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Exela Technologies, Inc. Reports Second Quarter 2024 Results

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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.

Positive
  • 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
Negative
  • 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 10.0% year-over-year to $245.7 million, there are some positive indicators. The gross margin improved by 120 basis points to 23.5%, showing better cost management. Interest expense decreased significantly by 48.7%, which is a positive development for the company's financial health. However, the operating loss of $2.4 million compared to an operating profit last year is concerning. The net loss improved slightly, but Adjusted EBITDA declined by 39.0%, indicating underlying operational challenges. The company's focus on cost management and real estate rationalization is yielding some results, but the declining revenue and EBITDA suggest ongoing market pressures.

Exela's performance reflects broader industry trends. The decline in Information and Transaction Processing Solutions segment (15.2% year-over-year) suggests continued digital transformation pressures. However, the growth in Legal & Loss Prevention Services (6.3% increase) indicates potential opportunities in specialized sectors. The company's ability to add new logos while facing revenue challenges demonstrates some resilience in customer acquisition. The cautiously optimistic outlook for H2 2024 aligns with market expectations of gradual recovery, but investors should watch for concrete signs of revenue stabilization and profitability improvement in upcoming quarters.

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, down 10.0% year-over-year
  • Gross margin of 23.5%, up 120 bps year-over-year
  • Interest expense of $23.1 million, down 48.7% year-over-year
  • SG&A of $41.8 million, up 30.5% 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, down 39.0% 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 of 10.0% compared to $272.9 million in 2Q 2023 (or a decline of 9.3% 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 of 15.2% year-over-year (or a decline of 14.0% 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, a 1.1% decline year-over-year.

    • Legal & Loss Prevention Services generated $25.9 million in revenue, a 6.3% increase year-over-year.

  • Gross margin of 23.5%, up 1.2% year-over-year due to lower costs.

  • Interest Expense of $23.1M, down 48.7% year-over-year due to the Company’s debt modification in July 2023.

  • SG&A of $41.8M, up 30.5% 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 of 39.0% year-over-year, while up 6.7% sequentially. Adjusted EBITDA margin was 5.6%, 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 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 13,100 employees operating in 20 countries, Exela rapidly deploys integrated technology and operations as an end-to-end digital journey partner.

To automatically receive Exela financial news by email, please visit the Exela Investor Relations website at 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 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 $6,813 and $6,628, respectively  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 $216,695 and $213,142, respectively  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 $0.0001 per share; 1,600,000,000 shares authorized; 6,365,363 shares issued and outstanding at June 30, 2024 and 6,365,355 shares issued and outstanding at December 31, 2023  261   261  
Preferred stock, $0.0001 par value per share, 20,000,000 shares authorized at June 30, 2024 and December 31, 2023       
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)  ($26.9)  ($30.9)  ($52.5)  ($76.3)
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.


FAQ

What was Exela Technologies' (XELA) revenue for Q2 2024?

Exela Technologies reported revenue of $245.7 million for Q2 2024, representing a 10.0% decrease compared to the same period last year.

How did Exela's (XELA) gross margin change in Q2 2024?

Exela's gross margin improved by 120 basis points year-over-year, reaching 23.5% in Q2 2024.

What was Exela Technologies' (XELA) net loss for Q2 2024?

Exela Technologies reported a net loss of $26.9 million for Q2 2024, which is an improvement of $4.0 million compared to the same quarter last year.

How did Exela's (XELA) Adjusted EBITDA perform in Q2 2024?

Exela's Adjusted EBITDA for Q2 2024 was $13.7 million, down 39.0% year-over-year, but up 6.7% sequentially.

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