Exela Technologies, Inc. Reports Second Quarter 2020 Results
Second Quarter Revenue of
Delivers Sequential Expansion in Gross Profit and Adj. EBITDA Margins
Advances Debt Reduction and Liquidity Improvement Plan through Divestment of Records Storage business
Conference Call Scheduled for
Second Quarter 2020 & Other Recent Highlights:
- Revenue of
$307.7 million , a decline of 21.3% on a reported basis and 20.9%(1) on a constant currency basis from Q2 2019 - Gross profit margin of 21.4%, an increase of 148 basis points from Q1 2020
- Operating loss of
$5.1 million - EBITDA(2) of
$19.3 million - Adjusted EBITDA(3) of
$43.1 million on a reported basis;$43.3 million on a constant currency basis; Adjusted EBITDA margin of 14.0%, an increase of 190 basis points from Q1 2020 - On
July 23, 2020 ,Exela announced the sale of its records storage business for$12.3 million as part of its strategic plan to sell non-core assets and improve liquidity
“We are pleased with our second quarter 2020 results and execution in light of the difficult operating environment due to COVID-19. We generated revenue above our prior guidance and delivered sequential improvements in both our gross profit and adjusted EBITDA margins in the second quarter. In addition, we continued to make progress against our liquidity improvement and core business optimization initiatives by completing the divestiture of our non-core records storage business in July. So far, our 2020 results are playing out as we previously expected with the second quarter representing our fiscal year low point, and we have increased confidence that our financial performance will improve in the back half of 2020 as volumes begin to rise and our incremental cost reduction initiatives continue to flow through the model. We remain confident that
Second Quarter 2020 Financial Highlights
- Revenue: Revenue was
$307.7 million , a decline of 21.3% from$390.8 million in the second quarter of 2019. Revenue for the Information and Transaction Processing Solutions segment was$243.0 million , a decline of 21.6% year-over-year, primarily due to reduced customer volumes as a result of COVID-19, as well as the exit of contracts and statements of work from certain customers with revenue that the Company believes are unpredictable, non-recurring, and were not a strategic fit to its long-term success or unlikely to achieve long-term target margins. Healthcare Solutions revenue was$49.2 million , a decrease of 22.4% year-over-year, driven by reduced volumes as a result of COVID-19. Legal and Loss Prevention Services revenue was$15.5 million , a decline of 11.9% from the second quarter of 2019.
Revenue excluding the previously announced low margin contract exit (“LMCE”) and pass through revenues from postage and postage handling with either zero or nominal margins (“pass through revenue”) (4) was$252.5 million in the second quarter of 2020, representing a decrease of 22.2% from$324.4 million in the second quarter of 2019.
83% of second quarter 2020 revenue was earned in theAmericas , 15% in EMEA and 2% in rest of world.
- Operating income / (loss): Operating loss for the second quarter of 2020 was
$5.1 million , compared with operating income of$5.7 million in the second quarter of 2019. The year-over-year decrease in operating income was primarily attributable to lower revenue and gross profit, partially offset by lower SG&A expense, depreciation and amortization expense, and related party expenses, compared with the second quarter of 2019.
- Net Loss: Net Loss for the second quarter of 2020 was
$48.7 million , compared with a net loss of$41.6 million in the second quarter of 2019.
- Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2020 was
$43.1 million , compared to$44.4 million in the first quarter of 2020 and$64.9 million in the second quarter of 2019. Adjusted EBITDA margin for the second quarter of 2020 was 14.0%, compared to 12.1% in the first quarter of 2020 and 16.6% in the second quarter of 2019. The sequential improvement in second quarter 2020 Adjusted EBITDA margin reflects flow through of the Company’s ongoing cost containment initiatives.
Adjusted EBITDA margin, based on revenue excluding LMCE and pass through revenue, was 17.1% in the second quarter of 2020, compared with 15.0% in the first quarter of 2020 and 20.0% in the second quarter of 2019.
- Capital Expenditures: Capital expenditures for the second quarter of 2020 were 1.1% of revenue compared to 1.4% of revenue in the second quarter of 2019.
- Common Stock: As of
June 30, 2020 , there were 147,511,430 total shares of common stock outstanding and an additional 4,022,415 shares of common stock reserved for issuance for our outstanding preferred shares on an as-converted basis.
