Displaying items by tag: Xerium Technologies

2013 Xerium Logo CMYK 300dpiXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, recently received its 500th order for its proprietary SMART® Technology system. The globally successful and patented machine automation system continues rapid growth on traditional paper, paperboard, and tissue machines but also has now been successfully applied on numerous other nipped applications in nonwovens and the building products industries. The latest generation of SMART Technology dynamically measures and displays: machine direction nip width, machine direction pressure profile, and cross machine direction pressure profile. It also includes enhanced connectivity software for mill computer systems and supports multi-nip roll positions for unprecedented simultaneous analysis. SMART Technology has been equally successful across all paper grades, including tissue, and even on the most demanding shoe press applications. In addition, SMART Technology is now being successfully applied on suction roll applications which customers have long been requesting.

More information about SMART Technology is available at http://www.xerium.com/markets-products/pulp,-paper-tissue/smart-technology.aspx

"SMART Technology continues to provide our customers with critical information they need to instantly monitor, adjust, and troubleshoot their machines which historically was a static process requiring costly machine downtime," said Mr. Bill Butterfield, EVP and CTO of Xerium. "Xerium has developed SMART technology to benefit its customers by lowering their operational cost while improving operational efficiency. Together we are always discovering more potential for SMART Technology applications and are excited at the way our customers have embraced this innovative approach to machine automation."

ABOUT XERIUM

Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. Xerium has 27 manufacturing facilities in 12 countries around the world and employs approximately 3,200 employees.

Xerium Technologies, Inc.
         Steve Cole
         Director - Global Marketing
         001-919-526-1447
         This email address is being protected from spambots. You need JavaScript enabled to view it.

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2013 Xerium Logo CMYK 300dpiXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services announced its Q3 2014 results.

Third-Quarter Financial Highlights

  • Adjusted EBITDA for Q3 2014 was $31.5 million or 22.7% of net sales. This was an increase of 15.8% compared to $27.2 million in Q3 2013. Trailing Twelve Month ("TTM") Adjusted EBITDA at September 30, 2014 was $110.7 million, up 6.5% compared to $103.9 million of TTM Adjusted EBITDA at September 30, 2013. See "Non-GAAP Financial Measures" below.
     
  • Q3 2014 Year-over-Year Adjusted EBITDA improvement (constant currency) was split roughly 50/50 between sales growth and operating efficiencies. Increased sales led to $1.3 million of additional Adjusted EBITDA and operating efficiencies led to $1.1 million of additional Adjusted EBITDA. See "Segment Information" and "Non-GAAP Financial Measures" below.
     
  • Net sales for Q3 2014, excluding currency effects, improved 3.4% to $138.9 million compared to $134.2 million in Q3 2013. See "Segment Information" and "Non-GAAP Financial Measures" below. Rolls sales, mechanical services sales and emerging market PMC sales outperformed graphical paper and mature market sales declines.
     
  • Q3 2014 loss per share was $(1.32) per share versus Q3 2013 earnings per share of $0.14 per share. The decrease of $(1.46) per share was primarily driven by a Brazilian tax charge of $(1.56) per share, partially offset by increased income from operations and the change in FX gains/(losses) in Q3 2014 from Q3 2013. See "Adjusted Earnings Per Share" below for further discussion.
     
  • Excluding non-recurring items such as the one-time settlement for the Brazilian tax matter and restructuring costs, earnings per share were $0.43 in Q3 2014, compared to $0.36 in Q3 2013 and $1.73 for the trailing twelve months ended September 30, 2014, compared to $1.24 for the trailing twelve months ended September 30, 2013. See "Adjusted Earnings Per Share" below for further discussion.
     
  • Q3 2014 gross profit was $55.5 million, or 40.0% of net sales, compared to $53.4 million, or 39.5% of net sales in Q3 2013. Machine Clothing gross margin improved to 40.9% in Q3 2014 from 40.6% in Q3 2013, and roll covers gross margin improved to 38.5% in Q3 2014, from a gross margin of 37.5% in Q3 2013.
     
  • Selling, general and administrative and research and development (SG&A) expenses were $34.2 million, or 24.7% of net sales, in Q3 2014, down from Q3 2013 SG&A expenses of $34.9 million, or 25.8% of net sales.

