Ebix Announces Second Quarter 2013 Results

Ebix Announces Second Quarter 2013 Results

  *Quarterly Revenue of $51.0 Million, up 7% Year-Over-Year
  *Q2 Diluted EPS of $0.35, down25% Year-Over-Year

ATLANTA, Aug. 9, 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 second quarter ended
June 30, 2013.

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

Revenue: Total Q2 2013 revenue was $51.0 million, an increase of 7% on a
year-over-year basis, as compared to Q2 2012 revenue of $47.7 million. During
the six months ended June 30, 2013, revenue increased $12.0 million or 13%, to
$103.6 million compared to $91.5 million during the same period in 2012.

Earnings per Share: Q2 2013 diluted earnings per share decreased 25%
year-over-year to $0.35, as compared to $0.47 in the second quarter of 2012.
For purposes of the Q2 2013 EPS calculation, there was an average of 38.8
million diluted shares outstanding during the quarter, which approximately is
the same as Q2 2012.

Operating Cash: Cash generated from operations during Q2 2013 was $10.6
million, down 50% year-over-year as compared to $21.0 million in Q2 2012.
During the six months ended June 30, 2013, the Company generated $24.8 million
of net cash flow from operating activities, a decrease of 28% as compared to
$34.7 million in the first six months of 2012.

Margins:Operating margins for Q2 2013 were higher at 37.8% as compared to
37.1% for Q2 2012, and 36.7% for Q1 2013. The operating margins in Q2 2013
were positively impacted by a $5.8 million gain from the reduction of the earn
out accrual relating to our acquisition of PlanetSoft, while being negatively
impacted by certain legal and extraordinary operational costs adding up to
$4.5 million in Q2 of 2013.The Company was also negatively impacted by the
impact of lower initial operating margins from some of the businesses acquired
in 2012 and 2013, as compared to our existing operations. The Company expects
a portion of the legal costs in Q2 of 2013 to continue for a few more
quarters, impacting our operating margins negatively.

Diversified Revenue Base: Ebix continued to have highly diversified revenue
streams across thousands of clients, with the largest client accounting for
less than 2.5% of the Company's Q2 2013 revenues.

Channel Revenues: The Exchange channel continued to be the largest channel for
Ebix accounting for 79% of the Company's Q2 2013 Revenues as compared to 80%
in Q2 2012.

                                    Three Months Ended Six Months Ended
                                     June 30,           June 30,
(dollar amounts in thousands)        2013      2012     2013     2012
Exchanges                            $40,501   $38,182  $82,187  $72,828
Broker Systems                       4,766     4,422    9,488    9,176
Business Process Outsourcing ("BPO") 4,013     3,890    8,177    7,461
                                                             
Carrier Systems                      1,724     1,222    3,718    2,078
Totals                               $51,004   $42,267  $103,570 $91,543

Net Income: Q2 2013 net income was $13.5 million, a 25% decrease on a
year-over-year basis, as compared to Q2 2012 net income of $18.1
million.During the six months ended June 30, 2013, net income decreased $2.9
million or 9%, to $30.9 million compared to $33.8 million during the same
period in 2012.The net income in Q2 2013 was impacted negatively by the
increase in the a variable stock put option liability of $ 1.6 million
associated with the issuance of stock to PlanetSoft shareholders worth $5
million, as also by the company increasing certain tax reserves by $2.5
million in Q2 2013.

Share Repurchases:The Company purchased 250,900 shares of its common stock in
June at an average price of $9.93 for an aggregate amount of $2.5 million. No
shares have been purchased in Q3 2013. The Company currently has approximately
$102.9 million remaining in its share repurchase authorization.

Q3 2013 Diluted Share Count: As of today, the Company expects the diluted
share count for Q3 2013 to be approximately 38.6 million.

Debt Payments: In Q2 the Company used $5.6 million to reduce its bank debt,
and in the month subsequent to June 30^th, the Company made additional debt
payments in the amount of $7.4 million to further reduce its bank debt, thus
bringing its total current bank debt down to $ 62.2 million as of August 9,
2013 date. Our current net debt as of August 9, 2013 is $30.8 million.

Tax Payments: In the first 6 months of 2013, the Company paid $11.8 million of
cash in taxes vs. $4.8 million for the same period in 2012.

"With a few distractions in the quarter, Ebix grew its revenue 7% year over
year to $51.0 million which did not match our goals for the quarter. The
entire Ebix team is currently focused on building our sales pipeline and
implementing signed contracts" Ebix Chairman, President & CEO Robin Raina
said. "We have had good customer wins in late June and July and are in the
process of negotiating large customer contracts. We are focused on generating
increased subscription and transaction revenue and adding to our net operating
cash flow and income over the next few quarters."

