XELA - Earnings call transcript Q4 2017 | Exela Technologies, Inc.

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Operator

Good afternoon, ladies and gentlemen. And welcome to the Exela Technologies Fourth Quarter and Year End 2017 Call. My name is Brian; I'll be your host operator on this call. After today's prepared remarks, we will conduct a question-and-answer session. [Operator Instructions] Please note today's event is being recorded. to of meeting Investor like Mathias, to now President Vice Relations. would turn over the Jim I Please go ahead.

Jim Mathias

Vice conference Verma, today's Thanks, our Shrikant Brian. Chief Financial quarter Global XXXX Officer. fourth of the Executive Executive Exela Presenting our Good afternoon Reynolds, and President, today's Finance and Vice and welcome Officer; and Also Finance. year President our Cogburn, on are Sortur, Ron call to Senior Jim Technologies call. Anubhav our on Chief end are call

Following listed being and the available March which will Relations of release Information prepared website available Jim, we on is call questions. Today's Investor made available by remarks Ron replay via is on will is conference broadcast the XX, which today's until Exela this A take Investor section. our press call webcast to our be XXXX. under replay is access on website. the live

events make risks During performance. and today's unknown no current will are statements Exela uncertainties, and These expectations call, regarding and forward-looking We based and to update subject known obligations occur undertake to assumptions. forward-looking this on SEC forward-looking any that financial company's the any reflect refer actual the are could Please for differ to statements filings and with that future cause materially from events the factors call. our after to to results statements. statement

from differ includes cause forward risk to actual materially statement. the XX-K Our factors could that looking results our

Investor our can be between During on call we and on results refer certain our non- discuss course to non-GAAP financial the today's GAAP Relations measures. website. Reconciliations call, of will of we this page found GAAP

Please IR of for and sheet and today's results discussed call in July that the call company's also combined pro which XX, note closed our on of Novitex an section SourceHOV the As results XXXX. investor presentation combination conference are accompanies to business or accessible reflect a this reminder, the forma website. which on financial results fact

begin turning to call Ron the by will over CEO, Cogburn. We

Ron Cogburn

today. afternoon Good Jim. us for joining Thanks and thanks everyone

to on possible highlight trading working back by Exela That year, dedication the placed equally the team into was results. goal. And I whose our rally investment deliver determination made to standalone company highlights is the accomplish women community the of formation trust to in for Looking the the hard on and men important the NASDAQ. and want a our cover few XXXX. our committed

you EBITDA, forma would the guidance full I If achieved X% a to pleased $X.XXX adjusted solid billion. our am XXXX turn that growth revenue accomplishment. begin. year and tremendous We will to pro of both for X, we Slide with finished we particularly ranges year

with XX%. flow $XXX cash adjusted further of million of X.X% further We with generated grew a a EBITDA Our conversion adjusted $XXX of XX%. was which million free margin

and low is X.X% size our was which our CapEx Our organization for complexity. of

revenue million and Our was top six impressive We million our for grew in land and year-over-year. XXX the QX customers XX%. and yield from $XX $XXX in a clients X.X% annual year now between million strategy over million including revenue revenue which results grew revenue. generating remarkable have XXXX which $X expand $X clients XXX was

a presence proprietary countries and the our our we was footprint outbound and communications. for reliance year correspondence and Norway the new technologies. of for graphical significant possible will me continuity claims a in During as Exela automation excuse very which administration benefit win a employee services for procession, of a to want we program, new a perspective, highlight Outsourcing and is time sensitive by combination notable made we Business the Process added business is on Poland. logos business handle benefit but quarter, management I added or five Exela win our in This From and number it the agreement two of which BPA

participate Let's build for we our sales, and end, of investments normal trade what our is been industry large These continues in designed Total with as have groups in the and prospective we innovation as we continuing billion the to in market, state-of-the-art every shows. do of $X.XXX awareness first white customers. is Embracing to for contract marketing XXXX people in were see complexity accelerating introduce day. growth; to Slide well value investing increasing breadth solutions contracts Momentum rates one We've renewal this of growing and We're invest To opened turn as current XXXX Xst, of capability our investing centers. industries. many our Exela simplicity, centers delivering also this to space to and XX%. X. as technologies. January the strategy, opportunities in of within in

low top customer Our our top remaining customers concentration XX the of is at the the X% of And total with total customer revenue. XX% revenue. at

drive per $XX,XXX on increase with for X%. revenue nearly anticipate we revenue employee value the outlook Our our X% XX% X% from Based by while or decreased XX,XXX. platforms to continue solid to XXXX, as XXXX $XX,XXXX results, our FTE Business a as in we Process base growth Automation our to of to all BPA well

