Exela Technologies, Inc. Reports Preliminary Second Quarter 2022 Results

Exela Technologies, Inc.

  • Revenue of $267 million, a decline of 9% from Q2 2021

  • Net loss of $79 million

  • $230 million of TCV(1) won, a 294% increase compared to Q1 2022

  • Small-and-Medium-Sized Business (“SMB”) continues strong growth with DMR(2) customers growing 343% over Q2 2021 and DrySign® users growing 1,786% over Q2 2021

  • Total debt(3) reduction of $118 million compared to Q1 2022

  • Raised $58.2 million through equity offering

  • Liquidity of $72 million as of June 30, 2022

Conference call scheduled for August 9, 2022 at 4:30 PM ET

IRVING, Texas, Aug. 09, 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 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

  • 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.

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 [email protected]

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 Results
The 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 Kondaveeti
E: [email protected]

Mary Beth Benjamin
E: [email protected]

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 Technologies
Schedule 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 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-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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