Supplemental Guarantor Financial Information (Tables)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidating Balance Sheet

Xerium Technologies, Inc.

Consolidating Balance Sheet

At December 31, 2014

(Dollars in thousands)

	Parent			Total Guarantors			Total Non Guarantors			Other Eliminations			The Company
ASSETS
Current assets:
Cash and cash equivalents	$	605		$	(15	)	$	8,927		$	—		$	9,517
Accounts receivable, net	50			22,358			60,661			—			83,069
Intercompany (payable) receivable	(107,064		)	107,590			(526		)	—			—
Inventories	—			17,310			67,016			(776		)	83,550
Prepaid expenses	546			1,470			6,456			—			8,472
Other current assets	—			2,021			13,693			—			15,714
Total current assets	(105,863		)	150,734			156,227			(776		)	200,322
Property and equipment, net	12,365			59,448			231,804			—			303,617
Investments	782,633			229,109			31,500			(1,043,242		)	—
Goodwill	—			17,737			44,190			—			61,927
Intangible assets	9,001			1,664			1,042			—			11,707
Non-current deferred tax asset	—			—			10,662			—			10,662
Other assets	—			364			5,445			—			5,809
Total assets	$	698,136		$	459,056		$	480,870		$	(1,044,018	)	$	594,044
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Notes payable	$	—		$	—		$	244		$	—		$	244
Accounts payable	2,679			10,212			28,936			—			41,827
Accrued expenses	8,511			8,301			39,297			—			56,109
Current maturities of long-term debt	2,944			—			1,462			—			4,406
Total current liabilities	14,134			18,513			69,939			—			102,586
Long-term debt, net of current maturities	460,840			—			—			—			460,840
Liabilities under capital lease	3,503			440			2			—			3,945
Non-current deferred tax liability	97			1,035			9,284			—			10,416
Pension, other post-retirement and post-employment obligations	22,070			1,200			57,201			—			80,471
Other long-term liabilities	181			—			9,715			—			9,896
Intercompany loans	289,896			(401,482		)	111,586			—			—
Total stockholders’ (deficit) equity	(92,585		)	839,350			223,143			(1,044,018		)	(74,110		)
Total liabilities and stockholders’ equity (deficit)	$	698,136		$	459,056		$	480,870		$	(1,044,018	)	$	594,044

Xerium Technologies, Inc.

Consolidating Balance Sheet

At December 31, 2013

(Dollars in thousands)

	Parent			Total Guarantors			Total Non Guarantors		Other Eliminations			The Company
ASSETS
Current assets:
Cash and cash equivalents	$	4,120		$	(10	)	$	21,606	$	—		$	25,716
Accounts receivable, net	—			22,188			65,764		—			87,952
Intercompany (payable) receivable	(112,848		)	110,434			2,414		—			—
Inventories	—			18,077			66,632		(779		)	83,930
Prepaid expenses	398			936			6,845		—			8,179
Other current assets	514			3,729			11,452		—			15,695
Total current assets	(107,816		)	155,354			174,713		(779		)	221,472
Property and equipment, net	15,794			59,250			234,620		—			309,664
Investments	700,697			284,444			—		(985,141		)	—
Goodwill	—			17,737			51,238		—			68,975
Intangible assets	10,964			3,094			412		—			14,470
Non-current deferred tax asset	—			—			5,045		—			5,045
Other assets	4			—			4,434		—			4,438
Total assets	$	619,643		$	519,879		$	470,462	$	(985,920	)	$	624,064
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Notes payable	$	—		$	—		$	8,267	$	—		$	8,267
Accounts payable	2,109			10,380			29,731		—			42,220
Accrued expenses	9,794			8,172			43,402		—			61,368
Current maturities of long-term debt	2,024			—			142		—			2,166
Total current liabilities	13,927			18,552			81,542		—			114,021
Long-term debt, net of current maturities	432,706			—			—		—			432,706
Non-current deferred tax liability	327			3,040			12,983		—			16,350
Pension, other post-retirement and post-employment obligations	11,212			1,182			54,472		—			66,866
Other long-term liabilities	106			5			5,459		—			5,570
Intercompany loans	233,755			(355,003		)	121,248		—			—
Total stockholders’ (deficit) equity	(72,390		)	852,103			194,758		(985,920		)	(11,449		)
Total liabilities and stockholders’ equity (deficit)	$	619,643		$	519,879		$	470,462	$	(985,920	)	$	624,064

Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income

Xerium Technologies, Inc.

Consolidating Statement of Operations and Comprehensive (Loss) Income

For the year ended December 31, 2014

(Dollars in thousands)

	Parent			Total Guarantors			Total  Non Guarantors			Other Eliminations			The Company
Net sales	$	—		$	184,053		$	395,751		$	(36,872	)	$	542,932
Costs and expenses:
Cost of products sold	(1,372		)	126,004			239,576			(37,047		)	327,161
Selling	945			20,628			51,429			—			73,002
General and administrative	8,718			8,448			39,373			—			56,539
Research and development	1,007			4,676			2,220			—			7,903
Restructuring	576			936			16,630			—			18,142
	9,874			160,692			349,228			(37,047		)	482,747
(Loss) income from operations	(9,874		)	23,361			46,523			175			60,185
Interest (expense) income, net	(35,016		)	5,469			(7,221		)	—			(36,768		)
Foreign exchange (loss) gain	(827		)	(215		)	323			—			(719		)
Equity in subsidiaries income	38,777			8,014			—			(46,791		)	—
(Loss) income before provision for income taxes	(6,940		)	36,629			39,625			(46,616		)	22,698
Provision for income taxes	(442		)	(135		)	(29,503		)	—			(30,080		)
Net (loss) income	$	(7,382	)	$	36,494		$	10,122		$	(46,616	)	$	(7,382	)
Comprehensive (loss) income	$	(20,810	)	$	36,072		$	(31,914	)	$	(46,616	)	$	(63,268	)

Xerium Technologies, Inc.

Consolidating Statement of Operations and Comprehensive (Loss) Income

For the year ended December 31, 2013

(Dollars in thousands)

	Parent			Total Guarantors			Total  Non Guarantors			Other Eliminations			The Company
Net sales	$	—		$	182,935		$	411,931		$	(47,974	)	$	546,892
Costs and expenses:
Cost of products sold	(1,690		)	125,834			261,157			(48,046		)	337,255
Selling	—			22,672			50,676			—			73,348
General and administrative	8,114			4,958			47,143			—			60,215
Research and development	—			5,489			2,369			—			7,858
Restructuring	1,016			847			12,981			—			14,844
	7,440			159,800			374,326			(48,046		)	493,520
(Loss) income from operations	(7,440		)	23,135			37,605			72			53,372
Interest (expense) income, net	(32,279		)	5,665			(14,067		)	—			(40,681		)
Foreign exchange (loss) gain	(585		)	(171		)	(295		)	—			(1,051		)
Equity in subsidiaries income	47,997			15,562			—			(63,560		)	(1		)
Loss on extinguishment of debt	(3,123		)	—			—			—			(3,123		)
Dividend income	—			1,555			—			(1,555		)	—
(Loss) income before provision for income taxes	4,570			45,746			23,243			(65,043		)	8,516
Provision for income taxes	(417		)	9			(3,955		)	—			(4,363		)
Net (loss) income	$	4,153		$	45,755		$	19,288		$	(65,043	)	$	4,153
Comprehensive (loss) income	$	12,495		$	46,059		$	22,483		$	(65,043	)	$	15,994

Xerium Technologies, Inc.

Consolidating Statement of Operations and Comprehensive (Loss) Income

For the year ended December 31, 2012

(Dollars in thousands)

	Parent			Total Guarantors			Total  Non Guarantors			Other Eliminations			The Company
Net sales	$	—		$	178,613		$	407,647		$	(47,520	)	$	538,740
Costs and expenses:
Cost of products sold	(1,451		)	129,127			265,513			(48,018		)	345,171
Selling	—			24,319			53,878			—			78,197
General and administrative	10,241			6,525			46,935			—			63,701
Research and development	—			6,371			3,196			—			9,567
Restructuring	163			510			25,035			—			25,708
	8,953			166,852			394,557			(48,018		)	522,344
(Loss) income from operations	(8,953		)	11,761			13,090			498			16,396
Interest (expense) income, net	(28,115		)	6,503			(16,266		)	—			(37,878		)
Foreign exchange (loss) gain	(612		)	(46		)	300			—			(358		)
Equity in subsidiaries income	17,875			(20,177		)	—			2,302			—
Gain on extinguishment of debt	243			—			—			—			243
Dividend income	1,657			22,928			—			(24,585		)	—
(Loss) income before provision for income taxes	(17,905		)	20,969			(2,876		)	(21,785		)	(21,597		)
(Provision) benefit for income taxes	(130		)	(131		)	3,823			—			3,562
Net (loss) income	$	(18,035	)	$	20,838		$	947		$	(21,785	)	$	(18,035	)
Comprehensive (loss) income	$	(18,488	)	$	21,644		$	(9,753	)	$	(21,785	)	$	(28,382	)

Consolidating Statement of Cash Flows

Xerium Technologies, Inc.

Consolidating Statement of Cash Flows

For the year ended December 31, 2014

(Dollars in thousands)

	Parent			Total Guarantors			Total Non Guarantors			Other Eliminations			The  Company
Operating activities
Net (loss) income	$	(7,382	)	$	36,494		$	10,122		$	(46,616	)	$	(7,382	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Stock-based compensation	2,295			—			253			—			2,548
Depreciation	1,168			7,102			24,482			—			32,752
Amortization of other intangibles	—			1,430			110			—			1,540
Deferred financing cost amortization	3,227			—			76			—			3,303
Unrealized foreign exchange loss on revaluation of debt	(259		)	—			—			—			(259		)
Deferred taxes	330			—			(5,187		)	—			(4,857		)
Asset impairment	—			—			136						136
Gain on disposition of property and equipment	—			100			(1,136		)	—			(1,036		)
Provision for doubtful accounts	—			67			207			—			274
Undistributed equity in (earnings) loss of subsidiaries	(38,777		)	(8,014		)	—			46,791			—
Change in assets and liabilities which provided (used) cash:
Accounts receivable	(50		)	(237		)	(3,174		)	—			(3,461		)
Inventories	—			14			(8,848		)	(175		)	(9,009		)
Prepaid expenses	(148		)	(534		)	(155		)	—			(837		)
Other current assets	514			(297		)	(3,495		)	—			(3,278		)
Accounts payable and accrued expenses	(2,689		)	(27		)	3,313			—			597
Deferred and other long-term liabilities	(666		)	28			(3,501		)	—			(4,139		)
Intercompany loans	(5,785		)	2,928			2,857			—			—
Net cash (used in) provided by operating activities	(48,222		)	39,054			16,060			—			6,892
Investing activities
Capital expenditures	(11,336		)	(6,259		)	(27,623		)	—			(45,218		)
Intercompany property and equipment transfers, net	17,290			(101		)	(17,189		)	—			—
Proceeds from disposals of property and equipment	—			79			3,351			—			3,430
Other investing activities	(26,100		)	25,600			500						—
Net cash used in investing activities	(20,146		)	19,319			(40,961		)	—			(41,788		)
Financing activities
Increase in notes payable	—			—			(7,168		)				(7,168		)
Proceeds from borrowings	85,463			—			16,696			—			102,159
Principal payments on debt	(56,743		)	(12		)	(15,198		)	—			(71,953		)
Payment of deferred financing fees	(729		)	—			(795		)	—			(1,524		)
Payment of obligations under capital leases	(511		)	(310		)	—						(821		)
Intercompany loans	54,423			(58,056		)	3,633			—			—
Other financing activities	(17,050		)				17,050						—
Net cash provided by (used in) financing activities	64,853			(58,378		)	14,218			—			20,693
Effect of exchange rate changes on cash flows	—			—			(1,996		)	—			(1,996		)
Net decrease in cash	(3,515		)	(5		)	(12,679		)	—			(16,199		)
Cash and cash equivalents at beginning of period	4,120			(10		)	21,606			—			25,716
Cash and cash equivalents at end of period	$	605		$	(15	)	$	8,927		$	—		$	9,517

Xerium Technologies, Inc.

Consolidating Statement of Cash Flows

For the year ended December 31, 2013

(Dollars in thousands)

	Parent			Total Guarantors			Total Non Guarantors			Other Eliminations			The  Company
Operating activities
Net income	$	4,153		$	45,755		$	19,288		$	(65,043	)	$	4,153
Adjustments to reconcile net income to net cash 9used in) provided by operating activities:
Stock-based compensation	1,736			—			—			—			1,736
Depreciation	122			7,413			27,096			—			34,631
Amortization of other intangibles	—			1,682			90			—			1,772
Deferred financing cost amortization	(808		)	—			3,771			—			2,963
Unrealized foreign exchange (gain) loss on revaluation of debt	(30		)	(45		)	1,781			—			1,706
Deferred taxes	327			—			(6,013		)	—			(5,686		)
Asset impairment	17			351			986						1,354
Gain on disposition of property and equipment	132			52			18			—			202
Loss on extinguishment of debt	3,123			—			—						3,123
(Credit) provision for doubtful accounts	—			(27		)	452			—			425
Undistributed equity in earnings of subsidiaries	(47,998		)	(15,562		)	—			63,560			—
Change in assets and liabilities which provided (used) cash:
Accounts receivable	—			(1,189		)	(5,094		)	—			(6,283		)
Inventories	—			(2,405		)	(6,300		)	(72		)	(8,777		)
Prepaid expenses	(239		)	757			461			—			979
Other current assets	(530		)	426			(1,340		)	—			(1,444		)
Accounts payable and accrued expenses	5,278			2,529			(2,563		)	1,555			6,799
Deferred and other long-term liabilities	92			182			(1,813		)	—			(1,539		)
Intercompany loans	10,442			(2,509		)	(7,933		)	—			—
Net cash (used in) provided by operating activities	(24,183		)	37,410			22,887			—			36,114
Investing activities
Capital expenditures	(15,317		)	(5,315		)	(23,513		)	—			(44,145		)
Intercompany property and equipment transfers, net	3			798			(801		)	—			—
Proceeds from disposals of property and equipment	—			5			2,262			—			2,267
Other investing activities	(1,000		)				1,009						9
Net cash used in investing activities	(16,314		)	(4,512		)	(21,043		)	—			(41,869		)
Financing activities
Proceeds from borrowings	199,321			—			—			—			199,321
Principal payments on debt	(105,558		)	—			(93,791		)	—			(199,349		)
Payment of deferred financing fees	(3,246		)	—			—			—			(3,246		)
Dividends paid	—			—			—			—			—
Intercompany loans	(52,371		)	(32,943		)	85,314			—			—
Net cash provided by (used in) financing activities	38,146			(32,943		)	(8,477		)	—			(3,274		)
Effect of exchange rate changes on cash flows	—			(1		)	(31		)	—			(32		)
Net decrease in cash	(2,351		)	(46		)	(6,664		)	—			(9,061		)
Cash and cash equivalents at beginning of period	6,471			36			28,270			—			34,777
Cash and cash equivalents at end of period	$	4,120		$	(10	)	$	21,606		$	—		$	25,716

Xerium Technologies, Inc.

Consolidating Statement of Cash Flows

For the year ended December 31, 2012

(Dollars in thousands)

	Parent			Total Guarantors			Total Non Guarantors			Other Eliminations			The  Company
Operating activities
Net (loss) income	$	(18,035	)	$	20,838		$	947		$	(21,785	)	$	(18,035	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Stock-based compensation	1,949			—			—			—			1,949
Depreciation	168			8,340			30,025			—			38,533
Amortization of other intangibles	—			2,212			93			—			2,305
Deferred financing cost amortization	2,407			—			1,017			—			3,424
Unrealized foreign exchange loss on revaluation of debt	—			—			582			—			582
Deferred taxes	—			—			(8,249		)	—			(8,249		)
Asset impairment	—			—			3,674						3,674
Loss (gain) on disposition of property and equipment	—			128			(704		)	—			(576		)
Gain on extinguishment of debt	(243		)	—			—						(243		)
Intercompany dividend	(1,657		)	(22,928		)	—			24,585			—
Provision (credit) for doubtful accounts	—			(109		)	1,063			—			954
Undistributed equity in (earnings) loss of subsidiaries	(17,875		)	20,177			—			(2,302		)	—
Change in assets and liabilities which provided (used) cash:
Accounts receivable	8			355			5,232			—			5,595
Inventories	—			4,087			1,630			(498		)	5,219
Prepaid expenses	112			(147		)	(3,388		)	—			(3,423		)
Other current assets	—			1,704			(1,120		)	—			584
Accounts payable and accrued expenses	(1,064		)	(769		)	11,169			—			9,336
Deferred and other long-term liabilities	54			(819		)	(1,542		)	—			(2,307		)
Intercompany loans	6,551			(5,298		)	(1,253		)	—			—
Net cash (used in) provided by operating activities	(27,625		)	27,771			39,176			—			39,322
Investing activities
Capital expenditures	(365		)	(2,618		)	(18,722		)	—			(21,705		)
Intercompany property and equipment transfers, net	344			(287		)	(57		)	—			—
Proceeds from disposals of property and equipment	—			19			1,069			—			1,088
Net cash used in investing activities	(21		)	(2,886		)	(17,710		)	—			(20,617		)
Financing activities
Net increase in notes payable	—			—			7,365						7,365
Principal payments on debt	(18,066		)	—			(14,989		)	—			(33,055		)
Payment of deferred financing fees	(1,047		)	—			(735		)	—			(1,782		)
Dividends paid	1,657			4,024			(5,681		)	—			—
Intercompany loans	40,025			(29,156		)	(10,869		)	—			—
Net cash provided by (used in) financing activities	22,569			(25,132		)	(24,909		)	—			(27,472		)
Effect of exchange rate changes on cash flows	—			3			(25		)	—			(22		)
Net decrease in cash	(5,077		)	(244		)	(3,468		)	—			(8,789		)
Cash and cash equivalents at beginning of period	11,548			280			31,738			—			43,566
Cash and cash equivalents at end of period	$	6,471		$	36		$	28,270		$	—		$	34,777