Xerium Technologies Q1 sales rise 4%

- Restructuring expenses were $1.3 million in the first quarter of 2013. These included charges relating to previously announced headcount reductions, the closure of a roll covering facility in France and the closure of a clothing facility in Argentina

- Interest expense was $9.2 million for the first quarter of 2013 compared to $9.6 million for the first quarter of 2012, as the decline in debt balances was partially offset by higher interest rates in the first quarter of 2013 due to the credit facility amendment executed in June 2012. In addition, cash interest expense, or interest expense less amortization of deferred financing costs, was $8.5 million for the first quarter of 2013 and 2012.

- Income tax provision increased to $2.5 million in the first quarter of 2013 from a $0.7 million provision in the first quarter of 2012. The increase in income tax expense reflects the improvement in our pretax results in the first quarter of 2013. Our overall effective tax rate for the first quarter was 31.3% and reflects the fact that we have losses in certain jurisdiction were we receive no tax benefit.

- Net income for the first quarter of 2013 was $5.5 million or $0.36 per diluted share, compared to net loss of $(7.5) million or $(0.50) per diluted share for the first quarter of 2012.

- Adjusted EBITDA (as defined by the Company’s credit facility) of $29.1 million increased $8.5 million or 41.3% in the first quarter from $20.6 million in the fourth quarter of 2012, and increased $10.3 million or 54.8% from $18.8 million in the first quarter of 2012. See "Non-GAAP Financial Measures" below.

- Cash at March 31, 2013 was $40.8 million, compared to $34.8 million at December 31, 2012. The increase of $6.0 million in the cash balances was primarily due to cash provided by operating activities of $10.3 million and proceeds from the disposition of machinery of $0.3 million, partially offset by capital expenditures of $3.7 million, $0.6 million in repayments of debt and unfavorable currency effects of $0.3 million. Included as a reduction to cash provided by operating activities was $4.7 million in cash payments for restructuring activities.

-Trade working capital at March 31, 2013 was $138.7 million compared to $131.1 million at December 31, 2012. This increase was the result of the increased sales volume impact on accounts receivables, a decrease in accounts payable partially offset by decreased inventories. See “Trade Working Capital Information” and “Non-GAAP Financial Measures” below for further discussion.

- Total Debt at March 31, 2013 was $441.7 million compared to $445.0 million at December 31, 2012. The decrease of $3.3 million is primarily due to favorable currency effects and a paydown of approximately $0.6 million in the first quarter of 2013.

- Capital expenditures for the quarter ended March 31, 2013 were $3.7 million and $3.3 million for the same period in 2012. We are currently targeting total capital expenditures for 2013 at approximately $34.0 million.

Xerium Technologies