Exela Technologies, Inc. Reports Preliminary Full Year and Fourth Quarter 2021 Results

  • 2021 Revenue of $1,167 million, in-line with guidance
  • Loss per Share of $0.34 in the fourth quarter of 2021
  • On track for $50 million in cash flow improvements in 2022
  • Long-term debt(1) reduced by $454 million
  • Small-and-Medium-Sized Business "SMB" continues robust growth in the fourth quarter of 2021 with DMR customers growing 44% sequentially and DrySign® users growing 135% sequentially

Conference call scheduled for March 11, 2022 at 2:00 PM ET

IRVING, Texas, March 11, 2022 (GLOBE NEWSWIRE) -- Exela Technologies, Inc. ("Exela" or the "Company") XELA, a global business process automation ("BPA") leader, announced today its financial results for the fourth quarter and full year ended December 31, 2021.

"We are pleased with our execution and meeting our latest revenue expectations for the full year 2021 while also producing higher gross profit dollars despite lower year-over-year revenue. As COVID-19 headwinds subside, we are pleased with higher renewal rates, expansion with existing customers, new wins and a healthy pipeline," said Ronald Cogburn, Chief Executive Officer of Exela.

Cogburn continued, "The completion of the debt exchange offer reduced the overall amount of debt and will substantially reduce our debt interest expense. We expect further improvements within our underlying business that will lead to additional improvements in margins and cash flow in future periods."

Full Year Highlights

  • Revenue: Revenue was $1,166.6 million, in-line with guidance in 2021, a decline of 9.7% from $1,292.6 million in 2020 primarily due to lower volumes and transition revenue.
    • Revenue for the Information and Transaction Processing Solutions ("ITPS") segment was $874.2 million, representing a decline of 13.0% year-over-year.
    • Healthcare Solutions revenue was $217.8 million, a decrease of 0.5% year-over-year.
    • Legal and Loss Prevention Services revenue was $74.6 million, representing an increase of 9.1% from 2020.
    • 88% customer renewal rate in 2021.

  • Operating income: Operating income in 2021 was $21.4 million, compared with an operating loss of $16.4 million in 2020. The year-over-year improvement was primarily attributable to better operating performance led by higher gross profit(2), lower SG&A costs and depreciation and amortization expenses, partially offset by higher related party expenses.

  • Net Loss: Net Loss for 2021 was $142.4 million, compared with a net loss of $178.5 million in 2020. The year-over-year improvement in net loss primarily reflects the aforementioned improvement in operating income, lower interest expense and gain on extinguishment of debt.

    • EBITDA: EBITDA(3) in 2021 was $114.5 million; improved compared with EBITDA of $102.9 million in 2020. EBITDA margin for 2021 was 9.8%; improved compared with EBITDA margin of 8.0% in 2020, primarily driven by the higher operating income.

    • Adjusted EBITDA: Adjusted EBITDA(4) in 2021 was $173.3 million, compared with Adjusted EBITDA of $173.4 million in 2020. Adjusted EBITDA margin for 2021 was 14.9% compared with Adjusted EBITDA margin of 13.4% in 2020, an increase of 144 basis points.
  • Capital Expenditures: Capital expenditures for 2021 were 1.4% of revenue compared to 1.2% of revenue in 2020, in-line with guidance.

  • Common Stock: As of December 31, 2021, there were 265,194,961 total shares outstanding and an additional 1,309,187 shares of common stock reserved for issuance for our outstanding preferred shares on an as-converted basis.

  • Total employees: 17,000 total employees as of December 31, 2021, as compared to 19,000, as of December 31, 2020.

Fourth Quarter Highlights

  • Revenue: Revenue for Q4 2021 was $294.3 million, a decline of 6.3% compared to $314.1 million in Q4 2020.
    • Revenue for the ITPS segment was $216.7 million, a decline of 11.0% year-over-year, primarily due to lower volumes and underutilization of resources as a result of COVID-19 and in particular to its impact on the onsite business. Exela believes it is well positioned to see these volumes return in the ITPS segment as COVID-19 impacts subside.
    • Healthcare Solutions revenue was $56.5 million, an increase of 9.5% year-over-year.
    • Legal and Loss Prevention Services revenue was $21.1 million, an increase of 11.6% year-over-year.
    • Q4 2021 DrySign user growth of 135% and DMR customer growth of 44% from Q3 2021.
    • Announced partnership with UK's Post Office, that country's largest provider of transactional banking services with over 11,500 branches to process checks securely and expeditiously.
    • Expanded PCH Global Deployment for one of the world's largest specialty care services insurance companies, highlighting the Company's ability to rapidly implement PCH Global for claims submitted by providers, in this case servicing a multinational managed care.

