Exela Technologies (NASDAQ:XELA), Inc., a business services provider specializing in process automation, has reported the departure of two board members, according to a recent SEC filing. Marc A. Beilinson and Sharon Chadha have both resigned from the company's board of directors, with their resignations taking effect on October 3, 2024.
The company, listed under the ticker NASDAQ:XELA, filed the regulatory document on Monday, stating that Beilinson announced his intention to step down from the board on October 2, 2024, and Chadha followed with a similar announcement the next day. Both directors have confirmed that their departures are not due to any disagreements with Exela Technologies' operations, policies, or practices.
Beilinson and Chadha's resignations come at a time when the company is navigating the complexities of the business services sector. Their exit does not appear to be related to any internal disputes, which suggests a non-contentious transition for the Irving, Texas-based company.
The company has not yet announced any successors for the departing board members. The impact of these changes on the company's governance and strategic direction remains to be seen. Exela Technologies is known for its offerings in information and transaction processing solutions, which are critical in the current digital transformation era.
As per standard protocol, the information regarding the board member resignations is based on the formal 8-K filing with the Securities and Exchange Commission.
In other recent news, Exela Technologies reported Q1 2024 results with a year-over-year revenue decline of 5.4% to $258.8 million. This decline was partially due to the sale of its high-speed scanner business and the loss of a significant contract.
Despite this, the company saw a substantial reduction in net loss, primarily due to lower interest and debt expenses, with net loss standing at $25.6 million, a $20 million improvement from the previous year. Adjusted EBITDA was reported at $12.9 million.
In another significant development, Exela Technologies announced the retirement of its Special Voting Preferred Stock. This move is part of the company's efforts to streamline its capital structure. The retired shares have returned to the status of authorized and unissued shares of preferred stock.
Furthermore, Exela Technologies has regained compliance with NASDAQ's listing requirements. The company achieved this by conducting its combined 2023 and 2024 Annual Meeting of Stockholders and through a strategic spin-off of Exela Technologies BPA, LLC.
These are among the recent developments that have been unfolding at Exela Technologies.
InvestingPro Insights
As Exela Technologies navigates this transition in its board composition, InvestingPro data provides additional context to the company's current financial situation. With a market capitalization of just $13.11 million, Exela is operating in a challenging environment. The company's revenue for the last twelve months as of Q2 2024 stands at $1.02 billion, but it has experienced a revenue decline of 5.15% over the same period.
InvestingPro Tips highlight some concerns that investors should be aware of. Notably, Exela's short-term obligations exceed its liquid assets, and the company has not been profitable over the last twelve months. These factors may contribute to the volatility in the stock price, which InvestingPro notes has performed poorly over the last decade and has fallen significantly in the past five years.
Despite these challenges, Exela's EBITDA for the last twelve months as of Q2 2024 was $52.77 million, showing a growth of 32.71%. This could indicate some operational improvements, although the company is still facing profitability issues as reflected in its negative operating income of $3.81 million for the same period.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into Exela's financial health and market position. There are 7 additional tips available on the InvestingPro platform, which could be valuable for those looking to make informed decisions about XELA stock in light of the recent board changes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.