Ebix Announces Fourth Quarter and Full Year 2012 Results

Ebix Announces Fourth Quarter and Full Year 2012 Results

  *Quarterly Revenue of $54.0 Million, up 23% Year-Over-Year
  *Full Year Revenue of $199.4 Million, up 18% Year-Over-Year
  *Q4 Diluted EPS of $0.48, up 9% Year-Over-Year
  *Full Fiscal Year Diluted EPS of $1.80, up 3% Year-Over-Year

ATLANTA, March 14, 2013 (GLOBE NEWSWIRE) -- Ebix, Inc. (Nasdaq:EBIX), a
leading international supplier of On-Demand software and E-commerce services
to the insurance industry, today reported results for the fiscal fourth
quarter and full year ended December 31, 2012. Ebix will host a conference
call at 11:00 a.m. EDT (details below)

"The Company's 2012 results reflect the strength of Ebix's core businesses
that helped us deliver outstanding results in one of the most challenging
years for the insurance industry in a decade," said Robin Raina, Chairman,
President and CEO, Ebix Inc. "Our revenue, operating cash flow, liquidity and
diluted EPS were all at record levels as we look forward to continued high
levels of performance in 2013."

Ebix delivered the following results for the fourth quarter and full year of
2012:

Revenues: Total Q4 2012 revenue was $54.0 million, an increase of 22.6% on a
year-over-year basis, as compared to Q4 2011 revenue of $44.1 million.

For the full fiscal year of 2012, the company reported revenue of $199.4
million, an increase of 18.0% from the prior year revenues of $169.0 million.

Earnings per Share: Q4 2012 diluted earnings per share rose 9% year-over-year
to $0.48, as compared to $0.44 in the fourth quarter of 2012. For purposes of
the Q4 2012 EPS calculation, there was an average of 38.9 million diluted
shares outstanding during the quarter, as compared to 39.4 million diluted
shares outstanding in Q4 of 2011.

For the full year of 2012, diluted earnings per share rose 3% year-over-year
to $1.80 from $1.75 in 2011. For purposes of the EPS calculation, there was an
average of approximately 39.1 million diluted shares outstanding during the
year 2011 as compared to an average of 40.9 million diluted shares outstanding
in 2011.

Operating Cash: Cash generated from operations for the fiscal fourth quarter
was $18.3 million, down 5% year-over-year due primarily to the payment of
certain acquisition earnout liabilities. For the full year, operating cash
flow totaled $72.3 million in 2012, up 2% year-over-year as compared to $70.6
million in 2012.

Margins:In 2012, the Company achieved gross margins of 81% compared to 80% in
2011. Operating margins for 2012 were slightly lower at 39% as compared to 41%
for 2011 due to business acquisitions made in 2012, which were not at the same
operating margins as Ebix's legacy businesses when acquired.

Diversified Revenue Base: Ebix continued to have highly diversified revenue
streams across thousands of clients, with the largest client accounting for
only 3% of the Company's 2012 revenues.

Channel Revenues: The Exchange channel continued to be the largest channel for
Ebix accounting for 80% of the Company's 2012 Revenues as compared to 77% in
2011.


(dollar amount in      Three Months Ended         Year Ended December 31,
thousands)             December 31,
Channel                2012     2011     % Change 2012      2011      % Change
Exchanges              $ 43,257 $ 34,330 26%      $ 159,678 $ 130,638 22%
Broker Systems         4,899    4,609    6%       18,612    18,006   3%
BPO                    4,427    3,996    11%      16,140    14,944    8%
Carrier Systems        1,438    1,115    29%      4,940     5,381     -8%
Total Revenue          $ 54,023 $ 44,050 23%      $ 199,370 $ 168,969 18%

Share Repurchases: During Q4 2012, the Company repurchased 196,300 shares of
our common stock at an average price of $16.42 per share for an aggregate
amount of $3.2 million.For 2012, Ebix repurchased 983,818 shares for an
aggregate amount of $18.4 million or an average price of $18.68.The Board of
Directors has authorized a total repurchase limit of $100 million of which
$5.4 million still remains outstanding.

Net Income: Q4 2012 net income was $18.7 million, an 8% increase on a
year-over-year basis, as compared to Q4 2011 net income of $17.3 million. For
2012, Net Income declined 1% to $70.6 million compared to $71.4 million in
2011.

Q1 2013 Diluted Share Count: As of today, the Company expects the diluted
share count for Q1 2013 to be approximately 38.8 million.

