Ebix Announces Quarterly Revenue of $53.8 Million With Third Quarter 2012 Diluted EPS of $0.46

Ebix Announces Quarterly Revenue of $53.8 Million With Third Quarter 2012
Diluted EPS of $0.46

ATLANTA, Nov. 8, 2012 (GLOBE NEWSWIRE) -- Ebix, Inc. (Nasdaq:EBIX), a leading
international supplier of On-Demand software and E-commerce services to the
insurance industry, today reported its financial results for the third quarter
of 2012 and will host a conference call at 11:00 a.m. EST (details below)

Ebix delivered the following results for its third quarter, fiscal year 2012:

Revenues: Total Q3 2012 revenue was $53.8 million, an increase of 26% on a
year-over-year basis, as compared to Q3 2011 revenue of $42.6 million. During
the nine months ended September 30, 2012, revenue increased $20.4 million or
16%, to $145.3 million compared to $124.9 million during the same period in
2011.

Expenses: The Company's operating expenses for the quarter grew by 34% to
$33.1 million as compared to $24.6 million for the third quarter of 2011.

Operating Income: Q3 2012 GAAP operating income grew 23% to $20.7 million as
compared to the Non-GAAP operating income of $16.8 million in Q3 2011 after
excluding a one-time non-recurring gain of $1.2 million in Q3 2011, from the
reversal of contingent earn out accrued liabilities related to certain
business acquisitions made in 2010. The GAAP operating income for the three
months ended September 30, 2011 was $18.0 million. Management believes that
excluding certain unique and non-recurring events from reported operating
income is useful when comparing the Company's performance on a period to
period basis. Year-to-date GAAP operating income through Q3 2012 was $56.7
million, reflecting an increase of 9% when compared to the GAAP operating
income of $52.2 million for the same nine-month period in 2011.

Operating Cash Flow: Net cash provided by the Company's ongoing operations in
Q3 2012 was $19.3 million, a decrease of 13% year-over-year, compared to $22.2
million in Q3 of 2011 due to increased levels of trade receivables and accrued
liabilities at 9/30/12. During the nine months ended September 30, 2012, the
Company generated $54.0 million of net cash flow from operating activities, an
increase of 4% as compared to $51.9 million in the first nine months of 2011.
This operating cash flow for these past nine months of 2012 reflects the fact
that all of the Company's net income of $51.8 million in the 9-month period
has been converted into positive cash flow.

Margins: The Company reported an operating margin of 38.5% for Q3 2012 as
compared to 39.4% based on the Non-GAAP operating income for the same period
during 2011, after excluding the impact of the one-time non-recurring gain in
Q3 of 2011 of $1.2 million, discussed above within the operating income
section. The operating margin for Q3 2011 based on GAAP was 42.1%. The
operating margin for the nine months ending September 30, 2012 was 39.0%.

Net Income: GAAP Q3 2012 Net income grew 9% to $18.1 million as compared to
the GAAP Q3 2011 net income of $16.5 million.

Earnings per Share: Q3 2012 diluted earnings per share rose 13% year-over-year
to $0.46 as compared to $0.41 in the third quarter of 2011. For purposes of
the Q3 2012 EPS calculation, there was an average of 39.1 million diluted
shares outstanding during the quarter, as compared to 40.4 million diluted
shares outstanding in Q3 of 2011.

Channel Revenues: The Exchange channel continued to be the largest channel for
Ebix accounting for 81% of the Company's Q3 2012 revenue as compared to 78% in
Q3 of 2011.

                                    Three Months Ended  Nine Months Ended
                                    September 30,       September 30,
(dollar amounts in thousands)        2012      2011      2012       2011
Exchanges                            $43,592 $33,021 $116,420 $96,308
Broker Systems                       4,537    4,731    13,713    13,397
Business Process Outsourcing ("BPO") 4,252    3,576    11,713    10,948
Carrier Systems                      1,423    1,274    3,501     4,266
Totals                               $53,804 $42,602 $145,347 $124,919

Share Repurchases:The Company purchased 280,818 shares of its common stock in
July at an average price of $20.49 for an aggregate amount of $5.8
million.The Company currently has approximately $8.6 million remaining in its
share repurchase authorization.

