Albany International (AIN)

Risks

• A number of industry factors have had, and in future periods could have, an adverse impact on sales, profitability and cash flow in the Company’s MC and AEC segments
• The long-term organic growth prospects of AEC are subject to a number of risks
• The U.S. Government’s Department of Defense (“DoD”) Cybersecurity Maturity Model Certification (“CMMC”) program introduces new and unique risks for DoD contractors
• AEC is subject to significant risks related to the potential manufacture and sale of defective or non-conforming products
• Deterioration of global economic conditions could have an adverse impact on the Company’s business and results of operations
• The Company continues to experience increasing labor, raw material, energy, and logistic costs due to supply chain constraints and inflationary pressures
• Our ability to attract and retain business and employees may depend on our reputation in the marketplace
• Some of the Company’s competitors in the MC segment have the capability to make and sell paper machines and papermaking equipment as well as other engineered fabrics
• Conditions in the paper industry have required, and could further require, the Company to reorganize its operations, which could result in significant expense and could pose risks to the Company’s operations
• Natural disasters at one or more of our facilities could make it difficult for us to meet our supply obligations to our customers
• The Company’s insurance coverage may be inadequate to cover other significant risk exposures
• The Company has significant manufacturing operations outside of the U.S., which could involve many uncertainties
• We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses
• AEC is subject to significant financial risk related to potential quality escapes that could cause customer recalls, or production shortfalls that could cause delays in customer deliveries
• Long-term supply contracts in our Albany Engineered Composites segment pose certain risks
• AEC derives a significant portion of its revenue from contracts with the U.S. Government's Department of Defense, which are subject to unique risks
• The loss of one or more major customers could have a material adverse effect on sales and profitability
• Fluctuations in currency exchange rates could adversely affect the Company’s business, financial condition, and results of operations
• We have a substantial amount of indebtedness. At December 31, 2021, the Company had outstanding long-term debt of $350 million
• The Company is exposed to the risk of increased expense in health-care related costs
• The Company may fail to adequately protect its proprietary technology, which would allow competitors or others to take advantage of its research and development efforts
• The Company is subject to legal proceedings and legal compliance risks
• Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business
• Certain provisions of our Certificate of Incorporation, our Bylaws and Delaware law could hinder, delay or prevent a change in control of us that you might consider favorable, which could also adversely affect the price of our Class A Common Stock
• We may not pay cash dividends on our Common Stock
• If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline
• Future sales of shares by us or our existing stockholders could cause our stock price to decline