Exela Technologies, Inc. 6.00% Series B Cumulative Convertible Perpetual Preferred Stock - XELAP STOCK NEWS

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) has been recognized as one of America's Greatest Workplaces for 2024 by Newsweek and Plant-A Insights Group. The company achieved perfect 5-star ratings in both Diversity and Mental Wellbeing categories, highlighting its commitment to creating an inclusive and supportive work environment.

Carlos Mallen, Senior Vice President of Human Resources for the Americas and Europe, emphasized that this recognition affirms Exela's dedication to fostering a workplace where employees feel valued, respected, and empowered. The company prioritizes diversity, equity, inclusion, and mental well-being to ensure all employees can thrive professionally and maintain a healthy work-life balance.

This achievement underscores Exela's ongoing efforts to create a supportive environment that promotes growth and a sense of belonging among its workforce. For more information about career opportunities at Exela, interested individuals can visit the company's careers page.

Exela Technologies (NASDAQ: XELA) has announced a strategic alliance with AIDEO Technologies, a leading AI platform for autonomous coding in healthcare. This partnership aims to revolutionize medical billing by enhancing efficiency and accuracy. Exela's PCH Global, a healthcare platform, will expand its capabilities and customer base by integrating AIDEO's AI technology.

The collaboration aligns with Exela's initiative to incorporate generative AI across its products and services. Suresh Yannamani, CEO of Exela Technologies BPA, expressed excitement about bringing this innovative AI technology to their customers and PCH Global ecosystem. Tim Jones, Chief Revenue Officer of Aidéo Technologies, highlighted the opportunity to integrate their capabilities with PCH Global as a win for providers seeking to lower costs of processing claims and obtaining payment.

Exela Technologies has announced plans to spin off its wholly-owned subsidiary, Exela Technologies BPA, to enhance shareholder value. The proposed spin-off will allow Exela stockholders to receive a pro-rata share of a new holding company that owns the business process automation (BPA) business while retaining their shares in Exela, which includes over 70% ownership in XBP Europe Holdings and the North American onsite services business.

The distribution is planned for the third or fourth quarter of 2024, pending Board approval and other customary conditions. A detailed registration statement will be provided before the distribution date. Exela is also evaluating if the spin-off qualifies as tax-free under U.S. federal income tax laws.

Further updates will be available through public filings with the SEC. Legal counsel for the spin-off is Loeb & Loeb LLP.

Exela Technologies (NASDAQ: XELA, XELAP), a leader in business process automation, has secured a $35 million contract for security breach remediation. This short-term project started in June 2024 and is expected to conclude next month, significantly enhancing Exela's ITPS segment, which had revenue of $732 million in 2023. Exela, operating in 20 countries, provides cybersecurity services under the brands Reaktr.ai and Rust Consulting. CEO Suresh Yannamani emphasized Exela's capability to provide comprehensive cybersecurity, compliance, and incident response solutions. The announcement highlights Exela's strategic ability to scale quickly and meet critical client needs.

Exela Technologies reminds stockholders to vote ahead of their annual meeting on June 13, 2024, at 10:00 AM CT, held online. The Board recommends voting 'FOR' each director nominee, future advisory votes on executive compensation every '1 Year,' and all other proposals. Stockholders are urged to vote their proxy by June 12, 2024, before 11:59 PM ET. Key items up for approval include electing Class A and C directors, executive compensation for 2023, the 2024 stock incentive plan, amendments to Series B Preferred Stock, and the appointment of auditors for 2024. The proxy statement is available on the SEC website, and stockholders are encouraged to read it before voting. For assistance, stockholders can contact Advantage Proxy.

Exela Technologies reminds its stockholders to vote ahead of the upcoming annual meeting on June 13, 2024, at 10:00 AM CT. The meeting, which will be held online, seeks approval for several key proposals. These include the election of directors, executive compensation, the adoption of a 2024 stock incentive plan, and amendments to the Series B Certificate of Designations. Stockholders are encouraged to vote by proxy. Detailed instructions and relevant documents are available on the SEC and Exela’s investor relations websites.

Exela Technologies (NASDAQ:XELA, XELAP) will host a conference call on May 28, 2024, at 4:30 p.m. ET to discuss its first-quarter 2024 financial results. The call will feature Par Chadha, Executive Chairman, and Matt Brown, Interim CFO. The webcast will be accessible via Exela's Investor Relations website, with a replay available until June 4, 2024. Interested parties can find more updates on Exela's financial news by subscribing to email alerts on their Investor Relations site.

Exela Technologies (NASDAQ: XELA) reported its Q1 2024 financial results, highlighting a revenue decline of 5.4% year-over-year to $258.8 million. The gross margin improved by 1.1% to 22.0%. The company reported a significant reduction in interest expense by 52.3% to $21.1 million.

Operating profit was up, reaching $0.1 million compared to a loss of $6.9 million in the previous year. However, the net loss stood at $25.6 million, which showed an improvement of $19.9 million year-over-year. Adjusted EBITDA dropped by 11.1% to $12.9 million but showed a sequential increase of 41.7%.

Segment-wise, Information and Transaction Processing Solutions generated $176.1 million, down 9.1% year-over-year. Healthcare Solutions saw a revenue increase of 2.9% to $64.9 million, and Legal and Loss Prevention Services revenue rose by 5.6% to $17.8 million.