3290050P5DP3D0.5P1YP2Y0001620179--12-312020Q3falseExela Technologies, Inc.42942331445000000001620179us-gaap:WarrantMemberus-gaap:IPOMember2020-09-300001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2019-01-012019-12-310001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMember2016-01-012016-12-310001620179xela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2016-01-012016-12-310001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMember2015-01-012015-12-310001620179xela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2015-01-012015-12-310001620179xela:FirstAmendmentToFirstLienCreditAgreementMember2018-07-130001620179xela:SourcehovHoldingsIncMemberus-gaap:MarketValueGuaranteeMemberus-gaap:CommonStockMember2017-09-212017-09-210001620179xela:MasterServiceAgreementMemberxela:HandsonGlobalManagementMember2020-01-012020-09-300001620179xela:CreditAgreementMember2020-09-300001620179xela:CreditAgreementMember2020-05-180001620179us-gaap:RevolvingCreditFacilityMember2018-07-132018-07-130001620179xela:PetitionersMemberxela:SourcehovHoldingsIncMember2020-01-302020-01-300001620179xela:PetitionersMembersrt:MinimumMemberxela:SourcehovHoldingsIncMember2017-09-210001620179xela:PetitionersMembersrt:MaximumMemberxela:SourcehovHoldingsIncMember2017-09-210001620179srt:MinimumMemberxela:UKPensionPlanMember2020-01-012020-09-300001620179srt:MinimumMemberxela:NorwayPensionPlanMember2020-01-012020-09-300001620179srt:MinimumMemberxela:AsterionPensionPlanMember2020-01-012020-09-300001620179srt:MinimumMemberus-gaap:UnfundedPlanMemberxela:GermanPensionPlanMember2020-01-012020-09-300001620179us-gaap:SecuredDebtMember2020-09-300001620179xela:PetitionersMemberxela:ExSigma2LLCMember2020-03-3100016201792020-03-272020-03-270001620179xela:ExSigma2LLCMember2019-10-012019-12-310001620179us-gaap:SecuredDebtMemberus-gaap:BaseRateMember2017-07-122017-07-120001620179us-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2017-07-122017-07-120001620179us-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2017-07-122017-07-120001620179us-gaap:SecuredDebtMember2017-07-122017-07-120001620179us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001620179xela:SourcehovHoldingsIncMember2020-03-162020-03-160001620179us-gaap:TradeNamesMember2019-01-012019-12-310001620179us-gaap:SeriesAPreferredStockMemberus-gaap:CommonStockMember2020-01-012020-09-300001620179us-gaap:CommonStockMemberus-gaap:CommonStockMember2020-01-012020-09-300001620179us-gaap:CommonStockMember2019-07-012019-09-300001620179us-gaap:CommonStockMember2019-01-012019-09-300001620179xela:AccountsReceivableSecuritizationFacilityMember2020-05-180001620179us-gaap:TreasuryStockMember2020-01-012020-03-3100016201792017-11-080001620179us-gaap:TreasuryStockMember2019-04-012019-06-300001620179us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001620179us-gaap:CommonStockMember2019-04-012019-06-300001620179xela:EquityBasedCompensationMember2020-09-300001620179us-gaap:RetainedEarningsMember2020-09-300001620179us-gaap:AdditionalPaidInCapitalMember2020-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-09-300001620179xela:EquityBasedCompensationMember2020-06-300001620179us-gaap:RetainedEarningsMember2020-06-300001620179us-gaap:AdditionalPaidInCapitalMember2020-06-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-06-3000016201792020-06-300001620179xela:EquityBasedCompensationMember2020-03-310001620179us-gaap:RetainedEarningsMember2020-03-310001620179us-gaap:AdditionalPaidInCapitalMember2020-03-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2020-03-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-03-3100016201792020-03-310001620179xela:EquityBasedCompensationMember2019-12-310001620179us-gaap:RetainedEarningsMember2019-12-310001620179us-gaap:AdditionalPaidInCapitalMember2019-12-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-12-310001620179xela:EquityBasedCompensationMember2019-09-300001620179us-gaap:RetainedEarningsMember2019-09-300001620179us-gaap:AdditionalPaidInCapitalMember2019-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2019-09-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-09-300001620179xela:EquityBasedCompensationMember2019-06-300001620179us-gaap:RetainedEarningsMember2019-06-300001620179us-gaap:AdditionalPaidInCapitalMember2019-06-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2019-06-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-06-3000016201792019-06-300001620179xela:EquityBasedCompensationMember2019-03-310001620179us-gaap:RetainedEarningsMember2019-03-310001620179us-gaap:AdditionalPaidInCapitalMember2019-03-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2019-03-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-03-3100016201792019-03-310001620179xela:EquityBasedCompensationMember2018-12-310001620179us-gaap:RetainedEarningsMember2018-12-310001620179us-gaap:AdditionalPaidInCapitalMember2018-12-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2018-12-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2018-12-310001620179us-gaap:TreasuryStockMember2020-04-012020-06-300001620179us-gaap:CommonStockMember2020-04-012020-06-300001620179us-gaap:TreasuryStockMember2020-09-300001620179us-gaap:PreferredStockMember2020-09-300001620179us-gaap:CommonStockMember2020-09-300001620179us-gaap:TreasuryStockMember2020-06-300001620179us-gaap:PreferredStockMember2020-06-300001620179us-gaap:CommonStockMember2020-06-300001620179us-gaap:TreasuryStockMember2020-03-310001620179us-gaap:PreferredStockMember2020-03-310001620179us-gaap:CommonStockMember2020-03-310001620179us-gaap:TreasuryStockMember2019-12-310001620179us-gaap:PreferredStockMember2019-12-310001620179us-gaap:CommonStockMember2019-12-310001620179us-gaap:TreasuryStockMember2019-09-300001620179us-gaap:PreferredStockMember2019-09-300001620179us-gaap:CommonStockMember2019-09-300001620179us-gaap:TreasuryStockMember2019-06-300001620179us-gaap:PreferredStockMember2019-06-300001620179us-gaap:CommonStockMember2019-06-300001620179us-gaap:TreasuryStockMember2019-03-310001620179us-gaap:PreferredStockMember2019-03-310001620179us-gaap:CommonStockMember2019-03-310001620179us-gaap:TreasuryStockMember2018-12-310001620179us-gaap:PreferredStockMember2018-12-310001620179us-gaap:CommonStockMember2018-12-310001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2020-09-300001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2019-12-310001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2020-01-012020-09-300001620179us-gaap:RestrictedStockUnitsRSUMemberxela:SourcehovHoldingsIncMemberxela:LongTermIncentivePlanMember2017-07-120001620179us-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2018-01-172018-01-170001620179us-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2020-01-012020-09-300001620179us-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2019-01-012019-12-310001620179us-gaap:RestrictedStockUnitsRSUMemberxela:LongTermIncentivePlanMember2020-09-300001620179us-gaap:RestrictedStockUnitsRSUMemberxela:LongTermIncentivePlanMember2017-07-120001620179us-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2020-09-300001620179us-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2019-12-310001620179srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2020-01-012020-09-300001620179srt:MinimumMemberus-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2020-01-012020-09-300001620179srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMemberxela:StockIncentivePlan2018Member2020-01-012020-09-300001620179srt:MaximumMemberus-gaap:EmployeeStockOptionMemberxela:StockIncentivePlan2018Member2020-01-012020-09-300001620179us-gaap:WarrantMemberus-gaap:IPOMember2020-01-012020-09-300001620179srt:MaximumMemberxela:MasterServiceAgreementMemberxela:ManagementHoldingsMember2020-01-012020-09-300001620179srt:MaximumMemberxela:EquipmentMaintenanceAgreementMemberxela:EvertecGroupLLCMember2020-01-012020-09-300001620179xela:MasterServiceAgreementMemberxela:DimondResortsCentralizedServicesCompanyMember2020-01-012020-09-300001620179xela:MasterServiceAgreementMemberxela:CaesarsEnterpriseServicesLlcMember2020-01-012020-09-300001620179xela:MasterServiceAgreementMemberxela:AdtLlcMember2020-01-012020-09-300001620179srt:MaximumMemberxela:EquipmentMaintenanceAgreementMemberxela:EvertecGroupLLCMember2019-07-012019-09-300001620179xela:MasterServiceAgreementMemberxela:ManagementHoldingsMember2019-07-012019-09-300001620179xela:MasterServiceAgreementMemberxela:DimondResortsCentralizedServicesCompanyMember2019-07-012019-09-300001620179xela:MasterServiceAgreementMemberxela:CaesarsEnterpriseServicesLlcMember2019-07-012019-09-300001620179xela:MasterServiceAgreementMemberxela:AdtLlcMember2019-07-012019-09-300001620179xela:MasterServiceAgreementMemberxela:ManagementHoldingsMember2019-01-012019-09-300001620179xela:MasterServiceAgreementMemberxela:CaesarsEnterpriseServicesLlcMember2019-01-012019-09-300001620179xela:MasterServiceAgreementMemberxela:AdtLlcMember2019-01-012019-09-300001620179xela:EquipmentMaintenanceAgreementMemberxela:EvertecGroupLLCMember2019-01-012019-09-300001620179xela:OtherCountriesMemberxela:ITPSSegmentMember2020-07-012020-09-300001620179srt:EuropeMemberxela:ITPSSegmentMember2020-07-012020-09-300001620179country:USxela:LLPSSegmentMember2020-07-012020-09-300001620179country:USxela:ITPSSegmentMember2020-07-012020-09-300001620179country:USxela:HSSegmentMember2020-07-012020-09-300001620179xela:OtherCountriesMember2020-07-012020-09-300001620179srt:EuropeMember2020-07-012020-09-300001620179country:US2020-07-012020-09-300001620179xela:OtherCountriesMemberxela:ITPSSegmentMember2020-01-012020-09-300001620179srt:EuropeMemberxela:ITPSSegmentMember2020-01-012020-09-300001620179country:USxela:LLPSSegmentMember2020-01-012020-09-300001620179country:USxela:ITPSSegmentMember2020-01-012020-09-300001620179country:USxela:HSSegmentMember2020-01-012020-09-300001620179xela:OtherCountriesMember2020-01-012020-09-300001620179srt:EuropeMember2020-01-012020-09-300001620179country:US2020-01-012020-09-300001620179xela:OtherCountriesMemberxela:ITPSSegmentMember2019-07-012019-09-300001620179srt:EuropeMemberxela:ITPSSegmentMember2019-07-012019-09-300001620179country:USxela:LLPSSegmentMember2019-07-012019-09-300001620179country:USxela:ITPSSegmentMember2019-07-012019-09-300001620179country:USxela:HSSegmentMember2019-07-012019-09-300001620179xela:OtherCountriesMember2019-07-012019-09-300001620179srt:EuropeMember2019-07-012019-09-300001620179country:US2019-07-012019-09-300001620179xela:OtherCountriesMemberxela:ITPSSegmentMember2019-01-012019-09-300001620179srt:EuropeMemberxela:ITPSSegmentMember2019-01-012019-09-300001620179country:USxela:LLPSSegmentMember2019-01-012019-09-300001620179country:USxela:ITPSSegmentMember2019-01-012019-09-300001620179country:USxela:HSSegmentMember2019-01-012019-09-300001620179xela:OtherCountriesMember2019-01-012019-09-300001620179srt:EuropeMember2019-01-012019-09-300001620179country:US2019-01-012019-09-300001620179xela:ExpenseReimbursementArrangementMarginLoanMemberxela:ExSigma2LLCMember2020-01-012020-09-300001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2020-07-012020-09-300001620179srt:MaximumMemberxela:ConsultingServicesMemberxela:OakanaHoldingsIncMember2020-07-012020-09-300001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2020-01-012020-09-300001620179xela:MasterServiceAgreementMemberxela:PresidioMember2020-01-012020-09-300001620179xela:ExpenseReimbursementArrangementLegalExpensesMemberxela:ExSigma2LLCMember2020-01-012020-09-300001620179xela:ConsultingServicesMemberxela:OakanaHoldingsIncMember2020-01-012020-09-300001620179xela:SourcehovHoldingsIncMembersrt:MaximumMemberxela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2019-07-012019-09-300001620179srt:MaximumMemberxela:ExpenseReimbursementArrangementLegalExpensesMemberxela:ExSigma2LLCMember2019-07-012019-09-300001620179srt:MaximumMemberxela:ConsultingServicesMemberxela:OakanaHoldingsIncMember2019-07-012019-09-300001620179xela:MasterServiceAgreementMemberxela:PresidioMember2019-07-012019-09-300001620179xela:SourcehovHoldingsIncMemberxela:MasterServiceAgreementMemberxela:EntitiesAffiliatedWithHGMManagedFundsMember2019-01-012019-09-300001620179xela:MasterServiceAgreementMemberxela:PresidioMember2019-01-012019-09-300001620179xela:ExpenseReimbursementArrangementSecondaryOfferingMemberxela:ExSigma2LLCMember2019-01-012019-09-300001620179xela:ExpenseReimbursementArrangementMarginLoanMemberxela:ExSigma2LLCMember2019-01-012019-09-300001620179xela:ExpenseReimbursementArrangementLegalExpensesMemberxela:ExSigma2LLCMember2019-01-012019-09-300001620179xela:ConsultingServicesMemberxela:OakanaHoldingsIncMember2019-01-012019-09-300001620179us-gaap:CostOfSalesMemberxela:DataCaptureAndTechnologyServicesMemberxela:HovServicesLtdMember2020-07-012020-09-300001620179srt:MaximumMemberxela:TravelExpenseMemberxela:HandsonGlobalManagementMember2020-07-012020-09-300001620179us-gaap:CostOfSalesMemberxela:DataCaptureAndTechnologyServicesMemberxela:HovServicesLtdMember2020-01-012020-09-300001620179xela:TravelExpenseMemberxela:HandsonGlobalManagementMember2020-01-012020-09-300001620179us-gaap:CostOfSalesMemberxela:DataCaptureAndTechnologyServicesMemberxela:HovServicesLtdMember2019-07-012019-09-300001620179xela:TravelExpenseMemberxela:HandsonGlobalManagementMember2019-07-012019-09-300001620179us-gaap:CostOfSalesMemberxela:DataCaptureAndTechnologyServicesMemberxela:HovServicesLtdMember2019-01-012019-09-300001620179xela:TravelExpenseMemberxela:HandsonGlobalManagementMember2019-01-012019-09-300001620179srt:MaximumMemberxela:MasterServiceAgreementMemberxela:DimondResortsCentralizedServicesCompanyMember2020-01-012020-09-300001620179xela:MasterServiceAgreementMemberxela:DimondResortsCentralizedServicesCompanyMember2019-01-012019-09-3000016201792019-04-162019-04-160001620179xela:FirstAmendmentToFirstLienCreditAgreementMember2018-07-132018-07-1300016201792018-07-132018-07-130001620179us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberxela:PhysicalRecordsStorageBusinessMember2020-07-222020-07-220001620179us-gaap:SeriesAPreferredStockMember2020-09-300001620179us-gaap:SeriesAPreferredStockMember2019-12-310001620179us-gaap:SeriesAPreferredStockMember2020-07-012020-09-300001620179us-gaap:SeriesAPreferredStockMember2019-07-012019-09-300001620179us-gaap:SeriesAPreferredStockMember2019-01-012019-09-300001620179xela:RepricingTermLoanMember2019-01-012019-09-300001620179xela:RepricingTermLoanMember2018-07-012018-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2020-07-012020-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2020-04-012020-06-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-03-310001620179us-gaap:AccumulatedTranslationAdjustmentMember2019-07-012019-09-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2019-04-012019-06-300001620179us-gaap:AccumulatedTranslationAdjustmentMember2019-01-012019-03-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-07-012020-09-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-04-012020-06-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-01-012020-03-310001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-