Albany International Reports Fourth-Quarter Results

Albany International Corp. (NYSE: AIN), a global advanced textiles and materials processing company with core businesses in machine clothing and engineered composites, reported Q4 2012 income from continuing operations of $8.0 million ($0.25 per share). These results include restructuring charges of $0.9 million ($0.02 per share), foreign currency revaluation losses of $4.0 million ($0.08 per share), and net unfavorable income tax adjustments of $0.1 million ($0.01 per share) (see Table 6).

Q4 2011 income from continuing operations was a loss of $10.0 million ($0.32 per share). These results included restructuring charges of $4.9 million ($0.10 per share), foreign currency revaluation gains of $3.5 million ($0.08 per share), and net unfavorable income tax adjustments of $15.6 million ($0.50 per share) (see Table 7).

Net sales from continuing operations were $194.3 million, a decrease of 1.6 percent compared to Q4 2011. The following table summarizes net sales by segment and the effect of changes in currency translation rates:

Table 1
 

 
   

Impact of
 

Percent

Net Sales

Changes

Change

Three Months ended

in Currency

excluding

 

December 31,

Percent

Translation

Currency

(in thousands)
 

2012
 

2011
 

Change
 

Rates
 

Rate Effect
Machine Clothing (MC)   $ 174,295     $ 183,218     -4.9 %   ($2,161 )   -3.7 %
Engineered Composites (AEC)     20,040       14,182     41.3     -     41.3  
Total   $

194,335
    $ 197,400     -1.6 %   ($2,161 )   -0.5 %
 

Gross profit was $79.0 million (40.6 percent of net sales) in the fourth quarter of 2012, compared to $77.0 million (39.0 percent of net sales) in the same period of 2011. The increase in gross profit percentage was primarily due to results at Machine Clothing, where gross profit margins increased from 42.1 percent in 2011 to 45.0 percent in 2012, reflecting high plant utilization in the Americas, favorable geographic sales mix, and the cumulative effect of restructuring actions taken over the last year.

Selling, technical, general, and research (STG&R) expenses were $58.4 million, or 30.0 percent of net sales, in the fourth quarter of 2012. STG&R expenses included losses of $1.2 million related to the revaluation of non-functional-currency assets and liabilities. In the fourth quarter of 2011, STG&R expenses were $61.8 million, or 31.3 percent of net sales, including gains of $0.9 million related to the revaluation of non-functional-currency assets and liabilities. The decrease in STG&R expense reflects lower bad debt charges and lower pension expense resulting from the settlement of certain pension liabilities in Q2 2012.

The following table summarizes fourth-quarter operating income by segment.

Table 2
 

Operating Income/(loss)

Three Months ended

 

December 31,

(in thousands)
 

2012
 

2011
Machine Clothing   $ 43,112     $ 39,912  
Engineered Composites     (187 )     (583 )
Research expenses     (7,564 )     (8,230 )
Unallocated expenses     (15,696 )     (20,803 )
Total   $ 19,665     $ 10,296  
 

Q4 2012 Machine Clothing operating income included restructuring charges of $1.1 million and foreign currency revaluation losses of $1.2 million. Q4 2011 Machine Clothing operating income included restructuring charges of $2.5 million and foreign currency revaluation gains of $0.9 million. Unallocated expenses included restructuring charges of $2.4 million in Q4 2011.

Q4 2012 Other income/expense, net, was expense of $2.6 million, including losses of $2.8 million related to the revaluation of non-functional-currency intercompany balances. Other income/expense, net, in Q4 2011 was income of $2.2 million, including income of $2.7 million related to the revaluation of non-functional-currency intercompany balances.

The following table summarizes currency revaluation effects on certain financial metrics:

Table 3
 

Income/(loss) attributable

to currency revaluation

Three Months ended

 

December 31,

(in thousands)
 

2012
 

2011
Operating income   ($1,186 )   $ 861  
Other income/(expense), net   ( 2,829 )     2,650  
Total   ($4,015 )   $ 3,511  
 

The Company’s effective income tax rate, exclusive of discrete tax items, was 38.5 percent for the fourth quarter of 2012, compared to 33.1 percent for the fourth quarter of 2011. Q4 2012 income tax expense included an unfavorable adjustment of $1.2 million related to a change in the tax rate, and net favorable discrete income tax adjustments of $1.1 million. Q4 2011 income tax expense included net discrete income tax charges of $16.2 million, and a favorable adjustment of $0.7 million related to a change in tax rate. The discrete tax charge in Q4 2011 was principally due to recording a valuation allowance in Germany resulting from the sale of the Company’s Doors business.

