 |
| Exela Technologies Holdings, Inc. Reports Full Year 2023 Results |
|
| 8:01a ET April 4 '24 GlobeNewswire |
|
| Exela Technologies Holdings, Inc. Reports Full Year 2023 ResultsGlobeNewswireApril 04, 20242023 revenue of $1,064.1 million, down 1.2% year-over-yearGross margin of 21.7% in 2023 vs 18.5% in 2022Operating profit of $8.1 million, up $236.8 million due to increased gross margin, lower SG&A and no impairments in 2023 versus 2022Net loss of $124.4 million ($125.1 attributable to Exela Technologies Inc), an improvement of $291.4 million year-over-yearCertain of the Company's subsidiaries issued approximately $764.8 million of aggregate principal amount of new notes in exchange for $956.0 million of aggregate principal amount of existing 2026 notes in 2023 IRVING, Texas, April 04, 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 to our balance sheet, eliminating current liabilities, and reducing our overall debt and interest expense under a difficult macro environment and uncertain outlook. We maintained our focus on cost management and leveraging automation, and have 2023 initiatives in process continuing into 2024 to achieve our margin improvement goals. Late in the year, we made investments to position the Company for future growth by entering into cyber security, data modernization, cloud and Infrastructure-as-a-Service, in addition to previously announced investments in FAO and data science. We completed the public listing on Nasdaq of XBP Europe, our European business. We also made significant investments in people. We improved gross margins and operating income, however we did not accomplish all of our goals in 2023 and have room to grow," said Par Chadha, Executive Chairman of Exela Technologies. Full Year Highlights Revenue: Revenue for 2023 was $1,064.1 million, a decline of 1.2% compared to $1,077.2 million in 2022 Revenue for the Information and Transaction Processing Solutions segment was $732.3 million, a decline of 4.3% year-over-yearHealthcare Solutions generated $251.4 million, a 5.0% increase year-over-yearLegal and Loss Prevention Services generated $80.4 million in revenue, a 10.6% increase year-over-yearOperating profit: Operating profit in 2023 was $8.0 million, up $236.8 million compared with an operating loss of $228.8 million in 2022. Higher gross margin from technology advancements, lower SG&A with reductions in professional services and facility expenses, and a lack of goodwill impairment contributed to the profit improvement on a year-over-year basis. Net Loss: Net loss for 2023 was $124.4 million ($125.1 attributable to Exela Technologies Inc), an improvement of $291.4 million compared with a net loss of $415.6 million in 2022. The year over year decrease was materially driven by improvements in operating profit, lower interest expense and a gain on debt modification and extinguishment costs relative 2022.Adjusted EBITDA(1): Adjusted EBITDA for 2023 was $60.0 million compared to $56.8 million in 2022. Adjusted EBITDA margin for 2023 was 5.6%, an increase of 30 basis points from 2022.Capital Expenditures: Capital expenditures for 2023 were 1.1% of revenue compared to 2% of revenue in 2022 as we continue to migrate from capital intensive infrastructure to cloud computing, by making investments in our platforms and operations.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 ExelaExela Technologies is a business process automation (BPA) leader, leveraging a global footprint and proprietary technology to provide digital transformation solutions enhancing quality, productivity, and end-user experience. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers throughout 50 countries, including over 60% of the Fortune(R) 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 14,100 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 e-mail, please visit the Exela Investor Relations website, http://investors.exelatech.com/, and subscribe to E-mail Alerts. Forward-Looking StatementsCertain 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: @ExelaTechLinkedIn: /exela-technologiesFacebook: @exelatechnologiesInstagram: @exelatechnologiesThe 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:Vincent Kondaveeti E: vincent.kondaveeti@exelatech.com Exela Technologies, Inc. and SubsidiariesConsolidated Balance Sheets As of December 31, 2023 and 2022(in thousands of United States dollars except share and per share amounts)December 31, 20232022AssetsCurrent assetsCash and cash equivalents$23,341$15,073Restricted cash43,81229,994Accounts receivable, net of allowance for credit losses of $6,628 and $6,402, respectively76,893101,616Related party receivables and prepaid expenses296759Inventories, net11,50216,848Prepaid expenses and other current assets25,36426,206Total current assets 181,208 190,496Property, plant and equipment, net of accumulated depreciation of $213,142 and $207,520, respectively58,36671,694Operating lease right-of-use assets, net33,87440,734Goodwill170,452186,802Intangible assets, net164,920200,982Deferred income tax assets3,0431,483Other noncurrent assets24,47429,721Total assets$ 636,337$ 721,912Liabilities and Stockholders' DeficitLiabilitiesCurrent liabilitiesCurrent portion of long-term debt$30,029$154,802Accounts payable61,10979,249Related party payables1,9382,473Income tax payable2,0802,045Accrued liabilities63,69961,340Accrued compensation and benefits65,01254,143Accrued interest52,38960,901Customer deposits23,83816,955Deferred revenue12,09916,405Obligation for claim payment66,98844,380Current portion of finance lease liabilities4,8565,485Current portion of operating lease liabilities10,84511,867Total current liabilities 394,882 510,045Long-term debt, net of current maturities1,030,580942,035Finance lease liabilities, net of current portion5,9539,448Pension liabilities, net13,19216,917Deferred income tax liabilities11,69211,180Long-term income tax liabilities6,3592,742Operating lease liabilities, net of current portion26,70331,030Other long-term liabilities5,8116,104Total liabilities 1,495,172 1,529,501Commitments and Contingencies (Note 14)Stockholders' deficitCommon Stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 6,365,353 shares issued and outstanding at December 31, 2023 and 1,393,889 shares issued and 1,393,276 shares outstanding at December 31, 2022261162Preferred stock, $0.0001 par value per share, 20,000,000 shares authorized at December 31, 2023 and December 31, 2022, respectivelySeries A Preferred Stock, 2,778,111 shares issued and outstanding at December 31, 2023 and December 31, 202211Series B Preferred Stock, 3,029,900 shares issued and outstanding at December 31, 2023 and 0 shares issued and outstanding at December 31, 2022----Additional paid in capital1,179,0981,102,619Less: Common Stock held in treasury, at cost; 0 shares at December 31, 2023 and 612 shares at December 31, 2022--(10,949)Equity-based compensation57,07356,958Accumulated deficit(2,084,114)(1,948,009)Accumulated other comprehensive loss:Foreign currency translation adjustment(7,648)(4,788)Unrealized pension actuarial losses, net of tax(174)(3,583)Total accumulated other comprehensive loss(7,822)(8,371)Total stockholders' deficit attributable to Exela Technologies, Inc. (855,503) (807,589)Noncontrolling interest in XBP Europe(3,332)--Total stockholders' deficit (858,835) (807,589)Total liabilities and stockholders' deficit$ 636,337$ 721,912The accompanying notes are an integral part of these consolidated financial statements. Exela Technologies, Inc. and SubsidiariesConsolidated Statements of Operations For the years ended December 31, 2023 and 2022(in thousands of United States dollars except share and per share amounts)Years ended December 31, 20232022Revenue$1,064,124$1,077,157Cost of revenue (exclusive of depreciation and amortization)833,422877,474Selling, general and administrative expenses (exclusive of depreciation and amortization)150,672176,524Depreciation and amortization60,53571,831Impairment of goodwill and other intangible assets--171,182Related party expense11,4448,923Operating profit (loss) 8,051 (228,777)Other expense (income), net:Interest expense, net139,656164,870Debt modification and extinguishment costs (gain), net(16,129)4,522Sundry expense (income), net973(957)Other expense (income), net(884)14,170Loss before income taxes (115,565) (411,382)Income tax expense(8,868)(4,199)Net loss (124,433) (415,581)Net profit (loss) attributable to noncontrolling interest in XBP Europe, net of taxes723--Net loss attributable to Exela Technologies, Inc.