Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA),
a global business process automation (“BPA”) leader, announced
today its financial results for the second quarter ended June 30,
2021.
“We generated strong margin expansion in the
second quarter, which reflects our ongoing commitment to focus on
our core businesses and drive operational improvement. We are
pleased with the rapid growth of our digital solutions for the SMB
market where we see significant opportunity for continued
expansion. Finally, we are also pleased to report a $158 million
liquidity exceeding our liquidity targets announced in November
2019 while reducing our outstanding debt. Based on our second
quarter results and the increased stability in our business, we
reiterate our prior 2021 guidance,” said Ronald Cogburn, Chief
Executive Officer of Exela.
Second Quarter 2021 Financial
Highlights
- Revenue: Revenue
for Q2 2021 was $293.0 million, a decline of 4.8% compared to
$307.7 million in Q2 2020. Revenue for the Information and
Transaction Processing Solutions segment was $217.3 million, a
decline of 10.6% year-over-year, primarily due to lower volumes as
a result of COVID-19 and transition revenue (6) roll off. Exela
believes it is well positioned to see volumes return in the ITPS
segment once COVID-19 impacts subside. Healthcare Solutions revenue
was $56.2 million, an increase of 14.3% year-over-year, primarily
due to increased volumes driven by new statements of work, new
customers and backlog from existing customers. Legal and Loss
Prevention Services revenue was $19.5 million, an increase of 25.9%
year-over-year.
- Operating income /
(loss): Operating income for Q2 2021 was $25.4 million,
compared with operating loss of $5.1 million in Q2 2020. The
year-over-year improvement in operating income was primarily
attributable to higher gross profit, lower SG&A costs, and
lower depreciation and amortization expenses.
- Net Loss: Net loss
for Q2 2021 was $19.4 million, compared with a net loss of $48.7
million in Q2 2020, primarily due to increased operating income and
lower interest expense.
- Adjusted
EBITDA: Adjusted EBITDA for Q2 2021 was $50.9
million, an increase of 18.0% compared to $43.1 million in Q2 2020.
Adjusted EBITDA margin for Q2 2021 was 17.4%, an increase of 336
basis points from 14.0% in Q2 2020 and 189 basis points from 15.5%
in Q1 2021.
- Common Stock: As
of June 30, 2021, there were 70,409,282 total shares of common
stock outstanding and an additional 1,245,758 shares of common
stock reserved for issuance for our outstanding preferred shares on
an as-converted basis.
Second Quarter 2021 Business
HighlightsContract and product updates:
- Completed the commercial launch of DrySign in India on June 1,
2021, allowing businesses to sign documents from any internet
connected device
- Launched Digital Mail Room (“DMR”) on June 30, 2021 in the
United Kingdom and launched in France and Germany in August 2020,
facilitating continued global expansion
- Q2 2021 DrySign user growth of 144% and DMR customer growth of
99% from Q1 2021
- Expanded PCH Global Deployment for one of the world’s largest
specialty care services insurance companies, paving the way to
connecting claims and correspondence from over 27,000 unique
hospital systems and providers across the country
Operating leverage improvement continues:
- Completed four real estate facility closures in the second
quarter, underscoring continued adoption of Exela’s
Work-From-Anywhere model
- Automation led efficiencies reduced employee count to
approximately 18,000 as of June 30, 2021 from 18,400 as of March
31, 2021
Capital Expenditures: Capital
expenditures for the second quarter of 2021 were 0.7% of revenue
compared to 1.1% of revenue in the second quarter of 2020.
Balance Sheet and
Liquidity(7): As of June
30, 2021, Exela’s liquidity was $67.9 million. Exela’s net debt at
June 30, 2021 was $1,477.2 billion (as determined in accordance
with the Company's credit agreement). As of August 6, 2021 the
Company’s liquidity was approximately $158 million including $136
million of cash and cash equivalents.
Expanding financial
flexibility: Raised a total of $223.9 million in gross
proceeds year to date through August 6, 2021 under three equity
offerings. (4)
- As of August 6, 2021, and after giving effect to the shares
sold in the equity offerings, there were 144,041,323 shares of
common stock outstanding.
- In accordance with Exela’s plan to use proceeds from its equity
offerings to strategically reduce its debt and associated interest
expense obligations as well as explore ways to invest in its
growth, Exela repurchased an aggregate of $59.1 million of
its term loans and senior secured notes for an aggregate
purchase price of $35.1 million since June 30, 2021.