The following tables summarize Adjusted EBITDA from continuing operations:

Table 4

Three Months ended December 31, 2012
 

Machine
 

Engineered
 

Research and
 

Total

(in thousands)
 

Clothing
 

Composites
 

Unallocated
 

Company
Income/(loss) from continuing operations   $ 43,112       ($187 )   ($34,945 )   $ 7,980  
Interest expense, net     -       -     3,991       3,991  
Income tax expense     -       -     5,127       5,127  
Depreciation and amortization     11,576       1,595     2,564       15,735  
EBITDA from continuing operations     54,688       1,408     (23,263 )     32,833  
Restructuring and other, net     1,071       -     (159 )     912  
Foreign currency revaluation losses/(gains)     1,187       (2 )   2,830       4,015  
Adjusted EBITDA from continuing operations   $ 56,946     $ 1,406     ($20,592 )   $ 37,760  
 

Table 5

Three Months ended December 31, 2011
       

Machine

Engineered

Research and

Total

(in thousands)
 

Clothing
 

Composites
 

Unallocated
 

Company
Income/(loss) from continuing operations   $ 39,912       ($583 )   ($49,322 )     ( $9,993 )
Interest expense, net     -       -     4,182       4,182  
Income tax expense     -       -     18,279       18,279  
Depreciation and amortization     12,038       1,319     2,640       15,997  
EBITDA from continuing operations     51,950       736     (24,221 )     28,465  
Restructuring and other, net     2,465       -     2,396       4,861  
Foreign currency revaluation gains     (860 )     (1 )   (2,650 )     (3,511 )
Adjusted EBITDA from continuing operations   $ 53,555     $ 735    

($24,475

)
  $ 29,815  
 

Capital spending for equipment and software was $11.8 million for the fourth quarter of 2012, bringing the full-year total to $37.2 million. Depreciation and amortization related to continuing operations was $15.7 million for Q4 2012 and $63.1 million for the full year.

CEO Comments

President and CEO Joseph Morone said, “Q4 2012 was another good quarter for Albany International. Both businesses continued to perform well, Adjusted EBITDA was 27 percent higher than in the comparable period in 2011, and cash generation was once again strong and resulted in an additional $20 million reduction in net debt.

“In MC, the market trends of the past several quarters persisted. Sales remained stable in the Americas and China, weakened in Asia outside of China, and were well below 2011 levels in Europe. Pricing was stable around the world except for Europe, where it was under considerable pressure. On a positive note, we did see the first indications during Q4 that the sales decline in Europe might be moderating, as for the first time in over a year, quarterly sales increased on a sequential basis. Our competitive performance continues to be strong, as our market share with the leading papermakers in every region of the world is either holding firm or growing. Gross margins were once again strong and for the third consecutive quarter, exceeded 44 percent. Meanwhile, we decided in Q4 to make a major investment aimed at further enhancing our strength in R&D. For the last few years, at the same time that we have been introducing a steady stream of new products that helps to account for our strong competitive performance, we have been developing an entirely new, proprietary technology platform that offers the potential for an array of new products across all of our product segments. In 2013, we will begin construction of a $15 million facility capable of producing full-scale prototypes of new products based on this new technology platform at our plant in Kaukauna, Wisconsin. Our objective is to accelerate the cycle of exploration, development, scale-up, testing, and market introduction of this new generation of products.

“Our outlook for MC remains unchanged. For both the near and long term, we continue to view this as a business with the potential for flat, year-over-year Adjusted EBITDA. We still expect Adjusted EBITDA in 2013 to be roughly comparable to Adjusted EBITDA in 2012. Because of seasonal effects, we expect a weak Q1, although it is unlikely to be as weak as Q1 2012. This outlook for 2013 and beyond assumes that the conditions in the MC market will reflect the long-term sectoral trends of the paper industry: stability in the Americas, with growth in South America offsetting decline in Canada, and growth in packaging and tissue offsetting decline in newsprint, printing, and writing grades; in Europe, the sharp drops in demand due to the overcapacity in the paper industry should give way to the more predictable, structural declines in the newsprint, printing, and writing grades; and these more structural declines in Europe should be offset by continued growth in Asia. Our margins in Machine Clothing should hold, as long as overall sales continue at current levels and we continue to do an effective job of matching capacity with underlying market conditions and offsetting inflationary increases.

