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Exela Technologies, Inc. Reports Preliminary Third Quarter 2022 Results

Exela Technologies, Inc.
Exela Technologies, Inc.
  • Revenue of $264 million, a decline of 5.4% from Q3 2021

  • Net loss of $85 million

  • Exela’s European business signed a deal to go public through a merger with CF Acquisition Corp. VIII based on a $220 million valuation

  • Won $87M TCV(1) in Q3; record YTD in new business wins

  • Small-and-Medium-Sized Business (“SMB”) continues strong growth with DMR(2) customers growing 227% and DrySign® users growing 1,244% over Q3 2021

  • Gross margin and operating income improvements in place for 2023

Conference call scheduled for November 14, 2022 at 6:00 PM ET

IRVING, Texas, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA, XELAP), a global business process automation (“BPA”) leader, announced today its financial results for the third quarter ended September 30, 2022.

“Since stepping into my current role over a year ago, we have completed many of the objectives laid out; however, our intrinsic value remains deeply discounted. Our business is positioned for operational leverage with conversion of the pipeline into contract wins, stable renewals, and significant operational improvements. In light of the macro environment, we are focused on converting actions into results,” said Par Chadha, Executive Chairman of Exela.

Third Quarter Business Highlights

  1. Exela’s European business signed a deal to go public through a merger with CF Acquisition Corp. VIII based on a $220 million valuation. Exela will be the majority owner of the merged public company

  2. Exela Technologies, Inc. subsidiaries own $298M principal amount of the 2026 Senior Notes issued by Exela Intermediate, LLC

  3. Revenue lower by $15.2M due to network outage, currency translation, transition revenue(3), other customer losses and tight job markets

  4. Strategic decision to adopt work from anywhere model is reaching inflection; approximately $40.5M in operational improvements estimated in 2023

  5. Won $87M TCV in Q3; record YTD in new business wins

  6. Digital Asset platforms DMR grew 227% and DrySign® 1,244% over Q3 2021

  7. Eliminated over $163M in liabilities due in 2022; Revolver and Appraisal Action payoff completed in Q3

Third Quarter Highlights

  • Revenue: Revenue for Q3 2022 was $264.0 million, a decline of 5.4% compared to $279.2 million in Q3 2021.

    • Revenue for the Information and Transaction Processing Solutions (“ITPS”) segment was $185.3 million, a decline of 11% year-over-year, primarily due to network outage impacting contracted revenues(4), currency translation, transition revenue and staffing shortages.

    • Healthcare Solutions revenue was $61.0 million, an increase of 13.0% year-over-year, led by continuing acceptance of our solutions and services.

    • Legal and Loss Prevention Services revenue was $17.8 million, an increase of 5.3% year-over-year.

Operating income/loss: Operating loss for Q3 2022 was $47.5 million, compared with operating income of $2.4 million in Q3 2021. The year over year change was due to the gross profit decline of $21.3 million and goodwill impairment charge of $29.6 million.

  • Net Loss: Net loss for Q3 2022 was $85.3 million, compared with a net loss of $13.2 million in Q3 2021. In addition to the changes in the operating loss and goodwill impairment, the year over year increase in net loss was due to a $23.4 million decline in non-cash debt modification and extinguishment gain.

    • EBITDA(5): EBITDA for Q3 2022 was ($24.7) million compared to $49.1 million in Q3 2021. EBITDA margin for Q3 2022 was (9.4%) compared to 17.6% in Q3 2021.

    • Adjusted EBITDA(6): Adjusted EBITDA for Q3 2022 was $31.8 million, a decrease of 12.5% compared to $36.4 million in Q3 2021. Adjusted EBITDA margin for Q3 2022 was 12.1%, a decrease of 98 basis points from 13.0% in Q3 2021 and down from 13.7% in Q2 2022.

  • Capital Expenditures: Capital expenditures for Q3 2022 were 1.7% of revenue compared to 1.3% of revenue in Q3 2021.

Maintaining financial flexibility: Raised a total of $67.6 million in gross proceeds from equity offerings in Q3 2022. Total debt(7) increased by $18.6 million compared to Q2 2022.