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 profit 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.
Preliminary Results; Notes
The financial results discussed herein are presented on a
preliminary basis; final data will be included in Exela’s Quarterly
Report on Form 10-Q for the period ended June 30, 2021.
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 arising from
items excludes from the measures.(4) – The $224 million gross
equity proceeds include $197 million of equity proceeds raised
through the at-the-market sale of equity securities in the YTD
period. The equity proceeds also include $26.8 million from the
private placement offering completed earlier this year in March
2021. 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) – Net debt is calculated as the difference between
the total debt outstanding (including $1.0 billion of senior
secured notes, $355.1 million of term loans under the credit
agreement dated July 12, 2017, $83.5 million of revolving credit
facility, $21.8 million of capital leases and $32.0 million
of other debt) and the sum of $59.1 million debt repurchased (but
not retired following the quarter end) and $136.0 million of
consolidated cash balances as of August 6, 2021.(6) – 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.(7) –
Liquidity as defined per the third amendment of the credit
agreement effective May 15, 2020.
Earnings Conference Call and Audio
WebcastExela will host a conference call to discuss its
second quarter 2021 financial results at 11:00 a.m. ET on August
10, 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 August 17, 2021 at 877-344-7529 or +1-412-317-0088
(international). The replay passcode is 10159119.
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 18,400 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
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.
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.
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.
Rounding : Due to rounding,
numbers presented throughout this document may not add up precisely
to the totals provided and percentages may not precisely reflect
absolute figures.
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 June 30, 2021 and December 31,
2020(in thousands of United States dollars except share
and per share amounts)(UNAUDITED)
|
|
June 30, |
|
December 31, |
|
|
2021 |
|
2020 |
|
|
(Unaudited) |
|
(Audited) |
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
45,866 |
|
|
$ |
68,221 |
|
Restricted cash |
|
|
1,998 |
|
|
|
2,088 |
|
Accounts receivable, net of allowance for doubtful accounts of
$5,885 and $5,647, respectively |
|
|
201,929 |
|
|
|
206,868 |
|
Related party receivables and prepaid expenses |
|
|
712 |
|
|
|
711 |
|
Inventories, net |
|
|
15,130 |
|
|
|
14,314 |
|
Prepaid expenses and other current assets |
|
|
25,822 |
|
|
|
31,091 |
|
Total current assets |
|
|
291,457 |
|
|
|
323,293 |
|
Property, plant and equipment, net of accumulated depreciation of
$185,684 and $193,760, respectively |
|
76,520 |
|
|
|
87,851 |
|
Operating lease right-of-use assets, net |
|
|
63,529 |
|
|
|
68,861 |
|
Goodwill |
|
|
358,561 |
|
|
|
359,781 |
|
Intangible assets, net |
|
|
268,525 |
|
|
|
292,664 |
|
Deferred income tax assets |
|
|
6,643 |
|
|
|
6,606 |
|
Other noncurrent assets |
|
|
25,420 |
|
|
|
18,723 |
|
Total assets |
|
$ |
1,090,655 |
|
|
$ |
1,157,779 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
(Deficit) |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
65,801 |
|
|
$ |
76,027 |
|
Related party payables |
|
|
489 |
|
|
|
97 |
|
Income tax payable |
|
|
1,654 |
|
|
|
2,466 |
|
Accrued liabilities |
|
|
111,713 |
|
|
|
126,399 |
|
Accrued compensation and benefits |
|
|
63,417 |
|
|
|
63,467 |
|
Accrued interest |
|
|
48,952 |
|
|
|
48,769 |
|
Customer deposits |
|
|
