Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | XRM | |
Entity Registrant Name | XERIUM TECHNOLOGIES INC | |
Entity Central Index Key | 1287151 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,593,708 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $8,826 | $9,517 |
Accounts receivable, net | 77,969 | 83,069 |
Inventories, net | 75,811 | 83,550 |
Prepaid expenses | 8,138 | 8,472 |
Other current assets | 14,523 | 15,714 |
Total current assets | 185,267 | 200,322 |
Property and equipment, net | 291,590 | 303,617 |
Goodwill | 56,262 | 61,927 |
Intangible assets | 10,717 | 11,707 |
Non-current deferred tax asset | 8,485 | 10,662 |
Other assets | 8,700 | 5,809 |
Total assets | 561,021 | 594,044 |
Current liabilities: | ||
Notes payable | 3,267 | 244 |
Accounts payable | 37,070 | 41,827 |
Accrued expenses | 57,763 | 56,109 |
Current maturities of long-term debt | 5,627 | 4,406 |
Total current liabilities | 103,727 | 102,586 |
Long-term debt, net of current maturities | 460,279 | 460,840 |
Liabilities under capital leases | 4,395 | 3,945 |
Non-current deferred tax liability | 7,321 | 10,416 |
Pension, other post-retirement and post-employment obligations | 75,215 | 80,471 |
Other long-term liabilities | 12,991 | 9,896 |
Commitments and contingencies | ||
Stockholders’ deficit | ||
Preferred stock, $0.001 par value, 1,000,000 shares authorized; no shares outstanding as of March 31, 2015 and December 31, 2014 | 0 | 0 |
Common stock, $0.001 par value, 20,000,000 shares authorized; 15,593,708 and 15,560,627 shares outstanding as of March 31, 2015 and December 31, 2014, respectively | 16 | 16 |
Paid-in capital | 429,481 | 428,880 |
Accumulated deficit | -415,335 | -417,068 |
Accumulated other comprehensive loss | -117,069 | -85,938 |
Total stockholders’ deficit | -102,907 | -74,110 |
Total liabilities and stockholders’ deficit | $561,021 | $594,044 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 15,593,708 | 15,560,627 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net Sales | $121,029 | $133,384 |
Costs and expenses: | ||
Cost of products sold | 72,476 | 81,218 |
Selling | 16,326 | 18,178 |
General and administrative | 13,846 | 14,797 |
Research and development | 1,962 | 1,946 |
Restructuring | 2,224 | 4,651 |
Costs and expenses | 106,834 | 120,790 |
Income from operations | 14,195 | 12,594 |
Interest expense, net | -9,664 | -8,657 |
Foreign exchange gain (loss) | 977 | -877 |
Income before provision for income taxes | 5,508 | 3,060 |
Provision for income taxes | -3,775 | -1,893 |
Net income | 1,733 | 1,167 |
Comprehensive loss | ($29,398) | ($758) |
Net income per share: | ||
Basic (in dollars per share) | $0.11 | $0.08 |
Diluted (in dollars per share) | $0.11 | $0.07 |
Shares used in computing net income per share: | ||
Basic (in shares) | 15,560,995 | 15,391,391 |
Diluted (in shares) | 16,479,368 | 16,371,772 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net income | $1,733 | $1,167 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 822 | 509 |
Depreciation | 7,163 | 8,233 |
Amortization of intangibles | 79 | 416 |
Deferred financing cost amortization | 875 | 716 |
Foreign exchange gain on revaluation of debt | -1,973 | -1,103 |
Deferred taxes | 979 | -808 |
Loss on disposition of property and equipment | 14 | 27 |
Provision for doubtful accounts | 472 | 245 |
Change in assets and liabilities which provided (used) cash: | ||
Accounts receivable | -592 | -7,052 |
Inventories | 1,436 | -4,048 |
Prepaid expenses | 25 | 1,600 |
Other current assets | -1,679 | 819 |
Accounts payable and accrued expenses | 2,218 | 4,202 |
Deferred and other long-term liabilities | -3,571 | -2,160 |
Net cash provided by operating activities | 8,001 | 2,763 |
Investing activities | ||
Capital expenditures | -12,155 | -10,494 |
Proceeds from disposals of property and equipment | 32 | 43 |
Net cash used in investing activities | -12,123 | -10,451 |
Financing activities | ||
Proceeds from borrowings | 22,568 | 7,580 |
Principal payments on debt | -18,331 | -6,600 |
Payment of financing fees | -25 | -710 |
Payment of obligations under capital leases | -265 | -190 |
Net cash provided by financing activities | 3,947 | 80 |
Effect of exchange rate changes on cash flows | -516 | -95 |
Net decrease in cash | -691 | -7,703 |
Cash and cash equivalents at beginning of period | 9,517 | 25,716 |
Cash and cash equivalents at end of period | 8,826 | 18,013 |
Non-cash capitalized lease asset and liability | 0 | 4,468 |
Accrued construction in process | $1,519 | $0 |
Description_of_Business_and_Si
Description of Business and Significant Accounting Policies | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies | |||||||||||||||||||
Description of Business | ||||||||||||||||||||
Xerium Technologies, Inc. (the "Company") is a leading global provider of industrial consumables and mechanical services used in the production of paper, paperboard, building products and nonwoven materials. Its operations are strategically located in the major paper-making regions of the world, including North America, Europe, South America and Asia-Pacific. | ||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||
The accompanying unaudited condensed consolidated interim financial statements at March 31, 2015 and for the three months ended March 31, 2015 and 2014 include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, such financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. The interim results presented herein are not necessarily indicative of the results to be expected for the entire year. In management’s opinion, these unaudited condensed consolidated interim financial statements contain all adjustments of a normal recurring nature necessary for a fair presentation of the financial statements for the interim periods presented. These unaudited consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2014 as reported on the Company's Annual Report on Form 10-K filed on March 4, 2015. | ||||||||||||||||||||
Accounting Policies | ||||||||||||||||||||
Inventories, net | ||||||||||||||||||||
Inventories are generally valued at the lower of cost or market using the first-in, first-out (FIFO) method. Raw materials are valued principally on a weighted average cost basis. The Company’s work in process and finished goods are specifically identified and valued based on actual inputs to production. Provisions are recorded as appropriate to write-down obsolete and excess inventory to estimated net realizable value. The process for evaluating obsolete and excess inventory often requires management to make subjective judgments and estimates concerning future sales levels, quantities and prices at which such inventory will be able to be sold in the normal course of business, while considering the general aging of inventory and factoring in any new business conditions. | ||||||||||||||||||||
The components of inventories are as follows at: | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Raw materials | $ | 13,229 | $ | 18,018 | ||||||||||||||||
Work in process | 27,504 | 28,756 | ||||||||||||||||||
Finished goods (includes consigned inventory of $8,586 at March 31, 2015 and $8,582 at December 31, 2014) | 41,262 | 43,072 | ||||||||||||||||||
Inventory allowances | (6,184 | ) | (6,296 | ) | ||||||||||||||||
$ | 75,811 | $ | 83,550 | |||||||||||||||||
Goodwill | ||||||||||||||||||||
The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, Intangibles—Goodwill and Other Intangible Assets (“Topic 350”). Topic 350 requires that goodwill and intangible assets that have indefinite lives not be amortized, but instead, must be tested for impairment at least annually or whenever events or business conditions warrant. During the three months ended March 31, 2015, the Company evaluated events and business conditions to determine if a test for an impairment of goodwill was warranted. No such events or business conditions took place during this period, therefore no test was determined to be warranted at March 31, 2015. | ||||||||||||||||||||
Warranties | ||||||||||||||||||||
The Company offers warranties on certain roll products that it sells. The specific terms and conditions of these warranties vary depending on the product sold, the country in which the product is sold and arrangements with the customer. The Company estimates the costs that may be incurred under its warranties and records a liability in Accrued Expenses on its Consolidated Balance Sheet for such costs. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, cost per claim and new product introduction. The Company periodically assesses the adequacy of its recorded warranty claims and adjusts the amounts as necessary. The table below represents the changes in the Company’s warranty liability for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||
Beginning Balance | Charged to | Effect of Foreign | Deduction | Ending Balance | ||||||||||||||||
Cost | Currency | from | ||||||||||||||||||
of Sales | Translation | Reserves | ||||||||||||||||||
Three Months Ended March 31, 2015: | $ | 2,685 | $ | 336 | $ | (118 | ) | $ | (578 | ) | $ | 2,325 | ||||||||
Three Months Ended March 31, 2014: | $ | 1,629 | $ | 327 | $ | (5 | ) | $ | (422 | ) | $ | 1,529 | ||||||||
Net Income Per Common Share | ||||||||||||||||||||
Net income per common share has been computed and presented pursuant to the provisions of ASC Topic 260, Earnings per Share (“Topic 260”). Net income per share is based on the weighted-average number of shares outstanding during the period. As of March 31, 2015 and 2014, the Company had outstanding restricted stock units (“RSUs”), deferred stock units (“DSUs”) and options. | ||||||||||||||||||||
The following table sets forth the computation of basic and diluted weighted-average shares: | ||||||||||||||||||||
Three Months ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Weighted-average common shares outstanding–basic | 15,560,995 | 15,391,391 | ||||||||||||||||||
Dilutive effect of stock-based compensation awards outstanding | 918,373 | 980,381 | ||||||||||||||||||
Weighted-average common shares outstanding–diluted | 16,479,368 | 16,371,772 | ||||||||||||||||||
Dilutive securities aggregating 21,957 and 1.7 million were outstanding for the three months ended March 31, 2015 and 2014, but were not included in the computation of diluted earnings per share for the three months ended March 31, 2015, and 2014 because the impact of including such shares would have been anti-dilutive to the earnings per share calculations. | ||||||||||||||||||||
Impairment | ||||||||||||||||||||
The Company reviews its long-lived assets that have finite lives for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment (“Topic 360”). This topic requires that companies evaluate the fair value of long-lived assets based on the anticipated undiscounted future cash flows to be generated by the assets when indicators of impairment exist to determine if there is impairment to the carrying value. Any change in the carrying amount of an asset as a result of the Company's evaluation has been recorded in either restructuring expense, if it was a result of the Company's restructuring activities, or general and administrative expense for all other impairments in the consolidated statements of operations. Impairment charges associated with restructuring are discussed in Note 7 "Restructuring Expense". For the three months ended March 31, 2015 and 2014, the Company had no impairment charges included in restructuring expense, respectively. | ||||||||||||||||||||
New Accounting Pronouncements | ||||||||||||||||||||
In May of 2014, the FASB issued Accounting Standard Update No. 2014-09 Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when it satisfies the performance obligations. The Company will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is required to be adopted in January of 2017. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. The Company is in the process of evaluating this accounting standard update. | ||||||||||||||||||||
In February of 2015, the FASB issued Accounting Standard Update No. 2015-02 Consolidation ("ASU 2015-02"). ASU 2015-02 amends the existing consolidation requirements under GAAP and will require companies to reevaluate all previous consolidation requirements. ASU 2015-02 is required to be adopted in January of 2016. The Company is in the process of evaluating this accounting standard update. | ||||||||||||||||||||
In April of 2015, the FASB issued Accounting Standard Update No. 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying value of the debt liability, consistent with debt discounts. ASU 2015-03 is required to be adopted in January of 2016. The Company believes that the adoption of ASU 2015-03 will not have a material impact on its consolidated financial statements. |
Derivatives_and_Hedging
Derivatives and Hedging | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Derivatives and Hedging | Derivatives and Hedging | |||||||
Risk Management Objective of Using Derivatives | ||||||||
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. From time to time, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known cash amounts, the value of which are determined by interest rates or foreign exchange rates. | ||||||||
Cash Flow Hedges of Interest Rate Risk | ||||||||
From time to time, the Company uses interest rate derivatives to add stability to interest expense and to manage its exposure to interest rate movements. However, at March 31, 2015, the Company had no interest rate swaps. | ||||||||
Non-designated Hedges of Foreign Exchange Risk | ||||||||
Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to foreign exchange rates, but do not meet the strict hedge accounting requirements of Topic 815. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. | ||||||||
The Company, from time to time, may enter into foreign exchange forward contracts to fix currencies at specified rates based on expected future cash flows to protect against the fluctuations in cash flows resulting from sales denominated in foreign currencies. Additionally, to manage its exposure to fluctuations in foreign currency on intercompany balances and certain purchase commitments, the Company from time to time may use foreign exchange forward contracts. | ||||||||
As of March 31, 2015 and December 31, 2014, the Company had outstanding derivatives that were not designated as hedges in qualifying hedging relationships. The value of these contracts is recognized at fair value based on market exchange forward rates and is recorded in other assets or other liabilities on the Consolidated Balance Sheets. The following represents the fair value of these derivatives at March 31, 2015 and December 31, 2014 and the change in fair value included in foreign exchange gain in the three months ended March 31, 2015 and 2014: | ||||||||
March 31, 2015 | 31-Dec-14 | |||||||
Fair value of derivative liability | $ | (931 | ) | $ | (524 | ) | ||
Three Months Ended March 31, 2015: | Three Months Ended March 31, 2014: | |||||||
Change in fair value of derivative included in foreign exchange loss | $ | (2,059 | ) | $ | (1,211 | ) | ||
The following represents the notional amounts of foreign exchange forward contracts at March 31, 2015: | ||||||||
Notional Sold | Notional Purchased | |||||||
Non-designated hedges of foreign exchange risk | $ | 12,498 | $ | (32,991 | ) | |||
Fair Value of Derivatives Under ASC Topic 820 | ||||||||