$ (125,156)$ (415,581)Cumulative dividends for Series A Preferred Stock(3,961)(3,588)Cumulative dividends for Series B Preferred Stock(4,718)(3,665)Net loss attributable to common stockholders$ (133,835)$ (422,834)Loss per share:Basic and diluted$(22.37)$(1,372.98)The accompanying notes are an integral part of these consolidated financial statements. Exela Technologies, Inc. and SubsidiariesConsolidated Statements of Cash FlowsFor the years ended December 31, 2023 and 2022(in thousands of United States dollars unless otherwise stated)Years ended December 31, 20232022Cash flows from operating activitiesNet loss$(124,433)$(415,581)Adjustments to reconcile net lossDepreciation and amortization60,53571,831Original issue discount, debt premium and debt issuance cost amortization5,41115,261Interest paid on BR Exar AR Facility(10,754)--Debt modification and extinguishment gain, net(17,534)(1,803)Impairment of goodwill and other intangible assets--171,182Impairment of operating lease right-of-use assets1,942--Credit loss expense4,4861,573Deferred income tax provision(1,048)147Share-based compensation expense115970Unrealized foreign currency gain(70)(1,288)(Gain) loss on sale of assets(7,044)707Fair value adjustment for private warrants liability of XBP Europe597--Change in operating assets and liabilitiesAccounts receivable22,72977,650Prepaid expenses and other current assets5,523(7,813)Accounts payable and accrued liabilities63,711(520)Related party payables(71)945Additions to outsource contract costs(539)(423)Net cash provided by (used in) operating activities 3,556 (87,162)Cash flows from investing activitiesPurchase of property, plant and equipment(8,075)(18,299)Additions to patents--(15)Additions to internally developed software(3,818)(3,650)Proceeds from sale of assets29,811194Net cash provided by (used in) investing activities 17,918 (21,770)Cash flows from financing activitiesProceeds from issuance of Common Stock from private placement--55Proceeds from issuance of Common Stock from at the market offerings69,260276,337Cash received in exchange for the issuance of noncontrolling interest shares in XBP Europe5,205--Cash paid for equity issuance costs from at the market offerings(2,232)(9,482)Dividend paid on Series B Preferred Stock--(2,532)Payment for fractional shares on reverse stock split(31)--Repurchases of Common Stock for retirement--(487)Borrowings under factoring arrangement and Securitization Facility88,396123,353Principal repayment on borrowings under factoring arrangement and Securitization Facility(92,536)(216,812)Cash paid for withholding taxes on vested RSUs--(135)Lease terminations--3Cash paid for debt issuance costs(8,496)(7,125)Principal payments on finance lease obligations(4,570)(5,523)Borrowings from senior secured revolving facility and BRCC revolver9,60020,000Repayments on senior secured revolving facility--(49,477)Proceeds from issuance of July 2026 Notes--70,269Borrowings from other loans8,70910,095Cash paid for debt repurchases(11,858)(4,712)Proceeds from Senior secured term loan40,000--Proceeds from Second Lien Note31,500--Borrowing under BR Exar AR Facility42,539--Repayments under BR Exar AR Facility(42,546)--Repayment of BRCC term loan(48,529)(66,471)Principal repayments on senior secured term loans and other loans(83,787)(30,717)Net cash provided by financing activities 624 106,639Effect of exchange rates on cash, restricted cash and cash equivalents(12)(700)Net increase (decrease) in cash, restricted cash and cash equivalents 22,086 (2,993)Cash, restricted cash, and cash equivalentsBeginning of period45,06748,060End of period$67,153$45,067Supplemental cash flow data:Income tax payments, net of refunds received$5,494$5,790Interest paid111,83598,602Noncash investing and financing