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

EXHIBIT 99.3

Xerium Technologies, Inc.

Reconciliation of Trailing Twelve Month Bank Adjusted EBITDA

	Q2 2006			Q3 2006			Q4 2006			Q1 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
Net income (loss)	$	13,105		$	2,240		$	3,508		$	3,041		$	(168,007	)	$	(4,709	)	$	14,118		$	21,536	$	(4,349	)	$	(9,448	)	$	1,601		$	(7,381	)	$	(96,765	)	$	(30,157	)	$	(40,011	)	$	(3,656	)
Income tax provision (benefit)		3,686			1,963			2,510			1,401			(11,558	)		3,639			1,911			794		(2,443	)		3,892			2,697			3,424			2,304			2,136			5,050			4,318
Interest expense, net		8,386			14,484			10,930			12,187			15,789			25,221			766			16,230		16,287			15,957			15,570			16,425			19,348			15,644			16,865			12,020
Depreciation and amortization		11,313			11,619			11,480			10,999			11,846			12,003			11,956			11,738		10,231			9,788			10,130			10,851			11,098			10,451			10,090			10,222
EBITDA		36,490			30,306			28,428			27,628			(151,930	)		36,154			28,751			50,298		19,726			20,189			29,998			23,319			(64,015	)		(1,926	)		(8,006	)		22,904
Unrealized foreign exchange gain on revaluation of debt		1,465	��		(322	)		(571	)		19			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		—			—			—			—			(3,503	)		(2,126	)		—			—		—			—			—			—			—			—			—			—
Operational restructuring expenses		176			1,274			969			4,133			1,186			532			2,651			1,817		—			114			1,026			87			1,184			1,567			1,796			1,199
Inventory write-offs under restructuring programs		—			—			—			14			75			—			—			199		256			103			142			104			—			—			—			—
Growth program costs		—			—			—			617			1,197			1,764			—			—		—			—			—			—			—			—			—			—
Non-cash compensation and related expenses		779			389			561			535			(24	)		471			(197	)		500		1,235			161			885			778			481			2,389			1,041			2,068
Non-cash impairment charges		—			—			2,095			—			185,689			—			67			405		3,517			—			—			1,667			80,602			—			748			2,123
Non-recurring expenses resulting from cost reduction programs		1,030			561			5,009			(102	)		150			—			—			—		—			—			—			—			—			—			—			—
Change in accounting policies		—			—			—			—			—			—			—			—		—			—			—			—			—			(1,400	)		—			—
Financial restructuring costs		—			—			—			—			—			—			—			—		—			—			—			—			—			9,563			15,251			799
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		$	36,520		$	35,610		$	50,174		$	54,152	$	24,551		$	20,169		$	31,654		$	25,096		$	16,088		$	24,476		$	25,230		$	29,093
Adjusted EBITDA for the last twelve months (LTM)										$	141,599		$	146,021		$	148,787		$	160,733		$	176,456	$	164,487		$	149,046		$	130,526		$	101,470		$	93,007		$	109,411		$	102,222		$	103,399
																																								(A	)		(A	)		(A	)

Note (A) — Adjusted EBITDA for Q1 2010, Q2 2010, Q3 2010 and LTM for Q1 2010, Q2 2010 and Q3 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. LTM for Q3 2010 includes addbacks/(deductions) for Q409 through Q310 that were not applicable under the definition of Adjusted EBITDA under the pre-petition credit facility: $6,501 of financial restructuring costs, $2,164 for changes in fair value of interest rate swaps and ($153) pertaining to other deductions. Adjusted EBITDA for all other periods has been presented in accordance with the definition of Adjusted EBITDA under the credit facility in effect at that time. Therefore, Adjusted EBITDA for those periods may not be comparable to Adjusted EBITDA for Q1, Q2, or Q3 2010 or LTM Q1, Q2, or Q3 2010.