“For AEC, the trend of the past several quarters also continued in Q4. Sales were 41 percent higher than a year ago, while Adjusted EBITDA nearly doubled. The growth was driven primarily by LEAP program activities, which now account for 45 percent of sales (compared to 25 percent in Q4 2011). We continue to make good progress against the major LEAP program milestones – construction of the two plants, development of parts and maturation of the manufacturing process, and production of parts for testing. We also continued to make good progress on the R&D front; of particular note, the development of new composite products with SAFRAN for future upgrades to the LEAP engine, and the continued advancement of our ceramic matrix substrate on Boeing’s Ceramic Matrix Composite Engine Nozzle currently undergoing ground tests on a full-scale engine; flight tests are scheduled later this year.

“As for the outlook for AEC, we expect continued year-over-year strong growth in sales in 2013. For the longer term, while there is still a fair amount of uncertainty, it now appears that AEC’s production of LEAP components will be accelerated by about 12 months. This schedule is still subject to change. In our earlier releases, we suggested that AEC had the potential to reach $120 million in revenue by 2016 and that sales would ramp up rapidly between 2016 and 2019. Assuming this accelerated schedule holds, it now appears possible that AEC will reach $120 million revenue by 2015 and that the ramp-up will occur between 2015 and 2018. Any acceleration of AEC production will require an acceleration of AEC capital spending. Again assuming an accelerated schedule, the peak years for LEAP capital spending will likely be 2013 to 2015, rather than 2014 to 2016 as we had previously assumed.

“In sum, Q4 was another strong quarter for Albany International, and we expect the trends exhibited in Q4 – steady Adjusted EBITDA in MC, strong sales growth in AEC – to continue through 2013. At the same time, 2013 will be a year of substantial investment for future performance, given our decision to invest in the new R&D rapid scale-up facility in MC and the likely acceleration of AEC’s LEAP production.”

CFO Comments

CFO and Treasurer John Cozzolino commented, “The Company generated good cash flow during the quarter with cash balances, mostly held outside of the U.S., increasing to $191 million. Primarily due to that increase in cash, net debt declined about $20 million, as compared to Q3 (see Table 8), to approximately $129 million. Our leverage ratio, as defined in our primary debt agreements, was 1.06 at the end of Q4, while $258 million was available on our $390 million credit facility. On January 25, the Company announced the redemption, at 100 percent of principal, of all remaining 2.25 percent Convertible Senior Notes due 2026, of which an aggregate of $28.4 million in principal amount is outstanding. The redemption date will be March 15, 2013. In addition, the first $50 million of the Company’s debt with Prudential is due in October 2013. The Company expects to finance both debt repayments with borrowings from its bank credit facility.

“Accounts receivable and inventory, excluding currency effects, declined during Q4 as the effect of business growth in AEC was more than offset by continued improvement in Machine Clothing. In accounts receivable, Days Sales Outstanding remained flat at 63 days, compared to Q3, while inventory as a percent of net sales increased from 15.2 percent at the end of Q3 to 15.7 percent at the end of Q4.

“Capital expenditures in Q4 were about $12 million, bringing the full-year 2012 total to just over $37 million. As a result of the apparent acceleration of AEC’s LEAP production requirements, the Company expects capital spending to increase sharply in 2013. We continue to expect that average capital spending during the five-year period 2012 to 2016 will be $70 million per year, although the actual amount of capital spent in each year may vary widely due to changes in production and vendor payment schedules.

“Revaluation of non-functional-currency assets and liabilities generated a total loss of $4 million in Q4. This loss was primarily due to the revaluation of intercompany loans to the euro as well as the revaluation of U.S. dollar cash holdings and trade receivables to the euro.

“Our income tax rate for 2012, exclusive of discrete tax adjustments, was 38.5 percent. Including the utilization of net operating loss carry-forwards and other deferred tax assets, cash paid for income taxes in 2012 was $15.1 million.”

