Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA,
XELAP), a global business process automation (“BPA”) leader,
announced today its financial results for the second quarter ended
June 30, 2022.
“We started the implementation of the next step
of our Capital Deployment Strategy in Q2. Our capital structure
dislocation represents an opportunity to deploy capital from the
sale of assets and equity capital markets to purchase debt and
invest for growth. Our business is prepared for tomorrow with
tenured management and many additional new leaders with fresh
ideas, who together are working on improving operating results
while combating headwinds from the strong dollar, tight job
markets, inflation and a network outage,” said Par Chadha,
Executive Chairman of Exela.
“We are executing well against our growth
initiatives and capital redeployment strategy that enable us to
better serve our customers and enhance shareholder value.”
Second Quarter Highlights
- Revenue: Revenue
for Q2 2022 was $266.8 million, a decline of 9.0% compared to
$293.0 million in Q2 2021.
- Revenue for the ITPS segment was
$190.0 million, a decline of 12.6% year-over-year, primarily due to
a network outage(4), staffing shortages and the strong dollar.
- Healthcare Solutions revenue was
$56.4 million, roughly flat year-over-year.
- Legal and Loss Prevention Services
revenue was $20.4 million, an increase of 4.3% year-over-year.
- Operating
income/(loss): Operating loss for Q2 2022 was $20.9
million, compared with operating income of $25.4 million in Q2
2021. The year-over-year increase in operating loss was primarily
attributable to lower revenue and higher SG&A spend.
- Net Loss: Net loss
for Q2 2022 was $79.2 million, compared with a net loss of $19.4
million in Q2 2021.
-
EBITDA(5):
EBITDA for Q2 2022 was $(17.6) million compared to $44.9 million in
Q2 2021. EBITDA margin for Q2 2022 was (6.6%) compared to 15.3% in
Q2 2021.
- Adjusted
EBITDA(6):
Adjusted EBITDA for Q2 2022 was $36.5 million, a decrease of 28%
compared to $50.9 million in Q2 2021. Adjusted EBITDA margin for Q2
2022 was 13.7%, a decrease of 371 basis points from 17.4% in Q2
2021 and up from 12.9% in Q1 2022.
- Capital
Expenditures: Capital expenditures for Q2 2022 were 1.4%
of revenue compared to 0.7% of revenue in Q2 2021.
- Common Stock: As
of June 30, 2022, there were 40.4 million total shares(7).
Balance Sheet and Liquidity: As
of June 30, 2022, total liquidity was $72 million. Total net
debt(8) at June 30, 2022 was $1.04 billion.
Expanding financial
flexibility: Raised a total of $58.2 million in gross
proceeds from equity offerings in Q2 2022. In accordance with
Exela's plan to strategically reduce debt and associated interest
expense as well as to invest in growth, total debt(3) was reduced
by $118 million compared to Q1 2022.
Below are the notes referenced above:(1) Total
Contract Value(2) Digital Mailroom(3) Total debt includes all
long-term debt and interest-bearing current liabilities.(4) In late
June 2022, the Company experienced a network security incident
impacting certain of the Company’s operational and information
technology systems. The Company immediately took steps to isolate
the impact and prevent additional systems from being affected,
including taking large parts of its network offline as a precaution
and thereby disrupting some access to our applications and services
by our employees and customers. The Company’s systems recovery
efforts are substantially complete, and the Company’s operations
are fully functional, however, the incident did result in some loss
of revenue in the end of the second quarter as well as certain
incremental costs, some of which is expected to continue. (5)
EBITDA is a non-GAAP measure. A reconciliation of EBITDA is
attached to this release.(6) Adjusted EBITDA is a non-GAAP measure.
A reconciliation of Adjusted EBITDA is attached to this release.(7)
On July 25, 2022, we effected a one-for-twenty reverse split (the
“Reverse Stock Split”) of our issued and outstanding shares of
common stock, par value $0.0001 per share (“Common Stock”). All
information related to Common Stock, have been retroactively
adjusted to give effect to the Reverse Stock Split.(8) Net debt is
calculated as Total debt (excluding the secured debt repurchase
facility) less unrestricted cash
Earnings Conference Call and Audio Webcast
Exela will host a conference call to discuss its
second quarter 2022 financial results at 4:30 p.m. ET on August 9,
2022. To access this call, dial 833-255-2831 or +1-412-902-6724
(international).
