10-Q 1 xela-20230930x10q.htm 10-Q
http://fasb.org/us-gaap/2022#InterestIncomeExpenseNonoperatingNethttp://fasb.org/us-gaap/2022#InterestIncomeExpenseNonoperatingNethttp://fasb.org/us-gaap/2022#InterestIncomeExpenseNonoperatingNethttp://fasb.org/us-gaap/2022#InterestIncomeExpenseNonoperatingNethttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpense636535331572558548401768753.97276.5918.081281.200001620179--12-312023Q3false6365353P1YP2Y2778111277811130299003029900P60DP90DP60DP90DP180DP2DP2D0.0050.0050.0050.000250.00025http://fasb.org/us-gaap/2022#UnfundedPlanMember0001620179us-gaap:PrivatePlacementMember2023-09-300001620179xela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2023-01-012023-09-300001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2022-01-012022-12-3100016201792022-06-172022-06-170001620179xela:AccountsReceivableSecuritizationFacilityMember2020-12-172020-12-170001620179xela:SecuritizationFacilityMember2020-12-172020-12-170001620179srt:MaximumMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberxela:LongTermIncentivePlan2013AndStockIncentivePlan2018Member2023-07-012023-09-300001620179us-gaap:SellingGeneralAndAdministrativeExpensesMemberxela:LongTermIncentivePlan2013AndStockIncentivePlan2018Member2023-01-012023-09-300001620179xela:TandemPreferredStockMember2017-05-170001620179us-gaap:WarrantMemberus-gaap:PrivatePlacementMember2021-03-152021-03-150001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMember2016-01-012016-12-310001620179xela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2016-01-012016-12-310001620179xela:ExchangeNotesMember2022-01-012022-12-310001620179xela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-08-012022-08-310001620179xela:SeniorSecuredNotesDue2026Member2022-05-062022-05-060001620179xela:TandemPreferredStockMember2017-05-172017-05-170001620179xela:PlaintiffBoShenMember2020-03-232020-03-230001620179xela:MasterServiceAgreementMemberxela:HandsonGlobalManagementMember2023-01-012023-09-3000016201792023-07-112023-07-110001620179xela:SeniorSecuredNotesDue2026Memberxela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-03-072022-03-070001620179xela:PlaintiffBoShenMember2020-03-230001620179srt:MinimumMemberxela:UKPensionPlanMember2023-01-012023-09-300001620179srt:MinimumMemberxela:NorwayPensionPlanMember2023-01-012023-09-300001620179srt:MinimumMemberxela:AsterionPensionPlanMember2023-01-012023-09-300001620179srt:MinimumMemberxela:GermanPensionPlanMember2023-01-012023-09-300001620179xela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-01-012022-09-300001620179xela:SeniorTermLoanMember2023-07-112023-07-110001620179xela:SeniorSecuredNotesDue2026Member2023-09-300001620179xela:SeniorSecuredNotesDue2026Member2022-12-310001620179xela:SeniorSecuredNotesDue2023Member2022-12-310001620179us-gaap:SecuredDebtMember2022-12-310001620179xela:SeniorSecuredNotesDue2026Member2023-07-112023-07-110001620179xela:SeniorSecuredNotesDue2023Member2023-07-112023-07-110001620179xela:NewNotesIssuedUnder2023ExchangeMember2023-07-112023-07-110001620179us-gaap:RevolvingCreditFacilityMemberxela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-03-072022-03-070001620179xela:SeniorSecuredNotesDue2026Member2021-12-092021-12-090001620179xela:New11.500FirstPrioritySeniorSecuredNotesDue2026Memberus-gaap:SecuredDebtMemberus-gaap:BaseRateMember2021-12-092021-12-090001620179us-gaap:SecuredDebtMember2021-12-092021-12-090001620179xela:SeniorSecuredTermLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-07-112023-07-110001620179us-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-07-132018-07-1300016201792020-03-230001620179us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001620179us-gaap:CommonStockMember2023-04-012023-06-300001620179us-gaap:OtherExpenseMemberxela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-07-012022-09-300001620179xela:SecuritizationFacilityMember2023-09-300001620179xela:SecuritizationFacilityMember2022-12-310001620179xela:SecuritizationFacilityMember2022-01-012022-12-310001620179srt:MaximumMemberxela:SeniorSecuredNotesDue2023Member2023-01-012023-09-300001620179srt:MaximumMemberus-gaap:SecuredDebtMember2023-01-012023-09-300001620179xela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-03-072022-03-070001620179us-gaap:SubsequentEventMember2023-12-012023-12-3100016201792023-09-302023-09-300001620179us-gaap:TreasuryStockCommonMember2023-07-012023-09-3000016201792023-09-290001620179xela:ShareBuybackProgram2022Member2022-08-102022-08-100001620179xela:ShareBuybackProgram2022Member2022-08-1000016201792023-09-292023-09-290001620179xela:ShareBuybackProgram2022Member2023-01-012023-09-300001620179us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001620179us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001620179us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001620179us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001620179xela:GpHgmLlcMemberxela:SpecialVotingPreferredStockMemberus-gaap:SubsequentEventMember2023-10-092023-10-090001620179