Q1 2024 Exela Technologies Inc Earnings Call
Speaker Change: [music].
Good afternoon, and welcome to the extent what technologies first quarter 'twenty 'twenty four financial results conference call.
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Vincent Kondaveeti: I would now like to turn the conference over to Vincent <unk> head of Investor Relations. Please go ahead.
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 presentation was uploaded to the IR section of our website.
Vincent Kondaveeti: Matt Brown, our interim CFO will be hosting the call.
Part Unfortunately had some travel delays can't dial in.
Today's agenda will largely follow the prior calls with management commentary followed by Q&A.
The matters, we will discuss in today's call 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. So with that I'll turn all over the call to Matt Matt.
Good afternoon, everyone, let's move to slide eight financial highlights.
We reported first quarter revenue is $258 8 million.
Down five 4% year over year, or four 3% pro forma for himself the highest speeds kind of 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.
Vincent Kondaveeti: Sequentially <unk> was down 3% in Q1 due to the loss of a $27 million of low margin contract renewal.
Care solutions was up 4% with continued volume increases.
<unk> was down 12% to project fluctuations.
Q1, gross margins were 22% up 170 basis points year over year, and we continue to focus on driving automation and operational leverage.
Health care and L. P. S margins are up 296 basis points, and 242 basis points year over year, and icts margins relatively flat given the contract exit.
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 reactor that AI and shifting from Capex to Opex as we move our data center infrastructure to the cloud.
Since year end consolidated there for 100000 square feet of real estate and have approximately 340000 square feet of additional consolidations of process.
We've made good progress on savings initiatives, but still have significant opportunity for margin improvement throughout the rest of the year.
We had a net loss of $25 6 million an improvement of 29 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.
On page 10, we got both their financial highlights and all that.
We achieved gross margin improvement despite a number of headwinds.
On the balance sheet current liabilities are down 23% and our interest expense was down 52% year over year.
Well, we had a large customer exit with a $27 million contract falling off start to January.
We are seeing revenue stabilization and growth opportunities both at 96% renewal rate in Q1, along with 85 new logo wins.
We are focused on expanding liquidity and managing rising taxes as our Nols are reduced.
Restricted cash in Q1 was approximately $10 million. After we made our interest payments our cash flow from operations continues to improve and we're progressing various financing initiatives in parallel.
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 lineup for questions.
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Our then one.
Yeah.
Showing no questions. This concludes our question and answer session I would like to turn the conference back over to Matt Brown for any closing remarks.
Matthew T. Brown: Well, thank you everyone for joining.
Matthew T. Brown: Look forward to keeping you updated on our future progress and we'll see you again on the Q2 call.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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