A replay will be available through August 16, 2022 at
877-344-7529 or +1-412-317-0088 (international). The replay
passcode is 1664969. A replay will also be archived on the
Exela investor relations website at
http://investors.exelatech.com.
Exela invites all investors to ask questions
that they would like addressed on the conference call. We ask
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.
Final ResultsThe financial
results described above are preliminary, unaudited and represent
the most recent current information available
to Exela management. Exela’s actual results may differ
from these estimated financial results, including due to the
completion of its financial closing procedures, final adjustments
that may arise between the date of this press release and the time
that financial results for the second quarter of 2022 are
finalized, and such differences may be material. In addition, these
financial results do not reflect important limitations,
qualifications and details that will be included in the full
financial statements to be included in the Company’s Form 10-Q to
be filed with the U.S. Securities and Exchange Commission
(“SEC”).
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. Utilizing foundational technologies spanning
information management, workflow automation, and integrated
communications, Exela’s software and services include
multi-industry, departmental solution suites addressing finance and
accounting, human capital management, and legal management, as well
as industry-specific solutions for banking, healthcare, insurance,
and the public sector. Through cloud-enabled platforms, built on a
configurable stack of automation modules, and approximately 17,000
employees operating in 21 countries, Exela rapidly deploys
integrated technology and operations as an end-to-end digital
journey partner.
Find out more at www.exelatech.com
To automatically receive Exela financial news by e-mail, please
visit the Exela Investor Relations
website, http://investors.exelatech.com/, and subscribe to
E-mail Alerts.
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 the network
outage described in this press release and those discussed under
the heading “Risk Factors” in our Annual Report and in subsequent
filings with the SEC. 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.
For more Exela news, commentary, and industry
perspectives, visit:
Website: https://investors.exelatech.com/
Twitter: @ExelaTech
LinkedIn: /exela-technologies
Facebook: @exelatechnologies
Instagram: @exelatechnologies
The information posted on the Company's website and/or via its
social media accounts may be deemed material to investors.
Accordingly, investors, media and others interested in the Company
should monitor the Company's website and its social media accounts
in addition to the Company's press releases, SEC filings
and public conference calls and webcasts.
Investor and/or Media
Contacts:Vincent KondaveetiE:
vincent.kondaveeti@exelatech.com
Mary Beth BenjaminE: IR@exelatech.com
Source: Exela Technologies, Inc.
Exela
Technologies, Inc. and
Subsidiaries |
Condensed
Consolidated Balance
Sheets |
As of June
30, 2022 and December 31,
2021 |
(in thousands of
United States dollars except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
2022 |
|
2021 |
|
|
|
|
(Unaudited) |
|
(Audited) |
|
|
Assets |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
50,261 |
|
|
$ |
20,775 |
|
|
|
Restricted
cash |
|
|
42,916 |
|
|
|
27,285 |