activities:Assets acquired through right-of-use arrangements$405$4,790Issuance of April 2026 Notes in exchange of July 2026 Notes764,800--Issuance of April 2026 Notes in exchange of 2023 term loan2,963--Accrued PIK interest paid through issuance of PIK Notes44,146--Common Stock exchanged for Series B Preferred Stock--6Accrued liability for true-up obligation settled through the issuance of July 2026 Notes--10,351Accrued capital expenditures2,2611,851The accompanying notes are an integral part of these consolidated financial statements. Exela Technologies, Inc. and SubsidiariesSchedule 1: Reconciliation of Adjusted EBITDA and constant currency revenuesYear Ended December 31, 20232022Net Loss$(124,433)$(415,581)Taxes8,8684,199Interest expense139,656164,870Depreciation and amortization60,53571,831EBITDA84,626(174,681)Transaction and integration costs (1)6,17218,586Non-cash equity compensation (2)115985Other charges including non-cash (3)(12,991)35,932Loss/(gain) on sale of assets (4)1,1051,357Loss/(gain) on business disposals (5)(7,223)--Debt modification and extinguishment costs (gain), net(16,129)4,522Loss/(gain) on derivative instruments--(1,091)Exit costs related to China operations1,850--XBP Europe related de-SPAC costs2,478--Impairment of goodwill, other intangible assets--171,182Adjusted EBITDA$60,003$56,792(1) Represents non-recurring legal, consulting and other fees and expenses incurred in connection with acquisitions, dispositions, debt-exchanges and other extraordinary transactions and events during the applicable period.(2) Represents the non-cash charges related to restricted stock units and options.(3) Represents fair value adjustments to our true-up guarantee obligation under the Revolver Exchange (as defined below), network outage related costs and related insurance recoveries, legal settlement costs for class action.(4) Represents a loss/(gain) recognized on the disposal of property, plant, and equipment and other assets.(5) Represents a loss/(gain) recognized on the sale of high-speed scanner business in the second quarter of 2023. Source: Exela Technologies, Inc. COMTEX_450321900/2010/2024-04-04T08:01:24 2023 revenue of $1,064.1 million, down 1.2% year-over-yearGross margin of 21.7% in 2023 vs 18.5% in 2022Operating profit of $8.1 million, up $236.8 million due to increased gross margin, lower SG&A and no impairments in 2023 versus 2022Net loss of $124.4 million ($125.1 attributable to Exela Technologies Inc), an improvement of $291.4 million year-over-yearCertain of the Company's subsidiaries issued approximately $764.8 million of aggregate principal amount of new notes in exchange for $956.0 million of aggregate principal amount of existing 2026 notes in 2023IRVING, Texas, April 04, 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 to our balance sheet, eliminating current liabilities, and reducing our overall debt and interest expense under a difficult macro environment and uncertain outlook. We maintained our focus on cost management and leveraging automation, and have 2023 initiatives in process continuing into 2024 to achieve our margin improvement goals. Late in the year, we made investments to position the Company for future growth by entering into cyber security, data modernization, cloud and Infrastructure-as-a-Service, in addition to previously announced investments in FAO and data science. We completed the public listing on Nasdaq of XBP Europe, our European business. We also made significant investments in people. We improved gross margins and operating income, however we did not accomplish all of our goals in 2023 and have room to grow," said Par Chadha, Executive Chairman of Exela Technologies. Full Year Highlights Revenue: Revenue for 2023 was $1,064.1 million, a decline of 1.2% compared to $1,077.2 million in 2022 Revenue for the Information and Transaction Processing Solutions segment was $732.3 million, a decline of 4.3% year-over-yearHealthcare Solutions generated $251.4 million, a 5.0% increase year-over-yearLegal and Loss Prevention Services generated $80.4 million in revenue, a 10.6% increase