us-gaap:CommonStockMember2023-01-012023-03-310001620179us-gaap:CommonStockMember2022-07-012022-09-300001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2022-04-012022-06-300001620179us-gaap:CommonStockMember2022-04-012022-06-300001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2022-01-012022-03-310001620179us-gaap:CommonStockMember2022-01-012022-03-310001620179xela:EquityBasedCompensationMember2023-09-300001620179us-gaap:RetainedEarningsMember2023-09-300001620179us-gaap:AdditionalPaidInCapitalMember2023-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2023-09-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-09-300001620179xela:EquityBasedCompensationMember2023-06-300001620179us-gaap:RetainedEarningsMember2023-06-300001620179us-gaap:AdditionalPaidInCapitalMember2023-06-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2023-06-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-06-3000016201792023-06-300001620179xela:EquityBasedCompensationMember2023-03-310001620179us-gaap:RetainedEarningsMember2023-03-310001620179us-gaap:AdditionalPaidInCapitalMember2023-03-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-03-3100016201792023-03-310001620179xela:EquityBasedCompensationMember2022-12-310001620179us-gaap:RetainedEarningsMember2022-12-310001620179us-gaap:AdditionalPaidInCapitalMember2022-12-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-12-310001620179xela:EquityBasedCompensationMember2022-09-300001620179us-gaap:RetainedEarningsMember2022-09-300001620179us-gaap:AdditionalPaidInCapitalMember2022-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2022-09-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-09-300001620179xela:EquityBasedCompensationMember2022-06-300001620179us-gaap:RetainedEarningsMember2022-06-300001620179us-gaap:AdditionalPaidInCapitalMember2022-06-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-06-3000016201792022-06-300001620179xela:EquityBasedCompensationMember2022-03-310001620179us-gaap:RetainedEarningsMember2022-03-310001620179us-gaap:AdditionalPaidInCapitalMember2022-03-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-03-3100016201792022-03-310001620179xela:EquityBasedCompensationMember2021-12-310001620179us-gaap:RetainedEarningsMember2021-12-310001620179us-gaap:AdditionalPaidInCapitalMember2021-12-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2021-12-310001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2023-09-300001620179us-gaap:SeriesAPreferredStockMemberus-gaap:PreferredStockMember2023-09-300001620179us-gaap:CommonStockMember2023-09-300001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2023-06-300001620179us-gaap:SeriesAPreferredStockMemberus-gaap:PreferredStockMember2023-06-300001620179us-gaap:TreasuryStockCommonMember2023-06-300001620179us-gaap:CommonStockMember2023-06-300001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2023-03-310001620179us-gaap:SeriesAPreferredStockMemberus-gaap:PreferredStockMember2023-03-310001620179us-gaap:TreasuryStockCommonMember2023-03-310001620179us-gaap:CommonStockMember2023-03-310001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2022-12-310001620179us-gaap:SeriesAPreferredStockMemberus-gaap:PreferredStockMember2022-12-310001620179us-gaap:TreasuryStockCommonMember2022-12-310001620179us-gaap:CommonStockMember2022-12-310001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2022-09-300001620179us-gaap:SeriesAPreferredStockMemberus-gaap:PreferredStockMember2022-09-300001620179us-gaap:TreasuryStockCommonMember2022-09-300001620179us-gaap:CommonStockMember2022-09-300001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2022-06-300001620179us-gaap:SeriesAPreferredStockMemberus-gaap:PreferredStockMember2022-06-300001620179us-gaap:TreasuryStockCommonMember2022-06-300001620179us-gaap:CommonStockMember2022-06-300001620179us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2022-03-310001620179us-gaap:SeriesAPreferredStockMemberus-gaap:PreferredStockMember2022-03-310001620179us-gaap:TreasuryStockCommonMember2022-03-310001620179us-gaap:CommonStockMember2022-03-310001620179us-gaap:SeriesAPreferredStockMemberus-gaap:PreferredStockMember2021-12-310001620179us-gaap:TreasuryStockCommonMember2021-12-310001620179us-gaap:CommonStockMember2021-12-310001620179xela:ShareBasedPaymentArrangementSharePriceEqualToOrGreaterThan80000.00PerShareMemberxela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2023-09-300001620179xela:ShareBasedPaymentArrangementSharePriceEqualToOrGreaterThan40000.00PerShareMemberxela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-09-300001620179srt:MinimumMemberxela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-09-300001620179srt:MaximumMemberxela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2023-09-300001620179srt:MaximumMemberxela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-09-300001620179xela:ShareBasedPaymentArrangementSharePriceEqualToOrLessThan8000.00PerShareMemberxela:MarketPerformanceUnitsMember2023-09-300001620179xela:CommonStockAtMarketSalesProgramTwoMember2023-09-300001620179xela:CommonStockAtMarketSalesProgramThreeMember2023-09-300001620179xela:CommonStockAtMarketSalesProgramOneMember2023-09-300001620179xela:CommonStockAtMarketSalesProgramFourMember2023-09-300001620179xela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2021-09-140001620179xela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2021-09-140001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2023-09-300001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2022-12-310001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2023-01-012023-09-300001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2018-01-182018-01-180001620179us-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2023-01-012023-09-300001620179us-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2022-01-012022-12-310001620179xela:MarketPerformanceUnitsMember2022-01-012022-12-310001620179xela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2023-09-300001620179xela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-09-300001620179us-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2023-09-300001620179us-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2022-12-310001620179xela:MarketPerformanceUnitsMember2022-12-310001620179xela:ShareBasedPaymentArrangementSharePriceEqualToOrGreaterThan80000.00PerShareMemberxela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2023-01-012023-09-300001620179xela:ShareBasedPaymentArrangementSharePriceEqualToOrGreaterThan40000.00PerShareMemberxela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-01-012023-09-300001620179xela:ShareBasedPaymentArrangementSharePriceEqualToOrLessThan8000.00PerShareMemberxela:MarketPerformanceUnitsMember2023-01-012023-09-300001620179xela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2021-09-142021-09-140001620179xela:MarketPerformanceUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2021-09-142021-09-140001620179srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2023-01-012023-09-300001620179srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2023-01-012023-09-300001620179srt:MinimumMemberus-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2018-01-182018-01-180001620179srt:MaximumMemberus-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2018-01-182018-01-180001620179xela:OtherCountriesMemberxela:ITPSSegmentMember2023-07-012023-09-300001620179srt:EuropeMemberxela:ITPSSegmentMember2023-07-012023-09-300001620179country:USxela:LLPSSegmentMember2023-07-012023-09-300001620179country:USxela:ITPSSegmentMember2023-07-012023-09-300001620179country:USxela:HSSegmentMember2023-07-012023-09-300001620179xela:OtherCountriesMember2023-07-012023-09-300001620179srt:EuropeMember2023-07-012023-09-300001620179country:US2023-07-012023-09-300001620179xela:OtherCountriesMemberxela:ITPSSegmentMember2023-01-012023-09-300001620179srt:EuropeMemberxela:ITPSSegmentMember2023-01-012023-09-300001620179country:USxela:LLPSSegmentMember2023-01-012023-09-300001620179country:USxela:ITPSSegmentMember2023-01-012023-09-300001620179country:USxela:HSSegmentMember2023-01-012023-09-300001620179xela:OtherCountriesMember2023-01-012023-09-300001620179srt:EuropeMember2023-01-012023-09-300001620179country:US2023-01-012023-09-300001620179xela:OtherCountriesMemberxela:ITPSSegmentMember2022-07-012022-09-300001620179srt:EuropeMemberxela:ITPSSegmentMember2022-07-012022-09-300001620179country:USxela:LLPSSegmentMember2022-07-012022-09-300001620179country:USxela:ITPSSegmentMember2022-07-012022-09-300001620179country:USxela:HSSegmentMember2022-07-012022-09-300001620179xela:OtherCountriesMember2022-07-012022-09-300001620179srt:EuropeMember2022-07-012022-09-300001620179country:US2022-07-012022-09-300001620179xela:OtherCountriesMemberxela:ITPSSegmentMember2022-01-012022-09-300001620179srt:EuropeMemberxela:ITPSSegmentMember2022-01-012022-09-300001620179country:USxela:LLPSSegmentMember2022-01-012022-09-300001620179country:USxela:ITPSSegmentMember2022-01-012022-09-300001620179country:USxela:HSSegmentMember2022-01-012022-09-300001620179xela:OtherCountriesMember2022-01-012022-09-300001620179srt:EuropeMember2022-01-012022-09-300001620179country:US2022-01-012022-09-300001620179us-gaap:SecuredDebtMember2023-07-122023-07-120001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2023-07-012023-09-300001620179xela:ConsultingServicesMemberxela:OakanaHoldingsIncMember2023-07-012023-09-300001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2023-01-012023-09-300001620179srt:MaximumMemberxela:ConsultingServicesMemberxela:OakanaHoldingsIncMember2023-01-012023-09-300001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2022-07-012022-09-300001620179srt:MaximumMemberxela:ConsultingServicesMemberxela:OakanaHoldingsIncMember2022-07-012022-09-300001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2022-01-012022-09-300001620179srt:MaximumMemberxela:ConsultingServicesMemberxela:OakanaHoldingsIncMember2022-01-012022-09-300001620179us-gaap:CostOfSalesMemberxela:DataCaptureAndTechnologyServicesMemberxela:HovServicesLtdMember2023-07-012023-09-300001620179xela:TravelExpenseMemberxela:HandsonGlobalManagementMember2023-07-012023-09-300001620179us-gaap:CostOfSalesMemberxela:DataCaptureAndTechnologyServicesMemberxela:HovServicesLtdMember2023-01-012023-09-300001620179srt:MaximumMemberxela:TravelExpenseMemberxela:HandsonGlobalManagementMember2023-01-012023-09-300001620179us-gaap:CostOfSalesMemberxela:DataCaptureAndTechnologyServicesMemberxela:HovServicesLtdMember2022-07-012022-09-300001620179srt:MaximumMemberxela:TravelExpenseMemberxela:HandsonGlobalManagementMember2022-07-012022-09-300001620179us-gaap:CostOfSalesMemberxela:DataCaptureAndTechnologyServicesMemberxela:HovServicesLtdMember2022-01-012022-09-300001620179srt:MaximumMemberxela:TravelExpenseMemberxela:HandsonGlobalManagementMember2022-01-012022-09-300001620179xela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-07-012022-07-310001620179xela:BrccRevolverMember2023-01-012023-09-300001620179xela:BrccFacilityMember2023-02-272023-02-270001620179xela:ParChadhaMemberxela:SubscriptionAgreementsMember2022-08-112022-08-110001620179us-gaap:PrivatePlacementMember2021-03-152021-03-150001620179xela:IncrementalTermLoans2019Member2018-07-132018-07-130001620179xela:IncrementalTermLoans2018Member2018-07-132018-07-130001620179xela:CommonStockAtMarketSalesProgramTwoMember2023-01-012023-09-300001620179xela:CommonStockAtMarketSalesProgramThreeMember2023-01-012023-09-300001620179xela:CommonStockAtMarketSalesProgramOneMember2023-01-012023-09-300001620179xela:CommonStockAtMarketSalesProgramFourMember2023-01-012023-09-300001620179us-gaap:SeriesBPreferredStockMember2022-12-310001620179us-gaap:SeriesAPreferredStockMember2022-12-310001620179xela:GpHgmLlcMemberxela:SpecialVotingPreferredStockMemberus-gaap:SubsequentEventMember2023-10-090001620179xela:TandemPreferredStockMember2022-05-170001620179us-gaap:SeriesBPreferredStockMember2023-07-012023-09-300001620179us-gaap:SeriesAPreferredStockMember2023-07-012023-09-300001620179us-gaap:SeriesAPreferredStockMember2022-07-012022-09-300001620179us-gaap:SeriesAPreferredStockMember2022-01-012022-09-300001620179us-gaap:SeriesBPreferredStockMember2022-07-012022-09-300001620179us-gaap:SeriesBPreferredStockMember2022-01-012022-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2023-07-012023-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2023-04-012023-06-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2022-07-012022-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2022-04-012022-06-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-07-012023-09-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-04-012023-06-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-01-012023-03-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-07-012022-09-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-04-012022-06-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-01-012022-03-310001620179srt:MaximumMemberus-gaap:MajorityShareholderMember2023-07-012023-09-300001620179us-gaap:MajorityShareholderMember2023-01-012023-09-300001620179us-gaap:MajorityShareholderMember2022-07-012022-09-300001620179us-gaap:MajorityShareholderMember2022-01-012022-09-300001620179us-gaap:RetainedEarningsMember2023-07-012023-09-300001620179us-gaap:RetainedEarningsMember2023-04-012023-06-300001620179us-gaap:RetainedEarningsMember2023-01-012023-03-310001620179us-gaap:RetainedEarningsMember2022-07-012022-09-300001620179us-gaap:RetainedEarningsMember2022-04-012022-06-300001620179us-gaap:RetainedEarningsMember2022-01-012022-03-310001620179xela:AdverseArbitrationOrderMember2020-09-012020-09-300001620179xela:PlaintiffBoShenMember2023-07-232023-07-230001620179xela:AdverseArbitrationOrderMember2021-05-282021-05-280001620179xela:AdverseArbitrationOrderMember2020-11-012020-11-300001620179xela:AdverseArbitrationOrderMember2023-09-300001620179us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001620179us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001620179us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001620179us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001620179us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001620179us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001620179xela:SecondLienSecuredTermLoanMemberxela:NewNotesMember2023-09-300001620179xela:BrccFacilityMemberxela:NewNotesMember2023-09-300001620179xela:SeniorSecuredTermLoanMember2023-09-300001620179xela:OtherDebtMember2023-09-300001620179xela:NewNotesUnderNewNotesIndentureMember2023-09-300001620179us-gaap:SecuredDebtMember2023-07-120001620179xela:SeniorSecuredNotesDue2026Member2023-07-110001620179xela:BrccRevolverMember2023-06-100001620179xela:SeniorSecuredNotesDue2023Memberus-gaap:SeniorNotesMember2022-12-310001620179xela:BrccFacilityMemberxela:NewNotesMember2022-12-310001620179xela:SeniorSecuredNotesDue2026Member2022-12-310001620179xela:OtherDebtMember2022-12-310001620179xela:BrccRevolverMember2022-09-300001620179xela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