15,269 |
|
|
|
21,277 |
|
Deferred revenue |
|
|
20,935 |
|
|
|
16,377 |
|
Obligation for claim payment |
|
|
25,562 |
|
|
|
29,328 |
|
Current portion of finance lease liabilities |
|
|
9,960 |
|
|
|
12,231 |
|
Current portion of operating lease liabilities |
|
|
17,096 |
|
|
|
18,349 |
|
Current portion of long-term debts |
|
|
34,778 |
|
|
|
39,952 |
|
Total current liabilities |
|
|
415,626 |
|
|
|
454,739 |
|
Long-term debt, net of current maturities |
|
|
1,497,063 |
|
|
|
1,498,004 |
|
Finance lease liabilities, net of current portion |
|
|
11,884 |
|
|
|
13,287 |
|
Pension liabilities, net |
|
|
34,885 |
|
|
|
35,515 |
|
Deferred income tax liabilities |
|
|
10,331 |
|
|
|
9,569 |
|
Long-term income tax liabilities |
|
|
2,283 |
|
|
|
2,759 |
|
Operating lease liabilities, net of current portion |
|
|
49,391 |
|
|
|
56,814 |
|
Other long-term liabilities |
|
|
12,458 |
|
|
|
13,624 |
|
Total liabilities |
|
|
2,033,921 |
|
|
|
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; 72,860,988 shares issued and 70,409,282 shares
outstanding at June 30, 2021 and 51,693,931 shares issued and
49,242,225 shares outstanding at December 31, 2020 |
|
|
17 |
|
|
|
15 |
|
Preferred stock, par value of $0.0001 per share; 20,000,000 shares
authorized; 2,778,111 shares issued and outstanding at June 30,
2021 and 3,290,050 shares issued and outstanding at December 31,
2020 |
|
|
1 |
|
|
|
1 |
|
Additional paid in capital |
|
|
489,176 |
|
|
|
446,739 |
|
Less: Common Stock held in treasury, at cost; 2,451,706 shares at
June 30, 2021 and December 31, 2020 |
|
|
(10,949 |
) |
|
|
(10,949 |
) |
Equity-based compensation |
|
|
53,163 |
|
|
|
52,183 |
|
Accumulated deficit |
|
|
(1,448,605 |
) |
|
|
(1,390,038 |
) |
Accumulated other comprehensive loss: |
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
(8,763 |
) |
|
|
(7,419 |
) |
Unrealized pension actuarial losses, net of tax |
|
|
(17,306 |
) |
|
|
(17,064 |
) |
Total accumulated other comprehensive loss |
|
|
(26,069 |
) |
|
|
(24,483 |
) |
Total stockholders’ deficit |
|
|
(943,266 |
) |
|
|
(926,532 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
1,090,655 |
|
|
$ |
1,157,779 |
|
Exela Technologies, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations For the three and six months ended June
30, 2021 and 2020 (in thousands of United States dollars
except share and per share amounts)(UNAUDITED)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
$ |
293,009 |
|
|
$ |
307,722 |
|
|
$ |
593,064 |
|
|
$ |
673,173 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
|
209,080 |
|
|
|
241,788 |
|
|
|
441,666 |
|
|
|
534,326 |
|
Selling, general and administrative expenses (exclusive of
depreciation and amortization) |
|
|
36,390 |
|
|
|
47,014 |
|
|
|
78,275 |
|
|
|
97,387 |
|
Depreciation and amortization |
|
|
19,420 |
|
|
|
22,847 |
|
|
|
39,020 |
|
|
|
46,032 |
|
Related party expense |
|
|
2,748 |
|
|
|
1,146 |
|
|
|
4,455 |
|
|
|
2,698 |
|
Operating profit (loss) |
|
|
25,371 |
|
|
|
(5,073 |
) |
|
|
29,648 |
|
|
|
(7,270 |
) |
Other expense (income), net: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
42,867 |
|
|
|
44,440 |
|
|
|
85,999 |
|
|
|
86,028 |
|
Sundry expense (income), net |
|
|
(787 |
) |
|
|
(899 |
) |
|
|
(573 |
) |
|
|
183 |
|
Other expense (income), net |
|
|
651 |
|
|
|
(584 |
) |
|
|
803 |
|
|
|
(35,241 |
) |
Net loss before income taxes |
|
|
(17,360 |
) |
|
|
(48,030 |
) |
|
|
(56,581 |
) |
|
|
(58,240 |
) |
Income tax benefit (expense) |
|
|
(2,007 |
) |
|
|
(661 |
) |
|
|
(1,989 |
) |
|
|
(3,120 |
) |
Net loss |
|
$ |
(19,367 |
) |
|
$ |
(48,691 |
) |
|
$ |
(58,570 |
) |
|
$ |
(61,360 |
) |
Cumulative dividends for Series A Preferred Stock |
|
|
(798 |
) |
|
|
(858 |
) |
|
|
98 |
|
|
|
582 |
|
Net loss attributable to common stockholders |
|
$ |
(20,165 |
) |
|
$ |
(49,549 |
) |
|
$ |