The Company plans a webcast to discuss fourth-quarter 2012 financial results on Thursday, February 7, 2013, at 9:00 a.m. Eastern Time. For access, go to www.albint.com.

About Albany International Corp.

Albany International is a global advanced textiles and materials processing company, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed fabrics and belts essential to production in the paper, nonwovens, and other process industries. Albany Engineered Composites is a rapidly growing supplier of highly engineered composite parts for the aerospace industry. Albany International is headquartered in Rochester, New Hampshire, operates 18 plants in 11 countries, employs 4,000 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com.

This release contains certain items, such as earnings before interest, taxes, depreciation and amortization (EBITDA), EBITDA from continuing operations, Adjusted EBITDA, sales excluding currency effects, effective income tax rate exclusive of income tax adjustments, net debt, and certain income and expense items on a per-share basis, that could be considered non-GAAP financial measures. Such items are provided because management believes that, when presented together with the GAAP items to which they relate, they provide additional useful information to investors regarding the Company’s operational performance. Presenting increases or decreases in sales, after currency effects are excluded, can give management and investors insight into underlying sales trends. An understanding of the impact in a particular quarter of specific restructuring costs, or other gains and losses, on operating income or EBITDA can give management and investors additional insight into quarterly performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect.

The effect of changes in currency translation rates is calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. That amount is then compared to the U.S. dollar amount reported in the current period. The Company calculates Income tax adjustments by adding discrete tax items to the effect of a change in tax rate for the reporting period. The Company calculates its effective Income tax rate, exclusive of Income tax adjustments, by removing Income tax adjustments from total Income tax expense, then dividing that result by Income before tax. The Company calculates EBITDA by adding Interest expense net, Income taxes, and Depreciation and Amortization to Net income. Adjusted EBITDA is calculated by adding to EBITDA, costs associated with restructuring and pension settlement charges, and then adding or subtracting revaluation losses or gains and subtracting building sale gains. The Company believes that EBITDA and Adjusted EBITDA provide useful information to investors because they provide an indication of the strength and performance of the Company's ongoing business operations, including its ability to fund discretionary spending such as capital expenditures and strategic investments, as well as its ability to incur and service debt. While depreciation and amortization are operating costs under GAAP, they are non-cash expenses equal to current period allocation of costs associated with capital and other long-lived investments made in prior periods. While restructuring expenses, foreign currency revaluation losses or gains, pension settlement charges, and building sale gains have an impact on the Company's net income, removing them from EBITDA can provide, in the opinion of the Company, a better measure of operating performance. EBITDA is also a calculation commonly used by investors and analysts to evaluate and compare the periodic and future operating performance and value of companies. EBITDA, as defined by the Company, may not be similar to EBITDA measures of other companies. Such EBITDA measures may not be considered measurements under GAAP, and should be considered in addition to, but not as substitutes for, the information contained in the Company’s statements of income.

The Company discloses certain income and expense items on a per share basis. The Company believes that such disclosures provide important insight into underlying quarterly earnings and are financial performance metrics commonly used by investors. The Company calculates the per-share amount for items included in continuing operations by using the effective tax rate utilized during the applicable reporting period and the weighted average number of shares outstanding for the period.

Table 6

Quarter ended December 31, 2012
 

Pre-tax
   

After-tax
 

Shares
 

Per Share
(in thousands, except per share amounts)  

amounts
  Tax Effect  

Effect
 

Outstanding
 

Effect
Restructuring and other, net from continuing operations   $912     $351     $561     31,402     $0.02  
Foreign currency revaluation losses from continuing operations   4,015     1,546     2,469     31,402     0.08  
Unfavorable effect of change in tax rate   -     1,178     1,178     31,402     0.04  
Net discrete income tax benefit from continuing operations   -    

1,098
   

1,098
    31,402     0.03  
 

Table 7

Quarter ended December 31, 2011
 

Pre-tax
   

After-tax
 

Shares
 

Per Share
(in thousands, except per share amounts)  

amounts
 

Tax Effect
 

Effect
 

Outstanding
 

Effect
Restructuring and other, net from continuing operations   $4,861     $1,609     $3,252     31,283     $0.10  
Foreign currency revaluation gains from continuing operations   3,511     1,162    

2,349
    31,283     0.08  
Favorable effect of change in tax rate   -     683     683     31,283     0.02  
Net discrete income tax charge from continuing operations   -    

16,243
    16,243     31,283     0.52  
 

The following table contains the calculation of net debt:

Table 8
 

December 31,
 

September 30,
 

December 31,
(in thousands)  

2012
 

2012
 

2011
Notes and loans payable   $586     $276     $424  
Current maturities of long-term debt   83,276     33,066     1,263  
Long-term debt   235,877     289,129     373,125  
Total debt   319,739     322,471     374,812  
Cash   190,718     173,939     118,909  
Net debt   $129,021     $148,532     $255,903  
 

This press release may contain statements, estimates, or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q) that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections.

