Xerium to establish a capital structure

09 Apr '08

3 min read

Xerium Technologies Inc, a leading global manufacturer of clothing and roll covers used primarily in the paper production process, reported results for the fourth quarter ended December 31, 2007. Highlights for the quarter include:
Loan Waiver

• On April 8, 2008, the Company obtained a temporary waiver from its lenders related to defaults under its credit facility, including financial covenant defaults that, as previously disclosed, the Company had anticipated at March 31, 2008. The waiver is in effect until May 31, 2008. The Company expects to utilize the waiver period to seek to make these waivers permanent and to seek to amend the financial covenants and other parameters in its credit facility.

• As disclosed on March 18, 2008, the Company determined not to declare a cash dividend on its common stock for the first quarter of 2008 and does not expect to do so for the foreseeable future. The credit facility waiver described above also amends the credit facility to prohibit the payment of dividends on the Company's common stock.

Financial Highlights
• Net sales for the fourth quarter of 2007 were $164.2 million, a 6.2% increase from $154.6 million for the fourth quarter of 2006.

• In the fourth quarter of 2007, the Company recorded a non-cash charge for goodwill impairment of $185.3 million related to its roll covers segment.

• Reflecting the impairment charge, Xerium reported a net loss in the fourth quarter of 2007 of $168.0 million, or $3.69 per diluted share, compared to net income of $3.5 million, or $0.08 per diluted share, for the fourth quarter of 2006. Shares used in computing diluted EPS were 45.5 million for the fourth quarter of 2007 compared to 44.0 million for the fourth quarter of 2006.

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