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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K
/X/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED: DECEMBER 31, 1996
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM______ TO ______
COMMISSION FILE NUMBER: 0-16214
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ALBANY INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)
DELAWARE 14-0462060
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1373 BROADWAY, ALBANY, NEW YORK 12204
(Address of principal executive
offices) (Zip Code)
Registrant's telephone number, including area code
518-445-2200
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on which
Title of each class registered
CLASS A COMMON STOCK NEW YORK STOCK EXCHANGE AND
($0.001 PAR VALUE) PACIFIC STOCK EXCHANGE
Securities registered pursuant to Section 12(g) of the Act:
NONE
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports,) and (2) has been subject to such
filing requirements for the past 90 days. Yes X No __
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. / /
The aggregate market value of Class A Common Stock held on February 10, 1997
by non-affiliates of the registrant was $586,840,552.
The registrant had 24,885,564 shares of Class A Common Stock and 5,615,563
shares of Class B Common Stock outstanding as of February 10, 1997.
DOCUMENTS INCORPORATED BY REFERENCE PART
Registrant's Annual Report to Shareholders for the year ended December 31, 1996. II
Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on April
16, 1997. III
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PART I
ITEM 1. BUSINESS
Albany International Corp. ("the Company") designs, manufactures and markets
paper machine clothing for each section of the paper machine. It is the largest
producer of paper machine clothing in the world. Paper machine clothing consists
of large continuous belts of custom designed and custom manufactured, engineered
fabrics that are installed on paper machines and carry the paper stock through
each stage of the paper production process. Paper machine clothing is a
consumable product of technologically sophisticated design that is made with
synthetic monofilament and fiber materials. The Registrant produces a
substantial portion of its monofilament requirements. The design and material
composition of paper machine clothing can have a considerable effect on the
quality of paper products produced and the efficiency of the paper machines on
which it is used.
Practically all press fabrics are woven tubular or endless from monofilament
yarns. After weaving, the base press fabric goes to a needling operation where a
thick fiber layer, called a batt, is laid on the base just before passing
through the needling machine. The needles are equipped with tiny barbs that grab
batt fibers locking them into the body of the fabric. After needling, the
fabrics are usually washed, and water is removed. The fabric then is heat set,
treatments may be applied, and it is measured and trimmed.
The Registrant's manufacturing process is similar for forming fabrics and
drying fabrics, except that there is normally no needling operation in the
construction of those fabrics. Monofilament screens are woven on a loom. The
fabrics are seamed to produce an endless loop, and heat stabilized by running
them around two large cylinders under heat and drawn out by tension. After heat
setting, the fabrics are seamed and boxed.
In addition to paper machine clothing, the Registrant manufactures other
engineered fabrics which include fabrics for the non-woven industry, corrugator
belts, filtration media and Rapid Roll Doors-Registered Trademark-. Nomafa is
the operation of the Company which developed high speed, high performance
industrial doors, which grew from the application of the Company's coated fabric
technology to its woven fabrics. Since Nomafa's inception in the early 1980's,
manufacturing operations in North America and Europe have supplied over 60,000
installations worldwide. In November 1996, the Registrant acquired Schieffer
Door Systems, a manufacturer of high-speed, high-performance industrial doors.
Schieffer's technology and leadership position in Germany will significantly
enhance the Registrant's industrial door operations.
INDUSTRY FACTORS
There are approximately 1,200 paper machines in the United States located in
approximately 600 paper mills. It is estimated that, excluding China, there are
about 7,300 paper machines in the world and approximately 1,500, mostly very
small, paper machines in China. Demand for paper machine clothing is tied to the
volume of paper production, which in turn reflects economic growth. According to
published data, world production volumes have grown at an annual rate in excess
of 3% over the last ten years. The Registrant anticipates continued growth for
the long-term in world paper production. The profitability of the paper machine
clothing business has generally been less cyclical than the profitability of the
papermaking industry.
Because the paper industry has been characterized by an evolving but
essentially stable manufacturing technology based on the wet forming papermaking
process, which requires a very large capital investment, the Registrant does not
believe that a commercially feasible substitute technology that does not employ
paper machine clothing is likely to be developed and incorporated into the paper
production process by paper manufacturers in the foreseeable future.