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EXHIBIT 99.3

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			Q3 2010
Net Sales	$	170,393		$	159,307		$	149,452		$	116,503		$	120,843		$	130,308		$	132,437		$	135,015		$	132,827		$	135,899
Accounts Receivable	$	118,511		$	105,419		$	100,574		$	82,751		$	83,216		$	88,165		$	83,602		$	88,475		$	83,268		$	91,503
Inventory		118,328			96,245			85,543			84,565			86,259			82,128			78,174			75,583			72,802			78,863
Less: “Trade AP” (per calculation below)		40,130			33,933			40,800			30,098			27,340			25,212			27,652			26,057			27,029			26,517
Total Working Capital	$	196,709		$	167,731		$	145,317		$	137,218		$	142,135		$	145,081		$	134,124		$	138,001		$	129,041		$	143,849
% of Net Sales		28.9	%		26.3	%		24.3	%		29.4	%		29.4	%		27.8	%		25.3	%		25.6	%		24.3	%		26.5	%
Calculation of Trade AP
Accounts Payable	$	46,102		$	39,968		$	53,076		$	35,184		$	30,172		$	27,703		$	32,124		$	30,488		$	30,923		$	31,991
Less:Deposits Received		(3,257	)		(4,243	)		(2,558	)		(3,692	)		(2,074	)		(1,550	)		(2,014	)		(2,899	)		(2,394	)		(3,493	)
Less: Other Payables		(2,715	)		(1,792	)		(9,718	)		(1,394	)		(758	)		(941	)		(2,458	)		(1,532	)		(1,500	)		(1,981	)
Trade AP	$	40,130		$	33,933		$	40,800		$	30,098		$	27,340		$	25,212		$	27,652		$	26,057		$	27,029		$	26,517

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Xerium Technologies, Inc.

Reconciliation of Selling, General & Administrative Expenses as a Percentage of Revenue, excluding Operational Restructuring Expense and Financial Restructuring Expense

	Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010			Q2 2010			Q3 2010
Net Sales	$	159,307		$	149,452		$	116,503		$	120,843		$	130,308		$	132,437		$	135,015		$	132,827		$	135,899
Calculation of Selling, General & Administrative Expense, excluding Operational Restructuring Expense:
Selling Expense	$	20,125		$	17,738		$	16,508		$	16,075		$	16,991		$	17,234		$	18,042		$	17,901		$	18,043
General & Administrative Expense		28,265			21,790			13,208			6,464			15,428			21,069			26,850			17,595			15,652
Research & Development Expense		2,910			2,631			2,720			2,740			2,708			3,141			2,868			2,952			2,887
Total Selling and General & Administrative Expense, excluding Operational Restructuring Expenses	$	51,300		$	42,159		$	32,436		$	25,279		$	35,127		$	41,444		$	47,760		$	38,448		$	36,582
% of Net Sales, excluding Operational Restructuring Expense		32.2	%		28.2	%		27.8	%		20.9	%		27.0	%		31.3	%		35.4	%		28.9	%		26.9	%
Calculation of Selling, General & Administrative Expense, excluding Operational and Financial Restructuring Expense:
Total Selling and General & Administrative Expense, excluding Operational Restructuring Expenses (calculated above)	$	51,300		$	42,159		$	32,436		$	25,279		$	35,127		$	41,444		$	47,760		$	38,448		$	36,582
Less: Financial Restructuring Expenses		(151	)		(21	)		—			(274	)		(1,962	)		(6,500	)		(9,463	)		(459	)		—
Total Selling and General & Administrative Expense, excluding Operational and Financial Restructuring Expenses	$	51,149		$	42,138		$	32,436		$	25,005		$	33,165		$	34,944		$	38,297		$	37,989		$	36,582
% of Net Sales, excluding Operational and Financial Restructuring Expenses		32.1	%		28.2	%		27.8	%		20.7	%		25.5	%		26.4	%		28.4	%		28.6	%		26.9	%