Exela Technologies, Inc. Reports Second Quarter 2024 Results
Exela Technologies (NASDAQ: XELA) reported Q2 2024 results with revenue of $245.7 million, down 10.0% year-over-year. The company saw a gross margin improvement of 120 bps to 23.5%. Despite lower revenue, Exela reduced its net loss to $26.9 million, an improvement of $4.0 million year-over-year. Adjusted EBITDA decreased 39.0% to $13.7 million. The company's interest expense significantly decreased by 48.7% to $23.1 million due to debt modification. However, SG&A expenses increased by 30.5% to $41.8 million, partly due to a one-time profit from asset sale in the previous year and current write-downs. Exela's focus on cost management and real estate rationalization contributed to margin expansion.
Exela Technologies (NASDAQ: XELA) ha riportato i risultati del secondo trimestre del 2024, con un fatturato di 245,7 milioni di dollari, in calo del 10,0% rispetto all'anno precedente. L'azienda ha registrato un miglioramento del margine lordo di 120 punti base, raggiungendo il 23,5%. Nonostante il calo dei ricavi, Exela ha ridotto la sua perdita netta a 26,9 milioni di dollari, un miglioramento di 4,0 milioni rispetto all'anno precedente. L'EBITDA rettificato è diminuito del 39,0% a 13,7 milioni di dollari. Le spese per interessi sono diminuite significativamente del 48,7% a 23,1 milioni di dollari grazie a una modifica del debito. Tuttavia, le spese SG&A sono aumentate del 30,5% a 41,8 milioni di dollari, parzialmente a causa di un profitto una tantum dalla vendita di attrezzature dell'anno precedente e dei riscatti attuali. Il focus di Exela sulla gestione dei costi e sulla razionalizzazione del patrimonio immobiliare ha contribuito all'espansione del margine.
Exela Technologies (NASDAQ: XELA) reportó los resultados del segundo trimestre de 2024, con ingresos de 245,7 millones de dólares, una disminución del 10,0% en comparación con el año anterior. La compañía vio una mejora en el margen bruto de 120 puntos básicos, alcanzando el 23,5%. A pesar de la disminución en los ingresos, Exela redujo su pérdida neta a 26,9 millones de dólares, una mejora de 4,0 millones con respecto al año anterior. El EBITDA ajustado disminuyó un 39,0%, quedando en 13,7 millones de dólares. Los gastos por intereses disminuyeron significativamente un 48,7% a 23,1 millones de dólares debido a la modificación de la deuda. Sin embargo, los gastos SG&A aumentaron un 30,5% a 41,8 millones de dólares, en parte debido a una ganancia única por la venta de activos el año anterior y a los ajustes actuales. El enfoque de Exela en la gestión de costos y la racionalización de bienes raíces contribuyó a la expansión del margen.
Exela Technologies (NASDAQ: XELA)는 2024년 2분기 실적을 발표했으며, 매출은 2억 4570만 달러로 작년 대비 10.0% 감소했습니다. 회사는 총 이익률이 120bp 개선되어 23.5%에 도달했습니다. 매출 감소에도 불구하고 Exela는 순손실을 2690만 달러로 줄였습니다, 이는 작년 대비 400만 달러 개선된 수치입니다. 조정된 EBITDA는 39.0% 감소하여 1370만 달러에 달했습니다. 이자 비용은 채무 조정으로 48.7% 크게 감소하여 2310만 달러가 되었습니다. 그러나 판매 및 일반 관리비(SG&A) 지출은 30.5% 증가하여 4180만 달러에 이르렀으며, 이는 지난해 자산 매각으로 인한 일회성 수익과 현재의 자산 감액의 영향 때문입니다. Exela의 비용 관리와 부동산 합리화에 대한 집중은 이익률 확장에 기여했습니다.