ASC Topic 820, Fair Value Measurements and Disclosures (“Topic 820”), emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, Topic 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | ||||||||
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs including fair value of investments that do not have the ability to redeem at net asset value as of the measurement date, or during the first quarter following the measurement date. The derivative assets or liabilities are typically based on an entity’s own assumptions, as there is little, if any, market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and the Company considers factors specific to the asset or liability. The Company determined that its derivative valuations, which are based on market exchange forward rates, fall within Level 2 of the fair value hierarchy. |
Long_term_Debt
Long term Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long term Debt | Long term Debt | |||||||
At March 31, 2015 and December 31, 2014, long term debt consisted of the following: | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Senior secured term loan facility, payable quarterly, U.S. Dollar denominated–LIBOR | $ | 225,526 | $ | 226,052 | ||||
(minimum 1.25%) plus 4.50% (5.75%) net of $0.8 million discount. Matures May of 2019. | ||||||||
Senior Notes (Unsecured), payable semi-annually–U.S. Dollar denominated interest rate fixed at 8.875%. Matures June of 2018. | 236,410 | 236,410 | ||||||
Notes payable, working capital loan, variable interest rate at 1.3%. Matures June 30, 2015, with one-year rollover option. | 3,267 | 244 | ||||||
Other debt | 3,970 | 2,784 | ||||||
Total debt | 469,173 | 465,490 | ||||||
Less current maturities of long term debt and notes payable | 8,894 | 4,650 | ||||||
Total long term debt | $ | 460,279 | $ | 460,840 | ||||
On May 17, 2013, the Company entered into a Credit and Guaranty Agreement for a $200.0 million term loan credit facility (the “Term Credit Facility”), net of a discount of $1.0 million, among the Company, certain direct and indirect U.S. subsidiaries of the Company as guarantors and certain financial institutions. The Company also entered into a Revolving Credit and Guaranty Agreement originally for a $40.0 million asset-based revolving credit facility subject to a borrowing base among Xerium Technologies, Inc., as a US borrower, Xerium Canada Inc., as Canadian borrower, certain direct and indirect U.S. subsidiaries of the Company as guarantors and certain financial institutions (the "Domestic Revolver"). On March 3, 2014, the Company entered into an amendment to the Revolving Credit and Guaranty Agreement (as amended, the “ABL Facility,” and collectively with the Term Credit Facility, the “Credit Facility”) to add the Company's German subsidiaries as European Borrowers (the "European Borrowers") and to provide for an additional $15 million European asset-based revolving credit facility subject to a European borrowing base (the "European Revolver"), increasing the aggregate availability under the ABL Facility to $55 million. | ||||||||
On August 18, 2014, the Company entered into the Second Amendment to Credit and Guaranty Agreement (the “Second Amendment”). Under the Second Amendment, the Company borrowed an additional $30.0 million by utilizing the Incremental Facility. The $30 million in additional borrowings was used to finance a tax amnesty payment in Brazil. The Second Amendment made no changes to the repayment and other previously disclosed terms of the Credit Facility. | ||||||||
The Credit Facility contains certain customary covenants that, subject to exceptions, restrict the Company's ability to, among other things: | ||||||||
•declare dividends or redeem or repurchase equity interests; | ||||||||
•prepay, redeem or purchase debt; | ||||||||
•incur liens and engage in sale-leaseback transactions; | ||||||||
•make loans and investments; | ||||||||
•incur additional indebtedness; | ||||||||
•amend or otherwise alter debt and other material agreements; | ||||||||
•make capital expenditures in excess of $42 million per fiscal year, subject to adjustment; | ||||||||
•engage in mergers, acquisitions and asset sales; | ||||||||
•transact with affiliates; and | ||||||||
•engage in businesses that are not related to the Company's existing business. | ||||||||
As of March 31, 2015, the outstanding balance of the Company's term debt under its Credit Facility and Notes was $461.9 million, which is net of a $0.8 million discount. In addition, as of March 31, 2015, an aggregate of $32.4 million is available for additional borrowings under the ABL Facility. This availability represents a borrowing base of $44.1 million under the ABL Facility less $11.7 million of that facility committed for letters of credit or additional borrowings. Additionally, at March 31, 2015, the Company had approximately $5.1 million available for borrowings under other small lines of credit. | ||||||||
As of March 31, 2015 and December 31, 2014, the carrying value of the Company’s debt was $469.2 million and$465.2 million, respectively, and its fair value was approximately $479.2 million and $478.2 million, respectively. The Company determined the fair value of its debt utilizing significant other observable inputs (Level 2 of the fair value hierarchy). | ||||||||
Capitalized Lease Liabilities | ||||||||
As of March 31, 2015, the Company had capitalized lease liabilities totaling $4.4 million. These amounts represent the lease on the corporate headquarters and certain other software licensing, vehicle and office equipment capitalized lease arrangements. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The Company utilizes the liability method for accounting for income taxes in accordance with ASC Topic 740, Income Taxes (“Topic 740”). Under Topic 740, deferred tax assets and liabilities are determined based on the difference between their financial reporting and tax basis. The assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company reduces its deferred tax assets by a valuation allowance if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In making this determination, the Company evaluates all available information including the Company’s financial position and results of operations for the current and preceding years, as well as any available projected information for future years. | |
For the three months ended March 31, 2015, the provision for income taxes was $3,775 as compared to $1,893 for the three months ended March 31, 2014. The increase in tax expense was primarily attributable to the geographic mix of earnings in the three months ended March 31, 2015, as well as an increase in the unrecognized tax benefit due to the effects of income tax audits. Generally, the provision for income taxes is primarily impacted by income earned in tax paying jurisdictions relative to income earned in non-tax paying jurisdictions. The majority of income recognized for purposes of computing the effective tax rate is earned in countries where the statutory income tax rates range from 15.0% to 37.1%; however, permanent income adjustments recorded against pre-tax earnings may result in an effective tax rate that is higher or lower than the statutory tax rate in these jurisdictions. The Company generates losses in certain jurisdictions for which no tax benefit is realized, as the deferred tax assets in these jurisdictions (including the net operating losses) are fully reserved in the valuation allowance. For this reason, the Company recognizes minimal income tax expense or benefit in these jurisdictions, of which the most material jurisdictions are the United States and Australia. Due to these reserves, the geographic mix of the Company’s pre-tax earnings has a direct correlation with how high or low its annual effective tax rate is relative to consolidated earnings. | |
As the Company continues to reorganize and restructure its operations, it is possible that deferred tax assets, for which no income tax benefit has previously been provided, may more likely than not become realized. The Company continues to evaluate future operations and will record an income tax benefit in the period where it believes it is more likely than not that the deferred tax asset will be able to be realized. Historic and future ownership changes could potentially reduce the amount of net operating loss carry-forwards available for use. | |
As of March 31, 2015, the Company had a gross amount of unrecognized tax benefit of $7,791, exclusive of interest and penalties. The unrecognized tax benefit increased by approximately $289 during the three months ended March 31, 2015, as a result of ongoing changes in currently reserved positions as a result of new facts or information and the effects of income tax audits, which was partially offset by decreases related to foreign currency effects. In January 2015, the Company received notice of a tax audit report which could lead to an income tax assessment of an unknown amount related to its Italian operations. The Company expects to litigate if such an assessment is received, and the Company believes it would prevail on some portion of the issues litigated. As a result of this new information, the unrecognized tax benefit was increased by $1,097 for tax, interest and penalties related to this matter in the first quarter of 2015. | |
The Company’s policy is to recognize interest and penalties related to income tax matters as income tax expense, which were $738 related to the unrecognized tax benefits for the three months ended March 31, 2015. The tax years 2000 through 2014 remain open to examination in a number of the major tax jurisdictions to which the Company and its subsidiaries are subject. The Company believes that it has made adequate provisions for all income tax uncertainties. |
Pensions_Other_Postretirement_
Pensions, Other Post-retirement and Post-employment Benefits | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Pensions, Other Post-retirement and Post-employment Benefits | Pensions, Other Post-retirement and Post-employment Benefits | |||||||
The Company accounts for its pensions, other post-retirement and post-employment benefit plans in accordance with ASC Topic 715, Compensation—Retirement Benefits (“Topic 715”). The Company has defined benefit pension plans covering substantially all of its U.S. and Canadian employees and employees of certain subsidiaries in other countries. Benefits are generally based on the employee’s years of service and compensation. These plans are funded in conformity with the funding requirements of applicable government regulations. The Company does not fund certain plans, as funding is not required. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. In addition, the Company also intends to fund its U.K. and Canadian defined benefit plans in accordance with local regulations. | ||||||||
As required by Topic 715, the following tables summarize the components of net periodic benefit cost: | ||||||||
Defined Benefit Plans | ||||||||
Three Months ended March 31, | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 842 | $ | 816 | ||||
Interest cost | 1,670 | 1,650 | ||||||
Expected return on plan assets | (1,815 | ) | (1,564 | ) | ||||
Amortization of net loss | 755 | 295 | ||||||
Net periodic benefit cost | $ | 1,452 | $ | 1,197 | ||||
Comprehensive_Loss_and_Accumul
Comprehensive Loss and Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Comprehensive Loss and Accumulated Other Comprehensive Loss | Comprehensive Loss and Accumulated Other Comprehensive Loss | |||||||||||||||
Comprehensive loss for the three months ended March 31, 2015 (net of tax expense of $851) and 2014 (net of tax benefits of $32) is as follows: | ||||||||||||||||
Three Months ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Net income | $ | 1,733 | $ | 1,167 | ||||||||||||
Foreign currency translation adjustments | (32,857 | ) | (1,669 | ) | ||||||||||||
Pension liability changes under Topic 715 | 1,684 | (275 | ) | |||||||||||||
Change in value of derivative instruments | 42 | 19 | ||||||||||||||
Comprehensive loss | $ | (29,398 | ) | $ | (758 | ) | ||||||||||
The components of accumulated other comprehensive loss for the three months ended March 31, 2015 are as follows (net of tax benefits of $7,302): | ||||||||||||||||
Foreign | Pension | Change in | Accumulated | |||||||||||||
Currency | Liability | Value of | Other | |||||||||||||
Translation | Changes Under | Derivative | Comprehensive | |||||||||||||
Adjustment | Topic 715 | Instruments | (Loss) Income | |||||||||||||
Balance at December 31, 2014 | $ | (39,014 | ) | $ | (46,816 | ) | $ | (108 | ) | $ | (85,938 | ) | ||||
Other comprehensive income before reclassifications | (32,857 | ) | 929 | — | (31,928 | ) | ||||||||||
Amounts reclassified from other comprehensive income | ||||||||||||||||
Amortization of actuarial losses | — | 755 | — | 755 | ||||||||||||
Amortization of interest expense | — | — | 42 | 42 | ||||||||||||
Net current period other comprehensive (loss) income | (32,857 | ) | 1,684 | 42 | (31,131 | ) | ||||||||||
Balance at March 31, 2015 | $ | (71,871 | ) | $ | (45,132 | ) | $ | (66 | ) | $ | (117,069 | ) | ||||
For the three months ended March 31, 2015, the amortization of actuarial losses is included in cost of products sold and general and administrative expenses in the Consolidated Statements of Operations. | ||||||||||||||||
For the three months ended March 31, 2015, the impact on Accumulated Other Comprehensive Loss ("AOCL") due to foreign currency translation adjustments of $(32,857) was primarily the result of the decline in the Euro and Brazilian Real and the effect of that decline on our foreign subsidiaries net equity balances of $151 million (Euro) and $107 million (Brazilian Real) in Europe and Brazil, respectively. The Euro declined to $1.13 at March 31, 2015 from $1.33 at December 31, 2014. The Brazilian Real declined to $0.35 at March 31, 2015 from $0.43 at December 31, 2014. |
Restructuring_and_Impairment_E
Restructuring and Impairment Expense | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Restructuring and Impairment Expense | Restructuring and Impairment Expense | |||||||||||||||||||
For the three months ended March 31, 2015, the Company incurred restructuring expenses of $2,224.These included $1,300 of charges related to the closure of the Joao Pessoa, Brazil clothing facility and $924 of charges relating to headcount reductions. For the three months ended March 31, 2014, the Company incurred restructuring expenses of $4.7 million. These included charges relating to the closure of a roll cover facility in Germany, the reduction of headcount and the second phase of the closure of a clothing facility in Argentina. | ||||||||||||||||||||
The following table sets forth the significant components of the restructuring accrual (included in Accrued Expenses on our Consolidated Balance Sheet), including activity under restructuring programs for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||
Balance at | Charges | Currency | Cash | Balance at | ||||||||||||||||
December 31, | Effects | Payments | 31-Mar-15 | |||||||||||||||||
2014 | ||||||||||||||||||||
Severance and other benefits | $ | 4,880 | $ | 881 | $ | (243 | ) | $ | (1,286 | ) | $ | 4,232 | ||||||||
Facility costs and other | 818 | 1,343 | (365 | ) | (1,796 | ) | — | |||||||||||||
