XRM - Sector: Industrial Goods---Industry: Textile Industrial

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Profile:  


Xerium Technologies Inc.
14101 Capital Boulevard
Youngsville, NC 27596
United States - Map
Phone: 919-556-7235
Fax: 919-556-2432
Web Site: http://www.xerium.com

DETAILS  
Index Membership: N/A
Sector: Industrial Goods
Industry: Textile Industrial
Full Time Employees: 3,734


BUSINESS SUMMARY  
Xerium Technologies, Inc. manufactures and supplies consumable products that are used in the production of paper. It operates in two segments: Clothing and Roll Cover. The Clothing segment manufactures clothing products, such as forming fabrics, press felts, and dryer fabrics that are used on paper-making machines. This segment also manufactures clothing that are used in other industrial applications, such as steel, plastics, leather, and textiles manufacturing; and auto-joining equipment used on paper-making machines. The Roll Cover segment manufactures, refurbishes, and replaces covers for working rolls, including vacuum rolls and press rolls; calendar rolls; and coater rolls that are used on paper-making machines. This segment also provides roll cover refurbishment services for previously installed roll covers; and mechanical services for the internal mechanisms of rolls. In addition, it manufactures and repairs spreader rolls. The company markets its products under the Huyck Wangner, Weavexx, Stowe Woodward, Mount Hope, and Robec brand names. It has operations in North America, Europe, South America, and the Asia-Pacific region. The company was founded in 1999 and is based in Youngsville, North Carolina.

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Cotton commodity article.......


"Cotton is going to be the commodity of choice because the world's standard of living is increasing and the places where it's increasing fastest are warm and they don't wear wool, they wear cotton. Cotton is something nobody wants to grow. They want to grow corn instead. So, while the demand for cotton is increasing, the acreage devoted to it is decreasing and that's all you have to know."

from January 8, 2008 "Forbes Investor Advisory Institute" an excerpt from Byron Wien reprinted in "Seeking Alpha"



52wk Range: 0.91 - 9.20
Volume: 813,227
Avg Vol (3m): 364,221

Technicals
Percentage Gainer

Last Price Quote is:
15.26%above 13-day MA
-18.53%below 50-day MA
RS Rating: 3 

Fundamentals
Earnings Expected on May 7

Key Data:
Market Cap (M): $94.02 
P/E Ratio: 2.80 
PEG Ratio: 1.42857 
Next Earnings: 05/07/2008
Last Analyst Rating: Hold

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Press Release Source: Xerium Technologies, Inc.


Xerium Technologies Announces Timing for First Quarter 2008 Conference Call
Thursday May 1, 7:35 am ET


YOUNGSVILLE, N.C.--(BUSINESS WIRE)--Xerium Technologies, Inc. (NYSE: XRM - News), a leading global manufacturer of clothing and roll covers used primarily in the paper production process, today announced that it plans to release its results for the first quarter ended March 31, 2008 after the market closes on Wednesday, May 7, 2008, and hold a conference call to discuss those results on Thursday, May 8, 2008, starting at 8:00 am ET.


The conference call will be accessible as a webcast through the company's website (www.xerium.com), following the links for investor relations and events. To access the call, please dial 877-391-6733, using passcode 96503289, at least 10 minutes prior to the call's scheduled start. Internationally, the call may be accessed by dialing 617-597-9372, using the same passcode. Participants may pre-register for the call at: www.theconferencingservice.com/prereg/key.process?key=P8EJBVXYL

Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection. The call will be available as an archived webcast at the company's website, beginning approximately one hour after the completion of the call.