Accordingly, the prospects for continued growth of industry demand for paper
machine clothing appear excellent.
Over the last few years, paper manufacturers have generally reduced the
number of suppliers of paper machine clothing per machine position. This trend
has increased opportunities for market leaders, including the Registrant, to
expand their market share.
2
INTERNATIONAL OPERATIONS
The Registrant maintains wholly-owned manufacturing facilities in Australia,
Brazil, Canada, China, Finland, France, Germany, Great Britain, Holland, Mexico,
Sweden and the United States. In 1996, the Company began construction of a new
manufacturing facility in South Korea. The Registrant has a 50% interest in two
related entities in South Africa which are engaged primarily in the paper
machine clothing business (see Note 1 of Notes to Consolidated Financial
Statements).
The Registrant's geographically diversified operations allow it to serve the
world's paper markets more efficiently and to provide superior technical service
to its customers. The Registrant benefits from the transfer of research and
development product innovations between geographic regions. The worldwide scope
of the Registrant's manufacturing and marketing efforts also limits the impact
on the Company of economic downturns that are limited to a geographic region.
The Registrant's widespread presence subjects it to certain risks, including
controls on foreign exchange and the repatriation of funds. However, the
Registrant has been able to repatriate earnings in excess of working capital
requirements from each of the countries in which it operates without substantial
governmental restrictions and does not foresee any material changes in its
ability to continue to do so in the future. In addition, the Registrant believes
that the risks associated with its operations and locations outside the United
States are those normally associated with doing business in these locations.
MARKETING, CUSTOMERS AND BACKLOG
Paper machine clothing is custom designed for each user depending upon the
type, size and speed of the papermaking machine, the machine section, the grade
of paper being produced, and the quality of the pulp stock used. Technical
expertise, judgment and experience are critical in designing the appropriate
clothing for each position on the machine. As a result, the Registrant employs
highly skilled sales and technical service personnel in 25 countries who work
directly with paper mill operating management. The Registrant's technical
service program in the United States gives its service engineers field access to
the measurement and analysis equipment needed for troubleshooting and
application engineering. Sales, service and technical expenses are major cost
components of the Registrant. The Registrant employs approximately 900 people in
the sales and technical functions combined, many of whom have engineering
degrees or paper mill experience. The Registrant's market leadership position
reflects the Company's commitment to technological innovation.
Typically, the Registrant experiences its highest quarterly sales levels in
the fourth quarter of each fiscal year and its lowest levels in the first
quarter. The Registrant believes that this pattern only partially reflects
seasonal shifts in demand for its products but is more directly related to
purchasing policies of the Registrant's customers.
Payment terms granted to customers reflect general competitive practices.
Terms vary with product and competitive conditions, but generally require
payment within 30 to 90 days, depending on the country of operation.
Historically, bad debts have been insignificant. No single customer, or group of
related customers, accounted for more than 5% of the Registrant's sales of paper
machine clothing in any of the past three years. Management does not believe
that the loss of any one customer would have a material adverse effect on the
Registrant's business.
The Registrant's order backlogs at December 31, 1996 and 1995 were
approximately $502 million and $492 million, respectively. Orders recorded at
December 31, 1996 are expected to be invoiced during the next 12 months.
RESEARCH AND DEVELOPMENT
The Registrant invests heavily in research, new product development and
technical analysis to maintain its leadership in the paper machine clothing
industry. The Registrant's expenditures fall into two
3
primary categories, research and development and technical expenditures.
Research and development expenses totaled $21.9 million in 1996, $19.7 million
in 1995 and $18.4 million in 1994. While most research activity supports
existing products, the Registrant engages in research for new products. New
product research has focused primarily on more sophisticated paper machine
clothing and has resulted in a stream of products such as
DUOTEX-Registered Trademark- and TRIOTEX-TM- forming fabrics, for which the
technology has been licensed to several competitors,
DURAFORM-Registered Trademark- SR, an enhanced single-layer forming fabric,
SEAMTECH-TM-, the patented on-machine-seamed press fabric, DYNATEX-TM-, a unique
multi-layer press fabric, long nip press belts which are essential to water
removal in the press section and Thermonetics-TM-,
BEL-PLANE-Registered Trademark-, AEROLINE-TM- and AEROGRIP-TM- which are dryer
fabrics. Technical expenditures, primarily at the plant level, totaled $26.8
million in 1996, $25.3 million in 1995 and $22.5 million in 1994. Technical
expenditures are focused on design, quality assurance and customer support.