-08-310001620179xela:RepricingTermLoansMember2018-07-130001620179xela:BlueTorchFinanceLlcMemberxela:SeniorTermLoanMember2023-07-110001620179xela:BrccFacilityMember2022-03-310001620179xela:SecuritizationFacilityMember2020-12-170001620179us-gaap:RevolvingCreditFacilityMember2017-07-120001620179xela:SecondLienSecuredTermLoanMember2023-09-300001620179xela:SecuritizationFacilityMember2022-06-170001620179xela:SecuritizationFacilityMember2020-06-170001620179us-gaap:RevolvingCreditFacilityMember2019-12-310001620179xela:LLPSSegmentMember2023-07-012023-09-300001620179xela:ITPSSegmentMember2023-07-012023-09-300001620179xela:HSSegmentMember2023-07-012023-09-300001620179xela:LLPSSegmentMember2023-01-012023-09-300001620179xela:ITPSSegmentMember2023-01-012023-09-300001620179xela:HSSegmentMember2023-01-012023-09-300001620179xela:LLPSSegmentMember2022-07-012022-09-300001620179xela:ITPSSegmentMember2022-07-012022-09-300001620179xela:HSSegmentMember2022-07-012022-09-300001620179xela:LLPSSegmentMember2022-01-012022-09-300001620179xela:ITPSSegmentMember2022-01-012022-09-300001620179xela:HSSegmentMember2022-01-012022-09-300001620179us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberxela:HighSpeedScannerBusinessMember2023-06-082023-06-080001620179xela:InformationTransactionProcessingSolutionsMember2023-01-012023-09-300001620179xela:InformationTransactionProcessingSolutionsMember2022-01-012022-12-310001620179xela:LegalAndLossPreventionServicesMember2023-09-300001620179xela:InformationTransactionProcessingSolutionsMember2023-09-300001620179xela:HealthcareSolutionsMember2023-09-300001620179xela:LegalAndLossPreventionServicesMember2022-12-310001620179xela:InformationTransactionProcessingSolutionsMember2022-12-310001620179xela:HealthcareSolutionsMember2022-12-310001620179xela:LegalAndLossPreventionServicesMember2021-12-310001620179xela:InformationTransactionProcessingSolutionsMember2021-12-310001620179xela:HealthcareSolutionsMember2021-12-310001620179us-gaap:SecuredDebtMember2023-07-012023-09-300001620179xela:SeniorSecuredNotesDue2023Member2023-01-012023-09-300001620179us-gaap:SecuredDebtMember2023-01-012023-09-300001620179us-gaap:SecuredDebtMember2023-01-012023-09-300001620179xela:ExchangeNotesMember2022-07-012022-09-300001620179xela:ExchangeNotesMember2022-01-012022-09-300001620179xela:BrccTermLoanMember2022-01-012022-09-300001620179xela:SecuritizationFacilityMember2023-07-012023-09-300001620179xela:SecuritizationFacilityMember2023-01-012023-09-300001620179xela:OutsourcedContractCostsMember2023-09-300001620179us-gaap:TradeNamesMember2023-09-300001620179us-gaap:SoftwareDevelopmentMember2023-09-300001620179us-gaap:PatentsMember2023-09-300001620179us-gaap:DevelopedTechnologyRightsMember2023-09-300001620179us-gaap:CustomerRelationshipsMember2023-09-300001620179us-gaap:ComputerSoftwareIntangibleAssetMember2023-09-300001620179xela:OutsourcedContractCostsMember2022-12-310001620179us-gaap:TradeNamesMember2022-12-310001620179us-gaap:SoftwareDevelopmentMember2022-12-310001620179us-gaap:PatentsMember2022-12-310001620179us-gaap:DevelopedTechnologyRightsMember2022-12-310001620179us-gaap:CustomerRelationshipsMember2022-12-310001620179us-gaap:ComputerSoftwareIntangibleAssetMember2022-12-310001620179srt:MaximumMemberus-gaap:EmployeeStockOptionMemberxela:LongTermIncentivePlan2013AndStockIncentivePlan2018Member2023-09-300001620179xela:MarketPerformanceUnitsMember2023-09-300001620179xela:Rule14Member2023-09-300001620179xela:Rule14Member2022-12-310001620179xela:HovServicesLtdMember2023-09-300001620179xela:HandsonGlobalManagementMember2023-09-300001620179xela:HovServicesLtdMember2022-12-310001620179xela:HandsonGlobalManagementMember2022-12-310001620179us-gaap:SeriesBPreferredStockMemberus-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001620179us-gaap:SeriesBPreferredStockMember2022-04-012022-06-300001620179us-gaap:SeriesBPreferredStockMember2023-09-300001620179us-gaap:SeriesAPreferredStockMember2023-09-300001620179us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberxela:HighSpeedScannerBusinessMember2023-01-012023-09-300001620179us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberxela:HighSpeedScannerBusinessMember2023-06-080001620179srt:MaximumMemberxela:GermanPensionPlanMember2023-01-012023-09-300001620179xela:GermanPensionPlanMember2023-09-300001620179xela:PensionMember2023-07-012023-09-300001620179xela:PensionMember2023-01-012023-09-300001620179xela:PensionMember2022-07-012022-09-300001620179xela:PensionMember2022-01-012022-09-300001620179xela:NewNotesMember2023-09-300001620179xela:NewNotesMember2023-07-110001620179xela:SeniorSecuredNotesDue2026Memberus-gaap:SeniorNotesMember2022-12-310001620179xela:SeniorSecuredNotesDue2026Memberus-gaap:SeniorNotesMember2023-09-300001620179xela:SeniorSecuredNotes10.0PercentDue2023Member2022-12-310001620179xela:FirstLienCreditAgreement2017Member2022-12-310001620179xela:SecuritizationFacilityMember2021-04-112021-04-110001620179xela:SeniorSecuredNotesDue2023Member2023-09-300001620179us-gaap:SecuredDebtMember2023-09-300001620179xela:ExchangeNotesMember2022-12-310001620179xela:SeniorSecuredNotesDue2026Member2023-01-012023-09-300001620179xela:New11.500FirstPrioritySeniorSecuredNotesDue2026Member2023-07-112023-07-110001620179xela:SeniorSecuredTermLoanMember2023-07-112023-07-110001620179xela:BrccRevolverMember2023-06-102023-06-100001620179xela:SeniorSecuredNotesDue2026Member2023-09-300001620179xela:SeniorSecuredTermLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-07-110001620179xela:New11.500FirstPrioritySeniorSecuredNotesDue2026Member2023-07-110001620179xela:New11.500FirstPrioritySeniorSecuredNotesDue2026Memberus-gaap:SecuredDebtMemberus-gaap:BaseRateMember2021-12-090001620179xela:SeniorSecuredNotesDue2023Member2017-07-120001620179xela:BrccFacilityMember2023-02-270001620179xela:NewNotesUnderNewNotesIndentureMember2023-07-150001620179xela:New11.500FirstPrioritySeniorSecuredNotesDue2026Memberus-gaap:SecuredDebtMember2023-07-120001620179xela:SeniorSecuredTermLoanMember2023-07-110001620179xela:NewNotesUnderNewNotesIndentureMember2023-07-110001620179xela:NewNotesIssuedUnder2023ExchangeMember2023-07-110001620179xela:SeniorSecuredNotesDue2026Memberxela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-08-310001620179xela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-07-310001620179xela:BrccFacilityMember2021-12-070001620179xela:BrccFacilityMember2021-11-170001620179xela:SeniorSecuredNotesDue2026Member2017-07-120001620179us-gaap:SecuredDebtMember2017-07-120001620179xela:SeniorSecuredNotesDue2026Memberxela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-05-060001620179xela:SeniorSecuredNotesDue2026Memberxela:RevolvingLoanExchangeAndPrepaymentAgreementMember2022-03-070001620179xela:SeniorSecuredNotesDue2023Member2023-12-090001620179xela:SeniorSecuredTermLoanMemberus-gaap:FederalFundsEffectiveSwapRateMember2023-07-112023-07-110001620179xela:ReferenceRateLoanMember2023-07-112023-07-110001620179xela:BrccFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-02-272023-02-270001620179xela:SecuritizationFacilityMemberxela:LondonInterbankOfferedRateOneMonthAdjustedMember2020-12-012020-12-310001620179xela:SecuritizationFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-12-012020-12-310001620179xela:SecuritizationFacilityMemberus-gaap:FederalFundsEffectiveSwapRateMember2020-12-012020-12-310001620179xela:SecuritizationFacilityMember2020-12-012020-12-310001620179xela:SeniorSecuredNotesDue2026Memberus-gaap:SecuredDebtMember2018-07-132018-07-130001620179us-gaap:SecuredDebtMemberus-gaap:FederalFundsEffectiveSwapRateMember2018-07-132018-07-1300016201792023-05-122023-05-1200016201792022-04-012022-09-300001620179xela:PriorToStockSplitMember2022-12-310001620179xela:StockIncentivePlan2018Member2022-06-270001620179srt:MaximumMemberxela:StockIncentivePlan2018Member2018-01-170001620179xela:StockIncentivePlan2018Member2018-01-1700016201792023-05-120001620179us-gaap:WarrantMemberus-gaap:PrivatePlacementMember2021-03-310001620179us-gaap:PrivatePlacementMember2021-03-1500016201792022-09-3000016201792021-12-3100016201792022-01-012022-12-310001620179us-gaap:SeriesAPreferredStockMember2023-01-012023-09-300001620179us-gaap:CommonStockMember2023-01-012023-09-300001620179us-gaap:WarrantMemberus-gaap:PrivatePlacementMember2021-03-182021-03-1800016201792022-01-012022-09-300001620179xela:MarketPerformanceUnitsMember2023-07-012023-09-300001620179xela:MarketPerformanceUnitsMember2023-01-012023-09-300001620179us-gaap:SellingGeneralAndAdministrativeExpensesMemberxela:LongTermIncentivePlan2013AndStockIncentivePlan2018Member2022-07-012022-09-300001620179xela:MarketPerformanceUnitsMember2022-07-012022-09-300001620179us-gaap:SellingGeneralAndAdministrativeExpensesMemberxela:LongTermIncentivePlan2013AndStockIncentivePlan2018Member2022-01-012022-09-300001620179xela:MarketPerformanceUnitsMember2022-01-012022-09-300001620179us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001620179xela:EquityBasedCompensationMember2023-07-012023-09-3000016201792023-07-012023-09-300001620179xela:EquityBasedCompensationMember2023-04-012023-06-3000016201792023-04-012023-06-300001620179xela:EquityBasedCompensationMember2023-01-012023-03-3100016201792023-01-012023-03-310001620179xela:EquityBasedCompensationMember2022-07-012022-09-3000016201792022-07-012022-09-300001620179xela:EquityBasedCompensationMember2022-04-012022-06-3000016201792022-04-012022-06-300001620179xela:EquityBasedCompensationMember2022-01-012022-03-3100016201792022-01-012022-03-310001620179xela:SecuritizationFacilityMember2022-06-172022-06-1700016201792022-01-010001620179xela:AccountsReceivableSecuritizationFacilityMember2020-12-1700016201792023-09-3000016201792022-12-310001620179us-gaap:SeriesBPreferredStockMember2023-01-012023-09-300001620179us-gaap:CommonStockMember2023-01-012023-09-3000016201792024-01-0500016201792023-01-012023-09-30xela:itemxela:agreementxela:categoryxela:directorxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pureiso4217:EURxela:segmentxela:claimxela:Votexela:installment

