Exela Technologies, Inc. (NASDAQ:XELA) Q2 2023 Earnings Call August 14, 2023 8:30 AM ET Company Participants Vincent Kondaveeti - Vice President of Corporate Development Par Chadha - Executive Chairman Shrikant Sortur - Chief Financial Officer Conference Call Participants Zach Cummins - B. Riley Operator Good morning and welcome to the Exela Technologies Second Quarter 2023 financial results conference call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is bein ...

Preliminary Second Quarter 2023 Results August 14, 2023 Par Chadha, Executive Chairman Shrikant Sortur, Chief Financial Officer © 2023 EXELA TECHNOLOGIES, INC Notices Financial Disclosure Advisory: The preliminary unaudited financial results included in this presentation are based on information available as of August 14, 2023 and management's review of operations and financial results for the second quarter 2023. Actual results may be materially different from these preliminary financial results. They rema ...

Exela Technologies, Inc. (NASDAQ:XELA) Q1 2023 Earnings Conference Call May 11, 2023 9:00 AM ET Company Participants Vince Kondaveeti - Investor Relations Par Chadha - Executive Chairman Shrikant Sortur - Chief Financial Officer Conference Call Participants Zach Cummins - B. Riley Securities Operator Good morning and welcome to the Exela Technologies Inc. First Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation the ...

First Quarter 2023 Results May 11, 2023 Par Chadha, Executive Chairman Shrikant Sortur, Chief Financial Officer © 2023 EXELA TECHNOLOGIES, INC Notices Forward-Looking Statements: Certain statements included in this presentation 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", "antici ...

For the quarterly period ended March 31, 2023 Or 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 Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 2701 E. Grauwyler Rd. (Address of Principal Executive Offices) Irving, TX 75061 Commission file number: 001-36788 EXELA TECHNOLOGIES, INC. (Exact Na ...

Financial Performance & Highlights - 2022 revenue reached $1.077 billion, a decrease of approximately 4% year-over-year when excluding the impacts of inflation, tight job market, business mix, rising dollar, and one-time events[13, 29] - Adjusted EBITDA for 2022 was $139.9 million, a decrease of $33.4 million compared to 2021[13, 29] - In Q4 2022, revenue was $267 million, a decrease of 9.3% year-over-year[31] - Q4 2022 Adjusted EBITDA reached $35.5 million[31] - Gross profits for 2022 were $199.9 million, a decrease of $77.9 million compared to 2021[29] Debt Reduction & Strategic Actions - $296 million in aggregate debt was extinguished, including $162.9 million due in 2022 and $133.3 million due in 2023[16, 40] - Net debt reduction in 2022 amounted to $141 million[16] - The company is targeting debt reduction in the range of $250 million to $500 million[18] - Plans include an exchange offer to purchase approximately $250 million of debt issued by Intermediate, including debt maturing in 2023[18, 42] Growth & Future Objectives - Won $457 million in new Total Contract Value (TCV) and renewed TCV of $287.7 million in 2022[13] - Digital Asset platforms DMR SMB customers grew 178% and DrySign® users grew 481% year-over-year in Q4 2022[13] - The company aims to grow revenue in low single digits and improve Adjusted EBITDA by 200 bps in 2023[42]

Financial Data and Key Metrics Changes - The company's revenue for 2022 was $1.08 billion, representing a 7.7% year-over-year decline, or approximately 4% decline when excluding one-time events and currency impacts [23][11] - Adjusted EBITDA for the year was $139.9 million, down $33.4 million from 2021, with expectations for improvement in 2023 due to cost-saving measures [25][12] - Q4 2022 revenue was $267 million, down 9.3% year-over-year but up 1.1% sequentially [24] Business Line Data and Key Metrics Changes - The Healthcare Solutions segment grew by 10.9% for the year, with Q4 growth of 15.5% year-over-year [13][26] - ITPS segment revenue decreased by 12.9% for the year and 14.7% in Q4, impacted by lower volumes and a network outage [13][28] - Gross margins for the Healthcare Solutions segment improved to 55.1% in Q4, while ITPS gross margins decreased by approximately 35% year-over-year [27][28] Market Data and Key Metrics Changes - The company has a stable revenue base with high recurring revenue and a large pipeline, indicating positive market positioning [23] - The adoption of a work-from-anywhere model has led to operational improvements and a reduction in headcount to 16,000 [7] Company Strategy and Development Direction - The company aims to reduce debt by $250 million to $500 million in 2023, with ongoing discussions with lenders to achieve this goal [16][41] - Investments in growth areas such as data science, technology, and cloud operations are expected to improve EBITDA over time [34] - The strategic focus is on operational improvements and maintaining a sustainable balance sheet [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2022 as a challenging year but emphasized the importance of operational and balance sheet improvements [5][12] - There is optimism for 2023, with expectations for revenue and adjusted EBITDA growth barring unforeseen events [19][36] Other Important Information - The company reduced its debt by $141 million in 2022, with a total of $296 million in debt extinguished or modified [15][35] - A non-cash goodwill impairment charge of $142 million in Q4 significantly impacted net loss for the year [30] Q&A Session Summary Question: Plans for debt reduction - Management discussed pathways to achieve the targeted debt reduction, including support from consenting lenders and potential asset sales [38][41] Question: Operational performance and cost-saving initiatives - Management highlighted improvements in gross margins for the ITPS segment and emphasized the focus on automation and cloud infrastructure for cost savings [44][46]

Financial Performance - The company reported revenue of $1.08 billion for the fiscal year ended December 31, 2022, primarily from business and transaction processing services [393]. - Exela Technologies reported a revenue of $1,077,157,000 for the year ended December 31, 2022, a decrease of 7.6% from $1,166,606,000 in 2021 [417]. - The company incurred a net loss of $415,581,000 in 2022, compared to a net loss of $142,390,000 in 2021, representing a significant increase in losses [417]. - The net loss for the year ended December 31, 2022, was $415.581 million, compared to a net loss of $142.390 million in 2021 [432]. - The net loss attributable to common stockholders was $422.8 million in 2022, compared to $144.0 million in 2021 and $179.8 million in 2020 [526]. Assets and Liabilities - Total assets decreased from $1,037,023,000 in 2021 to $721,912,000 in 2022, a decline of approximately 30.3% [414]. - Current liabilities decreased from $591,840,000 in 2021 to $510,045,000 in 2022, a reduction of about 13.8% [414]. - The company’s total liabilities decreased from $1,703,795,000 in 2021 to $1,529,501,000 in 2022, a decrease of approximately 10.2% [414]. - The company had $1,169.1 million of debt outstanding as of December 31, 2022, with a weighted average interest rate of 11.2% [377]. - The total cash and cash equivalents at the end of 2022 were $45.067 million, a decrease from $48.060 million at the end of 2021 [432]. Goodwill and Intangible Assets - Goodwill balance was $186.8 million as of December 31, 2022, with impairment charges totaling $171.2 million recorded for the Information and Transaction Processing (ITPS) reporting unit [396]. - The company recorded an impairment charge of $171.2 million for goodwill in 2022, primarily related to ITPS, due to a decline in market capitalization and future cash flow projections [561]. - The total goodwill balance decreased from $358.3 million at December 31, 2021, to $186.8 million at December 31, 2022, after accounting for impairments [565]. - The company has accumulated impairment relating to ITPS of $487.7 million as of December 31, 2022 [565]. - Intangible assets, net as of December 31, 2022, amounted to $200.982 million, with gross carrying amount of $701.065 million [556]. Cash Flow and Financing Activities - Cash used in operating activities for 2022 was $87.162 million, an improvement from $111.534 million in 2021 [432]. - Cash provided by financing activities in 2022 was $106.639 million, compared to $98.651 million in 2021 [432]. - The company issued common stock from at-the-market offerings, generating $276.337 million in 2022 [432]. - The Company raised proceeds of $347.5 million from the sale of equity and debt during the year ended December 31, 2022 [446]. - The Company executed a $150.0 million financing with PNC Bank, generating annual interest rate savings of approximately $5.0 million [446]. Operational Challenges - The company has a history of net losses and significant cash payments for interest on long-term debt, raising substantial doubt about its ability to continue as a going concern [388]. - The Company continues to face impacts from global supply chain challenges and staff availability at key operating centers [449]. - The company’s internal control over financial reporting was found to be ineffective as of December 31, 2022 [387]. - The Company recorded a liability for settlement funds of $44.4 million and $46.9 million at December 31, 2022, and 2021, respectively [462]. - The Company has not recorded a corresponding receivable for expected insurance recovery related to customer claims from the cyber incident [454]. Revenue Recognition and Deferred Revenue - The Company recognized revenue of $1,077.2 million for the year ended December 31, 2022, a decrease from $1,166.6 million in 2021 [494]. - Deferred revenues increased slightly to $17.6 million as of December 31, 2022, compared to $17.5 million in 2021 [495]. - The Company recognized $16.5 million in revenue during the year ended December 31, 2022, that had been deferred as of December 31, 2021 [496]. Expenses and Cost Management - The company incurred impairment of goodwill and other intangible assets amounting to $171.182 million in 2022 [432]. - Expenses associated with a network security incident totaled $3.7 million, net of insurance recoveries of $6.2 million [452]. - The Company identified estimated cost savings in the range of $65-$75 million for fiscal year 2023 [447]. - The Company’s consolidated rental expense for all operating leases was $48.0 million for the year ended December 31, 2022, down from $51.8 million in 2021 [551]. - Amortization of costs incurred to obtain and fulfill contracts was $1.1 million, $1.5 million, and $2.4 million for the years 2022, 2021, and 2020, respectively [497].

Exela Technologies, Inc. (NASDAQ:XELA) Q3 2022 Earnings Conference Call November 14, 2022 5:00 PM ET Company Participants Vincent Kondaveeti - VP, Corporate Development Parvinder Chadha - Executive Chairman Shrikant Sortur - CFO Conference Call Participants Zachary Cummins - B. Riley Securities Randal Klein - Avenue Capital Group Operator Good day, and welcome to the Exela Technologies Third Quarter 2022 Financial Results Conference Call. [Operator Instructions]. Please note this event is being recorded. I ...

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, 2022 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 ...