Total | $ | 5,698 | $ | 2,224 | $ | (608 | ) | $ | (3,082 | ) | $ | 4,232 | ||||||||
Balance at | Charges | Currency | Cash | Balance at | ||||||||||||||||
December 31, | Effects | Payments | 31-Mar-14 | |||||||||||||||||
2013 | ||||||||||||||||||||
Severance and other benefits | $ | 6,466 | $ | 4,411 | $ | (46 | ) | $ | (2,240 | ) | $ | 8,591 | ||||||||
Facility costs and other | 1,468 | 240 | (11 | ) | (312 | ) | 1,385 | |||||||||||||
Total | $ | 7,934 | $ | 4,651 | $ | (57 | ) | $ | (2,552 | ) | $ | 9,976 | ||||||||
Restructuring and impairment expense by segment, which is not included in Segment Earnings in Note 8, is as follows: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Clothing | $ | 2,092 | $ | 2,254 | ||||||||||||||||
Roll Covers | 101 | 2,397 | ||||||||||||||||||
Corporate | 31 | — | ||||||||||||||||||
Total | $ | 2,224 | $ | 4,651 | ||||||||||||||||
Business_Segment_Information
Business Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Business Segment Information | Business Segment Information | |||||||||||||||
The Company is a global manufacturer and supplier of consumable products used primarily in the production of paper and is organized into two reportable segments: Clothing and Roll Covers. The Clothing segment represents the manufacture and sale of synthetic textile belts used to transport paper along the length of papermaking machines. The Roll Covers segment primarily represents the manufacture and refurbishment of covers used on the steel rolls of papermaking machines and the servicing of those rolls. The Company manages each of these operating segments separately. | ||||||||||||||||
Management evaluates segment performance based on earnings before interest, taxes, depreciation and amortization and before allocation of corporate charges. Such measure is then adjusted to exclude items that are of an unusual nature and are not used in measuring segment performance or are not segment specific (“Segment Earnings (Loss)”). The accounting policies of these segments are the same as those for the Company as a whole. Inter-segment net sales and inter-segment eliminations are not material for any of the periods presented. | ||||||||||||||||
Summarized financial information for the Company’s reportable segments is presented in the tables that follow for the three months ended March 31, 2015 and 2014. | ||||||||||||||||
Clothing | Roll | Corporate | Total | |||||||||||||
Covers | ||||||||||||||||
Three Months Ended March 31, 2015: | ||||||||||||||||
Net Sales | $ | 77,284 | $ | 43,745 | $ | — | $ | 121,029 | ||||||||
Segment Earnings (Loss) | $ | 21,766 | $ | 8,091 | $ | (3,647 | ) | |||||||||
Three Months Ended March 31, 2014: | ||||||||||||||||
Net Sales | $ | 88,971 | $ | 44,413 | $ | — | $ | 133,384 | ||||||||
Segment Earnings (Loss) | $ | 21,392 | $ | 7,379 | $ | (3,069 | ) | |||||||||
Provided below is a reconciliation of Segment Earnings (Loss) to income before provision for income taxes for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||
Three Months ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Segment Earnings (Loss): | ||||||||||||||||
Clothing | $ | 21,766 | $ | 21,392 | ||||||||||||
Roll Covers | 8,091 | 7,379 | ||||||||||||||
Corporate | (3,647 | ) | (3,069 | ) | ||||||||||||
Stock-based compensation | (822 | ) | (509 | ) | ||||||||||||
Interest expense, net | (9,664 | ) | (8,657 | ) | ||||||||||||
Depreciation and amortization | (7,242 | ) | (8,649 | ) | ||||||||||||
Restructuring expense | (2,224 | ) | (4,651 | ) | ||||||||||||
Plant startup costs | (750 | ) | (176 | ) | ||||||||||||
Income before provision for income taxes | $ | 5,508 | $ | 3,060 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
The Company is involved in various legal matters which have arisen in the ordinary course of business as a result of various immaterial labor claims, taxing authority reviews and other routine legal matters. As of March 31, 2015, the Company accrued an immaterial amount in its financial statements for these matters for which the Company believed the possibility of loss was probable and was able to estimate the damages. The Company does not believe that the ultimate resolution of these matters will have a material adverse effect on its financial position, results of operations or cash flow. The Company believes that any additional liability in excess of amounts provided which may result from the resolution of legal matters will not have a material adverse effect on the financial condition, liquidity or cash flow of the Company. |
StockBased_Compensation_and_St
Stock-Based Compensation and Stockholders' Deficit | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock-Based Compensation and Stockholders' Deficit | Stock-Based Compensation and Stockholders’ Deficit | ||||||||
The Company records stock-based compensation expense in accordance with ASC Topic 718, Accounting for Stock Compensation and has used the straight-line attribution method to recognize expense for time-based restricted stock units ("RSUs"), options and deferred stock units ("DSUs"). The Company recorded stock-based compensation expense during the three months ended March 31, 2015 and March 31, 2014 as follows: | |||||||||
Three Months ended March 31, | |||||||||
2015 | 2014 | ||||||||
RSU, Options and DSU Awards (1) | $ | 822 | $ | 509 | |||||
-1 | Related to RSUs, Options and DSUs awarded to certain employees and non-employee directors. | ||||||||
Summary of Activity under the Long-Term Incentive Plans | |||||||||
On March 2, 2015, the Board of Directors approved the 2015-2017 Long-Term Incentive Plan (the “2015 - 2017 LTIP”) under the 2010 Equity Incentive Plan (the “2010 Plan”). Awards under the 2015 - 2017 LTIP are time-based, performance-based and market-based. A specific target share award has been set for each participant in the 2015-2017 LTIP. Awards will be paid in the form of shares of common stock of the Company, as described below: | |||||||||
• | 52,601 Time-based awards, or 35% of the total target award for each participant, have been granted in the form of time-based restricted stock units under the Company’s 2010 Plan. The time-based restricted stock units vest on the third anniversary of the date of grant. | ||||||||
• | 97,681 Performance-based and Market-based awards, 65% of the total target award for each participant, have been granted in the form of performance-based stock units under the 2010 Plan. Of these units, half will vest based on the financial performance of the Company and the other half will vest based on the stock price performance of the Company. | ||||||||
The performance-based stock units whose vesting is subject to the financial performance of the Company (the “financial stock units”) will vest based on the degree to which the Company achieves a targeted three-year cumulative Adjusted EBITDA metric, adjusted for currency fluctuations, over the performance period of January 1, 2015 through December 31, 2017. Financial stock units that vest will convert into shares of the Company’s common stock and be paid after the close of a three-year performance period. The amount of units that vest will range from 0% to 100% of the employee's total financial stock units. Upon attainment of cumulative Adjusted EBITDA equal to 80% or less of the targeted Adjusted EBITDA, none of the financial stock units will vest. Upon attainment of more than 80% of the targeted Adjusted EBITDA, the financial stock units will begin vesting on a straight-line basis from 0% of the financial stock units at 80% of the targeted Adjusted EBITDA to 100% of the financial stock units at 100% of the targeted Adjusted EBITDA, up to a maximum payout of 100% of the financial stock units. | |||||||||
The market-based stock units whose vesting is subject to stock price performance of the Company (the “market-based stock units”) will vest based on the Company's total stock price change (plus dividends) over the three-year performance period of March 2, 2015 through March 2, 2018 (“TSR”) relative to the TSR over the same performance period of companies listed on the S&P Global Small Cap Index on the third anniversary of the grant date, or March 2, 2018. Market-based stock units that vest will convert into shares of the Company’s common stock and will be paid after the third anniversary of the grant date, or March 2, 2018. The amount of units that vest will range from 0% to 100% of the employee's total market-based stock units. If the Company’s TSR over the performance period is less than the 35th percentile TSR of companies in the S&P Global Small Cap Index, then no market-based units will vest. If the Company’s TSR over the performance period is equal to the 35th percentile TSR of the companies in the S&P Global Small Cap Index, then 50% of the market-based stock units will vest. Full payout at 100% of the market-based stock units will be made if the Company’s TSR over the performance period is equal to the 55th percentile TSR of companies in the S&P Global Small Cap Index. TSR performance between the 35th and 55th percentile TSR of companies in the S&P Global Small Cap Index will result in an interpolated payout percentage of the market-based stock units between 50% and 100%. | |||||||||
Subject to early acceleration and payment under certain circumstances consistent with the terms of the Company’s 2015-2017 LTIP and LTIP Share Agreement thereunder, delivery of shares of common stock underlying the time-based and performance-based and market-based awards that become vested are subject to the participant’s continued service to the Company through March 2, 2018. | |||||||||
Directors’ Deferred Stock Unit Plan | |||||||||
Under the 2011 non-management directors stock plan ("2011 DSU Plan”), as amended in January of 2015, each director receives an annual retainer of $132, to be paid on a quarterly basis in arrears. Approximately half of the annual retainer is payable in DSUs, with the remaining half payable in DSUs, cash or a mix of both at the election of each director. The non-management directors were awarded an aggregate of 7,062 DSUs under the 2011 DSU Plan for service during the quarter ended March 31, 2015. In addition, in accordance with the 2011 DSU Plan, as amended in January of 2015, 4,951 DSUs were settled in common stock during the quarter ended March 31, 2015. |
Supplemental_Guarantor_Financi
Supplemental Guarantor Financial Information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||
Supplemental Guarantor Financial Information | Supplemental Guarantor Financial Information | |||||||||||||||||||
On May 26, 2011, the Company closed on the sale of its Notes. The Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed on a senior unsecured basis by all of the domestic wholly owned subsidiaries of the Company (the “Guarantors”). In accordance with Rule 3-10 of Regulation S-X promulgated under the Securities Act of 1933, as amended, the following condensed consolidating financial statements present the financial position, results of operations and cash flows of Xerium Technologies, Inc. (referred to as “Parent” for the purpose of this note only) on a stand-alone parent-only basis, the Guarantors on a Guarantors-only basis, the combined non-Guarantor subsidiaries and elimination entries necessary to arrive at the information for the Parent, the Guarantors and non-Guarantor subsidiaries on a consolidated basis. | ||||||||||||||||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Balance Sheet—(Unaudited) | ||||||||||||||||||||
At March 31, 2015 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 735 | $ | (15 | ) | $ | 8,106 | $ | — | $ | 8,826 | |||||||||
Accounts receivable, net | 97 | 22,078 | 55,794 | — | 77,969 | |||||||||||||||
Intercompany receivables | (102,773 | ) | 111,030 | (8,257 | ) | — | — | |||||||||||||
Inventories, net | — | 16,263 | 60,419 | (871 | ) | 75,811 | ||||||||||||||
Prepaid expenses | 1,875 | 927 | 5,336 | — | 8,138 | |||||||||||||||
Other current assets | — | 1,695 | 12,828 | — | 14,523 | |||||||||||||||
Total current assets | (100,066 | ) | 151,978 | 134,226 | (871 | ) | 185,267 | |||||||||||||
Property and equipment, net | 16,701 | 59,242 | 215,647 | — | 291,590 | |||||||||||||||
Investments | 798,802 | 183,408 | — | (982,210 | ) | — | ||||||||||||||
Goodwill | — | 17,737 | 38,525 | — | 56,262 | |||||||||||||||
Intangible assets | 8,191 | 1,595 | 931 | — | 10,717 | |||||||||||||||
Non-current deferred tax asset | — | — | 8,485 | — | 8,485 | |||||||||||||||
Other assets | — | 364 | 8,336 | — | 8,700 | |||||||||||||||
Total assets | $ | 723,628 | $ | 414,324 | $ | 406,150 | $ | (983,081 | ) | $ | 561,021 | |||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 2,842 | $ | 9,216 | $ | 25,012 | $ | — | $ | 37,070 | ||||||||||
Accrued expenses | 14,197 | 8,351 | 35,215 | — | 57,763 | |||||||||||||||
Current notes payable | — | — | 3,267 | — | 3,267 | |||||||||||||||
Current maturities of long-term debt | 2,772 | 449 | 2,406 | — | 5,627 | |||||||||||||||
Total current liabilities | 19,811 | 18,016 | 65,900 | — | 103,727 | |||||||||||||||
Long-term debt, net of current maturities | 460,279 | — | — | — | 460,279 | |||||||||||||||
Capitalized lease obligations | 3,206 | 495 | 694 | — | 4,395 | |||||||||||||||
Non-current deferred tax liability | 607 | 1,035 | 5,679 | — | 7,321 | |||||||||||||||
Pension, other post-retirement and post-employment obligations | 22,009 | 1,569 | 51,637 | — | 75,215 | |||||||||||||||
Other long-term liabilities | 200 | — | 12,791 | — | 12,991 | |||||||||||||||
Intercompany loans | 307,868 | (397,350 | ) | 89,482 | — | — | ||||||||||||||
Total stockholders’ (deficit) equity | (90,352 | ) | 790,559 | 179,967 | (983,081 | ) | (102,907 | ) | ||||||||||||
Total liabilities and stockholders’ equity | $ | 723,628 | $ | 414,324 | $ | 406,150 | $ | (983,081 | ) | $ | 561,021 | |||||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||||||
At December 31, 2014 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 605 | $ | (15 | ) | $ | 8,927 | $ | — | $ | 9,517 | |||||||||
Accounts receivable, net | 50 | 22,358 | 60,661 | — | 83,069 | |||||||||||||||
Intercompany receivables | (107,064 | ) | 107,590 | (526 | ) | — | — | |||||||||||||
Inventories, net | — | 17,310 | 67,016 | (776 | ) | 83,550 | ||||||||||||||
Prepaid expenses | 546 | 1,470 | 6,456 | — | 8,472 | |||||||||||||||
Other current assets | — | 2,021 | 13,693 | — | 15,714 | |||||||||||||||
Total current assets | (105,863 | ) | 150,734 | 156,227 | (776 | ) | 200,322 | |||||||||||||
Property and equipment, net | 12,365 | 59,448 | 231,804 | — | 303,617 | |||||||||||||||
Investments | 782,633 | 229,109 | — | (1,011,742 | ) | — | ||||||||||||||
Goodwill | — | 17,737 | 44,190 | — | 61,927 | |||||||||||||||
Intangible assets | 9,001 | 1,664 | 1,042 | — | 11,707 | |||||||||||||||
Non-current deferred tax asset | — | — | 10,662 | 10,662 | ||||||||||||||||
Other assets | — | 364 | 5,445 | — | 5,809 | |||||||||||||||
Total assets | $ | 698,136 | $ | 459,056 | $ | 449,370 | $ | (1,012,518 | ) | $ | 594,044 | |||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 2,679 | $ | 10,212 | $ | 28,936 | $ | — | $ | 41,827 | ||||||||||
Accrued expenses | 8,511 | 8,301 | 39,297 | — | 56,109 | |||||||||||||||
Current notes payable | — | — | 244 | — | 244 | |||||||||||||||
Current maturities of long-term debt | 2,944 | — | 1,462 | — | 4,406 | |||||||||||||||
Total current liabilities | 14,134 | 18,513 | 69,939 | — | 102,586 | |||||||||||||||
