Xerium Technologies, Inc.
Non-GAAP Reconciliations
The following table provides a reconciliation from GAAP net sales, as reported, to constant currency net sales for Q1 2012 through Q4 2014 (dollars in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Sales For The Quarter Ended |
| | 3/31/12 | | 6/30/12 | | 9/30/12 | | 12/31/12 | | 3/31/13 | | 6/30/13 | | 9/30/13 | | 12/31/13 | | 3/31/14 | | 6/30/14 | | 9/30/14 | | 12/31/14 |
| Net Sales | $ | 134,364 |
| | $ | 136,378 |
| | $ | 134,231 |
| | $ | 133,767 |
| | $ | 139,805 |
| | $ | 138,324 |
| | $ | 135,042 |
| | $ | 133,721 |
| | $ | 133,384 |
| | $ | 139,723 |
| | $ | 138,858 |
| | $ | 130,967 |
|
| Currency Impact | (8,772 | ) | | (5,733 | ) | | (4,657 | ) | | (7,820 | ) | | (5,465 | ) | | (4,492 | ) | | (4,565 | ) | | (5,759 | ) | | (5,254 | ) | | (5,650 | ) | | (3,981 | ) | | — |
|
| Constant Currency Net Sales | $ | 125,592 |
| | $ | 130,645 |
|
| $ | 129,574 |
| | $ | 125,947 |
| | $ | 134,340 |
| | $ | 133,832 |
| | $ | 130,477 |
| | $ | 127,962 |
| | $ | 128,130 |
| | $ | 134,073 |
| | $ | 134,877 |
| | $ | 130,967 |
|
The following table provides a reconciliation from GAAP orders, as reported, to constant currency orders for Q1 2012 through Q4 2014 (dollars in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Orders For The Quarter Ended |
| | 3/31/12 | | 6/30/12 | | 9/30/12 | | 12/31/12 | | 3/31/13 | | 6/30/13 | | 9/30/13 | | 12/31/13 | | 3/31/14 | | 6/30/14 | | 9/30/14 | | 12/31/14 |
| Orders | $ | 134,385 |
| | $ | 127,750 |
| | $ | 120,674 |
| | $ | 137,558 |
| | $ | 138,327 |
| | $ | 140,168 |
| | $ | 130,324 |
| | $ | 141,219 |
| | $ | 147,600 |
| | $ | 135,366 |
| | $ | 127,907 |
| | $ | 135,306 |
|
| Currency Impact | (10,863 | ) | | (8,707 | ) | | (7,698 | ) | | (9,586 | ) | | (9,934 | ) | | (8,491 | ) | | (6,673 | ) | | (8,190 | ) | | (6,490 | ) | | (5,909 | ) | | (4,370 | ) | | — |
|
| Constant Currency Orders | $ | 123,522 |
| | $ | 119,043 |
| | $ | 112,976 |
| | $ | 127,972 |
| | $ | 128,393 |
| | $ | 131,677 |
| | $ | 123,651 |
| | $ | 133,029 |
| | $ | 141,110 |
| | $ | 129,457 |
| | $ | 123,537 |
| | $ | 135,306 |
|
The following table provides a reconciliation from quarterly net (loss) income and operating cash flows, which are the most directly comparable GAAP financial measures to EBITDA and Adjusted EBITDA for Q1 2012 through Q4 2014 (dollars in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Adjusted EBITDA for the Quarter Ended |
| | 3/31/12 | | 6/30/12 | | 9/30/12 | | 12/31/12 | | 3/31/13 | | 6/30/13 | | 9/30/13 | | 12/31/13 | | 3/31/14 | | 6/30/14 | | 9/30/14 | | 12/31/14 |
| Net (loss) income | $ | (7,522 | ) | | $ | 2,226 |
| | $ | (3,657 | ) | | $ | (9,082 | ) | | $ | 5,485 |
| | $ | (6,879 | ) | | $ | 2,104 |
| | $ | 3,443 |
| | $ | 1,167 |
| | $ | 764 |
| | $ | (20,472 | ) | | $ | 11,160 |
|