07-012019-09-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-04-012019-06-300001620179us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-01-012019-03-310001620179us-gaap:MajorityShareholderMember2020-07-012020-09-300001620179us-gaap:MajorityShareholderMember2020-01-012020-09-300001620179us-gaap:MajorityShareholderMember2019-07-012019-09-300001620179us-gaap:MajorityShareholderMember2019-01-012019-09-300001620179us-gaap:RetainedEarningsMember2020-07-012020-09-300001620179us-gaap:RetainedEarningsMember2020-04-012020-06-300001620179us-gaap:RetainedEarningsMember2020-01-012020-03-310001620179us-gaap:RetainedEarningsMember2019-07-012019-09-300001620179us-gaap:RetainedEarningsMember2019-04-012019-06-300001620179us-gaap:RetainedEarningsMember2019-01-012019-03-310001620179xela:RevolverDebtMember2020-09-300001620179xela:OtherDebtMember2020-09-300001620179xela:AccountsReceivableSecuritizationFacilityMember2020-09-300001620179us-gaap:SeniorNotesMember2020-09-300001620179xela:RevolverDebtMember2019-12-310001620179xela:OtherDebtMember2019-12-310001620179us-gaap:SeniorNotesMember2019-12-310001620179us-gaap:RevolvingCreditFacilityMember2018-07-130001620179xela:PetitionersMemberxela:SourcehovHoldingsIncMember2020-03-262020-03-260001620179xela:AccountsReceivableSecuritizationFacilityMember2020-11-060001620179us-gaap:RevolvingCreditFacilityMember2017-07-120001620179us-gaap:RevolvingCreditFacilityMember2020-09-300001620179us-gaap:RevolvingCreditFacilityMember2019-12-310001620179us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001620179us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001620179srt:ScenarioForecastMember2020-01-012020-12-310001620179xela:LegalAndLossPreventionServicesMember2019-01-012019-12-310001620179xela:InformationTransactionProcessingSolutionsMember2020-01-012020-09-300001620179xela:InformationTransactionProcessingSolutionsMember2019-01-012019-12-3100016201792019-01-012019-12-3100016201792018-01-012018-12-310001620179us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001620179us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001620179us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001620179xela:LegalAndLossPreventionServicesMember2020-09-300001620179xela:InformationTransactionProcessingSolutionsMember2020-09-300001620179xela:HealthcareSolutionsMember2020-09-300001620179us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001620179us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001620179us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001620179xela:LegalAndLossPreventionServicesMember2019-12-310001620179xela:InformationTransactionProcessingSolutionsMember2019-12-310001620179xela:HealthcareSolutionsMember2019-12-310001620179xela:LegalAndLossPreventionServicesMember2018-12-310001620179xela:InformationTransactionProcessingSolutionsMember2018-12-310001620179xela:HealthcareSolutionsMember2018-12-310001620179us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberxela:PhysicalRecordsStorageBusinessMember2020-07-012020-09-300001620179us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberxela:PhysicalRecordsStorageBusinessMember2020-01-012020-09-300001620179xela:SourcehovHoldingsIncMember2020-01-012020-09-300001620179xela:SourcehovHoldingsIncMember2020-01-012020-03-310001620179xela:OutsourcedContractCostsMember2020-09-300001620179xela:AssembledWorkforceMember2020-09-300001620179us-gaap:TradeNamesMember2020-09-300001620179us-gaap:SoftwareDevelopmentMember2020-09-300001620179us-gaap:DevelopedTechnologyRightsMember2020-09-300001620179us-gaap:CustomerRelationshipsMember2020-09-300001620179us-gaap:ComputerSoftwareIntangibleAssetMember2020-09-300001620179xela:OutsourcedContractCostsMember2019-12-310001620179xela:AssembledWorkforceMember2019-12-310001620179us-gaap:TradeNamesMember2019-12-310001620179us-gaap:TrademarksMember2019-12-310001620179us-gaap:SoftwareDevelopmentMember2019-12-310001620179us-gaap:DevelopedTechnologyRightsMember2019-12-310001620179us-gaap:CustomerRelationshipsMember2019-12-310001620179us-gaap:ComputerSoftwareIntangibleAssetMember2019-12-310001620179us-gaap:FairValueInputsLevel3Member2020-09-300001620179us-gaap:FairValueInputsLevel3Member2019-12-310001620179us-gaap:FairValueInputsLevel3Member2018-12-310001620179us-gaap:FairValueInputsLevel3Member2020-01-012020-09-300001620179us-gaap:FairValueInputsLevel3Member2019-01-012019-12-310001620179xela:StockIncentivePlan2018Member2020-09-300001620179xela:ExpenseReimbursementArrangementMarginLoanMemberxela:ExSigma2LLCMember2020-09-300001620179xela:Rule14Member2020-09-300001620179xela:Rule14Member2019-12-310001620179xela:OakanaHoldingsIncMember2019-12-310001620179xela:ExSigmaMember2019-12-310001620179xela:ApolloGlobalManagementLlcMember2019-12-310001620179xela:HovServicesLtdMember2020-09-300001620179xela:HandsonGlobalManagementMember2020-09-300001620179xela:HovServicesLtdMember2019-12-310001620179xela:HandsonGlobalManagementMember2019-12-310001620179us-gaap:SeriesAPreferredStockMember2017-07-120001620179us-gaap:UnfundedPlanMemberxela:GermanPensionPlanMember2020-09-300001620179xela:PensionMember2020-07-012020-09-300001620179xela:PensionMember2020-01-012020-09-300001620179xela:PensionMember2019-07-012019-09-300001620179xela:PensionMember2019-01-012019-09-300001620179xela:FirstAmendmentToFirstLienCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2018-07-130001620179xela:SeniorSecuredNotes10.0PercentDue2023Member2020-09-300001620179xela:FirstLienCreditAgreement2017Member2020-09-300001620179xela:SeniorSecuredNotes10.0PercentDue2023Member2019-12-310001620179xela:FirstLienCreditAgreement2017Member2019-12-310001620179us-gaap:SeniorNotesMember2017-07-120001620179us-gaap:SecuredDebtMember2017-07-120001620179xela:AccountsReceivableSecuritizationFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-05-212020-05-210001620179xela:AccountsReceivableSecuritizationFacilityMemberus-gaap:BaseRateMember2020-05-212020-05-210001620179xela:AccountsReceivableSecuritizationFacilityMemberxela:LondonInterbankOfferedRateOneMonthAdjustedMember2020-01-102020-01-100001620179xela:AccountsReceivableSecuritizationFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-102020-01-100001620179xela:AccountsReceivableSecuritizationFacilityMemberus-gaap:FederalFundsEffectiveSwapRateMember2020-01-102020-01-100001620179xela:AccountsReceivableSecuritizationFacilityMemberus-gaap:BaseRateMember2020-01-102020-01-100001620179xela:AccountsReceivableSecuritizationFacilityMember2020-01-102020-01-100001620179xela:FirstAmendmentToFirstLienCreditAgreementMemberxela:LondonInterbankOfferedRateOneMonthAdjustedMember2018-07-132018-07-130001620179xela:FirstAmendmentToFirstLienCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-07-132018-07-130001620179xela:FirstAmendmentToFirstLienCreditAgreementMemberus-gaap:FederalFundsEffectiveSwapRateMember2018-07-132018-07-130001620179xela:FirstAmendmentToFirstLienCreditAgreementMemberus-gaap:BaseRateMember2018-07-132018-07-130001620179us-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2017-07-122017-07-120001620179xela:LLPSSegmentMember2020-07-012020-09-300001620179xela:ITPSSegmentMember2020-07-012020-09-300001620179xela:HSSegmentMember2020-07-012020-09-300001620179xela:LLPSSegmentMember2020-01-012020-09-300001620179xela:ITPSSegmentMember2020-01-012020-09-300001620179xela:HSSegmentMember2020-01-012020-09-300001620179xela:LLPSSegmentMember2019-07-012019-09-300001620179xela:ITPSSegmentMember2019-07-012019-09-300001620179xela:HSSegmentMember2019-07-012019-09-300001620179xela:LLPSSegmentMember2019-01-012019-09-300001620179xela:ITPSSegmentMember2019-01-012019-09-300001620179xela:HSSegmentMember2019-01-012019-09-300001620179us-gaap:CommonStockMember2020-01-012020-03-310001620179us-gaap:SeriesAPreferredStockMember2020-01-012020-03-310001620179us-gaap:PreferredStockMember2020-01-012020-03-310001620179us-gaap:CommonStockMember2020-01-012020-03-310001620179us-gaap:PreferredStockMember2019-07-012019-09-300001620179us-gaap:CommonStockMember2019-07-012019-09-300001620179us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001620179us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001620179us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001620179us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001620179us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001620179us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001620179xela:StockIncentivePlan2018Member2018-01-170001620179us-gaap:WarrantMember2020-09-3000016201792019-09-3000016201792018-12-310001620179us-gaap:SeriesAPreferredStockMember2020-01-012020-09-300001620179us-gaap:WarrantMember2017-07-012017-07-3100016201792019-01-012019-09-300001620179xela:FirstAmendmentToFirstLienCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2018-07-132018-07-130001620179us-gaap:SellingGeneralAndAdministrativeExpensesMemberxela:StockIncentivePlan2018Member2020-07-012020-09-300001620179us-gaap:SellingGeneralAndAdministrativeExpensesMemberxela:StockIncentivePlan2018Member2020-01-012020-09-300001620179us-gaap:SellingGeneralAndAdministrativeExpensesMemberxela:StockIncentivePlan2018Member2019-07-012019-09-300001620179us-gaap:SellingGeneralAndAdministrativeExpensesMemberxela:StockIncentivePlan2018Member2019-01-012019-09-300001620179xela:EquityBasedCompensationMember2020-07-012020-09-3000016201792020-07-012020-09-300001620179xela:EquityBasedCompensationMember2020-04-012020-06-3000016201792020-04-012020-06-300001620179xela:EquityBasedCompensationMember2020-01-012020-03-3100016201792020-01-012020-03-310001620179xela:EquityBasedCompensationMember2019-04-012019-06-3000016201792019-04-012019-06-300001620179xela:EquityBasedCompensationMember2019-01-012019-03-3100016201792019-01-012019-03-310001620179xela:EquityBasedCompensationMember2019-07-012019-09-3000016201792019-07-012019-09-300001620179xela:AccountsReceivableSecuritizationFacilityMember2020-01-1000016201792020-09-3000016201792019-12-3100016201792020-11-0600016201792020-01-012020-09-30xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:purexela:segmentxela:itemxela:Votexela:agreement

