xerium technologies inc (XRM) Key Developments
Xerium Technologies Inc. Presents at Imperial Capital Global Opportunities Conference, Sep-17-2015 02:15 PM
Sep 3 15
Xerium Technologies Inc. Presents at Imperial Capital Global Opportunities Conference, Sep-17-2015 02:15 PM. Venue: The Waldorf Astoria Hotel, 301 Park Avenue, New York, NY 10022, United States. Speakers: Clifford E. Pietrafitta, Chief Financial Officer, Principal Accounting Officer and Executive Vice President, Harold C. Bevis, Chief Executive Officer, President and Director.
Xerium Technologies Inc. Reports Consolidated Earnings Results for Second Quarter and Six Months Ended June 30, 2015; Provides Financial Guidance for the Second Half and Full Year 2015
Aug 10 15
Xerium Technologies Inc. reported consolidated earnings results for second quarter and six months ended June 30, 2015. For the quarter, on consolidated basis, the company’s net sales were $123.13 million against $139.72 million a year ago. Income from operations was $13.57 million against $12.32 million a year ago. Income before provision for income taxes was $3.98 million against $3.09 million a year ago. Net loss was $0.70 million or $0.05 per diluted share against net income of $0.76 million or $0.05 per diluted share a year ago. EBITDA was $19.86 million against $20.95 million a year ago. Adjusted EBITDA was $28.00 million against $29.42 million a year ago. Net debt increased to $473.4 million from $464.7 million in first quarter of 2015. Basic adjusted EPS of $0.37 per share, that represents an increase of 32% over $0.28 per share in first quarter 2015
For the six months, on consolidated basis, the company’s net sales were $244.16 million against $273.11 million a year ago. Income from operations was $27.76 million against $24.91 million a year ago. Income before provision for income taxes was $9.49 million against $6.15 million a year ago. Net loss was $1.03 million or $0.06 per diluted share against net income of $1.93 million or $0.12 per diluted share a year ago. Net cash provided by operating activities was $14.67 million against $8.92 million a year ago. Capital expenditures, gross were $27.91 million against $22.47 million a year ago.
The company expects its net debt and leverage to improve in the second half of 2015 as free cash flow becomes positive, and the company begin to pay down debt. Second half of 2015 adjusted EBITDA is expected to head higher in dollars, as the company continues to deliver adjusted EBITDA margin improvement despite the sometimes difficult regional industry conditions. Second half 2015 adjusted EBITDA results to improve over the first half of 2015.
The company expects full-year Adjusted EBITDA will likely be comparable to last year's Adjusted EBITDA. The company expects the incremental earnings from sales growth investment programs to more than offset the permanent market declines in graphical paper production. Additionally, as capital expenditures begin to decline, the company will begin to pay down debt with the surplus cash flow. Sales growth investment programs, totaling $87 million, involve a full gamut of initiatives that will enable Xerium to deliver significant incremental Adjusted EBITDA growth and further increase earnings potential. Most of spending is behind and these multi-year programs are coming on line in the second half of 2015. The company expects the full year cash tax rate to be there, around 30%.
Xerium Technologies Inc. Presents at Jefferies 11th Annual Industrials Conference, Aug-13-2015 08:00 AM
Jul 28 15
Xerium Technologies Inc. Presents at Jefferies 11th Annual Industrials Conference, Aug-13-2015 08:00 AM. Venue: Grand Hyatt, 109 E. 42nd Street, New York, New York, United States. Speakers: Clifford E. Pietrafitta, Chief Financial Officer, Principal Accounting Officer and Executive Vice President, David Pretty, President of Xerium North America and Europe, Harold C. Bevis, Chief Executive Officer, President and Director.
Xerium Technologies Inc., Annual General Meeting, Sep 11, 2015
Jul 23 15
Xerium Technologies Inc., Annual General Meeting, Sep 11, 2015., at 09:00 US Eastern Standard Time. Location: 14101 Capital Boulevard. Agenda: To elect six directors; to ratify the selection of Ernst & Young LLP as the company's independent registered public accounting firm; to re-approve the material terms of the performance goals included in the 2010 Executive Incentive Plan; and to transact such other business as may properly come before the meeting and any adjournment or postponement of the meeting.