| Stock-based compensation | 972 |
| | (218 | ) | | 820 |
| | 375 |
| | 295 |
| | 300 |
| | 547 |
| | 594 |
| | 509 |
| | 640 |
| | 709 |
| | 690 |
|
| Depreciation | 9,764 |
| | 9,429 |
| | 9,321 |
| | 10,019 |
| | 8,966 |
| | 8,702 |
| | 8,384 |
| | 8,579 |
| | 8,233 |
| | 8,534 |
| | 8,183 |
| | 7,802 |
|
| Amortization of intangibles | 576 |
| | 576 |
| | 576 |
| | 577 |
| | 576 |
| | 385 |
| | 407 |
| | 404 |
| | 416 |
| | 403 |
| | 231 |
| | 310 |
|
| Deferred financing cost amortization | 1,054 |
| | 682 |
| | 971 |
| | 717 |
| | 709 |
| | 909 |
| | 675 |
| | 670 |
| | 716 |
| | 751 |
| | 942 |
| | 895 |
|
| Foreign exchange loss (gain) on reval of debt | 8 |
| | 373 |
| | (214 | ) | | 415 |
| | (118 | ) | | 3,039 |
| | (1,296 | ) | | 81 |
| | (1,103 | ) | | 366 |
| | 396 |
| | 82 |
|
| Deferred tax expense | (182 | ) | | (179 | ) | | (22 | ) | | (7,866 | ) | | 282 |
| | 466 |
| | 591 |
| | (7,025 | ) | | (808 | ) | | (143 | ) | | 2,460 |
| | (6,367 | ) |
| Asset impairment | — |
| | — |
| | 1,600 |
| | 2,074 |
| | 928 |
| | 150 |
| | — |
| | 276 |
| | — |
| | — |
| | 277 |
| | (141 | ) |
| Loss (gain) on disp of property and equipment | (446 | ) | | (170 | ) | | (40 | ) | | 80 |
| | (10 | ) | | 3 |
| | 161 |
| | 48 |
| | 27 |
| | 1 |
| | (33 | ) | | (1,031 | ) |
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | (243 | ) | | — |
| | 3,123 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Net change in operating assets and liabilities | 5,928 |
| | (9,075 | ) | | 7,053 |
| | 12,052 |
| | (6,830 | ) | | (6,610 | ) | | 4,986 |
| | (1,386 | ) | | (6,394 | ) | | (5,163 | ) | | (292 | ) | | (7,824 | ) |
| Net cash provided by operating activities | 10,152 |
| | 3,644 |
| | 16,408 |
| | 9,118 |
| | 10,283 |
| | 3,588 |
| | 16,559 |
| | 5,684 |
| | 2,763 |
| | 6,153 |
| | (7,599 | ) | | 5,576 |
|
| Interest expense, excluding amortization | 8,544 |
| | 8,438 |
| | 8,806 |
| | 8,667 |
| | 8,497 |
| | 12,203 |
| | 8,703 |
| | 8,315 |
| | 7,941 |
| | 8,165 |
| | 8,650 |
| | 8,887 |
|
| Net change in operating assets and liabilities | (5,928 | ) | | 9,075 |
| | (7,053 | ) | | (12,052 | ) | | 6,830 |
| | 6,610 |
| | (4,986 | ) | | 1,386 |
| | 6,394 |
| | 5,163 |
| | 292 |
| | 7,824 |
|
| Current portion of income tax expense | 839 |
| | 2,533 |
| | 116 |
| | 1,199 |
| | 2,221 |
| | 3,023 |
| | 2,472 |
| | 2,333 |
| | 2,700 |
| | 2,472 |
| | 26,758 |
| | 3,008 |
|
| Stock-based compensation | (972 | ) | | 218 |
| | (820 | ) | | (375 | ) | | (295 | ) | | (300 | ) | | (547 | ) | | (594 | ) | | (509 | ) | | (640 | ) | | (709 | ) | | (690 | ) |
| Foreign exchange (loss) gain on reval of debt | (8 | ) | | (373 | ) | | 214 |
| | (415 | ) | | 118 |
| | (3,039 | ) | | 1,296 |
| | (81 | ) | | 1,103 |
| | (366 | ) | | (396 | ) | | (82 | ) |
| Asset impairment | — |
| | — |
| | (1,600 | ) | | (2,074 | ) | | (928 | ) | | (150 | ) | | — |