|
|
|
Accounts
receivable, net of allowance for doubtful accounts of $6,067 and
$6,049, respectively |
|
|
99,350 |
|
|
|
184,102 |
|
|
|
Related
party receivables and prepaid expenses |
|
|
715 |
|
|
|
715 |
|
|
|
Inventories,
net |
|
|
16,225 |
|
|
|
15,215 |
|
|
|
Prepaid
expenses and other current assets |
|
|
29,785 |
|
|
|
31,799 |
|
|
|
Total current assets |
|
|
239,252 |
|
|
|
279,891 |
|
|
|
Property,
plant and equipment, net of accumulated depreciation of $200,064
and $196,683, respectively |
|
|
70,486 |
|
|
|
73,449 |
|
|
|
Operating
lease right-of-use assets, net |
|
|
49,124 |
|
|
|
53,937 |
|
|
|
Goodwill |
|
|
358,172 |
|
|
|
358,323 |
|
|
|
Intangible
assets, net |
|
|
222,634 |
|
|
|
244,539 |
|
|
|
Deferred
income tax assets |
|
|
1,629 |
|
|
|
2,109 |
|
|
|
Other
noncurrent assets |
|
|
26,273 |
|
|
|
24,775 |
|
|
|
Total assets |
|
$ |
967,570 |
|
|
$ |
1,037,023 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
(Deficit) |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
70,093 |
|
|
$ |
61,744 |
|
|
|
Related
party payables |
|
|
1,460 |
|
|
|
1,484 |
|
|
|
Income tax
payable |
|
|
2,273 |
|
|
|
3,551 |
|
|
|
Accrued
liabilities |
|
|
96,341 |
|
|
|
113,519 |
|
|
|
Accrued
compensation and benefits |
|
|
54,618 |
|
|
|
60,860 |
|
|
|
Accrued
interest |
|
|
64,658 |
|
|
|
10,075 |
|
|
|
Customer
deposits |
|
|
20,070 |
|
|
|
17,707 |
|
|
|
Deferred
revenue |
|
|
15,448 |
|
|
|
16,617 |
|
|
|
Obligation
for claim payment |
|
|
60,001 |
|
|
|
46,902 |
|
|
|
Current
portion of finance lease liabilities |
|
|
5,270 |
|
|
|
6,683 |
|
|
|
Current
portion of operating lease liabilities |
|
|
14,355 |
|
|
|
15,923 |
|
|
|
Current
portion of long-term debts |
|
|
124,921 |
|
|
|
144,828 |
|
|
|
Total current liabilities |
|
|
529,508 |
|
|
|
499,893 |
|
|
|
Long-term
debt, net of current maturities |
|
|
975,457 |
|
|
|
1,104,399 |
|
|
|
Finance
lease liabilities, net of current portion |
|
|
8,374 |
|
|
|
9,156 |
|
|
|
Pension
liabilities, net |
|
|
25,463 |
|
|
|
28,383 |
|
|
|
Deferred
income tax liabilities |
|
|
12,969 |
|
|
|
11,594 |
|
|
|
Long-term
income tax liabilities |
|
|
2,815 |
|
|
|
3,201 |
|
|
|
Operating
lease liabilities, net of current portion |
|
|
37,111 |
|
|
|
41,170 |
|
|
|
Other
long-term liabilities |
|
|
4,941 |
|
|
|
5,999 |
|
|
|
Total liabilities |
|
|
1,596,638 |
|
|
|
1,703,795 |
|
|
|
Commitments
and Contingencies (Note 8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (deficit) |
|
|
|
|
|
|
|
|
Common
Stock, par value of $0.0001 per share; 1,600,000,000 shares
authorized; 40,381,860 shares issued and 40,259,274 shares
outstanding at June 30, 2022 and 13,382,333 shares issued and
13,259,748 shares outstanding at December 31, 2021 |
|
|
91 |
|
|
|
37 |
|
|
|
Preferred
stock, $0.0001 par value per share, 20,000,000 shares authorized at
June 30, 2022 and December 31, 2021, respectively |
|
|
|
|
|
|
|
|
Series A Preferred Stock, 2,778,111 shares issued and outstanding
at June 30, 2022 and December 31, 2021 |
|
|
1 |
|
|
|
1 |
|
|
|
Series B Preferred Stock, 3,029,900 shares issued and outstanding
at June 30, 2022 and 0 shares issued and outstanding at December
31, 2021 |
|
|
- |
|
|
|
- |
|
|
|
Additional
paid in capital |
|
|
1,008,300 |
|
|
|
838,853 |
|
|
|
Less: Common
Stock held in treasury, at cost; 122,585 shares at June 30, 2022
and December 31, 2021 |
|
|
(10,949 |
) |
|
|
(10,949 |
) |
|
|
Equity-based
compensation |
|
|
56,761 |
|
|
|
56,123 |
|
|
|
