Core Insights - Exela Technologies has formed a strategic alliance with Aidéo Technologies to enhance its healthcare solutions, particularly in medical coding and billing automation [5][6]. - The partnership aims to leverage AI technology to improve efficiency and accuracy in the medical billing landscape, benefiting both Exela's and Aidéo's customer bases [5][6]. Company Overview - Exela Technologies is a leader in business process automation (BPA), serving over 4,000 customers across 50 countries, including more than 60% of the Fortune 100 [3]. - The company utilizes a range of foundational technologies, including information management and workflow automation, to provide digital transformation solutions [3]. - Exela employs approximately 13,600 staff and operates in 20 countries, focusing on enhancing quality, productivity, and user experience [3]. Aidéo Technologies Overview - Aidéo Technologies specializes in AI-powered medical coding solutions, offering products that improve coding efficiency and accuracy [3]. - The Gemini Solution Suite from Aidéo is designed to empower medical coders through workflow efficiencies and AI integration [3]. Strategic Partnership Benefits - The collaboration between Exela and Aidéo is expected to create a win-win situation for healthcare providers by reducing costs associated with claims processing and payment collection [2][5]. - The integration of generative AI into Exela's offerings is anticipated to complement existing AI-driven initiatives, enhancing the overall value proposition for customers [5][6].

Exela Technologies (NASDAQ:XELA) stock is on the move Monday after the digital business process services company announced plans for a spinoff of its business process automation (BPA) business. Exela Technologies' board of directors has authorized the spinoff of its BPA business to shareholders of XELA stock. This has it planning to distribute shares of this new company to XELA investors on record as of sometime in Q3 or Q4. Investors won't have to take any action to get the shares in the Exela Technologies ...

Core Viewpoint - Exela Technologies, Inc. is considering a spin-off of its wholly-owned subsidiary, Exela Technologies BPA, LLC, to enhance shareholder value [1][10]. Company Overview - Exela Technologies is a leader in business process automation, providing digital transformation solutions to over 4,000 customers across 50 countries, including more than 60% of the Fortune 100 [3]. - The company employs approximately 13,600 individuals and operates in 20 countries, utilizing foundational technologies in information management, workflow automation, and integrated communications [3]. Spin-off Details - The potential spin-off is being evaluated for its qualification as a tax-free distribution under U.S. federal income tax laws [2]. - If the spin-off occurs, Exela stockholders will receive shares of the newly formed holding company owning the BPA Business, while retaining their current shares in Exela [10]. - No action or payment will be required from Exela stockholders to receive shares in the spin-off [6]. - A registration statement with detailed information regarding the spin-off will be provided to stockholders prior to the distribution date [6][11].

Exela Technologies, Inc. (NASDAQ:XELA) Q1 2024 Earnings Call Transcript May 28, 2024 4:30 PM ET Company Participants Vincent Kondaveeti - Head of IR Matt Brown - Interim CFO Operator Good afternoon, and welcome to the Exela Technologies First Quarter 2024 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would n ...

Financial Performance - Revenue was $259 million, a year-over-year decrease of 5.4%, but a sequential decrease of 2.1%[6] - Gross margin was 22.0%, a year-over-year increase of 1.1%[6] - Adjusted EBITDA was $12.9 million, a year-over-year increase of 11.3%, and a sequential increase of 42.4%[6] - Net loss was $(25.6) million, a year-over-year increase of $19.9 million, but a sequential decrease of $(0.6) million[6] - Interest expense was $21.1 million, a year-over-year decrease of 52.3%, and a sequential decrease of 17.9%[6] Segment Performance - Healthcare Solutions revenue was $64.9 million, a year-over-year increase of 2.9%, with a gross margin of 28.8%, a year-over-year increase of 3.0%[9] - Information and Transaction Processing Solutions revenue was $176.1 million, a year-over-year increase of 9.1%, with a gross margin of 18.0%, a year-over-year decrease of 0.2%[9] - Legal and Loss Prevention Services revenue was $17.8 million, a year-over-year increase of 5.6%, with a gross margin of 35.9%, a year-over-year increase of 2.4%[9] Key Highlights - New ACV (Annual Contract Value) won was approximately $27.3 million[8] - ACV renewed was approximately $43.9 million with a 96% renewal rate[8] - The company achieved over $25 million in process savings[8] Other Updates - SG&A expenses were $40.9 million, a year-over-year decrease of 7.9%, but a sequential increase of 5.1%[6] - The company is undergoing facility consolidation, with 104,000 SqFt completed in Q1, part of a 340,000 SqFt plan[10] - There was a $27 million ACV reduction due to a customer exit[11]

