Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - XERIUM TECHNOLOGIES INC | d345137d8k.htm |
| EX-99.1 - PRESS RELEASE - XERIUM TECHNOLOGIES INC | d345137dex991.htm |
| EX-99.3 - SUPPLEMENTAL RECONCILIATIONS OF NON-GAAP INFORMATION - XERIUM TECHNOLOGIES INC | d345137dex993.htm |
 Xerium
Technologies, Inc.
First Quarter 2012
Selected Data –
Earnings Call
EXHIBIT 99.2
1 |
 Forward Looking Statements
•
This presentation and the remarks we may make today about Xerium’s future
expectations, plans and prospects are forward-looking statements which
reflect our current views with respect to future events and financial
performance. Any forward- looking statements which we make in this
presentation or in our remarks today, represent our views only as of today.
We disclaim any duty to update any of these forward-looking
statements. •
Forward-looking statements involve risks and uncertainties, both known and
unknown. Our actual results may differ materially from these
forward-looking statements due to a number of factors, including those
factors discussed in our earnings press release dated May 8, 2012, and
other factors discussed in our filings with the SEC, including our Form
10-K for the year ended December 31, 2011. Copies of these filings are
available from the SEC and in the investor relations section of our website
at www.xerium.com. •
These slides, the associated remarks and comments made during our first quarter
2012 financial results conference call, our earnings release dated May 8,
2012 and the reconciliation of certain non-GAAP financial information
posted in the investor relations section of our website are integrally
related and are intended to be presented and understood together.
2 |
 Bookings Analysis –
Total Xerium
3
Total Xerium order bookings for Q1 2012 were $134.4M compared to Q1 2011 bookings of
$155.4. The year over year decline is primarily due to weakness in Europe. Versus Q4 2011,
bookings improved $7.3M primarily due to strength in North America. This improvement
includes $1.0M of unfavorable currency. |
 Bookings Analysis –
Paper Machine Clothing
PMC order bookings for Q1 2012 were $85.1M compared to Q1 2011 bookings of
$101.4M. The year over year decline is primarily due to weakness in
Europe. Versus Q4 2011, bookings improved $4.9M primarily due to
strength in North and South America. 4 |
 Bookings Analysis –
Roll Coverings
Rolls
order
bookings
for
Q1
2012
were
$49.3M
compared
to
Q1
2011
bookings
of
$54.0.
The
year over year decline is primarily due to weakness in Europe. Versus Q4
2011, bookings improved $2.4M primarily due to strength in North
America. 5 |
 Percent of Revenue from Asia-Pacific Markets
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Q1
Asia-Pacific
12.1%
12.4%
12.8%
13.9%
12.1%
13.2%
14.0%
15.6%
16.9%
17.3%
19.2%
19.0%
5%
10%
15%
20%
25%
6
Generally, over time, we expect growth in paper production to be greater in Asia-Pacific than in
the more mature North American and Western European regions. |
 New
Product Sales as a Percent of Revenue Meaningful progress continues on
Xerium’s goal to increase its technological leadership. Our goal
is to derive 60% of XRM’s sales revenue from products developed within the prior five
years that make a measurable improvement in customer performance, are defendable
long term and simultaneously reduce our operating costs.
7
$ 50.9M
$ 20.8M |
 Xerium’s New Product Categorization
New products are categorized by their level of innovation and strategic purpose
8
•
Gain market share through application of unique
performance features; capture premium pricing
•
Break through or new technology, defendable intellectual
property that competitors can’t replicate
•
SmartRoll™, EDC, Impact, EnerSTAR™
•
Gain / Defend market share; recover lost pricing
potential of mature products
•
Product introductions that significantly enhance
contemporary product performance
•
New tissue products, new generation spreader rolls
•
Defend market share and price, drive internal savings
•
Product launches that while upgrading product
performance, are primarily intended to reduce
manufacturing, service and warranty costs
•
ProSeam, Avantexx
•
Provide profitable growth in non-paper markets
•
This includes new products developed for the nonwoven
textiles industry, fiber cement, oil field development, and
other markets
Innovation
Performance
Rationalization Non Paper
|
 Total
Xerium Quarterly Sales and Gross Margin $US 000’s
Q1 2012 net sales decreased 6.1% from Q1 2012. Gross margins declined to
34.6% for Q1 2012 as compared to 37.7% for Q1 2011. This decrease was
primarily the result of 1) unfavorable
absorption
of
production
costs
in
Q1
2012
related
to
reduced
European
market
demand, and 2) disproportionately higher sales of lower margin products in our
rolls business. 9 |
 S G
& A and R&D Expense In Q1 2012, SG&A and R&D is $40.3M
as compared to Q1 2011 of $40.0M. The increase is primarily the result
of 1) the impending retirement of the CEO and the related accrual of a portion of an incentive
bonus and recruiting fees incurred and 2) expenses due to the relocation of an
office facility in Japan. Partially
offsetting
these
items
were
favorable
currency
effects
of
$0.7M
and
a
gain
recognized
in
Q1
2012 as a result of the sale of land in Brazil.
10 |
 Note: Adjusted EBITDA at each quarter was the amount as calculated per the
definition in the current credit facility with the exception that we have added back
to net income (loss) per the terms of our prior credit facility financial
restructuring costs of $9.6M, $15.3M, $0.8M and $0.6M incurred as part of the
reorganization in Q1 2010, Q2 2010, Q3 2010 and Q4 2010, respectively.
A reconciliation of Trailing Twelve Month Adjusted EBITDA to Net Income (Loss)
and operating cash flows is available in the investor relations section of the
Company’s website at www.xerium.com. 11
Trailing Twelve Month (“TTM”) Adjusted EBITDA
|
 12
Trade Working Capital (“TWC”) as a Percent of
Revenue
Trade working capital % improved 70 basis points versus Q1 2011. TWC improved slightly to
$145.0M in Q1 2012 from $145.2M in 4Q 2011. The improvement reflects $2.4M in lower
accounts receivable, $1.2M of increased accounts payable offset by increased inventory of
$3.4M.
Note: a reconciliation of Trade Working Capital to Revenue is available in the investor relations
section of the Company’s website at www.xerium.com. |
 Total Xerium Annual Capital Expenditures
13
2009
2010
2011
2012
CAPEX
19.5
27.9
30.2
3.3
2012 Estimate
30.0
$0
$15
$30
$45
Capital expenditures for the quarter ended March 31, 2012 were $3.3M, consisting of
$1.3M in growth capex and $2.0M in maintenance capex. We are currently
targeting total capital expenditures for 2012 at approximately $30M.
|