Below are the notes referenced above:
(1) Total Contract Value
(2) Digital Mailroom
(3) Represents revenue from exiting contracts and statements of work with certain customers that we believe was unpredictable, non-recurring and were not a strategic fit to the Company’s long-term success or unlikely to achieve the Company’s long-term target margins.
(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 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 and in the third 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 to Net Loss determined in accordance with GAAP is attached to this release.
(6) Adjusted EBITDA is a non-GAAP measure. A reconciliation of Adjusted EBITDA to Net Loss determined in accordance with GAAP is attached to this release.
(7) Total debt includes all long-term debt and interest-bearing current liabilities

Earnings Conference Call and Audio Webcast
Exela will host a conference call to discuss its third quarter 2022 financial results at 6:00 PM ET on November 14, 2022.   To access this call, dial 833-255-2831 or +1-412-902-6724 (international).

A replay will be available through November 21, 2022 at 877-344-7529 or +1-412-317-0088 (international). The replay passcode is 7071365. 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.

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 16,500 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 Securities and Exchange Commission. 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 Kondaveeti
E: vincent.kondaveeti@exelatech.com

Mary Beth Benjamin
E: IR@exelatech.com

Source: Exela Technologies, Inc.

 

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

As of September 30, 2022 and December 31, 2021

(in thousands of United States dollars except share and per share amounts)

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2022

 

2021

 

 

(Unaudited)

 

(Audited)

 

 

 

 

(Restated)

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,401

 

 

$

20,775

 

Restricted cash

 

 

34,402

 

 

 

27,285

 

Accounts receivable, net of allowance for doubtful accounts of $5,930 and $6,049, respectively

 

 

93,600

 

 

 

184,102

 

Related party receivables and prepaid expenses

 

 

504

 

 

 

715

 

Inventories, net

 

 

17,234

 

 

 

15,215

 

Prepaid expenses and other current assets

 

 

28,551

 

 

 

31,799

 

Total current assets

 

 

184,692

 

 

 

279,891

 

Property, plant and equipment, net of accumulated depreciation of $201,650 and $196,683, respectively

 

 

68,788

 

 

 

73,449

 

Operating lease right-of-use assets, net

 

 

44,943

 

 

 

53,937

 

Goodwill

 

 

328,071

 

 

 

358,323

 

Intangible assets, net

 

 

211,659

 

 

 

244,539

 

Deferred income tax assets

 

 

1,279

 

 

 

2,109

 

Other noncurrent assets

 

 

25,839

 

 

 

24,775

 

Total assets

 

$

865,271

 

 

$

1,037,023

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity (Deficit)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

80,783

 

 

$

61,744

 

Related party payables

 

 

1,698

 

 

 

1,484

 

Income tax payable

 

 

1,178

 

 

 

3,551

 

Accrued liabilities

 

 

52,795

 

 

 

113,519

 

Accrued compensation and benefits

 

 

52,925

 

 

 

60,860

 

Accrued interest

 

 

29,430

 

 

 

10,075

 

Customer deposits

 

 

18,278

 

 

 

17,707

 

Deferred revenue

 

 

15,681

 

 

 

16,617

 

Obligation for claim payment

 

 

50,780

 

 

 

46,902

 

Current portion of finance lease liabilities

 

 

4,902

 

 

 

6,683

 

Current portion of operating lease liabilities

 

 

13,127

 

 

 

15,923

 

Current portion of long-term debts

 

 

195,043

 

 

 

236,775

 

Total current liabilities

 

 

516,620

 

 

 

591,840

 

Long-term debt, net of current maturities

 

 

909,506

 

 

 

1,012,452

 

Finance lease liabilities, net of current portion

 

 

7,276

 

 

 

9,156

 

Pension liabilities, net

 

 

23,165

 

 

 

28,383

 

Deferred income tax liabilities

 

 

14,046

 

 

 

11,594

 

Long-term income tax liabilities

 

 

2,757

 

 

 

3,201

 

Operating lease liabilities, net of current portion

 

 

34,573

 

 

 

41,170

 

Other long-term liabilities

 

 

4,888

 

 

 

5,999

 

Total liabilities

 

 

1,512,831

 

 

 

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; 80,173,342 shares issued and 80,050,757 shares outstanding at September 30, 2022 and 13,382,333 shares issued and 13,259,748 shares outstanding at December 31, 2021

 

 

142

 

 

 

37

 

Preferred stock, $0.0001 par value per share, 20,000,000 shares authorized at September 30, 2022 and December 31, 2021, respectively

 

 

 

 

 

 