Exela Technologies (NASDAQ: XELA) a publié ses résultats du deuxième trimestre 2024, avec un chiffre d'affaires de 245,7 millions de dollars, en baisse de 10,0% par rapport à l'année précédente. L'entreprise a enregistré une amélioration de la marge brute de 120 points de base, atteignant 23,5%. Malgré la baisse des revenus, Exela a réduit sa perte nette à 26,9 millions de dollars, soit une amélioration de 4,0 millions par rapport à l'année précédente. L'EBITDA ajusté a diminué de 39,0% pour atteindre 13,7 millions de dollars. Les frais d'intérêt ont considérablement diminué de 48,7% pour s'établir à 23,1 millions de dollars grâce à la modification de la dette. Cependant, les dépenses SG&A ont augmenté de 30,5% pour atteindre 41,8 millions de dollars, en partie en raison d'un bénéfice exceptionnel provenant de la vente d'actifs l'année précédente et de provisions actuelles. L'accent mis par Exela sur la gestion des coûts et la rationalisation des biens immobiliers a contribué à l'expansion de la marge.
Exela Technologies (NASDAQ: XELA) hat die Ergebnisse des zweiten Quartals 2024 veröffentlicht, mit Einnahmen von 245,7 Millionen Dollar, was einem Rückgang von 10,0% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete eine Verbesserung der Bruttomarge um 120 Basispunkte auf 23,5%. Trotz rückläufiger Einnahmen konnte Exela seinen Nettoverlust auf 26,9 Millionen Dollar reduzieren, was eine Verbesserung von 4,0 Millionen im Jahresvergleich darstellt. Das bereinigte EBITDA fiel um 39,0% auf 13,7 Millionen Dollar. Die Zinsaufwendungen sanken signifikant um 48,7% auf 23,1 Millionen Dollar aufgrund einer Schuldenumwandlung. Allerdings steigen die SG&A-Kosten um 30,5% auf 41,8 Millionen Dollar, was teilweise auf einen einmaligen Gewinn aus dem Verkauf von Vermögenswerten im Vorjahr und aktuelle Abschreibungen zurückzuführen ist. Exelas Fokus auf Kostenmanagement und Immobilienrationalisierung trug zur Margenausweitung bei.
- Gross margin improved by 120 bps to 23.5% year-over-year
- Interest expense decreased by 48.7% to $23.1 million due to debt modification
- Net loss improved by $4.0 million year-over-year
- Legal & Loss Prevention Services revenue increased by 6.3% year-over-year
- Revenue declined by 10.0% year-over-year to $245.7 million
- Operating loss of $2.4 million compared to $11.2 million operating profit in Q2 2023
- Adjusted EBITDA decreased by 39.0% year-over-year to $13.7 million
- SG&A expenses increased by 30.5% to $41.8 million
Insights
Exela Technologies' Q2 2024 results paint a mixed picture. While revenue declined
Exela's performance reflects broader industry trends. The decline in Information and Transaction Processing Solutions segment (
Exela's position as a business process automation leader is important in the current market. The company's focus on user-friendly software platforms for digital transformation aligns with industry demands. However, the revenue decline suggests intensifying competition or potential market saturation. The write-down related to a partner contract amendment, while resulting in higher pricing and service expansion, indicates evolving partnerships in the tech ecosystem. Exela's global footprint and proprietary technology offer competitive advantages, but the company needs to accelerate innovation and service delivery to reverse the revenue decline and capitalize on the growing demand for automation solutions in various industries.
Second Quarter Highlights
- Revenue of
$245.7 million , down10.0% year-over-year - Gross margin of
23.5% , up 120 bps year-over-year - Interest expense of
$23.1 million , down48.7% year-over-year - SG&A of
$41.8 million , up30.5% year-over-year - Operating loss of
$2.4 million , vs$11.2 million operating profit, year-over-year - Net loss of
$26.9 million ($25.7 million attributable to Exela Technologies, Inc.), an improvement of$4.0 million year-over-year - Adjusted EBITDA of
$13.7 million , down39.0% year-over-year
IRVING, Texas, Aug. 15, 2024 (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 quarter ended June 30, 2024.
“Our increased operating leverage and continued focus on cost management and rationalization of our real estate footprint are reflected in the solid expansion of our gross margin. We continue to add new logos and remain cautiously optimistic as we head into the second half of the year,” noted Par Chadha, Executive Chairman.
- Revenue: Revenue for 2Q 2024 was
$245.7 million , a decline of10.0% compared to$272.9 million in 2Q 2023 (or a decline of9.3% when excluding the sale of the high-speed scanner business in June 2023).