(58,472 |
) |
|
$ |
(60,778 |
) |
Loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.33 |
) |
|
$ |
(1.01 |
) |
|
$ |
(1.04 |
) |
|
$ |
(1.24 |
) |
Exela Technologies, Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows For the six months ended June 30, 2021
and 2020(in thousands of United States dollars unless
otherwise stated)(UNAUDITED)
|
|
Six Months Ended June 30, |
|
|
2021 |
|
2020 |
Cash flows from operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(58,570 |
) |
|
$ |
(61,360 |
) |
Adjustments to reconcile net loss |
|
|
|
|
|
|
Depreciation and amortization |
|
|
39,020 |
|
|
|
46,032 |
|
Original issue discount and debt issuance cost amortization |
|
|
7,829 |
|
|
|
6,857 |
|
Provision for doubtful accounts |
|
|
1,781 |
|
|
|
(110 |
) |
Deferred income tax provision |
|
|
(41 |
) |
|
|
(338 |
) |
Share-based compensation expense |
|
|
980 |
|
|
|
1,782 |
|
Unrealized foreign currency losses |
|
|
(485 |
) |
|
|
(980 |
) |
Gain on sale of assets |
|
|
(238 |
) |
|
|
(34,791 |
) |
Fair value adjustment for interest rate swap |
|
|
(125 |
) |
|
|
440 |
|
Change in operating assets and liabilities, net of effect from
acquisitions |
|
|
|
|
|
|
Accounts receivable |
|
|
2,004 |
|
|
|
38,260 |
|
Prepaid expenses and other assets |
|
|
(3,447 |
) |
|
|
(9,157 |
) |
Accounts payable and accrued liabilities |
|
|
(34,785 |
) |
|
|
(8,812 |
) |
Related party payables |
|
|
391 |
|
|
|
(642 |
) |
Additions to outsource contract costs |
|
|
(304 |
) |
|
|
(297 |
) |
Net cash used in operating activities |
|
|
(45,990 |
) |
|
|
(23,116 |
) |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(3,498 |
) |
|
|
(5,766 |
) |
Additions to internally developed software |
|
|
(820 |
) |
|
|
(2,216 |
) |
Cash paid for acquisition, net of cash received |
|
|
- |
|
|
|
(3,500 |
) |
Proceeds from sale of assets |
|
|
4,252 |
|
|
|
38,222 |
|
Net cash provided by (used in) investing
activities |
|
|
(66 |
) |
|
|
26,740 |
|
|
|
|
|
|
|
|
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 |
|
|
18,118 |
|
|
|
- |
|
Cash paid for equity issuance costs from at the market
offerings |
|
|
(745 |
) |
|
|
- |
|
Borrowings under factoring arrangement and Securitization
Facilities |
|
|
66,098 |
|
|
|
149,951 |
|
Principal repayment on borrowings under factoring arrangement and
Securitization Facilities |
|
|
(68,800 |
) |
|
|
(66,114 |
) |
Lease terminations |
|
|
(119 |
) |
|
|
(331 |
) |
Cash paid for debt issuance costs |
|
|
- |
|
|
|
(12,708 |
) |
Principal payments on finance lease obligations |
|
|
(5,600 |
) |
|
|
(6,353 |
) |
Borrowings from senior secured revolving facility |
|
|
3,000 |
|
|
|
29,750 |
|
Repayments on senior secured revolving facility |
|
|
(55 |
) |
|
|
(14,200 |
) |
Borrowings from other loans |
|
|
4,776 |
|
|
|
23,248 |
|
Principal repayments on senior secured term loans and other
loans |
|
|
(18,076 |
) |
|
|
(29,040 |
) |
Net cash provided by financing activities |
|
|
23,662 |
|
|
|
74,203 |
|
Effect of exchange rates on cash |
|
|
(51 |
) |
|
|
1 |
|
Net decrease in cash and cash equivalents |
|
|
(22,445 |
) |
|
|
77,828 |
|
Cash, restricted cash, and cash equivalents |
|
|
|
|
|
|
Beginning of period |
|
|
70,309 |
|
|
|
14,099 |
|
End of period |
|
$ |
47,864 |
|
|
$ |
91,927 |
|
|
|
|
|
|
|
|
Supplemental cash flow data: |
|
|
|
|
|
|
Income tax payments, net of refunds received |
|
$ |
1,994 |
|
|
$ |
1,339 |
|
Interest paid |
|
|
75,136 |
|
|
|
76,781 |
|
Noncash investing and financing activities: |
|
|
|
|
|
|
Assets acquired through right-of-use arrangements |
|
|
2,159 |
|
|
|
772 |
|
Leasehold improvements funded by lessor |
|
|
125 |
|
|
|
- |
|
Settlement gain on related party payable to Ex-Sigma 2 |
|
|
- |
|
|
|
1,287 |
|
Accrued capital expenditures |
|
|
1,505 |
|
|
|
1,088 |
|
Exela
TechnologiesSchedule 1: Second Quarter 2021 vs.