Forward-looking statements in this release or in the webcast include, without limitation, statements about economic and paper industry trends and conditions during 2013 and in future years; sales, EBITDA, Adjusted EBITDA and operating income expectations in 2013 and in future periods in each of the Company’s businesses and for the Company as a whole, the timing and impact of production and development programs in the Company’s AEC business segment; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization, future debt levels and debt covenant ratios, future revaluation gains and losses, and the Company’s ability to reduce costs. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect, in some cases.
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
 
Three Months Ended   Years Ended
December 31, December 31,
 
2012   2011 2012   2011
 
$ 194,335 $ 197,400 Net sales $ 760,941 $ 787,287
  115,376     120,424   Cost of goods sold   455,545       473,121  
 
78,959 76,976 Gross profit 305,396 314,166
44,439 47,078 Selling, general, and administrative expenses 169,774 174,395
13,943 14,741 Technical, product engineering, and research expenses 52,962 55,846
912 4,861 Restructuring and other, net 7,061 9,317
  -     -   Pension settlement expense   119,735     -  
 
19,665 10,296 Operating income/(loss) (44,136 ) 74,608
3,991 4,182 Interest expense, net 16,601 18,121
  2,567     (2,172 ) Other expense/(income), net   7,629     2,639  
 
13,107 8,286 Income/(loss) before income taxes (68,366 ) 53,848
  5,127     18,279   Income tax expense/(benefit)   (27,523 )   32,582  
 
  7,980     (9,993 ) Income/(loss) from continuing operations   (40,843 )   21,266  
 
- 7,794 Income from operations of discontinued business 4,776 24,101
(80 ) - (Loss)/gain on sale of discontinued business 92,296 -
  (318 )   5,032   Income tax (benefit)/expense on discontinued operations   25,252     10,429  
  238     2,762   Income from discontinued operations   71,820     13,672  
$ 8,218     ($7,231 ) Net income/(loss) $ 30,977   $ 34,938  
 
Earnings per share - Basic
$ 0.25 ($0.32 ) Income/(loss) from continuing operations ($1.30 ) $ 0.68
  0.01     0.09   Discontinued operations   2.29     0.44  
$ 0.26     ($0.23 ) Net income/(loss) $ 0.99   $ 1.12  
 
Earnings per share - Diluted
$ 0.25 ($0.32 ) Income/(loss) from continuing operations * ($1.30 ) $ 0.67
  0.01     0.09   Discontinued operations   2.27   $ 0.44  
$ 0.26     ($0.23 ) Net income/(loss) $ 0.97   $ 1.11  
 
Shares used in computing earnings per share:
31,402 31,283 Basic 31,356 31,262
31,681 31,283 Diluted 31,636 31,510
 
$ 0.14 $ 0.13 Dividends per share $ 0.55 $ 0.51
 
 
* Due to a loss from continuing operations, year ended 2012 diluted loss per share is equal to the basic per share calculation.
 

ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
 
  December 31,   December 31,
2012 2011
ASSETS
Cash and cash equivalents $ 190,718 $ 118,909
Accounts receivable, net 171,535 147,511
Inventories 119,183 129,803
Income taxes receivable and deferred 20,594 30,010
Prepaid expenses and other current assets 10,435 13,349
Current assets of discontinued operations   -     67,351  
Total current assets 512,465 506,933
 
Property, plant and equipment, net 420,154 438,953
Intangibles 848 1,079
Goodwill 76,522 75,469
Deferred taxes 123,886 134,644
Other assets 22,822 23,383
Noncurrent assets of discontinued operations   -     50,467  
Total assets $ 1,156,697   $ 1,230,928  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable $ 586 $ 424
Accounts payable 35,117 32,708
Accrued liabilities 103,257 105,104
Current maturities of long-term debt 83,276 1,263
Income taxes payable and deferred 13,552 8,766
Current liabilities of discontinued operations   -     22,446  
Total current liabilities 235,788 170,711
 