Robin said, "We believe there is great opportunity ahead of us, many of our
key initiatives such as the Annuity Maintenance platform, Ebix Enterprise and
ADAM-on-Demand are going into active production mode. All these initiatives
are targeted at clients that can generate large amounts of recurring revenue
streams for us with high operating margins. We are committed to achieving our
operating margin target of 40% plus minus a few points as we move away from
the events of the last few months."

Robin added, "We believe that many of our utility model services have the
ability to lead the industry, in different geographies across the world. We
are presently in discussions with numerous clients for deals, that on an
individual basis have the potential to change our recurring revenue streams
meaningfully. While there are no guarantees that any of these will be closed,
we will try our best to sign deals that can have a positive impact on our
future."

"During the second quarter Ebix reduced debt on our revolver and other debt by
$5.6 million." said Ebix SVP and CFO Robert Kerris. In addition, we bought
$2.5 million of shares in June after we announced our $100 million share
buyback authorization. During the quarter the Company continued to invest in
the growth of the business with the purchase of Qatarlyst for $4.7 million,
the payment of $2.4 million in earn-out obligations and $307 thousand of
capital expenditures. Our balance sheet reflects the aggregate cash, cash
equivalents, and short-term cash deposit investments in the amount of $36.1
million as of June 30, 2013, and working capital of $12.4 million. Our
accounts receivable DSO stood at 68 days as of June 30 as compared to 63 days
from year-end 2012, and 59 days from a year earlier at June 30, 2012.Our net
debt stood at $36.0 million as of June 30, 2013."

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, Section 27A 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 our Annual Report on Form
10-K and subsequent reports filed with the SEC, as well as: the risk of an
unfavorable outcome of the pending governmental investigations or shareholder
class action lawsuits, reputational harm caused by such investigations and
lawsuits, 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 the 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.

Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
                                                                   
                                                                   
                                          Three Months Ended Six Months Ended
                                           June 30,           June30
                                          2013      2012     2013     2012
Operating revenue                          $51,004   $47,716  $103,570 $91,543
Operating expenses:                                                 
                                                                   
Cost of services provided                  10,358    9,157    20,249   18,186
Product development                        6,724     5,814    13,759   10,086
Sales and marketing                        3,827     4,296    7,739    8,108
General and administrative                 8,253     8,577    18,224   15,021
Amortization and depreciation              2,548     2,161    5,000    4,102
Total operating expenses                   31,710    30,005   64,971   55,503
                                                                   
Operating income                           19,294    17,711   38,599   36,040
Interest income                            91        110      184      277
Interest expense                           (281)     (312)    (643)    (565)
Other non-operating income (loss)          (1,425)   262      (1,343)  262
Foreign currency exchange gain (loss)      (123)     2,591    (293)    2,295
Income before income taxes                 17,556    20,362   36,504   38,309
Income tax expense                         (4,014)   (2,295)  (5,618)  (4,557)
Net income                                 $13,542   $18,067  $30,886  $33,752
                                                                   
Basic earnings per common share            $0.36     $0.49    $0.83    $0.92
                                                                   
Diluted earnings per common share          $0.35     $0.47    $0.80    $0.86
                                                                   
Basic weighted average shares outstanding  37,210    36,908   37,189   36,679
                                                                   
Diluted weighted average shares            38,789    38,827   38,784   39,175
outstanding


Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
                                                                
                                                     June30,    December31,
                                                      2013        2012
ASSETS                                                (Unaudited) 
Current assets:                                                  
Cash and cash equivalents                             $35,394     $36,449
Short-term investments                                707         971
Trade accounts receivable, less allowances of $1,595  38,500      37,298
and $1,157, respectively
Deferred tax asset, net                               2,047       1,835
Other current assets                                  5,201       5,116
Total current assets                                  81,849      81,669
                                                                
Property and equipment, net                           9,226       10,082
Goodwill                                              333,872     326,748
Intangibles, net                                      53,969      52,591
Indefinite-lived intangibles                          30,887      30,887
Deferred tax asset, net                               24,308      11,245
Other assets                                          3,933       3,724
Total assets                                          $538,044    $516,946
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable and accrued liabilities              $23,552     $15,497
Accrued payroll and related benefits                  6,464       5,431
Short term debt                                       12,375      11,344
Contingent liability for accrued earn-out acquisition 6,343       3,265
consideration
Current portion of long term debt and capital lease
obligations, net of discount of $29 and $13,          845         915
respectively
Deferred revenue                                      16,995      19,888
Put option liability                                  2,530       —
Current deferred rent                                 254         237
Other current liabilities                             105         113
Total current liabilities                             69,463      56,690
                                                                