- Revenue for the Information and Transaction Processing Solutions segment was
$156.8 million , a decline of15.2% year-over-year (or a decline of14.0% on a pro forma basis when adjusted for the sale of the high-speed scanner business that occurred in June 2023). - Healthcare Solutions generated
$62.9 million in revenue, a1.1% decline year-over-year. - Legal & Loss Prevention Services generated
$25.9 million in revenue, a6.3% increase year-over-year.
- Revenue for the Information and Transaction Processing Solutions segment was
- Gross margin of
23.5% , up1.2% year-over-year due to lower costs. - Interest Expense of
$23.1M , down48.7% year-over-year due to the Company’s debt modification in July 2023. - SG&A of
$41.8M , up30.5% year-over-year due to profit on the sale of our high-speed scanner business of$6.6M recognized in 2Q 2023. Other SG&A expenses were higher by$9.0 million , due to$10.1 in Q2FY24 write-downs, predominantly driven by a partner contract amendment, which provides for higher pricing and service expansion but resulted in a non-cash write down of the original contract’s straight-line revenue recognition and related contract assets. The SG&A increase was further offset by lower legal and professional fees and employee related costs. - Operating Loss: Operating loss of
$2.4 million , versus an Operating profit of$11.2 million in 2Q 2023, primarily driven by lower revenue and higher SG&A, partially offset by higher gross profits. - Net Loss: Net loss of
$26.9 million ($25.7 million attributable to Exela Technologies, Inc.), an improvement of$4.0 million year-over-year, primarily driven by lower interest expense following debt modification in July 2023, partially offset by higher SG&A. - Adjusted EBITDA(1): Adjusted EBITDA was
$13.7 million compared to$22.5 million in 2Q 2023, a decline of39.0% year-over-year, while up6.7% sequentially. Adjusted EBITDA margin was5.6% , a decrease of 260 basis points from 2Q 2023.
Below is the note referenced above:
(1) Adjusted EBITDA is a non-GAAP measure. A reconciliation of Adjusted EBITDA is attached to this release.
About Exela
Exela Technologies is a business process outsourcing and automation leader, leveraging a global footprint and proprietary technology to help turn the complex into the simple through user friendly software platforms and solutions that enable our customers’ digital transformation. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers worldwide, including many of the world’s largest enterprises and over
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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 capital markets-based activities). Adjusted EBITDA also seeks to remove the effects of integration and related costs to achieve the savings, asset base (such as depreciation and amortization) and other similar non-routine items outside the control of our management team. All of these costs are variable and dependent upon the nature of the actions being implemented and can vary significantly. 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 U.S. Securities and Exchange Commission (“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/
X: @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:
ir@exelatech.com
Exela Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of June 30, 2024 and December 31, 2023 (in thousands of United States dollars except share and per share amounts) | |||||||||
June 30, | December 31, | ||||||||
2024 | 2023 | ||||||||
(Unaudited) | (Audited) | ||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 30,327 | $ | 23,341 | |||||
Restricted cash | 20,933 | 43,812 | |||||||
Accounts receivable, net of allowance for credit losses of | 61,501 | 76,893 | |||||||
Related party receivables and prepaid expenses | 449 | 296 | |||||||
Inventories, net | 13,251 | 11,502 | |||||||
