For additional information regarding non-GAAP financial measures and a reconciliation of such measures to the most comparable financial measures under GAAP, please see “Segment Information” above and our Selected Financial Data below. In addition, the information in this press release should be read in conjunction with the corresponding exhibits, financial statements and footnotes contained in our documents to be filed with the Securities and Exchange Commission.
About Xerium Technologies
Xerium Technologies, Inc. (NYSE:XRM) is a leading global manufacturer of specially engineered fabrics, belts and roll cover technology used in the production of paper, paperboard, building products, non-wovens, and specific industrial processes. The Company, 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 30 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,275 employees.
FORWARD-LOOKING STATEMENTSThis press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. These risks and uncertainties include the following items: (1) a sustained downturn in the paper industry, compounded by uncertainty in global economic conditions, particularly those stemming from Europe, could adversely affect our revenues and profitability; (2) our cost reduction efforts, including our restructuring activities, may not have the positive impacts we anticipate; (3) our financial results could be adversely affected by fluctuations in interest rates and currency exchange rates, for instance a marked decline in the value of the Euro relative to the U.S. Dollar; (4) market improvement in our industry may occur more slowly than we anticipate, may stall or may not occur at all; (5) variations in demand for our products, including our new products, could negatively affect our revenues and profitability; (6) 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; (7) our plans to develop and market new products, enhance operational efficiencies, and reduce costs may not be successful; and (8) the other risks and uncertainties discussed elsewhere in this press release, our Form 10-K for the year ended December 31, 2012 filed on March 11, 2013 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.
Xerium Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(dollars in thousands, except per share data)
|Three Months Ended December 31,||Year Ended December 31,|
|Costs and expenses:|
|Cost of products sold||86,775||94,986||345,171||370,754|
|General and administrative||16,192||14,452||63,701||62,012|
|Research and development||3,150||3,177||11,681||12,097|
|(Loss) income from operations||(6,094||)||12,713||16,396||61,101|
|Interest expense, net||(9,384||)||(9,441||)||(37,878||)||(39,150||)|
|Gain (loss) on extinguishment of debt||243||—||243||(2,926||)|
|Foreign exchange (loss) gain||(514||)||128||(358||)||(156||)|
|(Loss) income before provision for income taxes||(15,749||)||3,400||(21,597||)||18,869|
|Benefit (provision) for income taxes||6,667||(967||)||3,562||(10,679||)|
|Net (loss) income||$||(9,082||)||$||2,433||$||(18,035||)||$||8,190|
|Net (loss) income per share:|
|Shares used in computing net (loss) income per share:|
Consolidated Selected Financial Data
|Cash Flow Data: (in thousands)||Years Ended December 31,|
|Net cash provided by operating activities||$||39,322||$||45,208|
|Net cash used in investing activities||(20,617||)||(8,688||)|
|Net cash used in financing activities||(27,472||)||(31,463||)|
|Other Financial Data: (in thousands)|
|Depreciation and amortization||40,752||43,686|
|Capital expenditures, gross||(21,705||)||(30,154||)|
|Balance Sheet Data: (in thousands)||December 31, 2012||December 31, 2011|
|Cash and cash equivalents||$||34,777||$||43,566|
|Total stockholders’ deficit||(29,061||)||(2,305||)|