Xerium (XRM) 8-K Xerium Technologies Reports Second Quarter Results

EXHIBIT 99.3

Xerium Technologies, Inc.

Reconciliation of Trailing Twelve Month Bank Adjusted EBITDA

	Q2 2006		Q3 2006			Q4 2006			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
Net income (loss)	$	13,105	$	2,240		$	3,508		$	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	)
Income tax provision (benefit)		3,686		1,963			2,510			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
Interest expense, net		8,386		14,484			10,930			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
Depreciation and amortization		11,313		11,619			11,480			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
EBITDA		36,490		30,306			28,428			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	)
Unrealized foreign exchange gain on revaluation of debt		1,465		(322	)		(571	)		19			(20	)		519			3,680			(1,985	)		—			—		—			—			—			—			—			—			—
Amendment/termination costs		—		—			116			—			—			—			—			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		176		1,274			969			4,133			1,220			805			1,186			532			2,651			1,817		—			114			1,026			87			1,184			1,567			2,544
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		779		389			561			535			660			578			(24	)		471			(197	)		500		1,235			161			885			778			481			2,389			1,041
Non-cash impairment charges		—		—			2,095			—			—			—			185,689			—			67			405		3,517			—			—			1,667			80,602			—			—
Non-recurring expenses resulting from cost reduction programs		1,030		561			5,009			(102	)		34			—			150			—			—			—		—			—			—			—			—			—			—
Change in accounting policies		—		—			—			—			—			—			—			—			—			—		—			—			—			—			—			(1,400	)		—
Financial restructuring costs		—		—			—			—			—			—			—			—			—			—		—			—			—			—			—			9,563			15,251
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	$	39,940	$	32,208		$	36,607		$	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
Adjusted EBITDA for the last twelve months (LTM)									$	141,599		$	139,887		$	146,108		$	146,021		$	148,787		$	160,733		$	176,456	$	164,487		$	149,046		$	130,526		$	101,470		$	93,007		$	109,411		$	102,222
																																													(A	)		(A	)

Note (A) — Adjusted EBITDA for Q1 2010 and Q2 2010 and LTM for Q1 2010 and Q2 2010 have been presented in accordance with the definition of Adjusted EBITDA in the Amended and Restated Credit Facility. Adjusted EBITDA for Q409 has been fixed by the Amended & Restated Credit Facility at $24,600. LTM for Q1 2010 includes $12,097 of addbacks/(deductions) for Q209 through Q409 that were not applicable under the definition of Adjusted EBITDA under the pre-petition credit facility: $8,736 of financial restructuring costs, $3,420 for changes in fair value of interest rate swaps and ($59) pertaining to other deductions. LTM for Q2 2010 includes $11,332 of addbacks/(deductions) for Q309 and Q409 that were not applicable under the definition of Adjusted EBITDA under the pre-petition credit facility: $8,462 of financial restructuring costs, $3,023 for changes in fair value of interest rate swaps and ($153) pertaining to other deductions.

Xerium Technologies, Inc.

Reconciliation of Total Working Capital as a Percentage of Revenue

	Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010
Net Sales	$	170,393		$	159,307		$	149,452		$	116,503		$	120,843		$	130,308		$	132,437		$	135,015		$	132,827
Accounts Receivable	$	118,511		$	105,419		$	100,574		$	82,751		$	83,216		$	88,165		$	83,602		$	88,475		$	83,268
Inventory		118,328			96,245			85,543			84,565			86,259			82,128			78,174			75,583			72,802
Less: “Trade AP” (per calculation below)		40,130			33,933			40,800			30,098			27,340			25,212			27,652			26,057			27,029
Total Working Capital	$	196,709		$	167,731		$	145,317		$	137,218		$	142,135		$	145,081		$	134,124		$	138,001		$	129,041
% of Net Sales		28.9	%		26.3	%		24.3	%		29.4	%		29.4	%		27.8	%		25.3	%		25.6	%		24.3	%
Calculation of Trade AP
Accounts Payable	$	46,102		$	39,968		$	53,076		$	35,184		$	30,172		$	27,703		$	32,124		$	30,488		$	30,923
Less: Deposits Received		(3,257	)		(4,243	)		(2,558	)		(3,692	)		(2,074	)		(1,550	)		(2,014	)		(2,899	)		(2,394	)
Less: Other Payables		(2,715	)		(1,792	)		(9,718	)		(1,394	)		(758	)		(941	)		(2,458	)		(1,532	)		(1,500	)
Trade AP	$	40,130		$	33,933		$	40,800		$	30,098		$	27,340		$	25,212		$	27,652		$	26,057		$	27,029