CEO Comments

"Xerium performed well in the quarter, with sales growth globally and significant margin expansion," said Harold Bevis, President and CEO of Xerium Technologies, Inc. "The transforming global pulp and paper market is volatile, but many opportunities exist, and Xerium is pursuing these opportunities aggressively. Part and parcel to pursuing these opportunities are the re-alignment of our global operational footprint and product lineup. The expansion of Xerium's large plants in Gloggnitz, Austria; Asia; and Ruston, La. were completed in the quarter, while large-scale construction projects are still underway in Ba Cheng, China; Corlu, Turkey; and Piracicaba, Brazil. Xerium is orienting its cost structure more firmly towards low-cost country production. This balance was evident in the quarter with year-over-year improvement roughly split equally between sales growth and cost reductions. The quarter was on track with Xerium's stated improvement framework."

Constant currency net sales grew by 3.4%, out-pacing total annual market growth of 1-2%

Healthy sales growth in North America of 8.7%, Asia of 4.3% and South America of 12.4% contributed to positive growth in the quarter, while sales in Europe declined by 4.9%, primarily driven by weakness in the Nordic region and the challenging demand in newsprint and printing and writing grades of paper. See "Segment Information" and "Non-GAAP Financial Measures" below.

Sales growth programs remain on track

Xerium is repositioning its sales growth profile. Specific measurable programs are aimed at profitable growth in rolls, mechanical services, SMART machine automation, emerging markets, and new products. Some programs require capital investment and some do not.

Cost reduction programs remain on track

Xerium is repositioning its cost profile towards low-cost countries and low-cost operations. We have nine primary cost programs underway, including plant closures and operational excellence programs directed at waste, quality, productivity, procurement initiatives and a lean SG&A program. As a result of these efforts, total cost savings for Q3 2014 were $6.9 million, up $0.5 million from Q2 2014. Cost savings for the full year of 2014 are estimated to be over $25 million, which would represent a total of $49 million in cost reduction savings in 2013 and 2014. In Q3 2014, we announced the closure of the Joao Pessoa, Brazil facility and consolidation into two other Xerium plants. That work is fully underway.

CFO Comments

EVP and Chief Financial Officer, Cliff Pietrafitta said: "Q3 2014 constant currency net sales were 3.4% above Q3 2013. Constant currency rolls net sales increased by 12.6% from Q3 2013, primarily driven by an increase of 23.7% in North America, an increase of 19.4% in South America and an increase of 14.7% in Asia. These increases were partially offset by a decline of (4.3)% in Europe. Constant currency machine clothing sales decreased slightly by (1.5)% from Q3 2013, primarily driven by a decrease of (5.2)% in Europe and a decrease of (4.1)% in North America. These decreases were partially offset by increases of 11.4% in South America and 1.3% in Asia." See "Segment Information" and "Non-GAAP Financial Measures" below for further discussion.

Income from operations in Q3 2014 increased by $2.3 million, due to increased net sales and gross margins and reductions in SG&A, partially offset by increased restructuring expenses. Improved gross margins and reductions in SG&A were driven primarily by our restructuring initiatives and operating efficiency programs. Adjusted EBITDA in Q3 2014 was $31.5 million, or 22.7% of net sales, and was 15.8% above Q3 2013 Adjusted EBITDA of $27.2 million, or 20.2% of net sales. See "Non-GAAP Financial Measures" below.

Q3 2014 was a successful quarter related to cost-out actions. The third quarter included cost out savings of $6.9 million and we expect cost out savings for the full year to be over $25 million. The Company spent approximately $18.6 million of cash on capital expenditures and restructuring costs in Q3 2014. For the full year, we expect to spend approximately $70 million in both of these areas. In addition, in 2014, we have more spending related to longer payback projects (such as the Ba Cheng China machine clothing plant), which will not result in incremental savings or earnings in 2014. Cost-out and restructuring savings initiatives are the centerpiece of Xerium's 2014 business plan, and we still expect Adjusted EBITDA to come in at approximately $116 - 120 million, assuming foreign exchange rate assumptions and stability in market demand.

As of Q3 2014, we had an aggregate of $41.8 million available for additional borrowings under our Credit Facility and smaller lines of credit and our cash balances totaled $19.8 million. YTD 2014 free cash flow (defined as cash-flow from operations less capital expenditures) decreased $(47.2) million to $(32.3) million from $14.9 million, primarily as a result of the tax payment of $25.0 million made in August of 2014 to settle a Brazilian tax assessment and $18.1 million of increased capital expenditures from 2013 to 2014.

Capital expenditures and cash restructuring payments in Q3 2014 totaled $11.2 million and $7.4 million, respectively. Capital expenditures primarily related to longer term payback projects, such as the new plant in Ba Cheng, China. Restructuring payments primarily related to headcount reductions and the closure of the João Pessoa, Heidenheim, France and Spain facilities.