Series A Preferred Stock, 2,778,111 shares issued and outstanding at September 30, 2022 and December 31, 2021

 

 

1

 

 

 

1

 

Series B Preferred Stock, 3,029,900 shares issued and outstanding at September 30, 2022 and 0 shares issued and outstanding at December 31, 2021

 

 

-

 

 

 

-

 

Additional paid in capital

 

 

1,072,322

 

 

 

838,853

 

Less: Common Stock held in treasury, at cost; 122,585 shares at September 30, 2022 and December 31, 2021

 

 

(10,949

)

 

 

(10,949

)

Equity-based compensation

 

 

56,676

 

 

 

56,123

 

Accumulated deficit

 

 

(1,753,865

)

 

 

(1,532,428

)

Accumulated other comprehensive loss:

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(2,875

)

 

 

(7,463

)

Unrealized pension actuarial losses, net of tax

 

 

(9,012

)

 

 

(10,946

)

Total accumulated other comprehensive loss

 

 

(11,887

)

 

 

(18,409

)

Total stockholders' deficit

 

 

(647,560

)

 

 

(666,772

)

Total liabilities and stockholders' deficit

 

$

865,271

 

 

$

1,037,023

 

 

 

 

 

 

 

 

 

 


 

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the three and nine months ended September 30, 2022 and 2021

(in thousands of United States dollars except share and per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2022

 

2021

 

2022

 

2021

Revenue

 

$

264,038

 

 

$

279,229

 

 

$

810,206

 

 

$

872,294

 

Cost of revenue (exclusive of depreciation and amortization)

 

 

217,842

 

 

 

211,731

 

 

 

658,623

 

 

 

653,398

 

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

 

44,369

 

 

 

43,244

 

 

 

137,604

 

 

 

121,519

 

Depreciation and amortization

 

 

17,737

 

 

 

19,094

 

 

 

53,942

 

 

 

58,113

 

Impairment of goodwill and other intangible assets

 

 

29,565

 

 

 

-

 

 

 

29,565

 

 

 

-

 

Related party expense

 

 

2,016

 

 

 

2,744

 

 

 

6,189

 

 

 

7,199

 

Operating profit (loss)

 

 

(47,491

)

 

 

2,416

 

 

 

(75,717

)

 

 

32,065

 

Other expense (income), net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

40,897

 

 

 

41,757

 

 

 

122,928

 

 

 

127,755

 

Debt modification and extinguishment costs (gain), net

 

 

(4,696

)

 

 

(28,070

)

 

 

4,305

 

 

 

(28,070

)

Sundry expense (income), net

 

 

781

 

 

 

136

 

 

 

347

 

 

 

(438

)

Other expense (income), net

 

 

(1,115

)

 

 

366

 

 

 

12,419

 

 

 

1,169

 

Net loss before income taxes

 

 

(83,358

)

 

 

(11,773

)

 

 

(215,716

)

 

 

(68,351

)

Income tax expense

 

 

(1,924

)

 

 

(1,441

)

 

 

(5,721

)

 

 

(3,430

)

Net loss

 

$

(85,282

)

 

$

(13,214

)

 

$

(221,437

)

 

$

(71,781

)

Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature

 

 

 

 

 

 

 

Cumulative dividends for Series A Preferred Stock

 

 

(908

)

 

 

(822

)

 

 

(2,648

)

 

 

(724

)

Cumulative dividends for Series B Preferred Stock

 

 

(1,136

)

 

 

-

 

 

 

(2,528

)

 

 

-

 

Net loss attributable to common stockholders

 

$

(87,326

)

 

$

(14,036

)

 

$

(226,613

)

 

$

(72,505

)

Loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(1.38

)

 

$

(1.86

)

 

$

(6.41

)

 

$

(16.49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

For the nine months ended September 30, 2022 and 2021

(in thousands of United States dollars except share and per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2022

 

2021

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(221,437

)

 

$

(71,781

)

Adjustments to reconcile net loss

 

 

 

 

 

 

Depreciation and amortization

 

 

53,942

 

 

 

58,113

 

Original issue discount and debt issuance cost amortization

 

 

10,383

 

 

 

11,684

 

Debt modification and extinguishment costs (gain), net

 

 

(1,803

)

 

 

(28,070

)

Impairment of goodwill and other intangible assets

 

 

29,565

 

 

 

-

 