  • Operating income: Operating loss for Q4 2021 was $10.7 million, compared with operating loss of $13.9 million in Q4 2020. The year-over-year decrease in operating loss was primarily attributable to lower depreciation and amortization expenses, partially offset by lower gross profit and higher SG&A expenses.

  • Net Loss: Net loss for Q4 2021 was $70.6 million, compared with a net loss of $88.9 million in Q4 2020, primarily driven by lower interest expense.

    • EBITDA: EBITDA loss for Q4 2021 was $3.1 million, compared to a loss of $8.6 million in Q4 2020. EBITDA margin for Q4 2021 was negative 1.0%, an increase of 172 basis points from negative 2.8% in Q4 2020.

    • Adjusted EBITDA: Adjusted EBITDA for Q4 2021 was $39.5 million, an increase of 6.4% compared to $37.2 million in Q4 2020. Adjusted EBITDA margin for Q4 2021 was 13.4%, an increase of 160 basis points from 11.8% in Q4 2020 and flat from 13.0% in Q3 2021.
  • Capital Expenditures: Capital expenditures for Q4 2021 were 2.9% of revenue compared to 2.0% of revenue in Q4 2020.

Key additional Highlights

Expanding financial flexibility: As of December 31, 2021, Exela raised a total of $407 million in gross proceeds from equity offerings.  In accordance with Exela's plan to strategically reduce its debt and associated interest expense obligations as well as explore ways to invest in its growth, Exela used proceeds from its equity offerings to repurchase or repay an aggregate principal amount of $438.8 million of its debt as of December 31, 2021 resulting in a year-over-year reduction in our Long-term debt of $454 million.

Exela expects its annual operating cash flow to improve by approximately $50 million in 2022.

Today Exela announced the successful completion of its previously announced offer to exchange shares of its Common Stock for its 6.00% Series B Cumulative Convertible Perpetual Preferred Stock (the "Series B Preferred Stock"), with each 20 shares of Common Stock being exchanged for one share of Series B Preferred Stock having a liquidation preference of $25.00 per share (the "Offer"). Pursuant to the Offer, 17,676,880 shares of Common Stock (excluding shares tendered pursuant to guaranteed delivery procedures) were validly tendered for exchange and not withdrawn as of the Expiration Date. Exela will exchange all such shares of Common Stock for a total of 883,844 shares of Series B Preferred Stock.      

Exela plans to continue working on expanding its financial flexibility with the objective to improve consolidated cash flows from all activities.

Below are the notes referenced above:
(1) – Long-term debt is defined as Senior Secured Term loan, Senior Secured 2023 Notes and Senior Secured 2026 Notes.
(2) – Gross profit is defined as revenue less cost of revenue excluding depreciation and amortization.
(3) – EBITDA is a non-GAAP measure. A reconciliation of EBITDA is attached to this release.
(4) – Adjusted EBITDA is a non-GAAP measure. A reconciliation of Adjusted EBITDA is attached to this release.

Earnings Conference Call and Audio Webcast

Exela will host a conference call to discuss its fourth quarter and full year 2021 financial results at 2:00 p.m. ET on March 11, 2022. To access this call, dial 833-255-2831 or +1-412-902-6724 (international). A replay of this conference call will be available through March 18, 2022 at 877-344-7529 or +1-412-317-0088 (international). The replay passcode is 3760890.

Exela invites all investors to ask questions that they would like addressed on the conference call. We ask individual investors to submit questions via email to IR@exelatech.com.

A live webcast of this conference call will be available on the "Investors" page of the Company's website (www.exelatech.com). A supplemental slide presentation that accompanies this call and webcast can be found on the investor relations website (http://investors.exelatech.com/) and will remain available after the call.  