Ebix SVP & CFO Robert Kerris said, "The Company continues to produce robust
operating cash flows, generating $72.3 million during 2012, which in
combination with access to our commercial banking financing facility, enabled
Ebix to spend $57.1 million on new strategic business acquisitions and
investments, to reacquire 984 thousand shares of our common stock at a cost of
$18.4 million, and to return $7.0 million of capital to our shareholders in
the form of cash dividends.Our financial position is strong with $37.4
million in the aggregate cash, cash equivalents, and short-term cash deposit
investments, working capital/short-term liquidity of $25.0 million, and an
accounts receivable DSO of 63 days. The Company's net debt stood at $44.8
million as of December 31, 2012.Ebix presently has access to approximately
$55 million of readily available cash resources from its financing facility
with Citi Bank combined with cash on hand to support continued organic and
acquisitive growth, and to expand the existing operations of the Company."

Ebix Chairman, President & CEO Robin Raina said, "In the year 2012, we were
able to make significant strides in building Ebix to be the foremost global
provider of Exchanges in the insurance industry.Our acquisitions in the US,
Australia, Canada and the formation of Ebix Europe based in the insurance hub
of London, have added strategic product solutions and broadened our geographic
reach. We believe that this positions us well for growth in the years ahead."

Robin continued, "Ebix's financial goals were achieved in 2012.In June, we
forecasted a minimum quarterly run-rate of $50 million in revenue which we
exceeded in the third quarter.We believe we are on track to achieve a
quarterly run-rate of $25 million of EBITDA in the first half of 2013. Our
global team is dedicated to achieve revenue growth across all of our business
lines in 2013, to provide innovative cloud-based SaaS and mobile solutions and
to maintain our high operating margins."

Investor Conference Call

Ebix will host a conference call to discuss its fourth quarter and full fiscal
year 2012 results at 11:00 a.m. Eastern Daylight 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 the same link.Participants who choose to call in to the conference
call can do so by dialing 1-(973) 409-9690.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.

A leading international supplier of On-Demand software and E-commerce services
to the insurance industry, Ebix, Inc., (Nasdaq:EBIX) provides end-to-end
solutions ranging from infrastructure exchanges, carrier systems, agency
systems and BPO services to custom software development for all entities
involved in the insurance industry.

With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand,
India and Canada, Ebix powers multiple exchanges across the world in the field
of life, annuity, health and property & casualty insurance while conducting in
excess of $100 billion in insurance premiums on its platforms. Through its
various SaaS-based software platforms, Ebix employs hundreds of insurance and
technology professionals to provide products, support and consultancy to
thousands of customers on six continents.Ebix's focus on quality has enabled
it to be awarded Level 5 status of the Carnegie Mellon Software Engineering
Institute's Capability Maturity Model (CMM). With a recent ISO 27001-security
certification, the Company also has an ISO 9001:27001 certification for both
its development and BPO units in India.For more information, visit the
Company's website at www.ebix.com

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

SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS

As used herein, the terms "Ebix," "the Company," "we," "our" and "us" refer to
Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a
combined entity, except where it is clear that the terms mean only Ebix, Inc.

This press release contains forward-looking statements and information within
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995, Section27A of the Securities Act of 1933, and Section 21E of the
Securities Exchange Act of 1934. These forward-looking statements include
statements regarding future economic conditions, operational performance and
financial condition, liquidity and capital resources, acceptance of the
Company's products by the market, and management's plans and objectives. Words
such as "may," "could," "should," "would," "believe," "expect," "anticipate,"
"estimate," "intend," "seeks," "plan," "project," "continue," "predict,"
"will," "should," and other words or expressions of similar meaning are
intended by the Company to identify forward-looking statements, although not
all forward-looking statements contain these identifying words. These
statements are based on our current expectations about future events or
results and information that is currently available to us, involve
assumptions, risks, and uncertainties, and speak only as of the date on which
such statements are made.

Our actual results may differ materially from those expressed or implied in
these forward-looking statements. Factors that may cause such a difference,
include, but are not limited to those discussed in PartI, ItemIA, "Risk
Factors", of our Annual Report on Form 10-K as well as other reports
subsequently filed with the Securities and Exchange Commission (the "SEC"), as
well as: the willingness of independent insurance agencies to outsource their
computer and other processing needs to third parties; pricing and other
competitive pressures and the Company's ability to gain or maintain share of
sales as a result of actions by competitors and others; changes in estimates
in critical accounting judgments; changes in or failure to comply with laws
and regulations, including accounting standards, taxation requirements
(including tax rate changes, new tax laws and revised tax interpretations) in
domestic or foreign jurisdictions; exchange rate fluctuations and other risks
associated with investments and operations in foreign countries (particularly
in Australia and India wherein we have significant operations); equity
markets, including market disruptions and significant interest rate
fluctuations, which may impede our access to, or increase the cost of,
external financing; and international conflict, including terrorist acts.