Provision for doubtful accounts

 

 

704

 

 

 

2,427

 

Deferred income tax provision

 

 

2,492

 

 

 

484

 

Share-based compensation expense

 

 

694

 

 

 

1,519

 

Unrealized foreign currency losses

 

 

(1,503

)

 

 

(604

)

Loss (Gain) on sale of assets

 

 

548

 

 

 

(112

)

Fair value adjustment for interest rate swap

 

 

-

 

 

 

(125

)

Change in operating assets and liabilities, net of effect from acquisitions

 

 

 

 

 

 

Accounts receivable

 

 

83,282

 

 

 

14,440

 

Prepaid expenses and other assets

 

 

(6,910

)

 

 

(4,329

)

Accounts payable and accrued liabilities

 

 

(37,004

)

 

 

(57,433

)

Related party payables

 

 

426

 

 

 

604

 

Additions to outsource contract costs

 

 

(330

)

 

 

(405

)

Net cash used in operating activities

 

 

(86,951

)

 

 

(73,588

)

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(14,208

)

 

 

(6,950

)

Additions to patents

 

 

(15

)

 

 

-

 

Additions to internally developed software

 

 

(2,710

)

 

 

(951

)

Proceeds from sale of assets

 

 

194

 

 

 

4,252

 

Net cash used in investing activities

 

 

(16,739

)

 

 

(3,649

)

 

 

 

 

 

 

 

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

 

 

245,073

 

 

 

249,169

 

Dividend paid on Series B Preferred Stock

 

 

(2,532

)

 

 

-

 

Repurchases of Common Stock for retirement

 

 

(487

)

 

 

-

 

Cash paid for equity issuance costs from at the market offerings

 

 

(8,480

)

 

 

(9,060

)

Borrowings under factoring arrangement and Securitization Facility

 

 

93,867

 

 

 

102,141

 

Principal repayment on borrowings under factoring arrangement and Securitization Facility

 

 

(186,245

)

 

 

(105,112

)

Cash paid for withholding taxes on vested RSUs

 

 

(138

)

 

 

-

 

Lease terminations

 

 

3

 

 

 

(125

)

Cash paid for debt issuance costs

 

 

(7,125

)

 

 

-

 

Principal payments on finance lease obligations

 

 

(4,342

)

 

 

(8,446

)

Borrowings from senior secured revolving facility and BRCC revolver

 

 

20,000

 

 

 

3,000

 

Repayments on senior secured revolving facility

 

 

(49,477

)

 

 

(55

)

Proceeds from issuance of 2026 Notes

 

 

80,620

 

 

 

-

 

Borrowings from other loans

 

 

7,500

 

 

 

8,537

 

Cash paid for debt repurchases

 

 

(4,712

)

 

 

(58,607

)

Repayment of BRCC term loan

 

 

(59,209

)

 

 

-

 

Principal repayments on senior secured term loans and other loans

 

 

(22,829

)

 

 

(28,512

)

Net cash provided by financing activities

 

 

101,487

 

 

 

177,995

 

Effect of exchange rates on cash

 

 

(1,054

)

 

 

(78

)

Net increase (decrease) in cash and cash equivalents

 

 

(3,257

)

 

 

100,680

 

Cash, restricted cash, and cash equivalents

 

 

 

 

 

 

Beginning of period

 

 

48,060

 

 

 

70,309

 

End of period

 

$

44,803

 

 

$

170,989

 

Supplemental cash flow data:

 

 

 

 

 

 

Income tax payments, net of refunds received

 

$

5,267

 

 

$

2,766

 

Interest paid

 

 

93,405

 

 

 

137,862

 

Noncash investing and financing activities:

 

 

 

 

 

 

Assets acquired through right-of-use arrangements

 

 

958

 

 

 

2,754

 

Leasehold improvements funded by lessor

 

 

-

 

 

 

125

 

Accrued capital expenditures

 

 

1,916

 

 

 

2,495

 

 

 

 

 

 

 

 

 

 


 

Exela Technologies
Schedule 1: Third Quarter 2022 vs. Third Quarter 2021
Financial Performance
(Unaudited)

 

 

 

 

 

 

 

 

 

$ in million

Q3-2022

Q3-2021

Increase (Decrease) YoY ($ mn)

Increase (Decrease) YoY (%)

 

Q2-2022

Increase (Decrease) QoQ ($ mn)