Final Results
The financial results described above are preliminary, unaudited and represent the most recent current information available to Exela management. Exela's actual results may differ from these estimated financial results, including due to the completion of its financial closing procedures, final adjustments that may arise between the date of this press release and the time that financial results for the fourth quarter of 2021 are finalized, and such differences may be material. In addition, these financial results do not reflect important limitations, qualifications and details that will be included in the full financial statements to be included in the Company's Form 10-K to be filed with the U.S. Securities and Exchange Commission.

About Exela
Exela 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 over 17,000 employees operating in 23 countries, Exela rapidly deploys integrated technology and operations as an end-to-end digital journey partner.

Find out more at www.exelatech.com

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.

About Non-GAAP Financial Measures: This press release includes constant currency, EBITDA and Adjusted EBITDA, each of which is a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Exela believes that the presentation of these non-GAAP financial measures will provide useful information to investors in assessing our financial performance, results of operations and liquidity and allows investors to better understand the trends in our business and to better understand and compare our results. Exela's board of directors and management use constant currency, EBITDA and Adjusted EBITDA to assess Exela's financial performance, because it allows them to compare Exela's operating performance on a consistent basis across periods by removing the effects of Exela's capital structure (such as varying levels of debt and interest expense, as well as transaction costs resulting from the combination of Quinpario Acquisition Corp. 2, SourceHOV Holdings, Inc. and Novitex Holdings, Inc. on July 12, 2017 (the "Novitex Business Combination") and capital markets-based activities). Adjusted EBITDA also seeks to remove the effects of integration and related costs to achieve the savings, any expected reduction in operating expenses due to the Novitex Business Combination, asset base (such as depreciation and amortization) and other similar non-routine items outside the control of our management team.  Optimization and restructuring expenses and merger adjustments are primarily related to the implementation of strategic actions and initiatives related to the Novitex Business Combination. All of these costs are variable and dependent upon the nature of the actions being implemented and can vary significantly driven by business needs. Accordingly, due to that significant variability, we exclude these charges since we do not believe they truly reflect our past, current or future operating performance. The constant currency presentation excludes the impact of fluctuations in foreign currency exchange rates. We calculate constant currency revenue and Adjusted EBITDA on a constant currency basis by converting our current-period local currency financial results using the exchange rates from the corresponding prior-period and compare these adjusted amounts to our corresponding prior period reported results. Exela does not consider these non-GAAP measures in isolation or as an alternative to liquidity or financial measures determined in accordance with GAAP. A limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Exela's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures and therefore the basis of presentation for these measures may not be comparable to similarly-titled measures used by other companies. These non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP. Net loss is the GAAP measure most directly comparable to the non-GAAP measures presented here. For reconciliation of the comparable GAAP measures to these non-GAAP financial measures, see the schedules attached to this release.

Forward-Looking Statements: Certain 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 those discussed under the heading "Risk Factors" in the Annual Report. 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/

Twitter: @ExelaTech

LinkedIn: /exela-technologies

Facebook: @exelatechnologies

Instagram: @exelatechnologies

The 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 Kondaveeti
E: vincent.kondaveeti@exelatech.com

Mary Beth Benjamin
E: IR@exelatech.com

Source: Exela Technologies, Inc.

Exela Technologies, Inc. and Subsidiaries
Consolidated Balance Sheet
As of December 31, 2021
(UNAUDITED)
(in thousands of United States dollars except share and per share amounts)

   December 31, 
   2021  2020 
 Assets       
 Current assets      
 Cash and cash equivalents $20,775  $68,221 
 Restricted cash  27,285   2,088 
 Accounts receivable, net of allowance for doubtful accounts of $6,050 and $5,647, respectively  184,102   206,868 
 Related party receivables and prepaid expenses  715   711 
 Inventories, net  15,215   14,314 
 Prepaid expenses and other current assets  31,799   31,091 
 Total current assets  279,891   323,293 
 Property, plant and equipment, net of accumulated depreciation of $196,683 and $193,760, respectively  73,449   87,851 
 Operating lease right-of-use assets, net  53,937   68,861 
 Goodwill  358,323   359,781 
 Intangible assets, net  244,539   292,664 
 Deferred income tax assets  2,109   6,606 
 Other noncurrent assets  24,775   18,723 
 Total assets $1,037,023  $1,157,779 
        