| | (276 | ) | | — |
| | — |
| | (277 | ) | | 141 |
|
| (Loss) gain on disp of property and equipment | 446 |
| | 170 |
| | 40 |
| | (80 | ) | | 10 |
| | (3 | ) | | (161 | ) | | (48 | ) | | (27 | ) | | (1 | ) | | 33 |
| | 1,031 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | 243 |
| | — |
| | (3,123 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| EBITDA | 13,073 |
| | 23,705 |
| | 16,111 |
| | 4,231 |
| | 26,736 |
| | 18,809 |
| | 23,336 |
| | 16,719 |
| | 20,365 |
| | 20,946 |
| | 26,752 |
| | 25,695 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | (243 | ) | | — |
| | 3,123 |
| | — |
| | — |
| | — |
| | — |
| | — |
| |
|
|
| Stock-based compensation | 972 |
| | (218 | ) | | 820 |
| | 375 |
| | 295 |
| | 300 |
| | 547 |
| | 594 |
| | 509 |
| | 640 |
| | 709 |
| | 690 |
|
| Operational restructuring expenses | 3,974 |
| | 1,129 |
| | 5,840 |
| | 14,765 |
| | 1,255 |
| | 4,165 |
| | 3,034 |
| | 6,390 |
| | 4,651 |
| | 7,595 |
| | 3,466 |
| | 2,430 |
|
| Non-restructuring impairment expense | — |
| | — |
| | — |
| | 1,195 |
| | 857 |
| | (191 | ) | | 1 |
| | — |
| | — |
| | — |
| | — |
| | |
| Inventory write-off related to a closed plant | — |
| | — |
| | — |
| | — |
| | — |
| | 692 |
| | — |
| | 262 |
| | — |
| | — |
| | — |
| | |
| Legal fees related to term debt amendment | — |
| | 85 |
| | 30 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | |
| Non-recurring CEO retirement expenses | 801 |
| | 695 |
| | 1,600 |
| | 289 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | |
| Plant startup costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 296 |
| | 105 |
| | 176 |
| | 240 |
| | 537 |
| | 568 |
|
| Adjusted EBITDA | $ | 18,820 |
| | $ | 25,396 |
| | $ | 24,401 |
| | $ | 20,612 |
| | $ | 29,143 |
| | $ | 26,898 |
| | $ | 27,214 |
| | $ | 24,070 |
| | $ | 25,701 |
| | $ | 29,421 |
| | $ | 31,464 |
| | $ | 29,383 |
|
The following tables provide a reconciliation from quarterly net (loss) income per share to quarterly adjusted net income per share at December 31, 2014 and December 31, 2013 (in thousands, except per share data):
|
| | | | | | | | | | | | | | | | | | |
| Earnings per Share (net of taxes) Q4 2014 |
| | As Reported | | Tax effects | | Adjusted | | Shares | | Per Share |
| Net Income | $ | 11,161 |
| | | | $ | 11,161 |
| | 15,459 |
| | $ | 0.72 |
|
| | | | | | | | | | |
| Adjustments: | | | | | | | | | |
| Restructuring expenses | 2,430 |
| | (832 | ) | | 1,598 |
| | 15,459 |
| | 0.10 |
|
| Plant start-up costs | 568 |
| | | | 568 |
| | 15,459 |
| | 0.04 |
|
| Valuation allowance reversal | | | (6,625 | ) | | (6,625 | ) | | 15,459 |
| | (0.43 | ) |
| Currency losses | (99 | ) | | 30 |
| | (69 | ) | | 15,459 |
| | — |
|
| Net Income, adjusted | $ | 14,060 |
| | $ | (7,427 | ) | | $ | 6,633 |
| | 15,459 |
| | $ | 0.43 |
|
|
| | | | | | | | | | | | | | | | | | |
