Xerium Technologies (XRM) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $13.34 million, or $ 0.83 a share in the quarter, against a net profit of $0.92 million, or $0.06 a share in the last year period.
Revenue during the quarter went up marginally by 1.23 percent to $119.19 million from $117.74 million in the previous year period. Gross margin for the quarter contracted 273 basis points over the previous year period to 36.75 percent. Total expenses were 90.71 percent of quarterly revenues, down from 92.03 percent for the same period last year. This has led to an improvement of 131 basis points in operating margin to 9.29 percent.
Operating income for the quarter was $11.07 million, compared with $9.39 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $22.88 million compared with $28.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 481 basis points in the quarter to 19.20 percent from 24 percent in the last year period.
Harold Bevis, president and chief executive officer commented, "Our strategic initiatives to reposition Xerium into better performing end-market segments continue to gain momentum and are evidenced by improving order patterns and an increase in backlog compared to the prior-year. Looking forward, we expect this pattern to continue as we gain market penetration with 49 new product introductions."
Operating cash flow declinesXerium Technologies has generated cash of $21.97 million from operating activities during the nine month period, down 18.58 percent or $5.01 million, when compared with the last year period. The company has spent $25.74 million cash to meet investing activities during the nine month period as against cash outgo of $40.27 million in the last year period.
Cash flow from financing activities was $4.19 million for the nine month period, down 73.10 percent or $11.39 million, when compared with the last year period.
Cash and cash equivalents stood at $8.38 million as on Sep. 30, 2016, down 21.71 percent or $2.32 million from $10.70 million on Sep. 30, 2015
Debt moves upXerium Technologies has witnessed an increase in total debt over the last one year. It stood at $514.56 million as on Sep. 30, 2016, up 5.14 percent or $25.17 million from $489.38 million on Sep. 30, 2015. Total debt was 89.87 percent of total assets as on Sep. 30, 2016, compared with 85.82 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.91 for the quarter from 0.96 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: editor@irisindia.net