Our 2014 restructuring initiatives remain on track with the recent announcement of the closing of a sixth plant in João Pessoa, Brazil. This large-scale restructuring program is a multi-year endeavor which has included 6 plant closures and the start up of a new machine clothing plant in China and a new rolls plant in Turkey.

Trade working capital increased to $141.9 million in Q3 2014 from $141.3 million in Q4 2013. This increase was primarily the result of an increase of $2.5 million in inventory, primarily due to higher levels of work in progress to support higher sales. Partially offsetting this increase was an increase in accounts payable of $1.9 million, due to improvement in negotiated payment terms in Q3 2014 and favorable currency effects. See "Trade Working Capital Information" and "Non-GAAP Financial Measures" below for further discussion.

Net debt (which is defined as total debt less cash) increased to $455.5 million in Q3 2014 from $437.0 million in Q2 2014, primarily as a result of $30 million of new borrowings under the term loan to settle the Brazilian tax assessment. However, our net debt leverage ratio remained at 4.1x in Q3 2014 compared to 4.1x in Q2 2014 as a result of higher trailing twelve month Adjusted EBITDA.

Our effective income tax rate for Q3 2014 was 334% compared to 59.3% in Q3 2013.  Excluding the effects of restructuring and the settlement of a tax assessment in Brazil, our effective tax rate was 38.0%. In Q3 2014, we incurred a one-time charge of $25 million to settle a tax assessment in Brazil. See "Effective Tax Rate" and "Non-GAAP Financial Measures" below for further discussion.

As disclosed during the prior quarter, we had been actively litigating a Brazilian tax case since Q4 2011. In Q3 2014 we chose to participate in a tax amnesty program offered by the Brazilian Revenue Department that was open to taxpayers until August 25, 2014. By electing to pay a lump sum amount, we received a reduction of 100% of the penalties and a 45% reduction of interest accrued on our tax assessment relating to tax years 2006 through 2010. As a result of entering into the amnesty program, we withdrew our appeal of the Brazilian tax case, closing out a matter that relates back to a 2005 transaction. Because tax amnesty and voluntary disclosure programs were open for tax years beyond the time period of our particular assessment, we also included in our payment to the Brazilian government amounts relating to tax years 2011 through 2013, and we adjusted tax payments related to the 2014 tax year, all of which corresponded to the same tax deductions under review in our assessment for tax years 2006 through 2010. In settling the assessed and unassessed tax debts with the Brazilian government for 2006 through 2014, we paid principal and interest totaling $18.3 million and $6.7 million, respectively. We borrowed an additional $30.0 million under our Credit Facility primarily to fund this tax settlement payment.

For the full release with tables click here....>

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Presenting at Imperial Capital Global Opportunities Conference

2013 Xerium Logo CMYK 300dpiXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, today announced that it will be presenting at the Imperial Capital Global Opportunities Conference in New York and conducting one-on-one meetings with interested investors. Xerium will use the forum to provide further details on its strategy for long-term growth and plans to pay down debt. Harold Bevis, President and CEO, Cliff Pietrafitta, Executive Vice President and CFO, and Dave Pretty, President of North America and Europe, will be the company's attendees and will be presenting at the conference at 9:30 am ET on Thursday, September 18, 2014.

A webcast of the presentation management will provide will also be available on the company's investor relations website. Interested parties should click on the webcast link above the event titled "Xerium Technologies at Imperial Capital Global Opportunities Conference" on the company's investor relations homepage at www.xerium.com/investorrelations. From there, they will be taken to an Event Details page where they can register for and access the webcast by clicking on the link below "Webcast Presentation." Interested parties may also go directly to the webcast registration page for the conference by going to wsw.com/webcast/imperial16/xrm.

A replay of the presentation and a copy of the materials used in the presentation will also be made available by clicking on the webcast link above the event titled "Xerium Technologies at Imperial Capital Global Opportunities Conference" on the company's investor relations homepage at www.xerium.com/investorrelations or by clicking on the "Investor Presentations" tab on the left hand side of the investor relations homepage.

The company will also be available to meet one-on-one with investors the day of the presentation. If you have interest in one of these sessions please contact Orlagh Vagnoni at (212) 351-9721 or at This email address is being protected from spambots. You need JavaScript enabled to view it..