Long-term debt, net of current maturities | 460,840 | — | — | — | 460,840 | |||||||||||||||
Liabilities under capital leases | 3,503 | 440 | 2 | — | 3,945 | |||||||||||||||
Non-current deferred tax liability | 97 | 1,035 | 9,284 | — | 10,416 | |||||||||||||||
Pension, other post-retirement and post-employment obligations | 22,070 | 1,200 | 57,201 | — | 80,471 | |||||||||||||||
Other long-term liabilities | 181 | — | 9,715 | — | 9,896 | |||||||||||||||
Intercompany loans | 289,896 | (401,482 | ) | 111,586 | — | — | ||||||||||||||
Total stockholders’ (deficit) equity | (92,585 | ) | 839,350 | 191,643 | (1,012,518 | ) | (74,110 | ) | ||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | 698,136 | $ | 459,056 | $ | 449,370 | $ | (1,012,518 | ) | $ | 594,044 | |||||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Statement of Operations and Comprehensive Income (Loss) (Unaudited) | ||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
Net sales | $ | — | $ | 42,850 | $ | 81,688 | $ | (3,509 | ) | $ | 121,029 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of products sold | (348 | ) | 29,378 | 46,860 | (3,414 | ) | 72,476 | |||||||||||||
Selling | 268 | 4,801 | 11,257 | — | 16,326 | |||||||||||||||
General and administrative | 2,828 | 1,411 | 9,607 | — | 13,846 | |||||||||||||||
Research and development | 232 | 1,196 | 534 | — | 1,962 | |||||||||||||||
Restructuring and impairment | 7,952 | 175 | (5,903 | ) | — | 2,224 | ||||||||||||||
10,932 | 36,961 | 62,355 | (3,414 | ) | 106,834 | |||||||||||||||
(Loss) income from operations | (10,932 | ) | 5,889 | 19,333 | (95 | ) | 14,195 | |||||||||||||
Interest (expense) income, net | (9,399 | ) | 1,160 | (1,425 | ) | — | (9,664 | ) | ||||||||||||
Foreign exchange gain (loss) | 213 | (141 | ) | 905 | — | 977 | ||||||||||||||
Equity in subsidiaries income | 21,669 | 5,223 | — | (26,892 | ) | — | ||||||||||||||
Dividend income | 700 | 700 | (1,400 | ) | — | — | ||||||||||||||
Income before provision for income taxes | 2,251 | 12,831 | 17,413 | (26,987 | ) | 5,508 | ||||||||||||||
Provision for income taxes | (518 | ) | (29 | ) | (3,228 | ) | — | (3,775 | ) | |||||||||||
Net income | $ | 1,733 | $ | 12,802 | $ | 14,185 | $ | (26,987 | ) | $ | 1,733 | |||||||||
Comprehensive income (loss) | $ | 1,631 | $ | 13,443 | $ | (17,485 | ) | $ | (26,987 | ) | $ | (29,398 | ) | |||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Statement of Operations and Comprehensive Income-(Unaudited) | ||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
Net sales | $ | — | $ | 43,156 | $ | 99,265 | $ | (9,037 | ) | $ | 133,384 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of products sold | (419 | ) | 29,999 | 60,731 | (9,093 | ) | 81,218 | |||||||||||||
Selling | 113 | 5,068 | 12,997 | — | 18,178 | |||||||||||||||
General and administrative | 1,884 | 2,520 | 10,393 | — | 14,797 | |||||||||||||||
Research and development | 276 | 1,118 | 552 | — | 1,946 | |||||||||||||||
Restructuring and impairment | (18 | ) | 237 | 4,432 | — | 4,651 | ||||||||||||||
1,836 | 38,942 | 89,105 | (9,093 | ) | 120,790 | |||||||||||||||
(Loss) income from operations | (1,836 | ) | 4,214 | 10,160 | 56 | 12,594 | ||||||||||||||
Interest (expense) income, net | (8,242 | ) | 1,395 | (1,810 | ) | — | (8,657 | ) | ||||||||||||
Foreign exchange loss | (12 | ) | (81 | ) | (784 | ) | — | (877 | ) | |||||||||||
Equity in subsidiaries income | 11,731 | 5,892 | — | (17,623 | ) | — | ||||||||||||||
Income before provision for income taxes | 1,641 | 11,420 | 7,566 | (17,567 | ) | 3,060 | ||||||||||||||
Provision for income taxes | (474 | ) | (34 | ) | (1,385 | ) | — | (1,893 | ) | |||||||||||
Net income | $ | 1,167 | $ | 11,386 | $ | 6,181 | $ | (17,567 | ) | $ | 1,167 | |||||||||
Comprehensive income | $ | 1,578 | $ | 11,116 | $ | 4,115 | $ | (17,567 | ) | $ | (758 | ) | ||||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Statement of Cash Flows-(Unaudited) | ||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | 1,733 | $ | 12,802 | $ | 14,185 | $ | (26,987 | ) | $ | 1,733 | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Stock-based compensation | 752 | — | 70 | — | 822 | |||||||||||||||
Depreciation | 361 | 1,719 | 5,083 | — | 7,163 | |||||||||||||||
Amortization of intangibles | — | 69 | 10 | — | 79 | |||||||||||||||
Deferred financing cost amortization | 852 | — | 23 | — | 875 | |||||||||||||||
Foreign exchange gain on revaluation of debt | (1,973 | ) | — | — | — | (1,973 | ) | |||||||||||||
Deferred tax expense | 511 | — | 468 | — | 979 | |||||||||||||||
Loss (gain) on disposition of property and equipment | — | 25 | (11 | ) | — | 14 | ||||||||||||||
Provision for doubtful accounts | — | 49 | 423 | — | 472 | |||||||||||||||
Undistributed equity in earnings of subsidiaries | (21,669 | ) | (5,223 | ) | — | 26,892 | — | |||||||||||||
Change in assets and liabilities which provided (used) cash: | ||||||||||||||||||||
Accounts receivable | (47 | ) | 231 | (776 | ) | — | (592 | ) | ||||||||||||
Inventories | — | 1,047 | 294 | 95 | 1,436 | |||||||||||||||
Prepaid expenses | (1,328 | ) | 543 | 810 | — | 25 | ||||||||||||||
Other current assets | — | 326 | (2,005 | ) | — | (1,679 | ) | |||||||||||||
Accounts payable and accrued expenses | 5,618 | (947 | ) | (2,453 | ) | — | 2,218 | |||||||||||||
Deferred and other long-term liabilities | (42 | ) | 347 | (3,876 | ) | — | (3,571 | ) | ||||||||||||
Intercompany loans | (4,290 | ) | (3,343 | ) | 7,633 | — | — | |||||||||||||
Net cash (used in) provided by operating activities | (19,522 | ) | 7,645 | 19,878 | — | 8,001 | ||||||||||||||
Investing activities | ||||||||||||||||||||
Capital expenditures, gross | (4,697 | ) | (1,103 | ) | (6,355 | ) | — | (12,155 | ) | |||||||||||
Intercompany property and equipment transfers, net | — | 191 | (191 | ) | — | — | ||||||||||||||
Proceeds from disposals of property and equipment | — | 26 | 6 | — | 32 | |||||||||||||||
Net cash used in investing activities | (4,697 | ) | (886 | ) | (6,540 | ) | — | (12,123 | ) | |||||||||||
Financing activities | — | |||||||||||||||||||
Proceeds from borrowings | 13,516 | — | 9,052 | — | 22,568 | |||||||||||||||
Principal payments on debt | (14,059 | ) | — | (4,272 | ) | — | (18,331 | ) | ||||||||||||
Dividends paid | — | (1,400 | ) | 1,400 | — | — | ||||||||||||||
Payment of obligations under capital leases | (161 | ) | (101 | ) | (3 | ) | — | (265 | ) | |||||||||||
Payment of financing fees | (34 | ) | — | 9 | — | (25 | ) | |||||||||||||
Intercompany loans | 19,587 | (5,258 | ) | (14,329 | ) | — | — | |||||||||||||
Other financing activities | 5,500 | (5,500 | ) | — | ||||||||||||||||
Net cash provided by (used in) financing activities | 24,349 | (6,759 | ) | (13,643 | ) | — | 3,947 | |||||||||||||
Effect of exchange rate changes on cash flows | — | — | (516 | ) | — | (516 | ) | |||||||||||||
Net increase (decrease) in cash | 130 | — | (821 | ) | — | (691 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 605 | (15 | ) | 8,927 | — | 9,517 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 735 | $ | (15 | ) | $ | 8,106 | $ | — | $ | 8,826 | |||||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Statement of Cash Flows (Unaudited) | ||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | 1,167 | $ | 11,386 | $ | 6,181 | $ | (17,567 | ) | $ | 1,167 | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Stock-based compensation | 456 | — | 53 | — | 509 | |||||||||||||||
Depreciation | 108 | 1,850 | 6,275 | — | 8,233 | |||||||||||||||
Amortization of intangibles | — | 384 | 32 | — | 416 | |||||||||||||||
Deferred financing cost amortization | 716 | — | — | — | 716 | |||||||||||||||
Foreign exchange gain on revaluation of debt | (1,103 | ) | — | — | — | (1,103 | ) | |||||||||||||
Deferred taxes | 282 | — | (1,090 | ) | — | (808 | ) | |||||||||||||
Loss on disposition of property and equipment | — | 22 | 5 | — | 27 | |||||||||||||||
Provision for doubtful accounts | — | 165 | 80 | — | 245 | |||||||||||||||
Undistributed equity in earnings of subsidiaries | (11,731 | ) | (5,892 | ) | — | 17,623 | — | |||||||||||||
Change in assets and liabilities which provided (used) cash: | ||||||||||||||||||||
Accounts receivable | (61 | ) | (1,762 | ) | (5,229 | ) | — | (7,052 | ) | |||||||||||
Inventories | — | (387 | ) | (3,605 | ) | (56 | ) | (4,048 | ) | |||||||||||
Prepaid expenses | 201 | (351 | ) | 1,750 | — | 1,600 | ||||||||||||||
Other current assets | 515 | (623 | ) | 927 | — | 819 | ||||||||||||||
Accounts payable and accrued expenses | 2,767 | (11 | ) | 1,446 | — | 4,202 | ||||||||||||||
Deferred and other long-term liabilities | (182 | ) | (828 | ) | (1,150 | ) | — | (2,160 | ) | |||||||||||
Intercompany loans | (1,171 | ) | 1,401 | (230 | ) | — | — | |||||||||||||
Net cash (used in) provided by operating activities | (8,036 | ) | 5,354 | 5,445 | — | 2,763 | ||||||||||||||
Investing activities | ||||||||||||||||||||
Capital expenditures, gross | (5,537 | ) | (922 | ) | (4,035 | ) | — | (10,494 | ) | |||||||||||
Intercompany property and equipment transfers, net | — | — | — | — | — | |||||||||||||||
Proceeds from disposals of property and equipment | — | 35 | 8 | — | 43 | |||||||||||||||
Net cash used in investing activities | (5,537 | ) | (887 | ) | (4,027 | ) | — | (10,451 | ) | |||||||||||
Financing activities | — | |||||||||||||||||||
Proceeds from borrowings | 7,580 | — | — | — | 7,580 | |||||||||||||||
Principal payments on debt | (6,600 | ) | — | — | — | (6,600 | ) | |||||||||||||
Payments of obligations under capitalized leases | (126 | ) | (64 | ) | — | — | (190 | ) | ||||||||||||
Payment of deferred financing fees | (710 | ) | — | — | — | (710 | ) | |||||||||||||
Intercompany loans | 9,994 | (4,404 | ) | (5,590 | ) | — | — | |||||||||||||
Net cash provided by (used in) financing activities | 10,138 | (4,468 | ) | (5,590 | ) | — | 80 | |||||||||||||
Effect of exchange rate changes on cash flows | — | — | (95 | ) | — | (95 | ) | |||||||||||||
Net (decrease) increase in cash | (3,435 | ) | (1 | ) | (4,267 | ) | — | (7,703 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 4,120 | (10 | ) | 21,606 | — | 25,716 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 685 | $ | (11 | ) | $ | 17,339 | $ | — | $ | 18,013 | |||||||||
Description_of_Business_and_Si1
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited condensed consolidated interim financial statements at March 31, 2015 and for the three months ended March 31, 2015 and 2014 include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, such financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. The interim results presented herein are not necessarily indicative of the results to be expected for the entire year. In management’s opinion, these unaudited condensed consolidated interim financial statements contain all adjustments of a normal recurring nature necessary for a fair presentation of the financial statements for the interim periods presented. These unaudited consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2014 as reported on the Company's Annual Report on Form 10-K filed on March 4, 2015. | |
Inventories, net | Inventories, net |
Inventories are generally valued at the lower of cost or market using the first-in, first-out (FIFO) method. Raw materials are valued principally on a weighted average cost basis. The Company’s work in process and finished goods are specifically identified and valued based on actual inputs to production. Provisions are recorded as appropriate to write-down obsolete and excess inventory to estimated net realizable value. The process for evaluating obsolete and excess inventory often requires management to make subjective judgments and estimates concerning future sales levels, quantities and prices at which such inventory will be able to be sold in the normal course of business, while considering the general aging of inventory and factoring in any new business conditions. | |
Goodwill | Goodwill |
The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, Intangibles—Goodwill and Other Intangible Assets (“Topic 350”). Topic 350 requires that goodwill and intangible assets that have indefinite lives not be amortized, but instead, must be tested for impairment at least annually or whenever events or business conditions warrant. During the three months ended March 31, 2015, the Company evaluated events and business conditions to determine if a test for an impairment of goodwill was warranted. No such events or business conditions took place during this period, therefore no test was determined to be warranted at March 31, 2015. | |
Warranties | Warranties |
The Company offers warranties on certain roll products that it sells. The specific terms and conditions of these warranties vary depending on the product sold, the country in which the product is sold and arrangements with the customer. The Company estimates the costs that may be incurred under its warranties and records a liability in Accrued Expenses on its Consolidated Balance Sheet for such costs. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, cost per claim and new product introduction. The Company periodically assesses the adequacy of its recorded warranty claims and adjusts the amounts as necessary. | |
Net Income Per Common Share | Net Income Per Common Share |
Net income per common share has been computed and presented pursuant to the provisions of ASC Topic 260, Earnings per Share (“Topic 260”). Net income per share is based on the weighted-average number of shares outstanding during the period. | |
Impairment | Impairment |
The Company reviews its long-lived assets that have finite lives for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment (“Topic 360”). This topic requires that companies evaluate the fair value of long-lived assets based on the anticipated undiscounted future cash flows to be generated by the assets when indicators of impairment exist to determine if there is impairment to the carrying value. Any change in the carrying amount of an asset as a result of the Company's evaluation has been recorded in either restructuring expense, if it was a result of the Company's restructuring activities, or general and administrative expense for all other impairments in the consolidated statements of operations. Impairment charges associated with restructuring are discussed in Note 7 "Restructuring Expense". | |
New Accounting Pronouncements | New Accounting Pronouncements |
In May of 2014, the FASB issued Accounting Standard Update No. 2014-09 Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when it satisfies the performance obligations. The Company will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is required to be adopted in January of 2017. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. The Company is in the process of evaluating this accounting standard update. | |
In February of 2015, the FASB issued Accounting Standard Update No. 2015-02 Consolidation ("ASU 2015-02"). ASU 2015-02 amends the existing consolidation requirements under GAAP and will require companies to reevaluate all previous consolidation requirements. ASU 2015-02 is required to be adopted in January of 2016. The Company is in the process of evaluating this accounting standard update. | |