Prepaid expenses and other current assets | 30,140 | 25,364 | |||||||
Total current assets | 156,601 | 181,208 | |||||||
Property, plant and equipment, net of accumulated depreciation of | 58,448 | 58,366 | |||||||
Operating lease right-of-use assets, net | 31,421 | 33,874 | |||||||
Goodwill | 170,354 | 170,452 | |||||||
Intangible assets, net | 148,364 | 164,920 | |||||||
Deferred income tax assets | 2,990 | 3,043 | |||||||
Other noncurrent assets | 19,775 | 24,474 | |||||||
Total assets | $ | 587,953 | $ | 636,337 | |||||
Liabilities and Stockholders' Deficit | |||||||||
Liabilities | |||||||||
Current liabilities | |||||||||
Current portion of long-term debt | $ | 53,723 | $ | 30,029 | |||||
Accounts payable | 68,628 | 61,109 | |||||||
Related party payables | 3,047 | 1,938 | |||||||
Income tax payable | 4,211 | 2,080 | |||||||
Accrued liabilities | 57,611 | 63,699 | |||||||
Accrued compensation and benefits | 71,192 | 65,012 | |||||||
Accrued interest | 55,776 | 52,389 | |||||||
Customer deposits | 27,898 | 23,838 | |||||||
Deferred revenue | 14,018 | 12,099 | |||||||
Obligation for claim payment | 38,913 | 66,988 | |||||||
Current portion of finance lease liabilities | 6,422 | 4,856 | |||||||
Current portion of operating lease liabilities | 9,590 | 10,845 | |||||||
Total current liabilities | 411,029 | 394,882 | |||||||
Long-term debt, net of current maturities | 1,015,252 | 1,030,580 | |||||||
Finance lease liabilities, net of current portion | 8,203 | 5,953 | |||||||
Pension liabilities, net | 12,879 | 13,192 | |||||||
Deferred income tax liabilities | 12,516 | 11,692 | |||||||
Long-term income tax liabilities | 6,511 | 6,359 | |||||||
Operating lease liabilities, net of current portion | 24,676 | 26,703 | |||||||
Other long-term liabilities | 5,621 | 5,811 | |||||||
Total liabilities | 1,496,687 | 1,495,172 | |||||||
Commitments and Contingencies (Note 8) | |||||||||
Stockholders' deficit | |||||||||
Common Stock, par value of | 261 | 261 | |||||||
Preferred stock, | |||||||||
Series A Preferred Stock, 2,778,111 shares issued and outstanding at June 30, 2024 and December 31, 2023 | 1 | 1 | |||||||
Series B Preferred Stock, 3,029,900 shares issued and outstanding at June 30, 2024 and December 31, 2023 | — | — | |||||||
Additional paid in capital | 1,237,687 | 1,236,171 | |||||||
Accumulated deficit | (2,134,670 | ) | (2,084,114 | ) | |||||
Accumulated other comprehensive loss: | |||||||||
Foreign currency translation adjustment | (7,282 | ) | (7,648 | ) | |||||
Unrealized pension actuarial gains (losses), net of tax | 215 | (174 | ) | ||||||
Total accumulated other comprehensive loss | (7,067 | ) | (7,822 | ) | |||||
Total stockholders’ deficit attributable to Exela Technologies, Inc. | (903,788 | ) | (855,503 | ) | |||||
Noncontrolling interest in XBP Europe | (4,946 | ) | (3,332 | ) | |||||
Total stockholders’ deficit | (908,734 | ) | (858,835 | ) | |||||
Total liabilities and stockholders’ deficit | $ | 587,953 | $ | 636,337 |
Exela Technologies, Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the three and six months ended June 30, 2024 and 2023 (in thousands of United States dollars except share and per share amounts) (Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue | $ | 245,653 | $ | 272,938 | $ | 504,464 | $ | 546,558 | ||||||||
Cost of revenue (exclusive of depreciation and amortization) | 187,964 | 212,059 | 389,952 | 428,526 | ||||||||||||
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 41,778 | 32,026 | 82,632 | 76,407 | ||||||||||||
Depreciation and amortization | 14,983 | 14,890 | 28,490 | 31,450 | ||||||||||||
Related party expense | 3,282 | 2,739 | 5,673 | 5,851 | ||||||||||||
Operating profit (loss) | (2,354 | ) | 11,224 | (2,283 | ) | 4,324 | ||||||||||
Other expense (income), net: | ||||||||||||||||
Interest expense, net | 23,129 | 45,092 | 44,217 | 89,272 | ||||||||||||