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, 2020

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

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 November 6, 2020 the registrant had 147,511,430 shares of Common Stock outstanding.

Exela Technologies, Inc.

Form 10-Q

For the quarterly period ended September 30, 2020

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019

1

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019 (as restated)

2

Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2020 and 2019 (as restated)

3

Condensed Consolidated Statements of Stockholders’ Deficit for the three and nine months ended September 30, 2020 and 2019 (as restated)

4

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (as restated)

6

Notes to the Condensed Consolidated Financial Statements

7

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

33

Item 3. Quantitative and Qualitative Disclosures about Market Risk

49

Item 4. Internal Controls and Procedures

50

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

50

Item 1A. Risk Factors

52

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

52

Item 3. Defaults Upon Senior Securities

52

Item 4. Mine Safety Disclosures

52

Item 5. Other Information

52

Item 6. Exhibits

53

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

As of September 30, 2020 and December 31, 2019

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

September 30, 

December 31, 

2020

2019

    

(Unaudited)

    

(Audited)

Assets

 

  

 

  

Current assets

 

  

 

  

Cash and cash equivalents

$

37,176

$

6,198

Restricted cash

 

6,032

 

7,901

Accounts receivable, net of allowance for doubtful accounts of $5,444 and $4,975, respectively

214,949

261,400

Related party receivables

786

716

Inventories, net

17,428

19,047

Prepaid expenses and other current assets

33,359

23,663

Total current assets

 

309,730

 

318,925

Property, plant and equipment, net of accumulated depreciation of $181,310 and $176,995, respectively

91,846

113,637

Operating lease right-of-use assets, net

67,522

93,627

Goodwill

359,270

359,771

Intangible assets, net

304,958

342,443

Deferred income tax assets

12,192

12,032

Other noncurrent assets

 

24,907

 

17,889

Total assets

$

1,170,425

$

1,258,324

Liabilities and Stockholders' Equity (Deficit)

 

  

 

  

Liabilities

 

  

 

  

Current liabilities

Accounts payable

$

61,788

$

86,167

Related party payables

162

1,740

Income tax payable

1,695

352

Accrued liabilities

109,336

121,553

Accrued compensation and benefits

53,904

48,574

Accrued interest

23,274

48,769

Customer deposits

15,605

27,765

Deferred revenue

18,071

16,282

Obligation for claim payment

36,284

39,156

Current portion of finance lease liabilities

12,599

13,788

Current portion of operating lease liabilities

20,049

25,345

Current portion of long-term debts

 

38,042

 

36,490

Total current liabilities

 

390,809

 

465,981

Long-term debt, net of current maturities

1,491,969

1,398,385

Finance lease liabilities, net of current portion

13,448

20,272

Pension liabilities

24,885

25,681

Deferred income tax liabilities

7,682

7,996

Long-term income tax liabilities

2,808

2,806

Operating lease liabilities, net of current portion

50,085

73,282

Other long-term liabilities

16,202

6,962

Total liabilities

1,997,888

2,001,365

Commitments and Contingencies (Note 8)

 

  

 

  

Stockholders' equity (deficit)

 

  

 

  

Common stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 154,866,550 shares issued and 147,511,430 shares outstanding at September 30, 2020 and 153,638,836 shares issued and 150,851,689 shares outstanding at December 31, 2019

 

15

 

15

Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 3,290,050 shares issued and outstanding at September 30, 2020 and 4,294,233 shares issued and outstanding at December 31, 2019

1

1

Additional paid in capital

 

446,739

 