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Wednesday, 20 August 2014 07:53

Xerium Announces New Plant in Corlu, Turkey

Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, announced a new rolls and mechanical services facility located in Çorlu, Turkey. The facility is under construction and the equipment is already on hand. It will be state-of-the art and is expected to be in production Q1 2015. From this geographic location, Xerium will provide its full suite of patented performance-enhancing roll solutions to customers in the surrounding region. Xerium will perform roll grinding, roll recovering and mechanical services on site. Xerium is also increasing its field sales and service staff for the region for machine clothing, roll services, mechanical services and machine automation through its SMART® Roll sensor solutions.

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Dave Pretty, Xerium's President of North America and Europe, and Recep Agci, of Modern Karton, Istanbul were instrumental in making this new greenfield plant a reality.

Xerium's facility will be the first major rolls and service facility established in Turkey, by any of the industry's major global suppliers. From this location, Xerium will be able to provide regional customers with dramatically quicker and more cost effective service. Importantly, these products and services will be delivered through a local workforce familiar and respectful of local customs. The plant will be co-located on the grounds of Modern Karton, one of the largest and most integrated producers in the region. The required investment and startup costs of this new plant are included within the company's previous guidance for spending in 2014.

"Xerium is honored to be the first major global competitor to build a plant in the region and proud of its relationship with Eren Holding and Modern Karton. We look forward to delivering superior mechanical services, roll covering capabilities, and machine automation services to the region," said Harold Bevis, Xerium's President and CEO. "This area of Europe is healthy and growing in the industries we serve. We believe this commitment will bring value to the area for all three of Xerium's product categories -- roll coverings, mechanical services and machine clothing.

"Xerium is repositioning its business for the future by executing its dual-pronged long term strategy of achieving Commercial Success and Cost Leadership," continued Mr. Bevis. "Commercial Success is about being #1 or #2 in each of its markets and being at least on par with the marketshare leaders in each category. Xerium is committed to growing with the market leading customers globally. Currently, we have 27 specific growth initiatives to implement this strategy and this new plant in Turkey is one of those initiatives. The company's goal is to target specific customers and specific machines where the company's value-added offerings are a natural fit."

Commenting on Cost Leadership, Mr. Bevis said "Xerium is equally committed to achieving Cost Leadership in its operational structure. Continuous improvement and increased value are a given in the industries the company serves and it is imperative that the company be set up correctly to deliver against that expectation. The company has 9 specific programs to achieve this objective. Cost Leadership is more than just closing old, high-cost plants with old equipment that are in awkward predicaments given forward expectations. It is more than just 'cost out.' We are also making sure that we have the right set-up to deliver best value and continuous improvement.

"Xerium's decision to build a greenfield rolls and mechanical service plant in Turkey is a manifestation of both elements of the company's long-term strategy - Commercial Success and Cost Leadership." said Bevis. "Xerium is excited and honored to commit its money, time, people, patents, and 202 years of global trade secrets to help customers in Turkey and Southeast Europe win in their markets."

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Enervent-picXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, recently launched EnerVent roll venting technology for tissue machines. EnerVent, which is patent pending, utilizes an innovative combination of roll grooving geometry which provides increased nip dewatering with softer, wider nips. It is specially engineered for rubber covers applied to tissue suction pressure roll positions and is already reducing energy costs and increasing machine speeds for existing tissue producers. EnerVent cover venting allows customers to utilize softer rubber cover designs such as Xtreme TS which improves overall pressure uniformity with the Yankee dryer. Learn more about EnerVent technology along with actual customer case studies at http://www.xerium.com/news/xerium-news.aspx.

"EnerVent is yet another example of our commitment to helping customers become more energy efficient in a globally competitive market," said Mr. Bill Butterfield, EVP and CTO of Xerium. "We are excited to see tissue makers already achieving significant savings at their mills through the application of this innovative roll venting concept in combination with Xerium's unique cover material technology."

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Monday, 28 July 2014 08:23

Xerium Investor Update

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Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, has issued an investor update.

Q2 2014 Financial Results

The company plans to file its results for Q2 2014 after the close of trading on Tuesday, August 5, 2014.

Q2 2014 Presentation and Conference Call

The company plans to make a public presentation and conduct a public conference call regarding its results on August 6, 2014 at 9:00 am ET.

Conference call details:  
Domestic Dial-In: +1-866-270-6057
International Dial-In: +1-617-213-8891
Passcode: 41877256
Webcast & Slide Presentation: www.xerium.com/investorrelations

To participate on the call, please dial in at least 10 minutes prior to the scheduled start. 

Presentation viewing details:

A live audio webcast and replay of the call, in addition to the materials used in the presentation, will be available in the investor relations section of the company's website at www.xerium.com/investorrelations. Please click on the earnings call event link that will appear on the IR homepage.