XX% $XXX million of forecasting a million $XXX XX%. with XXXX are adjusted be further EBITDA and We to for to and margin between

long-term little tax will call of as second the August code in the in discuss to as our and into recent well outlook we XXXX our business of well-positioned Reynolds to As we With on this our our in a transformation, believe in the revisit drive impact our XXXX to are success for plan value. Jim all later BPA year. our we shareholder outlook quarter accelerate XXXX, we call. changes our rollout the

Now X. to let's turn Slide

of we serve. where financial well significant of our global We're across revenue U.S. XX% insurance industries we among the approximately pro healthcare in during banks, providers largest sectors, These diversified companies nine XX a industries top US in and five top forma and XXXX. presence represented we top Our the the global payers. customers insurance the have services are the are healthcare growing and the

While insurance sale up quarter. the a cycles early the an we we XX large is take customers months, healthcare XXXX, our additional still it and to are Exela process Likewise, requesting although large our business been and that mentioned in number services And propose can automation. to opportunities now. have proposals increase in additional able services featuring financial providers' seeing we've enterprise of payers last to strengths approached for combined leveraging

opportunities. the expand of believe our traction wins. we very ability seeing we probability our in of and And We combination that terms has increase the increased improved are to our pleased relationships with existing are

Automation to X or So is let's which slide. Slide Business turn BPA our Process

strategy in beginnings are simple. With we with results BPO our have to industry, applying complex met is our and and drive but technology outcomes. success our technology improves the Our consistently

to own is XXXX solutions robotics businesses. bring process and our established in drive including focus results business automation to cognitive in to automation them primary Our allowing their our continuing clients

has roughly points As can several achieve around utilized Evidence automation illustration and margin Robotic our years seven of years. RTA Exela the expansion out developed or proprietary the in their been cognitive process technology Automation efficiencies past be greater over Process use many to years. ago. seen automation business Exela for internally

clients in pre-existing Our with to and integrate nature technology are configured modular their platforms. legacy solutions enterprise software seamlessly

front the expand into services of presence apply With there. opportunity the our we of gain the Novitex, to and enabled our office acquisition suite technology

support already what key largest and casualty underwriting business box accuracy their packages, customers automation the locations deploy and was on of pursuing from the exciting be the We more to technology drastically complex [EON], forward alerts. embedded giving Exela's validate, allow and drive which their bots employees the them time run this business suite, they had was efficiency, out; performed largest and the time it that the in, insurers and My all and experts to spend to the The logging make underwriting helping are one front the and sure with Exela. post them their in far the our and data all do accurate. They it tasks how that inside includes departments. at of documents automation that was and with customer databases automation times of more of employees and These they're redundant building process repeatedly property can data error. clear, actively of out organizing speed hundreds pulling completeness business across the a across important support process on-site productive. focus resolutions and data enabled our prepping look industry. review. and rules that automation able employee one They quickly involved so offering up and increase our do process data. of reduction comparing are easier throughout By and time all in, combination. and life RPA tasks, to of deploying robots for by this we workers on underwriters our gathering the and providing extract, a log with insurance systems, consistency, had experience. or to repetitive solution To off-site copy, spending the We specialized rather let Exela's logging BPA were organization to all very tasks making the map than give being can flags knew We many configure analyzing to to automation platform checking underwriters to how came human the to all we're different both in manually an for better package pasting, it example all and various and To though, systems, emails, let's PDFs, our support. to the work this focus box organizing effect outcome the clean had pull business office data, We exceptions.