- Total employees as of
June 30, 2020 were 21,073 as compared to 22,058 as ofMarch 31, 2020 .
Balance Sheet: At
Debt Reduction and Liquidity Improvement
On
- On
January 15, 2020 ,Exela announced that the Company entered into a 5-year,$160.0 million accounts receivable securitization facility to improve liquidity. The facility is for an initial five-year term, may be extended in accordance with its terms, and is incremental to Exela’s existing$100.0 million revolving facility maturing inJuly 2022 .
- On
March 17, 2020 ,Exela announced the sale of itsTax Benefit Group (“TBG”) business for$40.0 million , or approximately 1.93x 2019 revenue. Net of closing costs and adjustments, this transaction resulted in proceeds of$38.2 million . For full year 2019, TBG generated total revenue of$20.7 million .
- On
July 23, 2020 ,Exela announced the sale of its physical records storage and logistics business for$12.3 million . The assets involved in the business generated approximately$1.0 million of EBITDA in 2019.
- The Company believes it is on schedule for additional divestitures with expected proceeds in the range of
$100.0 million to$150.0 million in the aggregate.
Third Quarter and Full Year 2020 Outlook
- For the third quarter of 2020,
Exela currently expects revenue to be in the range of$305 million to$312 million .
- The depth and duration of the economic impact from COVID-19 on
Exela and its customers’ businesses remains unknown. Given the uncertainties surrounding COVID-19 and its impacts on visibility,Exela has maintained suspension of providing financial guidance for full year 2020. The Company continues to expect that gross profit margins will increase post COVID-19 downdraft as volumes normalize.
(1) – Constant currency is a non-GAAP measure. A reconciliation of constant currency is attached to this release.
(2) – EBITDA is a non-GAAP measure. A reconciliation of EBITDA is attached to this release.
(3) – Adjusted EBITDA is a non-GAAP measure. A reconciliation of Adjusted EBITDA is attached to this release.
(4) – Pass through revenue is defined as postage and postage handling revenue with either zero or nominal margins. LMCE is defined as revenue from the low margin contract exit announced in the third quarter of 2018. A reconciliation of revenue net of pass through revenue and LMCE is attached to this release.
Earnings Conference Call and Audio Webcast
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Find out more at www.exelatech.com
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About Non-GAAP Financial Measures: This press release includes constant currency, EBITDA and Adjusted EBITDA, each of which is a financial measure that is not prepared in accordance with
Restatement: As described in additional detail in the Explanatory Note to the Company’s Annual Report on Form 10-K filed with the
Forward-Looking Statements: Certain 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
Consolidated Balance Sheets
As of
(in thousands of
| 2020 |
2019 | |||||||||
| (Unaudited) | (Audited) | |||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 86,470 | $ | 6,198 | ||||||
| Restricted cash | 5,457 | 7,901 | ||||||||
| Accounts receivable, net of allowance for doubtful accounts of |
219,433 | 261,400 | ||||||||
| Related party receivables | 906 | 716 | ||||||||
| Inventories, net | 17,268 | 19,047 | ||||||||
| Prepaid expenses and other current assets | 33,695 | 23,663 | ||||||||
| Total current assets | 363,229 | 318,925 | ||||||||
