Xerium Technologies Listing Compliance Plan Accepted by NYSE
Date : 03/30/2009 @ 4:05PM
Source : Business Wire
Stock : Xerium Technologies, Inc. (XRM)
Quote : 0.6 -0.01 (-1.64%) @ 8:00PM
Xerium Technologies Listing Compliance Plan Accepted by NYSE
Xerium Technologies, Inc. (NYSE: XRM), a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, today announced that the New York Stock Exchange (NYSE) has accepted the Company’s plan for continued listing on the NYSE. As a result, Xerium’s common stock will continue to be listed on the NYSE during the compliance period, subject to quarterly reviews by the NYSE to monitor the Company’s progress against the plan.
Xerium previously announced that on December 29, 2008, it was notified by the NYSE that it was not in compliance with two NYSE standards for continued listing of the Company’s common stock on the exchange because the average closing price of the Company’s common stock was less than $1.00 per share over a consecutive 30 trading day period, and the Company’s average total market capitalization was less than $75 million over the same period and its most recently reported stockholders’ equity was less than $75 million.
As a result of the NYSE’s acceptance of the plan, Xerium has 18 months from the original notification date in which to regain compliance with the average market capitalization standard, subject to its compliance with the NYSE’s other continued listing requirements. With respect to the $1.00 minimum price standard, the Company initially had six months from the date of receipt of the notification from the NYSE to bring its share price and average share price over $1.00. However, the NYSE has suspended the $1.00 minimum price requirement through June 30, 2009. Once the NYSE reinstitutes the average share price standard, Xerium’s six-month compliance period will recommence, and the company will have the remainder of the period in which to regain compliance with the standard. Failure to make progress consistent with the plan or to regain compliance with the continued listing standards could result in the Company’s common stock being delisted from the NYSE.
About Xerium Technologies
Xerium Technologies, Inc. (NYSE: XRM) is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 33 manufacturing facilities in 14 countries around the world, Xerium has approximately 3,500 employees.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. These statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. Undue reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements. Factors that could materially affect our actual results, levels of activity, performance or achievements include the following items: (i) we may not meet the goals set forth in our plan to achieve NYSE compliance; (ii) even if we meet the goals set forth in the plan, we may not be able to achieve compliance with NYSE continued listing standards; (iii) our revenues and profitability could be adversely affected by fluctuations in currency exchange rates; (iv) our profitability would be reduced by a decline in the prices of our products; (v) our profitability could be adversely affected by fluctuations in interest rates; (vi) we may not be able to develop and market new products successfully or we may not be successful in competing against new technologies developed by competitors; (vii) our credit facility contains restrictive covenants, including covenants requiring compliance with minimum interest coverage and fixed charge coverage ratios and maximum leverage ratios, that will require us to improve our performance over time in order to comply therewith; (viii) we may have insufficient cash to fund growth and unexpected cash needs after satisfying our debt service obligations due to our high degree of leverage and significant debt service obligations; (ix) we are subject to the risk of weaker economic conditions in the locations around the world where we conduct business, including without limitation the current turmoil in the credit markets and the impact of the current global economic crisis on the paper industry; (x) we may be required to incur significant costs to reorganize our operations in response to market changes in the paper industry; (xi) we are subject to the risk of terrorist attacks or an outbreak or escalation of any insurrection or armed conflict involving the United States or any other country in which we conduct business, or any other national or international calamity; (xii) we are subject to any future changes in government regulation; (xiii) we are subject to any changes in U.S. or foreign government policies, laws and practices regarding the repatriation of funds or taxes and (xiv) those other risks described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the period ended December 31, 2008 filed with the Securities and Exchange Commission and subsequent SEC filings. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this press release reflects our current views with respect to future events. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.
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