"Ebix produced another record quarter with revenues of $53.8 million. We are
pleased with these results as we have been able to grow our revenues while
sustaining our operating margins. In June, we announced our efforts to exceed
the quarterly run-rate of $50 million in revenue.We have clearly surpassed
that goal owing to the successful integration of our acquisitions, increased
penetration of our client base, and the efforts of our expanded sales and
marketing teams," Ebix Chairman, President & CEO Robin Raina said."Our sales
pipeline for 4Q12 and 2013 is larger than we have seen in recent years and our
sales teams are fully engaged in providing market leading solutions with the
Company's wider array of products and services."

Robin added, "The year-to-date operating cash flows through September 30^th
2012 were $54.0 million indicating that we can manage our fast growth and
generate cash to further strengthen the Company in future quarters.
Strategically, London is arguably the second largest insurance market in the
world. The Company is excited to be addressing that market now with the launch
of EbixEurope and the acquisition of TriSystems in London in August. As we
integrate our 2012 acquisitions and increase the sales momentum, we expect
increased cross-selling and further increases in operating cash flow in the
coming quarters."

"Our consistent ability to generate sustainable strong operating cash flows
enabled Ebix to return capital to shareholders during the quarter with $5.8
million of shares repurchases, and a $1.8 million quarterly cash dividend,"
said Ebix SVP and CFO Robert Kerris. "Furthermore, during the quarter the
Company continued to invest in the growth of the business with $9.3 million of
accretive business acquisitions and $389 thousand of capital expenditures. Our
balance sheet remains strong as reflected in the aggregate cash, cash
equivalents, and short-term cash deposit investments in the amount of $31.0
million as of September 30, 2012, and working capital of $15.8 million. Our
accounts receivable DSO stood at 61 days as of September 30, 2012, continuing
an improving trend as this reflects a reduction of 3 days from year-end 2011,
and 6 days from a year earlier at September 30, 2011.Our net debt presently
stands at $52.2 million as of September 30^th 2012. The Company presently has
access to approximately $38.2 million of readily available cash resources from
its financing facility with Citi Bank combined with cash on hand to support
the continued growth of the Company, both organically and with accretive
acquisitions."

Investor Conference Call

Ebix will host a conference call to discuss its third quarter 2012 results at
11:00 a.m. Eastern Standard Time today. A live audio webcast of the conference
call, together with detailed financial information, can be accessed through
the company's Investor Relations home page at http://www.ebix.com. In
addition, an archive of the webcast can be accessed through
www.ebix.com/webcast.Participants who choose to call in to the conference
call can do so by dialing 1-(973) 409-9690, Passcode: 54980255.A replay of
the audio and text of the investor call will be available through the
company's Investor Relations home page at http://www.ebix.com

About Ebix, Inc.

Ebix, Inc. is a leading international supplier of software and e-commerce
solutions to the insurance industry. Ebix provides a series of application
software products for the insurance industry ranging from carrier systems,
agency systems and exchanges to custom software development for all entities
involved in the insurance and financial services industries.

Ebix works collaboratively with clients to develop innovative technology
strategies and solutions that address specific business challenges. Ebix
combines the newest technologies with its capabilities in consulting, systems
design and integration, IT and business process outsourcing, applications
software, and Web and application hosting to meet the individual needs of
organizations.

With bases in Singapore, Australia, the US, New Zealand, India, Brazil, UK and
Canada, Ebix employs more than 2000 insurance and technology professionals who
provide products, support and consultancy to hundreds of thousands of users
across six continents. Ebix's focus on quality has enabled it be awarded Level
5 status of the Carnegie Mellon Software Engineering Institute's Capability
Maturity Model (CMM). Ebix has also earned ISO 9001:2000 certification for
both its development and call center units in India. For more information,
visit http://www.ebix.com.