| Property, plant and equipment, net of accumulated depreciation of |
100,878 | 113,637 | ||||||||
| Operating lease right-of-use assets, net | 90,067 | 93,627 | ||||||||
| 359,009 | 359,771 | |||||||||
| Intangible assets, net | 317,630 | 342,443 | ||||||||
| Deferred income tax assets | 11,769 | 12,032 | ||||||||
| Other noncurrent assets | 25,961 | 17,889 | ||||||||
| Total assets | $ | 1,268,543 | $ | 1,258,324 | ||||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||||
| Liabilities | ||||||||||
| Current liabilities | ||||||||||
| Accounts payables | $ | 67,385 | $ | 86,167 | ||||||
| Related party payables | 2 | 1,740 | ||||||||
| Income tax payable | 2,333 | 352 | ||||||||
| Accrued liabilities | 116,376 | 121,553 | ||||||||
| Accrued compensation and benefits | 52,636 | 48,574 | ||||||||
| Accrued interest | 48,127 | 48,769 | ||||||||
| Customer deposits | 27,301 | 27,765 | ||||||||
| Deferred revenue | 19,179 | 16,282 | ||||||||
| Obligation for claim payment | 34,801 | 39,156 | ||||||||
| Current portion of finance lease liabilities | 12,831 | 13,788 | ||||||||
| Current portion of operating lease liabilities | 24,271 | 25,345 | ||||||||
| Current portion of long-term debts | 36,101 | 36,490 | ||||||||
| Total current liabilities | 441,343 | 465,981 | ||||||||
| Long-term debt, net of current maturities | 1,493,775 | 1,398,385 | ||||||||
| Finance lease liabilities, net of current portion | 14,437 | 20,272 | ||||||||
| Pension liabilities | 23,881 | 25,681 | ||||||||
| Deferred income tax liabilities | 7,685 | 7,996 | ||||||||
| Long-term income tax liabilities | 2,808 | 2,806 | ||||||||
| Operating lease liabilities, net of current portion | 71,661 | 73,282 | ||||||||
| Other long-term liabilities | 12,807 | 6,962 | ||||||||
| Total liabilities | 2,068,397 | 2,001,365 | ||||||||
| Commitments and Contingencies (Note 8) | ||||||||||
| Stockholders' equity (deficit) | ||||||||||
| Common stock, par value of |
15 | 15 | ||||||||
| Preferred stock, par value of |
1 | 1 | ||||||||
| Additional paid in capital | 446,739 | 445,452 | ||||||||
| Less: Common Stock held in treasury, at cost; 7,355,120 shares at |
(10,949 | ) | (10,949 | ) | ||||||
| Equity-based compensation | 51,118 | 49,336 | ||||||||
| Accumulated deficit | (1,272,869 | ) | (1,211,508 | ) | ||||||
| Accumulated other comprehensive loss: | ||||||||||
| Foreign currency translation adjustment | (6,387 | ) | (7,329 | ) | ||||||
| Unrealized pension actuarial losses, net of tax | (7,522 | ) | (8,059 | ) | ||||||
| Total accumulated other comprehensive loss | (13,909 | ) | (15,388 | ) | ||||||
| Total stockholders’ deficit | (799,854 | ) | (743,041 | ) | ||||||
| Total liabilities and stockholders’ deficit | $ | 1,268,543 | $ | 1,258,324 | ||||||
Consolidated Statements of Operations for the three and six months ended
(in thousands of
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| 2019 |
2019 |
|||||||||||||||
| 2020 |
(Restated) | 2020 |
(Restated) | |||||||||||||
| Revenue | $ | 307,722 | $ | 390,849 | $ | 673,173 | $ | 795,206 | ||||||||
| Cost of revenue (exclusive of depreciation and amortization) | 241,788 | 303,831 | 534,326 | 614,432 | ||||||||||||
| Selling, general and administrative expenses (exclusive of depreciation and amortization) | 47,014 | 51,162 | 97,387 | 100,839 | ||||||||||||
| Depreciation and amortization | 22,847 | 24,779 | 46,032 | 51,403 | ||||||||||||
| Related party expense | 1,146 | 5,331 | 2,698 | 6,329 | ||||||||||||