Increase (Decrease) QoQ (%)

 

 

 

 

 

 

 

 

 

Information and Transaction Processing Solutions

185.3

 

208.3

 

(23.0

)

(11.0%)

 

190.0

 

(4.7

)

(2.5%)

Healthcare Solutions

61.0

 

54.0

 

7.0

 

13.0%

 

56.4

 

4.6

 

8.2%

Legal and Loss Prevention Services

17.8

 

16.9

 

0.9

 

5.3%

 

20.4

 

(2.6

)

(12.7%)

Total Revenue

264.0

 

279.2

 

(15.2

)

-5.4%

 

266.8

 

(2.7

)

-1.0%

 

 

 

 

 

 

 

 

 

Gross profit

46.2

 

67.5

 

(21.3

)

(31.6%)

 

49.5

 

(3.3

)

(6.7%)

Gross profit margin

17.5%

 

24.2%

 

(6.7%

)

-668 bps

 

18.6%

 

(1.1%

)

-106 bps

 

 

 

 

 

 

 

 

 

SG&A

44.4

 

43.2

 

1.1

 

2.6%

 

50.2

 

(5.8

)

(11.6%)

 

 

 

 

 

 

 

 

 

Operating (loss) income

(47.5

)

2.4

 

(49.9

)

(2066.1%)

 

(20.9

)

(26.6

)

127.4%

Operating margin

(18.0%

)

0.9%

 

(18.9%

)

-1885 bps

 

(7.8%

)

(10.2%

)

-1016 bps

 

 

 

 

 

 

 

 

 

Net income (loss)

(85.3

)

(13.2

)

(72.1

)

545.4%

 

(79.2

)

(6.1

)

7.7%

Net income margin

(32.3%

)

(4.7%

)

(27.6%

)

-2757 bps

 

(29.7%

)

(2.6%

)

-261 bps

 

 

 

 

 

 

 

 

 

EBITDA

(24.7

)

49.1

 

(73.8

)

(150.4%)

 

(17.6

)

(7.1

)

40.2%

EBITDA Margin

(9.4%

)

17.6%

 

(26.9%

)

-2694 bps

 

(6.6%

)

(2.8%

)

-275 bps

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

31.8

 

36.4

 

(4.6

)

-12.5%

 

36.5

 

(4.6

)

-12.7%

Adjusted EBITDA margin

12.1%

 

13.0%

 

(1.0%

)

-98 bps

 

13.7%

 

(1.6%

)

-161 bps

 

 

 

 

 

 

 

 

 


 

Exela Technologies
Schedule 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-Sep-22

 

30-Sep-21

 

30-Jun-22

Revenues, as reported (GAAP)

 

$264.0

 

 

$279.2

 

 

$266.8

 

Foreign currency exchange impact(1)

 

 

7.0

 

 

 

 

 

6.2

 

Revenues, at constant currency (Non-GAAP)

 

$271.1

 

 

$279.2

 

 

$273.0

 

 

 

 

 

 

 

 

(1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the three months and nine months ended September 30, 2021, to the revenues during the corresponding period in 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

 

Three months ended

($ in millions)

 

30-Sep-22

 

30-Sep-21

 

30-Jun-22

Net loss (GAAP)

 

($85.3

)

 

($13.2

)

 

($79.2

)

Interest expense

 

 

40.9

 

 

 

41.8

 

 

 

42.3

 

Taxes

 

 

1.9

 

 

 

1.4

 

 

 

1.3

 

Depreciation and amortization

 

 

17.7

 

 

 

19.1

 

 

 

18.0

 

EBITDA (Non-GAAP)

 

($24.7

)

 

$49.1

 

 

($17.6

)

Transaction and integration costs

 

 

4.1

 

 

 

1.9

 

 

 

8.6

 

Gain / loss on derivative instruments

 

 

(1.1

)

 

 

-

 

 

 

-

 

Other Charges / (gains)

 

 

47.2

 

 

 

(19.3

)

 

 

38.9

 

Sub-Total (Adj. EBITDA before O&R)

 

$25.6

 

 

$31.7

 

 

$29.9

 

Optimization and restructuring expenses

 

 

6.3

 

 

 

4.7

 

 

 

6.6

 

Adjusted EBITDA (Non-GAAP)

 

$31.8

 

 

$36.4

 

 

$36.5