Ebix Announces First Quarter 2013 Results

Ebix Announces First Quarter 2013 Results

  *Quarterly Revenue of $52.6 Million, Up 20% Year-Over-Year
  *Q1 Diluted EPS of $0.45, Up 13% Year-Over-Year

ATLANTA, May 10, 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 first quarter ended
March 31, 2013.

Ebix delivered the following results for the first quarter of 2013:

Revenues: Total Q1 2013 revenue was $52.6 million, an increase of 20% on a
year-over-year basis, as compared to Q1 2012 revenue of $43.8 million.

Earnings per Share: Q1 2013 diluted earnings per share rose 13% year-over-year
to $0.45, as compared to $0.40 in the first quarter of 2012. For purposes of
the Q1 2013 EPS calculation, there was an average of 38.8 million diluted
shares outstanding during the quarter, as compared to 39.5 million diluted
shares outstanding in Q1 2012.

Operating Cash: Cash generated from operations Q1 2013 was $14.3 million, up
5% year-over-year as compared to $13.7 million in Q1 2012.

Margins: Operating margins for Q1 2013 were lower at 37% as compared to 42%
for Q1 2012. The operating margins in Q1 2013 were impacted by the Company
incurring certain onetime legal and travel costs associated with the recently
announced merger with an affiliate of Goldman Sachs, and the impact of lower
initial operating margins from some of the businesses acquired in 2012, as
compared to our existing operations. Furthermore, in Q1 of 2012, the Company
realized a net benefit in the approximate amount of $971 thousand related to a
termination fee received by the Company in connection with a failed business
acquisition.

Diversified Revenue Base: Ebix continued to have highly diversified revenue
streams across thousands of clients, with the largest client accounting for
only 2.5% of the Company's Q1 2013 revenues.

Channel Revenues: The Exchange channel continued to be the largest channel for
Ebix accounting for 79% of the Company's Q1 2013 Revenues as compared to 79%
in Q1 2012.

                                    
(dollar amounts in thousands)        Three Months Ended
                                    March 31,
Channel                              2013    2012    % Change
Exchanges                            $41,686 $34,646 20%
Broker Systems                       4,722   4,754   0%
Business Process Outsourcing ("BPO") 4,164   3,571   17%
Carrier Systems                      1,994   856     133%
Total Revenue                        $52,566 $43,827 23%

Net Income: Q1 2013 net income was $17.3 million, an 11% increase on a
year-over-year basis, as compared to Q1 2012 net income of $15.7 million.

Q2 2013 Diluted Share Count: As of today, the Company expects the diluted
share count for Q2 2013 to be approximately 38.8 million.

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

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.

The information contained in 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. This information
includes 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. In
addition, certain statements included in this and our future filings with the
Securities and Exchange Commission ("SEC"), in press releases, and in oral and
written statements made by us or with our approval, which are not statements
of historical fact, are forward-looking statements. 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 forward-looking statements
are found at various places throughout this report and in the documents
incorporated herein by reference. 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," below, 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
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
                                                    
                                                    
                                           Three Months Ended
                                           March 31,
                                           2013      2012
Operating revenue                           $52,566 $43,827
                                                    
Operating expenses:                                  
Cost of services provided                   9,891     9,029
Product development                         7,035     4,272
Sales and marketing                         3,912     3,812
General and administrative                  9,971     6,444
Amortization and depreciation               2,452     1,941
Total operating expenses                    33,261    25,498
                                                    
Operating income                            19,305    18,329
Interest income                             93        167
Interest expense                            (362)     (253)
Other non-operating income                  82        --
Foreign currency exchange loss              (170)     (296)
Income before income taxes                  18,948    17,947
Income tax expense                          (1,604)   (2,262)
Net income                                  $17,344 $15,685
                                                    
Basic earnings per common share             $0.47   $0.43
                                                    
Diluted earnings per common share           $0.45   $0.40
                                                    
Basic weighted average shares outstanding   37,168    36,450
                                                    
Diluted weighted average shares outstanding 38,779    39,523


Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
                                                                
                                                     March31,   December31,
                                                     2013        2012
ASSETS                                                (Unaudited) 
Current assets:                                                  
Cash and cash equivalents                             $43,005   $36,449
Short-term investments                                778         971
Trade accounts receivable, less allowances of $1,075  39,533      37,298
and $1,157, respectively
Deferred tax asset, net                               1,899       1,835
Other current assets                                  4,680       5,116
Total current assets                                  89,895      81,669
                                                                