ABOUT XERIUM TECHNOLOGIES

Xerium Technologies, Inc. (NYSE: XRM - News) is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers. 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 35 manufacturing facilities in 15 countries around the world, Xerium has approximately 3,700 employees.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," or "continue" or the negative of these terms or other comparable terminology. Undue reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements. Factors that could materially affect our actual results, levels of activity, performance or achievements include the following items: (i) our lenders would have the right to demand immediate repayment of our obligations under our credit facility and counterparties may have the right to terminate our existing interest rate swaps if we remain in default of our financial covenants at May 31, 2008; (ii) our borrowing costs are likely to increase in the event that we are able to reach agreement on amendment of our financial covenants or otherwise refinance our credit facility; (iii) the New York Stock Exchange may delist our common stock if we are unable to meet the NYSE listing requirements; (iv) our revenues and profitability could be adversely affected by fluctuations in currency exchange rates; (v) our profitability would be reduced by a decline in the prices of our products; (vi) our profitability could be adversely affected by fluctuations in interest rates; (vii) we may not be able to develop and market new products successfully or we may not be successful in competing against new technologies developed by competitors; (viii) our credit facility contains restrictive covenants, including covenants requiring compliance with minimum interest coverage and fixed charge coverage ratios and maximum leverage ratios, that will require us to improve our performance over time in order to comply therewith; (ix) our credit facility, as amended, prohibits the payment of dividends on our common stock; (x) we may have insufficient cash to fund growth and unexpected cash needs after satisfying our debt service obligations due to our high degree of leverage and significant debt service obligations; (xi) we are subject to the risk of weaker economic conditions, including without limitation those affecting the paper industry, in the locations around the world where we conduct business, including current turmoil in the credit markets; (xii) we may be required to incur significant costs to reorganize our operations in response to market changes in the paper industry; (xiii) we are subject to the risk of terrorist attacks or an outbreak or escalation of any insurrection or armed conflict involving the United States or any other country in which we conduct business, or any other national or international calamity; (xiv) we are subject to any future changes in government regulation; (xv) we are subject to any changes in U.S. or foreign government policies, laws and practices regarding the repatriation of funds or taxes and (xvi) those other risks described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the period ended December 31, 2007 filed with the Securities and Exchange Commission and subsequent 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 and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. 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.





Contact:
Conway Communications
Jane W. McCahon, 978-443-0160
[email protected]

--------------------------------------------------------------------------------
Source: Xerium Technologies, Inc.

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Nice bounce off the 13-day MA...looking to bust through the 50-day.


52wk Range: 0.91 - 9.20
Volume: 461,709
Avg Vol (3m): 373,692

Technicals
Last Price Quote is:
25.74%above 13-day MA
-7.36%below 50-day MA
RS Rating: 3 

Fundamentals
Earnings Expected on May 7

Key Data:
Market Cap (M): $94.02 
P/E Ratio: 2.80 
PEG Ratio: 1.57143 
Next Earnings: 05/07/2008
Last Analyst Rating: Hold

[setravis]

Nice bounce off the 13-day MA...looking to bust through the 50-day.

Bust through it did, in grand fashion !!  
Nice surge in Volume !
Now let's take out the 200-day MA...

52wk Range: 0.91 - 8.63
Volume: 2,391,812
Avg Vol (3m): 393,487


Technicals
Percentage Gainer

Last Price Quote is:
89.86%above 13-day MA
60.97%above 50-day MA
RS Rating: 14 

Fundamentals
Key Data:
Market Cap (M): $94.02 
P/E Ratio: 2.80 
PEG Ratio: 2.08571 
Next Earnings: 11/06/2008
Last Analyst Rating: Hold

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Xerium Technologies Inc. topped the list of Biggest Percentage Price Gainers on the New York Stock Exchange at the close on Friday.


52wk Range: 0.91 - 8.63
Volume: 837,000
Avg Vol (3m): 429,684

Technicals
MACD - Bullish

Last Price Quote is:
71.18%above 13-day MA
59.94%above 50-day MA
RS Rating: 12 

Fundamentals
Key Data:
Market Cap (M): $185.74 
P/E Ratio: 2.80 
PEG Ratio: 2.8 
Next Earnings: 11/06/2008
Last Analyst Rating: Hold

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Press Release Source: Xerium Technologies, Inc.

http://biz.yahoo.com/bw/080507/20080507006254.html?.v=1


Xerium Technologies Reports First Quarter 2008 Results
Wednesday May 7, 5:01 pm ET