| Operating income (loss) | (5,073 | ) | 5,746 | (7,270 | ) | 22,203 | ||||||||||
| Other expense (income), net: | ||||||||||||||||
| Interest expense, net | 44,440 | 39,959 | 86,028 | 79,660 | ||||||||||||
| Debt modification and extinguishment costs | — | 1,404 | — | 1,404 | ||||||||||||
| Sundry expense (income), net | (899 | ) | (1,311 | ) | 183 | 1,404 | ||||||||||
| Other expense (income), net | (584 | ) | 2,527 | (35,241 | ) | 4,020 | ||||||||||
| Net loss before income taxes | (48,030 | ) | (36,833 | ) | (58,240 | ) | (64,285 | ) | ||||||||
| Income tax expense | (661 | ) | (4,738 | ) | (3,120 | ) | (9,458 | ) | ||||||||
| Net loss | $ | (48,691 | ) | $ | (41,571 | ) | $ | (61,360 | ) | $ | (73,743 | ) | ||||
| Cumulative dividends for Series A Preferred Stock | (858 | ) | (914 | ) | 582 | (1,828 | ) | |||||||||
| Net loss attributable to common stockholders | $ | (49,549 | ) | $ | (42,485 | ) | $ | (60,778 | ) | $ | (75,571 | ) | ||||
| Loss per share: | ||||||||||||||||
| Basic and diluted | $ | (0.34 | ) | $ | (0.29 | ) | $ | (0.41 | ) | $ | (0.52 | ) | ||||
Consolidated Statements of Cash Flows
For the six months ended
(in thousands of
| Six Months Ended |
||||||||
| 2019 |
||||||||
| 2020 |
(Restated) | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (61,360 | ) | $ | (73,743 | ) | ||
| Adjustments to reconcile net loss | ||||||||
| Depreciation and amortization | 46,032 | 51,403 | ||||||
| Original issue discount and debt issuance cost amortization | 6,857 | 5,749 | ||||||
| Debt modification and extinguishment costs | — | 1,049 | ||||||
| Provision for doubtful accounts | (110 | ) | 3,334 | |||||
| Deferred income tax provision | (338 | ) | 4,623 | |||||
| Share-based compensation expense | 1,782 | 5,459 | ||||||
| Foreign currency remeasurement | (980 | ) | 288 | |||||
| Loss (gain) on sale of assets | (34,791 | ) | 85 | |||||
| Fair value adjustment for interest rate swap | 440 | 4,385 | ||||||
| Change in operating assets and liabilities, net effect from acquisitions: | ||||||||
| Accounts receivable | 38,260 | 624 | ||||||
| Prepaid expenses and other assets | (9,157 | ) | 1,260 | |||||
| Accounts payable and accrued liabilities | (8,812 | ) | (12,595 | ) | ||||
| Related party balances | (642 | ) | (3,899 | ) | ||||
| Additions to outsource contract costs | (297 | ) | (2,860 | ) | ||||
| Net cash used in operating activities | (23,116 | ) | (14,838 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property, plant, and equipment | (5,766 | ) | (9,072 | ) | ||||
| Additions to internally developed software | (2,216 | ) | (4,007 | ) | ||||
| Cash paid in acquisition, net of cash received | (3,500 | ) | (5,000 | ) | ||||
| Proceeds from sale of assets | 38,222 | 20 | ||||||
| Net cash provided by (used in) investing activities | 26,740 | (18,059 | ) | |||||
| Cash flows from financing activities | ||||||||
| Repurchases of Common Stock | — | (3,480 | ) | |||||
| Borrowings from other loans | 23,248 | 14,092 | ||||||
| Borrowings under factoring arrangement and A/R Facility | 149,951 | 34,050 | ||||||
| Principal repayment on borrowings under factoring arrangement and A/R Facility | (66,114 | ) | (31,624 | ) | ||||
| Proceeds from senior secured term loans | — | 29,850 | ||||||
| Lease terminations | (331 | ) | (95 | ) | ||||
| Cash paid for debt issuance costs | (12,708 | ) | (7 | ) | ||||
| Borrowings from senior secured revolving facility | 29,750 | 68,000 | ||||||
| Repayments on senior secured revolving facility | (14,200 | ) | (68,000 | ) | ||||