Jefferies 2014 Global Industrials Conference

Xerium will be presenting at the Jefferies 2014 Global Industrials Conference in New York and conducting one-on-one meetings with interested investors. Harold Bevis, President and CEO, Cliff Pietrafitta, Executive Vice President and CFO, and Dave Pretty, President of North America and Europe, will be the company's attendees and will be presenting at the conference at 9:00 am ET on Thursday, August 14, 2014.

This presentation will also be webcast live at www.xerium.com/investorrelations. Please click on the event link that will appear on the IR homepage. A replay of the presentation and a copy of the materials used in the presentation will also be available on Xerium's investor relations website. 

The company will also be available to meet one-on-one with investors the day before and the day of the presentation. If you have interest in one of these sessions please contact Isabel Zakoscielny at This email address is being protected from spambots. You need JavaScript enabled to view it.

Q2 2014 Preliminary Results and Full Year 2014 Remain on Forecast

Q2 2014 preliminary results indicate the company's performance was in-line with previous guidance. Sales for Q2 2014 were approximately $139.7 million, which was an increase of 1.0% over Q2 2013 and an increase of 4.7% over Q1 2014. Adjusted EBITDA for Q2 2014 was approximately $29.4 million and net income for the quarter was approximately $0.8 million. See "Non-GAAP Financial Measures" below.

These results are preliminary and subject to change upon completion and review of Xerium's 2014 second quarter financial statements in conjunction with the company's 2014 second quarter Form 10-Q filing.

Non-GAAP Financial Measures

This press release includes measures of performance that differ from the company's financial results as reported under generally accepted accounting principles ("GAAP"). The company uses supplementary non-GAAP measures, including EBITDA, Adjusted EBITDA, currency effects on Net Sales and Trade Working Capital to assist in evaluating its liquidity and financial performance. EBITDA and Adjusted EBITDA are specifically used in evaluating the ability to service indebtedness and to fund ongoing capital expenditures. Neither Adjusted EBITDA nor EBITDA should be considered in isolation or as a substitute for income (loss) or cash flows from operations (as determined in accordance with GAAP).

For additional information regarding non-GAAP financial measures and a reconciliation of such measures to the most comparable financial measures under GAAP, please see our Selected Financial Data below.

ABOUT XERIUM TECHNOLOGIES

Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 12 countries around the world, Xerium has approximately 3,200 employees.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. The words "believe," "estimate," "expect," "intend," "anticipate," "goals," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements are not guarantees of future performance, and actual results may vary materially from the results expressed or implied in such statements. Differences may result from actions taken by us, as well as from risks and uncertainties beyond our control.These risks and uncertainties include the following items: (1) our final sales, net income and Adjusted EBITDA results for the second quarter of 2014 may be different than the preliminary results we announced today; (2) we may not realize the full year Adjusted EBITDA performance we have forecast; (3) our expected sales performance and our backlog of sales may not be fully realized; (4) our cost reduction efforts, including our restructuring activities, may not have the positive impacts we anticipate; (5) we are subject to execution risk related to the startup of our proposed new facility in China; (6) our plans to develop and market new products, enhance operational efficiencies and reduce costs may not be successful; (7) market improvement in our industry may occur more slowly than we anticipate, may stall or may not occur at all; (8) variations in demand for our products, including our new products, could negatively affect our revenues and profitability; (9) our manufacturing facilities may be required to quickly increase or decrease production, which could negatively affect our production facilities, customer order lead time, product quality, labor relations or gross margin; and (10) the other risks and uncertainties discussed elsewhere in this press release, our Form 10-K for the year ended December 31, 2013 filed on March 4, 2014 and our other SEC filings. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this press release reflects our current views with respect to future events. Except as required by law, we assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise. As discussed above, we are subject to substantial risks and uncertainties related to current economic conditions, and we encourage investors to refer to our SEC filings for additional information. Copies of these filings are available from the SEC and in the investor relations section of our website at www.xerium.com.

Selected Financial Data

EBITDA and Adjusted EBITDA Non-GAAP Measures

Non-GAAP Financial Measures

We use EBITDA and Adjusted EBITDA (as defined in our credit facility) as supplementary non-GAAP liquidity measures to assist us in evaluating our liquidity and financial performance, specifically our ability to service indebtedness and to fund ongoing capital expenditures. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as a substitute for income (loss) or cash flows from operations (as determined in accordance with GAAP).

EBITDA is defined as net income (loss) before interest expense, income tax provision (benefit) and depreciation (including non-cash impairment charges) and amortization.