YOUNGSVILLE, N.C.--(BUSINESS WIRE)--Xerium Technologies, Inc. (NYSE: XRM - News), a leading global manufacturer of clothing and roll covers used primarily in the paper production process, today reported results for the first quarter ended March 31, 2008. Highlights for the quarter include:
Net sales for the first quarter of 2008 were $159.0 million, a 10.4% increase from net sales of $144.0 million for the first quarter of 2007. Excluding currency effects described below, first quarter 2008 net sales increased 2.4% from the first quarter of 2007, with growth of 2.7% and 1.6% in the clothing and roll covers segments, respectively.
Income from operations increased by 21.2% to $20.6 million in the first quarter of 2008 from $17.0 million in the first quarter of 2007. Restructuring and impairment expenses in the first quarter of 2008 were $0.5 million, as compared to $4.1 million in the first quarter of 2007.
Xerium recorded a net loss of $4.7 million, or $0.10 per diluted share, for the first quarter of 2008. Significant items contributing to the net loss were a $12.2 million pre-tax, non-cash charge to interest expense reflecting the mark-to-market decrease in the fair value of the Company's interest rate swaps in the first quarter of 2008, compared to a $1.6 million charge in the first quarter of 2007 (see below for additional detail) and a provision for income taxes of $3.6 million in the first quarter of 2008, compared to $1.4 million in the first quarter of 2007. Net income for the first quarter 2007 was $3.0 million, or $0.07 per diluted share.
Net cash generated by operating activities was $29.8 million for the first quarter of 2008, compared to $15.3 million in the same quarter last year, resulting primarily from improvements in working capital.
Adjusted EBITDA (as defined in the Company's credit facility) was $34.8 million for the first quarter of 2008, compared to $32.8 million for the first quarter of 2007. See "EBITDA and Adjusted EBITDA Reconciliation" below.
Cash on hand at March 31, 2008 was $31.0 million compared to cash on hand of $17.7 million at March 31, 2007. Cash on hand at December 31, 2007 was $24.2 million. Total debt principal and interest payments amounted to $24.8 million during the first quarter of 2008 as compared with $13.7 million during the first quarter of 2007.
As a result of the Company's credit facility issues (see Credit Facility Update below), the Company's balance sheet as of March 31, 2008 includes a reclassification to current debt of $658.8 million, the portion of the long-term debt under the senior credit facility that would have been in default of the credit agreement had the Company not obtained the temporary waiver. Additionally, because this debt is potentially payable prior to the expiration of the underlying interest rate swaps, hedge accounting under SFAS No. 133 was no longer applicable for the Company's interest rate swaps and the mark-to-market decrease in their fair value of $12.2 million was recorded as a non-cash charge to interest expense during the first quarter of 2008.



52wk Range: 0.91 - 8.63
Volume: 969,297
Avg Vol (3m): 438,8

Technicals
Percentage Gainer

Last Price Quote is:
65.62%above 13-day MA
66.56%above 50-day MA
RS Rating: 14 

Fundamentals
Key Data:
Market Cap (M): $185.74 
P/E Ratio: 2.80 
PEG Ratio: 2.85714 
Next Earnings: 11/06/2008
Last Analyst Rating: Hold

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Monday, June 2, 2008 - 1:56 PM EDT
Xerium reorganizes debt, avoids bankruptcyTriangle Business Journal - by Chris Coletta

Xerium Technologies, which makes products for clothing manufacturers, has reorganized its debt - staving off a possible bankruptcy filing.

Youngsville-based Xerium (NYSE: XRM) said in March that it would cancel its dividend because it was in danger of defaulting on some of its debt. At the time, the company said that bankruptcy was a possibility but that it was trying to reach a deal with creditors.

On May 31, Xerium said it's done exactly that, signing an agreement that has put it in compliance with the requirement of its credit facility. Citigroup served as lead arranger for the agreement, which involves some 60 lenders.

Financial troubles for Xerium came about during the tenure of former CEO Tom Gutierrez, who stepped down in February. At the time, Triangle Business Journal reported, Xerium paid a generous dividend and was spending to grow its footprint in areas including Asia and eastern Europe - moves that worried analysts and investors given the company's large debt load.

Now, the company's new credit agreement significantly curtails the amount of money Xerium can spend for purposes other than paying down debt. Under terms of the agreement, capital expenditures are limited to $50 million in 2008 and $35 million per year through 2012.

Xerium also must use 75 percent of excess cash flow to pay down debt. At least three-quarters of cash proceeds from any equity sales also must go to the company's debtors. Only $3 million in net proceeds from any asset sales can be used for reinvestment, with the rest going to pay debt.

The company also is barred from issuing dividends through the end of the agreement in 2012. And it must submit a detailed budget and business plan to Citigroup for every fiscal year through the end of the agreement.

But the agreement also removes a major headache for Xerium: worries about the falling dollar.

Xerium does business around the world. Thus, its debt in foreign denominations is worth more in dollars, which had weakened the company's financial position and boosted its debt figures. But the company's new agreement freezes exchange rates for the purposes of calculating debt.

The new agreement's restrictions on growth will curb Xerium's growth, CEO Stephen Light said Monday. But growing slowly is what the company needs to do, he argues.

"Many (in the paper industry) have gone to Asia in a big way and spent a lot of money," Light says. "In the industry, it's called the Asian arms race. And I frankly think that in the case of Xerium, it was too big of an investment too fast, and it siphoned away focus from executing other parts of the business."

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Press Release Source: Xerium Technologies, Inc.