Accumulated
deficit |
|
|
(1,668,583 |
) |
|
|
(1,532,428 |
) |
|
|
Accumulated
other comprehensive loss: |
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment |
|
|
(4,853 |
) |
|
|
(7,463 |
) |
|
|
Unrealized
pension actuarial losses, net of tax |
|
|
(9,836 |
) |
|
|
(10,946 |
) |
|
|
Total
accumulated other comprehensive loss |
|
|
(14,689 |
) |
|
|
(18,409 |
) |
|
|
Total stockholders' deficit |
|
|
(629,068 |
) |
|
|
(666,772 |
) |
|
|
Total liabilities and stockholders' deficit |
|
$ |
967,570 |
|
|
$ |
1,037,023 |
|
|
|
Exela
Technologies, Inc. and
Subsidiaries |
Condensed
Consolidated Statements of Operations
|
For the
three and six months ended June 30, 2022 and
2021 |
(in thousands of
United States dollars except share and per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
266,770 |
|
|
$ |
293,009 |
|
|
$ |
546,168 |
|
|
$ |
593,065 |
|
Cost of
revenue (exclusive of depreciation and amortization) |
|
|
217,277 |
|
|
|
209,080 |
|
|
|
440,781 |
|
|
|
441,667 |
|
Selling,
general and administrative expenses (exclusive of depreciation and
amortization) |
|
|
50,195 |
|
|
|
36,390 |
|
|
|
93,235 |
|
|
|
78,275 |
|
Depreciation
and amortization |
|
|
17,993 |
|
|
|
19,420 |
|
|
|
36,205 |
|
|
|
39,019 |
|
Related
party expense |
|
|
2,186 |
|
|
|
2,748 |
|
|
|
4,173 |
|
|
|
4,455 |
|
Operating profit (loss) |
|
|
(20,881 |
) |
|
|
25,371 |
|
|
|
(28,226 |
) |
|
|
29,649 |
|
Other expense (income), net: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
42,271 |
|
|
|
42,867 |
|
|
|
82,031 |
|
|
|
85,998 |
|
Debt
modification and extinguishment costs (gain), net |
|
|
8,117 |
|
|
|
— |
|
|
|
9,001 |
|
|
|
— |
|
Sundry
income, net |
|
|
(741 |
) |
|
|
(787 |
) |
|
|
(434 |
) |
|
|
(574 |
) |
Other
expense, net |
|
|
7,375 |
|
|
|
651 |
|
|
|
13,534 |
|
|
|
803 |
|
Net
loss before income taxes |
|
|
(77,903 |
) |
|
|
(17,360 |
) |
|
|
(132,358 |
) |
|
|
(56,578 |
) |
Income tax expense |
|
|
(1,296 |
) |
|
|
(2,007 |
) |
|
|
(3,797 |
) |
|
|
(1,989 |
) |
Net
loss |
|
$ |
(79,199 |
) |
|
$ |
(19,367 |
) |
|
$ |
(136,155 |
) |
|
$ |
(58,567 |
) |
Dividend
equivalent on Series A Preferred Stock related to beneficial
conversion feature |
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
dividends for Series A Preferred Stock |
|
|
(876 |
) |
|
|
(798 |
) |
|
|
(1,740 |
) |
|
|
98 |
|
Cumulative
dividends for Series B Preferred Stock |
|
|
(1,317 |
) |
|
|
— |
|
|
|
(1,392 |
) |
|
|
— |
|
Net
loss attributable to common stockholders |
|
$ |
(81,392 |
) |
|
$ |
(20,165 |
) |
|
$ |
(139,287 |
) |
|
$ |
(58,469 |
) |
Loss
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(3.22 |
) |
|
$ |
(6.56 |
) |
|
$ |
(6.55 |
) |
|
$ |
(20.85 |
) |
Exela
Technologies, Inc. and
Subsidiaries |
Condensed
Consolidated Statement of Cash
Flows |
For the six
months ended June 30, 2022 and
2021 |
(in thousands of
United States dollars except share and per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
Cash
flows from operating activities |
|
|
|
|
|
|
|
Net loss |
|
$ |
(136,155 |
) |
|
$ |
(58,567 |
) |
|
Adjustments
to reconcile net loss |
|
|
|
|
|
|
|
Depreciation
and amortization |
|
|
36,205 |
|
|
|
39,019 |
|
|
Original
issue discount and debt issuance cost amortization |
|
|
5,804 |
|
|
|
7,829 |
|
|
Debt
modification and extinguishment costs (gain), net |
|
|
3,533 |
|
|
|
— |
|
|
Provision
for doubtful accounts |
|
|
285 |
|
|
|
1,781 |
|
|
Deferred
income tax provision |
|
|
1,383 |
|
|
|
(41 |
) |
|
Share-based