Debt modification and extinguishment costs (gain), net | — | (6,785 | ) | — | (15,558 | ) | ||||||||||
Sundry (income) expense, net | (204 | ) | 1,500 | 1,677 | 2,248 | |||||||||||
Other income, net | (423 | ) | (232 | ) | (874 | ) | (514 | ) | ||||||||
Loss before income taxes | (24,856 | ) | (28,351 | ) | (47,303 | ) | (71,124 | ) | ||||||||
Income tax expense | (2,049 | ) | (2,535 | ) | (5,175 | ) | (5,198 | ) | ||||||||
Net loss | (26,905 | ) | (30,886 | ) | (52,478 | ) | (76,322 | ) | ||||||||
Net loss attributable to noncontrolling interest in XBP Europe, net of taxes | (1,228 | ) | — | (1,922 | ) | — | ||||||||||
Net loss attributable to Exela Technologies, Inc. | $ | (25,677 | ) | $ | (30,886 | ) | $ | (50,556 | ) | $ | (76,322 | ) | ||||
Cumulative dividends for Series A Preferred Stock | (1,067 | ) | (967 | ) | (2,120 | ) | (1,921 | ) | ||||||||
Cumulative dividends for Series B Preferred Stock | (1,242 | ) | (1,171 | ) | (2,466 | ) | (2,324 | ) | ||||||||
Net loss attributable to common stockholders | $ | (27,986 | ) | $ | (33,024 | ) | $ | (55,142 | ) | $ | (80,567 | ) | ||||
Loss per share: | ||||||||||||||||
Basic and diluted | $ | (4.40 | ) | $ | (5.19 | ) | $ | (8.66 | ) | $ | (14.40 | ) |
Exela Technologies, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2024 and 2023 (in thousands of United States dollars) | |||||||||
Six Months Ended June 30, | |||||||||
2024 | 2023 | ||||||||
Cash flows from operating activities | |||||||||
Net loss | $ | (52,478 | ) | $ | (76,322 | ) | |||
Adjustments to reconcile net loss to cash used in operating activities | |||||||||
Depreciation and amortization | 28,490 | 31,450 | |||||||
Original issue discount, debt premium and debt issuance cost amortization | (20,022 | ) | 16,064 | ||||||
Interest on BR Exar AR Facility | (2,558 | ) | (5,066 | ) | (1) | ||||
Debt modification and extinguishment gain, net | — | (16,964 | ) | ||||||
Credit loss expense | 14,683 | 2,865 | |||||||
Deferred income tax provision | 757 | 776 | |||||||
Share-based compensation expense | 1,560 | 314 | |||||||
Unrealized foreign currency (gain) loss | (131 | ) | 521 | ||||||
Gain on sale of assets | (533 | ) | (5,831 | ) | |||||
Fair value adjustment for private warrants liability of XBP Europe | (40 | ) | — | ||||||
Change in operating assets and liabilities | |||||||||
Accounts receivable | 6,379 | (7,703 | ) | ||||||
Prepaid expenses and other current assets | (6,842 | ) | 6,495 | ||||||
Accounts payable and accrued liabilities | 13,427 | (639 | ) | ||||||
Related party payables | 955 | (403 | ) | ||||||
Additions to outsource contract costs | (573 | ) | (298 | ) | |||||
Net cash used in operating activities | (16,926 | ) | (54,741 | ) | |||||
Cash flows from investing activities | |||||||||
Purchase of property, plant and equipment | (4,033 | ) | (3,357 | ) | |||||
Additions to internally developed software | (1,947 | ) | (1,976 | ) | |||||
Proceeds from sale of assets | 2,893 | 29,811 | |||||||
Net cash (used in) provided by investing activities | (3,087 | ) | 24,478 | ||||||
Cash flows from financing activities | |||||||||
Proceeds from issuance of Common Stock from at the market offerings | — | 69,260 | |||||||
Cash paid for equity issuance costs from at the market offerings | — | (2,232 | ) | ||||||
Payment for fractional shares on reverse stock split | — | (31 | ) | ||||||
Borrowings under factoring arrangement and Securitization Facility | 496 | 62,858 | |||||||
Principal repayment on borrowings under factoring arrangement and Securitization Facility | (511 | ) | (63,577 | ) | |||||
Cash paid for debt issuance costs | (237 | ) | (6,398 | ) | |||||
Principal payments on finance lease obligations | (3,837 | ) | (2,150 | ) | |||||
Borrowings from senior secured term loans and BRCC revolver | — | 9,600 | |||||||
Borrowings from other loans | 20,594 | 4,289 | (1) | ||||||