Revolving line of credit                              32,840      37,840
Long term debt and capital lease obligations, less
current portion, net of discount of $39 and$78,       25,750      31,592
respectively
Other liabilities                                     8,794       6,429
Contingent liability for accrued earn-out acquisition 9,155       14,230
consideration
Put option liability                                  —           1,186
Deferred revenue                                      168         375
Long term deferred rent                               2,285       1,449
Total liabilities                                     148,455     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 June  —           —
30, 2013 and December31, 2012
Common stock, $0.10 par value, 60,000,000 shares
authorized, 37,016,509 issued and 36,976,000          3,698       3,709
outstanding at June 30, 2013 and 37,131,777 issued
and 37,091,268 outstanding at December31, 2012
Additional paid-in capital                            162,795     164,346
Treasury stock (40,509 shares as of June 30, 2013 and (76)        (76)
December31, 2012)
Retained earnings                                     229,186     201,094
Accumulated other comprehensive loss                  (11,014)    (6,918)
Total stockholders' equity                            384,589     362,155
Total liabilities and stockholders' equity            $538,044    $516,946


Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                                                    
                                                            Six Months Ended
                                                             June 30,
                                                            2013     2012
Cash flows from operating activities:                                
Net income                                                   $30,886  $33,752
Adjustments to reconcile net income to net cash provided by          
operating activities:
Depreciation and amortization                                5,000    4,102
Benefit for deferred taxes                                   (14,119) (956)
                                                                    
Share based compensation                                     996      1,059
Provision for doubtful accounts                              527      316
Debt discount amortization on convertible debt               23       13
Unrealized foreign exchange (gain) loss                      339      (593)
(Gain) loss on put option                                    1,344    (263)
Reduction of acquisition earnout accruals                    (6,114)  —
Changes in assets and liabilities, net of effects from               
acquisitions:
Accounts receivable                                          (2,101)  2,163
Other assets                                                 182      (1,009)
Accounts payable and accrued expenses                        7,303    (858)
Accrued payroll and related benefits                         1,296    (384)
Deferred revenue                                             (3,051)  (225)
Deferred rent                                                11       (56)
Other liabilities                                            2,317    (2,338)
Net cash provided by operating activities                    24,839   34,723
                                                                    
Cash flows from investing activities:                                
Acquisition of Qatarlyst, net of cash acquired               (4,740)  —
Investment in MCN                                            —        (1,537)
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              —        (33,967)
Investment in Curepet, Inc.                                  —        (2,000)
Investment in Taimma                                         (2,250)  —
Investment in USIX                                           (727)    —
Maturities of marketable securities (net of purchases)       225      979
Purchases of marketable securities                           —        (785)
Capital expenditures                                         (652)    (1,079)
Net cash used in investing activities                        (8,144)  (49,097)
                                                                    
Cash flows from financing activities:                                
Repayments on revolving line of credit, (net of proceeds)    (5,000)  1,090
Proceeds from term loan                                      —        45,000
Principal payments of term loan obligation                   (4,125)  (15,000)
Repurchases of common stock                                  (2,492)  (9,396)
Excess tax benefit from share-based compensation             —        50
Proceeds from the exercise of stock options                  662      714
Forfeiture of certain shares to satisfy exercise costs and
the recipients income tax obligations related to stock       (728)    
options exercised and restricted stock vested
Dividend payments                                            (2,794)  (3,296)
Principal payments of debt obligations                       (624)    (600)
Payments of capital lease obligations                        (155)    (165)
Net cash provided by/ (used in) financing activities         (15,256) 18,397
Effect of foreign exchange rates on cash                     (2,494)  (2,406)
Net change in cash and cash equivalents                      (1,055)  1,617
Cash and cash equivalents at the beginning of the period     36,449   23,696
Cash and cash equivalents at the end of the period           $35,394  $25,313
Supplemental disclosures of cash flow information:                   
Interest paid                                                $635     $567
Income taxes paid                                            $11,830  $4,842

CONTACT: Investors
         Steven Barlow, Vice President - Investor Relations
         678-281-2043 or steve.barlow@ebix.com
         Aaron Tikkoo
         678-281-2027 or atikkoo@ebix.com
        
         Media
         Andy Brimmer / Tim Lynch / Andrew Siegel
         Joele Frank, Wilkinson Brimmer Katcher
         212-355-4449

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