Second Quarter Pro Forma Revenue of
Second Quarter Pro Forma Adjusted EBITDA of
On-Track to Deliver Identified Business Combination Savings
“We are pleased with our second quarter and year-to-date financial results highlighted by strong EBITDA and cash flow generation. The reorganization, reporting and integration of all key functions has been completed, and we are on track to achieve our merger synergy targets,” said
All financial information contained in this press release is presented Pro Forma for the previously announced business combination (the “Business Combination”) of
Second Quarter 2017 Pro Forma Financial Highlights
- Total revenue was
$350 million including:
- Information and Transaction Processing Solutions revenue of$270 million
- Healthcare Solutions revenue of$58 million
- Legal & Loss Prevention Services revenue of$22 million - Pro Forma Adjusted EBITDA was
$83 million 1, representing 23.6% EBITDA margin - Free Cash Flow was
$75 million 2, representing 90.9% of Pro Forma Adjusted EBITDA.
Six-Month Year-to-Date 2017 Pro Forma Financial Highlights
- Total revenue was
$712 million including:
- Information and Transaction Processing Solutions revenue of$550 million
- Healthcare Solutions revenue of$117 million
- Legal & Loss Prevention Services revenue of$45 million - Pro Forma Adjusted EBITDA was
$181 million , representing 25.5% EBITDA margin - Free Cash Flow was
$163 million , representing 89.8% of Pro Forma Adjusted EBITDA.
Pro Forma Balance Sheet Information
- Following the completion of the Business Combination, the Company had total liquidity of approximately
$100 million , including cash and cash equivalents, and total new financing of$1.35 billion used to extinguish outstanding borrowings.
1 For additional information refer to EBITDA Reconciliation tables in the release.
2 Free Cash Flow defined as Pro Forma Adjusted EBITDA less
Earnings Conference Call and Audio Webcast
About Exela Technologies
About Non-GAAP Financial Measures
This earnings release presents non-GAAP financial measures including EBITDA, Adjusted EBITDA, Pro Forma EBITDA, Pro Forma Adjusted EBITDA, and Adjusted Revenue – each of which is a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). SourceHOV and Novitex believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to SourceHOV’s and Novitex’s financial condition and results of operations. SourceHOV and Novitex do not consider these non-GAAP measures in isolation or as an alternative to liquidity or financial measures determined in accordance with GAAP. A limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in SourceHOV’s and Novitex’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures and therefore the basis of presentation for these measures may not be comparable to similarly-titled measures used by other companies. These non-GAAP measures should not be considered in isolation of, or as an alternative to, GAAP financial measures. For reconciliation of the comparable GAAP measures to these non-GAAP financial measures, see the schedules to this release.
Forward-Looking Statements
Certain statements included in this communication 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, the completed business combination among Quinpario, SourceHOV and Novitex, the estimated or anticipated future results and benefits of the combined company following the transaction, future opportunities for the combined company, and other statements that are not historical facts. These statements are based on the current expectations of Exela’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties regarding
Pro Forma Year to Date Performance | |||||||||
($ in millions) | |||||||||
H1 2017 | Q2 2017 | ||||||||
Revenue | |||||||||
Information and Transaction Processing Solutions | $ | 550 | $ | 270 | |||||
Healthcare Solutions | 117 | 58 | |||||||
Legal & Loss Prevention Services | 45 | 22 | |||||||
Total Revenue | $ | 712 | $ | 350 | |||||
Cost of Revenue (excl D&A) | 519 | 257 | |||||||
Gross Profit | $ | 193 | $ | 93 | |||||
Gross Margin | 27 | % | 27 | % | |||||
SG&A (excl D&A) | $ | 101 | $ | 49 | |||||
Adjusted EBITDA | $ | 127 | $ | 64 | |||||
Pro Forma Adjusted EBITDA | $ | 181 | $ | 83 | |||||
% Margin | 25 | % | 24 | % | |||||
Pro Forma EBITDA Reconciliation | ||||||||
($ in millions) | ||||||||
H1 2017 | Q2 2017 | |||||||
Net Loss | $ | (57 | ) | $ | (32 | ) | ||
Taxes | 1 | 2 | ||||||
Interest Expense | 78 | 40 | ||||||
Depreciation and Amortization | 62 | 31 | ||||||
EBITDA | $ | 84 | $ | 41 | ||||
Optimization and Restructuring expenses | 16 | 10 | ||||||
Transaction and integration costs | 17 | 7 | ||||||
Non-cash charges | 2 | 2 | ||||||
New contract setup | 2 | 1 | ||||||
Management, Board Fees and expenses | 5 | 3 | ||||||
Adjusted EBITDA | $ | 127 | $ | 64 | ||||
Foreign Exchange gains / losses | 2 | (0 | ) | |||||
Combined merger adjustments | 52 | 19 | ||||||
Pro Forma Adjusted EBITDA | $ | 181 | $ | 83 | ||||
Note: Net loss is presented on the basis of the previous capital structure at the respective standalone companies. As of
Free Cash Flow Reconciliation From Net Loss | |||||||||
($ in millions) | |||||||||
H1 2017 | Q2 2017 | ||||||||
Net Loss | $ | (57 | ) | $ | (32 | ) | |||
Taxes | 1 | 2 | |||||||
Interest Expense | 78 | 40 | |||||||
Depreciation and Amortization | 62 | 31 | |||||||
Optimization and Restructuring expenses | 16 | 10 | |||||||
Transaction and integration costs | 17 | 7 | |||||||
Non-cash charges | 2 | 2 | |||||||
New contract setup | 2 | 1 | |||||||
Management, Board Fees and expenses | 5 | 3 | |||||||
Foreign Exchange gains / losses | 2 | (0 | ) | ||||||
Combined merger adjustments | 52 | 19 | |||||||
Pro Forma Adjusted EBITDA | $ | 181 | $ | 83 | |||||
(-) Capex | 19 | 7 | |||||||
Free Cash Flow | $ | 163 | $ | 75 |
Investor Contact:
646-277-1236
ir@exelatech.comhttp://investors.exelatech.com