Although the Registrant has focused most of its research and development
efforts on paper machine clothing products and design, the Registrant also has
made progress in developing non-paper machine clothing products. Through its
major research facility in Mansfield, Massachusetts, the Registrant conducts
research under contract for the U.S. government and major corporations. In
addition to its Mansfield facility, the Registrant has four other research and
development centers located at manufacturing locations in Halmstad, Sweden;
Selestat, France; Albany, New York; and Menasha, Wisconsin.
The Registrant holds a number of patents, trademarks and licenses, none of
which are material to the continuation of the Registrant's business. The
Registrant has licensed some of its patents to one or more competitors, mainly
to enhance customer acceptance of the new products. The revenue from such
licenses is less than 1% of consolidated net sales.
COMPETITION
While there are more than 50 paper machine clothing suppliers worldwide,
only six major paper machine clothing companies compete on a global basis.
Market shares vary depending on the country and the type of paper machine
clothing produced. In the paper machine clothing market, the Registrant believes
that it has a market share of approximately 29% in the United States and
Canadian markets, taken together, 18% in the rest of the world and approximately
22% in the world overall. Together, the United States and Canada constitute
approximately 39% of the total world market for paper machine clothing.
Competition is intense in all areas of the Registrant's business. While
price competition is, of course, a factor, the primary bases for competition are
the performance characteristics of the Registrant's products, which are
principally technology-driven, and the quality of customer service. The
Registrant, like its competitors, provides diverse services to customers through
its sales and technical service personnel including: (1) consulting on
performance of the paper machine; (2) consulting on paper machine
configurations, both new and rebuilt; (3) selection and custom manufacture of
the appropriate paper machine clothing; and (4) storing fabrics for delivery to
the user.
EMPLOYEES
The Registrant employs 5,854 persons, of whom approximately 75% are engaged
in manufacturing the Registrant's products. Wages and benefits are competitive
with those of other manufacturers in the geographic areas in which the
Registrant's facilities are located. The Registrant considers its relations with
its employees in general to be excellent.
4
EXECUTIVE OFFICERS OF REGISTRANT
The following table sets forth certain information with respect to the
executive officers of the Registrant:
NAME AGE POSITION
- --------------------------- --- ----------------------------------------------------------------------
J. Spencer Standish 71 Chairman of the Board and Director
Francis L. McKone 62 President, CEO and Director
Frank R. Schmeler 57 Executive Vice President and Chief Operating Officer -- PMC
Edward Walther 53 Executive Vice President -- Management and Technology
Michael C. Nahl 54 Senior Vice President and Chief Financial Officer
J. Weldon Cole 60 Senior Vice President -- Corporate Planning and Business Development
Michel J. Bacon 47 Senior Vice President -- Canada and Pacific
William M. McCarthy 46 Senior Vice President -- Europe
Thomas H. Hagoort 64 General Counsel and Secretary
Richard A. Carlstrom 53 Vice President -- Controller
William H. Dutt 61 Vice President -- Technical
Edward R. Hahn 52 Vice President -- Research and Development
Hugh A. McGlinchey 57 Vice President -- Information Systems
Kenneth C. Pulver 53 Vice President -- Corporate Communications
Ervin D. Johnson 53 Treasurer
Charles J. Silva, Jr. 37 Assistant General Counsel and Assistant Secretary
J. SPENCER STANDISH joined the Registrant in 1952. He has served the
Registrant as Chairman of the Board since 1984, Vice Chairman from 1976 to 1984,
Executive Vice President from 1974 to 1976, and Vice President from 1972 to
1974. He has been a Director of the Registrant since 1958. He is a director of
Berkshire Life Insurance Company.
FRANCIS L. MCKONE joined the Registrant in 1964. He has served the
Registrant as Chief Executive Officer since 1993, President since 1984,
Executive Vice President from 1983 to 1984, Group Vice President--Papermaking
Products Group from 1979 to 1983, and prior to 1979 as a Vice President of the
Registrant and Division President--Papermaking Products U.S. He has been a
Director of the Registrant since 1983.
