Attached files
EXHIBIT 99.3
Xerium Technologies, Inc.
Reconciliation of Trailing Twelve Month Bank Adjusted EBITDA
| Q1 2007 |
Q2 2007 |
Q3 2007 |
Q4 2007 |
Q1 2008 |
Q2 2008 |
Q3 2008 |
Q4 2008 |
Q1 2009 |
Q2 2009 |
Q3 2009 |
Q4 2009 |
Q1 2010 |
Q2 2010 |
Q3 2010 |
Q4 2010 |
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| Net income (loss) |
$ | 3,041 | $ | 7,678 | $ | 7,076 | $ | (168,007 | ) | $ | (4,709 | ) | $ | 14,118 | $ | 21,536 | $ | (4,349 | ) | $ | (9,448 | ) | $ | 1,601 | $ | (7,381 | ) | $ | (96,765 | ) | $ | (30,157 | ) | $ | (40,011 | ) | $ | (3,656 | ) | $ | 738 | |||||||||||||||||||||||
| Income tax provision (benefit) |
1,401 | 4,604 | 3,208 | (11,558 | ) | 3,639 | 1,911 | 794 | (2,443 | ) | 3,892 | 2,697 | 3,424 | 2,304 | 2,136 | 5,050 | 4,318 | 6,761 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net |
12,187 | 11,155 | 13,995 | 15,789 | 25,221 | 766 | 16,230 | 16,287 | 15,957 | 15,570 | 16,425 | 19,348 | 15,644 | 16,865 | 12,020 | 12,265 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization |
10,999 | 11,230 | 11,465 | 11,846 | 12,003 | 11,956 | 11,738 | 10,231 | 9,788 | 10,130 | 10,851 | 11,098 | 10,451 | 10,090 | 10,222 | 10,520 | ||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA |
27,628 | 34,667 | 35,744 | (151,930 | ) | 36,154 | 28,751 | 50,298 | 19,726 | 20,189 | 29,998 | 23,319 | (64,015 | ) | (1,926 | ) | (8,006 | ) | 22,904 | 30,284 | ||||||||||||||||||||||||||||||||||||||||||||
| Unrealized foreign exchange gain on revaluation of debt |
19 | (20 | ) | 519 | 3,680 | (1,985 | ) | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Amendment/termination costs |
— | — | — | — | 800 | 5,198 | 483 | 285 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of interest rate swaps |
— | — | — | — | — | 13,704 | 450 | (468 | ) | (398 | ) | (397 | ) | (859 | ) | (2,164 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Changes in value of other derivatives |
— | — | (451 | ) | (3,503 | ) | (2,126 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Operational restructuring expenses |
4,133 | 1,220 | 805 | 1,186 | 532 | 2,651 | 1,817 | — | 114 | 1,026 | 87 | 1,184 | 1,567 | 1,796 | 1,199 | 2,552 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory write-offs under restructuring programs |
14 | 80 | (21 | ) | 75 | — | — | 199 | 256 | 103 | 142 | 104 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Growth program costs |
617 | 1,587 | 1,255 | 1,197 | 1,764 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash compensation and related expenses |
535 | 660 | 578 | (24 | ) | 471 | (197 | ) | 500 | 1,235 | 161 | 885 | 778 | 481 | 2,389 | 1,041 | 2,068 | 1,812 | ||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash impairment charges |
— | — | — | 185,689 | — | 67 | 405 | 3,517 | — | — | 1,667 | 80,602 | — | 748 | 2,123 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-recurring expenses resulting from cost reduction programs |
(102 | ) | 34 | — | 150 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Change in accounting policies |
— | — | — | — | — | — | — | — | — | — | — | — | (1,400 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Financial restructuring costs |
— | — | — | — | — | — | — | — | — | — | — | — | 9,563 | 15,251 | 799 | 584 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Write-off of deferred financing costs as “reorganization items” |
— | — | — | — | — | — | — | — | — | — | — | — | 14,283 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses incurred in connection with indebtedness or refinancing transaction |