Revenue Performance - For the three months ended March 31, 2024, total revenue decreased by $14.8 million, or 5.4%, to $258.8 million from $273.6 million for the same period in 2023[186]. - ITPS segment revenue decreased by $17.6 million, or 9.1%, primarily due to exiting contracts and the sale of the high-speed scanner business, which resulted in $3.2 million lower revenue[186]. - HS segment revenue increased by $1.8 million, or 2.9%, driven by higher volumes from new and existing healthcare customers[188]. - LLPS segment revenue increased by $1.0 million, or 5.6%, due to an increase in project-based engagements in legal claims administration services[189]. Cost and Expenses - Cost of revenues decreased by $14.5 million, or 6.7%, to $201.99 million for the three months ended March 31, 2024[185]. - Selling, general and administrative expenses decreased by $3.5 million, or 7.95%, to $40.85 million for the same period[185]. - Cost of revenue decreased by $14.5 million, or 6.7%, to $202.0 million for the three months ended March 31, 2024, compared to the same period in 2023[190]. - Cost of revenue as a percentage of revenue improved to 78.0% for the three months ended March 31, 2024, from 79.1% in the prior year[191]. - Total depreciation and amortization expenses decreased by $3.1 million to $13.5 million for the three months ended March 31, 2024[193]. - Selling, general and administrative expenses (SG&A) decreased by $3.5 million, or 7.9%, to $40.9 million for the three months ended March 31, 2024[192]. Net Loss and Financial Performance - Net loss for the three months ended March 31, 2024, was $25.57 million, a decrease of $19.86 million, or 43.72%, compared to a net loss of $45.44 million in the prior year[185]. - Net loss improved to $25.6 million for the three months ended March 31, 2024, compared to a net loss of $45.4 million for the same period in 2023[207]. - Adjusted EBITDA for the three months ended March 31, 2024, was $12.9 million, compared to $14.5 million in the prior year[207]. Cash Flow and Liquidity - Cash, restricted cash, and cash equivalents totaled $34.0 million as of March 31, 2024, with a working capital deficit of $214.3 million[209]. - The Company reported a net cash used in operating activities of $29.1 million for the three months ended March 31, 2024, a decrease of $26.2 million compared to $55.3 million in the same period of 2023[220]. - The Company had a net increase in cash, restricted cash, and cash equivalents of $(33.1) million for the three months ended March 31, 2024, compared to an increase of $5.8 million in the same period of 2023[220]. Debt and Financing - The Company had a total of $980.0 million in outstanding principal amount of 11.5% First-Priority Senior Secured Notes scheduled to mature on July 15, 2026[226]. - As of March 31, 2024, $24.0 million of the July 2026 Notes remained outstanding after periodic repurchases[230]. - The Company issued approximately $767.8 million aggregate principal amount of the April 2026 Notes, which includes notes issued in exchange for existing July 2026 Notes[231]. - Cash used in financing activities for the three months ended March 31, 2024, was $3.5 million, primarily due to $14.9 million of proceeds from borrowings under the BR Exar AR Facility[223]. - The Company plans to pursue further reduction in debt and the sale of non-core businesses to enhance liquidity and support profitable growth[219]. - The Company recorded a premium of $142.3 million on the notes exchange, which will be reduced as contractual interest payments are made on the April 2026 Notes[228]. - As of March 31, 2024, there were borrowings of $40.5 million outstanding under the Senior Secured Term Loan, which is to be repaid in ten equal quarterly installments of $0.5 million commencing April 1, 2024[244]. - The Company entered into a financing agreement for a $40.0 million Senior Secured Term Loan on July 11, 2023, using proceeds to repay existing debt[241]. - The BR Exar AR Facility provided the Company with $14.7 million, with an outstanding balance of $4.2 million as of March 31, 2024[250]. Business Developments - The company completed the sale of its high-speed scanner business for approximately $30.1 million on June 8, 2023, resulting in a pre-tax gain of $7.2 million[174]. - The merger of the European business with CF Acquisition Corp. VIII was completed on November 29, 2023, and the new entity began trading on Nasdaq under the ticker symbol "XBP" on November 30, 2023[173]. Internal Controls and Compliance - The Company maintains disclosure controls and procedures designed to provide reasonable assurance for timely financial reporting[257]. - The Executive Chairman and Interim Chief Financial Officer concluded that the disclosure controls and procedures were not effective due to material weaknesses in internal control over financial reporting[258]. - Despite the material weaknesses, the condensed consolidated financial statements present fairly the financial position and results of operations in conformity with U.S. GAAP[259]. - The Company continues to implement a remediation plan to address the identified material weaknesses[260]. - There have been no changes in internal control over financial reporting that materially affected the reporting during the quarter ended March 31, 2024[261]. Market Risk - There have been no material changes to the Company's market risk during the three months ended March 31, 2024[255].

Exhibit 99.1 Exela Technologies Holdings, Inc. Reports Full Year 2023 Results Full Year Highlights IRVING, TX April 4, 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 full year ended December 31, 2023. "2023 was a challenging year with focus on stabilizing revenues and recovering from the effects of our network outage in 2022. We made significant improvement t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36788 EXELA TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 47-1347291 (State o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36788 EXELA TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in its Charter) (State of or other Jurisdictio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36788 EXELA TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 47-1347291 (State of or ot ...