FRANK R. SCHMELER joined the Registrant in 1964. He has served the
Registrant as Executive Vice President and Chief Operating Officer since 1997
and as Senior Vice President from 1988 to 1997, as Vice President and General
Manager of the Felt Division from 1984 to 1988, as Division Vice President and
General Manager, Albany International Canada from 1978 to 1984 and as Vice
President of Marketing, Albany International Canada from 1976 to 1978.
EDWARD WALTHER joined the Registrant in 1994. He has served the Registrant
as Executive Vice President since 1997 and as Senior Vice President from 1995 to
1997 and as Vice President and General Manager--Continental Europe since 1994.
Prior to joining the Registrant, he held various marketing and managerial
positions with a company in the paper machine clothing business.
MICHAEL C. NAHL joined the Registrant in 1981. He has served the Registrant
as Senior Vice President and Chief Financial Officer since 1983 and prior to
1983 as Group Vice President.
J. WELDON COLE joined the Registrant as Senior Vice President on January 1,
1995. From 1988 until December 1994 he held various management positions, most
recently as President and Director of Beloit Corporation, an international
manufacturer of pulp and papermaking equipment.
5
MICHEL J. BACON joined the Registrant in 1978. He has served the Registrant
as Senior Vice President since 1996 and as Vice President and General Manager of
Albany International Canada from 1991 to 1996, as Vice President of Operations,
Albany International Canada Press Division from 1989 to 1991 and as Vice
President of Marketing, Albany International Canada from 1987 to 1989.
WILLIAM M. MCCARTHY joined the Registrant in 1977. He has served the
Registrant as Senior Vice President since 1997 and since 1991 has held various
positions for Press Fabrics U.S. including Vice President and General Manager,
Vice President--Marketing and Technical Director. From 1988 to 1991 he was
Technical Director for Continental Europe-Press Fabrics.
THOMAS H. HAGOORT joined the Registrant in 1991. He has served the
Registrant as General Counsel and Secretary since 1997 and as General Counsel
from 1991 to 1997. From 1968 until December 31, 1990 he was a partner in Cleary,
Gottlieb, Steen and Hamilton, an international law firm with headquarters in New
York City, to which he became of counsel on January 1, 1991.
RICHARD A. CARLSTROM joined the Registrant in 1972. He has served the
Registrant as Vice President-- Controller since 1993, as Controller since 1980,
as Controller of a U.S. division from 1975 to 1980, and prior to 1975 as
Financial Controller of Albany International Pty. in Australia.
WILLIAM H. DUTT joined the Registrant in 1958. He has served the Registrant
since 1983 as Vice President--Technical, and prior to 1983 he served in various
technical, engineering, and research capacities including Director of Research
and Development and Vice President--Operations for Albany Felt.
EDWARD R. HAHN joined the Registrant in 1971. He has served the Registrant
since 1995 as Vice President--Research and Development and Executive Director of
Albany International Research Company, as Vice President and General Manager of
Press Fabrics U.S. from 1990 to 1995, as Vice President of Euroscan Press and
Dryer Divisions from 1987 to 1990 and as Vice President of Operations for
Nordiskafilt from 1986 to 1987.
HUGH A. MCGLINCHEY joined the Registrant in 1991. He has served the
Registrant as Vice President-- Information Systems since 1993 and from 1991 to
1993 as Director--Information Systems. Prior to 1991 he served as
Director--Corporate Information and Communications Systems for Avery Dennison
Corporation.
KENNETH C. PULVER joined the Registrant in 1968. He has served the
Registrant as Vice President-- Corporate Communications since 1997 and as Vice
President of Operations for Primaloft from 1992 to 1997. From 1984 to 1992 he
served in various marketing positions with Albany Engineered Systems.
ERVIN D. JOHNSON joined the Registrant in 1974. He has served the Registrant
as Treasurer since 1996 and as Controller of Press Fabrics U.S. from 1991 to
1996. Prior to 1991 he served in various financial positions, including
Controller of Appleton Wire Division and Operations Manager for Nomafa Door
Division.
