Exela Technologies Inc (XELA) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to the Exela Technologies first quarter 2024 financial results conference call. (operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Vincent Kondaveeti, Head of Investor Relations. Please go ahead.

下午好，歡迎參加 Exela Technologies 2024 年第一季財務業績電話會議。（操作員說明）請注意，正在記錄此事件。我現在想將會議交給投資者關係主管文森特康達維蒂 (Vincent Kondaveeti)。請繼續。

Thank you, Gary, and good afternoon. Welcome to our earnings call to discuss our first quarter results for the period ended March 31, 2024. Our presentations was uploaded to the IR section of our website. Matt Brown, our Interim CFO, will be hosting the call. Par unfortunately had some travel delays and can't dial in.

謝謝你，加里，下午好。歡迎參加我們的財報電話會議，討論我們截至 2024 年 3 月 31 日的第一季業績。我們的簡報已上傳到我們網站的 IR 部分。我們的臨時財務長馬特布朗將主持這次電話會議。不幸的是，Par 遇到了一些旅行延誤，無法撥入。

Today's agenda will largely follow our prior calls with management commentary, followed by Q&A. Some of the matters we will discuss in today's call are forward-looking and involve a number of risks, uncertainties and other factors that could actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties are set forth in our presentation.

今天的議程將主要遵循我們之前的電話會議，包括管理層評論，然後是問答。我們將在今天的電話會議中討論的一些問題是前瞻性的，涉及許多風險、不確定性和其他因素，這些因素可能導致實際結果與此類前瞻性聲明中的結果有重大差異。我們的演示中闡述了此類風險和不確定性。

So with that, I'll turn over the call to Matt.

因此，我會將電話轉給馬特。

Good afternoon, everyone. Let's move to slide 8, financial highlights. We reported first quarter revenues of $258.8 million, down 5.4% year-over-year or 4.3% pro forma for the sale of the high-speed scanner business. Information and transaction processing solutions declined by 9% year-over-year, offset by growth in our health care solutions and legal and loss prevention services segments by approximately 3% and 6%, respectively.

大家下午好。讓我們轉到第 8 張投影片，財務摘要。我們報告第一季營收為 2.588 億美元，年減 5.4%，高速掃描器業務銷售預計將下降 4.3%。資訊和交易處理解決方案年減 9%，但被我們的醫療保健解決方案以及法律和防損服務領域分別成長約 3% 和 6% 的成長所抵銷。

Sequentially, IPTS was down 3% in Q1 due to the loss of a $27 million low margin contract renewal. Healthcare solutions was up 4% with continued volume increases and LLPS was down 12% due to project fluctuations.

隨後，由於失去了 2700 萬美元的低利潤合約續約，IPTS 在第一季下跌了 3%。醫療保健解決方案隨著銷售量的持續成長而成長了 4%，而 LLPS 則因專案波動而下降了 12%。

Q1 gross margins were 22%, up 107 basis points year-over-year, and we continue to focus on driving automation and operational leverage. Healthcare and LLPS margins are up 296 basis points and 242 basis points year-over-year and ITPS margin was relatively flat given the contract exit.

第一季毛利率為 22%，較去年同期成長 107 個基點，我們持續專注於推動自動化和營運槓桿。醫療保健和 LLPS 利潤率較去年同期分別上升 296 個基點和 242 個基點，考慮到合約退出，ITPS 利潤率相對持平。

SG&A is down 43 basis points year-over-year, primarily driven by reductions in legal and professional fees. We're making investments in new business divisions such as Reaktr.ai and shifting from CapEx to OpEx as we move our data center infrastructure to the cloud.

SG&A 年減 43 個基點，主要是由於法律和專業費用的減少。隨著我們將資料中心基礎設施遷移到雲端，我們正在對 Reaktr.ai 等新業務部門進行投資，並從資本支出轉向營運支出。

Since year end, we've consolidated over 100,000 square feet of real estate and have approximately 340,000 square feet of additional consolidations in process. We have made good progress and savings initiatives but still have significant opportunity for margin improvement throughout the rest of the year.

自年底以來，我們已經整合了超過 100,000 平方英尺的房地產，並且還有大約 340,000 平方英尺的額外整合正在進行中。我們已經取得了良好的進展和節約舉措，但在今年剩餘時間內仍然有很大的機會提高利潤率。

We had a net loss of $25.6 million, an improvement of $20 million year-over-year, mainly driven by lower interest and debt expense. Adjusted EBITDA was $12.9 million, and we expect to continue driving margin improvement throughout the year.

我們的淨虧損為 2,560 萬美元，年減 2,000 萬美元，主要是因為利息和債務費用下降。調整後 EBITDA 為 1,290 萬美元，我們預計全年將繼續推動利潤率改善。

On page 10, we have both our financial highlights and lowlights. We achieved gross margin improvement despite a number of headwinds. On the balance sheet, current liabilities are down 23% and our interest expense is down 52% year-over-year. While we had a large customer exit with a $27 million contract falling off starting in January, we are seeing revenue stabilization and growth opportunities with both the 96% renewal rate in Q1 along with 85 new logo wins.

第 10 頁列出了我們的財務亮點和低點。儘管面臨許多阻力，我們還是實現了毛利率的改善。在資產負債表上，流動負債較去年同期下降 23%，利息支出較去年同期下降 52%。雖然我們有大量客戶從 1 月開始退出，價值 2700 萬美元的合約到期，但我們看到了收入穩定和成長機會，第一季的續約率為 96%，並贏得了 85 個新標誌。

We are focused on expanding liquidity and managing rising taxes as our NOLs are reduced. Unrestricted cash in Q1 was approximately $10 million after we made our interest payment, while cash flow from operations continues to improve and we're progressing various financing initiatives in parallel.

隨著 NOL 的減少，我們專注於擴大流動性並管理不斷上漲的稅收。在我們支付利息後，第一季的不受限制的現金約為 1000 萬美元，而營運現金流持續改善，我們正在並行推進各種融資計劃。

In 2024, our focus remains on driving revenue stabilization, margin improvement and strategic growth initiatives. We are optimistic about achieving many of our objectives this year as we continue to improve profitability and liquidity. Thank you. We will now open the line up for questions.

2024 年，我們的重點仍然是推動收入穩定、利潤率改善和策略成長計畫。隨著我們繼續提高獲利能力和流動性，我們對今年實現許多目標感到樂觀。謝謝。我們現在開始排隊提問。

(Operator Instructions)

（操作員說明）

Showing no questions.

沒有顯示任何問題。

This concludes our question and answer session. I would like to turn the conference back over to Matt Brown for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給馬特布朗發表閉幕詞。

Well, thank you, everyone, for joining. Look forward to keeping you updated on our future progress, and we'll see you again on the Q2 call.

好的，謝謝大家的加入。期待向您通報我們未來的進展情況，我們將在第二季電話會議上再次見到您。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。