year-over-yearOperating profit: Operating profit in 2023 was $8.0 million, up $236.8 million compared with an operating loss of $228.8 million in 2022. Higher gross margin from technology advancements, lower SG&A with reductions in professional services and facility expenses, and a lack of goodwill impairment contributed to the profit improvement on a year-over-year basis. Net Loss: Net loss for 2023 was $124.4 million ($125.1 attributable to Exela Technologies Inc), an improvement of $291.4 million compared with a net loss of $415.6 million in 2022. The year over year decrease was materially driven by improvements in operating profit, lower interest expense and a gain on debt modification and extinguishment costs relative 2022.Adjusted EBITDA(1): Adjusted EBITDA for 2023 was $60.0 million compared to $56.8 million in 2022. Adjusted EBITDA margin for 2023 was 5.6%, an increase of 30 basis points from 2022.Capital Expenditures: Capital expenditures for 2023 were 1.1% of revenue compared to 2% of revenue in 2022 as we continue to migrate from capital intensive infrastructure to cloud computing, by making investments in our platforms and operations.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 ExelaExela Technologies is a business process automation (BPA) leader, leveraging a global footprint and proprietary technology to provide digital transformation solutions enhancing quality, productivity, and end-user experience. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers throughout 50 countries, including over 60% of the Fortune(R) 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 14,100 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 e-mail, please visit the Exela Investor Relations website, http://investors.exelatech.com/, and subscribe to E-mail Alerts. Forward-Looking StatementsCertain 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: @ExelaTechLinkedIn: /exela-technologiesFacebook: @exelatechnologiesInstagram: @exelatechnologiesThe 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:Vincent Kondaveeti E: vincent.kondaveeti@exelatech.com Exela Technologies, Inc. and SubsidiariesConsolidated Balance Sheets As of December 31, 2023 and 2022(in thousands of United States dollars except share and per share amounts)December 31, 20232022AssetsCurrent assetsCash and cash equivalents$23,341$15,073Restricted cash43,81229,994Accounts receivable, net of allowance for credit losses of $6,628 and $6,402, respectively76,893101,616Related party receivables and prepaid expenses296759Inventories, net11,50216,848Prepaid expenses and other current assets25,36426,206Total current assets 181,208 190,496Property, plant and equipment, net of accumulated depreciation of $213,142 and $207,520, respectively58,36671,694Operating lease right-of-use assets, net33,87440,734Goodwill170,452186,802Intangible assets, net164,920200,982Deferred income tax assets3,0431,483Other noncurrent assets24,47429,721Total assets$ 636,337$ 721,912Liabilities and Stockholders' DeficitLiabilitiesCurrent liabilitiesCurrent portion of long-term debt$30,029$154,802Accounts payable61,10979,249Related party payables1,9382,473Income tax payable2,0802,045Accrued liabilities63,69961,340Accrued compensation and benefits65,01254,143Accrued interest52,38960,901Customer deposits23,83816,955Deferred revenue12,09916,405Obligation for claim payment66,98844,380Current portion of finance lease liabilities4,8565,485Current portion of operating lease liabilities10,84511,867Total current liabilities 394,882 510,045Long-term debt, net of current maturities1,030,580942,035Finance lease liabilities, net of current portion5,9539,448Pension liabilities, net13,19216,917Deferred income tax liabilities11,69211,180Long-term income tax liabilities6,3592,742Operating lease liabilities, net of current portion26,70331,030Other long-term liabilities5,8116,104Total liabilities 1,495,172 1,529,501Commitments and Contingencies (Note 14)Stockholders' deficitCommon Stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 6,365,353 shares issued and outstanding at December 31, 2023 and 1,393,889 shares issued and 