445,452

Less: Common Stock held in treasury, at cost; 7,355,120 shares at September 30, 2020 and 2,787,147 shares at December 31, 2019

(10,949)

(10,949)

Equity-based compensation

51,816

49,336

Accumulated deficit

 

(1,301,187)

 

(1,211,508)

Accumulated other comprehensive loss:

Foreign currency translation adjustment

(6,044)

(7,329)

Unrealized pension actuarial losses, net of tax

(7,854)

(8,059)

Total accumulated other comprehensive loss

(13,898)

(15,388)

Total stockholders’ deficit

 

(827,463)

 

(743,041)

Total liabilities and stockholders’ deficit

$

1,170,425

$

1,258,324

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, 2020 and 2019

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

(Unaudited)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

    

2019

    

    

2019

    

2020

    

(Restated)

    

2020

    

(Restated)

Revenue

$

305,280

$

373,545

$

978,453

$

1,168,751

Cost of revenue (exclusive of depreciation and amortization)

 

234,222

 

295,445

 

768,548

 

909,877

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

42,837

48,347

140,224

149,186

Depreciation and amortization

22,095

25,079

68,127

76,482

Impairment of goodwill and other intangible assets

97,158

97,158

Related party expense

1,360

1,430

4,058

7,759

Operating income (loss)

4,766

(93,914)

(2,504)

(71,711)

Other expense (income), net:

Interest expense, net

43,612

40,573

129,639

120,235

Debt modification and extinguishment costs

1,404

Sundry expense (income), net

(434)

165

(251)

1,569

Other expense (income), net

(10,414)

406

(45,655)

4,424

Net loss before income taxes

(27,998)

(135,058)

(86,237)

(199,343)

Income tax benefit (expense)

(320)

3,769

(3,440)

(5,689)

Net loss

$

(28,318)

$

(131,289)

$

(89,677)

$

(205,032)

Cumulative dividends for Series A Preferred Stock

(976)

(884)

(394)

(2,712)

Net loss attributable to common stockholders

$

(29,294)

$

(132,173)

$

(90,071)

$

(207,744)

Loss per share:

Basic and diluted

$

(0.20)

$

(0.91)

$

(0.61)

$

(1.43)

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, 2020 and 2019

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

(Unaudited)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

    

2019

    

    

2019

    

2020

    

(Restated)

    

2020

    

(Restated)

Net loss

$

(28,318)

$

(131,289)

$

(89,677)

$

(205,032)

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments

 

343

 

(2,325)

 

1,285

 

(1,221)

Unrealized pension actuarial gains (losses), net of tax

 

(332)

 

291

 

205

 

323

Total other comprehensive loss, net of tax

$

(28,307)

$

(133,323)

$

(88,187)

$

(205,930)

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, 2020 and 2019

(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

Preferred Stock

Treasury Stock

Additional

Equity-Based

Translation

Losses,

Accumulated

Stockholders'

  

Shares

  

Amount

  

Shares

  

Amount

  

Shares

  

Amount

  

Paid in Capital

  

Compensation

  

Adjustment

  

net of tax

  

Deficit

  

Deficit

Balances at January 1, 2019, as restated

150,142,955

$

15

4,569,233

$

1

2,549,185

$

(10,342)

$

445,452

$

41,731

$

(6,423)

$

(9,301)

$

(702,391)

$

(241,258)

Net loss January 1, 2019 to March 31, 2019, as restated

(32,172)

(32,172)

Equity-based compensation

2,798

2,798

Foreign currency translation adjustment

3,392

3,392

Net realized pension actuarial loss, net of tax

(224)

(224)

Balances at March 31, 2019, as restated

150,142,955

$

15

4,569,233

1

2,549,185

$

(10,342)

$

445,452

$

44,529

$

(3,031)

$

(9,525)

$

(734,563)

$

(267,464)

Net loss April 1, 2019 to June 30, 2019, as restated

(41,571)

(41,571)

Equity-based compensation

2,661

2,661

Foreign currency translation adjustment

(2,288)

(2,288)

Net realized pension actuarial gains, net of tax

256

256

RSUs Vested

102,092

Shares repurchased

(237,962)

237,962

(607)

(607)

Balances at June 30, 2019, as restated

150,007,085

$

15

4,569,233

1

2,787,147

$

(10,949)

$

445,452

$

47,190

$

(5,319)

$

(9,269)

$

(776,134)

$

(309,013)

Net loss July 1, 2019 to September 30, 2019, as restated

(131,289)

(131,289)

Equity-based compensation

1,444

1,444

Foreign currency translation adjustment

(2,325)

(2,325)

Net realized pension actuarial gains, net of tax

291

291

RSUs vested

508,390

Withholding of employee taxes on vested RSUs

(223)

(223)

Preferred shares converted to common

183,389

(150,000)

Balances at September 30, 2019, as restated

150,698,864

$

15

4,419,233

1

2,787,147

$

(10,949)

$

445,452

$

48,411

$

(7,644)

$

(8,978)

$

(907,423)

$

(441,115)