CHARLES J. SILVA, JR. joined the Registrant in 1994. He has served the
Registrant as Assistant General Counsel and Assistant Secretary since 1996 and
as Assistant General Counsel from 1994 to 1996. Prior to 1994, he was an
associate in Cleary, Gottlieb, Steen and Hamilton, an international law firm
with headquarters in New York City.
RAW MATERIALS AND INVENTORY
Primary raw materials for the Registrant's products are synthetic fibers,
which are generally available from a number of suppliers. The Registrant,
therefore, is not required to maintain inventories in excess of its current
needs to assure availability. In addition, the Registrant manufactures
monofilament, a basic raw material for all types of paper machine clothing, at
its facility in Homer, New York, which supplies approximately 40% of its
world-wide monofilament requirements. This manufacturing capability assists the
Registrant in its negotiations with monofilament producers for the balance of
its supply requirements, and enhances the ability of the Registrant to develop
proprietary products.
6
The Registrant believes it is in compliance with all Federal, State and
local provisions which have been enacted or adopted regarding the discharge of
materials into the environment, or otherwise relating to the protection of the
environment, and does not have knowledge of environmental regulations which do
or might have a material effect on future capital expenditures, earnings, or
competitive position.
The Registrant is incorporated under the laws of the State of Delaware and
is the successor to a New York corporation which was originally incorporated in
1895 and which was merged into the Registrant in August 1987 solely for the
purpose of changing the domicile of the corporation. Upon such merger, each
outstanding share of Class B Common Stock of the predecessor New York
corporation was changed into one share of Class B Common Stock of the
Registrant. References to the Registrant that relate to any time prior to the
August 1987 merger should be understood to refer to the predecessor New York
corporation.
ITEM 2. PROPERTIES
The Registrant's principal manufacturing facilities are located in the
United States, Canada, Europe, Brazil, Mexico, Australia and China. The
aggregate square footage of the Registrant's facilities in the United States and
Canada is approximately 2,485,000, of which 2,408,000 square feet are owned and
77,000 square feet are leased. The Registrant's facilities located outside the
United States and Canada comprise approximately 2,725,000 square feet, of which
2,615,000 square feet are owned and 110,000 square feet are leased. The
Registrant considers these facilities to be in good condition and suitable for
their purpose. The capacity associated with these facilities is adequate to meet
production levels required and anticipated through 1997. The Registrant's
expected 1997 capital expenditures, including the new facility in South Korea
but excluding new operating leases, of about $60 million will provide sufficient
capacity for anticipated growth.
The Registrant believes it has modern, efficient production equipment. In
the last five years, it has spent $183 million on new plants and equipment or
upgrading existing facilities.
ITEM 3. LEGAL PROCEEDINGS
There are no material pending legal proceedings, other than ordinary routine
litigation incidental to the business.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted during the fourth quarter of 1996 to a vote
of security holders.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
"Stock and Shareholders" and "Quarterly Financial Data" on page 26 of the
Annual Report are incorporated herein by reference.
Restrictions on dividends and other distributions are described in Note 6,
on pages 13 and 14 of the Annual Report. Such description is incorporated herein
by reference.
ITEM 6. SELECTED FINANCIAL DATA
"Eleven Year Summary" on pages 24 and 25 of the Annual Report is
incorporated herein by reference.
7
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
"Review of Operations" on pages 21 to 23 of the Annual Report is
incorporated herein by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The following consolidated financial statements of the Registrant and its
subsidiaries, included on pages 7 to 20 in the Annual Report, are incorporated
herein by reference:
Consolidated Statements of Income and Retained Earnings--years ended
December 31, 1996, 1995 and 1994
Consolidated Balance Sheets--December 31, 1996 and 1995
Consolidated Statements of Cash Flows--years ended December 31, 1996, 1995
and 1994
Notes to Consolidated Financial Statements
Report of Independent Accountants
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
a) DIRECTORS. The information set out in the section captioned "Election of
Directors" of the Proxy Statement is incorporated herein by reference.
b) EXECUTIVE OFFICERS OF REGISTRANT. Information about the officers of the
Registrant is set forth in Item 1 above.
