Attached files
 Xerium Technologies Inc.
December 2010
Selected Data –
Earnings Call
March 9, 2011
EXHIBIT 99.2 |
 Forward Looking Statements
•
This presentation contains forward-looking statements involving risks and
uncertainties,
both
known
and
unknown,
that
may
cause
the
actual
results
to differ materially from those indicated.
•
Actual results may differ materially due to a number of factors,
including
those factors discussed in our earnings press release dated March 9, 2011,
and other factors discussed in our filings with the SEC. 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
fourth quarter 2010 financial results conference call, our earnings release
dated March 9, 2011 and 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 |
 3
Dec 09
Jan 10
Feb 10
Mar 10
Apr 10
May 10
Jun 10
Jul 10
Aug 10
Sept 10
Oct 10
Nov 10
Dec 10
13 Months
46,879
48,846
50,516
51,631
46,221
47,989
49,462
47,518
43,925
51,232
48,259
48,137
46,369
6 Months
47,518
43,925
51,232
48,259
48,137
46,369
3 Months
48,259
48,137
46,369
35,000
40,000
45,000
50,000
55,000
60,000
Bookings
Analysis
–
Total
Xerium
3, 6 & 13 Month Trend Lines
After a strong first quarter 2010, new order bookings return to fourth quarter 2009
levels, which represented
a
significant
increase
from
the
first
three
quarters
of
2009.
Bookings
in
2010
have
been negatively influenced as compared to 2009 by dollar/Euro exchange rate.
|
 4
Bookings
Analysis
–
Roll
Coverings
3, 6 & 13 Month Trend Lines
Consolidated new order bookings indicate our served market is recovering and has
begun to show signs of stability after operating in a tight band since
January 2010. Bookings in 2010 have been negatively influenced as
compared to 2009 by the dollar/Euro exchange rate. |
 5
Bookings
Analysis
–
Paper
Machine
Clothing
3, 6 & 13 Month Trend Lines
New order bookings are slightly lower than December 2009 levels.
We continue to monitor
customer inventory levels. Bookings in 2010 have been negatively influenced
as compared to 2009 by the dollar/Euro exchange rate.
|
 6
Total Xerium Quarterly Sales as Reported
'07 Q4
'08 Q1
'08 Q2
'08 Q3
'08 Q4
'09 Q1
'09 Q2
'09 Q3
'09 Q4
'10 Q1
'10 Q2
'10 Q3
'10 Q4
Qtr Sales $
164.2
158.9
170.4
159.3
149.5
116.5
120.8
130.3
132.4
135.0
132.8
135.9
144.6
Year-over-Year
-26.7%
-29.1%
-18.2%
-11.4%
15.9%
9.9%
4.3%
9.2%
$0
$30
$60
$90
$120
$150
$180
000’s
Sequentially,
Q4
2010
sales
have
increased
6.4%
over
Q3
2010
and
9.2%
over
Q4
2009
due
mainly to higher product demand. |
 7
Trailing Twelve Month (“LTM”) Adjusted EBITDA
Adjusted
EBITDA
at
each
quarter
was
the
amount
as
calculated
per
the
definition
in
the
credit
agreement
in
effect
at
that
time.
FY2010
quarterly
results
and
the
LTM
for
FY
2010
have
been
presented
as
defined
per
the
amended
and
restated
credit
facility.
Had
the
definitions
per
the
amended
and
restated
facility
been
in
place
in
2009,
the
LTM
for
the
first
three
quarters
of
2010
would
have
been
$109,317,
$102,222,
and
$103,399,
respectively.
Adjusted
EBITDA
for
Q4
2009
has
been
fixed by
the Amended Restated Credit Facility at $24,600.
