Xerium Technologies, Inc. (XRM) saw its loss widen to $8.94 million, or $0.55 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.32 million, or $0.40 a share.
Revenue during the quarter went down marginally by 1.87 percent to $113.19 million from $115.35 million in the previous year period. Gross margin for the quarter contracted 131 basis points over the previous year period to 37.05 percent. Total expenses were 92.20 percent of quarterly revenues, down from 92.31 percent for the same period last year. This has led to an improvement of 11 basis points in operating margin to 7.80 percent.
Operating income for the quarter was $8.83 million, compared with $8.87 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $20.43 million compared with $21.53 million in the prior year period. At the same time, adjusted EBITDA margin contracted 61 basis points in the quarter to 18.05 percent from 18.67 percent in the last year period.
Harold Bevis, president and chief executive officer said, "2016 was a noteworthy year for Xerium as the Company ramped up its first ever machine clothing plant in China, the largest market in the world for its products and services. The China facility was the largest component of our repositioning efforts, and accounted for all of the Company's above-trend capital spending during 2013 to 2016. The Company's successful footprint repositioning has been coupled with the global rollout of 90 new product launches during the same timeframe. The Company has secured $94 million of new business wins (sales into new customer machine positions), including a record $45 million of new business wins in 2016, resulting in a strong pipeline and 5% backlog growth over the prior year end. The rate of machine closures dramatically slowed in 2016, and we believe that balance is forming between old machines being shut down and new machines being started up."
Operating cash flow improves
Xerium Technologies, Inc. has generated cash of $36.51 million from operating activities during the year, up 9.68 percent or $3.22 million, when compared with the last year. The company has spent $29.81 million cash to meet investing activities during the year as against cash outgo of $47.60 million in the last year.
The company has spent $2.33 million cash to carry out financing activities during the year as against cash inflow of $14.45 million in the last year period.
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