is a to neatly our automation scale, process to are Now we basis. network. our in business With let's which position global we solutions on our Slide move X, believe employee increased apply

customer services with more embedded our us event clients. Exela's we Many with those we differentiator with partner X,XXX as sites, our a physical makes of of customers. discuss to suite established competitive continue at This our natural have are over clients expanded we Additionally, presence multinational. a valuable step

by Our footprint into our technology our growing key we operations devoting of future our a Development ongoing of employ faced to and managing significant expand our changes is workforce and we IT. the to the proprietary IT opportunity and a an strategy. effective a component important technology professionals of building, daily part With employee have approximately global success. growth end, clients. management X,XXX is clients of our global To proprietary addresses that implementing that globally

clients our over US. XX% global, revenue are comes from the of Although the

and America. North of half technology-based on result our a applying based our in with solutions here is over As focus workforce

long-term driving shareholder to XXXX; turn here what let's XX. our on for Slide Now value. exciting Building and eventful is XXXX an focus was

BPA, expand with the start our mover. our goal leadership model to position And locations. business leverage BPA the a include Let's was first leverage off-site of to initiative our as our to and and on-site

So update. here's the

representing approximately next We BPA. to was have initiative XX% XX% our of increase and XXX was awareness. our awareness leverage revenue, our The that customers customer to scale improve customer year. and on that's total goal The this up

update. investments the Here's two We've Centers and we've in Innovation accelerated and to people opened technology.

were to savings delivering initiatives Let's What on maintain the focus talk identified initiatives. the the goals about savings. and our

as the enables were $XX opportunistic opportunistic guidance update. lastly, initiatives Prudent savings look here's million in in update? million initiatives. And strategic remainder with the at XXXX come accretive up. to $XX in financial and than the they M&A, assumptions what We $XX of What's flexibility includes have the cost acquisitions that and our accretive XXXX the delivered So actions. more XXXX. tuck-in saving for goals. We million to

investing position Jim? grow to We're value. will We position Jim hand centers who to areas financial by Exela our and clients, both organic to Reynolds, detail. business for sustainable results our and have drive our technology of us would and to call to greater we our and growth, inorganic. over check near to I discuss in additional a long-term within value will technology believe shareholder the in people which innovation significant to like including provide our Come opportunity and vote to best you. one out now key And

Jim Reynolds

And Slide XX, three of an details. the On we be I'll quarter Ron. Thanks results. the have overview following financial walking XXXX fourth sides, the of through

million, the compared QX, were and up XXXX, Let's turn quarter $XXX.X QX for Revenues X.X%, sequentially XX. from of X.X% million up $XXX.X Slide to in with XXXX. fourth

within year-over-year year-over-year. IPPS a increase Solutions, reporting Transaction our Information The in on of was basis. IPPS All units year-over-year both revenue and grew grew $XXX.X IPPS million services of existing and and also revenue quarter increased revenue and million Healthcare grew sequential driven expansion segment million customers. X.X%. in $XX.X was XXXX, sequentially Solutions with Processing XX.X% up $XX.X our QX, from in the volumes was XXXX. compared and by million third of revenue $XX.X

came customers segment higher from with up And million revenue our Healthcare growth season. LLPS, the it year-over-year, and Legal Our XXXX. existing $X.X finally, Prevention open during or Loss business and X% was or QX, approximately from grew enrollment million, $XX.X sequentially Services compared volume segment

the pleased growth. with are We

Slide on negative operating had income impairment $XX.X $XX.X this Now million. driven million; XX. of We an a by charge was totaling

we As our has this million charge in a LPPS in and goodwill business we legal of business highs in business segment. impairment revenue our took of discussed, from XXXX, its declined related XXXX $XX.X QX to

The client associated investment contracts, following pro with year-over-year ramp detail Exela. growth global XX, in one a quarter operating revamped full revenue certain the the driven On up that XXXX XX.X% in slides. summary In XX, higher legacy XXXX. compared initiatives, was initiatives trade I year of more $XX.X be million with quarter relating adjusted XX.X forma of the fourth a as names by fourth launch can for our part EBITDA Slide incremental to was dropped % public cover million, results addition, XXXX decrease few new as we margin million as $XX.X a an the costs with Slide a representing of branding fourth in XXXX in which is margin cost this wrote will on associated off company. IPPS company's of of quarter of to $XX.X in

guidance As we year EBITDA. XXXX adjusted mentioned, both full revenue Ron and for our pro ranges achieved forma

was and fiscal X.X%. million Turning wins. and X.X% ramp a and with $X.XXX primarily customer increased compared Healthcare of $XXX.X year-over-year IPPS full XXXX, in to Slide million down year year billion offset segment down had of new existing $X.XXX the expansion XX, revenues revenues ICDX payer were finally, LPPS XX% the revenue XXXX. mid of to business year small that in in was approximately in posting related And We within in for by $X.XXX our fiscal customers, were growth. $XX.X $XXX.X by in year one fiscal due our slowed volumes to growth services provider billion compared conversion revenue sale grewXX% with up non-core Solutions XXXX, asset folding QX a was down but medical healthcare of million, XXXX. of of from decrease to existing million XX clients $X.X demand billion

Slide driven of to operating XXXX, we XX, Turning main for an had two by loss $XXX.X million. was items. This

$XX.X as transaction slides million as First, fiscal in XXXX year million. of impairment discussed business of few totaling combination QX incurred an we the costs recorded a $XX second, I part one-time we And charge in back.

as the a our net of entities XXXX, the was year fiscal standalone one-time the million part related of loss $XX impacted loss $XXX.X by extinguishment of to early of For million combination. at also business the debt

were million, representing EBITDA year XXXX EBITDA compared $XXX.X decrease by adjusted million Now and XX.X% Further year-over-year of delivered was or with million, EBITDA was over offset fiscal of revenue associated was company $XXX.X with driven IPPS which compared Slide margin contract, an The investments higher XX.X% a ramp year XX.X% XXXX. further $XX margin XXXX. primarily million in new by of for XX.X% margin. million higher Adjusted in $XXX.X adjusted or adjusted savings initiatives, costs costs to the fiscal client XX. with growth company's $XXX.X initiatives public turn EBITDA in in

to transform the Business synergies, expand business Exela our execution to of to identified primarily the lower we during with vision merger in XXXX is company continue have which dilution to strategic adjusted in to a XXXX of in BPA the the is flow the to of to This of business. adjusted related margins of further the XX margin savings Approximately deployment to savings adjusted Exela suite converge The $XX.X is flow to XX with on was remaining savings. our XXXX acquired to the through the in the of results. EBITDA Automation the of compared track. due appendix. further the EBITDA continues its EBITDA to will months. as Process million $XX reconciliation $XX addition, acquisition detailed into continue Touching In XXXX. the to next be on over deliver million plan expects million The

Now turning to Slide XX.

year For EBITDA. adjusted the of conversion full of flows, adjusted an representing an of and XX% X% XXXX, we further $XXX.X year-over-year had free further million cash increase

profile flow our to free is Our due low CapEx strong cash model.

our the For our $XX.X full revenue. XXXX, million, year of totaled X.X% CapEx XXXX

Total million net cash million structure to ratio $X.XXX global the December of on was equivalents X.XXx. cash liquidity net billion. customers capital million Turning leverage XX. allocated $XX $XXX debt total Slide had which corresponding is was our the At of was XXst, liability. with $XX a We and to and

a million. facility but have of borrow Treasury three-year hedge net credit the yields. a approximately $XX we in our standby Also company first our ability in lien $XX which borrow to also the We - to giving into of credit, million $XXX quarter, the fourth of on the view million standard enter letters term revolving rising was given loan did undrawn,

floating XXXX. the debt effect January out floor portion swapped in X.XXXX% a into rate which have went of of fixed rate for We our entire

stock plan This we partially program will stock cash be We mention also portion for the funded approximatelyX.X fall. million the a compensation of It approved that replace are this employees. buyback variable to paid the excited with employees Board announced a shares. will past to for

back we XX,XXX shares. the During quarter, fourth bought

to close, Please I XX. discuss Slide our turn I want to guidance. XXXX Before

Our follow. ranges as are guidance XXXX

to currency X% a or We expect growth to constant revenue $X.XX billion between basis. X% to $X.XX billion be on

$XXX to toXX%, a growth XX% range margin for in of translating million, XXXX. of adjusted adjusted $XXX representing into We expect XX% a EBITDA million to the EBITDA XX%

the further to into of expect adjusted million We $XXX EBITDA million XX% to translating margin. in $XXX XX% range

the addition, XX%. XXXX to free adjusted In for of flow conversion in XX% cash range

million includes million with the remaining delivering $XX XXXX. during during $XX guidance to XXXX Our in savings

our mid-year During in update. will second we a anticipate we call provide August, quarter

remains Our unchanged. range adjusted currency XX%. to in longer-term conversion to guidance in XX%. the the guidance is flow Further EBITDA adjusted margin range basis XX% constant cash to of of in further XX% growth a the on Revenue of range free with X% X%

it lower tax up open be I spend I a rate a for to will corporate rate tax moving Before recent The tax on a how questions, benefit forward. the to impact call want and our reform minute could us.