Note:
a
reconciliation
of
Trailing
Twelve
Month
Adjusted
EBITDA
to
Net
Income
(Loss)
is
available
in
the
investor
relations
section
of
the
Company’s
website
at
www.xerium.com. |
 8
Sales Price Change as a Percent of Revenue
-3.0%
-2.5%
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
07 Q4
08 Q1
08 Q2
08 Q3
08 Q4
'09 Q1
'09 Q2
'09 Q3
09 Q4
10 Q1
10 Q2
10 Q3
10 Q4
Global Economic Downturn
Note
–
Data
compares
as
a
%
sales
price
achieved
current
year
compared
to
prior
year
The
pricing
environment
is
steadily
improving
resulting
from
our
selling
disciplines,
customers’
recognition
of
the
value
of
our
new
products,
and
general
market
recovery. |
 9
New Product Sales as a Percent of Revenue
'09 Q2
'09 Q3
09 Q4
10 Q1
10 Q2
10 Q3
10 Q4
Clothing
23.9%
28.4%
27.0%
31.5%
33.3%
41.0%
47.7%
Rolls
13.1%
13.3%
14.9%
22.3%
23.5%
24.8%
26.2%
10%
20%
30%
40%
50%
Meaningful progress continues on Xerium’s goal to increase its technological
leadership. Our goal is to derive 60% of XRM’s sales revenue from
new products (those developed within the prior
five
years)
that
make
a
measurable
improvement
in
customer
performance
while
simultaneously reducing our operating costs.
$ 43.8M
$ 13.8M |
 S G
& A as a Percent of Revenue, excluding Operational & Financial
Restructuring Expenses '08 Q4
'09 Q1
'09 Q2
'09 Q3
09 Q4
10 Q1
10 Q2
10 Q3
10 Q4
SG&A % (A)
28.2%
27.8%
20.9%
27.0%
31.3%
35.4%
28.9%
26.9%
25.1%
15%
20%
25%
30%
35%
40%
’10 Q4
Sales = $144.6 M
’08 Q4
Sales = $149.5 M
’09 Q4
Sales = $132.4 M
(A)
Excludes operational restructuring expenses
(B)
Excludes operational restructuring expenses and financial restructuring
expenses. Note –
a reconciliation of SG&A as a percentage of revenue excluding (A) operational
restructuring expenses and (B) operational and financial restructuring
expenses is available in the investor relations section of the Company’s website at www.xerium.com.
SG&A % (B)
28.2% 27.8% 20.7% 25.5%
26.4% 28.4% 28.6% 26.9% 25.1%
10
Cost controls over SG&A spending have proven effective relative to significant
2009 sales volume changes. |
 11
Total Working Capital as a Percent of Revenue
'08 Q4
'09 Q1
'09 Q2
'09 Q3
'09 Q4
'10 Q1
'10 Q2
'10 Q3
'10 Q4
Revenue 000's
149.5
116.5
120.8
130.3
132.4
135.0
132.8
135.9
144.6
TWC%
24.3%
29.4%
29.4%
27.8%
25.3%
25.6%
24.3%
26.5%
24.6%
$100
$110
$120
$130
$140
$150
$160
15%
20%
25%
30%
35%
2008’s progress in reducing TWC was reset by the precipitous and sudden
decline in demand during 2009. TWC % has improved 70 basis points this
quarter as compared with Q4 2009. (Note: a reconciliation of Total
Working Capital to Revenue is available in the investor relations section of the Company’s website at www.xerium.com. |
 12
Total Xerium Annual Capital Expenditures
2006
2007
2008
2009
2010
CAPEX
32.5
47.9
39.0
19.5
27.9
2010 Budget
32.0
$0
$15
$30
$45
000's
Our
controls
over
capital
investment
were
effective
throughout
2009
and
into
2010
in
prioritizing
only
investments
that
were
essential
to
supporting
our
customers
and
the
continued
development of our new products. |
 13
Total Debt at Constant FX Rates
Note –
Total Debt converted at Q4 2010 FX rates for all periods presented (Euro =
USD $1.33, Canadian Dollar = USD $1.00) Q2 ’10 reflects the net
reduction related to our voluntary pre-packaged chapter 11 plan of
reorganization, from which we emerged on May 25, 2010
|