Slide 1: Disclaimer: Forward Looking Statements
Disclaimer 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 accompani
Slide 2: Embracing complexity. Delivering simplicity.
Embracing complexity. Delivering simplicity. Exela Technologies, Inc. is a global business process automation leader combining industry-specific and industry-agnostic enterprise software and solutions with decades of experience. Our BPA suite of solutions are deployed in banking, healthcare, insuran
Slide 3: Ron Cogburn, Chief Executive Officer: Q1 2018 Earnings Presentation
Ron Cogburn Chief Executive Officer Q1 2018 Earnings presentation
Slide 4: Exela at a glance
Exela at a glance GENERATING >$25 MILLION IN ANNUAL REVENUE The company has not forecasted net income/(loss) on a forward-looking basis due to the high variability and difficulty in predicting certain items that affect GAAP net income/(loss) including, income tax expense, stock-based compensation ex
Slide 5: Exela at a glance
Exela at a glance COMMON SOLUTIONS AND SERVICES OVER 24 PILOTS FOR BPA SOLUTIONS HIGH RENEWAL RATE ON STRATEGIC ACCOUNTS >95% INVESTING FOR GROWTH AND TO MAINTAIN LEADERSHIP IN PEOPLE AND TECHNOLOGY TOTAL CONTRACT VALUE WON AS OF MARCH 31, 2018 $1.525 BILLION(1) INTELLIGENT LOCKERS – FOR PACKAGE DEL
Slide 6: Global presence with a global workforce
Global presence with a global workforce ~12,000 Employees in North America ~1,000 Employees in Europe ~8,000 Employees in Asia 7 Position Breakdown We are approximately 22,000(1) employees strong at nearly 1,100 onsite client facilities and 150 delivery centers located throughout the Americas, Europ
Slide 7: A distinguished clientele of leaders in their respective industries
A distinguished clientele of leaders in their respective industries Exela partners with customers to improve user experience and quality through operational efficiency. Exela serves over 3,500 customers across ~50 countries, through a secure, cloud-enabled global delivery model. 900+ Healthcare Prov
Slide 8: Global business process automation leader
Global business process automation leader LEVERAGE BPA INITIATIVE / GOAL Exela BPA suite extended to customer sites to further leverage our BPA leadership position Over 24 pilot programs based on demand IMPROVE CUSTOMER AWARENESS SAVINGS INITIATIVES ACCRETIVE M&A UPDATE On-track to achieve $40-$45 m
Slide 9: Jim Reynolds, CFO: Q1 2018 Financial Performance & Strategy
Jim Reynolds Chief Financial Officer Q1 2018 Financial Performance & Strategy 10
Slide 10: Exela at a glance: Q1 2018
Exela at a glance NET LOSS DECREASED BY $34.7 MILLION FROM Q4 2017 ADJUSTED EBITDA GREW BY 10.9% YoY TO $69.6 MILLION(3) LOW CAPEX INTENSITY 2.2% OF REVENUE Q1 2018 11 REVENUE GREW 8.7% YoY TO $393.2 MILLION(2) AND GREW 1.8% SEQUENTIALLY INVESTED OVER $26.5 MILLION IN Q1 2018 BACK INTO THE BUSINESS
Slide 11: Q1 2018 vs. pro forma Q1 2017 and Q4 2017 performance: Revenue
12 Q1 2018 vs. pro forma Q1 2017 and Q4 2017 performance A Revenue ITPS revenue grew 11.6% year-over-over year was driven primarily by increased volumes and expansion of services within new and existing customers. Sequential growth in industry verticals was driven by strength in banking and financia
Slide 12: Q1 2018 vs. pro forma Q1 2017 and Q4 2017 performance: Net loss
Q1 2018 vs. pro forma Q1 2017 and Q4 2017 performance 13 NET LOSS OF ($24.0) MILLION COMPARED TO A NET LOSS OF ($58.7) MILLION ON A SEQUENTIAL BASIS. B Cost of Revenue – is impacted by ramp up of large contracts, offset by flow through of cost savings initiatives. On a sequential basis, the increase
Slide 13: Q1 2018 performance: Adjusted EBITDA
14 E Optimization and restructuring expenses – increased investment in business optimization and restructuring expenses during the first quarter in order to deliver on savings initiatives. F Non-cash charges – Q1 2018 gain due to interest rate hedge; pro forma Q1 2017 had an add-back for oversight a