Xerium Technologies Inc. Announces New Business in China
Jul 22 15
Xerium Technologies Inc. has announced that it has materially completed the $60 million successful restructuring of its business in China. The business is now in a position to locally serve customers in China, Asia, and also export certain products globally. The make-over of its China and Asian business has taken over 3 years to complete with a number of key aspects required for full implementation. Xerium has implemented an all-Asian business model and will now run its entire Asian business from Shanghai. Highlights of the repositioning of Xerium’s Asia business are as follows: Kunshan, China Press Felt Plant: Production has begun at Kunshan, China Press Felt Plant Xerium completed a 2 year, multi-million dollar construction project to build and equip a brand-new press felt plant in Kunshan, China. This greenfield plant is located in the heart of the Yangtze River paper-making region, which is at the center of the paper-making region in the world - China. It took over 2 years to design, build, equip, and commission. Until this new plant began production, Xerium served this region mainly as an exporter of products made in Europe. Xerium has significantly increased its competitive position with this plant and will now be able to more closely partner with customers in China and the rest of the world. For the first time ever, customers in China will receive locally provided and optimized press felt solutions from Xerium. Xerium will conduct business in local currency and local languages. The Kunshan plant will be able to service the pulp, paper, paperboard, and tissue machines in the world, as the main machine in the plant is greater than 15 meters wide. This central machine and its foundation weighed almost 1 million pounds at installation. For some press felt designs, the company will be able to make 3 pieces simultaneously - a first for the company. The plant has information systems and supply chain interfaces along with real time operational communication systems throughout the site. It is conducting business from a new Infor information technology platform. The company is moving a large portion of its press felt production to this plant in China. The plant has initiated production. Renovated Changzhou, China Rolls Plant Xerium completed a 2 year, multi-million dollar investment program to completely renovate its rolls and mechanical service plant in Changzhou, China. This plant is located in the Yangtze River paper-making region. Until this renovation was completed, Xerium had served this region for many decades by exporting high-end working rolls from Europe. Xerium has now transferred all of its technology to this plant SMART Roll production cell, spreader roll production cell, polyurethane production cell, suction box production cell, upgraded extrusion and drilling equipment. The plant can now produce all of Xerium’s designs. The plant recently received ISO-9000 quality certification. Implemented new Asia Headquarters in Shanghai- Moved and reincorporated Xerium Asia headquarters into the Shanghai Free Trade Zone. This special Chinese government approval allows Xerium to import/export at the lowest possible cost, expedite customs processing, provide shorter lead times for materials transfer, enables maximum leverage of working capital for Xerium across Asia, and receive improved tax treatment as a local Chinese business entity. The entity is now in place. Implemented new Chinese Capital Structure Implemented a local capital structure and banking relationship by moving a portion of the Xerium corporate debt structure to China. The company has implemented a multi-million RMB on-going loan in China with ICBC. Xerium will now conduct local business in local currency (RMB), finance and fund its China business locally in RMB. This will also enable Xerium to both secure a natural business hedge and receive local entity tax treatment. The new loan and new ICBC financial relationship are complete and in place. Localized all Asian Leadership - Moved its Asia business leadership from the United States and Europe to China. The key top personnel moves were: moved President and CFO positions from the US to Shanghai, moved Sales leadership from Europe and Australia to Shanghai, moved technical leadership from Europe to Shanghai. All of these personnel moves are complete. Implemented Chinese IT structure - Moved its IT and data support from Europe to Shanghai. The company has completed its data center in Shanghai and is partnered with SAP as its provider for rolls plant information technology, and is partnered with Infor for machine clothing plant information technology. Both technology providers have huge businesses in China and are also located in Shanghai. Implemented Contemporary Asian Supply Chain - Moved its Asia supply chain and warehousing activities from in-house/locally provided into a global partnership with Panalpina. Xerium is connecting its internal systems with Panalpina to give its customers a seamless electronic supply chain. The supply chain moves are in place.