Long-term debt 235,877 373,125
Other noncurrent liabilities 136,012 185,596
Deferred taxes and other credits 55,509 71,529
Noncurrent liabilities of discontinued operations   -     14,117  
Total liabilities   663,186     815,078  
 
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 36,642,204 in 2012 and 36,540,842 in 2011
37 37

Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,236,098 in 2012 and 2011
3 3
Additional paid in capital 395,381 391,495
Retained earnings 435,775 422,044
Accumulated items of other comprehensive income:
Translation adjustments (7,659 ) (19,111 )
Pension and postretirement liability adjustments (69,484 ) (118,104 )
Derivative valuation adjustment (2,878 ) (2,594 )

Treasury stock (Class A), at cost 8,467,873 shares in 2012, and 8,479,487 shares in 2011
  (257,664 )   (257,920 )
Total shareholders' equity   493,511     415,850  
Total liabilities and shareholders' equity $ 1,156,697   $ 1,230,928  
 

ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
Three Months Ended     Years Ended
December 31, December 31,
 
2012   2011 2012   2011
  OPERATING ACTIVITIES
$ 8,218 ($7,231 ) Net income/(loss) $ 30,977 $ 34,938
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
14,131 14,569 Depreciation 56,769 57,502
1,604 2,133 Amortization 6,466 8,883
203 188 Noncash interest expense 1,027 753
2,719 8,780 Change in long-term liabilities, deferred taxes and other credits (123,887 ) 237
227 2,241 Provision for write-off of property, plant and equipment 427 2,345
- - Write-off of pension liability adjustment due to settlement 118,350 -
(81 ) - (Gain) on disposition of assets (92,457 ) (1,022 )
(3 ) (40 ) Excess tax benefit of options exercised (40 ) (93 )
995 843 Compensation and benefits paid or payable in Class A Common Stock 2,790 2,812
 
Changes in operating assets and liabilities, net of business acquisitions and divestitures:
1,880 (1,896 ) Accounts receivable (4,990 ) (12,082 )
3,189 20,355 Inventories 11,565 7,105
843 2,506 Prepaid expenses and other current assets 592 314
(760 ) (1,245 ) Income taxes prepaid and receivable 9,472 (3,747 )
7,539 (2,682 ) Accounts payable 3,298 (1,677 )
(5,455 ) 988 Accrued liabilities 7,616 6,124
8,070 (8,175 ) Income taxes payable 7,308 2,422
  1,466     (367 ) Other, net   (776 )   455  
  44,785       30,967   Net cash provided by operating activities   34,507       105,269  
 
INVESTING ACTIVITIES
(11,809 ) (6,833 ) Purchases of property, plant and equipment (37,046 ) (24,988 )
(7 ) (1,594 ) Purchased software (161 ) (3,692 )
- - Proceeds from sale of assets - 2,860
  -     -   Proceeds from sale of discontinued operations   150,654     -  
  (11,816 )     (8,427 )

Net cash (used in)/provided by investing activities
  113,447       (25,820 )
 
FINANCING ACTIVITIES
864 13,001 Proceeds from borrowings 46,028 14,386
(3,774 ) (28,488 ) Principal payments on debt (102,128 ) (65,575 )
232 374 Proceeds from options exercised 1,311 789
3 40 Excess tax benefit of options exercised 40 93
  (8,787 )   (4,056 ) Dividends paid   (21,315 )   (15,616 )
  (11,462 )     (19,129 ) Net cash (used in) financing activities   (76,064 )     (65,923 )
 
  (4,728 )   (725 ) Effect of exchange rate changes on cash and cash equivalents   (81 )   (3,373 )
 
16,779 2,686 Increase in cash and cash equivalents 71,809 10,153
- (7,887 ) Change in cash balances of discontinued operations - (9,169 )
  173,939     124,110   Cash and cash equivalents at beginning of period   118,909     117,925  
$ 190,718     $ 118,909   Cash and cash equivalents at end of period $ 190,718     $ 118,909  

Copyright Business Wire 2010

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Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX