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      Exela Technologies Inc. (XELA) Rallies Premarket After CEO Transition News - Stocks Telegraph

      By Gule Rukhsar

      Published on

      April 1, 2022

      9:45 AM UTC

      Exela Technologies Inc. (XELA) Rallies Premarket After CEO Transition News - Stocks Telegraph

      The transaction processing solutions and enterprise information management solutions provider, Exela Technologies Inc. (XELA) is rallying in today’s premarket. Having surged by 26.36% at the last check, the stock is making some big moves at over 1.2 million shares. After having been bearish for a bit, XELA’s recent price surge comes after the company announced its CEO transition yesterday, March 31, 2022. At the time of writing, the stock was trending at $0.5259 in the premarket while it closed the prior session at $0.4162 per share. The earlier session had recorded a loss of 2.57% for the stock.

      It seems investors are looking forward to the next phase of the company.

      Source: Chief Executive Magazine

      XELA’s CEO Transition

      On Thursday, the company announced that its CEO Ronald C. Cogburn will transition from his role on April 30, 2022. Having spent nearly three decades with XELA Mr. Cogburn’s tenure has finally come to an end. In his 30-year career with the company, Mr. Cogburn went from Senior Project Manager at its subsidiary to CEO of SourceHOV which is now known as Exela after it acquired Novitex and merged with Quinpario. He has been in the current role since the company made its debut in July 2017.

      Thus, with the transition of Mr. Cogburn at the end of April, Par Chadha (Executive Chairman) will hold the reins of the company along with XELA’s global senior management.

      What else has been happening?

      The company has recently completed the last of the remaining steps in its balance sheet strengthening initiative previously announced in September 2021. The company’s certain subsidiaries marked the closure of a Revolving Loan Exchange and Prepayment Agreement. Prepaying all of the outstanding amounts under the facility with $50 million cash and $50 million Notes due 2026, the company has no further senior debt maturities in 2022.

      Additionally, the Notes are of the company’s 11.500% First-Priority Senior Secured which are due in 2026.

      XELA’s Financial Analysis

      According to the preliminary results for Q4 2021, XELA’s revenue suffered a decline of 6.3% to $294.3 million in the quarter. While the ITPS segment revenue took a hit from Covid-19, healthcare solutions and legal & loss prevention services revenue both marked a YOY increase.

      On the other hand, the company was able to reduce its net and EBITDA loss in the quarter with net loss standing at $70.6 million and EBITDA loss at $3.1 million. The comparable figures for Q4 2020 were $88.9 million and $8.6 million respectively.

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