First Quarter Highlights Revenue of $258.8 million, down 5.4% year-over-year Gross margin of 22.0%, up 1.1% year-over-year Interest expense of $21.1M, down 52.3% year-over-year SG&A of $40.9M, down 7.9% year-over-year Operating profit of $0.1M versus a loss of $6.9 million year-over year Net loss of $25.6 million ($24.9 million attributable to Exela Technologies Inc), an improvement of $19.9 million year-over-year Adjusted EBITDA of $12.9M, down 11.1% year-over-year IRVING, Texas, May 15, 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 first quarter 2024. "Our results show improvement across many operating metrics. We see benefits from increasing operating leverage and plan to prudently invest in expansion of solutions and people to grow wallet share from our sizable marquee customer base. We will remain focused on growth, cost management. We will continue to refine our strategy as needed to maintain momentum as we approach the second half of the year," noted Par Chadha, Executive Chairman. First Quarter Highlights Revenue: Revenue for 1Q 2024 was $258.8 million, a decline of 5.4% compared to $273.6 million in 1Q 2023 or a decline of 4.3% pro forma excluding the sale of the high speed scanner business Revenue for the Information and Transaction Processing Solutions segment was $176.1 million, a decline of 9.1% year-over-year or a decline of 7.6% on a pro forma basis when adjusted for the sale of the high speed scanner business. Healthcare Solutions generated $64.9 million, a 2.9% increase year-over-year Legal and Loss Prevention Services generated $17.8 million in revenue, a 5.6% increase year-over-year Gross margin of 22.0%, up 1.1% year-over-year due to lower costs Interest Expense of $21.1M, down 52.3% year-over-year due to debt modification SG&A of $40.9M, down 7.9% year-over-year due to vigilant control over costs Operating profit: Operating profit of $0.1M versus a loss of $6.9 million year-over year highlights a mix of lower costs and lower depreciation and amortization Net Loss: Net loss of $25.6 million ($24.9 million attributable to Exela Technologies Inc), an improvement of $19.9 million year-over-year mainly driven by lower interest expense and no debt modification costs this quarter. Adjusted EBITDA(1): Adjusted EBITDA was $12.9 million compared to $14.5 million in 2023, down 11.1% year-over-year while up 41.7% sequentially. Adjusted EBITDA margin was 5.0%, a decrease of 10 basis points from 1Q2023. 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® 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 13,600 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 Exela Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of March 31, 2024 and December 31, 2023 (in thousands of United States dollars except share and per share amounts)               March 31,   December 31,   2024   2023   (Unaudited)   (Audited) Assets           Current assets           Cash and cash equivalents $ 9,501     $ 23,341   Restricted cash   24,523       43,812   Accounts receivable, net of allowance for credit losses of $5,551 and $6,628, respectively   75,777       76,893   Related party receivables and prepaid expenses   474       296   Inventories, net   12,473       11,502   Prepaid expenses and other current assets   27,651       25,364   Total current assets   150,399       181,208   Property, plant and equipment, net of accumulated depreciation of $215,449 and $213,142, respectively   55,428       58,366   Operating lease right-of-use assets, net   31,688       33,874   Goodwill   170,355       170,452   Intangible assets, net   157,078       164,920   Deferred income tax assets   2,913       3,043   Other noncurrent assets   23,943       24,474   Total assets $ 591,804     $ 636,337               Liabilities and Stockholders' Deficit           Liabilities           Current liabilities           Current portion of long-term debt $ 29,057     $ 30,029   Accounts payable   66,375       61,109   Related party payables   2,463       1,938   Income tax payable   2,352       2,080   Accrued liabilities   63,404       63,699   Accrued compensation and benefits   74,927       65,012   Accrued interest   29,946       52,389   Customer deposits   23,731       23,838   Deferred revenue   14,524       12,099   Obligation for claim payment   43,336       66,988   Current portion of finance lease liabilities   4,348       4,856   Current portion of operating lease liabilities   10,214       10,845   Total current liabilities   364,677       394,882   Long-term debt, net of current maturities   1,041,940       1,030,580   Finance lease liabilities, net of current portion   5,170       5,953   Pension liabilities, net   12,617       13,192   Deferred income tax liabilities   12,638       11,692   Long-term income tax liabilities   6,086       6,359   Operating lease liabilities, net of current portion   24,916       26,703   Other long-term liabilities   5,392       5,811   Total liabilities   1,473,436       1,495,172   Commitments and Contingencies (Note 8)           Stockholders' deficit           Common Stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 6,365,355 shares issued and outstanding at March 31, 2024 and December 31, 2023   261       261   Preferred stock, $0.0001 par value per share, 20,000,000 shares authorized at March 31, 2024 and December 31, 2023           Series A Preferred Stock, 2,778,111 shares issued and outstanding at March 31, 2024 and December 31, 2023   1       1