| Earnings per Share (net of taxes) Q4 2013 |
| | As Reported | | Tax Effects | | Adjusted | | Shares | | Per Share |
| Net Income | $ | 3,443 |
| | | | $ | 3,443 |
| | 15,359 |
| | $ | 0.22 |
|
| | | | | | | | | | |
| Adjustments: | | | | | | | | | |
| Restructuring expenses | 6,390 |
| | $ | (1,051 | ) | | 5,339 |
| | 15,359 |
| | 0.34 |
|
| Plant start-up costs | 105 |
| | | | 105 |
| | 15,359 |
| | 0.01 |
|
| Valuation allowance reversal |
|
| | (6,200 | ) | | (6,200 | ) | | 15,359 |
| | (0.40 | ) |
| Goodwill amortization | | | (513 | ) | | (513 | ) | | 15,359 |
| | (0.03 | ) |
| Inventory write-off | 262 |
| | — |
| | 262 |
| | 15,359 |
| | 0.02 |
|
| Net income, adjusted | $ | 10,200 |
| | $ | (7,764 | ) | | $ | 2,436 |
| | 15,359 |
| | $ | 0.16 |
|
The following tables provide a reconciliation from trailing twelve month net (loss) income per share to adjusted net income per share at December 31, 2014 and December 31, 2013 (in thousands, except per share data):
|
| | | | | | | | | | | | | | | | | | |
| Earnings per Share (net of taxes) TTM Q4 2014 |
| | As Reported | | Tax effects | | Adjusted | | Shares | | Per Share |
| Net loss | $ | (7,382 | ) | | | | $ | (7,382 | ) | | 15,459 |
| | $ | (0.48 | ) |
| | | | | | | | | | |
| Adjustments: | | | | | | | | | |
| Restructuring expenses | 18,142 |
| | $ | (4,611 | ) | | 13,531 |
| | 15,459 |
| | 0.87 |
|
| Plant start-up costs | 1,521 |
| | | | 1,521 |
| | 15,459 |
| | 0.10 |
|
| Brazil tax amnesty |
|
| | $ | 23,078 |
| | 23,078 |
| | 15,459 |
| | 1.49 |
|
| Valuation allowance reversal | | | $ | (6,625 | ) | | (6,625 | ) | | 15,459 |
| | (0.43 | ) |
| Currency losses | 719 |
| | (216 | ) | | 503 |
| | 15,459 |
| | 0.03 |
|
| Net Income, adjusted | $ | 13,000 |
| | $ | 11,626 |
| | $ | 24,626 |
| | 15,459 |
| | $ | 1.58 |
|
|
| | | | | | | | | | | | | | | | | | |
| Earnings per Share (net of taxes) TTM Q4 2013 |
| | As Reported | | Tax effects | | Adjusted | | Shares | | Per Share |
| Net income | $ | 4,153 |
| | | | $ | 4,153 |
| | 15,359 |
| | $ | 0.27 |
|
| | | | | | | | | | |
| Adjustments: | | | | | | | | | |
| Restructuring expenses | 14,844 |
| | $ | (1,374 | ) | | 13,470 |
| | 15,359 |
| | 0.88 |
|
| Plant start-up costs | 401 |
| | | | 401 |
| | 15,359 |
| | 0.03 |
|
| Valuation allowance reversal | | | $ | (6,200 | ) | | (6,200 | ) | | 15,359 |
| | (0.40 | ) |
| Goodwill amortization | | | (2,050 | ) | | (2,050 | ) | | 15,359 |
| | (0.13 | ) |
| Debt extinguishment | 6,823 |
| | | | 6,823 |
| | 15,359 |
| | 0.44 |
|
| Inventory write-off | 954 |
| | | | 954 |
| | 15,359 |
| | 0.06 |
|
| Non-restructuring impairment | 667 |
| | | | 667 |
| | 15,359 |
| | 0.04 |
|
| Currency losses | 1,052 |
| | (316 | ) | | 736 |
| | 15,359 |
| | 0.04 |
|
| Net Income, adjusted | $ | 28,894 |
| | $ | (9,940 | ) | | $ | 18,954 |
| | 15,359 |
| | $ | 1.23 |
|