The Ebix, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=12133

Safe Harbor for Forward Looking Statements under the Private Securities
Litigation Reform Act of 1995 — This press release contains various forward
looking statements and information that are based on management's beliefs, as
well as assumptions made by, and information currently available to
management, including statements regarding future economic performance and
financial condition, liquidity and capital resources, acceptance of the
Company's products by the market and management's plans and objectives.The
Company has tried to identify such forward looking statements by use of words
such as "expects," "intends," "anticipates," "plans," "believes," "will,"
"should," and similar expressions, but these words are not the exclusive means
of identifying such statements.Such statements are subject to various risks,
uncertainties and other factors which could cause actual results to vary
materially from those expressed in, or implied by, the forward looking
statements. Such risks, uncertainties and other factors include the extent to
which the Company's new products and services can be successfully developed
and marketed, the integration and other risks associated with recent and
future acquisitions, the willingness of independent insurance agencies to
outsource their computer and other processing needs to third parties, the
Company's ability to continue to develop new products to effectively address
market needs in an industry characterized by rapid technological change, the
Company's dependence on the insurance industry (and in particular independent
agents), the highly competitive and rapidly changing automation systems
market, the Company's ability to effectively protect its applications software
and other proprietary information, the Company's ability to attract and retain
quality management, and software, technical sales and other personnel, the
potential negative impact on the Company's outsourcing business in India from
adverse publicity and possible governmental regulation, the risks of
disruption of the Company's Internet connections or internal service problems,
the possibly adverse effects of a substantial increase in volume of traffic on
the Company's website, mainframe and other servers, possible security breaches
on the Company's website and the possible effects of insurance regulation on
the Company's business. Certain of these, as well as other, risks,
uncertainties and other factors, are described in more detail in Ebix's
periodic filings with the Securities and Exchange Commission, including the
company's annual report on form 10-K for the year ended December 31, 2011,
included under "Item 1A. Business—Risk Factors."Except as expressly required
by the federal securities laws, the Company undertakes no obligation to update
any such factors or to publicly update any of the forward looking statements
contained herein to reflect future events or developments or changed
circumstances or for any other reason.

(Financial tables follow)

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)


                                    Three Months Ended  Nine Months Ended
                                    September 30,       September30,
                                    2012      2011      2012       2011
Operating revenue                    $53,804 $42,602 $145,347 $124,919
                                                                
Operating expenses:                                              
Cost of services provided            9,500    8,710    27,686    24,931
Product development                  7,102    4,964    17,188    14,385
Sales and marketing                  4,346    3,440    12,454    9,553
General and administrative           9,679    5,785    24,700    18,240
Amortization and depreciation        2,469    1,749    6,571     5,617
Total operating expenses             33,096   24,648   88,599    72,726
                                                                
Operating income                     20,708   17,954   56,748    52,193
Interest income                      88       100      365       429
Interest expense                     (440)    (218)    (1,005)   (592)
Other non-operating income (loss)    414      33       676       (785)
Foreign currency exchange gain       (536)    (230)    1,759     2,635
(loss)
Income before income taxes           20,234   17,639   58,543    53,880
Income tax benefit (expense)         (2,162)  (1,103)  (6,719)   168
Net income                           $18,072 $16,536 $51,824  $54,048
                                                                
Basic earnings per common share      $0.49   $0.44   $1.41    $1.41
                                                                
Diluted earnings per common share    $0.46   $0.41   $1.32    $1.31
                                                                
Basic weighted average shares        37,214   37,345   36,859    38,215
outstanding
                                                                
Diluted weighted average shares      39,120   40,449   39,158    41,400
outstanding
                                                                

Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)

                                                   September30, December31,
                                                   2012          2011
ASSETS                                              (Unaudited)   
Current assets:                                                  
Cash and cash equivalents                           $29,491     $23,696
Short-term investments                              1,506        1,505
Trade accounts receivable, less allowances of       37,203       31,133
$1,316 and $1,719, respectively
Deferred tax asset, net                             1,594        2,981
Other current assets                                6,632        4,502
Total current assets                                76,426       63,817
                                                                
Property and equipment, net                         10,383       8,834
Goodwill                                            337,249      259,218
Intangibles, net                                    51,483       38,386
Indefinite-lived intangibles                        30,798       30,453
Deferred tax asset, net                             6,011        9,412
Other assets                                        3,483        1,062
Total assets                                        $515,833    $411,182
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable and accrued liabilities            $25,956     $18,719
Accrued payroll and related benefits                4,620        5,034
Short term debt                                     11,000       6,667
Current portion of long term debt and capital lease
obligations, net of discount of $26 and $0,         876          165
respectively
Deferred revenue                                    17,845       16,460
Current deferred rent                               258          266
Other current liabilities                           106          2,468
Total current liabilities                           60,661       49,779
                                                                