| Principal payments on finance lease obligations | (6,353 | ) | (9,180 | ) | ||||
| Principal repayments on senior secured term loans and other loans | (29,040 | ) | (21,248 | ) | ||||
| Net cash provided by financing activities | 74,203 | 12,358 | ||||||
| Effect of exchange rates on cash | 1 | 111 | ||||||
| Net increase (decrease) in cash and cash equivalents | 77,828 | (20,428 | ) | |||||
| Cash, restricted cash, and cash equivalents | ||||||||
| Beginning of period | 14,099 | 43,854 | ||||||
| End of period | $ | 91,927 | $ | 23,426 | ||||
| Supplemental cash flow data: | ||||||||
| Income tax payments, net of refunds received | $ | 1,339 | $ | 5,181 | ||||
| Interest paid | 76,781 | 71,211 | ||||||
| Noncash investing and financing activities: | ||||||||
| Assets acquired through right-of-use arrangements | 772 | 6,778 | ||||||
| Settlement gain on related party payable to Ex-Sigma 2 | 1,287 | — | ||||||
| Accrued capital expenditures | 1,088 | 1,083 | ||||||
Schedule 1: Second Quarter 2020 vs. Second Quarter 2019 Financial Performance
| $ in millions | Q2'20 | Q2'19 | Change ($) | YTD'20 | YTD'19 | Change ($) | |||||||||||
| Information and Transaction Processing Solutions | 243.0 | 309.8 | (66.8 | ) | 527.1 | 635.0 | (107.9 | ) | |||||||||
| Healthcare Solutions | 49.2 | 63.4 | (14.2 | ) | 113.2 | 124.7 | (11.5 | ) | |||||||||
| Legal and Loss Prevention Services | 15.5 | 17.6 | (2.1 | ) | 32.8 | 35.4 | (2.6 | ) | |||||||||
| Total Revenue | 307.7 | 390.8 | (83.1 | ) | 673.2 | 795.2 | (122.0 | ) | |||||||||
| % change | -21% | -5% | -15% | ||||||||||||||
| Cost of revenue (exclusive of depreciation and amortization) | 241.8 | 303.8 | (62.0 | ) | 534.3 | 614.4 | (80.1 | ) | |||||||||
| Gross profit | 65.9 | 87.0 | (21.1 | ) | 138.8 | 180.8 | (41.9 | ) | |||||||||
| as a % of revenue | 21% | 22% | -0.8 | % | 21% | 23% | -2.1 | % | |||||||||
| SG&A | 47.0 | 51.2 | (4.1 | ) | 97.4 | 100.8 | (3.5 | ) | |||||||||
| Depreciation and amortization | 22.8 | 24.8 | (1.9 | ) | 46.0 | 51.4 | (5.4 | ) | |||||||||
| Impairment of goodwill and other intangible assets | - | - | - | - | - | - | |||||||||||
| Related party expense | 1.1 | 5.3 | (4.2 | ) | 2.7 | 6.3 | (3.6 | ) | |||||||||
| Operating (loss) income | (5.1 | ) | 5.7 | (10.8 | ) | (7.3 | ) | 22.2 | (29.5 | ) | |||||||
| as a % of revenue | -2% | 1% | -3.1% | -1% | 3% | -3.9% | |||||||||||
| Interest expense, net | 44.4 | 40.0 | 4.5 | 86.0 | 79.7 | 6.4 | |||||||||||
| Loss on extinguishment of debt | - | 1.4 | (1.4 | ) | - | 1.4 | (1.4 | ) | |||||||||
| Sundry expense (income) & Other income, net | (1.5 | ) | 1.2 | (2.7 | ) | (35.1 | ) | 5.4 | (40.5 | ) | |||||||
| Net loss before income taxes | (48.0 | ) | (36.8 | ) | (11.2 | ) | (58.2 | ) | (64.3 | ) | 6.0 | ||||||
| Income tax expense (benefit) | 0.7 | 4.7 | (4.1 | ) | 3.1 | 9.5 | (6.3 | ) | |||||||||
| Net income (loss) | (48.7 | ) | (41.6 | ) | (7.1 | ) | (61.4 | ) | (73.7 | ) | 12.4 | ||||||
| as a % of revenue | -16% | -11% | -5.2% | -9% | -9% | 0.2% | |||||||||||
| Depreciation and amortization | 22.8 | 24.8 | (1.9 | ) | 46.0 | 51.4 | (5.4 | ) | |||||||||
| Interest expense, net | 44.4 | 40.0 | 4.5 | 86.0 | 79.7 | 6.4 | |||||||||||
| Income tax expense (benefit) | 0.7 | 4.7 | (4.1 | ) | 3.1 | 9.5 | (6.3 | ) | |||||||||
| EBITDA | 19.3 | 27.9 | (8.6 | ) | 73.8 | 66.8 | 7.0 | ||||||||||
| as a % of revenue | 6% | 7% | -0.9% | 11% | 8% | 2.6% | |||||||||||
| EBITDA Adjustments | |||||||||||||||||
| 1 | Gain / loss on derivative instruments | (0.4 | ) | 2.7 | (3.1 | ) | 0.4 | 4.4 | (3.9 | ) | |||||||
