This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Xerium Sales And Adjusted EBITDA Increase In Q3 2013

Stocks in this article: XRM

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

Key Highlights

* Sales continue to increase:

  • On a constant currency basis, Q3 2013 sales increased 0.2% from Q3 2012. See “Segment Information” and “Non-GAAP Financial Measures” below for further discussion.
  • Q3 2013 sales per employee were $171k, remaining at a four year high.
  • Backlog at September 30, 2013 was $156 million, slightly down from backlog at June 30, 2013, but consistent with seasonal expectations regarding orders.
  • 2013 September Year-To-Date (YTD) sales were $413.2 million. Excluding foreign currency effects, YTD sales increased $9.1 million, or 2.2%, versus the comparable prior year period. This sales growth is in line with global paper market trade group estimates.
    • Excluding foreign currency effects, sales increased across all regions, $4.2 million or 5.5% in Asia, $2.8 million or 2.0% in Europe and $2.1 million or 1.1% in the Americas.

    • Constant currency sales growth was higher in rolls & mechanical services at $5.7 million, or 4.1%, than in machine clothing, which grew $3.4 million, or 1.3%.
    • Sales growth continues to be hampered by lack of production capacity in multiple product areas. The Company is progressively working to eliminate these bottlenecks.
  • For the last twelve months, sales and orders are exactly balanced on a constant currency basis at $542.2 million.

* Adjusted EBITDA continues to increase:

  • Q3 2013 Adjusted EBITDA was $27.2 million, or 20.2% of sales. This is an increase of $2.8 million or 11.5% versus Q3 2012. See "Non-GAAP Financial Measures" below.
  • September 2013 YTD Adjusted EBITDA was $83.3 million. This is an increase of $14.6 million or 21% over the comparable prior year period.
  • Sales growth accounts for 27% and net cost reduction accounts for 73% of the September 2013 YTD Adjusted EBITDA improvement.
  • SG&A continues to trend lower in both dollars and percentage. The improvement is primarily driven by cost reduction programs.
  • Gross profit and gross margin continue to trend higher. The improvement is primarily driven by cost reduction programs.

* Additional cost reduction programs continue to be implemented:

  • Compared to last year, cost reduction programs delivered an incremental $7.0 million in Q3 and an incremental $18.0 million through September 2013. This compares to $5.4 million in Q1 2013 and $5.6 in Q2 2013.
  • Plant efficiency programs (waste reduction, procurement programs, productivity and logistics programs) account for approximately 40% of the YTD cost reduction improvements while restructuring programs account for 60% of the YTD cost reduction improvements.
  • In Q3, Xerium announced plans to build a new, high-end press felt plant near Shanghai, China. This is anticipated to deliver both cost reduction and sales growth results.
  • In Q3, the Company identified its restructuring goals targeted for implementation in Q1 2014.

* The Company continues to reinvest the majority of its free cash flow to improve future results by:

  • Ordering long lead time equipment;
  • Making restructuring/severance payments;
  • Finishing 4 plant closures, while 7 plant expansions are currently underway;
  • Initiating the next plant closure;
  • Building the new greenfield plant in China;
  • Expanding the Company's after-market rolls and service footprint and capabilities;
  • Implementing 10 new product programs that open new market aperture for Xerium to grow sales in the future; and
  • Lowering its net debt to $394.4 million. Net debt leverage continues to improve in line with Adjusted EBITDA improvements, declining to approximately 3.8x Adjusted EBITDA.

* Q3 fully diluted earnings per share grew from a net loss of $(0.24) per diluted share to net income of $0.13 per diluted share, primarily as a result of increased gross margins and decreased operating expenses as a result of our cost reduction initiatives.

1 of 8

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs