XERIUM ANNOUNCES PRELIMINARY SECOND QUARTER 2016 RESULTS AND CONFIRMS GUIDANCE FOR 2016
YOUNGSVILLE, NC, JULY 18, 2016 (BUSINESS WIRE) -- Xerium Technologies, Inc. (NYSE:XRM) a leading global provider of industrial consumable products and services, today announced selected preliminary financial results for the quarter ended June 30, 2016.
SECOND QUARTER HIGHLIGHTS
- Q2 2016 sales were $124.0 million - an increase year-over-year of $0.5 million (0.4%), and a sequential increase of $7.0 million (6.1%), on a constant currency basis. The Company’s markets are stable and the Company is benefiting from its sales repositioning investments into growth markets and the Q2 acquisition of JJ Plank.
- Q2 2016 Adjusted EBITDA was $27.6 million – a sequential increase of $3.6 million (15%) and year-over-year decrease of $0.4 million (1.4%). Sales volumes have recovered as the company’s repositioning efforts are offsetting graphical market declines. Adjusted EBITDA is on track for full year guidance.
- Q2 2016 free cash flow was $0.6 million – strong operating cash flow was used to pay $10.7 million Q2 bond interest payment and strategic capex. Year-to-date free cash flow is approximately $11 million and on track for full year guidance.
- Q2 acquisition of JJ Plank added capability to rolls business, and is immediately deleveraging on a pro forma basis.
- The Company’s net leverage ratio on a pro forma basis remained steady at 4.7x compared to March 31, 2016.
Harold Bevis, Xerium's President and Chief Executive Officer stated, "We are pleased that our preliminary second quarter results show progress, consistent with the repositioning efforts that we have implemented. Increased sales and wins during the quarter offset the continued decline in the graphical grades market. We are continuing to generate positive free cash flow, utilizing this to pay down debt and make strategic capital investments.”
Click here to read the entire Press Release on the Investor Relations page.