| 2 | Non-Cash and Other Charges | 7.8 | 13.5 | (5.8 | ) | (20.8 | ) | 24.7 | (45.4 | ) | |||||||
| 3 | Transaction and integration costs | 4.8 | 2.0 | 2.8 | 9.2 | 3.0 | 6.1 | ||||||||||
| Sub-Total (Adj. EBITDA before O&R) | 31.4 | 46.2 | (14.8 | ) | 62.7 | 98.9 | (36.2 | ) | |||||||||
| 4 | Optimization and restructuring expenses | 11.7 | 18.7 | (7.0 | ) | 24.9 | 42.4 | (17.5 | ) | ||||||||
| Adjusted EBITDA | 43.1 | 64.9 | (21.7 | ) | 87.5 | 141.2 | (53.7 | ) | |||||||||
| as a % of revenue | 14.0% | 16.6% | -2.6% | 13.0% | 17.8% | -4.8% | |||||||||||
Schedule 2: Reconciliation of Adjusted EBITDA and constant currency revenues
| Reconciliation of Non-GAAP Financial Measures to GAAP Measures | |||||||||||||||||
| Non-GAAP constant currency revenue reconciliation | |||||||||||||||||
| ($ in millions) | Three months ended | Six months ended | |||||||||||||||
| Revenues, as reported (GAAP) | $307.7 | $390.8 | $673.2 | $795.2 | |||||||||||||
| Foreign currency exchange impact (1) | 1.4 | 3.2 | |||||||||||||||
| Revenues, at constant currency (Non-GAAP) | $309.2 | $390.8 | $676.4 | $795.2 | |||||||||||||
| (1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the three months and six months ended |
|||||||||||||||||
| Reconciliation of Adjusted EBITDA | |||||||||||||||||
| ($ in millions) | Three months ended | Six months ended | |||||||||||||||
| Net loss (GAAP) | ($48.7 | ) | ($41.6 | ) | ($61.4 | ) | ($73.7 | ) | |||||||||
| Interest expense | 44.4 | 40.0 | 86.0 | 79.7 | |||||||||||||
| Taxes | 0.7 | 4.7 | 3.1 | 9.5 | |||||||||||||
| Depreciation and amortization | 22.8 | 24.8 | 46.0 | 51.4 | |||||||||||||
| EBITDA (Non-GAAP) | $19.3 | $27.9 | $73.8 | $66.8 | |||||||||||||
| Transaction and integration costs | 4.8 | 2.0 | 9.2 | 3.0 | |||||||||||||
| Optimization and restructuring expenses | 11.7 | 18.7 | 24.9 | 42.4 | |||||||||||||
| Gain / loss on derivative instruments | (0.4 | ) | 2.7 | 0.4 | 4.4 | ||||||||||||
| Other Charges | 7.8 | 13.5 | (20.8 | ) | 24.7 | ||||||||||||
| Adjusted EBITDA (Non-GAAP) | $43.1 | $64.9 | $87.5 | $141.2 | |||||||||||||
| Foreign currency exchange impact (1) | 0.2 | 1.1 | - | ||||||||||||||
| Adjusted EBITDA, at constant currency (Non-GAAP) | $43.3 | $64.9 | $88.6 | $141.2 | |||||||||||||
| (1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the three months and six months ended |
|||||||||||||||||
| Schedule 3: Non-GAAP Revenue reconciliation & Adjusted EBITDA margin on Revenue net of pass through & LMCE | |||||||||||||||||
| Non-GAAP revenue reconciliation & Adjusted EBITDA margin on revenue net of pass through & LMCE | |||||||||||||||||
| ($ in millions) | Three months ended | Six months ended | |||||||||||||||
| Revenues, as reported (GAAP) | $307.7 | $390.8 | $673.2 | $795.2 | |||||||||||||
| (-) Postage & postage handling | 55.2 | 66.2 | 125.0 | 141.6 | |||||||||||||
| Revenue - Net of pass through (Non-GAAP) | $252.5 | $324.7 | $548.2 | $653.6 | |||||||||||||
| (-) LMCE | - | 0.3 | - | 2.1 | |||||||||||||
| Revenue - Net of pass through & LMCE (Non-GAAP) | $252.5 | $324.4 | $548.2 | $651.5 | |||||||||||||
| Revenue growth % | (22.2%) | (15.9%) | |||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $43.1 | $64.9 | $87.5 | $141.2 | |||||||||||||
| Adjusted EBITDA margin | 17.1% | 20.0% | 16.0% | 21.7% | |||||||||||||
Media Contact:
E: kevin.mclaughlin@icrinc.com
T: 646-277-1234
Investor Contact:
E: IR@exelatech.com
T: 646-277-1236
Source: Exela Technologies, Inc.