1,393,276 shares outstanding at December 31, 2022261162Preferred stock, $0.0001 par value per share, 20,000,000 shares authorized at December 31, 2023 and December 31, 2022, respectivelySeries A Preferred Stock, 2,778,111 shares issued and outstanding at December 31, 2023 and December 31, 202211Series B Preferred Stock, 3,029,900 shares issued and outstanding at December 31, 2023 and 0 shares issued and outstanding at December 31, 2022----Additional paid in capital1,179,0981,102,619Less: Common Stock held in treasury, at cost; 0 shares at December 31, 2023 and 612 shares at December 31, 2022--(10,949)Equity-based compensation57,07356,958Accumulated deficit(2,084,114)(1,948,009)Accumulated other comprehensive loss:Foreign currency translation adjustment(7,648)(4,788)Unrealized pension actuarial losses, net of tax(174)(3,583)Total accumulated other comprehensive loss(7,822)(8,371)Total stockholders' deficit attributable to Exela Technologies, Inc. (855,503) (807,589)Noncontrolling interest in XBP Europe(3,332)--Total stockholders' deficit (858,835) (807,589)Total liabilities and stockholders' deficit$ 636,337$ 721,912The accompanying notes are an integral part of these consolidated financial statements. Exela Technologies, Inc. and SubsidiariesConsolidated Statements of Operations For the years ended December 31, 2023 and 2022(in thousands of United States dollars except share and per share amounts)Years ended December 31, 20232022Revenue$1,064,124$1,077,157Cost of revenue (exclusive of depreciation and amortization)833,422877,474Selling, general and administrative expenses (exclusive of depreciation and amortization)150,672176,524Depreciation and amortization60,53571,831Impairment of goodwill and other intangible assets--171,182Related party expense11,4448,923Operating profit (loss) 8,051 (228,777)Other expense (income), net:Interest expense, net139,656164,870Debt modification and extinguishment costs (gain), net(16,129)4,522Sundry expense (income), net973(957)Other expense (income), net(884)14,170Loss before income taxes (115,565) (411,382)Income tax expense(8,868)(4,199)Net loss (124,433) (415,581)Net profit (loss) attributable to noncontrolling interest in XBP Europe, net of taxes723--Net loss attributable to Exela Technologies, Inc.$ (125,156)$ (415,581)Cumulative dividends for Series A Preferred Stock(3,961)(3,588)Cumulative dividends for Series B Preferred Stock(4,718)(3,665)Net loss attributable to common stockholders$ (133,835)$ (422,834)Loss per share:Basic and diluted$(22.37)$(1,372.98)The accompanying notes are an integral part of these consolidated financial statements. Exela Technologies, Inc. and SubsidiariesConsolidated Statements of Cash FlowsFor the years ended December 31, 2023 and 2022(in thousands of United States dollars unless otherwise stated)Years ended December 31, 20232022Cash flows from operating activitiesNet loss$(124,433)$(415,581)Adjustments to reconcile net lossDepreciation and amortization60,53571,831Original issue discount, debt premium and debt issuance cost amortization5,41115,261Interest paid on BR Exar AR Facility(10,754)--Debt modification and extinguishment gain, net(17,534)(1,803)Impairment of goodwill and other intangible assets--171,182Impairment of operating lease right-of-use assets1,942--Credit loss expense4,4861,573Deferred income tax provision(1,048)147Share-based compensation expense115970Unrealized foreign currency gain(70)(1,288)(Gain) loss on sale of assets(7,044)707Fair value adjustment for private warrants liability of XBP Europe597--Change in operating assets and liabilitiesAccounts receivable22,72977,650Prepaid expenses and other current assets5,523(7,813)Accounts payable and accrued liabilities63,711(520)Related party payables(71)945Additions to outsource contract costs(539)(423)Net cash provided by (used in) operating activities 3,556 (87,162)Cash flows from investing activitiesPurchase of property, plant and equipment(8,075)(18,299)Additions to patents--(15)Additions to internally developed software(3,818)(3,650)Proceeds from sale of assets29,811194Net cash provided by (used in) investing