Except as expressly required by the federal securities laws, the Company
undertakes no obligation to update any such factors, or to publicly announce
the results of, or changes to any of the forward-looking statements contained
herein to reflect future events, developments, changed circumstances, or for
any other reason.

Readers should carefully review the disclosures and the risk factors described
in this and other documents we file from time to time with the SEC, including
future reports on Forms 10-Q and 8-K, and any amendments thereto.

You may obtain our SEC filings at our website, www.ebix.com under the
"Investor Information" section, or over the Internet at the SEC's web site,
www.sec.gov.

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

                                Three Months Ended      Twelve Months Ended
                                December 31,            December 31,
                                2012        2011        2012        2011
                                (Unaudited) (Unaudited) (Unaudited) (Audited)
Operating revenue                $54,023     $44,050     $199,370    $168,969
                                                                 
Operating expenses:                                               
                                                               
Cost of services provided        10,447      8,658       38,133   33,589
Product development              7,637       4,823       24,825   19,208
Sales and marketing              4,233       4,089       16,687   13,642
General and administrative       8,862       8,028       33,562   26,268
Amortization and depreciation    2,584       1,897       9,155    7,514
Total operating expenses         33,763      27,495      122,362  100,221
                                                               
Operating income                 20,260      16,555      77,008      68,748
Interest income                  76          128         441         557
Interest expense                 (536)       (167)       (1,541)     (759)
Other non-operating income       (486)       1,432       190         647
(loss)
Foreign currency exchange gain   172         1,667       1,931       4,302
Income before income taxes       19,486      19,615      78,029      73,495
Income tax benefit (expense)     (741)       (2,285)     (7,460)     (2,117)
Net income                       $18,745     $17,330     $70,569     $71,378
                                                                 
Basic earnings per common share  $0.50       $0.48       $1.91       $1.89
                                                                 
Diluted earnings per common      $0.48       $0.44       $1.80       $1.75
share
                                                                 
Basic weighted average shares    37,216      36,337      36,948      37,742
outstanding
                                                                 
Diluted weighted average shares  38,925      39,374      39,100      40,889
outstanding

                                      


Ebix, Inc. and Subsidiaries
Consolidated Balance Sheets
                                    December31,         December31,
                                     2012                 2011
                                    (In thousands, except share and per share
                                     amounts)
ASSETS                               (Unaudited)          (Audited)
Current assets:                                          
Cash and cash equivalents            $36,449              $23,696
Short-term investments               971                  1,505
Trade accounts receivable, less
allowances of $1,157 and $1,719,     37,298               31,133
respectively
Deferred tax asset, net              1,835                2,981
Other current assets                 5,116                4,502
Total current assets                 81,669               63,817
Property and equipment, net          10,082               8,834
Goodwill                             326,748              259,218
Intangibles, net                     52,591               38,386
Indefinite-lived intangibles         30,887               30,453
Deferred tax asset, net              11,245               9,412
Other assets                         3,724                1,062
Total assets                         $516,946             $411,182
LIABILITIES AND STOCKHOLDERS' EQUITY                     
Current liabilities:                                     
Accounts payable and accrued         $15,497              $11,129
liabilities
Accrued payroll and related benefits 5,431                5,034
Short term debt                      11,344               6,667
Contingent liability for accrued     3,265                7,590
earn-out acquisition consideration
Current portion of long term debt
and capital lease obligation, net of 915                  165
discount of $13 and $0, respectively
Deferred revenue                     19,888               16,460
Current deferred rent                237                  266
Other current liabilities            113                  2,468
Total current liabilities            56,690               49,779
Revolving line of credit             37,840               31,750
Other long term debt and capital
lease obligation, less current       31,592               8,468
portion, net of discount of $78 and
$0, respectively
Contingent liability for accrued     14,230               —
earn-out acquisition consideration
Put option liability                 1,186                —
Deferred revenue                     375                  328
Long term deferred rent              1,449                939
Other liabilities                    6,429                3,803
Total liabilities                    149,791              95,067
                                                        