— | — | — | — | — | — | — | — | — | — | — | — | — | 14,400 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA for the quarter |
$ | 32,844 | $ | 38,228 | $ | 38,429 | $ | 36,520 | $ | 35,610 | $ | 50,174 | $ | 54,152 | $ | 24,551 | $ | 20,169 | $ | 31,654 | $ | 25,096 | $ | 16,088 | $ | 24,476 | $ | 25,230 | $ | 29,093 | $ | 35,251 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA for the last twelve months (LTM) |
$ | 146,021 | $ | 148,787 | $ | 160,733 | $ | 176,456 | $ | 164,487 | $ | 149,046 | $ | 130,526 | $ | 101,470 | $ | 93,007 | $ | 97,314 | $ | 90,890 | $ | 94,887 | $ | 114,050 | ||||||||||||||||||||||||||||||||||||||
| (A | ) | (A | ) | (A | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note (A) — Adjusted EBITDA for the four quarters of 2010 and LTM for the year ended 2010 have been presented in accordance with the definition of Adjusted EBITDA in the Amended and Restated Credit Facility.
Adjusted EBITDA for Q4 2009 has been fixed by the Amended & Restated Credit Facility at $24,600. Had the LTM for the first three quarters of 2010 been presented in accordance with the Amended and Restated Credit Facility, LTM would have been $109,317, $102,222 and $103,399 for Q1 2010, Q2 2010 and Q3 2010, respectively.
Q1 2010 LTM would include $12,156 of addbacks for Q2 2009 through Q4 2009: $8,736 of financial restructuring costs and $3,420 for changes in fair value of interest rate swaps.
Q2 2010 LTM would include $11,485 of addbacks for Q3 2009 and Q4 2009: $8,462 of financial restructuring costs and $3,023 for changes in fair value of interest rate swaps.
Q3 2010 LTM would include add backs of $8,665 for Q4 2009: $6,501 of financial restructuring costs and $2,164 for changes in fair value of interest rate swaps.
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Xerium Technologies, Inc.
Reconciliation of Total Working Capital as a Percentage of Revenue
| Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | ||||||||||||||||||||||||||||
| Net Sales |
$ | 149,452 | $ | 116,503 | $ | 120,843 | $ | 130,308 | $ | 132,437 | $ | 135,015 | $ | 132,827 | $ | 135,899 | $ | 144,593 | ||||||||||||||||||
| Accounts Receivable |
$ | 100,574 | $ | 82,751 | $ | 83,216 | $ | 88,165 | $ | 83,602 | $ | 88,475 | $ | 83,268 | $ | 91,503 | $ | 93,332 | ||||||||||||||||||
| Inventory |
85,543 | 84,565 | 86,259 | 82,128 | 78,174 | 75,583 | 72,802 | 78,863 | 81,927 | |||||||||||||||||||||||||||
| Less: “Trade AP” (per calculation below) |
40,800 | 30,098 | 27,340 | 25,212 | 27,652 | 26,057 | 27,029 | 26,517 | 32,779 | |||||||||||||||||||||||||||
| Total Working Capital |
$ | 145,317 | $ | 137,218 | $ | 142,135 | $ | 145,081 | $ | 134,124 | $ | 138,001 | $ | 129,041 | $ | 143,849 | $ | 142,480 | ||||||||||||||||||
| % of Net Sales |
24.3 | % | 29.4 | % | 29.4 | % | 27.8 | % | 25.3 | % | 25.6 | % | 24.3 | % | 26.5 | % | 24.6 | % | ||||||||||||||||||
| Calculation of Trade AP |
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| Accounts Payable |
$ | 53,076 | $ | 35,184 | $ | 30,172 | $ | 27,703 | $ | 32,124 | $ | 30,488 | $ | 30,923 | $ | 31,991 | $ | 41,686 | ||||||||||||||||||
| Less: Deposits Received |
(2,558 | ) | (3,692 | ) | (2,074 | ) | (1,550 | ) | (2,014 | ) | (2,899 | ) | (2,394 | ) | (3,493 | ) | (3,415 | ) | ||||||||||||||||||
| Less: Other Payables |
(9,718 | ) | (1,394 | ) | (758 | ) | (941 | ) | (2,458 | ) | (1,532 | ) | (1,500 | ) | (1,981 | ) | (5,492 | ) | ||||||||||||||||||
| Trade AP |
$ | 40,800 | $ | 30,098 | $ | 27,340 | $ | 25,212 | $ | 27,652 | $ | 26,057 | $ | 27,029 | $ | 26,517 | $ | 32,779 | ||||||||||||||||||
Xerium Technologies, Inc.