"Adjusted EBITDA" means, with respect to any period, the total of (A) the consolidated net income for such period, plus (B) without duplication, to the extent that any of the following were deducted in computing such consolidated net income for such period: (i) provision for taxes based on income or profits, including, without limitation, federal, state, provincial, franchise and similar taxes, including any penalties and interest relating to any tax examinations, (ii) consolidated interest expense, (iii) consolidated depreciation and amortization expense, (iv) reserves for inventory in connection with plant closures, (v) consolidated operational restructuring costs, subject to annual limitations provided for in our credit facility, (vi) noncash charges resulting from the application of purchase accounting, including push-down accounting, (vii) non-cash expenses resulting from the granting of common stock, stock options, restricted stock or restricted stock unit awards under equity compensation programs solely with respect to common stock, and cash expenses for compensation mandatorily applied to purchase common stock, (viii) non-cash items relating to a change in or adoption of accounting policies, (ix) non-cash expenses relating to pension or benefit arrangements, (x) expenses incurred as a result of the repurchase, redemption or retention of common stock earned under equity compensation programs solely in order to make withholding tax payments, (xi) amortization or write-offs of deferred financing costs, (xii) any non-cash losses resulting from mark to market hedging obligations (to the extent the cash impact resulting from such loss has not been realized in such period) and (xiii) other non-cash losses or charges (excluding, however, any non-cash loss or charge which represents an accrual of, or a reserve for, a cash disbursement in a future period), minus (C) without duplication, to the extent any of the following were included in computing consolidated net income for such period, (i) non-cash gains with respect to the items described in clauses (vi), (vii), (ix), (xi), (xii) and (xiii) (other than, in the case of clause (xiii), any such gain to the extent that it represents a reversal of an accrual of, or reserve for, a cash disbursement in a future period) of clause (B) above and (ii) provisions for tax benefits based on income or profits. Notwithstanding the foregoing, Adjusted EBITDA, as defined in the credit facility and calculated below, may not be comparable to similarly titled measurements used by other companies.

Consolidated net income is defined as net income (loss) determined on a consolidated basis in accordance with GAAP; provided, however, that the following, without duplication, shall be excluded in determining consolidated net income: (i) any net after-tax extraordinary or non-recurring gains, losses or expenses (less all fees and expenses relating thereto), (ii) the cumulative effect of changes in accounting principles, (iii) any fees and expenses incurred during such period in connection with the issuance or repayment of indebtedness, any refinancing transaction or amendment or modification of any debt instrument, in each case, as permitted under the credit facility and (iv) any cancellation of indebtedness income.

The following table provides reconciliation from net income and operating cash flows, which are the most directly comparable GAAP financial measures, to EBITDA and Adjusted EBITDA (dollars in thousands).

  Three Months Ended
June 30, 2014
Net income (loss)  $ 764
Stock-based compensation  640
Depreciation  8,534
Amortization of intangibles  583
Deferred financing cost amortization  751
Unrealized foreign exchange loss (gain) on revaluation of debt  366
Deferred taxes  (143)
Asset impairment  -- 
Loss (gain) on disposition of property and equipment  1
Loss on extinguishment of debt  -- 
Net change in operating assets and liabilities  (5,343)
   
Net cash provided by operating activities  6,153
Interest expense, excluding amortization  7,985
Net change in operating assets and liabilities  5,343
Current portion of income tax expense  2,472
Stock-based compensation  (640)
Unrealized foreign exchange (loss) gain on revaluation of debt  (366)
Asset impairment  -- 
(Loss) gain on disposition of property and equipment  (1)
Loss on extinguishment of debt  -- 
   
EBITDA  20,946
Loss on extinguishment of debt  -- 
Stock-based compensation  640
Operational restructuring expenses  7,595
Inventory writeoff  -- 
Non-cash impairment charges  -- 
Plant startup costs  240
Adjusted EBITDA  $ 29,421
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Friday, 06 June 2014 11:27

Xerium Launches Redesigned Website

2013 Xerium Logo CMYK 300dpiXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, has announced the launch of its newly redesigned website, www.xerium.com.

The refreshed website delivers a modern user experience sharply focused on Xerium's worldwide customer base in all served markets. The site builds upon the company's efforts to unify its worldwide legacy brands of Stowe Woodward, Huyck.Wangner, and Weavexx under the single Xerium global brand. Additionally, xerium.com now supports mobile devices of all screen sizes to further enhance the user experience and functionality across all major platforms.