 Liabilities and Stockholders' Equity (Deficit)      
 Liabilities      
 Current liabilities      
 Accounts payable $61,744  $76,027 
 Related party payables  1,484   97 
 Income tax payable  3,551   2,466 
 Accrued liabilities  113,519   126,399 
 Accrued compensation and benefits  60,860   63,467 
 Accrued interest  10,075   48,769 
 Customer deposits  17,707   21,277 
 Deferred revenue  16,617   16,377 
 Obligation for claim payment  46,902   29,328 
 Current portion of finance lease liabilities  6,683   12,231 
 Current portion of operating lease liabilities  15,923   18,349 
 Current portion of long-term debts  144,828   39,952 
 Total current liabilities  499,893   454,739 
 Long-term debt, net of current maturities  1,104,399   1,498,004 
 Finance lease liabilities, net of current portion  9,156   13,287 
 Pension liabilities, net  28,383   35,515 
 Deferred income tax liabilities  11,594   9,569 
 Long-term income tax liabilities  3,201   2,759 
 Operating lease liabilities, net of current portion  41,170   56,814 
 Other long-term liabilities  5,999   13,624 
 Total liabilities  1,703,795   2,084,311 
 Commitments and Contingencies (Note 14)      
        
 Stockholders' equity (deficit)      
 Common stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 267,646,667 shares issued and 265,194,961 shares outstanding at December 31, 2021 and 51,693,931 shares issued and 49,242,225 shares outstanding at December 31, 2020  37   15 
 Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 2,778,111 shares issued and outstanding at December 31, 2021 and 3,290,050 shares issued and outstanding at December 31, 2020  1   1 
 Additional paid in capital  838,853   446,739 
 Less: Common Stock held in treasury, at cost; 2,451,706 shares at December 31, 2021 and December 31, 2020  (10,949)  (10,949)
 Equity-based compensation  56,123   52,183 
 Accumulated deficit  (1,532,428)  (1,390,038)
 Accumulated other comprehensive loss:      
 Foreign currency translation adjustment  (7,463)  (7,419)
 Unrealized pension actuarial losses, net of tax  (10,946)  (17,064)
 Total accumulated other comprehensive loss  (18,409)  (24,483)
 Total stockholders' deficit  (666,772)  (926,532)
 Total liabilities and stockholders' deficit $1,037,023  $1,157,779 


Exela Technologies, Inc. and Subsidiaries
Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019
(UNAUDITED)
(in thousands of United States dollars except share and per share amounts)

         
 Years ended December 31, 
 2021     2020     2019 
Revenue$1,166,606  $1,292,562  $1,562,337 
Cost of revenue (exclusive of depreciation and amortization) 889,095   1,023,544   1,224,735 
Selling, general and administrative expenses (exclusive of depreciation and amortization) 169,781   186,104   198,864 
Depreciation and amortization 77,150   93,953   100,903 
Impairment of goodwill and other intangible assets -   -   349,557 
Related party expense 9,191   5,381   9,501 
Operating profit (loss) 21,389   (16,420)  (321,223)
Other expense (income), net:        
Interest expense, net 168,048   173,878   163,449 
Debt modification and extinguishment costs (gain), net (16,689)  9,589   1,404 
Sundry expense (income), net 363   (153)  969 
Other expense (income), net 401   (34,788)  14,429 
Net loss before income taxes (130,734)  (164,946)  (501,474)
Income tax expense (11,656)  (13,584)  (7,642)
Net loss$(142,390) $(178,530) $(509,116)
Cumulative dividends for Series A Preferred Stock (1,576)  (1,309)  (3,309)
Net loss attributable to common stockholders$(143,966) $(179,839) $(512,425)
Loss per share:        
Basic and diluted$(1.22) $(3.66) $(10.55)


Exela Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (UNAUDITED)
For the years ended December 31, 2021, 2020 and 2019
(UNAUDITED)
(in thousands of United States dollars unless otherwise stated)