Cash paid for debt repurchases | — | (11,858 | ) | ||||||
Proceeds from Second Lien Note | — | 31,500 | |||||||
Borrowing under BR Exar AR Facility | 30,614 | 20,000 | (1) | ||||||
Repayments under BR Exar AR Facility | (25,580 | ) | (12,484 | ) | (1) | ||||
Repayment of BRCC term loan | — | (44,775 | ) | ||||||
Principal repayments on senior secured term loans, BRCC revolver and other loans | (17,763 | ) | (15,441 | ) | (1) | ||||
Net cash provided by financing activities | 3,776 | 38,561 | |||||||
Effect of exchange rates on cash, restricted cash and cash equivalents | 344 | 145 | |||||||
Net (decrease) increase in cash, restricted cash and cash equivalents | (15,893 | ) | 8,443 | ||||||
Cash, restricted cash, and cash equivalents | |||||||||
Beginning of period | 67,153 | 45,067 | |||||||
End of period | $ | 51,260 | $ | 53,510 | |||||
Supplemental cash flow data: | |||||||||
Income tax payments, net of refunds received | $ | 1,978 | $ | 2,898 | |||||
Interest paid | 38,694 | 72,608 | |||||||
Noncash investing and financing activities: | |||||||||
Assets acquired through right-of-use arrangements | $ | 7,673 | $ | 405 | |||||
Accrued PIK interest paid through issuance of PIK Notes | 23,342 | — | |||||||
Waiver and consent fee payable added to outstanding balance of Senior Secured Term Loan | 1,000 | — | |||||||
Accrued capital expenditures | 288 | 2,167 |
(1) Exela restated the condensed consolidated statement of cash flows for the six months ended June 30, 2023 by reclassifying borrowing and repayments under BR Exar AR Facility as separate line items which were previously included in borrowings from other loans and principal repayments on senior secured term loans and other loans, respectively under cash flow from financing activities. Interest on BR Exar AR Facility which was previously included in principal repayments on senior secured term loans and other loans under cash flow from financing activities is restated by reclassification as cash flow from operating activities.
Exela Technologies, Inc. and Subsidiaries Schedule 1: Reconciliation of Adjusted EBITDA and constant currency revenues | |||||||||||||||||
Non-GAAP constant currency revenue reconciliation | |||||||||||||||||
($ in millions) | Three months ended June 30, | Year ended (YTD) June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Revenues, as reported (GAAP) | $245.7 | $272.9 | $504.5 | $546.6 | |||||||||||||
Foreign currency exchange impact (1) | 0.3 | 0.4 | (0.4 | ) | 3.6 | ||||||||||||
Revenues, at constant currency (Non-GAAP) | $246.0 | $273.3 | $504.1 | $550.2 |
(1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the three months and six months ended June 30, 2023, to the revenues during the corresponding period in 2024.
Reconciliation of Adjusted EBITDA
($ in millions) | Three months ended June 30, | Year ended (YTD) June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net loss (GAAP) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income tax expense | 2.0 | 2.5 | 5.2 | 5.2 | ||||||||||||
Interest expense, net | 23.1 | 45.1 | 44.2 | 89.3 | ||||||||||||
Depreciation and Amortization | 15.0 | 14.9 | 28.5 | 31.5 | ||||||||||||
EBITDA (Non-GAAP) | $13.3 | $31.6 | $25.4 | $49.6 | ||||||||||||
Transaction and integration costs | 0.0 | 2.9 | 0.2 | 8.1 | ||||||||||||
Non-cash equity compensation | 0.4 | 0.2 | 1.6 | 0.3 | ||||||||||||
Other charges including non-cash | - | 0.3 | - | 0.2 | ||||||||||||
Loss/(gain) on sale of assets | 0.1 | 0.7 | (0.5 | ) | 0.8 | |||||||||||
Loss/(gain) on business disposals | - | (6.5 | ) | - | (6.5 | ) | ||||||||||
Debt modification and extinguishment costs (gain), net | - | (6.8 | ) | - | (15.6 | ) | ||||||||||
Adjusted EBITDA | $13.7 | $22.5 | $26.6 | $37.0 |
Source: Exela Technologies, Inc.
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