Xerium Technologies Inc. (XRM, Financial) filed Quarterly Report for the period ended 2010-06-30.
Xerium Technologies Inc. has a market cap of $607.2 million; its shares were traded at around $11.91 with and P/S ratio of 1.3. XRM is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Currency fluctuations, as they pertain to the Euro, generally have a greater effect on the level of our net sales than on the level of our income from operations due to the amount of business the Company conducts in Euros. An increase in the U.S. dollar against the Euro generally results in a decrease to net sales and net income. Increases in the U.S. dollar against other currencies, such as the Brazilian Real and the Canadian Dollar, would not impact consolidated net sales as much, as sales in those countries are significantly denominated in or indexed to U.S. dollars, but generally would decrease net income as local currency costs would be translated into more U.S. Dollar expenses for financial reporting purposes. We would expect a similar but opposite effect in a period in which the value of the U.S. Dollar decreases against these currencies. For the three months ended June 30, 2010 as compared with the three months ended June 30, 2009, the change in the value of the U.S. Dollar against the currencies in which we conduct our business resulted in currency translation decreases in net sales and decreases to income from operations of $1.8 million and $1.6 million, respectively.
Commencement Date) in the United States Bankruptcy Court for the District of Delaware (the Bankruptcy Court). On April 1, 2010, following approval by the Bankruptcy Court, we entered into a debtor-in-possession financing facility consisting of a $20 million revolving credit facility and $60 million term loan (the DIP Facility). On May 12, 2010, the Bankruptcy Court held a hearing to consider confirmation of our amended joint prepackaged plan of reorganization (the Plan) and entered an order (the Confirmation Order) confirming the Plan.
Pursuant to the Plan, on the Effective Date, our existing senior credit facility was amended and restated as the Second Amended and Restated Credit and Guaranty Agreement (the Amended and Restated Credit Facility), dated as of May 25, 2010. Also on the Effective Date, the DIP Facility was converted into an exit facility consisting of a $20 million revolving credit facility and a $60 million term loan (collectively, the Exit Facility) that was used to satisfy our obligations under the Plan and for ongoing working capital (including letters of credit) requirements. As of June 30, 2010, costs of approximately $3.6 million related to the Exit Facility have been deferred to be amortized over the life of the facility. See Credit Facilities for further discussion of these credit facilities.
Pursuant to the Plan, on the Effective Date, we issued a dividend of one preferred share purchase right (a Right) for each share of New Common Stock outstanding. Each Right entitles the registered holder to purchase from us one one-thousandth of a share of our Series A Junior Participating Preferred Stock, par value $0.001 per share (the Preferred Shares), at a price of $60.00 per one one-thousandth of a Preferred Share, subject to adjustment.
During the first and second quarters of 2010, we continued our program of streamlining our operating structure and recorded restructuring and impairment expenses of approximately $1.6 million and $2.5 million, respectively, in connection therewith. The amount for the second quarter included approximately $1.8 million of expenses related to our announcement, at the end of the second quarter of 2010, of our plan to cease production at our Stowe Woodward roll covers facility in North Bay, Ontario by August 20, 2010 and consisted of severance costs of $1.1 million and asset impairment charges of $0.7 million. We expect to expense an additional $1.8 million during the second half of 2010 related to this closure.
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Xerium Technologies Inc. has a market cap of $607.2 million; its shares were traded at around $11.91 with and P/S ratio of 1.3. XRM is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
items used in our research and development activities, all research and development is expensed as incurred. Research and development expenses were $3.0 million and $2.7 million for the three months ended June 30, 2010 and 2009, respectively.Currency fluctuations, as they pertain to the Euro, generally have a greater effect on the level of our net sales than on the level of our income from operations due to the amount of business the Company conducts in Euros. An increase in the U.S. dollar against the Euro generally results in a decrease to net sales and net income. Increases in the U.S. dollar against other currencies, such as the Brazilian Real and the Canadian Dollar, would not impact consolidated net sales as much, as sales in those countries are significantly denominated in or indexed to U.S. dollars, but generally would decrease net income as local currency costs would be translated into more U.S. Dollar expenses for financial reporting purposes. We would expect a similar but opposite effect in a period in which the value of the U.S. Dollar decreases against these currencies. For the three months ended June 30, 2010 as compared with the three months ended June 30, 2009, the change in the value of the U.S. Dollar against the currencies in which we conduct our business resulted in currency translation decreases in net sales and decreases to income from operations of $1.8 million and $1.6 million, respectively.
Commencement Date) in the United States Bankruptcy Court for the District of Delaware (the Bankruptcy Court). On April 1, 2010, following approval by the Bankruptcy Court, we entered into a debtor-in-possession financing facility consisting of a $20 million revolving credit facility and $60 million term loan (the DIP Facility). On May 12, 2010, the Bankruptcy Court held a hearing to consider confirmation of our amended joint prepackaged plan of reorganization (the Plan) and entered an order (the Confirmation Order) confirming the Plan.
Pursuant to the Plan, on the Effective Date, our existing senior credit facility was amended and restated as the Second Amended and Restated Credit and Guaranty Agreement (the Amended and Restated Credit Facility), dated as of May 25, 2010. Also on the Effective Date, the DIP Facility was converted into an exit facility consisting of a $20 million revolving credit facility and a $60 million term loan (collectively, the Exit Facility) that was used to satisfy our obligations under the Plan and for ongoing working capital (including letters of credit) requirements. As of June 30, 2010, costs of approximately $3.6 million related to the Exit Facility have been deferred to be amortized over the life of the facility. See Credit Facilities for further discussion of these credit facilities.
Pursuant to the Plan, on the Effective Date, we issued a dividend of one preferred share purchase right (a Right) for each share of New Common Stock outstanding. Each Right entitles the registered holder to purchase from us one one-thousandth of a share of our Series A Junior Participating Preferred Stock, par value $0.001 per share (the Preferred Shares), at a price of $60.00 per one one-thousandth of a Preferred Share, subject to adjustment.
During the first and second quarters of 2010, we continued our program of streamlining our operating structure and recorded restructuring and impairment expenses of approximately $1.6 million and $2.5 million, respectively, in connection therewith. The amount for the second quarter included approximately $1.8 million of expenses related to our announcement, at the end of the second quarter of 2010, of our plan to cease production at our Stowe Woodward roll covers facility in North Bay, Ontario by August 20, 2010 and consisted of severance costs of $1.1 million and asset impairment charges of $0.7 million. We expect to expense an additional $1.8 million during the second half of 2010 related to this closure.
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