"We are excited about the revitalized Xerium website," said Mr. Harold Bevis, President and CEO of Xerium. "It now clearly communicates our company's unique value proposition based on our innovative product technology, cutting-edge mechanical services, unsurpassed technical expertise, and ValueResults platform. Using our skills and know-how, Xerium is providing millions in total savings to our customers around the world."

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Harold Bevis, Xerium CEO and President, has announced the creation of the new position of Executive Vice President of Global Human Resources and the filling of that position with the hiring of Mike Bly as the company’s new global leader of all human resources. Mr. Bly will be responsible for all of Xerium’s human resources – wage plans, benefit plans, insurance, union contracts, incentive plans, personal goals and objectives, human resource management systems, and career planning.

Harold Bevis said “Xerium has two objectives with this move. First, we want to instill stronger pay-for-performance regimens across all people and processes. Xerium has begun a multi-year journey to create an enterprise that sets and meets its commitments to shareholders, customers and employees. The markets that Xerium serves have fundamentally changed in the last few years and we must change our human resource approaches in order to compete and win in this environment.”

“Second, we need to establish more contemporary regimens within the human resource function itself. Many of our current habits are outdated and need to be brought up to contemporary standards. We have a big opportunity to leverage our scale better, simplify our network of activities and organize and group common areas of work. This organizational move will enable that to happen naturally. All human resource personnel will report to Mike with dotted line reporting to the regional Presidents.”

Mike Bly said, “I am excited to join Xerium at this time in its history and look forward to creating value for our employees, customers and investors. Simply stated, my job is to increase the output of our human resources and align our incentive structures around a pay-for-performance philosophy. That always involves consistent cost avoidance and reduction, metric and process improvement, simplification and automation. Cultural change and advancement is a key sustainable objective. I truly enjoy doing this, am experienced and have done it with Harold Bevis before. I understand his sense of urgency and his performance expectations. We are on the same page. I look forward to leading Xerium’s human resource function and resetting our agenda. It will be exciting and fun.”

Mike Bly Background Highlights

  • 28 years of experience leading human resource and manufacturing functions, quality, supply chain, lean manufacturing, materials optimization and substitution, standardized manufacturing systems, per unit cost reduction, customer service, and M&A operational integrations.
  • Formerly the Vice President of Human Resources for Mr. Bevis at Pliant Corporation. During that time, Pliant renegotiated all of its union contracts; achieved top-tier wage and benefit benchmarks; consolidated multiple plants and expanded multiple plants.
  • Most recently, Vice President of Human Resources at Berry Plastics (acquired Pliant Corporation in December 2009) where he had responsibility for the Flexible Packaging Division’s human resource function.
  • BS in Business Administration and is currently pursuing his MBA from Kaplan University.
  • Mike achieved his Professional Human Resource (PHR) and Senior Professional Human Resource Certifications (SPHR) from the Human Resource Certification Institute.
  • Married with 3 children.  

    Source: Xerium

Published in North American News

Xerium Technologies, Inc. (NYSE:XRM) a leading global manufacturer of engineered textiles and roll covers and provider of mechanical services used in the production of paper, paperboard, building products, nonwoven materials, and general industry, today announced a 350 ton global press felt production increase through a combination of the following actions:

  • Equipment investments in base fabric making, card making, needling and heat setting
  • A centerpiece investment in a new, state-of-the-art DILO needle loom
  • Additional production in Xerium’s Asian and South American plants

Xerium is increasing its capacity in its press felt plants in response to strong global demand from customers for Xerium’s high-end surface sensitive press felts. This additional capacity will be coming on line beginning in Q2 2013 and continue through Q4 2014. Xerium is largely capacity constrained with regards to press felt sales growth and, therefore, somewhat hampered in terms of partnering with growing customers, growing areas of the market and growing regions of the world.

The DILO needle loom is a special machine used in the production of high-end surface sensitive felts. These products are used on paper machines, fiber cement machines used in the production of building products and general purpose industrial textile machines. The high-speed, high-density needling capabilities of DILO’s Hyperpunch machine will expand Xerium’s current platform of needling looms used to manufacture Xerium’s most technologically advanced press felts. The DILO machine is on order.

“We are excited to be investing for sales growth and expanding our capacity to make press felts of all types - paper machine press felts, fiber cement products, nonwoven products, and general purpose industrial textiles. Xerium’s ability to grow in these areas has been limited by available capacity. These actions give our customers and sales teams more flexibility to pursue growth plans and additional new products. There are many parts to increasing our global capacity in a high-quality manner and it is a top priority at Xerium. We are expanding our base fabric capabilities, our heat setting capabilities, our needling capabilities, our card making capabilities and our finishing capabilities,” said Harold Bevis, Xerium’s President and CEO. “These actions increase our global capacity, lower our costs, increase our quality, and balance our production more efficiently to improve our lead times to customers. We are committed to reducing our total costs, growing our sales and maintaining our global technology leadership positions. These actions help us achieve these goals.