compensation expense |
|
|
836 |
|
|
|
980 |
|
|
Unrealized
foreign currency losses |
|
|
(989 |
) |
|
|
(485 |
) |
|
Loss (Gain)
on sale of assets |
|
|
508 |
|
|
|
(238 |
) |
|
Fair value
adjustment for interest rate swap |
|
|
— |
|
|
|
(125 |
) |
|
Change in
operating assets and liabilities, net of effect from
acquisitions |
|
|
|
|
|
|
|
Accounts receivable |
|
|
80,674 |
|
|
|
2,004 |
|
|
Prepaid expenses and other assets |
|
|
(10,870 |
) |
|
|
(3,447 |
) |
|
Accounts payable and accrued liabilities |
|
|
45,148 |
|
|
|
(34,785 |
) |
|
Related party payables |
|
|
(23 |
) |
|
|
391 |
|
|
Additions to outsource contract costs |
|
|
(199 |
) |
|
|
(304 |
) |
|
Net cash provided by (used in) operating
activities |
|
|
26,140 |
|
|
|
(45,988 |
) |
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities |
|
|
|
|
|
|
|
Purchase of
property, plant and equipment |
|
|
(10,689 |
) |
|
|
(3,498 |
) |
|
Additions to
patents |
|
|
(15 |
) |
|
|
— |
|
|
Additions to
internally developed software |
|
|
(1,736 |
) |
|
|
(820 |
) |
|
Proceeds
from sale of assets |
|
|
194 |
|
|
|
4,252 |
|
|
Net cash used in investing activities |
|
|
(12,246 |
) |
|
|
(66 |
) |
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities |
|
|
|
|
|
|
|
Proceeds
from issuance of Common Stock from private placement |
|
|
— |
|
|
|
25,065 |
|
|
Proceeds
from issuance of Common Stock from at the market offerings |
|
|
177,388 |
|
|
|
18,118 |
|
|
Dividend
paid on Series B Preferred Stock |
|
|
(1,396 |
) |
|
|
— |
|
|
Cash paid
for equity issuance costs from at the market offerings |
|
|
(6,493 |
) |
|
|
(745 |
) |
|
Borrowings
under factoring arrangement and Securitization Facility |
|
|
69,143 |
|
|
|
66,098 |
|
|
Principal
repayment on borrowings under factoring arrangement and
Securitization Facility |
|
|
(160,684 |
) |
|
|
(68,800 |
) |
|
Cash paid
for withholding taxes on vested RSUs |
|
|
(195 |
) |
|
|
— |
|
|
Lease
terminations |
|
|
(15 |
) |
|
|
(119 |
) |
|
Cash paid
for debt issuance costs |
|
|
(7,125 |
) |
|
|
— |
|
|
Principal
payments on finance lease obligations |
|
|
(2,884 |
) |
|
|
(5,600 |
) |
|
Borrowings
from senior secured revolving facility |
|
|
12,500 |
|
|
|
3,000 |
|
|
Repayments
on senior secured revolving facility |
|
|
(49,477 |
) |
|
|
(55 |
) |
|
Proceeds
from issuance of 2026 Notes |
|
|
56,583 |
|
|
|
— |
|
|
Borrowings
from other loans |
|
|
5,491 |
|
|
|
4,776 |
|
|
Repayment of
BRCC term loan |
|
|
(46,202 |
) |
|
|
— |
|
|
Principal
repayments on senior secured term loans and other loans |
|
|
(15,007 |
) |
|
|
(18,076 |
) |
|
Net cash provided by financing activities |
|
|
31,627 |
|
|
|
23,662 |
|
|
Effect of
exchange rates on cash |
|
|
(404 |
) |
|
|
(53 |
) |
|
Net increase (decrease) in cash and cash
equivalents |
|
|
45,117 |
|
|
|
(22,445 |
) |
|
Cash,
restricted cash, and cash equivalents |
|
|
|
|
|
|
|
Beginning of
period |
|
|
48,060 |
|
|
|
70,309 |
|
|
End of
period |
|
$ |
93,177 |
|
|
$ |
47,864 |
|
|
Supplemental cash flow data: |
|
|
|
|
|
|
|
Income tax
payments, net of refunds received |
|
$ |
4,453 |
|
|
$ |
1,994 |
|
|
Interest
paid |
|
|
19,103 |
|
|
|
75,136 |
|
|
Noncash investing and financing activities: |
|
|
|
|
|
|
|
Assets
acquired through right-of-use arrangements |
|
|
231 |
|
|
|
2,159 |
|
|
Leasehold
improvements funded by lessor |
|
|
— |
|
|
|
125 |
|
|
Accrued
capital expenditures |
|
|
1,400 |
|
|
|
1,505 |
|
|
Exela
TechnologiesSchedule 1: Second Quarter 2022 vs.