ITEM 11. EXECUTIVE COMPENSATION
The information set forth in the sections of the Proxy Statement captioned
"Executive Compensation", "Summary Compensation Table", "Option/SAR Grants in
Last Fiscal Year", "Option/SAR Exercises during 1996 and Year-End Values",
"Pension Plan Table", "Compensation and Stock Option Committee Report on
Executive Compensation", "Compensation and Stock Option Committee Interlocks and
Insider Participation", "Stock Performance Graph", and "Directors' Fees" is
incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The information set out in the section captioned "Share Ownership" of the
Proxy Statement is incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None.
8
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENTS SCHEDULE AND REPORTS ON FORM 8-K
a)(1) FINANCIAL STATEMENTS. The consolidated financial statements included
in the Annual Report are incorporated by reference in Item 8.
a)(2) SCHEDULE. The following consolidated financial statements schedule for
each of the three years in the period ended December 31, 1996 is included
pursuant to Item 14(d):
Report of Independent Accountants on Financial Statements Schedule
Schedule II--Valuation and Qualifying Accounts
a)(3)(b) No reports on Form 8-K were filed during the quarter ended December
31, 1996.
(3) EXHIBITS
3(a) -- Certificate of Incorporation of Registrant. (3)
3(b) -- Bylaws of Registrant. (1)
4(a) -- Article IV of Certificate of Incorporation of Registrant (included in
Exhibit 3(a)).
4(b) -- Specimen Stock Certificate for Class A Common Stock. (1)
MORGAN CREDIT AGREEMENT
10(i)(i) -- Amended and restated Credit Agreement, dated as of February 29, 1996, among
the Registrant, certain banks listed therein, and Morgan Guaranty Trust
Company of New York, as Agent. (8)
STOCK OPTIONS
10(m)(i) -- Form of Stock Option Agreement, dated as of August 1, 1983, between the
Registrant and each of five employees, together with schedule showing the
names of such employees and the material differences among the Stock Option
Agreements with such employees. (1)
10(m)(ii) -- Form of Amendment of Stock Option Agreement, dated as of July 1, 1987,
between the Registrant and each of the five employees identified in the
schedule referred to as Exhibit 10(m)(i). (1)
10(m)(iii) -- 1988 Stock Option Plan. (2)
10(m)(iv) -- 1992 Stock Option Plan (6)
EXECUTIVE COMPENSATION
10(n) -- Pension Equalization Plan adopted April 16, 1986, naming two current
executive officers and one former executive officer of Registrant as
"Participants" thereunder. (1)
10(n)(i) -- Supplemental Executive Retirement Plan. (7)
10(o)(i) -- Form of Executive Deferred Compensation Plan adopted September 1, 1985, and
Forms of Election Agreement. (1)
10(o)(ii) -- Form of Directors' Deferred Compensation Plan adopted September 1, 1985, and
Form of Election Agreement. (1)
10(o)(iii) -- Executive Deferred Compensation Plan. (2)
10(o)(iv) -- Directors' Deferred Compensation Plan. (2)
10(o)(v) -- Deferred Compensation Plan of Albany International Corp. (8)
10(o)(vi) -- Centennial Deferred Compensation Plan. (8)
9
(3) EXHIBITS
OTHER AGREEMENTS
10(q) -- Merchandise Orders Purchase and Sale Agreement, dated as of January 28,
1991, among the Registrant, CXC Incorporated and Citicorp North America,
Inc., as Agent. (4)
10(q)(i) -- Amendment No. 1 to Merchandise Orders Purchase and Sale Agreement, dated as
of April 26, 1991, among the Registrant, CXC Incorporated and Citicorp North
America, Inc., as Agent, amending the Merchandise Orders Purchase and Sale
Agreement referred to as Exhibit 10(q). (5)
11 -- Schedule of Computation of Primary and Fully Diluted Net Income Per Share.
13 -- Annual Report to Security Holders for the year ended December 31, 1996.
21 -- Subsidiaries of Registrant.
23 -- Consent of Coopers & Lybrand L.L.P.
24 -- Powers of Attorney.
27 -- Financial Data Schedule.
All other schedules and exhibits are not required or are inapplicable and,
therefore, have been omitted.