Xerium Technologies Reports Second Quarter Results
Wednesday August 6, 4:08 pm ET


YOUNGSVILLE, N.C.--(BUSINESS WIRE)--Xerium Technologies, Inc. (NYSE:XRM - News), a leading global manufacturer of clothing and roll covers used primarily in the paper production process, today reported results for its second quarter ended June 30, 2008.
"The transformation that we began in early 2008 is starting to show results," said Stephen Light, President, Chief Executive Officer and Chairman. "While the market continues to remain challenging, we believe we have improved our ability to compete effectively. We anticipate that most of the hard work to restructure certain operations and execute an amended credit agreement is now largely behind us. We've begun to reduce working capital as Xerium's employees remain focused on delivering the results we expect in our new business plan and paying down our debt."

SECOND QUARTER FINANCIAL HIGHLIGHTS

For the second quarter 2008, compared to the second quarter 2007:


Net sales for the 2008 quarter were $170.4 million, a 10.9% increase from net sales for the 2007 quarter of $153.7 million. Excluding the currency effects shown in the table below, second quarter 2008 net sales increased 2.8% from the second quarter of 2007, with a decline of 1.8% and an increase of 12.2% in the clothing and roll covers segments, respectively.
Gross margins were $68.8 million or 40.4% of net sales for the 2008 quarter, compared to $64.2 million or 41.8% of net sales for the 2007 quarter. Meanwhile, the Company believes it is now beginning to get initial traction on its cost reduction initiatives to offset the negative effects of pricing, currency, and cost inflation.
Income from operations declined by 25.9% to $17.7 million for the 2008 quarter from $23.9 million for the 2007 quarter. During the second quarter of 2008, the Company expensed approximately $5.2 million to general and administrative expenses in connection with the amendments to its credit facility. In addition, for the second quarter of 2008, restructuring and impairment expenses increased by $1.5 million to $2.7 million from $1.2 million in the second quarter of 2007.
Net income increased 83.1% to $14.1 million or $0.31 per diluted share for the 2008 quarter, compared to net income of $7.7 million or $0.17 per diluted share for the 2007 quarter. The increase in net income was largely due to a $13.7 million pre-tax, non-cash credit to interest expense reflecting the mark-to-market increase in the fair value of the Company's interest rate swaps (compared to a $0.1 million such credit in the second quarter of 2007). Net income was negatively affected by the $5.2 million pre-tax expense previously noted in connection with amendments to the credit facility.
Net cash generated by operating activities was $11.2 million for the 2008 quarter, which compares to $14.8 million for the 2007 quarter. Cash provided by operating activities was decreased by approximately $4.4 million related to amendment costs in the second quarter of 2008. The Company has reduced working capital from 30% of revenues in the year-ago quarter to 27%.
Adjusted EBITDA (as defined in the Company's amended credit facility) was $50.2 million for the 2008 quarter, compared to $38.2 million for the 2007 quarter. See "EBITDA and Adjusted EBITDA Reconciliation" below.
In order to improve performance, the Company continues to target a reduction in days of receivables and increases in inventory turns and days of payables outstanding. During the 2008 quarter, as compared with the 2007 quarter, the Company reported that accounts receivables, as measured as a ratio of days of receivables, improved from 63 days to 59 days, inventory turns improved to 3.4 versus 3.2 and days of payables improved to 41 days versus 35 days.
Cash on hand at June 30, 2008 was $25.4 million, compared to cash on hand at March 31, 2008 of $31.0 million. Cash on hand at June 30, 2007 was $24.7 million.
During the 2008 quarter, Xerium made senior debt principal repayments of $2.3 million. During the six months ended June 30, 2008, the Company made senior debt repayments of $13.5 million.
Capital expenditures during the 2008 quarter were $8.8 million, compared to $7.3 million during the 2007 quarter. As previously disclosed, the Company has slowed the pace of planned capital expenditures for its Vietnam facility and does not expect to begin production until 2009. The Company expects that capital expenditures will be in a range of approximately $38 to $44 million in 2008, and that capital expenditures in 2009 will be lower than those for 2008.
OTHER HIGHLIGHTS


As announced on May 30, the Company secured a fifth amendment to its existing $700 million senior credit facility, which requires that the Company comply with revised operating controls and financial covenants. The term loan portion of the credit facility matures in 2012 and the revolving credit portion matures in 2011, which is unchanged in the credit facility amendment.
On August 4, 2008, the Company's independent registered public accounting firm, Ernst & Young LLP, removed the going concern explanatory paragraph from its audit report on the Company's financial statements as of December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007.

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Updated chart look...

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updated chart look...