In April of 2015, the FASB issued Accounting Standard Update No. 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying value of the debt liability, consistent with debt discounts. ASU 2015-03 is required to be adopted in January of 2016. The Company believes that the adoption of ASU 2015-03 will not have a material impact on its consolidated financial statements. |
Description_of_Business_and_Si2
Description of Business and Significant Accounting Policies (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||
Components of Inventories | The components of inventories are as follows at: | |||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Raw materials | $ | 13,229 | $ | 18,018 | ||||||||||||||||
Work in process | 27,504 | 28,756 | ||||||||||||||||||
Finished goods (includes consigned inventory of $8,586 at March 31, 2015 and $8,582 at December 31, 2014) | 41,262 | 43,072 | ||||||||||||||||||
Inventory allowances | (6,184 | ) | (6,296 | ) | ||||||||||||||||
$ | 75,811 | $ | 83,550 | |||||||||||||||||
Changes in Warranty Liability | The table below represents the changes in the Company’s warranty liability for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||
Beginning Balance | Charged to | Effect of Foreign | Deduction | Ending Balance | ||||||||||||||||
Cost | Currency | from | ||||||||||||||||||
of Sales | Translation | Reserves | ||||||||||||||||||
Three Months Ended March 31, 2015: | $ | 2,685 | $ | 336 | $ | (118 | ) | $ | (578 | ) | $ | 2,325 | ||||||||
Three Months Ended March 31, 2014: | $ | 1,629 | $ | 327 | $ | (5 | ) | $ | (422 | ) | $ | 1,529 | ||||||||
Computation of Basic and Diluted Weighted-Average Shares | The following table sets forth the computation of basic and diluted weighted-average shares: | |||||||||||||||||||
Three Months ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Weighted-average common shares outstanding–basic | 15,560,995 | 15,391,391 | ||||||||||||||||||
Dilutive effect of stock-based compensation awards outstanding | 918,373 | 980,381 | ||||||||||||||||||
Weighted-average common shares outstanding–diluted | 16,479,368 | 16,371,772 | ||||||||||||||||||
Derivatives_and_Hedging_Tables
Derivatives and Hedging (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Schedule of Derivative Instruments | The following represents the fair value of these derivatives at March 31, 2015 and December 31, 2014 and the change in fair value included in foreign exchange gain in the three months ended March 31, 2015 and 2014: | |||||||
March 31, 2015 | 31-Dec-14 | |||||||
Fair value of derivative liability | $ | (931 | ) | $ | (524 | ) | ||
Three Months Ended March 31, 2015: | Three Months Ended March 31, 2014: | |||||||
Change in fair value of derivative included in foreign exchange loss | $ | (2,059 | ) | $ | (1,211 | ) | ||
Notional Amounts of Foreign Exchange Forward Contracts | The following represents the notional amounts of foreign exchange forward contracts at March 31, 2015: | |||||||
Notional Sold | Notional Purchased | |||||||
Non-designated hedges of foreign exchange risk | $ | 12,498 | $ | (32,991 | ) | |||
Longterm_Debt_Tables
Long-term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long Term Debt | At March 31, 2015 and December 31, 2014, long term debt consisted of the following: | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Senior secured term loan facility, payable quarterly, U.S. Dollar denominated–LIBOR | $ | 225,526 | $ | 226,052 | ||||
(minimum 1.25%) plus 4.50% (5.75%) net of $0.8 million discount. Matures May of 2019. | ||||||||
Senior Notes (Unsecured), payable semi-annually–U.S. Dollar denominated interest rate fixed at 8.875%. Matures June of 2018. | 236,410 | 236,410 | ||||||
Notes payable, working capital loan, variable interest rate at 1.3%. Matures June 30, 2015, with one-year rollover option. | 3,267 | 244 | ||||||
Other debt | 3,970 | 2,784 | ||||||
Total debt | 469,173 | 465,490 | ||||||
Less current maturities of long term debt and notes payable | 8,894 | 4,650 | ||||||
Total long term debt | $ | 460,279 | $ | 460,840 | ||||
Pensions_Other_Postretirement_1
Pensions, Other Post-retirement and Post-employment Benefits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Components of Net Periodic Benefit Cost | As required by Topic 715, the following tables summarize the components of net periodic benefit cost: | |||||||
Defined Benefit Plans | ||||||||
Three Months ended March 31, | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 842 | $ | 816 | ||||
Interest cost | 1,670 | 1,650 | ||||||
Expected return on plan assets | (1,815 | ) | (1,564 | ) | ||||
Amortization of net loss | 755 | 295 | ||||||
Net periodic benefit cost | $ | 1,452 | $ | 1,197 | ||||
Comprehensive_Loss_and_Accumul1
Comprehensive Loss and Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Components of Comprehensive Loss, Net of Tax | Comprehensive loss for the three months ended March 31, 2015 (net of tax expense of $851) and 2014 (net of tax benefits of $32) is as follows: | |||||||||||||||
Three Months ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Net income | $ | 1,733 | $ | 1,167 | ||||||||||||
Foreign currency translation adjustments | (32,857 | ) | (1,669 | ) | ||||||||||||
Pension liability changes under Topic 715 | 1,684 | (275 | ) | |||||||||||||
Change in value of derivative instruments | 42 | 19 | ||||||||||||||
Comprehensive loss | $ | (29,398 | ) | $ | (758 | ) | ||||||||||
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss for the three months ended March 31, 2015 are as follows (net of tax benefits of $7,302): | |||||||||||||||
Foreign | Pension | Change in | Accumulated | |||||||||||||
Currency | Liability | Value of | Other | |||||||||||||
Translation | Changes Under | Derivative | Comprehensive | |||||||||||||
Adjustment | Topic 715 | Instruments | (Loss) Income | |||||||||||||
Balance at December 31, 2014 | $ | (39,014 | ) | $ | (46,816 | ) | $ | (108 | ) | $ | (85,938 | ) | ||||
Other comprehensive income before reclassifications | (32,857 | ) | 929 | — | (31,928 | ) | ||||||||||
Amounts reclassified from other comprehensive income | ||||||||||||||||
Amortization of actuarial losses | — | 755 | — | 755 | ||||||||||||
Amortization of interest expense | — | — | 42 | 42 | ||||||||||||
Net current period other comprehensive (loss) income | (32,857 | ) | 1,684 | 42 | (31,131 | ) | ||||||||||
Balance at March 31, 2015 | $ | (71,871 | ) | $ | (45,132 | ) | $ | (66 | ) | $ | (117,069 | ) | ||||
Restructuring_and_Impairment_E1
Restructuring and Impairment Expense (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Restructuring Programs | The following table sets forth the significant components of the restructuring accrual (included in Accrued Expenses on our Consolidated Balance Sheet), including activity under restructuring programs for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||
Balance at | Charges | Currency | Cash | Balance at | ||||||||||||||||
December 31, | Effects | Payments | 31-Mar-15 | |||||||||||||||||
2014 | ||||||||||||||||||||
Severance and other benefits | $ | 4,880 | $ | 881 | $ | (243 | ) | $ | (1,286 | ) | $ | 4,232 | ||||||||
Facility costs and other | 818 | 1,343 | (365 | ) | (1,796 | ) | — | |||||||||||||
Total | $ | 5,698 | $ | 2,224 | $ | (608 | ) | $ | (3,082 | ) | $ | 4,232 | ||||||||
Balance at | Charges | Currency | Cash | Balance at | ||||||||||||||||
December 31, | Effects | Payments | 31-Mar-14 | |||||||||||||||||
2013 | ||||||||||||||||||||
Severance and other benefits | $ | 6,466 | $ | 4,411 | $ | (46 | ) | $ | (2,240 | ) | $ | 8,591 | ||||||||
Facility costs and other | 1,468 | 240 | (11 | ) | (312 | ) | 1,385 | |||||||||||||
Total | $ | 7,934 | $ | 4,651 | $ | (57 | ) | $ | (2,552 | ) | $ | 9,976 | ||||||||
Restructuring and Impairment Expense by Segment | Restructuring and impairment expense by segment, which is not included in Segment Earnings in Note 8, is as follows: | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Clothing | $ | 2,092 | $ | 2,254 | ||||||||||||||||
Roll Covers | 101 | 2,397 | ||||||||||||||||||
Corporate | 31 | — | ||||||||||||||||||
Total | $ | 2,224 | $ | 4,651 | ||||||||||||||||
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Summarized Financial Information and Segment Earnings (Loss) | Summarized financial information for the Company’s reportable segments is presented in the tables that follow for the three months ended March 31, 2015 and 2014. | |||||||||||||||
Clothing | Roll | Corporate | Total | |||||||||||||
Covers | ||||||||||||||||
Three Months Ended March 31, 2015: | ||||||||||||||||
Net Sales | $ | 77,284 | $ | 43,745 | $ | — | $ | 121,029 | ||||||||
Segment Earnings (Loss) | $ | 21,766 | $ | 8,091 | $ | (3,647 | ) | |||||||||
Three Months Ended March 31, 2014: | ||||||||||||||||
Net Sales | $ | 88,971 | $ | 44,413 | $ | — | $ | 133,384 | ||||||||
Segment Earnings (Loss) | $ | 21,392 | $ | 7,379 | $ | (3,069 | ) | |||||||||
Provided below is a reconciliation of Segment Earnings (Loss) to income before provision for income taxes for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||
Three Months ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Segment Earnings (Loss): | ||||||||||||||||
Clothing | $ | 21,766 | $ | 21,392 | ||||||||||||
Roll Covers | 8,091 | 7,379 | ||||||||||||||
Corporate | (3,647 | ) | (3,069 | ) | ||||||||||||
Stock-based compensation | (822 | ) | (509 | ) | ||||||||||||
Interest expense, net | (9,664 | ) | (8,657 | ) | ||||||||||||
Depreciation and amortization | (7,242 | ) | (8,649 | ) | ||||||||||||
Restructuring expense | (2,224 | ) | (4,651 | ) | ||||||||||||
Plant startup costs | (750 | ) | (176 | ) | ||||||||||||
Income before provision for income taxes | $ | 5,508 | $ | 3,060 | ||||||||||||
StockBased_Compensation_and_St1
Stock-Based Compensation and Stockholders' Deficit (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock-Based Compensation Expense | The Company recorded stock-based compensation expense during the three months ended March 31, 2015 and March 31, 2014 as follows: | ||||||||
Three Months ended March 31, | |||||||||
2015 | 2014 | ||||||||
RSU, Options and DSU Awards (1) | $ | 822 | $ | 509 | |||||
-1 | Related to RSUs, Options and DSUs awarded to certain employees and non-employee directors. |
Supplemental_Guarantor_Financi1
Supplemental Guarantor Financial Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||
Consolidating Balance Sheet (Unaudited) | Xerium Technologies, Inc. | |||||||||||||||||||
Consolidating Balance Sheet—(Unaudited) | ||||||||||||||||||||
At March 31, 2015 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 735 | $ | (15 | ) | $ | 8,106 | $ | — | $ | 8,826 | |||||||||
Accounts receivable, net | 97 | 22,078 | 55,794 | — | 77,969 | |||||||||||||||
Intercompany receivables | (102,773 | ) | 111,030 | (8,257 | ) | — | — | |||||||||||||
Inventories, net | — | 16,263 | 60,419 | (871 | ) | 75,811 | ||||||||||||||
Prepaid expenses | 1,875 | 927 | 5,336 | — | 8,138 | |||||||||||||||
Other current assets | — | 1,695 | 12,828 | — | 14,523 | |||||||||||||||
Total current assets | (100,066 | ) | 151,978 | 134,226 | (871 | ) | 185,267 | |||||||||||||
Property and equipment, net | 16,701 | 59,242 | 215,647 | — | 291,590 | |||||||||||||||
Investments | 798,802 | 183,408 | — | (982,210 | ) | — | ||||||||||||||
Goodwill | — | 17,737 | 38,525 | — | 56,262 | |||||||||||||||
Intangible assets | 8,191 | 1,595 | 931 | — | 10,717 | |||||||||||||||
Non-current deferred tax asset | — | — | 8,485 | — | 8,485 | |||||||||||||||
Other assets | — | 364 | 8,336 | — | 8,700 | |||||||||||||||
Total assets | $ | 723,628 | $ | 414,324 | $ | 406,150 | $ | (983,081 | ) | $ | 561,021 | |||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 2,842 | $ | 9,216 | $ | 25,012 | $ | — | $ | 37,070 | ||||||||||
Accrued expenses | 14,197 | 8,351 | 35,215 | — | 57,763 | |||||||||||||||
Current notes payable | — | — | 3,267 | — | 3,267 | |||||||||||||||
Current maturities of long-term debt | 2,772 | 449 | 2,406 | — | 5,627 | |||||||||||||||
Total current liabilities | 19,811 | 18,016 | 65,900 | — | 103,727 | |||||||||||||||
Long-term debt, net of current maturities | 460,279 | — | — | — | 460,279 | |||||||||||||||
Capitalized lease obligations | 3,206 | 495 | 694 | — | 4,395 | |||||||||||||||
Non-current deferred tax liability | 607 | 1,035 | 5,679 | — | 7,321 | |||||||||||||||
Pension, other post-retirement and post-employment obligations | 22,009 | 1,569 | 51,637 | — | 75,215 | |||||||||||||||
Other long-term liabilities | 200 | — | 12,791 | — | 12,991 | |||||||||||||||
Intercompany loans | 307,868 | (397,350 | ) | 89,482 | — | — | ||||||||||||||
Total stockholders’ (deficit) equity | (90,352 | ) | 790,559 | 179,967 | (983,081 | ) | (102,907 | ) | ||||||||||||
Total liabilities and stockholders’ equity | $ | 723,628 | $ | 414,324 | $ | 406,150 | $ | (983,081 | ) | $ | 561,021 | |||||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||||||
At December 31, 2014 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 605 | $ | (15 | ) | $ | 8,927 | $ | — | $ | 9,517 | |||||||||
Accounts receivable, net | 50 | 22,358 | 60,661 | — | 83,069 | |||||||||||||||
Intercompany receivables | (107,064 | ) | 107,590 | (526 | ) | — | — | |||||||||||||
Inventories, net | — | 17,310 | 67,016 | (776 | ) | 83,550 | ||||||||||||||
Prepaid expenses | 546 | 1,470 | 6,456 | — | 8,472 | |||||||||||||||
Other current assets | — | 2,021 | 13,693 | — | 15,714 | |||||||||||||||
Total current assets | (105,863 | ) | 150,734 | 156,227 | (776 | ) | 200,322 | |||||||||||||
Property and equipment, net | 12,365 | 59,448 | 231,804 | — | 303,617 | |||||||||||||||
Investments | 782,633 | 229,109 | — | (1,011,742 | ) | — | ||||||||||||||
Goodwill | — | 17,737 | 44,190 | — | 61,927 | |||||||||||||||
Intangible assets | 9,001 | 1,664 | 1,042 | — | 11,707 | |||||||||||||||
Non-current deferred tax asset | — | — | 10,662 | 10,662 | ||||||||||||||||
Other assets | — | 364 | 5,445 | — | 5,809 | |||||||||||||||
Total assets | $ | 698,136 | $ | 459,056 | $ | 449,370 | $ | (1,012,518 | ) | $ | 594,044 | |||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 2,679 | $ | 10,212 | $ | 28,936 | $ | — | $ | 41,827 | ||||||||||
Accrued expenses | 8,511 | 8,301 | 39,297 | — | 56,109 | |||||||||||||||
Current notes payable | — | — | 244 | — | 244 | |||||||||||||||
Current maturities of long-term debt | 2,944 | — | 1,462 | — | 4,406 | |||||||||||||||
Total current liabilities | 14,134 | 18,513 | 69,939 | — | 102,586 | |||||||||||||||
Long-term debt, net of current maturities | 460,840 | — | — | — | 460,840 | |||||||||||||||
Liabilities under capital leases | 3,503 | 440 | 2 | — | 3,945 | |||||||||||||||
Non-current deferred tax liability | 97 | 1,035 | 9,284 | — | 10,416 | |||||||||||||||
Pension, other post-retirement and post-employment obligations | 22,070 | 1,200 | 57,201 | — | 80,471 | |||||||||||||||
Other long-term liabilities | 181 | — | 9,715 | — | 9,896 | |||||||||||||||
Intercompany loans | 289,896 | (401,482 | ) | 111,586 | — | — | ||||||||||||||
Total stockholders’ (deficit) equity | (92,585 | ) | 839,350 | 191,643 | (1,012,518 | ) | (74,110 | ) | ||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | 698,136 | $ | 459,056 | $ | 449,370 | $ | (1,012,518 | ) | $ | 594,044 | |||||||||
Consolidating Statement of Operations and Comprehensive (Loss) Income (Unaudited) | Xerium Technologies, Inc. | |||||||||||||||||||
Consolidating Statement of Operations and Comprehensive Income (Loss) (Unaudited) | ||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