4

Accumulated Other
Comprehensive Loss

Unrealized

Foreign

Pension

Currency

Actuarial

Total

Common Stock

Preferred Stock

Treasury Stock

Additional

Equity-Based

Translation

Losses,

Accumulated

Stockholders'

  

Shares

  

Amount

  

Shares

  

Amount

  

Shares

  

Amount

  

Paid in Capital

  

Compensation

  

Adjustment

  

net of tax

  

Deficit

  

Deficit

Balances at January 1, 2020

150,851,689

$

15

4,294,233

$

1

2,787,147

$

(10,949)

$

445,452

$

49,336

$

(7,329)

$

(8,059)

$

(1,211,508)

$

(743,041)

Net loss January 1, 2020 to March 31, 2020

(12,670)

(12,670)

Equity-based compensation

861

861

Foreign currency translation adjustment

920

920

Net realized pension actuarial gains, net of tax

504

504

Shares returned in connection with the Appraisal Action following repayment of Margin Loan

(4,570,734)

4,570,734

Preferred shares converted to common shares

1,227,714

(1,004,183)

Balances at March 31, 2020

147,508,669

$

15

3,290,050

$

1

7,357,881

$

(10,949)

$

445,452

$

50,197

$

(6,409)

$

(7,555)

$

(1,224,178)

$

(753,426)

Net loss April 1, 2020 to June 30, 2020

(48,691)

(48,691)

Equity-based compensation

921

921

Foreign currency translation adjustment

22

22

Net realized pension actuarial gains, net of tax

33

33

Settlement gain on related party payable to Ex-Sigma 2

1,287

1,287

Adjustment to number of shares withheld in lieu of tax obligation of RSU holders in the year 2018

2,761

(2,761)

Balances at June 30, 2020

147,511,430

$

15

3,290,050

$

1

7,355,120

$

(10,949)

$

446,739

$

51,118

$

(6,387)

$

(7,522)

$

(1,272,869)

$

(799,854)

Net loss July 1, 2020 to September 30, 2020

(28,318)

(28,318)

Equity-based compensation

698

698

Foreign currency translation adjustment

343

343

Net realized pension actuarial loss, net of tax

(332)

(332)

Balances at September 30, 2020

147,511,430

$

15

3,290,050

$

1

7,355,120

$

(10,949)

$

446,739

$

51,816

$

(6,044)

$

(7,854)

$

(1,301,187)

$

(827,463)

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

5

Exela Technologies, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

For the Nine Months Ended September 30, 2020 and 2019

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

(Unaudited)

Nine Months Ended September 30, 

    

    

2019

    

2020

    

(Restated)

Cash flows from operating activities

Net loss

$

(89,677)

$

(205,032)

Adjustments to reconcile net loss

Depreciation and amortization

68,127

76,482

Original issue discount and debt issuance cost amortization

10,979

8,730

Impairment of goodwill and other intangible assets

97,158

Debt modification and extinguishment costs

1,049

Provision for doubtful accounts

415

4,402

Deferred income tax provision

(417)

1,632

Share-based compensation expense

2,480

6,903

Foreign currency remeasurement

(499)

(173)

Loss (gain) on sale of assets

 

(44,868)

 

123

Fair value adjustment for interest rate swap

23

4,965

Change in operating assets and liabilities, net effect from acquisitions:

 

 

Accounts receivable

 

44,197

 

3,501

Prepaid expenses and other assets

(8,012)

2,377

Accounts payable and accrued liabilities

(48,257)

(41,146)

Related party balances

(362)

(5,198)

Additions to outsource contract costs

(289)

(3,130)

Net cash used in operating activities

 

(66,160)

 

(47,357)

Cash flows from investing activities

 

  

 

  

Purchases of property, plant, and equipment

(6,893)

(10,797)

Additions to internally developed software

(2,988)

(5,074)

Cash paid in acquisition, net of cash received

(12,500)

(5,000)

Proceeds from sale of assets

50,126

360

Net cash provided by (used in) investing activities

 

27,745

 

(20,511)

Cash flows from financing activities

 

  

 

Repurchases of Common Stock

(3,480)

Borrowings from other loans

28,626

21,530

Borrowings under factoring arrangement and A/R Facility

166,786

48,748

Principal repayment on borrowings under factoring arrangement and A/R Facility

(84,121)

(49,243)

Cash paid for withholding taxes on vested RSUs

(223)

Proceeds from senior secured term loans

29,850

Lease terminations

(331)

(314)

Cash paid for debt issuance costs

(12,708)

(7)

Borrowings from senior secured revolving facility

29,750

130,500

Repayments on senior secured revolving facility

(14,200)

(91,500)

Principal payments on finance lease obligations

(9,614)

(13,598)

Principal repayments on senior secured term loans and other loans

 

(37,283)

 

(32,996)

Net cash provided by financing activities

 

66,905

 

39,267

Effect of exchange rates on cash

619

(29)

Net increase (decrease) in cash and cash equivalents

 

29,109

 

(28,630)

Cash, restricted cash, and cash equivalents

 

 

Beginning of period

14,099

43,854

End of period

$

43,208

$

15,224