Xerium Technologies, Inc (XRM) saw its loss widen to $2.83 million, or $0.18 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.44 million, or $0.09 a share. Revenue during the quarter grew 4.26 percent to $119.87 million from $114.96 million in the previous year period. Gross margin for the quarter expanded 175 basis points over the previous year period to 39.62 percent. Total expenses were 88.10 percent of quarterly revenues, down from 89.96 percent for the same period last year. This has led to an improvement of 186 basis points in operating margin to 11.90 percent.
Operating income for the quarter was $14.26 million, compared with $11.54 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $26.57 million compared with $23.94 million in the prior year period. At the same time, adjusted EBITDA margin improved 135 basis points in the quarter to 22.17 percent from 20.82 percent in the last year period.
Clifford Pietrafitta, Chief Financial Officer said, “We are pleased to see the effects of our repositioning efforts taking hold through improved volume and lower costs. During the first quarter of 2017, sales diversification and momentum from new products led to strong performance with 4.3% growth over the prior year. Higher sales combined with operational excellence program results led to an 11.0% improvement in adjusted EBITDA, while our order patterns remained strong and outpaced sales during the period.”
Operating cash flow turns negative
Xerium Technologies, Inc has spent $7.22 million cash to meet operating activities during the quarter as against cash inflow of $15.10 million in the last year period. The company has spent $5.07 million cash to meet investing activities during the quarter as against cash outgo of $3.53 million in the last year period. It has incurred capital expenditure of $5.07 million on net basis during the quarter, up 43.60 percent or $1.54 million from year ago period.
Cash flow from financing activities was $9.09 million for the quarter as against cash outgo of $4.93 million in the last year period.
Cash and cash equivalents stood at $10.14 million as on Mar. 31, 2017, down 34.38 percent or $5.31 million from $15.45 million on Mar. 31, 2016.
Working capital increases
Xerium Technologies, Inc has recorded an increase in the working capital over the last year. It stood at $70.38 million as at Mar. 31, 2017, up 6.54 percent or $4.32 million from $66.06 million on Mar. 31, 2016. Current ratio was at 1.63 as on Mar. 31, 2017, up from 1.57 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 96 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 46 days for the quarter compared with 91 days for the previous year period. At the same time, days payable outstanding was almost stable at 52 days for the quarter, when compared with the previous year period.
Debt moves up
Xerium Technologies, Inc has witnessed an increase in total debt over the last one year. It stood at $519.20 million as on Mar. 31, 2017, up 5.80 percent or $28.47 million from $490.73 million on Mar. 31, 2016. Total debt was 93.19 percent of total assets as on Mar. 31, 2017, compared with 86.92 percent on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.08 for the quarter from 1.12 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