Net sales | $ | — | $ | 42,850 | $ | 81,688 | $ | (3,509 | ) | $ | 121,029 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of products sold | (348 | ) | 29,378 | 46,860 | (3,414 | ) | 72,476 | |||||||||||||
Selling | 268 | 4,801 | 11,257 | — | 16,326 | |||||||||||||||
General and administrative | 2,828 | 1,411 | 9,607 | — | 13,846 | |||||||||||||||
Research and development | 232 | 1,196 | 534 | — | 1,962 | |||||||||||||||
Restructuring and impairment | 7,952 | 175 | (5,903 | ) | — | 2,224 | ||||||||||||||
10,932 | 36,961 | 62,355 | (3,414 | ) | 106,834 | |||||||||||||||
(Loss) income from operations | (10,932 | ) | 5,889 | 19,333 | (95 | ) | 14,195 | |||||||||||||
Interest (expense) income, net | (9,399 | ) | 1,160 | (1,425 | ) | — | (9,664 | ) | ||||||||||||
Foreign exchange gain (loss) | 213 | (141 | ) | 905 | — | 977 | ||||||||||||||
Equity in subsidiaries income | 21,669 | 5,223 | — | (26,892 | ) | — | ||||||||||||||
Dividend income | 700 | 700 | (1,400 | ) | — | — | ||||||||||||||
Income before provision for income taxes | 2,251 | 12,831 | 17,413 | (26,987 | ) | 5,508 | ||||||||||||||
Provision for income taxes | (518 | ) | (29 | ) | (3,228 | ) | — | (3,775 | ) | |||||||||||
Net income | $ | 1,733 | $ | 12,802 | $ | 14,185 | $ | (26,987 | ) | $ | 1,733 | |||||||||
Comprehensive income (loss) | $ | 1,631 | $ | 13,443 | $ | (17,485 | ) | $ | (26,987 | ) | $ | (29,398 | ) | |||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Statement of Operations and Comprehensive Income-(Unaudited) | ||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
Net sales | $ | — | $ | 43,156 | $ | 99,265 | $ | (9,037 | ) | $ | 133,384 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of products sold | (419 | ) | 29,999 | 60,731 | (9,093 | ) | 81,218 | |||||||||||||
Selling | 113 | 5,068 | 12,997 | — | 18,178 | |||||||||||||||
General and administrative | 1,884 | 2,520 | 10,393 | — | 14,797 | |||||||||||||||
Research and development | 276 | 1,118 | 552 | — | 1,946 | |||||||||||||||
Restructuring and impairment | (18 | ) | 237 | 4,432 | — | 4,651 | ||||||||||||||
1,836 | 38,942 | 89,105 | (9,093 | ) | 120,790 | |||||||||||||||
(Loss) income from operations | (1,836 | ) | 4,214 | 10,160 | 56 | 12,594 | ||||||||||||||
Interest (expense) income, net | (8,242 | ) | 1,395 | (1,810 | ) | — | (8,657 | ) | ||||||||||||
Foreign exchange loss | (12 | ) | (81 | ) | (784 | ) | — | (877 | ) | |||||||||||
Equity in subsidiaries income | 11,731 | 5,892 | — | (17,623 | ) | — | ||||||||||||||
Income before provision for income taxes | 1,641 | 11,420 | 7,566 | (17,567 | ) | 3,060 | ||||||||||||||
Provision for income taxes | (474 | ) | (34 | ) | (1,385 | ) | — | (1,893 | ) | |||||||||||
Net income | $ | 1,167 | $ | 11,386 | $ | 6,181 | $ | (17,567 | ) | $ | 1,167 | |||||||||
Comprehensive income | $ | 1,578 | $ | 11,116 | $ | 4,115 | $ | (17,567 | ) | $ | (758 | ) | ||||||||
Consolidating Statement of Cash Flows (Unaudited) | Xerium Technologies, Inc. | |||||||||||||||||||
Consolidating Statement of Cash Flows-(Unaudited) | ||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | 1,733 | $ | 12,802 | $ | 14,185 | $ | (26,987 | ) | $ | 1,733 | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Stock-based compensation | 752 | — | 70 | — | 822 | |||||||||||||||
Depreciation | 361 | 1,719 | 5,083 | — | 7,163 | |||||||||||||||
Amortization of intangibles | — | 69 | 10 | — | 79 | |||||||||||||||
Deferred financing cost amortization | 852 | — | 23 | — | 875 | |||||||||||||||
Foreign exchange gain on revaluation of debt | (1,973 | ) | — | — | — | (1,973 | ) | |||||||||||||
Deferred tax expense | 511 | — | 468 | — | 979 | |||||||||||||||
Loss (gain) on disposition of property and equipment | — | 25 | (11 | ) | — | 14 | ||||||||||||||
Provision for doubtful accounts | — | 49 | 423 | — | 472 | |||||||||||||||
Undistributed equity in earnings of subsidiaries | (21,669 | ) | (5,223 | ) | — | 26,892 | — | |||||||||||||
Change in assets and liabilities which provided (used) cash: | ||||||||||||||||||||
Accounts receivable | (47 | ) | 231 | (776 | ) | — | (592 | ) | ||||||||||||
Inventories | — | 1,047 | 294 | 95 | 1,436 | |||||||||||||||
Prepaid expenses | (1,328 | ) | 543 | 810 | — | 25 | ||||||||||||||
Other current assets | — | 326 | (2,005 | ) | — | (1,679 | ) | |||||||||||||
Accounts payable and accrued expenses | 5,618 | (947 | ) | (2,453 | ) | — | 2,218 | |||||||||||||
Deferred and other long-term liabilities | (42 | ) | 347 | (3,876 | ) | — | (3,571 | ) | ||||||||||||
Intercompany loans | (4,290 | ) | (3,343 | ) | 7,633 | — | — | |||||||||||||
Net cash (used in) provided by operating activities | (19,522 | ) | 7,645 | 19,878 | — | 8,001 | ||||||||||||||
Investing activities | ||||||||||||||||||||
Capital expenditures, gross | (4,697 | ) | (1,103 | ) | (6,355 | ) | — | (12,155 | ) | |||||||||||
Intercompany property and equipment transfers, net | — | 191 | (191 | ) | — | — | ||||||||||||||
Proceeds from disposals of property and equipment | — | 26 | 6 | — | 32 | |||||||||||||||
Net cash used in investing activities | (4,697 | ) | (886 | ) | (6,540 | ) | — | (12,123 | ) | |||||||||||
Financing activities | — | |||||||||||||||||||
Proceeds from borrowings | 13,516 | — | 9,052 | — | 22,568 | |||||||||||||||
Principal payments on debt | (14,059 | ) | — | (4,272 | ) | — | (18,331 | ) | ||||||||||||
Dividends paid | — | (1,400 | ) | 1,400 | — | — | ||||||||||||||
Payment of obligations under capital leases | (161 | ) | (101 | ) | (3 | ) | — | (265 | ) | |||||||||||
Payment of financing fees | (34 | ) | — | 9 | — | (25 | ) | |||||||||||||
Intercompany loans | 19,587 | (5,258 | ) | (14,329 | ) | — | — | |||||||||||||
Other financing activities | 5,500 | (5,500 | ) | — | ||||||||||||||||
Net cash provided by (used in) financing activities | 24,349 | (6,759 | ) | (13,643 | ) | — | 3,947 | |||||||||||||
Effect of exchange rate changes on cash flows | — | — | (516 | ) | — | (516 | ) | |||||||||||||
Net increase (decrease) in cash | 130 | — | (821 | ) | — | (691 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 605 | (15 | ) | 8,927 | — | 9,517 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 735 | $ | (15 | ) | $ | 8,106 | $ | — | $ | 8,826 | |||||||||
Xerium Technologies, Inc. | ||||||||||||||||||||
Consolidating Statement of Cash Flows (Unaudited) | ||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
Parent | Total | Total Non | Other | The | ||||||||||||||||
Guarantors | Guarantors | Eliminations | Company | |||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | 1,167 | $ | 11,386 | $ | 6,181 | $ | (17,567 | ) | $ | 1,167 | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Stock-based compensation | 456 | — | 53 | — | 509 | |||||||||||||||
Depreciation | 108 | 1,850 | 6,275 | — | 8,233 | |||||||||||||||
Amortization of intangibles | — | 384 | 32 | — | 416 | |||||||||||||||
Deferred financing cost amortization | 716 | — | — | — | 716 | |||||||||||||||
Foreign exchange gain on revaluation of debt | (1,103 | ) | — | — | — | (1,103 | ) | |||||||||||||
Deferred taxes | 282 | — | (1,090 | ) | — | (808 | ) | |||||||||||||
Loss on disposition of property and equipment | — | 22 | 5 | — | 27 | |||||||||||||||
Provision for doubtful accounts | — | 165 | 80 | — | 245 | |||||||||||||||
Undistributed equity in earnings of subsidiaries | (11,731 | ) | (5,892 | ) | — | 17,623 | — | |||||||||||||
Change in assets and liabilities which provided (used) cash: | ||||||||||||||||||||
Accounts receivable | (61 | ) | (1,762 | ) | (5,229 | ) | — | (7,052 | ) | |||||||||||
Inventories | — | (387 | ) | (3,605 | ) | (56 | ) | (4,048 | ) | |||||||||||
Prepaid expenses | 201 | (351 | ) | 1,750 | — | 1,600 | ||||||||||||||
Other current assets | 515 | (623 | ) | 927 | — | 819 | ||||||||||||||
Accounts payable and accrued expenses | 2,767 | (11 | ) | 1,446 | — | 4,202 | ||||||||||||||
Deferred and other long-term liabilities | (182 | ) | (828 | ) | (1,150 | ) | — | (2,160 | ) | |||||||||||
Intercompany loans | (1,171 | ) | 1,401 | (230 | ) | — | — | |||||||||||||
Net cash (used in) provided by operating activities | (8,036 | ) | 5,354 | 5,445 | — | 2,763 | ||||||||||||||
Investing activities | ||||||||||||||||||||
Capital expenditures, gross | (5,537 | ) | (922 | ) | (4,035 | ) | — | (10,494 | ) | |||||||||||
Intercompany property and equipment transfers, net | — | — | — | — | — | |||||||||||||||
Proceeds from disposals of property and equipment | — | 35 | 8 | — | 43 | |||||||||||||||
Net cash used in investing activities | (5,537 | ) | (887 | ) | (4,027 | ) | — | (10,451 | ) | |||||||||||
Financing activities | — | |||||||||||||||||||
Proceeds from borrowings | 7,580 | — | — | — | 7,580 | |||||||||||||||
Principal payments on debt | (6,600 | ) | — | — | — | (6,600 | ) | |||||||||||||
Payments of obligations under capitalized leases | (126 | ) | (64 | ) | — | — | (190 | ) | ||||||||||||
Payment of deferred financing fees | (710 | ) | — | — | — | (710 | ) | |||||||||||||
Intercompany loans | 9,994 | (4,404 | ) | (5,590 | ) | — | — | |||||||||||||
Net cash provided by (used in) financing activities | 10,138 | (4,468 | ) | (5,590 | ) | — | 80 | |||||||||||||
Effect of exchange rate changes on cash flows | — | — | (95 | ) | — | (95 | ) | |||||||||||||
Net (decrease) increase in cash | (3,435 | ) | (1 | ) | (4,267 | ) | — | (7,703 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 4,120 | (10 | ) | 21,606 | — | 25,716 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 685 | $ | (11 | ) | $ | 17,339 | $ | — | $ | 18,013 | |||||||||
Description_of_Business_and_Si3
Description of Business and Significant Accounting Policies - Components of Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $13,229 | $18,018 |
Work in process | 27,504 | 28,756 |
Finished goods (includes consigned inventory of $8,586 at March 31, 2015 and $8,582 at December 31, 2014) | 41,262 | 43,072 |
Inventory allowances | -6,184 | -6,296 |
Inventories, net | 75,811 | 83,550 |
Consigned inventory | $8,586 | $8,582 |
Description_of_Business_and_Si4
Description of Business and Significant Accounting Policies - Changes In Warranty Liability (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Warranties, Increase (Decrease) | ||
Beginning Balance | $2,685 | $1,629 |
Charged to Cost of Sales | 336 | 327 |
Effect of Foreign Currency Translation | -118 | -5 |
Deduction from Reserves | -578 | -422 |
Ending Balance | $2,325 | $1,529 |
Description_of_Business_and_Si5
Description of Business and Significant Accounting Policies - Net Income (Loss) Per Common Share (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Weighted-average common shares outstanding–basic (in shares) | 15,560,995 | 15,391,391 |
Dilutive effect of stock-based compensation awards outstanding (in shares) | 918,373 | 980,381 |
Weighted-average common shares outstanding–diluted (in shares) | 16,479,368 | 16,371,772 |
Dilutive securities not included in the computation of diluted earnings per share | 21,957 | 1,700,000 |
Description_of_Business_and_Si6
Description of Business and Significant Accounting Policies - Additional Information (Details) (Restructuring Expense, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Restructuring Expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment | $0 | $0 |
Derivatives_and_Hedging_Narrat
Derivatives and Hedging - Narrative (Details) (Designated as Hedging Instrument, Interest Rate Swap) | Mar. 31, 2015 |
derivative_instrument | |
Designated as Hedging Instrument | Interest Rate Swap | |
Derivative [Line Items] | |
Number of derivative instruments | 0 |
Derivatives_and_Hedging_Schedu
Derivatives and Hedging - Schedule of Derivative Instruments (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Derivative [Line Items] | |||
Change in fair value of derivative included in foreign exchange (loss) gain | ($2,059) | ($1,211) | |
Not Designated as Hedging Instrument | Foreign Exchange Forward Contracts | |||
Derivative [Line Items] | |||
Fair value of derivative liability | ($931) | ($524) |
Derivatives_and_Hedging_Notion
Derivatives and Hedging - Notional Amounts of Foreign Exchange Forward Contracts (Detail) (Not Designated as Hedging Instrument, Foreign Exchange Forward Contracts, USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Sold | |
Derivative [Line Items] | |
Non-designated hedges of foreign exchange risk | $12,498 |
Purchased | |
Derivative [Line Items] | |
Non-designated hedges of foreign exchange risk | $32,991 |
Long_term_Debt_Schedule_of_Lon
Long term Debt - Schedule of Long Term Debt (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | 17-May-13 | |
Debt Instrument [Line Items] | |||
Long-term debt | $469,173,000 | $465,200,000 | |
Notes payable | 3,267,000 | 244,000 | |
Total debt | 469,173,000 | 465,490,000 | |
Less current maturities of long term debt and notes payable | 8,894,000 | 4,650,000 | |
Total long term debt | 460,279,000 | 460,840,000 | |
Other Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 3,970,000 | 2,784,000 | |
Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | 3,267,000 | 244,000 | |
Debt instrument variable interest rate | 1.30% | 1.30% | |
Rollover option period | 1 year | ||
Senior Secured Term Loan Facility | Senior Secured Term Loan Facility, Payable Quarterly, US Dollar Denominated, Matures May 2019 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 225,526,000 | 226,052,000 | |
Debt discount | 800,000 | 1,000,000 | |
Senior Secured Term Loan Facility | Senior Secured Term Loan Facility, Payable Quarterly, US Dollar Denominated, Matures May 2019 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt Instrument, minimum variable rate basis | 1.25% | ||
Debt instrument, basis spread on variable rate | 4.50% | ||
Senior Secured Term Loan Facility | Senior Secured Term Loan Facility, Payable Quarterly, US Dollar Denominated, Matures May 2019 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.75% | ||
Senior Notes (Unsecured) | Senior Notes Unsecured, Payable Semi Annually, US Dollar Denominated Interest Rate Fixed at 8.875%, Matures June 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $236,410,000 | $236,410,000 | |
Debt instrument fixed interest rate | 8.88% | 8.88% |
Long_term_Debt_Additional_Info
Long term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Aug. 18, 2014 | Dec. 31, 2014 | 17-May-13 | Mar. 03, 2014 | |
Debt Instrument [Line Items] | ||||||
Proceeds from borrowings | $22,568,000 | $7,580,000 | ||||
Carrying value of long-term debt | 469,173,000 | 465,200,000 | ||||
Remaining borrowing capacity | 5,100,000 | |||||
Fair value of long-term debt | 479,200,000 | 478,200,000 | ||||
Liabilities under capital leases | 4,395,000 | 3,945,000 | ||||
Credit Facility and Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt discount | 800,000 | |||||
Carrying value of long-term debt | 461,900,000 | |||||
Senior Secured Term Loan Facility, Payable Quarterly, US Dollar Denominated, Matures May 2019 | Senior Secured Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 200,000,000 | |||||
Debt discount | 800,000 | 1,000,000 | ||||
Proceeds from borrowings | 30,000,000 | |||||
Carrying value of long-term debt | 225,526,000 | 226,052,000 | ||||
ABL Secured Facility | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Amount outstanding | 11,700,000 | |||||
ABL Secured Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Current borrowing capacity | 40,000,000 | 55,000,000 | ||||
Debt instrument, covenant compliance, maximum annual capital expenditures | 42,000,000 | |||||
Remaining borrowing capacity | 32,400,000 | |||||
Amount outstanding | 44,100,000 | |||||
ABL Secured Facility - European | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Current borrowing capacity | 15,000,000 | |||||
Brazil | Foreign Tax Authority | Senior Secured Term Loan Facility, Payable Quarterly, US Dollar Denominated, Matures May 2019 | Senior Secured Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from borrowings | $30,000,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Taxes [Line Items] | ||
Provision for income taxes | $3,775 | $1,893 |
Gross unrecognized tax benefit | 7,791 | |
Increase in unrecognized tax benefits | 289 | |
Unrecognized tax benefit increase resulting from potential settlement | 1,097 | |
Unrecognized tax benefits related to income tax matters and income tax expense | $738 | |
Minimum | ||
Income Taxes [Line Items] | ||
Statutory income tax rate in foreign countries | 15.00% | |
Maximum | ||
Income Taxes [Line Items] | ||
Statutory income tax rate in foreign countries | 37.10% |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pensions, Other Post-Retirement And Post-Employment Benefits [Abstract] | ||
Service cost | $842 | $816 |
Interest cost | 1,670 | 1,650 |
Expected return on plan assets | -1,815 | -1,564 |
Amortization of net loss | 755 | 295 |
Net periodic benefit cost | $1,452 | $1,197 |
Comprehensive_Loss_and_Accumul2
Comprehensive Loss and Accumulated Other Comprehensive Loss - Components of Comprehensive Loss, Net of Tax (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Comprehensive Income Loss and Accumulated Other Comprehensive Income (Loss) [Abstract] | ||
Net income | $1,733 | $1,167 |
Foreign currency translation adjustments | -32,857 | -1,669 |
Pension liability changes under Topic 715 | 1,684 | -275 |
Change in value of derivative instruments | 42 | 19 |
Comprehensive loss | -29,398 | -758 |
Other comprehensive loss, tax expense (benefit) | $851 | ($32) |
Comprehensive_Loss_and_Accumul3
Comprehensive Loss and Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at Beginning | ($85,938) |
Other comprehensive income before reclassifications | -31,928 |
Amounts reclassified from other comprehensive income | |
Amortization of actuarial losses | 755 |
Amortization of interest expense | 42 |
Net current period other comprehensive (loss) income | -31,131 |
Balance at End | -117,069 |
Accumulated other comprehensive loss, tax benefit | 7,302 |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at Beginning | -39,014 |
Other comprehensive income before reclassifications | -32,857 |
Amounts reclassified from other comprehensive income | |
Amortization of actuarial losses | 0 |
Amortization of interest expense | 0 |
Net current period other comprehensive (loss) income | -32,857 |
Balance at End | -71,871 |
Pension Liability Changes Under Topic 715 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at Beginning | -46,816 |
Other comprehensive income before reclassifications | 929 |
Amounts reclassified from other comprehensive income | |
Amortization of actuarial losses | 755 |
Amortization of interest expense | 0 |
Net current period other comprehensive (loss) income | 1,684 |
Balance at End | -45,132 |
Change in Value of Derivative Instruments | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at Beginning | -108 |
Other comprehensive income before reclassifications | 0 |
Amounts reclassified from other comprehensive income | |
Amortization of actuarial losses | 0 |
Amortization of interest expense | 42 |
Net current period other comprehensive (loss) income | 42 |
Balance at End | ($66) |
Comprehensive_Loss_and_Accumul4
Comprehensive Loss and Accumulated Other Comprehensive Loss - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income before reclassifications | ($31,928) | ||
Foreign currency translation adjustments | -32,857 | -1,669 | |
Net equity of foreign subsidiary | -102,907 | -74,110 | |
Europe | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net equity of foreign subsidiary | 151,000 | ||
Brazil | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net equity of foreign subsidiary | $107,000 | ||
Euro | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency exchange rate | 1.13 | 1.33 | |
Brazil Real | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency exchange rate | 0.35 | 0.43 |
Restructuring_and_Impairment_E2
Restructuring and Impairment Expense - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $2,224 | $4,651 |
Headcount Reductions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 924 | |
Brazil | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $1,300 |
Restructuring_and_Impairment_E3
Restructuring and Impairment Expense - Restructuring Programs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Reserve | ||
Beginning Balance | $5,698 | $7,934 |
Charges | 2,224 | 4,651 |
Currency Effects | -608 | -57 |
Cash Payments | -3,082 | -2,552 |
Ending Balance | 4,232 | 9,976 |
Severance and other benefits | ||
Restructuring Reserve | ||
Beginning Balance | 4,880 | 6,466 |
Charges | 881 | 4,411 |
Currency Effects | -243 | -46 |
Cash Payments | -1,286 | -2,240 |
Ending Balance | 4,232 | 8,591 |
Facility costs and other | ||
Restructuring Reserve | ||
Beginning Balance | 818 | 1,468 |
Charges | 1,343 | 240 |
Currency Effects | -365 | -11 |
Cash Payments | -1,796 | -312 |
Ending Balance | $0 | $1,385 |
Restructuring_and_Impairment_E4
Restructuring and Impairment Expense - Restructuring and Impairment Expense by Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $2,224 | $4,651 |
Clothing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 2,092 | 2,254 |
Roll Covers | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 101 | 2,397 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $31 | $0 |
Business_Segment_Information_A
Business Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Business_Segment_Information_S
Business Segment Information - Summarized Financial Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net Sales | $121,029 | $133,384 |
Segment Earnings (Loss) | 14,195 | 12,594 |
Operating Segments | Clothing | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 77,284 | 88,971 |
Segment Earnings (Loss) | 21,766 | 21,392 |
Operating Segments | Roll Covers | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 43,745 | 44,413 |
Segment Earnings (Loss) | 8,091 | 7,379 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 0 | 0 |
Segment Earnings (Loss) | ($3,647) | ($3,069) |
Business_Segment_Information_R
Business Segment Information - Reconciliation of Segment Earnings (Loss) To Income Before Provision For Income Taxes (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Earnings (Loss): | ||
Segment Earnings (Loss) | $14,195 | $12,594 |
Stock-based compensation | -822 | -509 |
Interest expense, net | -9,664 | -8,657 |
Depreciation and amortization | -7,242 | -8,649 |
Restructuring expense | -2,224 | -4,651 |
Plant startup costs | -750 | -176 |
Income before provision for income taxes | 5,508 | 3,060 |
Clothing | ||
Segment Earnings (Loss): | ||
Restructuring expense | -2,092 | -2,254 |
Roll Covers | ||
Segment Earnings (Loss): | ||
Restructuring expense | -101 | -2,397 |
Operating Segments | Clothing | ||
Segment Earnings (Loss): | ||
Segment Earnings (Loss) | 21,766 | 21,392 |
Operating Segments | Roll Covers | ||
Segment Earnings (Loss): | ||
Segment Earnings (Loss) | 8,091 | 7,379 |
Corporate, Non-Segment | ||
Segment Earnings (Loss): | ||
Segment Earnings (Loss) | ($3,647) | ($3,069) |
StockBased_Compensation_and_St2
Stock-Based Compensation and Stockholders' Deficit - Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $822 | $509 | ||
RSU, Options and DSU Awards | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $822 | [1] | $509 | [1] |
[1] | Related to RSUs, Options and DSUs awarded to certain employees and non-employee directors. |
StockBased_Compensation_and_St3
Stock-Based Compensation and Stockholders' Deficit - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 02, 2015 |
2011 DSU Plan | Deferred Stock Unit (DSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual retainer per director | $132 | |
Shares issued | 7,062 | |
Percentage of retainer payable in shares | 50.00% | |
Percentage of retainer payable in shares and/or cash | 50.00% | |
2015 - 2017 LTIP | Time-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 52,601 | |
Percent of target award | 35.00% | |
Award vesting period | 3 years | |
2015 - 2017 LTIP | Performance-Based and Market-Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 97,681 | |
Percent of target award | 65.00% | |
2015 - 2017 LTIP | Performance-Based Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance measurement period | 3 years | |
2015 - 2017 LTIP | Performance-Based Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 0.00% | |
2015 - 2017 LTIP | Performance-Based Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 100.00% | |
Percentage of award payout | 100.00% | |
2015 - 2017 LTIP | Market-Based Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance measurement period | 3 years | |
2015 - 2017 LTIP | Market-Based Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 0.00% | |
2015 - 2017 LTIP | Market-Based Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 100.00% | |
Tranche One | 2015 - 2017 LTIP | Performance-Based and Market-Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 50.00% | |
Tranche One | 2015 - 2017 LTIP | Performance-Based Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 0.00% | |
Tranche One | 2015 - 2017 LTIP | Performance-Based Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance threshold percentage | 80.00% | |
Tranche One | 2015 - 2017 LTIP | Performance-Based Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance threshold percentage | 80.00% | |
Tranche One | 2015 - 2017 LTIP | Market-Based Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 0.00% | |
Tranche One | 2015 - 2017 LTIP | Market-Based Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance threshold percentage | 35.00% | |
Tranche Two | 2015 - 2017 LTIP | Performance-Based and Market-Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 50.00% | |
Tranche Two | 2015 - 2017 LTIP | Performance-Based Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 0.00% | |
Performance threshold percentage | 80.00% | |
Tranche Two | 2015 - 2017 LTIP | Performance-Based Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 100.00% | |
Performance threshold percentage | 100.00% | |
Tranche Two | 2015 - 2017 LTIP | Market-Based Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting, percentage | 50.00% | |
Performance threshold percentage | 35.00% | |
Tranche Three | 2015 - 2017 LTIP | Market-Based Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance threshold percentage | 55.00% | |
Percentage of award payout | 100.00% | |
Tranche Three | 2015 - 2017 LTIP | Market-Based Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance threshold percentage | 35.00% | |
Percentage of award payout | 50.00% | |
Tranche Three | 2015 - 2017 LTIP | Market-Based Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance threshold percentage | 55.00% | |
Percentage of award payout | 100.00% | |
Common Stock | 2011 DSU Plan | Deferred Stock Unit (DSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued | 4,951 |
Supplemental_Guarantor_Financi2
Supplemental Guarantor Financial Information - Consolidating Balance Sheet (Unaudited) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $8,826 | $9,517 | $18,013 | $25,716 |
Accounts receivable, net | 77,969 | 83,069 | ||
Intercompany receivables | 0 | 0 | ||
Inventories, net | 75,811 | 83,550 | ||
Prepaid expenses | 8,138 | 8,472 | ||
Other current assets | 14,523 | 15,714 | ||
Total current assets | 185,267 | 200,322 | ||
Property and equipment, net | 291,590 | 303,617 | ||
Investments | 0 | 0 | ||
Goodwill | 56,262 | 61,927 | ||
Intangible assets | 10,717 | 11,707 | ||
Non-current deferred tax asset | 8,485 | 10,662 | ||
Other assets | 8,700 | 5,809 | ||
Total assets | 561,021 | 594,044 | ||
Current liabilities: | ||||
Accounts payable | 37,070 | 41,827 | ||
Accrued expenses | 57,763 | 56,109 | ||
Notes payable | 3,267 | 244 | ||
Current maturities of long-term debt | 5,627 | 4,406 | ||
Total current liabilities | 103,727 | 102,586 | ||
Long-term debt, net of current maturities | 460,279 | 460,840 | ||
Liabilities under capital leases | 4,395 | 3,945 | ||
Non-current deferred tax liability | 7,321 | 10,416 | ||
Pension, other post-retirement and post-employment obligations | 75,215 | 80,471 | ||
Other long-term liabilities | 12,991 | 9,896 | ||
Intercompany loans | 0 | 0 | ||
Total stockholders’ (deficit) equity | -102,907 | -74,110 | ||
Total liabilities and stockholders’ deficit | 561,021 | 594,044 | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 735 | 605 | 685 | 4,120 |
Accounts receivable, net | 97 | 50 | ||
Intercompany receivables | -102,773 | -107,064 | ||
Inventories, net | 0 | 0 | ||
Prepaid expenses | 1,875 | 546 | ||
Other current assets | 0 | 0 | ||
Total current assets | -100,066 | -105,863 | ||
Property and equipment, net | 16,701 | 12,365 | ||
Investments | 798,802 | 782,633 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 8,191 | 9,001 | ||
Non-current deferred tax asset | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 723,628 | 698,136 | ||
Current liabilities: | ||||
Accounts payable | 2,842 | 2,679 | ||
Accrued expenses | 14,197 | 8,511 | ||
Notes payable | 0 | 0 | ||
Current maturities of long-term debt | 2,772 | 2,944 | ||
Total current liabilities | 19,811 | 14,134 | ||
Long-term debt, net of current maturities | 460,279 | 460,840 | ||
Liabilities under capital leases | 3,206 | 3,503 | ||
Non-current deferred tax liability | 607 | 97 | ||
Pension, other post-retirement and post-employment obligations | 22,009 | 22,070 | ||
Other long-term liabilities | 200 | 181 | ||
Intercompany loans | 307,868 | 289,896 | ||
Total stockholders’ (deficit) equity | -90,352 | -92,585 | ||
Total liabilities and stockholders’ deficit | 723,628 | 698,136 | ||
Total Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | -15 | -15 | -11 | -10 |
Accounts receivable, net | 22,078 | 22,358 | ||
Intercompany receivables | 111,030 | 107,590 | ||
Inventories, net | 16,263 | 17,310 | ||
Prepaid expenses | 927 | 1,470 | ||
Other current assets | 1,695 | 2,021 | ||
Total current assets | 151,978 | 150,734 | ||
Property and equipment, net | 59,242 | 59,448 | ||
Investments | 183,408 | 229,109 | ||
Goodwill | 17,737 | 17,737 | ||
Intangible assets | 1,595 | 1,664 | ||
Non-current deferred tax asset | 0 | 0 | ||
Other assets | 364 | 364 | ||
Total assets | 414,324 | 459,056 | ||
Current liabilities: | ||||
Accounts payable | 9,216 | 10,212 | ||
Accrued expenses | 8,351 | 8,301 | ||
Notes payable | 0 | 0 | ||
Current maturities of long-term debt | 449 | 0 | ||
Total current liabilities | 18,016 | 18,513 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Liabilities under capital leases | 495 | 440 | ||
Non-current deferred tax liability | 1,035 | 1,035 | ||
Pension, other post-retirement and post-employment obligations | 1,569 | 1,200 | ||
Other long-term liabilities | 0 | 0 | ||
Intercompany loans | -397,350 | -401,482 | ||
Total stockholders’ (deficit) equity | 790,559 | 839,350 | ||
Total liabilities and stockholders’ deficit | 414,324 | 459,056 | ||
Total Non Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 8,106 | 8,927 | 17,339 | 21,606 |
Accounts receivable, net | 55,794 | 60,661 | ||
Intercompany receivables | -8,257 | -526 | ||
Inventories, net | 60,419 | 67,016 | ||
Prepaid expenses | 5,336 | 6,456 | ||
Other current assets | 12,828 | 13,693 | ||
Total current assets | 134,226 | 156,227 | ||
Property and equipment, net | 215,647 | 231,804 | ||
Investments | 0 | 0 | ||
Goodwill | 38,525 | 44,190 | ||
Intangible assets | 931 | 1,042 | ||
Non-current deferred tax asset | 8,485 | 10,662 | ||
Other assets | 8,336 | 5,445 | ||
Total assets | 406,150 | 449,370 | ||
Current liabilities: | ||||
Accounts payable | 25,012 | 28,936 | ||
Accrued expenses | 35,215 | 39,297 | ||
Notes payable | 3,267 | 244 | ||
Current maturities of long-term debt | 2,406 | 1,462 | ||
Total current liabilities | 65,900 | 69,939 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Liabilities under capital leases | 694 | 2 | ||
Non-current deferred tax liability | 5,679 | 9,284 | ||
Pension, other post-retirement and post-employment obligations | 51,637 | 57,201 | ||
Other long-term liabilities | 12,791 | 9,715 | ||
Intercompany loans | 89,482 | 111,586 | ||
Total stockholders’ (deficit) equity | 179,967 | 191,643 | ||
Total liabilities and stockholders’ deficit | 406,150 | 449,370 | ||
Other Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Inventories, net | -871 | -776 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | -871 | -776 | ||
Property and equipment, net | 0 | 0 | ||
Investments | -982,210 | -1,011,742 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Non-current deferred tax asset | 0 | |||
Other assets | 0 | 0 | ||
Total assets | -983,081 | -1,012,518 | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Notes payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Liabilities under capital leases | 0 | 0 | ||
Non-current deferred tax liability | 0 | 0 | ||
Pension, other post-retirement and post-employment obligations | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Intercompany loans | 0 | 0 | ||
Total stockholders’ (deficit) equity | -983,081 | -1,012,518 | ||
Total liabilities and stockholders’ deficit | ($983,081) | ($1,012,518) |
Supplemental_Guarantor_Financi3
Supplemental Guarantor Financial Information - Consolidating Statement of Operations and Comprehensive (Loss) Income (Unaudited) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Income Statements, Captions [Line Items] | ||
Net Sales | $121,029 | $133,384 |
Costs and expenses: | ||
Cost of products sold | 72,476 | 81,218 |
Selling | 16,326 | 18,178 |
General and administrative | 13,846 | 14,797 |
Research and development | 1,962 | 1,946 |
Restructuring and impairment | 2,224 | 4,651 |
Costs and expenses | 106,834 | 120,790 |
Income from operations | 14,195 | 12,594 |
Interest (expense) income, net | -9,664 | -8,657 |
Foreign exchange gain (loss) | 977 | -877 |
Equity in subsidiaries income | 0 | 0 |
Dividend income | 0 | |
Income before provision for income taxes | 5,508 | 3,060 |
Provision for income taxes | -3,775 | -1,893 |
Net income | 1,733 | 1,167 |
Comprehensive loss | -29,398 | -758 |
Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Net Sales | 0 | 0 |
Costs and expenses: | ||
Cost of products sold | -348 | -419 |
Selling | 268 | 113 |
General and administrative | 2,828 | 1,884 |
Research and development | 232 | 276 |
Restructuring and impairment | 7,952 | -18 |
Costs and expenses | 10,932 | 1,836 |
Income from operations | -10,932 | -1,836 |
Interest (expense) income, net | -9,399 | -8,242 |
Foreign exchange gain (loss) | 213 | -12 |
Equity in subsidiaries income | 21,669 | 11,731 |
Dividend income | 700 | |
Income before provision for income taxes | 2,251 | 1,641 |
Provision for income taxes | -518 | -474 |
Net income | 1,733 | 1,167 |
Comprehensive loss | 1,631 | 1,578 |
Total Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Net Sales | 42,850 | 43,156 |
Costs and expenses: | ||
Cost of products sold | 29,378 | 29,999 |
Selling | 4,801 | 5,068 |
General and administrative | 1,411 | 2,520 |
Research and development | 1,196 | 1,118 |
Restructuring and impairment | 175 | 237 |
Costs and expenses | 36,961 | 38,942 |
Income from operations | 5,889 | 4,214 |
Interest (expense) income, net | 1,160 | 1,395 |
Foreign exchange gain (loss) | -141 | -81 |
Equity in subsidiaries income | 5,223 | 5,892 |
Dividend income | 700 | |
Income before provision for income taxes | 12,831 | 11,420 |
Provision for income taxes | -29 | -34 |
Net income | 12,802 | 11,386 |
Comprehensive loss | 13,443 | 11,116 |
Total Non Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Net Sales | 81,688 | 99,265 |
Costs and expenses: | ||
Cost of products sold | 46,860 | 60,731 |
Selling | 11,257 | 12,997 |
General and administrative | 9,607 | 10,393 |
Research and development | 534 | 552 |
Restructuring and impairment | -5,903 | 4,432 |
Costs and expenses | 62,355 | 89,105 |
Income from operations | 19,333 | 10,160 |
Interest (expense) income, net | -1,425 | -1,810 |
Foreign exchange gain (loss) | 905 | -784 |
Equity in subsidiaries income | 0 | 0 |
Dividend income | -1,400 | |
Income before provision for income taxes | 17,413 | 7,566 |
Provision for income taxes | -3,228 | -1,385 |
Net income | 14,185 | 6,181 |
Comprehensive loss | -17,485 | 4,115 |
Other Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Net Sales | -3,509 | -9,037 |
Costs and expenses: | ||
Cost of products sold | -3,414 | -9,093 |
Selling | 0 | 0 |
General and administrative | 0 | 0 |
Research and development | 0 | 0 |
Restructuring and impairment | 0 | 0 |
Costs and expenses | -3,414 | -9,093 |
Income from operations | -95 | 56 |
Interest (expense) income, net | 0 | 0 |
Foreign exchange gain (loss) | 0 | 0 |
Equity in subsidiaries income | -26,892 | -17,623 |
Dividend income | 0 | |
Income before provision for income taxes | -26,987 | -17,567 |
Provision for income taxes | 0 | 0 |
Net income | -26,987 | -17,567 |
Comprehensive loss | ($26,987) | ($17,567) |
Supplemental_Guarantor_Financi4
Supplemental Guarantor Financial Information - Consolidating Statement of Cash Flows (Unaudited) (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities | ||
Net income | $1,733,000 | $1,167,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 822,000 | 509,000 |
Depreciation | 7,163,000 | 8,233,000 |
Amortization of intangibles | 79,000 | 416,000 |
Deferred financing cost amortization | 875,000 | 716,000 |
Foreign exchange gain on revaluation of debt | -1,973,000 | -1,103,000 |
Deferred taxes | 979,000 | -808,000 |
Loss on disposition of property and equipment | 14,000 | 27,000 |
Provision for doubtful accounts | 472,000 | 245,000 |
Undistributed equity in earnings of subsidiaries | 0 | 0 |
Change in assets and liabilities which provided (used) cash: | ||
Accounts receivable | -592,000 | -7,052,000 |
Inventories | 1,436,000 | -4,048,000 |
Prepaid expenses | 25,000 | 1,600,000 |
Other current assets | -1,679,000 | 819,000 |
Accounts payable and accrued expenses | 2,218,000 | 4,202,000 |
Deferred and other long-term liabilities | -3,571,000 | -2,160,000 |
Intercompany loans | 0 | 0 |
Net cash provided by operating activities | 8,001,000 | 2,763,000 |
Investing activities | ||
Capital expenditures | -12,155,000 | -10,494,000 |
Intercompany property and equipment transfers, net | 0 | 0 |
Proceeds from disposals of property and equipment | 32,000 | 43,000 |
Net cash used in investing activities | -12,123,000 | -10,451,000 |
Financing activities | ||
Proceeds from borrowings | 22,568,000 | 7,580,000 |
Principal payments on debt | -18,331,000 | -6,600,000 |
Dividends paid | 0 | |
Payment of obligations under capital leases | -265,000 | -190,000 |
Payment of financing fees | -25,000 | -710,000 |
Intercompany loans | 0 | 0 |
Other financing activities | 0 | |
Net cash provided by financing activities | 3,947,000 | 80,000 |
Effect of exchange rate changes on cash flows | -516,000 | -95,000 |
Net decrease in cash | -691,000 | -7,703,000 |
Cash and cash equivalents at beginning of period | 9,517,000 | 25,716,000 |
Cash and cash equivalents at end of period | 8,826,000 | 18,013,000 |
Parent | ||
Operating activities | ||
Net income | 1,733,000 | 1,167,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 752,000 | 456,000 |
Depreciation | 361,000 | 108,000 |
Amortization of intangibles | 0 | 0 |
Deferred financing cost amortization | 852,000 | 716,000 |
Foreign exchange gain on revaluation of debt | -1,973,000 | -1,103,000 |
Deferred taxes | 511,000 | 282,000 |
Loss on disposition of property and equipment | 0 | 0 |
Provision for doubtful accounts | 0 | 0 |
Undistributed equity in earnings of subsidiaries | -21,669,000 | -11,731,000 |
Change in assets and liabilities which provided (used) cash: | ||
Accounts receivable | -47,000 | -61,000 |
Inventories | 0 | 0 |
Prepaid expenses | -1,328,000 | 201,000 |
Other current assets | 0 | 515,000 |
Accounts payable and accrued expenses | 5,618,000 | 2,767,000 |
Deferred and other long-term liabilities | -42,000 | -182,000 |
Intercompany loans | -4,290,000 | -1,171,000 |
Net cash provided by operating activities | -19,522,000 | -8,036,000 |
Investing activities | ||
Capital expenditures | -4,697,000 | -5,537,000 |
Intercompany property and equipment transfers, net | 0 | 0 |
Proceeds from disposals of property and equipment | 0 | 0 |
Net cash used in investing activities | -4,697,000 | -5,537,000 |
Financing activities | ||
Proceeds from borrowings | 13,516,000 | 7,580,000 |
Principal payments on debt | -14,059,000 | -6,600,000 |
Dividends paid | 0 | |
Payment of obligations under capital leases | -161,000 | -126,000 |
Payment of financing fees | -34,000 | -710,000 |
Intercompany loans | 19,587,000 | 9,994,000 |
Other financing activities | 5,500,000 | |
Net cash provided by financing activities | 24,349,000 | 10,138,000 |
Effect of exchange rate changes on cash flows | 0 | 0 |
Net decrease in cash | 130,000 | -3,435,000 |
Cash and cash equivalents at beginning of period | 605,000 | 4,120,000 |
Cash and cash equivalents at end of period | 735,000 | 685,000 |
Total Guarantors | ||
Operating activities | ||
Net income | 12,802,000 | 11,386,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 0 | 0 |
Depreciation | 1,719,000 | 1,850,000 |
Amortization of intangibles | 69,000 | 384,000 |
Deferred financing cost amortization | 0 | 0 |
Foreign exchange gain on revaluation of debt | 0 | 0 |
Deferred taxes | 0 | 0 |
Loss on disposition of property and equipment | 25,000 | 22,000 |
Provision for doubtful accounts | 49,000 | 165,000 |
Undistributed equity in earnings of subsidiaries | -5,223,000 | -5,892,000 |
Change in assets and liabilities which provided (used) cash: | ||
Accounts receivable | 231,000 | -1,762,000 |
Inventories | 1,047,000 | -387,000 |
Prepaid expenses | 543,000 | -351,000 |
Other current assets | 326,000 | -623,000 |
Accounts payable and accrued expenses | -947,000 | -11,000 |
Deferred and other long-term liabilities | 347,000 | -828,000 |
Intercompany loans | -3,343,000 | 1,401,000 |
Net cash provided by operating activities | 7,645,000 | 5,354,000 |
Investing activities | ||
Capital expenditures | -1,103,000 | -922,000 |
Intercompany property and equipment transfers, net | 191,000 | 0 |
Proceeds from disposals of property and equipment | 26,000 | 35,000 |
Net cash used in investing activities | -886,000 | -887,000 |
Financing activities | ||
Proceeds from borrowings | 0 | 0 |
Principal payments on debt | 0 | 0 |
Dividends paid | -1,400,000 | |
Payment of obligations under capital leases | -101,000 | -64,000 |
Payment of financing fees | 0 | 0 |
Intercompany loans | -5,258,000 | -4,404,000 |
Net cash provided by financing activities | -6,759,000 | -4,468,000 |
Effect of exchange rate changes on cash flows | 0 | 0 |
Net decrease in cash | 0 | -1,000 |
Cash and cash equivalents at beginning of period | -15,000 | -10,000 |
Cash and cash equivalents at end of period | -15,000 | -11,000 |
Total Non Guarantors | ||
Operating activities | ||
Net income | 14,185,000 | 6,181,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 70,000 | 53,000 |
Depreciation | 5,083,000 | 6,275,000 |
Amortization of intangibles | 10,000 | 32,000 |
Deferred financing cost amortization | 23,000 | 0 |
Foreign exchange gain on revaluation of debt | 0 | 0 |
Deferred taxes | 468,000 | -1,090,000 |
Loss on disposition of property and equipment | -11,000 | 5,000 |
Provision for doubtful accounts | 423,000 | 80,000 |
Undistributed equity in earnings of subsidiaries | 0 | 0 |
Change in assets and liabilities which provided (used) cash: | ||
Accounts receivable | -776,000 | -5,229,000 |
Inventories | 294,000 | -3,605,000 |
Prepaid expenses | 810,000 | 1,750,000 |
Other current assets | -2,005,000 | 927,000 |
Accounts payable and accrued expenses | -2,453,000 | 1,446,000 |
Deferred and other long-term liabilities | -3,876,000 | -1,150,000 |
Intercompany loans | 7,633,000 | -230,000 |
Net cash provided by operating activities | 19,878,000 | 5,445,000 |
Investing activities | ||
Capital expenditures | -6,355,000 | -4,035,000 |
Intercompany property and equipment transfers, net | -191,000 | 0 |
Proceeds from disposals of property and equipment | 6,000 | 8,000 |
Net cash used in investing activities | -6,540,000 | -4,027,000 |
Financing activities | ||
Proceeds from borrowings | 9,052,000 | 0 |
Principal payments on debt | -4,272,000 | 0 |
Dividends paid | 1,400,000 | |
Payment of obligations under capital leases | -3,000 | 0 |
Payment of financing fees | 9,000 | 0 |
Intercompany loans | -14,329,000 | -5,590,000 |
Other financing activities | -5,500,000 | |
Net cash provided by financing activities | -13,643,000 | -5,590,000 |
Effect of exchange rate changes on cash flows | -516,000 | -95,000 |
Net decrease in cash | -821,000 | -4,267,000 |
Cash and cash equivalents at beginning of period | 8,927,000 | 21,606,000 |
Cash and cash equivalents at end of period | 8,106,000 | 17,339,000 |
Other Eliminations | ||
Operating activities | ||
Net income | -26,987,000 | -17,567,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 0 | 0 |
Depreciation | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Deferred financing cost amortization | 0 | 0 |
Foreign exchange gain on revaluation of debt | 0 | 0 |
Deferred taxes | 0 | 0 |
Loss on disposition of property and equipment | 0 | 0 |
Provision for doubtful accounts | 0 | 0 |
Undistributed equity in earnings of subsidiaries | 26,892,000 | 17,623,000 |
Change in assets and liabilities which provided (used) cash: | ||
Accounts receivable | 0 | 0 |
Inventories | 95,000 | -56,000 |
Prepaid expenses | 0 | 0 |
Other current assets | 0 | 0 |
Accounts payable and accrued expenses | 0 | 0 |
Deferred and other long-term liabilities | 0 | 0 |
Intercompany loans | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Investing activities | ||
Capital expenditures | 0 | 0 |
Intercompany property and equipment transfers, net | 0 | 0 |
Proceeds from disposals of property and equipment | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing activities | ||
Proceeds from borrowings | 0 | 0 |
Principal payments on debt | 0 | 0 |
Dividends paid | 0 | |
Payment of obligations under capital leases | 0 | 0 |
Payment of financing fees | 0 | 0 |
Intercompany loans | 0 | 0 |
Net cash provided by financing activities | 0 | 0 |
Effect of exchange rate changes on cash flows | 0 | 0 |
Net decrease in cash | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 |