Slide 14: Cash invested back in business initiatives; low capital intensity
Approximately $26.5 million of cash invested back in business initiatives during Q1 2018 Low intensity capital expenditure model 15 Pro forma Q1 2017 revenue reconciliation available on slide 24. Further adjusted free cash flow reconciliation available on slide 21. Further Adjusted free cash flow co
Slide 15: Liquidity, net debt and share buyback plan
($ in millions) Total liquidity $117 Net debt $1,368 Total cash $37 $100 million revolver fully undrawn (net of $21 million in standby letters of credit) HEDGED AGAINST INTEREST RATE FLUCTUATIONS(1) (1) Company entered into a standard three year, one-month LIBOR interest rate hedging contract with a
Slide 16: Other items: new revenue standard and tax reform
Impact of new revenue standard: Exela adopted Accounting Standards Codification 606 (ASC 606) Revenue from Contracts with Customers as required effective 1/1/2018. The adoption did not have a material impact on the Company's financial position, results of operations and cash flows as of or for the p
Slide 17: 2018 guidance
Revenue range increased to $1.55 billion to $1.58 billion, an increase from $1.51 billion to $1.54 billion previously. Increased range drives pro forma 2018 growth of 6.5% to 8.5%, up from pro forma growth 4% to 6% previously. Adjusted EBITDA range increased to $295 million to $310 million from $290
Slide 18: Conclusions and Q&A; Reconciliations
Conclusions and Q&A Reconciliations 19
Slide 19: Adjusted EBITDA reconciliation – Q4 2017 and Q1 2018
Adjusted EBITDA reconciliation – Q4 2017 and Q1 2018 20 Q1 2018 Q4 2017 Net loss ($24.0) ($58.7) Taxes 4.0 (27.3) Interest expense 38.0 36.7 Depreciation and amortization 38.0 28.1 EBITDA $56.1 ($21.1) Impairment of goodwill and other intangible assets - 69.4 Optimization and restructuring expenses
Slide 20: Further adjusted EBITDA and Free Cash Flow reconciliation, pro forma FY 2017
Further adjusted EBITDA and Free Cash Flow reconciliation from net loss pro forma FY 2017 21 Pro Forma FY 2017 Net Loss ($242.4) Taxes (67.2) Interest expense 153.4 Depreciation and amortization 119.5 Impairment of goodwill and other intangible assets 69.4 (Gain) / loss on extinguishment of debt 53.
Slide 21: Capital expenditures reconciliation – pro forma Q1 2017
Capital expenditures reconciliation – pro forma Q1 2017 22 (1) Acquirer is defined as SourceHOV. Acquirer Novitex Pro Forma Capital expenditures 8.6 2.5 11.1 ($ in millions) Q1 2017
Slide 22: Adjusted EBITDA reconciliation – pro forma Q1 2017
Adjusted EBITDA reconciliation – pro forma Q1 2017 23 (1) Net loss for the period January 1 – July 12 is presented on the basis of the previous debt structure at the respective standalone companies. As of July 12, 2017, the existing debt structures at respective Exela entities have been replaced wit
Slide 23: Revenue and expense reconciliation - pro forma Q1 2017
Revenue and expense reconciliation - pro forma Q1 2017 24 (1) Net loss for the period January 1 – July 12 is presented on the basis of the previous debt structure at the respective standalone companies. As of July 12, 2017, the existing debt structures at respective Exela entities have been replaced
Slide 24: SG&A including related party expense - pro forma Q1 2017
SG&A including related party expense - pro forma Q1 2017 25 AS REVENUE GROWS, SG&A CONTINUES TO DECLINE : DOWN 14.0% ON A YOY BASIS AND DOWN 6.6% ON A SEQUENTIAL BASIS ($ in millions) Q1 2018 Q4 2017 Pro Forma As Reported Novitex Selling, general and administrative expenses 45.6 48.3 51.6 35.6 16.0
Slide 25: Q1 2018
Q1 2018 EARNINGS PRESENTATION May 10, 2018 NASDAQ: XELA
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