Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA),
a location-agnostic global business process automation (“BPA”)
leader, announced today its financial results for the first quarter
ended March 31, 2021.
“We are pleased with the strong expansion of
both our gross margin and adjusted EBITDA margin in the first
quarter, which reflects our ongoing commitment to focus on our core
businesses and drive continued operational improvement. We are also
impressed with the adoption of the various Digital Assets Group
solutions in the SMB and enterprise markets. Based on our first
quarter results and the momentum we see in the business, we
reiterate our prior 2021 guidance,” said Ronald Cogburn, Chief
Executive Officer of Exela.
First Quarter 2021 Financial
Highlights
- Revenue: Revenue
for Q1 2021 was $300.1 million, a decline of 17.9% compared to
$365.5 million from Q1 2020, primarily due to lower volumes as a
result of COVID-19, pruning of transition revenue(5), and strategic
asset sales. Revenue for the Information and Transaction Processing
Solutions segment was $231.9 million, a decline of 18.4%
year-over-year. Healthcare Solutions revenue was $51.1 million, a
decrease of 20.2% year-over-year. Legal and Loss Prevention
Services revenue was $17.1 million, consistent with the prior year
period.
- Operating income /
(loss): Operating income for Q1 2021 was $4.3 million,
compared with operating loss of $2.2 million in Q1 2020. The
year-over-year improvement in operating income was primarily
attributable to lower SG&A and depreciation and amortization
expenses.
- Net Loss: Net Loss
for Q1 2021 was $39.2 million, compared with a net loss of $12.7
million in Q1 2020, primarily due to a gain of $35.3 million
recognized on the sale of SourceHOV Tax, LLC during Q1 2020. Net
loss excluding the gain on sale of SourceHOV Tax improved by 22.1%
in the quarter compared to the prior year period.
- Adjusted
EBITDA: Adjusted EBITDA for Q1 2021 was $46.5
million, an increase of 4.7% compared to $44.4 million in Q1 2020.
Adjusted EBITDA margin for Q1 2021 was 15.5%, up 334 basis points
from 12.1% in Q1 2020. Adjusted EBITDA margin, based on revenue
excluding pass through revenue(6), was 19.3% in Q1 2021, an
increase of approximately 429 basis points from 15.0% compared to
Q1 2020 and an increase of 501 basis points from 14.3% sequentially
from Q4 2020.
- Common Stock:
After accounting for the 1:3 reverse split, as of March 31, 2021,
there were 59,192,012 total shares of common stock outstanding and
an additional 1,215,924 shares of common stock reserved for
issuance for our outstanding preferred shares on an as-converted
basis.
First Quarter 2021 Business
HighlightsContract and product updates:
- First cloud hosted deployment of Exela’s PCH Global platform
with a major insurer for a $90 million, 10 year licensing
agreement
- Global expansion of the Exchange for Bills and Payments (XBP)
into the Americas, Continental Europe and Asia
- Accelerating demand for WFA and BPM solutions as go to market
expands beyond enterprise customers: Recently launched SMB business
showing robust growth QoQ – DMR customers grew 117% and DrySign
users grew 170% with a strong pipeline of additional
solutions.
Operating leverage improvement continues:
- Real estate: 25% of the announced reduction in facilities
already completed as part of a multi-year plan
- Automation led efficiencies reduced employee count to 18,400 as
of March 31, 2021 from 19,000 as of December 31, 2020
- Exela cloud hosted services expanding with Intelligent Data
Processing (IDP) to additional industries; will further enhance WFA
initiatives and business continuity globally with faster
deployments, greater security and increased autonomy.
Capital Expenditures: Capital
expenditures for the first quarter of 2021 were 0.8% of revenue
compared to 1.3% of revenue in the first quarter of 2020.
Balance Sheet and
Liquidity(7):
On March 31, 2021, Exela’s total liquidity was $62 million.
Additionally, $53 million of committed facility under the existing
Securitization Facility remains undrawn in accordance with its
terms. Exela’s total net debt at March 31, 2021 was $1.48 billion
(as determined in accordance with the Company's credit
agreement).
Expanding financial flexibility: Raised
$26.8 million in gross proceeds via an equity offeringOn
March 18, 2021, Exela completed the sale of 9,731,819 shares of
common stock at a price of $2.75 per share and warrants to purchase
9,731,819 shares of common stock at an exercise price of $4.00 per
share to equity focused investors. The gross proceeds to Exela from
this offering were approximately $26.8 million excluding placement
agent fees and other offering expenses.
Exela plans to continue working on expanding its
financial flexibility with the objective to improve consolidated
cash flows from all activities.
2021 Guidance
- Revenue range $1.25 billion to $1.39 billion
- Gross margin of 23% to 25%
- Adjusted EBITDA margin 16% to 17%
- Capital expenditures in the range of 1% of revenue
Note: Guidance is based on constant-currency.
Below are the notes referenced above:
(1) – Gross Profit is defined as Revenue less
cost of revenue excluding depreciation and amortization.(2) –
EBITDA is a non-GAAP measure. A reconciliation of EBITDA is
attached to this release.(3) – Adjusted EBITDA is a non-GAAP
measure. A reconciliation of Adjusted EBITDA is attached to this
release. A reconciliation of Adjusted EBITDA (2021 Guidance) is not
available on forward-looking basis without unreasonable efforts due
to the impact and timing on future operating results.(4) – Gross
proceeds of $26.8 million from the Equity offering are before any
fees and expenses. Please refer to the equity capital raise related
press release dated March 15,, 2021 and Form 8-K dated March 19,
2021 for more details.(5) – Transition revenue includes the exit of
contracts and statements of work from certain customers that the
Company believes are unpredictable, non-recurring, and were not a
strategic fit to its long-term success or unlikely to achieve
long-term target margins.(6) – Pass through revenue is defined as
postage and postage handling revenue with either zero or nominal
margins. A reconciliation of revenue net of pass through revenue is
attached to this release.(7) – Liquidity is defined per the third
amendment to the Company’s credit agreement effective May 15, 2020.
At March 31, 2021, total cash and cash equivalents was $22 million
(including restricted cash not subject to legal restriction). The
Company had $20 million availability under its global credit
facilities.
Earnings Conference Call and Audio Webcast
Exela will host a conference call to discuss its
first quarter 2021 financial results at 11:00 a.m. ET on May 4,
2021. To access this call, dial 833-255-2831 or +1-412-902-6724
(international). A replay of this conference call will be available
through May 1, 2021 at 877-344-7529 or +1-412-317-0088
(international). The replay passcode is 10155612.
Exela invites all investors to ask questions
that they would like addressed on the conference call. We ask
individual investors to submit questions via email to
IR@exelatech.com.
A live webcast of this conference call will be
available on the “Investors” page of the Company’s website
(www.exelatech.com). A supplemental slide presentation that
accompanies this call and webcast can be found on the investor
relations website (http://investors.exelatech.com/) and will remain
available after the call.
About Exela Exela Technologies
is a business process automation (BPA) leader, leveraging a global
footprint and proprietary technology to provide digital
transformation solutions enhancing quality, productivity, and
end-user experience. With decades of experience operating
mission-critical processes, Exela serves a growing roster of more
than 4,000 customers throughout 50 countries, including over 60% of
the Fortune® 100. With foundational technologies spanning
information management, workflow automation, and integrated
communications, Exela’s software and services include
multi-industry department solution suites addressing finance and
accounting, human capital management, and legal management, as well
as industry-specific solutions for banking, healthcare, insurance,
and public sectors. Through cloud-enabled platforms, built on a
configurable stack of automation modules, and over 18,300 employees
operating in 23 countries, Exela rapidly deploys integrated
technology and operations as an end-to-end digital journey
partner.
Find out more at www.exelatech.com
Follow Exela on
Twitter: https://twitter.com/exelatechFollow
Exela on
LinkedIn: https://www.linkedin.com/company/11174620/
About Non-GAAP Financial
Measures: This press release includes constant currency,
EBITDA and Adjusted EBITDA, each of which is a financial measure
that is not prepared in accordance with U.S. generally accepted
accounting principles (“GAAP”). Exela believes that the
presentation of these non-GAAP financial measures will provide
useful information to investors in assessing our financial
performance, results of operations and liquidity and allows
investors to better understand the trends in our business and to
better understand and compare our results. Exela’s board of
directors and management use constant currency, EBITDA and Adjusted
EBITDA to assess Exela’s financial performance, because it allows
them to compare Exela’s operating performance on a consistent basis
across periods by removing the effects of Exela’s capital structure
(such as varying levels of debt and interest expense, as well as
transaction costs resulting from the combination of Quinpario
Acquisition Corp. 2, SourceHOV Holdings, Inc. and Novitex Holdings,
Inc. on July 12, 2017 (the “Novitex Business Combination”) and
capital markets-based activities). Adjusted EBITDA also seeks to
remove the effects of integration and related costs to
achieve the savings, any expected reduction in operating expenses
due to the Novitex Business Combination, asset base (such as
depreciation and amortization) and other similar non-routine items
outside the control of our management team. Optimization and
restructuring expenses and merger adjustments are primarily related
to the implementation of strategic actions and initiatives related
to the Novitex Business Combination. All of these costs are
variable and dependent upon the nature of the actions being
implemented and can vary significantly driven by business needs.
Accordingly, due to that significant variability, we exclude these
charges since we do not believe they truly reflect our past,
current or future operating performance. The constant currency
presentation excludes the impact of fluctuations in foreign
currency exchange rates. We calculate constant currency revenue and
Adjusted EBITDA on a constant currency basis by converting our
current-period local currency financial results using the exchange
rates from the corresponding prior-period and compare these
adjusted amounts to our corresponding prior period reported
results. Exela does not consider these non-GAAP measures in
isolation or as an alternative to liquidity or financial measures
determined in accordance with GAAP. A limitation of these non-GAAP
financial measures is that they exclude significant expenses and
income that are required by GAAP to be recorded in Exela’s
financial statements. In addition, they are subject to inherent
limitations as they reflect the exercise of judgments by management
about which expenses and income are excluded or included in
determining these non-GAAP financial measures and therefore the
basis of presentation for these measures may not be comparable to
similarly-titled measures used by other companies. These non-GAAP
financial measures are not required to be uniformly applied, are
not audited and should not be considered in isolation or as
substitutes for results prepared in accordance with GAAP. Net loss
is the GAAP measure most directly comparable to the non-GAAP
measures presented here. For reconciliation of the comparable GAAP
measures to these non-GAAP financial measures, see the schedules
attached to this release.
Forward-Looking Statements:
Certain statements included in this press release are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under The Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally are
accompanied by words such as “may”, “should”, “would”, “plan”,
“intend”, “anticipate”, “believe”, “estimate”, “predict”,
“potential”, “seem”, “seek”, “continue”, “future”, “will”,
“expect”, “outlook” or other similar words, phrases or expressions.
These forward-looking statements include statements regarding our
industry, future events, estimated or anticipated future results
and benefits, future opportunities for Exela, and other statements
that are not historical facts. These statements are based on the
current expectations of Exela management and are not predictions of
actual performance. These statements are subject to a number of
risks and uncertainties, including without limitation those
discussed under the heading “Risk Factors” in the Annual Report. In
addition, forward-looking statements provide Exela’s expectations,
plans or forecasts of future events and views as of the date of
this communication. Exela anticipates that subsequent events and
developments will cause Exela’s assessments to change. These
forward-looking statements should not be relied upon as
representing Exela’s assessments as of any date subsequent to the
date of this press release.
Investor and/or Media
Contacts:Vincent KondaveetiE:
vincent.kondaveeti@exelatech.comT: 929-620-1849
Mary Beth BenjaminE: IR@exelatech.comT:
646-277-1216
Source: Exela Technologies, Inc.
Exela Technologies, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets As of March 31, 2021 and December 31,
2020(in thousands of United States dollars except share
and per share amounts)(UNAUDITED)
|
|
March 31, |
|
December 31, |
|
|
2021 |
|
2020 |
|
|
(Unaudited) |
|
(Audited) |
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
22,055 |
|
|
$ |
68,221 |
|
Restricted
cash |
|
|
1,683 |
|
|
|
2,088 |
|
Accounts
receivable, net of allowance for doubtful accounts of $5,634 and
$5,647, respectively |
|
|
216,077 |
|
|
|
206,868 |
|
Related
party receivables and prepaid expenses |
|
|
702 |
|
|
|
711 |
|
Inventories,
net |
|
|
14,845 |
|
|
|
14,314 |
|
Prepaid
expenses and other current assets |
|
|
33,429 |
|
|
|
31,091 |
|
Total current assets |
|
|
288,791 |
|
|
|
323,293 |
|
Property,
plant and equipment, net of accumulated depreciation of $192,177
and $193,760, respectively |
|
|
81,862 |
|
|
|
87,851 |
|
Operating
lease right-of-use assets, net |
|
|
66,743 |
|
|
|
68,861 |
|
Goodwill |
|
|
359,309 |
|
|
|
359,781 |
|
Intangible
assets, net |
|
|
280,891 |
|
|
|
292,664 |
|
Deferred
income tax assets |
|
|
6,370 |
|
|
|
6,606 |
|
Other
noncurrent assets |
|
|
20,756 |
|
|
|
18,723 |
|
Total assets |
|
$ |
1,104,722 |
|
|
$ |
1,157,779 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
(Deficit) |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts
payable |
|
$ |
73,666 |
|
|
$ |
76,027 |
|
Related
party payables |
|
|
124 |
|
|
|
97 |
|
Income tax
payable |
|
|
1,531 |
|
|
|
2,466 |
|
Accrued
liabilities |
|
|
122,080 |
|
|
|
126,399 |
|
Accrued
compensation and benefits |
|
|
62,392 |
|
|
|
63,467 |
|
Accrued
interest |
|
|
24,059 |
|
|
|
48,769 |
|
Customer
deposits |
|
|
17,648 |
|
|
|
21,277 |
|
Deferred
revenue |
|
|
21,182 |
|
|
|
16,377 |
|
Obligation
for claim payment |
|
|
28,222 |
|
|
|
29,328 |
|
Current
portion of finance lease liabilities |
|
|
11,143 |
|
|
|
12,231 |
|
Current
portion of operating lease liabilities |
|
|
17,852 |
|
|
|
18,349 |
|
Current
portion of long-term debts |
|
|
39,713 |
|
|
|
39,952 |
|
Total current liabilities |
|
|
419,612 |
|
|
|
454,739 |
|
Long-term
debt, net of current maturities |
|
|
1,499,031 |
|
|
|
1,498,004 |
|
Finance
lease liabilities, net of current portion |
|
|
11,401 |
|
|
|
13,287 |
|
Pension
liabilities, net |
|
|
35,335 |
|
|
|
35,515 |
|
Deferred
income tax liabilities |
|
|
9,154 |
|
|
|
9,569 |
|
Long-term
income tax liabilities |
|
|
2,260 |
|
|
|
2,759 |
|
Operating
lease liabilities, net of current portion |
|
|
54,929 |
|
|
|
56,814 |
|
Other
long-term liabilities |
|
|
13,336 |
|
|
|
13,624 |
|
Total liabilities |
|
|
2,045,058 |
|
|
|
2,084,311 |
|
Commitments
and Contingencies (Note 8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (deficit) |
|
|
|
|
|
|
Common
stock, par value of $0.0001 per share; 1,600,000,000 shares
authorized; 61,643,718 shares issued and 59,192,012 shares
outstanding at March 31, 2021 and 51,693,931 shares issued and
49,242,225 shares outstanding at December 31, 2020 |
|
|
16 |
|
|
|
15 |
|
Preferred
stock, par value of $0.0001 per share; 20,000,000 shares
authorized; 2,779,369 shares issued and outstanding at March 31,
2021 and 3,290,050 shares issued and outstanding at December,
2020 |
|
|
1 |
|
|
|
1 |
|
Additional
paid in capital |
|
|
471,804 |
|
|
|
446,739 |
|
Less: Common
Stock held in treasury, at cost; 2,451,706 shares at March 31, 2021
and December 31, 2020 |
|
|
(10,949 |
) |
|
|
(10,949 |
) |
Equity-based
compensation |
|
|
52,570 |
|
|
|
52,183 |
|
Accumulated
deficit |
|
|
(1,429,238 |
) |
|
|
(1,390,038 |
) |
Accumulated
other comprehensive loss: |
|
|
|
|
|
|
Foreign
currency translation adjustment |
|
|
(7,319 |
) |
|
|
(7,419 |
) |
Unrealized
pension actuarial losses, net of tax |
|
|
(17,221 |
) |
|
|
(17,064 |
) |
Total
accumulated other comprehensive loss |
|
|
(24,540 |
) |
|
|
(24,483 |
) |
Total stockholders' deficit |
|
|
(940,336 |
) |
|
|
(926,532 |
) |
Total liabilities and stockholders' deficit |
|
$ |
1,104,722 |
|
|
$ |
1,157,779 |
|
Exela Technologies, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations For the three months ended March 31,
2021 and 2020 (in thousands of United States dollars
except share and per share amounts)(UNAUDITED)
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Revenue |
|
$ |
300,056 |
|
|
$ |
365,451 |
|
Cost of
revenue (exclusive of depreciation and amortization) |
|
|
232,587 |
|
|
|
292,539 |
|
Selling,
general and administrative expenses (exclusive of depreciation and
amortization) |
|
|
41,885 |
|
|
|
50,374 |
|
Depreciation
and amortization |
|
|
19,599 |
|
|
|
23,185 |
|
Related
party expense |
|
|
1,707 |
|
|
|
1,551 |
|
Operating profit (loss) |
|
|
4,278 |
|
|
|
(2,198 |
) |
Other expense (income), net: |
|
|
|
|
|
|
Interest
expense, net |
|
|
43,131 |
|
|
|
41,588 |
|
Sundry
expense, net |
|
|
213 |
|
|
|
1,082 |
|
Other
expense (income), net |
|
|
152 |
|
|
|
(34,657 |
) |
Net
loss before income taxes |
|
|
(39,218 |
) |
|
|
(10,211 |
) |
Income tax benefit (expense) |
|
|
18 |
|
|
|
(2,459 |
) |
Net
loss |
|
$ |
(39,200 |
) |
|
$ |
(12,670 |
) |
Cumulative
dividends for Series A Preferred Stock |
|
|
896 |
|
|
|
1,440 |
|
Net
loss attributable to common stockholders |
|
$ |
(38,304 |
) |
|
$ |
(11,230 |
) |
Loss
per share: |
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.76 |
) |
|
$ |
(0.23 |
) |
Exela Technologies, Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows For the three months ended March 31,
2021 and 2020(in thousands of United States dollars unless
otherwise stated)(UNAUDITED)
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Cash
flows from operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(39,200 |
) |
|
$ |
(12,670 |
) |
Adjustments
to reconcile net loss |
|
|
|
|
|
|
Depreciation
and amortization |
|
|
19,599 |
|
|
|
23,185 |
|
Original
issue discount and debt issuance cost amortization |
|
|
3,840 |
|
|
|
3,193 |
|
Provision
for doubtful accounts |
|
|
50 |
|
|
|
74 |
|
Deferred
income tax provision |
|
|
(297 |
) |
|
|
(401 |
) |
Share-based
compensation expense |
|
|
387 |
|
|
|
861 |
|
Unrealized
foreign currency losses |
|
|
(159 |
) |
|
|
(936 |
) |
Loss (gain)
on sale of assets |
|
|
29 |
|
|
|
(35,246 |
) |
Fair value
adjustment for interest rate swap |
|
|
(125 |
) |
|
|
845 |
|
Change in
operating assets and liabilities, net of effect from
acquisitions |
|
|
|
|
|
|
Accounts receivable |
|
|
(11,248 |
) |
|
|
13,476 |
|
Prepaid expenses and other assets |
|
|
(5,895 |
) |
|
|
(5,678 |
) |
Accounts payable and accrued liabilities |
|
|
(30,787 |
) |
|
|
(21,420 |
) |
Related party payables |
|
|
37 |
|
|
|
(568 |
) |
Additions to outsource contract costs |
|
|
(156 |
) |
|
|
(88 |
) |
Net cash used in operating activities |
|
|
(63,925 |
) |
|
|
(35,373 |
) |
|
|
|
|
|
|
|
Cash
flows from investing activities |
|
|
|
|
|
|
Purchase of
property, plant and equipment |
|
|
(1,609 |
) |
|
|
(3,591 |
) |
Additions to
internally developed software |
|
|
(672 |
) |
|
|
(1,153 |
) |
Cash paid
for acquisition, net of cash received |
|
|
- |
|
|
|
(3,500 |
) |
Proceeds
from sale of assets |
|
|
- |
|
|
|
38,222 |
|
Net cash provided by (used in) investing
activities |
|
|
(2,281 |
) |
|
|
29,978 |
|
|
|
|
|
|
|
|
Cash
flows from financing activities |
|
|
|
|
|
|
Proceeds
from issuance of stock |
|
|
25,065 |
|
|
|
- |
|
Borrowings
under factoring arrangement and Securitization Facilities |
|
|
32,432 |
|
|
|
131,591 |
|
Principal
repayment on borrowings under factoring arrangement and
Securitization Facilities |
|
|
(31,533 |
) |
|
|
(23,042 |
) |
Lease
terminations |
|
|
(16 |
) |
|
|
(14 |
) |
Cash paid
for debt issuance costs |
|
|
- |
|
|
|
(2,908 |
) |
Principal
payments on finance lease obligations |
|
|
(3,029 |
) |
|
|
(3,187 |
) |
Borrowings
from senior secured revolving facility |
|
|
3,000 |
|
|
|
29,750 |
|
Repayments
on senior secured revolving facility |
|
|
- |
|
|
|
(14,000 |
) |
Borrowings
from other loans |
|
|
1,959 |
|
|
|
11,241 |
|
Principal
repayments on senior secured term loans and other loans |
|
|
(8,142 |
) |
|
|
(15,343 |
) |
Net cash provided by financing activities |
|
|
19,736 |
|
|
|
114,088 |
|
Effect of
exchange rates on cash |
|
|
(101 |
) |
|
|
(216 |
) |
Net decrease in cash and cash equivalents |
|
|
(46,571 |
) |
|
|
108,477 |
|
Cash,
restricted cash, and cash equivalents |
|
|
|
|
|
|
Beginning of
period |
|
|
70,309 |
|
|
|
14,099 |
|
End of
period |
|
$ |
23,738 |
|
|
$ |
122,576 |
|
|
|
|
|
|
|
|
Supplemental cash flow data: |
|
|
|
|
|
|
Income tax
payments, net of refunds received |
|
$ |
1,510 |
|
|
$ |
623 |
|
Interest
paid |
|
|
62,510 |
|
|
|
61,852 |
|
Noncash investing and financing activities: |
|
|
|
|
|
|
Assets
acquired through right-of-use arrangements |
|
|
220 |
|
|
|
270 |
|
Accrued
capital expenditures |
|
|
1,617 |
|
|
|
1,565 |
|
Exela
TechnologiesSchedule 1: First Quarter 2021 vs.
First Quarter 2020 Financial Performance
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in millions |
Q1'21 |
Q1'20 |
|
Change ($) |
|
|
|
|
|
|
|
|
Information and Transaction Processing Solutions |
231.9 |
|
284.1 |
|
|
(52.2 |
) |
|
Healthcare Solutions |
51.1 |
|
64.0 |
|
|
(12.9 |
) |
|
Legal and Loss Prevention Services |
17.1 |
|
17.3 |
|
|
(0.2 |
) |
|
Total Revenue |
300.1 |
|
365.5 |
|
|
(65.4 |
) |
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of depreciation and amortization) |
232.6 |
|
292.5 |
|
|
(60.0 |
) |
|
Gross profit |
67.5 |
|
72.9 |
|
|
(5.4 |
) |
|
as a % of revenue |
22% |
|
20% |
|
|
2.5% |
|
|
|
|
|
|
|
|
|
SG&A |
|
41.9 |
|
50.4 |
|
|
(8.5 |
) |
|
Depreciation and amortization |
19.6 |
|
23.2 |
|
|
(3.6 |
) |
|
Related party expense |
1.7 |
|
1.6 |
|
|
0.2 |
|
|
Operating (loss) income |
4.3 |
|
(2.2 |
) |
|
6.5 |
|
|
as a % of revenue |
1% |
|
-1% |
|
|
2.0% |
|
|
|
|
|
|
|
|
|
Interest expense, net |
43.1 |
|
41.6 |
|
|
1.5 |
|
|
Sundry expense (income) & Other income, net |
0.4 |
|
(33.6 |
) |
|
33.9 |
|
|
Net loss before income taxes |
(39.2 |
) |
(10.2 |
) |
|
(29.0 |
) |
|
Income tax expense (benefit) |
(0.0 |
) |
2.5 |
|
|
(2.5 |
) |
|
Net income (loss) |
(39.2 |
) |
(12.7 |
) |
|
(26.5 |
) |
|
as a % of revenue |
-13% |
|
-3% |
|
|
-9.6% |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
19.6 |
|
23.2 |
|
|
(3.6 |
) |
|
Interest expense, net |
43.1 |
|
41.6 |
|
|
1.5 |
|
|
Income tax expense (benefit) |
(0.0 |
) |
2.5 |
|
|
(2.5 |
) |
|
EBITDA |
23.5 |
|
54.6 |
|
|
(31.1 |
) |
|
as a % of revenue |
8% |
|
15% |
|
|
-7.1% |
|
|
|
|
|
|
|
|
|
EBITDA Adjustments |
|
|
|
|
|
1 |
Gain / loss
on derivative instruments |
(0.1 |
) |
0.8 |
|
|
(1.0 |
) |
|
2 |
Non-Cash and
Other Charges |
13.1 |
|
(28.5 |
) |
|
41.6 |
|
|
3 |
Transaction
and integration costs |
4.6 |
|
4.4 |
|
|
0.3 |
|
|
|
Sub-Total (Adj. EBITDA before O&R) |
41.1 |
|
31.2 |
|
|
9.9 |
|
|
4 |
Optimization and restructuring expenses |
5.4 |
|
13.1 |
|
|
(7.8 |
) |
|
Adjusted EBITDA |
46.5 |
|
44.4 |
|
|
2.1 |
|
|
as a % of revenue |
15.5% |
|
12.1% |
|
|
3.3% |
|
|
|
|
|
|
|
|
|
Exela
TechnologiesSchedule 2: Reconciliation of Adjusted
EBITDA and constant currency revenues
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures to GAAP
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP constant currency revenue
reconciliation |
|
|
|
|
|
|
|
($ in millions) |
|
Three months ended |
|
|
|
|
31-Mar-21 |
|
31-Mar-20 |
|
|
|
Revenues, as reported (GAAP) |
|
$300.1 |
|
|
$365.5 |
|
|
|
|
Foreign
currency exchange impact (1) |
|
|
(5.1 |
) |
|
|
|
|
|
Revenues, at constant currency (Non-GAAP) |
|
$294.9 |
|
|
$365.5 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Constant currency
excludes the impact of foreign currency fluctuations and is
computed by applying the average exchange rates for the three
months ended March 31, 2020, to the revenues during the
corresponding period in 2021. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA |
|
|
|
|
|
|
|
($ in millions) |
|
Three months ended |
|
|
|
|
31-Mar-21 |
|
31-Mar-20 |
|
|
|
Net loss (GAAP) |
|
($39.2 |
) |
|
($12.7 |
) |
|
|
|
Interest expense |
|
|
43.1 |
|
|
|
41.6 |
|
|
|
|
Taxes |
|
|
(0.0 |
) |
|
|
2.5 |
|
|
|
|
Depreciation
and amortization |
|
|
19.6 |
|
|
|
23.2 |
|
|
|
|
EBITDA (Non-GAAP) |
|
$23.5 |
|
|
$54.6 |
|
|
|
|
Transaction
and integration costs |
|
|
4.6 |
|
|
|
4.4 |
|
|
|
|
Optimization
and restructuring expenses |
|
|
5.4 |
|
|
|
13.1 |
|
|
|
|
Gain / loss
on derivative instruments |
|
|
(0.1 |
) |
|
|
0.8 |
|
|
|
|
Other
Charges |
|
|
13.1 |
|
|
|
(28.5 |
) |
|
|
|
Adjusted EBITDA (Non-GAAP) |
|
$46.5 |
|
|
$44.4 |
|
|
|
|
Foreign
currency exchange impact (1) |
|
|
- |
|
|
|
|
|
|
Adjusted EBITDA, at constant currency
(Non-GAAP) |
|
$46.5 |
|
|
$44.4 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Constant currency
excludes the impact of foreign currency fluctuations and is
computed by applying the average exchange rates for the three
months March 31, 2020, to the adjusted EBITDA during the
corresponding period in 2021. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 3:
Non-GAAP Revenue reconciliation & Adjusted EBITDA margin on
Revenue net of pass through |
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
|
Three months ended |
|
|
|
|
31-Mar-21 |
|
31-Mar-20 |
|
|
|
Revenues, as reported (GAAP) |
|
$300.1 |
|
|
$365.5 |
|
|
|
|
(-) Postage
& postage handling |
|
|
59.3 |
|
|
|
69.7 |
|
|
|
|
Revenue - Net of pass through (Non-GAAP) |
|
$240.7 |
|
|
$295.7 |
|
|
|
|
Revenue
growth % |
|
|
(18.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Non-GAAP) |
|
$46.5 |
|
|
$44.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
19.3% |
|
|
|
15.0% |
|
|
|
|
|
|
|
|
|
|
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