Second Quarter 2021 Financial Performance
(Unaudited) |
|
|
|
|
|
|
|
|
|
$ in million |
Q2-2022 |
Q2-2021 |
Increase (Decrease) YoY ($ mn) |
Increase (Decrease) YoY (%) |
|
Q1-2022 |
Increase (Decrease) QoQ ($ mn) |
Increase (Decrease) QoQ (%) |
|
|
|
|
|
|
|
|
|
Information
and Transaction Processing Solutions |
190.0 |
217.3 |
(27.3) |
(12.6%) |
|
205.0 |
(15.0) |
(7.3%) |
Healthcare
Solutions |
56.4 |
56.2 |
0.2 |
0.4% |
|
56.6 |
(0.2) |
(0.4%) |
Legal and
Loss Prevention Services |
20.4 |
19.5 |
0.9 |
4.6% |
|
17.8 |
2.6 |
14.6% |
Total Revenue |
266.8 |
293.0 |
(26.2) |
-9.0% |
|
279.4 |
(12.6) |
-4.5% |
|
|
|
|
|
|
|
|
|
Gross
profit |
49.5 |
83.9 |
(34.4) |
(41.0%) |
|
55.9 |
(6.4) |
(11.5%) |
Gross profit margin |
18.6% |
28.6% |
(10.1%) |
-1009 bps |
|
20.0% |
(1.5%) |
-145 bps |
|
|
|
|
|
|
|
|
|
SG&A |
50.2 |
36.4 |
13.8 |
37.9% |
|
43.0 |
7.2 |
16.6% |
|
|
|
|
|
|
|
|
|
Operating
(loss) income |
(20.9) |
25.4 |
(46.3) |
(182.3%) |
|
(7.3) |
(13.5) |
184.3% |
Operating margin |
(7.8%) |
8.7% |
(16.5%) |
-1649 bps |
|
(2.6%) |
(5.2%) |
-520 bps |
|
|
|
|
|
|
|
|
|
Net income
(loss) |
(79.2) |
(19.4) |
(59.8) |
308.9% |
|
(57.0) |
(22.2) |
39.1% |
Net income margin |
(29.7%) |
(6.6%) |
(23.1%) |
-2308 bps |
|
(20.4%) |
(9.3%) |
-930 bps |
|
|
|
|
|
|
|
|
|
EBITDA |
(17.6) |
44.9 |
(62.6) |
(139.3%) |
|
3.5 |
(21.2) |
(601.6%) |
EBITDA Margin |
(6.6%) |
15.3% |
(21.9%) |
-2194 bps |
|
1.3% |
(7.9%) |
-787 bps |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
36.5 |
50.9 |
(14.5) |
-28.4% |
|
36.1 |
0.3 |
0.9% |
Adjusted EBITDA margin |
13.7% |
17.4% |
(3.7%) |
-371 bps |
|
12.9% |
0.7% |
74 bps |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
Three months ended |
|
($ in
millions) |
|
30-Jun-22 |
|
30-Jun-21 |
|
31-Mar-22 |
|
Revenues, as reported (GAAP) |
|
$266.8 |
|
$293.0 |
|
$279.4 |
|
Foreign
currency exchange impact (1) |
|
6.2 |
|
|
|
3.7 |
|
Revenues, at constant currency (Non-GAAP) |
|
$273.0 |
|
$293.0 |
|
$283.1 |
|
|
|
|
|
|
|
|
|
(1) Constant currency excludes the impact of foreign currency
fluctuations and is computed by applying the average exchange rates
for the three months and six months ended June 30, 2021, to the
revenues during the corresponding period in 2022. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA |
|
|
|
|
|
|
|
($ in millions) |
|
Three months ended |
|
|
30-Jun-22 |
30-Jun-21 |
31-Mar-22 |
Net loss (GAAP) |
|
($79.2) |
|
($19.4) |
|
($57.0) |
|
Interest
expense |
|
42.3 |
|
42.9 |
|
39.8 |
|
Taxes |
|
1.3 |
|
2.0 |
|
2.5 |
|
Depreciation
and amortization |
|
18.0 |
|
19.4 |
|
18.2 |
|
EBITDA (Non-GAAP) |
|
($17.6) |
|
$44.9 |
|
$3.5 |
|
Transaction
and integration costs |
|
8.6 |
|
1.4 |
|
3.7 |
|
Other
Charges / (gains) |
|
38.9 |
|
(0.3) |
|
22.1 |
|
Sub-Total (Adj. EBITDA before O&R) |
|
$29.9 |
|
$46.0 |
|
$29.3 |
|
Optimization
and restructuring expenses |
|
6.6 |
|
4.9 |
|
6.8 |
|
Adjusted EBITDA (Non-GAAP) |
|
$36.5 |
|
$50.9 |
|
$36.1 |
|
|
|
|
|
|
|
|
|
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