  Years ended December 31, 
  2021  2020  2019 
Cash flows from operating activities         
Net loss $(142,390) $(178,530) $(509,116)
Adjustments to reconcile net loss         
Depreciation and amortization  77,150   93,953   100,903 
Original issue discount and debt issuance cost amortization  16,319   15,117   11,777 
Debt modification and extinguishment costs (gain), net  (30,613)  8,296   1,049 
Impairment of goodwill and other intangible assets  -   -   349,557 
Provision for doubtful accounts  2,714   422   4,304 
Deferred income tax provision  6,649   7,940   1,093 
Share-based compensation expense  3,940   2,846   7,827 
Unrealized foreign currency losses  173   (414)  (511)
Gain on sale of assets  (960)  (43,338)  556 
Fair value adjustment for interest rate swap  (125)  (375)  4,337 
Change in operating assets and liabilities, net of effect from acquisitions         
Accounts receivable  17,438   54,538   4,410 
Prepaid expenses and other assets  (1,597)  (1,379)  (4,825)
Accounts payable and accrued liabilities  (61,068)  12,015   (19,588)
Related party payables  1,382   (353)  (14,339)
Additions to outsource contract costs  (546)  (519)  (1,285)
Net cash used in operating activities  (111,534)  (29,781)  (63,851)
          
Cash flows from investing activities         
Purchase of property, plant and equipment  (14,574)  (11,663)  (14,360)
Additions to internally developed software  (1,954)  (3,825)  (6,182)
Cash paid for acquisition, net of cash received  -   (12,500)  (5,000)
Cash paid for earnouts  -   (700)  - 
Proceeds from sale of assets  7,267   50,126   360 
Net cash provided by (used in) investing activities  (9,261)  21,438   (25,182)
          
Cash flows from financing activities         
Proceeds from issuance of Common Stock from private placement  25,065   -   - 
Proceeds from issuance of Common Stock from at the market offerings  379,963   -   - 
Proceeds from director's equity contribution  269   -   - 
Repurchases of Common Stock  -   -   (3,480)
Cash paid for equity issuance costs from at the market offerings  (13,423)  -   - 
Borrowings under factoring arrangement and Securitization Facilities  142,501   297,673   68,283 
Principal repayment on borrowings under factoring arrangement and Securitization Facilities  (144,965)  (203,841)  (64,976)
Cash paid for withholding taxes on vested RSUs  -   (7)  (223)
Lease terminations  (1,303)  (337)  (318)
Cash paid for debt issuance costs  (1,181)  (16,205)  (7)
Principal payments on finance lease obligations  (11,471)  (12,758)  (20,465)
Borrowings from senior secured revolving facility  11,000   29,750   206,500 
Repayments on senior secured revolving facility  (55)  (14,200)  (141,500)
Proceeds from issuance of 2026 Notes  3,574   -   - 
Proceeds from senior secured term loans  -   -   29,850 
Repayments on senior secured term loan and 2023 Notes as part of debts exchanges  (309,305)  -   - 
Borrowings from other loans  126,352   29,260   39,153 
Cash paid for debt repurchases  (71,184)  -   - 
Principal repayments on senior secured term loans and other loans  (37,186)  (45,973)  (53,678)
Net cash provided by financing activities  98,651   63,362   59,139 
Effect of exchange rates on cash  (105)  1,191   139 
Net increase (decrease) in cash and cash equivalents   (22,249)  56,210   (29,755)
Cash, restricted cash, and cash equivalents         
Beginning of period  70,309   14,099   43,854 
End of period $48,060  $70,309  $14,099 
Supplemental cash flow data:         
Income tax payments, net of refunds received $3,765  $2,695  $7,882 
Interest paid  188,802   152,678   144,456 
Noncash investing and financing activities:         
Assets acquired through right-of-use arrangements  3,270   4,372   10,732 
Leasehold improvements funded by lessor  125   -   - 
Settlement gain on related party payable to Ex-Sigma 2  -   1,287   - 
Accrued capital expenditures  1,652   2,124   1,402 

Exela Technologies
Schedule 1: Fourth Quarter & Full Year 2021 vs. Fourth Quarter & Full Year 2020 Financial Performance
(UNAUDITED)

          
          