significant to the subject XXXX. $XXX given million to in will However, are NOLs continue not not much approximately taxes that limitations, XXX until XXXX pay we U.S. or

this as profitable Our minimis have In rate when international against some executing we for effective will that continue solid closing, XXXX. a beat than pay We're to a taxes created million less had Exela the year we tax our year. Ron to still $XX foreign we discussed plan subsidiaries.

are that, clients' to as in position the our to the We I'd operator, participant our in for With make an continuing investments like value elevating and Thank technology chain. call open essential questions. you. right platforms, up our

Operator

with today Foresi Our from Fitzgerald. Please question Instructions] first Cantor comes [Operator Joseph go ahead.

Mike Reid

healthcare you're legal? a financial longer Hi, continued term the taking in what's on Joe. this giving This us question. guidance guys. give looking And your us giving if for little year's expectations confidence you by could segments more improvement you kind Could appreciate and and you in detail Mike the Reid on of is above We tell what maybe objectives? for then you

Jim Reynolds

Jim. is This Sure.

guidance a bottoms-up Our is based analysis. revenue on

contracted We and our revenue total January since have have XX% Xst. over visibility incorporated in revenue

visibility. really with So good our we feel

we long FinTech in guidance that will and our within that customers. had within see the and process ramping term grow further segments We XXXX. us range as comfort strong the we're for also. We gives In on IPPS addition, industries give but the or term is specific upping services tailwind group, fourth a quarter say I in et Those very mentioned, cetera. short our our what as That expand is financial growth demand uplift know you don't of into in banking in win guidance the currently client no up. significant Ron

coming in expect then And legal we So our loss loss overall IPPS relatively we relatively prevention historically to flat. healthcare. what we've legal, be to consistent - and the services said see be growth our and

Mike Reid

other the And the XQ impairment XXXX? improvement Is potential And a or pretty guess X%. been got the such then that. I events without too? be adjusted impairment could there income there then this operating I on the If the color around appreciate in charger, good guidance it margins, million Okay, for reasonable to some year. no have margins EBITDA $XX expansion operating in it. expectation close would as suggests looks unseen there's this on like

Jim Reynolds

all did XXXX operating So XXXX. we give reason through is them have the result of XXXX. to have for I savings certain in don't we the the implemented think we level expansion being but we charges That will a definitely that don't one-time on that impacted guidance cost as around as on start we specific And the flow as in anticipate discussed work we savings. projected at our

Operator

Arun Seshadri question ahead go Please the from comes And today with Credit next Suisse.

Arun Seshadri

Thanks Hi, Jim. questions. my and Ron taking Yes, for

Just for a questions of couple me.

just a wanted gross for understand XXXX of revenue margin sort just year-over-year understand did but QX not. of to dollars on the basis, your grew wanted nicely to First

of there. puts understand and and to of start takes maybe sort wanted for that can sort we Just the

Jim Reynolds

margin. if discussed view were as that level. impacted public the a of by you an We company the look think I currently We it at margins break I at out look ramp So were you our few need the costs, customers. to really gross additional QX, up don't which items operating

of a it savings. incremental basis able with million see implementation the much, of took previously had you capitalize at as were We margins part under costs our from On the expanding. our of Also potentially capitalized little were rules. add backs could not approximately of go op our aspect. that to biz operating we We significantly down $XX be $XXmillion the of during look as million some accounting to that fourth in QX some the we $XX quarter. forward so If to bit quarter,

Arun Seshadri

it. Got

cost revenue some those that life. backs - add of margin muddles which in the basically are are muddles So which growth included of

Jim Reynolds

Okay, that correct. is

Arun Seshadri

as then is adjusted that. within guidance and for as the of of breakout EBITDA the XXXX, the the backs us far Understood, any could you there various way guidance the add give for

finally the What consumption other and restructuring in optimization relevant as the mean expenses? be as sort of any it much integration. I then a new are what terms well the transaction numbers of breakout words So additional the oversight would up, of or be you contract can I transaction backs. of the sort color set guess shouldn't guess And just management, I in like add on add those

Jim Reynolds

Sure.

