Exela Technologies Inc - XELA STOCK NEWS

Exela Technologies has announced a share buyback program for up to 10 million shares of its common stock, authorized by the Board of Directors on August 10, 2022. This program aims to enhance shareholder value and will allow purchases through various methods including open market transactions and block trades. The buyback is not obligatory and may be altered or terminated by the Board at any time, with a duration of 24 months. The decision to repurchase shares will depend on market conditions and other investment considerations.

Exela Technologies reported Q2 2022 revenue of $266.8 million, marking a 9% decline year-over-year. The company experienced a net loss of $79.2 million, significantly higher than $19.4 million in Q2 2021. Despite these setbacks, Exela secured $230 million in Total Contract Value (TCV), a 294% increase from Q1 2022, and saw remarkable growth in its SMB segment with a 343% rise in Digital Mailroom customers. The company improved liquidity with $72 million and reduced total debt by $118 million compared to Q1 2022.

Exela Technologies, Inc. (NASDAQ:XELA) will host a conference call to discuss its second quarter 2022 results on August 9, 2022, at 4:30 p.m. ET. The call will feature Executive Chairman Par Chadha and CFO Shrikant Sortur, who will review the financial outcomes followed by a Q&A session. A press release with the results will precede the call. Investors can access the live webcast on Exela’s Investor Relations website and find details for call-in participation. A replay will be available shortly after the call until August 16, 2022.

Exela Technologies has updated its Capital Deployment Strategy, establishing XCV-STS, LLC to manage assets aimed at enhancing shareholder value. The company purchased $70 million in 2026 Senior Secured Notes at a discount using equity-raise funds, marking the first asset to STS. Interest from these notes and proceeds from planned asset sales will be utilized to return value to shareholders. While Exela is optimistic about executing the strategy, it acknowledges potential uncertainties regarding necessary approvals and successful implementations.

Exela Technologies announced a new 5-year contract with a major European financial services firm for its XBP® platform, valued at approximately $6 million. This contract represents a significant opportunity within the company's $874.2 million ITPS accounting segment, indicating strong market interest in Exela's bill and payment processing solutions. The Digital Mail Room module will be deployed to streamline critical banking documents and transactions, enhancing digital transformation for clients across multiple sectors.

Exela Technologies, Inc. (NASDAQ: XELA) has announced a 1-for-20 reverse stock split, effective July 25, 2022, at 5:00 p.m. ET. This decision aims to enhance the marketability and liquidity of its shares and ensure compliance with Nasdaq listing requirements. Post-split, approximately 64.8 million shares will be issued and outstanding, trading on a split-adjusted basis starting July 26, 2022. Exela Technologies is recognized as a leader in business process automation and serves over 4,000 customers globally, including more than 60% of the Fortune 100.

Exela Technologies, Inc. (NASDAQ: XELA, XELAP) announced receipt of a preliminary, non-binding acquisition proposal for a business unit generating approximately $200 million in revenue. The Company is in discussions with various parties regarding additional offers. This move aligns with Exela's strategy to maximize shareholder value by potentially divesting standalone assets, reducing debt, and lowering annual interest expenses. Exela's Board of Directors will review the proposal with its advisors, but no assurance of a finalized agreement or transaction is guaranteed.

Exela Technologies (NASDAQ: XELA, XELAP) has promoted Suresh Yannamani to Chief Executive Officer of its subsidiary, Exela Technologies BPA, LLC, effective July 12, 2022. This strategic move is part of Exela's ongoing plans to enhance business leadership and drive profitable growth across various markets. Yannamani, who has extensive experience within Exela's predecessor companies, will focus on leveraging data science and technology solutions in healthcare and billing operations, aiming to create value for stakeholders.

Exela Technologies has been recognized by Gartner® as a Niche Player in the Magic Quadrant for Finance and Accounting Business Process Outsourcing, as announced on June 30, 2022. This recognition highlights Exela's F&A BPO services, reflecting its competence in executing innovative financial solutions backed by deep business analytics. The company serves over 3,400 global clients across numerous industries. Exela's offerings utilize big data and automation to transform the financial services sector, aiming for enhanced efficiency and reduced human intervention.