- ------------------------
(1) Previously filed as an Exhibit to the Company's Registration Statement on
Form S-1, No. 33-16254, as amended, declared effective by the Securities and
Exchange Commission on September 30, 1987, which previously-filed Exhibit is
incorporated by reference herein.
(2) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated August 8, 1988, which previously-filed Exhibit is incorporated by
reference herein.
(3) Previously filed as an Exhibit to the Registrant's Registration Statement on
Form 8-A, File No. 1-10026, declared effective by the Securities and
Exchange Commission on August 26, 1988 (as to The Pacific Stock Exchange,
Inc.), and on September 7, 1988 (as to The New York Stock Exchange, Inc.),
which previously-filed Exhibit is incorporated by reference herein.
(4) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated April 8, 1991, which previously-filed Exhibit is incorporated by
reference herein.
(5) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated May 28, 1991, which previously-filed Exhibit is incorporated by
reference herein.
(6) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated January 18, 1993, which previously-filed Exhibit is incorporated
by reference herein.
(7) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated June 30, 1994, which previously-filed Exhibit is incorporated by
reference herein.
(8) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated March 15, 1996, which previously-filed Exhibit is incorporated by
reference herein.
10
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.
SIGNATURE TITLE DATE
- ------------------------------ -------------------------- -------------------
*
- ------------------------------ Chairman of the Board and March 14, 1997
(J. Spencer Standish) Director
* President and Director
- ------------------------------ (Chief Executive March 14, 1997
(Francis L. McKone) Officer)
Senior Vice President and
/s/ MICHAEL C. NAHL Chief Financial Officer
- ------------------------------ (Principal Financial March 14, 1997
(Michael C. Nahl) Officer)
* Vice President-Controller
- ------------------------------ (Principal Accounting March 14, 1997
(Richard A. Carlstrom) Officer)
*
- ------------------------------ Director March 14, 1997
(Charles B. Buchanan)
*
- ------------------------------ Director March 14, 1997
(Thomas R. Beecher, Jr.)
*
- ------------------------------ Director March 14, 1997
(Stanley I. Landgraf)
*
- ------------------------------ Director March 14, 1997
(Dr. Joseph G. Morone)
*
- ------------------------------ Director March 14, 1997
(Allan Stenshamn)
*
- ------------------------------ Director March 14, 1997
(Barbara P. Wright)
/s/ MICHAEL C. NAHL
-----------------------------------------
Michael C. Nahl
*By Attorney-in-fact
11
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized on the 14th day of
March, 1997.
ALBANY INTERNATIONAL CORP.
by /S/MICHAEL C. NAHL
------------------------------------
Michael C. Nahl
Principal Financial Officer
Senior Vice President
and Chief Financial Officer
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REPORT OF INDEPENDENT ACCOUNTANTS
ON FINANCIAL STATEMENTS SCHEDULE
To The Shareholders and Board of Directors
Albany International Corp.
Our report on the consolidated financial statements of Albany International
Corp. has been incorporated by reference in this form 10-K from page 7 of the
1996 Annual Report to Shareholders of Albany International Corp. In connection
with our audits of such financial statements, we have also audited the related
financial statements schedule listed in the index on page 9 of this Form 10-K.
In our opinion, the financial statements schedule referred to above, when
considered in relation to the basic financial statements taken as a whole,
present fairly, in all material respects, the information required to be
included therein.
/s/ Coopers & Lybrand L.L.P.
Albany, New York
January 23, 1997
SCHEDULE II
ALBANY INTERNATIONAL CORP. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
(DOLLARS IN THOUSANDS)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
- ---------------------------------------------------------- ----------- ----------- --------------- -------------
BALANCE AT ADDITIONS
BEGINNING CHARGED TO BALANCE AT
DESCRIPTION OF PERIOD EXPENSE DEDUCTIONS (A) END OF PERIOD
- ---------------------------------------------------------- ----------- ----------- --------------- -------------
Allowance for doubtful accounts
Year ended December 31:
1996............................................ $ 5,010 $ 1,036 $ 1,084 $ 4,962
1995............................................ $ 4,618 $ 963 $ 571 $ 5,010
1994............................................ $ 4,579 $ 597 $ 558 $ 4,618
- ------------------------
(A) Includes accounts written off as uncollectible, recoveries and the effect of
currency exchange rates.