If $XX our you add $XX third million you QX, look go versus obviously were in in costs at to from basically the saw QX business significantly They QX. down million quarter. close the

So were to for somewhere transaction. came million that in also related type look close would million between QX charges to respect year to of had op million the through less There $XX million charges. as XXXX, we the QX, $XX expect transaction $XX With in $ only biz in fees, we those to we X to XXXX.

we backs anticipate area. those went the part fee, add to So respect with management the fees all the combined from of that And away merger. large as then don't

are company. those be a more either no basis as go-forward the So being paid fees management on minimis will by there

significantly. see the we So adjustments decreasing

Arun Seshadri

Got it.

to what break million. $XXX what cash down or would type could is sort So that to of GAAP kind $XXX translate you way of EBITDA, there million EBITDA to, GAAP of any that

Jim Reynolds

Yes.

$XXX high million $XX million $XX - So level with in EBITDA of we've guidance to million given and between roughly at million $XXX biz a adjusted op

Arun Seshadri

overall around of million So EBITDA. basically reductions XXX-ish $XX GAAP so

Jim Reynolds

That's correct.

Arun Seshadri

the wanted and any you I to ramp really talked That's in about Understood. it. margins of sort to of Got And us then business. any think finally Thanks. could Ron relative is ask I IPPS large there terms good. and current contract way on just give size indication the your

Ron Cogburn

discovering We don't of share No, detail thanks, just that level the highlights. Arun. typically

Arun Seshadri

Can said more must on for Okay. then growth I question what have HS one ask XXXX. you I for imply missed

you Henry you said IPPS said on flattish. think Could what just LLPS growth, expect repeat Schein. I strong

Jim Reynolds

Yes.

prevention see that don't expansion we the said it and legal, health I we and and tell growth you growth, necessarily IPPS healthcare is would will what but in confident flat industry break We grows. care very loss So what overall the out I at solutions coming feel as grow services.

If our grow part business, the along continue to have you mergers base. providers with them. do will top as customer track of and some expand of grow and their payers they remember we we as And and

Operator

Our Bergin Cowen. next Please from with today go Bryan ahead. comes question

Bryan Bergin

guys, ask I first have just any comment client to tax changes Can wanted and you Hi, US thank spending behavior on see on reform. you. that you here? US can notable

Jim Reynolds

thus Thanks is question, customers. our here, the to over well not And we positioned changes XX% revenue any impact far. seen have significant Bryan. mean the your from US of for Currently, US our employees business with significant you in seen I North in as about know we're America. XX,XXX haven't really any

Bryan Bergin

And we rates? about contributing how think long-term M&A you Okay. talk allocation capital XXXX. about in should to priorities Then your growth can

Jim Reynolds

good a that's So question.

that And that. our material allocation think laid changes consistent is in capital the earlier from there's been year. we've no I out

number said There down through. of that you feel items the if think is look we I at a potential were walk road comfortable. once we we a transactions possibility

point So guidance. into have at that no we this change

Bryan Bergin

an Okay us awareness your across one and particularly more client Can just last and base? selling update of you your me. on aiming here progress give as offering to for the cross you're drive

Ron Cogburn

additional I the insurer. X,XXX processes. Like with done picked automation, the I strategy to able acquisition the twofold. the helping that about begun sites XXX the customer automated question. And take we we one, bit, there. are of casualty That's And as Novitex, is to message property example it transform existing of are large have to be a has to business customers think we Number Yes, great up business into Bryan. was process This a located roll our out gave more part of little Ron.

for hundreds number employees of literally and there. there involved of been have a we have We years

in So able conversation And process way more automation creates do creates now what with I different just to a or customers process able add errors. fewer with automated more to more things those those business be customers. call relationship way, RPA a because would with a efficient It business pure we're whether automation. it a with it's automation along sticky to

customers So thesis across that existing We're we renewals. all with customer our have rolled for up we base. those waiting acquisition picked as not of out well that as

have we're process with sharing them. can business do what of all we automation. customers active-- largest business, with can engaged We and of What them their our proposition an the do for it for actively

time So some and seeing it's adoption. early very we're a exciting for us

it. very about So excited

Operator

from is John question next Our with Moore go ahead. HSBC. Please

John Moore

guys. Hi,

are one in contracts any it So I date. it, line you contracts describe guess is And terms don't with contracts to in the even you've though much and the to types in anything there on some is of other too of signings BPO transformation - about of QX the done signing. there want but big in of terms you're new