Temporary equity                     5,000                —
                                                        
Stockholders' equity:                                    
Convertible SeriesD Preferred
stock, $.10 par value, 500,000
shares authorized, no shares issued  —                    —
and outstanding at December31, 2012
and 2011
Common stock, $.10 par value,
60,000,000 shares authorized,
37,131,777 issued and 37,091,268     3,709                3,638
outstanding at December31, 2012 and
36,418,385 issued and 36,377,876
outstanding at December31, 2011
Additional paid-in capital           164,346              179,518
Treasury stock (40,509 shares as of
December31, 2012 and December31,   (76)                 (76)
2011)
Retained earnings                    201,094              137,559
Accumulated other comprehensive loss (6,918)              (4,524)
Total stockholders' equity           362,155              316,115
Total liabilities, temporary equity  $516,946             $411,182
and stockholders' equity



Ebix, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
                                          Year Ended        Year Ended
                                           December 31, 2012 December 31, 2011
                                          (in thousands)
                                          (Unaudited)       (Audited)
Cash flows from operating activities:                       
Net income                                 $70,569           $71,378
Adjustments to reconcile net income to                      
cash provided by operating activities:
Depreciation and amortization              9,155             7,514
Provision for doubtful accounts            442               976
Provision for deferred taxes               (4,760)           (5,727)
Unrealized foreign exchange (gain)/losses  —                 2,346
on forward contracts
Unrealized foreign exchange (gain)/losses  443               (5,795)
Unrealized gain on put option              (191)             (537)
Share-based compensation                   2,083             2,205
Debt discount amortization on convertible  39                21
debt
Reduction of acquisition earn-out          (699)             (2,847)
contingent liability
Changes in current assets and liabilities,                  
net of acquisitions:
Accounts receivable                        (2,023)           (2,903)
Other assets                               (371)             1,647
Accounts payable and accrued expenses      730               1,525
Accrued payroll and related benefits       (594)             (532)
Deferred rent                              (132)             (261)
Other liabilities                          (2,384)           836
Deferred revenue                           (12)              796
Net cash provided by operating activities  72,295            70,642
Cash flows from investing activities:                       
Investment in BSI, net of cash acquired    (992)             —
Investment in Taimma, net of cash acquired (5,003)           —
Investment in Fintechnix, net of cash      (4,713)           —
acquired
Investment in PlanetSoft, net of cash      (35,078)          —
acquired
Investment in TriSystems, net of cash      (9,277)           —
acquired
Investment in Curepet, Inc.                (2,000)           —
Investment in ADAM, net of cash acquired   —                 3,529
Investment in MCN, net of cash acquired    (1,537)           (381)
Investment in USIX, net of cash acquired   (1,466)           —
Investment in Health Connect Systems, net  (2,000)           (17,945)
of cash acquired
Investment in Confirmnet, net of cash      —                 (184)
acquired
Purchases of marketable securities         (785)             (3,098)
Maturities of marketable securities        1,466             7,600
Investment in Facts, net of cash acquired  (25)              (12)
Capital expenditures                       (1,965)           (2,829)
Net cash used in investing activities      (63,375)          (13,320)
Cash flows from financing activities:                       
Proceeds from / (Repayment) to line of     6,090                  6,750
credit, net
Proceeds from term loan                    45,000                 16,250
Proceeds from the issuance of note payable 161                    —
Principal payments on term loan obligation (19,125)               (6,407)
Repurchase of common stock                 (18,374)               (63,659)
Settlement on conversion of convertible    —                      (6,761)
debt
Payments of long term debt                 (600)                  —
Payments for capital lease obligations     (284)                  (300)
Excess tax benefit from share-based        1,044                  644
compensation
Proceeds from exercise of common stock     1,020                  51
options
Forfeiture of certain shares to satisfy
exercise costs and the recipients income   (992)                  —
tax obligations related to stock options
exercised and restricted stock vested
Dividends paid                             (7,034)                (1,461)
Net cash provided (used) by financing      6,906                  (54,893)
activities
Effect of foreign exchange rates on cash   $(3,073)               $(2,130)
and cash equivalents
Net change in cash and cash equivalents    12,753                 299
Cash and cash equivalents at the beginning $23,696                $23,397
of the year
Cash and cash equivalents at the end of    $36,449                $23,696
the year
Supplemental disclosures of cash flow                            
information:
Interest paid                              1,350                  710
Income taxes paid                          8,590                  3,796

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

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