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

Or

   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission file number: 001-36788

EXELA TECHNOLOGIES, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware

47-1347291

(State of or other Jurisdiction
Incorporation or Organization)

(I.R.S. Employer
Identification No.)

2701 E. Grauwyler Rd.
Irving, TX

75061

(Address of Principal Executive
Offices)

(Zip Code)

Registrant's Telephone Number, Including Area Code: (844) 935-2832

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, Par Value $0.0001 per share

XELA

The Nasdaq Stock Market LLC

6.00% Series B Cumulative Convertible
Perpetual Preferred Stock, par value $0.0001 per share

Tandem Preferred Stock, par value of $0.0001 per share

XELAP

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer    

Accelerated Filer     

Non-Accelerated Filer     

Smaller Reporting Company   

Emerging Growth Company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 

As of January 5, 2024, the registrant had 6,365,353 shares of Common Stock outstanding.

Exela Technologies, Inc.

Form 10-Q

For the quarterly period ended September 30, 2023

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets as of September 30, 2023 (Unaudited) and December 31, 2022

1

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 (Unaudited)

2

Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2023 and 2022 (Unaudited)

3

Condensed Consolidated Statements of Stockholders’ Deficit for the three and nine months ended September 30, 2023 and 2022 (Unaudited)

4

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (Unaudited)

6

Notes to the Condensed Consolidated Financial Statements (Unaudited)

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

37

Item 3. Quantitative and Qualitative Disclosures about Market Risk

56

Item 4. Controls and Procedures

57

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

58

Item 1A. Risk Factors

58

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Equity Securities

59

Item 3. Defaults Upon Senior Securities

59

Item 4. Mine Safety Disclosures

59

Item 5. Other Information

59

Item 6. Exhibits

60

Signatures

62

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

As of September 30, 2023 and December 31, 2022

(in thousands of United States dollars except share and per share amounts)

September 30, 

December 31, 

2023

    

2022

    

(Unaudited)

    

(Audited)

Assets

 

  

 

  

Current assets

 

  

 

  

Cash and cash equivalents

$

6,142

$

15,073

Restricted cash

 

39,352

 

29,994

Accounts receivable, net of allowance for credit losses of $5,678 and $6,402, respectively

96,867

101,616

Related party receivables and prepaid expenses

117

759

Income tax receivable

129

Inventories, net

11,003

16,848

Prepaid expenses and other current assets

21,483

26,206

Total current assets

 

175,093

 

190,496

Property, plant and equipment, net of accumulated depreciation of $217,021 and $207,520, respectively

59,604

71,694

Operating lease right-of-use assets, net

38,557

40,734

Goodwill

170,262

186,802

Intangible assets, net

173,931

200,982

Deferred income tax assets

1,417

1,483

Other noncurrent assets

 

26,509

 

29,721

Total assets

$

645,373

$

721,912

Liabilities and Stockholders' Equity (Deficit)

 

  

 

  

Liabilities

 

  

 

  

Current liabilities

Current portion of long-term debt

$

48,221

$

154,802

Accounts payable

73,742

79,249

Related party payables

2,499

2,473

Income tax payable

2,045

Accrued liabilities

61,447

61,340

Accrued compensation and benefits

53,399

54,143

Accrued interest

24,463

60,901

Customer deposits

16,319

16,955

Deferred revenue

13,842

16,405

Obligation for claim payment

60,037

44,380

Current portion of finance lease liabilities

5,048

5,485

Current portion of operating lease liabilities

11,487

11,867

Total current liabilities

 

370,504

 

510,045

Long-term debt, net of current maturities

1,043,775

942,035

Finance lease liabilities, net of current portion

6,815

9,448

Pension liabilities, net

16,861

16,917

Deferred income tax liabilities

11,859

11,180

Long-term income tax liabilities

3,835

2,742

Operating lease liabilities, net of current portion

28,684

31,030

Other long-term liabilities

5,923

6,104

Total liabilities

1,488,256

1,529,501

Commitments and Contingencies (Note 8)

 

  

 

  

Stockholders' equity (deficit)

 

  

 

  

Common Stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 6,365,353 shares issued and outstanding at September 30, 2023 and 1,393,889 shares issued and 1,393,276 shares outstanding at December 31, 2022

 

261

 

162

Preferred stock, $0.0001 par value per share, 20,000,000 shares authorized at September 30, 2023 and December 31, 2022, respectively

Series A Preferred Stock, 2,778,111 shares issued and outstanding at September 30, 2023 and December 31, 2022

1

1

Series B Preferred Stock, 3,029,900 shares issued and outstanding at September 30, 2023 and December 31, 2022

Additional paid in capital

 

1,169,517

 

1,102,619

Less: Common Stock held in treasury, at cost; 0 shares at September 30, 2023 and 612 shares at December 31, 2022

(10,949)

Equity-based compensation

57,524

56,958

Accumulated deficit

 

(2,058,388)

 

(1,948,009)

Accumulated other comprehensive loss:

Foreign currency translation adjustment

(8,157)

(4,788)

