以我們的計劃是——今年的計劃相對持平，這將影響庫存下降。

Okay. Got it. And then just one follow-up, too. On M&A, could you guys talk a little bit about the pipeline right now? Is there any specific area you guys are looking to increase exposure?

好的。知道了。然後也只有一個後續行動。關於併購，現在可以談談管道嗎？你們有什麼特定領域希望增加曝光嗎？

Yeah. Tere's a lot of activity I think is picked up. We get new opportunities in front of us on a weekly basis. So we are assessing everything that makes sense for us. We just want to make sure that it's a good fit for us and also that the multiple makes sense. We've seen some of the multiples be pretty high. And with the cost of capital right now, we want to make sure that we make the right acquisition.

是的。我認為有很多活動已經開始。我們每週都會遇到新的機會。因此，我們正在評估對我們有意義的一切。我們只是想確保它適合我們並且倍數有意義。我們已經看到一些倍數相當高。考慮到目前的資本成本，我們希望確保做出正確的收購。

We're also looking at internal, where do we spend, as the last caller said. We have relatively high capital expenditure, and that's because we see the opportunities there with the returns being very accretive. But we'll continue to look and the market is active.

正如最後一個來電者所說，我們也在考慮內部支出，我們在哪裡花錢。我們的資本支出相對較高，這是因為我們看到了那裡的機會，回報非常豐厚。但我們將繼續觀察，市場很活躍。

Thank you, guys, so much.

非常感謝你們，夥伴們。

Thank you.

謝謝。

Thank you. Gautam Khanna, TD Cowen.

謝謝。高塔姆·卡納，TD·考恩。

Thanks for taking the question. This is Spencer Breitzke on for Gautam Khanna. Could you talk about your assumptions for CH-53K and F-35 for 2024? Thank you.

感謝您提出問題。我是 Spencer Breitzke 為 Gautam Khanna 發言。您能談談您對 2024 年 CH-53K 和 F-35 的假設嗎？謝謝。

So CH-53K continues to grow in line with the plan from Sikorsky and the Marines. Good program, good growth, lots of work. We're actually here in Salt Lake City today doing the call, and we'll be spending time later this week with Sikorsky.

因此，CH-53K 繼續按照西科斯基和海軍陸戰隊的計劃發展。好的計劃，好的成長，大量的工作。事實上，我們今天在鹽湖城進行電話會議，本週晚些時候我們將與西科斯基共度時光。

On the Joint Strike Fighter, I think we should expect to see some growth to relatively flat. We know what Lockheed Martin is saying that they will build and will support the build. We're ready to support that build, but last year, it remained below 100. We're hoping to see that it goes above 100, but we have planned for a rate right around the 100 in our numbers.

在聯合攻擊戰鬥機方面，我認為我們應該預期會看到相對穩定的成長。我們知道洛克希德馬丁公司所說的他們將建造並支持建造。我們已準備好支持該構建，但去年該數字仍低於 100。我們希望看到它超過 100，但我們計劃將比率控制在 100 左右。

Thank you. And then could you also talk about Europe demand for machine clothing and what you're saying regarding destocking? Thank you.

謝謝。然後您能否談談歐洲對機器服裝的需求以及您對去庫存的看法？謝謝。

Yeah. We've seen Europe being soft. We don't see it becoming softer, but we're keeping our eyes on Europe and the latest expectations of GDP growth there. Are you still on?

是的。我們看到歐洲很軟弱。我們認為經濟不會變得疲軟，但我們正在密切關注歐洲及其 GDP 成長的最新預期。你還在嗎？

Spencer, are you there?

史賓塞，你在嗎？

Yeah. Thank you. That's all for me.

是的。謝謝。這就是我的全部。

Sure.

當然。

Thank you. That concludes today's Q&A session. I will now turn the call back over to Gunnar Kleveland for closing remarks. Please go ahead.

謝謝。今天的問答環節到此結束。現在，我將把電話轉回給岡納·克利夫蘭（Gunnar Kleveland），讓其致閉幕詞。請繼續。

All right. Thank you, and thank you everyone for joining us on the call today. We appreciate your continued interest in Albany International. Thank you, and have a good day.

好的。謝謝大家，也謝謝大家今天加入我們的電話會議。我們感謝您對奧爾巴尼國際的持續關注。謝謝你，有美好的一天。

This concludes today's conference call. You may all disconnect.

今天的電話會議到此結束。你們都可以斷開連線。