activities 17,918 (21,770)Cash flows from financing activitiesProceeds from issuance of Common Stock from private placement--55Proceeds from issuance of Common Stock from at the market offerings69,260276,337Cash received in exchange for the issuance of noncontrolling interest shares in XBP Europe5,205--Cash paid for equity issuance costs from at the market offerings(2,232)(9,482)Dividend paid on Series B Preferred Stock--(2,532)Payment for fractional shares on reverse stock split(31)--Repurchases of Common Stock for retirement--(487)Borrowings under factoring arrangement and Securitization Facility88,396123,353Principal repayment on borrowings under factoring arrangement and Securitization Facility(92,536)(216,812)Cash paid for withholding taxes on vested RSUs--(135)Lease terminations--3Cash paid for debt issuance costs(8,496)(7,125)Principal payments on finance lease obligations(4,570)(5,523)Borrowings from senior secured revolving facility and BRCC revolver9,60020,000Repayments on senior secured revolving facility--(49,477)Proceeds from issuance of July 2026 Notes--70,269Borrowings from other loans8,70910,095Cash paid for debt repurchases(11,858)(4,712)Proceeds from Senior secured term loan40,000--Proceeds from Second Lien Note31,500--Borrowing under BR Exar AR Facility42,539--Repayments under BR Exar AR Facility(42,546)--Repayment of BRCC term loan(48,529)(66,471)Principal repayments on senior secured term loans and other loans(83,787)(30,717)Net cash provided by financing activities 624 106,639Effect of exchange rates on cash, restricted cash and cash equivalents(12)(700)Net increase (decrease) in cash, restricted cash and cash equivalents 22,086 (2,993)Cash, restricted cash, and cash equivalentsBeginning of period45,06748,060End of period$67,153$45,067Supplemental cash flow data:Income tax payments, net of refunds received$5,494$5,790Interest paid111,83598,602Noncash investing and financing activities:Assets acquired through right-of-use arrangements$405$4,790Issuance of April 2026 Notes in exchange of July 2026 Notes764,800--Issuance of April 2026 Notes in exchange of 2023 term loan2,963--Accrued PIK interest paid through issuance of PIK Notes44,146--Common Stock exchanged for Series B Preferred Stock--6Accrued liability for true-up obligation settled through the issuance of July 2026 Notes--10,351Accrued capital expenditures2,2611,851The accompanying notes are an integral part of these consolidated financial statements. Exela Technologies, Inc. and SubsidiariesSchedule 1: Reconciliation of Adjusted EBITDA and constant currency revenuesYear Ended December 31, 20232022Net Loss$(124,433)$(415,581)Taxes8,8684,199Interest expense139,656164,870Depreciation and amortization60,53571,831EBITDA84,626(174,681)Transaction and integration costs (1)6,17218,586Non-cash equity compensation (2)115985Other charges including non-cash (3)(12,991)35,932Loss/(gain) on sale of assets (4)1,1051,357Loss/(gain) on business disposals (5)(7,223)--Debt modification and extinguishment costs (gain), net(16,129)4,522Loss/(gain) on derivative instruments--(1,091)Exit costs related to China operations1,850--XBP Europe related de-SPAC costs2,478--Impairment of goodwill, other intangible assets--171,182Adjusted EBITDA$60,003$56,792(1) Represents non-recurring legal, consulting and other fees and expenses incurred in connection with acquisitions, dispositions, debt-exchanges and other extraordinary transactions and events during the applicable period.(2) Represents the non-cash charges related to restricted stock units and options.(3) Represents fair value adjustments to our true-up guarantee obligation under the Revolver Exchange (as defined below), network outage related costs and related insurance recoveries, legal settlement costs for class action.(4) Represents a loss/(gain) recognized on the disposal of property, plant, and equipment and other assets.(5) Represents a loss/(gain) recognized on the sale of high-speed scanner business in the second quarter of 2023. Source: Exela Technologies, Inc. COMTEX_450321900/2010/2024-04-04T08:01:24 |
|
|
|
|
0.94% $0.02