Property and equipment, net                           9,676       10,082
Goodwill                                              326,223     326,748
Intangibles, net                                      50,654      52,591
Indefinite-lived intangibles                          30,887      30,887
Deferred tax asset, net                               18,764      11,245
Other assets                                          3,654       3,724
Total assets                                          $529,753  $516,946
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable and accrued liabilities              $20,151   $15,497
Accrued payroll and related benefits                  4,800       5,431
Short term debt                                       9,625       11,344
Contingent liability for accrued earn-out acquisition 2,406       3,265
consideration
Current portion of long term debt and capital lease
obligations, net of discount of $0 and $13,           905         915
respectively
Deferred revenue                                      19,584      19,888
Current deferred rent                                 226         237
Other current liabilities                             74          113
Total current liabilities                             57,771      56,690
                                                                
Revolving line of credit                              37,840      37,840
Long term debt and capital lease obligations, less    29,117      31,592
current portion, net of discount of $78
Other liabilities                                     6,471       6,429
Contingent liability for accrued earn-out acquisition 14,027      14,230
consideration
Put option liability                                  1,105       1,186
Deferred revenue                                      270         375
Long term deferred rent                               1,465       1,449
Total liabilities                                     148,066     149,791
                                                                
Temporary equity                                      5,000       5,000
                                                                
Stockholders' equity:                                            
Preferred stock, $0.10 par value, 500,000 shares
authorized, no shares issued and outstanding at March --          --
31, 2013 and December31, 2012
Common stock, $0.10 par value, 60,000,000 shares
authorized, 37,208,639 issued and 37,168,130          3,717       3,709
outstanding at March 31, 2013 and 37,131,777 issued
and 37,091,268 outstanding at December31, 2012
Additional paid-in capital                            164,838     164,346
Treasury stock (40,509 shares as of March 31, 2013    (76)        (76)
and December31, 2012)
Retained earnings                                     215,644     201,094
Accumulated other comprehensive loss                  (7,436)     (6,918)
Total stockholders' equity                            376,687     362,155
Total liabilities and stockholders' equity            $529,753  $516,946


Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                                                   
                                                          Three Months Ended
                                                          March 31,
                                                          2013      2012
Cash flows from operating activities:                               
Net income                                                 $17,344 $15,685
Adjustments to reconcile net income to net cash provided            
by operating activities:
Depreciation and amortization                              2,452     1,941
Benefit for deferred taxes                                 (7,538)   (1,428)
Share based compensation                                   511       548
Provision for doubtful accounts                            --        266
Debt discount amortization on convertible debt             13        --
Unrealized foreign exchange loss                           9         661
Gain on put option                                         (81)      --
Reduction of acquisition earnout accruals                  (299)     --
Changes in assets and liabilities, net of effects from              
acquisitions:
Accounts receivable                                        (2,234)   1,771
Other assets                                               357       (302)
Accounts payable and accrued expenses                      4,719     (861)
Accrued payroll and related benefits                       (643)     (1,575)
Deferred revenue                                           (350)     (560)
Deferred rent                                              44        (75)
Other current liabilities                                  (39)      (2,336)
Net cash provided by operating activities                  14,265    13,735
                                                                   
Cash flows from investing activities:                               
Investment in USIX                                         (570)     --
Maturities of marketable securities (net of purchases)     208       979
Capital expenditures                                       (345)     (673)
Net cash provided by/(used in) investing activities        (707)     306
                                                                   
Cash flows from financing activities:                               
Principal payments of term loan obligation                 (4,125)   --
Excess tax benefit from share-based compensation           --        27
Proceeds from the exercise of stock options                553       14
Forfeiture of certain shares to satisfy exercise costs and
the recipients income tax obligations related to stock     (564)     --
options exercised and restricted stock vested
Dividend payments                                          (2,794)   (1,464)
Principal payments of debt obligations                     (12)      --
Payments of capital lease obligations                      (80)      (45)
Net cash provided used in financing activities             (7,022)   (1,468)
Effect of foreign exchange rates on cash                   20        871
Net change in cash and cash equivalents                    6,556     13,444
Cash and cash equivalents at the beginning of the period   36,449    23,696
Cash and cash equivalents at the end of the period         $43,005 $37,140
Supplemental disclosures of cash flow information:                  
Interest paid                                              $352    $312
Income taxes paid                                          $3,548  $3,030

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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