Reconciliation of Selling, General & Administrative Expenses as a Percentage of Revenue, excluding Operational Restructuring Expense and Financial Restructuring Expense
| Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | ||||||||||||||||||||||||||||
| Net Sales |
$ | 149,452 | $ | 116,503 | $ | 120,843 | $ | 130,308 | $ | 132,437 | $ | 135,015 | $ | 132,827 | $ | 135,899 | $ | 144,593 | ||||||||||||||||||
| Calculation of Selling, General & Administrative Expense, excluding Operational Restructuring Expense: |
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| Selling Expense |
$ | 17,738 | $ | 16,508 | $ | 16,075 | $ | 16,991 | $ | 17,234 | $ | 18,042 | $ | 17,901 | $ | 18,043 | $ | 18,897 | ||||||||||||||||||
| General & Administrative Expense |
21,790 | 13,208 | 6,464 | 15,428 | 21,069 | 26,850 | 17,595 | 15,652 | 14,701 | |||||||||||||||||||||||||||
| Research & Development Expense |
2,631 | 2,720 | 2,740 | 2,708 | 3,141 | 2,868 | 2,952 | 2,887 | 2,720 | |||||||||||||||||||||||||||
| Total Selling and General & Administrative Expense, excluding Operational Restructuring Expenses |
$ | 42,159 | $ | 32,436 | $ | 25,279 | $ | 35,127 | $ | 41,444 | $ | 47,760 | $ | 38,448 | $ | 36,582 | $ | 36,318 | ||||||||||||||||||
| % of Net Sales, excluding Operational Restructuring Expense |
28.2 | % | 27.8 | % | 20.9 | % | 27.0 | % | 31.3 | % | 35.4 | % | 28.9 | % | 26.9 | % | 25.1 | % | ||||||||||||||||||
| Calculation of Selling, General & Administrative Expense, excluding Operational and Financial Restructuring Expense: |
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| Total Selling and General & Administrative Expense, excluding Operational Restructuring Expenses (calculated above) |
$ | 42,159 | $ | 32,436 | $ | 25,279 | $ | 35,127 | $ | 41,444 | $ | 47,760 | $ | 38,448 | $ | 36,582 | $ | 36,318 | ||||||||||||||||||
| Less: Financial Restructuring Expenses |
— | — | (274 | ) | (1,962 | ) | (6,500 | ) | (9,463 | ) | (459 | ) | — | — | ||||||||||||||||||||||
| Total Selling and General & Administrative Expense, excluding Operational and Financial Restructuring Expenses |
$ | 42,159 | $ | 32,436 | $ | 25,005 | $ | 33,165 | $ | 34,944 | $ | 38,297 | $ | 37,989 | $ | 36,582 | $ | 36,318 | ||||||||||||||||||
| % of Net Sales, excluding Operational and Financial Restructuring Expenses |
28.2 | % | 27.8 | % | 20.7 | % | 25.5 | % | 26.4 | % | 28.4 | % | 28.6 | % | 26.9 | % | 25.1 | % | ||||||||||||||||||