Second Quarter 2020 and First Half 2021 vs. First Half 2020
Financial Performance (UNAUDITED)
$ in millions |
Q2'21 |
Q2'20 |
|
H1'21 |
H1'20 |
|
|
|
|
|
|
|
Information and Transaction Processing Solutions |
217.3 |
|
243.0 |
|
|
449.2 |
|
527.1 |
|
Healthcare Solutions |
56.2 |
|
49.2 |
|
|
107.3 |
|
113.2 |
|
Legal and Loss Prevention Services |
19.5 |
|
15.5 |
|
|
36.6 |
|
32.8 |
|
Total Revenue |
293.0 |
|
307.7 |
|
|
593.1 |
|
673.2 |
|
% change |
-5 |
% |
-21 |
% |
|
-12 |
% |
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of depreciation and amortization) |
209.1 |
|
241.8 |
|
|
441.7 |
|
534.3 |
|
Gross profit |
83.9 |
|
65.9 |
|
|
151.4 |
|
138.8 |
|
as a % of revenue |
29 |
% |
21 |
% |
|
26 |
% |
21 |
% |
|
|
|
|
|
|
|
SG&A |
|
36.4 |
|
47.0 |
|
|
78.3 |
|
97.4 |
|
Depreciation and amortization |
19.4 |
|
22.8 |
|
|
39.0 |
|
46.0 |
|
Related party expense |
2.7 |
|
1.1 |
|
|
4.5 |
|
2.7 |
|
Operating (loss) income |
25.4 |
|
(5.1 |
) |
|
29.6 |
|
(7.3 |
) |
as a % of revenue |
9 |
% |
-2 |
% |
|
5 |
% |
-1 |
% |
|
|
|
|
|
|
|
Interest expense, net |
42.9 |
|
44.4 |
|
|
86.0 |
|
86.0 |
|
Sundry expense (income) & Other income, net |
(0.1 |
) |
(1.5 |
) |
|
0.2 |
|
(35.1 |
) |
Net loss before income taxes |
(17.4 |
) |
(48.0 |
) |
|
(56.6 |
) |
(58.2 |
) |
Income tax expense (benefit) |
2.0 |
|
0.7 |
|
|
2.0 |
|
3.1 |
|
Net income (loss) |
(19.4 |
) |
(48.7 |
) |
|
(58.6 |
) |
(61.4 |
) |
as a % of revenue |
-7 |
% |
-16 |
% |
|
-10 |
% |
-9 |
% |
|
|
|
|
|
|
|
Depreciation and amortization |
19.4 |
|
22.8 |
|
|
39.0 |
|
46.0 |
|
Interest expense, net |
42.9 |
|
44.4 |
|
|
86.0 |
|
86.0 |
|
Income tax expense (benefit) |
2.0 |
|
0.7 |
|
|
2.0 |
|
3.1 |
|
EBITDA |
44.9 |
|
19.3 |
|
|
68.4 |
|
73.8 |
|
as a % of revenue |
15 |
% |
6 |
% |
|
12 |
% |
11 |
% |
|
|
|
|
|
|
|
EBITDA Adjustments |
|
|
|
|
|
1 |
Gain / loss on derivative instruments |
- |
|
(0.4 |
) |
|
(0.1 |
) |
0.4 |
|
2 |
Non-Cash and Other Charges |
(0.3 |
) |
7.8 |
|
|
12.8 |
|
(20.8 |
) |
3 |
Transaction and integration costs |
1.4 |
|
4.8 |
|
|
6.0 |
|
9.2 |
|
|
Sub-Total (Adj. EBITDA before O&R) |
46.0 |
|
31.4 |
|
|
87.1 |
|
62.7 |
|
4 |
Optimization and restructuring expenses |
4.9 |
|
11.7 |
|
|
10.3 |
|
24.9 |
|
Adjusted EBITDA |
50.9 |
|
43.1 |
|
|
97.4 |
|
87.5 |
|
as a % of revenue |
17 |
% |
14 |
% |
|
16 |
% |
13 |
% |
Exela
TechnologiesSchedule 2: Reconciliation of Adjusted
EBITDA and constant currency revenues
Non-GAAP constant currency revenue
reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
($ in millions) |
|
30-Jun-21 |
|
30-Jun-20 |
|
31-Mar-21 |
|
30-Jun-21 |
|
30-Jun-20 |