Revolving line of credit                            37,840       31,750
Long term debt and capital lease obligations, less
current portion, net of discount of $78 and $0,     33,905       8,468
respectively
Other liabilities                                   4,443        3,803
Contingent liability for accrued earn-out           23,740       —
acquisition consideration
Put option liability                                700          —
Deferred revenue                                    200          328
Long term deferred rent                             1,519        939
Total liabilities                                   163,008      95,067
                                                                
Stockholders' equity:                                            
Preferred stock, $0.10 par value, 500,000 shares
authorized, no shares issued and outstanding at     —           —
September 30, 2012 and December31, 2011
Common stock, $0.10 par value, 60,000,000 shares
authorized, 37,214,128 issued and 37,173,619
outstanding at September 30, 2012 and 36,418,385    3,717        3,638
issued and 36,377,876 outstanding at December31,
2011
Additional paid-in capital                          171,668      179,518
Treasury stock (40,509 shares as of September 30,   (76)         (76)
2012 and December31, 2011)
Retained earnings                                   184,222      137,559
Accumulated other comprehensive loss                (6,706)      (4,524)
Total stockholders' equity                          352,825      316,115
Total liabilities and stockholders' equity          $515,833    $411,182
                                                                

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

                                                          Nine Months Ended
                                                          September 30,
                                                          2012      2011
Cash flows from operating activities:                               
Net income                                                 $51,824 $54,048
Adjustments to reconcile net income to net cash provided            
by operating activities:
Depreciation and amortization                              6,571    5,617
Benefit for deferred taxes                                 (605)    (5,940)
Share based compensation                                   1,567    1,737
Provision for doubtful accounts                            416      747
Debt discount amortization on convertible debt             13       21
Unrealized foreign exchange gain on forward contracts      —       909
Unrealized foreign exchange (gain) loss                    397      (4,047)
(Gain) loss on put option                                  (677)    893
Reduction of acquisition earnout accruals                  —       (3,048)
Changes in assets and liabilities, net of effects from              
acquisitions:
Accounts receivable                                        (1,859)  (2,985)
Other assets                                               (1,715)  422
Accounts payable and accrued expenses                      2,758    1,916
Accrued payroll and related benefits                       (1,415)  (959)
Deferred revenue                                           (811)    1,024
Deferred rent                                              (92)     (188)
Other current liabilities                                  (2,370)  1,696
Net cash provided by operating activities                  54,002   51,863
                                                                   
Cash flows from investing activities:                               
Acquisition of ADAM,net of cash acquired                  —       3,529
Investment in MCN, net of cash acquired                    (1,537)  (381)
Acquisition of BSI, net of cash acquired                   (992)    —
Acquisition of Taimma, net of cash acquired                (5,003)  —
Acquisition of Fintechnix, net of cash acquired            (4,713)  —
Acquisition of Planetsoft, net of cash acquired            (34,078) —
Acquisition of TriSystems, net of cash acquired            (9,277)  —
Investment in Curepet, Inc.                                (2,000)  —
Investment in ConfirmNet                                   —       (184)
Maturities of marketable securities                        931      7,600
Purchases of marketable securities                         (785)    (2,963)
Capital expenditures                                       (1,468)  (1,863)
Net cash provided by/(used in) investing activities        (58,922) 5,738
                                                                   
Cash flows from financing activities:                               
Repayments on revolving line of credit, (net of proceeds)  6,090    (14,750)
Proceeds from term loan                                    45,000   16,250
Principal payments of term loan obligation                 (17,062) (4,740)
Repurchases of common stock                                (15,150) (56,548)
Settlement on conversion of convertible debt               —       (6,761)
Excess tax benefit from share-based compensation           73       70
Proceeds from the exercise of stock options                739      14
Dividend payments                                          (5,161)  —
Principal payments of debt obligations                     (600)    —
Payments of capital lease obligations                      (229)    (253)
Net cash provided by/ (used in) financing activities       13,700   (66,718)
Effect of foreign exchange rates on cash                   (2,985)  (327)
Net change in cash and cash equivalents                    5,795    (9,444)
Cash and cash equivalents at the beginning of the period   23,696   23,397
Cash and cash equivalents at the end of the period         $29,491 $13,953
Supplemental disclosures of cash flow information:                  
Interest paid                                              $929    $579
Income taxes paid                                          $6,308  $1,757

CONTACT: Investor Relations Contacts:
         Steven Barlow, 678-281-2043 or steve.barlow@ebix.com
         Aaron Tikkoo, 678-281-2027 or atikkoo@ebix.com

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