Unrealized pension actuarial losses, net of tax

(3,641)

(3,583)

Total accumulated other comprehensive loss

(11,798)

(8,371)

Total stockholders’ deficit

 

(842,883)

 

(807,589)

Total liabilities and stockholders’ deficit

$

645,373

$

721,912

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the three and nine months ended September 30, 2023 and 2022

(in thousands of United States dollars except share and per share amounts)

(Unaudited)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2023

    

2022

    

2023

    

2022

Revenue

$

253,125

$

264,038

$

799,683

$

810,206

Cost of revenue (exclusive of depreciation and amortization)

 

198,450

 

217,842

 

626,976

 

658,623

Selling, general and administrative expenses (exclusive of depreciation and amortization)

35,367

44,369

111,774

137,604

Depreciation and amortization

14,398

17,737

45,848

53,942

Impairment of goodwill and other intangible assets

29,565

29,565

Related party expense

2,845

2,016

8,696

6,189

Operating profit (loss)

2,065

(47,491)

6,389

(75,717)

Other expense (income), net:

Interest expense, net

24,708

40,897

113,980

122,928

Debt modification and extinguishment costs (gain), net

(571)

(4,696)

(16,129)

4,305

Sundry expense, net

298

781

2,546

347

Other expense (income), net

(1,069)

(1,115)

(1,583)

12,419

Net loss before income taxes

(21,301)

(83,358)

(92,425)

(215,716)

Income tax expense

(1,807)

(1,924)

(7,005)

(5,721)

Net loss

$

(23,108)

$

(85,282)

$

(99,430)

$

(221,437)

Cumulative dividends for Series A Preferred Stock

(1,002)

(908)

(2,923)

(2,648)

Cumulative dividends for Series B Preferred Stock

(1,188)

(1,136)

(3,512)

(2,528)

Net loss attributable to common stockholders

$

(25,298)

$

(87,326)

$

(105,865)

$

(226,613)

Loss per share:

Basic and diluted

$

(3.97)

$

(276.59)

$

(18.08)

$

(1,281.20)

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

For the three and nine months ended September 30, 2023 and 2022

(in thousands of United States dollars except share and per share amounts)

(Unaudited)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2023

    

2022

    

2023

    

2022

Net loss

$

(23,108)

$

(85,282)

$

(99,430)

$

(221,437)

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments

 

(3,165)

 

1,978

 

(3,369)

 

4,588

Unrealized pension actuarial gains (losses), net of tax

 

147

 

824

 

(58)

 

1,934

Total other comprehensive loss, net of tax

$

(26,126)

$

(82,480)

$

(102,857)

$

(214,915)

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Deficit

For the three and nine months ended September 30, 2023 and 2022

(in thousands of United States dollars except share and per share amounts)

(Unaudited)

Accumulated Other
Comprehensive Loss

Unrealized

Foreign

Pension

Currency

Actuarial

Total

Common Stock

Series A Preferred Stock

Series B Preferred Stock

Treasury Stock

Additional

Equity-Based

Translation

Losses,

Accumulated

Stockholders'

  

Shares

  

Amount

  

Shares

  

Amount

  

Shares

  

Amount

  

Shares

  

Amount

  

Paid in Capital

  

Compensation

  

Adjustment

  

net of tax

  

Deficit

  

Deficit

Balances at January 1, 2022

66,300

$

37

2,778,111

$

1

$

612

$

(10,949)

$

838,853

$

56,123

$

(7,463)

$

(10,946)

$

(1,532,428)

$

(666,772)

Net loss

(56,956)

(56,956)

Equity-based compensation

302

302

Foreign currency translation adjustment

1,477

1,477

Net realized pension actuarial gains, net of tax

308

308

Common Stock exchanged for Series B Preferred Stock

(4,502)

(2)

900,328

2

Issuance of Common Stock from at the market offerings, net of offering costs

59,070

24

114,509

114,533

Withholding of employee taxes on vested RSUs

(190)

(190)

Common Stock issued for vested RSUs

272

Balances at March 31, 2022

121,140

$

59

2,778,111

$

1

900,328

$

612

$

(10,949)

$

953,364

$

56,235

$

(5,986)

$

(10,638)

$

(1,589,384)

$

(607,298)

Net loss

(79,199)

(79,199)

Equity-based compensation

528

528

Foreign currency translation adjustment

1,133

1,133

Net realized pension actuarial gains, net of tax

802

802

Dividend declared and paid on Series B Preferred Stock ($0.46 per share)

(1,396)

(1,396)

Common Stock exchanged for Series B Preferred Stock

(10,648)

(4)

2,129,572

4

Issuance of Common Stock from at the market offerings, net of offering costs

90,948

36

56,328

56,364

Withholding of employee taxes on vested RSUs

(2)

(2)

Common Stock issued for vested RSUs

12

Agreed cancellation of Common Stock issued for Director's vested RSUs

(155)

Balances at June 30, 2022

201,297

$

91

2,778,111

$

1

3,029,900

$

612

$

(10,949)

$

1,008,300

$

56,761

$

(4,853)

$

(9,836)

$

(1,668,583)

$

(629,068)

Net loss

(85,282)

(85,282)

Equity-based compensation

(142)

(142)

Foreign currency translation adjustment