Revenues, as reported (GAAP) |
|
$293.0 |
|
|
$307.7 |
|
|
$300.1 |
|
|
$593.1 |
|
|
$673.2 |
|
Foreign currency exchange impact (1) |
|
(5.5 |
) |
|
|
|
(5.1 |
) |
|
(10.6 |
) |
|
|
Revenues, at constant currency (Non-GAAP) |
|
$287.5 |
|
|
$307.7 |
|
|
$294.9 |
|
|
$582.5 |
|
|
$673.2 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Constant currency excludes the impact of foreign currency
fluctuations and is computed by applying the average exchange rates
for the three months and six months ended June 30, 2020, to the
revenues during the corresponding period in 2021. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
($ in millions) |
|
30-Jun-21 |
|
30-Jun-20 |
|
31-Mar-21 |
|
30-Jun-21 |
|
30-Jun-20 |
Net loss (GAAP) |
|
($19.4 |
) |
|
($48.7 |
) |
|
($39.2 |
) |
|
($58.6 |
) |
|
($61.4 |
) |
Interest expense |
|
42.9 |
|
|
44.4 |
|
|
43.1 |
|
|
86.0 |
|
|
86.0 |
|
Taxes |
|
2.0 |
|
|
0.7 |
|
|
(0.0 |
) |
|
2.0 |
|
|
3.1 |
|
Depreciation and amortization |
|
19.4 |
|
|
22.8 |
|
|
19.6 |
|
|
39.0 |
|
|
46.0 |
|
EBITDA (Non-GAAP) |
|
$44.9 |
|
|
$19.3 |
|
|
$23.5 |
|
|
$68.4 |
|
|
$73.8 |
|
Transaction and integration costs |
|
1.4 |
|
|
4.8 |
|
|
4.6 |
|
|
6.0 |
|
|
9.2 |
|
Gain / loss on derivative instruments |
|
- |
|
|
(0.4 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
0.4 |
|
Other Charges |
|
(0.3 |
) |
|
7.8 |
|
|
13.1 |
|
|
12.8 |
|
|
(20.8 |
) |
Sub-Total (Adj. EBITDA before O&R) |
|
$46.0 |
|
|
$31.4 |
|
|
$41.1 |
|
|
$87.1 |
|
|
$62.7 |
|
Optimization and restructuring expenses |
|
4.9 |
|
|
11.7 |
|
|
5.4 |
|
|
10.3 |
|
|
24.9 |
|
Adjusted EBITDA (Non-GAAP) |
|
$50.9 |
|
|
$43.1 |
|
|
$46.5 |
|
|
$97.4 |
|
|
$87.5 |
|
Schedule 3: Non-GAAP Revenue
reconciliation & Adjusted EBITDA margin on Revenue net of pass
through
Non-GAAP revenue reconciliation & Adjusted EBITDA
margin on revenue net of pass through |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
($ in millions) |
|
30-Jun-21 |
|
30-Jun-20 |
|
31-Mar-21 |
|
30-Jun-21 |
|
30-Jun-20 |
Revenues, as reported (GAAP) |
|
$293.0 |
|
|
$307.7 |
|
|
$300.1 |
|
|
$593.1 |
|
|
$673.2 |
|
(-) Postage & postage handling |
|
52.8 |
|
|
55.2 |
|
|
59.3 |
|
|
112.2 |
|
|
125.0 |
|
Revenue - Net of pass through (Non-GAAP) |
|
$240.2 |
|
|
$252.5 |
|
|
$240.7 |
|
|
$480.9 |
|
|
$548.2 |
|
Revenue growth % |
|
(4.9 |
%) |
|
|
|
|
|
(12.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Non-GAAP) |
|
$50.9 |
|
|
$43.1 |
|
|
$46.5 |
|
|
$97.4 |
|
|
$87.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
21.2 |
% |
|
17.1 |
% |
|
19.3 |
% |
|
20.2 |
% |
|
16.0 |
% |
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