We have also reorganized our global machine clothing Operations team so that Xerium can optimize outcomes and efficiency across all regions of the world. We have four new leaders in charge of these matters.

  • Jürgen Hartmann – based in Germany, VP & Global Operations Leader for Forming Fabrics
  • Alain Cayer – based in Canada, VP & Global Operations Leader for Press Felts
  • Jürgen Heiss – based in Germany, Director of Global Planning and Scheduling for Forming Fabrics
  • Lynn Height – based in USA, Director of Global Planning and Scheduling for Press Felts

Proper leadership will make these investments a reality for our customers and we are proud to announce these four promotions from within the ranks of Xerium. They are all veterans of our company and of the industry.”

Source: Xerium Technologies, Inc.

Published in North American News
Tagged under

Xerium Technologies, Inc. (NYSE:XRM), a leading global manufacturer of specially engineered textiles and roll covers used in the production of paper, paperboard, building products, non-wovens and specific industrial processes, announced that the results of its operations for the quarter and year ended December 31, 2012.

Net sales have been stable in 2012, averaging approximately $134.7 million per quarter, and within a range of +/- 2%. Our backlog, defined as orders expected to ship within one year, suggests that this trend will continue and currently stands at $174.0 million as of December 31, 2012. Compared to the third quarter of 2012, net sales were essentially the same at a 0.3% decline, or a 1.4% decline on a constant currency basis. Compared to the fourth quarter of 2011, net sales decreased 7.9%, or 6.2% on a constant currency basis, to $133.8 millionfrom $145.2 million. Year over year, net sales decreased 8.2%, or 4.8% on a constant currency basis, to $538.7 million from $587.0 million. See "Segment Information" and "Non-GAAP Financial Measures" below.

Gross profit has been fairly stable in 2012, averaging approximately $48.4 million per quarter and within a range of +/- 3%. The 4.5% decline from $49.2 million in the third quarter of 2012 to $47.0 million in the fourth quarter of 2012 was primarily as a result of special charges for asset impairments, lower constant currency sales volume and reduced production absorption.

Despite stable sales, Adjusted EBITDA declined 15.6% in the fourth quarter of 2012 to $20.6 million from $24.4 million in the third quarter of 2012. This decline was primarily a result of special charges of $1.5 million for items including payroll tax exposures, accounts receivables and inventory and the third quarter reversal of $0.5 million management incentive costs that did not occur in the fourth quarter of 2012. In addition to these unusual items, Adjusted EBITDA declined $1.5 million, primarily due to reduced gross profit on lower constant currency sales and lower production absorption. See "Non-GAAP Financial Measures" below.

Total debt is trending down as a result of explicit pay down actions and stands at $445.0 million at December 31, 2012. During the fourth quarter of 2012, the Company paid down $5.1 million of debt, including the repurchase of $3.6 million of its Notes in December of 2012. On a full year basis, debt was paid down $25.7 million. Net debt, as defined as total debt less cash balances, was $410.2 million at December 31, 2012.

Commenting on the quarter, Harold Bevis, Xerium's President and Chief Executive Officer stated, "The Company is fully underway with its multi-year commitment to increasing sales and EBITDA. The Company is right-sizing its cost structure around its core business. It is also repositioning its production capacity to be lower cost and better serve its customers. The Company has taken specific cost reduction actions to increase 2013 Adjusted EBITDA including the closure of four manufacturing operations and reduction of headcount. We have targeted savings net of reinstated incentive compensation of approximately $12 million in 2013 with a progressive quarterly build up of cost out actions and a carryover into 2014. Specifically, the Company took action against approximately $1.5 million of cost, net of incentive compensation reinstatement, in the first quarter of 2013, compared to the fourth quarter of 2012. The Company is funding and gating its cost reduction activities with internal cash flow. The Company has also kicked off and/or accelerated several new sales growth and new product programs in order to re-establish top-line growth opportunities. These strategic moves will be kept private by Company management for the time being, but these actions are expected to open up another ~$200 million aperture into our served markets."

FOURTH QUARTER FINANCIAL HIGHLIGHTS

Source: Xerium Technologies, Inc.

Published in Financial News
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