Ron Cogburn

that's place So business call BPO right the I to talked process I of in the little what see, customers the a we interest automation. conversations. acceleration in the quarter think bit to for from would I've start, And with our an this about and transformation fourth enterprise began

along allowed automation. overlaid So we with of And combination the show with that that's that where that the in have to businesses significant us win the doing two others.

a XXXX. lot from over, it's we billion of solutions engage forward out I and as transformation QX interest - to to we customers, in as lot voice our of mentioned a installed and year we BPO won to early our on result we're a customer; and look strategy about in our of roll saw largest and of And we I a a my the business which A from on. this to contracts a able of first $XXX think And with in this finding from process this of saw we so starting lot them automation. service focused and customers interest be had

John Moore

Great, proceeding the to and year, model. contracts are the through rolling the date in that transformations those you well your early in quarter got all

Ron Cogburn

six six long to nine implement. a of within assessment all And are Remember, sales cycle. to up the understand months to customer. the it this then procedures These months and takes processes some may take do map to and another to

So we're optimistic.

functioning with I are some we'll in of that. this place. and that pilots have We think Later probably some see movement sort year

John Moore

they is the QX you But of it's through when about And in for then given million range XXXX? $XX particular terms down steady should they a quarter it, there drop a $XX as we of did a lot in to Okay. mentioned drop XXXX. restructuring in a lot optimization come think is it and just million expenses, and or off

Ron Cogburn

it give on don't any we But guidance We would expect XXXX. throughout off specific to it. tail quarterly

Operator

from Please Brad question next ahead. is Our with Elliott go today RBC.

Brad Elliott

guys. Hey,

be for percent gave how - is about - Just what the CapEx past three sort of term couple in there Are wanted it at to XXXX thoughts things odd you guidance just you've the the on to to going timeframes? any longer then Is consistent of guidance. going the those said of on for top-line? for spent kind of

Jim Reynolds

We as maintaining X% Yes. were CapEx percent the a revenue. of

Brad Elliott

should any about you is for of with and as that these M&A sort flexibility is thought on the kind of then you be or somewhat sort as universal want of of that give filing associated context and that that now? was timing any was do ago, of shelf, here stocks done as us we And can think few more why on far the shelf the and to the Okay is it done the on highlighted employee tuck-in - that if weeks of a did kind program? sort it - you

Jim Reynolds

flexibility in housekeeping really. future, additional So a it's basically item the that us optionality place type provide to with put we for

Operator

comes question with Fortress]. from next Portillo [Ana Our ahead. today go Please

Unidentified Analyst

the Thanks the side. think the you guys. call. revenue to due on provider I less for you health Can little the solution ICDXX was conversions softer segment? there year-over-year about mentioned a care little more a Hey, talk

areas us of So of in of the that you've growth kind those years. terms segment past for of seeing what can could of you That you're tell in some offset maybe seen help Thank to that you. couple XXXX? within tailwind

Jim Reynolds

I healthcare well Sure. segment. mean think very within I positioned we're healthcare, the our

space We're in a five top back did the they the have mentioned XXXX revenue was entity As fill space. in the of we're able of business. we it coding. big late off then caused conversion in payers. really also There was I four and boom majority large in the healthcare to We that were there that tail- well-positioned, for in our and and when payer the historically, down solutions as a from space insurance or medical came provider a XXXX. government And decline that

that feel we growing So is we're typically We typically follow The in market positioned and X%. space. well between X% grow. our as customers

about feel good healthcare our we business. So

Operator

And the we for And to Cogburn with closing Center to to for to those Innovation near call for lot. us today. really question-and-answer turn conclude This come again everybody the look Ron remarks. you well, visit city Ron you With speaking a the in Cogburn joining will back Thanks the for Sure, at And and we want over you. conference by any forward an session thank you. I'd quarter. look first invitation the in day. us our that thank like for of know to our

Operator

has now very much for concluded. conference Thank you attending The presentation. today's

lines. your disconnect now may You

Exela (XELA) 15 Mar 182017 Q4 Earnings call transcript