 Q4-2021Q4-2020Increase (Decrease)
Y/Y ($ mn)
Increase (Decrease)
Y/Y (%)
 FY2021FY2020Increase (Decrease)
Y/Y
Increase (Decrease)
Y/Y (%)
          
Information and Transaction Processing Solutions216.7 243.5 (26.8) (11.0%) 874.2 1,005.0 (130.8) (13.0%)
Healthcare Solutions56.5 51.6 4.9 9.5% 217.8 219.0 (1.2) (0.5%)
Legal and Loss Prevention Services21.1 18.9 2.2 11.6% 74.6 68.4 6.2 9.1%
Total Revenue294.3 314.1 (19.8) (6.3%) 1,166.6 1,292.6 (126.0) (9.7%)
          
Gross profit58.6 59.1 (0.5) (0.8%) 277.5 269.0 8.5 3.2%
Gross profit margin19.9%18.8%1.1%110 bps 23.8%20.8%3.0%298 bps
          
Operating (loss) income(10.7)(13.9)3.2  (23.3%) 21.4 (16.4)37.8  (230.3%)
Operating margin(3.6%)(4.4%)0.8%80 bps 1.8%(1.3%)3.1%310 bps
          
Net income (loss)(70.6)(88.9)18.2  (20.5%) (142.4)(178.5)36.1  (20.2%)
Net income margin(24.0%)(28.3%)4.3%430 bps (12.2%)(13.8%)1.6%161 bps
          
EBITDA(3.1)(8.6)5.6  (64.7%) 114.5 102.9 11.6 11.3%
EBITDA Margin(1.0%)(2.8%)1.7%172 bps 9.8%8.0%1.9%185 bps
          
Adjusted EBITDA39.5 37.2 2.4 6.4% 173.3 173.4 (0.1)0.0%
Adjusted EBITDA margin13.4%11.8%1.6%160 bps 14.9%13.4%1.4%144 bps
          

Exela Technologies
Schedule 2: Reconciliation of Adjusted EBITDA and constant currency revenues
(UNAUDITED)

              
  Reconciliation of Non-GAAP Financial Measures to GAAP Measures         
              
              
  Non-GAAP constant currency revenue reconciliation           
  ($ in millions) Three months ended Year ended 
   31-Dec-21 31-Dec-20 30-Sep-21 31-Dec-21 31-Dec-20 
  Revenues, as reported (GAAP) $294.3  $314.1  $279.2  $1,166.6  $1,292.6  
  Foreign currency exchange impact (1)  1.6     (1.4)   (10.4)    
  Revenues, at constant currency (Non-GAAP) $295.9  $314.1  $277.9  $1,156.3  $1,292.6  
              
  (1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the three months and year ended December 31, 2020, to the revenues during the corresponding period in 2021. 
              
              
              
  Reconciliation of Adjusted EBITDA           
  ($ in millions) Three months ended Year ended 
   31-Dec-21 31-Dec-20 30-Sep-21 31-Dec-21 31-Dec-20 
  Net loss (GAAP)  ($70.6)   ($88.9)   ($13.2)   ($142.4)   ($178.5)  
  Interest expense  40.3   44.2   41.8   168.0   173.9  
  Taxes  8.2   10.1   1.4   11.7   13.6  
  Depreciation and amortization  19.0   25.8   19.1   77.1   94.0  
  EBITDA (Non-GAAP)  ($3.1)   ($8.6)  $49.1  $114.5  $102.9  
  Transaction and integration costs  7.9   4.9   1.9   15.9   16.6  
  Gain / loss on derivative instruments  (0.8)   0.7   -   (0.9)   0.2  
  Other Charges / (gains)  28.1   30.7   (19.3)   21.6   8.0  
  Sub-Total (Adj. EBITDA before O&R) $32.3  $27.7  $31.7  $151.0  $127.8  
  Optimization and restructuring expenses  7.3   9.5   4.7   22.2   45.6  
  Adjusted EBITDA (Non-GAAP) $39.5  $37.2  $36.4  $173.3  $173.4  
              
  (1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the three months and year ended December 31, 2020, to the revenues during the corresponding period in 2021. 
              

Posted In: EarningsPress Releases

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