Exela Technologies Inc (XELA) 2024 Q2 法說會逐字稿

Good day and welcome to the Exela Technologies second-quarter 2024 earnings conference call. (Operator Instructions)

美好的一天，歡迎參加 Exela Technologies 2024 年第二季財報電話會議。（操作員說明）

I would now like to turn the conference over to David Chalmers, Vice President of Investor Relations. Please go ahead.

我現在想將會議交給投資人關係副總裁 David Chalmers。請繼續。

Thank you, operator, and good afternoon. Welcome to our earnings call to discuss our second-quarter results for the period ended June 30, 2024. Our presentation has been posted to the IR section of our website. On today's call will be Matthew Brown, our Interim Chief Financial Officer.

謝謝您，接線員，下午好。歡迎參加我們的財報電話會議，討論我們截至 2024 年 6 月 30 日的第二季業績。我們的簡報已發佈到我們網站的 IR 部分。我們的臨時財務長馬修布朗（Matthew Brown）將出席今天的電話會議。

Some of the matters we will discuss on today's call are forward-looking and involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties are set forth in our presentation.

我們將在今天的電話會議上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。

Thanks David. Good afternoon, everyone. Let's start on slide 7 with the earnings highlights. We reported second quarter revenues of $245.7 million, down 10% year-over-year or 9.3% pro forma for the sale of the high-speed scanner business. Year-over-year decline was primarily due to 2023 non-renewals, including the large contract we discussed last quarter.

謝謝大衛。大家下午好。讓我們從第 7 張投影片開始，介紹收益亮點。我們報告第二季營收為 2.457 億美元，年減 10%，高速掃描器業務銷售預計下降 9.3%。同比下降主要是由於 2023 年未續約，包括我們上季度討論的大合約。

Sequentially, revenue declined by 5.1%, mostly driven by project fluctuations and volume seasonality. As we continue to focus on driving efficiencies and cost reductions, our margin continues to increase with Q2 gross margins at 23.5%, up 120 basis points year-over-year and 150 basis points sequentially.

隨後，收入下降了 5.1%，主要是由於專案波動和銷售季節性所致。隨著我們繼續專注於提高效率和降低成本，我們的利潤率持續成長，第二季毛利率達到 23.5%，年成長 120 個基點，季增 150 個基點。

Q2 adjusted EBITDA was $13.7 million, but included a $10.1 million write-down, predominantly driven by a partner contract amendment which provides for higher pricing and service expansion that resulted in a non-cash write-down of the original contract assets.

第二季調整後的EBITDA 為1,370 萬美元，但包括1,010 萬美元的減記，主要是由合作夥伴合約修訂推動的，該修訂規定了更高的定價和服務擴展，導致原始合約資產的非現金減記。

Our net loss improved by $4 million this quarter, and we continue to focus on driving incremental savings. We have over $25 million of annualized savings in process, and we are executing daily and optimization of our infrastructure, technology and operational levers.

本季我們的淨虧損減少了 400 萬美元，我們持續致力於推動增量節省。我們每年可節省超過 2500 萬美元，並且每天都在執行和優化我們的基礎設施、技術和營運槓桿。

Moving on to page 8, at the segment level, information and transaction processing solutions declined by 15.2% year-over-year and 11% sequentially. Year-over-year decline was primarily driven by the sale of scanner business, lower EMEA revenues and a 2023 non-renewals discussed previously. Sequentially. The drop is mostly due to project fluctuations and seasonality.

轉到第 8 頁，在細分市場層面，資訊和交易處理解決方案年減 15.2%，季減 11%。年比下降的主要原因是掃描器業務的出售、歐洲、中東和非洲地區收入下降以及先前討論的 2023 年不再續約。依次。下降主要是由於項目波動和季節性。

Healthcare Solutions declined by 1.1% year-over-year and 2.9% sequentially, driven by the amendment to the partner contract mentioned. Legal and Loss Prevention services grew by 6.3% year over year and 45% sequentially. With the strong market and large settlement distribution.

由於上述合作夥伴合約的修訂，醫療保健解決方案年減 1.1%，環比下降 2.9%。法律和防損服務年增 6.3%，季增 45%。具有強勁的市場和龐大的結算分佈。

In terms of margins, we continue to see improvements in health care solutions with the 630 basis points gain year-over-year as we implemented additional technology features and achieved savings flow through ITPS. margins declined by 170 basis points year over year.

在利潤方面，隨著我們實施了額外的技術功能並透過 ITPS 實現了節省流量，我們繼續看到醫療保健解決方案的改進，同比增長了 630 個基點。利潤率較去年同期下降170個基點。

And the lower revenue and LLPS. margins are up 140 basis points year over year with the operational leverage of the settlement administration projects. While SG&A was up 30.5% year-over-year, it includes $10.1 million in write-downs and Q2 FY 23 included the 6.6 million gain on the sale of our high-speed scanner business.

收入和 LLPS 較低。憑藉結算管理專案的營運槓桿，利潤率年增 140 個基點。雖然 SG&A 年成長 30.5%，但其中包括 1,010 萬美元的減記，23 財年第二季包括出售高速掃描器業務帶來的 660 萬美元收益。

Excluding these items, our SG&A was down approximately 18% year-over-year, driven by reductions in legal and professional fees as well as employee related costs.

不包括這些項目，由於法律和專業費用以及員工相關成本的減少，我們的 SG&A 年比下降約 18%。

Moving on to page 9, in terms of highlights and lowlights, we achieved gross margin improvement despite a number of headwinds. We had a few lost renewals, but we are expanding growth opportunities with over $40 million of new ACV won in the quarter, an increase of 50% sequentially and 119 new logos added an increase of 40% sequentially.

轉到第 9 頁，就亮點和低點而言，儘管面臨許多阻力，我們仍實現了毛利率的改善。我們失去了一些續訂，但我們正在擴大成長機會，本季贏得了超過 4000 萬美元的新 ACV，環比增長 50%，並且增加了 119 個新徽標，環比增長 40%。

We ended the quarter with over $30 million in unrestricted cash and made our semi-annual interest payment. We continued to focus on extending liquidity and cash flow from operations continues to improve with over $12 million of positive operating cash flow in the quarter. Our focus for the back half of the year remains on driving revenue stabilization, continued margin improvement and strategic growth initiatives.

本季結束時，我們擁有超過 3000 萬美元的非限制性現金，並支付了半年利息。我們繼續專注於擴大流動性，營運現金流持續改善，本季營運現金流超過 1,200 萬美元。我們下半年的重點仍然是推動營收穩定、利潤率持續改善和策略成長舉措。

Thank you.

謝謝。

We will now open the line for questions.

我們現在將開通提問熱線。

Thank you. (Operator Instructions). Since there are no more questions, no questions. This concludes the conference call for today. Thank you for attending today's presentation. You may now disconnect.

謝謝。（操作員說明）。既然沒有更多的問題了，那就沒有問題了。今天的電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。