Ebix Announces Fourth Quarter and Full Year 2011 Results
Ebix, Inc.
13.03.2012 12:25
---------------------------------------------------------------------------
-- Quarterly Revenue of $44.1 Million, up 26% Year-Over-Year
-- Full Year Revenue of $169.0 Million, up 28% Year-Over-Year
-- Q4 Diluted EPS of $0.44, up 6% Year-Over-Year
-- Full Fiscal Year Diluted EPS of $1.75, up 15% Year-Over-Year
-- Q4 Net Income of $17.3 Million, up 9% Year-Over-Year
-- Full Year Net Income of $71.4 Million, up 21% Year-Over-Year
-- Q4 Operating cash flow of $19.4 Million, up 2% Year-over-Year
-- Full Year Operating cash flow of $71.3 Million, up 35% Year-over-Year
ATLANTA, March 13, 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 results for the fiscal fourth quarter and
full year ended December 31, 2011. Ebix will host a conference call at 11:00
a.m. EDT (details below).
'These results mark 12 years of continued sequential growth for Ebix in the
areas of revenue, net income and diluted EPS,' said Robin Raina, Chairman,
President and CEO, Ebix, Inc. 'We are pleased that these results are in line
with our goals for 2011.'
Ebix delivered the following results for the fourth quarter and full year of
2011:
Revenues: Total Q4 2011 revenue was $44.1 million, an increase of 26% on a
year-over-year basis, as compared to Q4 2010 revenue of $35.1 million.
For the full fiscal year of 2011, the company reported revenue of $169.0
million, an increase of 28% from the prior year revenues of $132.2 million.
Earnings per Share: Q4 2011 GAAP diluted earnings per share rose 6%
year-over-year to $0.44, as compared to $0.42 in the fourth quarter of 2010.
For purposes of the Q4 2011 EPS calculation, there was an average of 39.4
million diluted shares outstanding during the quarter, as compared to 38.4
million diluted shares outstanding in Q4 of 2010.
For the full year of 2011, GAAP diluted earnings per share rose 15%
year-over-year to $1.75 from $1.51 in 2010. For purposes of the EPS
calculation, there was an average of approximately 40.9 million diluted shares
outstanding during the year 2011 as compared to an average of 39.0 million
diluted shares outstanding in 2010.
Operating Cash: Cash generated from operations for the fiscal fourth quarter
was $19.4 million, up 2% year-over-year. For the full year, operating cash flow
totaled $71.3 million in 2011, up 35% year-over-year as compared to $52.8
million in 2010.
Margins:In 2011, the Company achieved Gross Margins of 80% compared to 78% in
2010. Operating margins for 2011 were slightly improved at 41% as compared to
40% for 2010.
Diversified Revenue Base: Ebix continued to have highly diversified revenue
streams across thousands of clients, with the largest client accounting for
only 3.5% of the Company's 2011 revenues.
Channel Revenues: The Exchange channel continued to be the largest channel for
Ebix accounting for 77% of the Company's 2011 Revenues as compared to 71% in
2010.
--------------------------------------------------------------------------------
-
(dollar amount in Three Months Ended December Year Ended December 31,
thousands) 31,
Channel 2011 2010 % 2011 2010 %
Change Change
--------------------------------------------------------------------------------
Exchanges $ 34,330 $ 25,087 37% $ 130,638 $ 94,212 39%
BPO 3,996 4,012 -- 14,944 15,586 -4%
Broker Systems 4,609 4,167 11% 18,006 13,841 30%
Carrier Systems 1,115 1,831 -39% 5,381 8,549 -37%
-----------------------------------------------------------
Total Revenue $ 44,050 $ 35,097 26% $ 168,969 $ 132,188 28%
===========================================================
Share Repurchases: During Q4 2011, the Company repurchased 188,000 shares of
our common stock at an average price of $14.14 per share for an aggregate
amount of $2.7 million. As of date, the company has not repurchased any shares
since October 6, 2011. For 2011, Ebix repurchased 3.5 million shares for an
aggregate amount of $63.7 million or an average price of $18.13. The Board of
Directors has authorized a total repurchase limit of $100 million of which
$23.8 million still remains outstanding.
Net Income: Q4 2011 net income was $17.3 million, a 9% increase on a
year-over-year basis, as compared to Q4 2010 net income of $15.9 million. For
2011, GAAP Net Income increased 21% to $71.4 million compared to $59.0 million
in 2010.
Q1 2012 Diluted Share Count: As of today, the Company expects the diluted share
count for Q1 2012 to be approximately 39.4 million.
Ebix SVP & CFO Robert Kerris said, 'Virtually all of the Company's reported net
income of $71.4 million for the year 2011 has been realized in the $71.3 of
positive operating cash flow generated by our businesses. We are very pleased
with the Company's performance over the last three years from 2008 to 2011, as
our revenues have increased 126% and our operating cash flows have increased
166%. Ebix has been able to improve its operating margins while efficiently
integrating many business acquisitions during the last three years.'
Ebix Chairman, President & CEO Robin Raina said, 'On our year end 2010 call I
said that our vision in 2011 was to focus on 3 key areas - one, launch of new
exchanges and on-demand backend platforms in various geographies across the
world; two, launch of a mobile utility initiative with applications in diverse
insurance areas being deployed on a utilities basis; three, continued focus on
services like Ebix Enterprise targeted at providing a single on-demand platform
to a wide variety of insurance entities across all insurance product lines. In
the year 2011, we were able to make significant progress in all 3 areas in
addition to integrating our acquisitions of ADAM and HealthConnect.'
Robin continued, 'Ebix's financial goals remain consistent with our philosophy
to expand our reach and integration with our clients and generate shareholder
value. In 2011, we used our free cash flow to repurchase 9% of our outstanding
shares, and now have paid our second quarterly dividend while growing
organically and through business acquisitions. Our long term strategy has not
changed as we focus our team's efforts daily towards becoming the premier
global provider and leader in the fast growing business of Exchanges to
simplify the changing dynamic in all areas of insurance and financial services.
Our commitment to our shareholders is to continue to drive value through the
common sense use of our free cash flow by strategically investing in internal
growth initiatives, accretive business acquisitions and mergers, and stock
repurchases.'
Investor Conference Call
Ebix will host a conference call to discuss its fourth quarter and full fiscal
year 2011 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). Ebix has also earned ISO 9001:2000
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.
This Form 10-K and certain information incorporated herein by reference
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 Part I, Item IA, '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)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------------------------------
2011 2010 2011 2010
(Unaudited) (Unaudited) (Unaudited (Audited)
)
------------------------------------------------
Operating revenue $ 44,050 $ 35,097 $ 168,969 $ 132,188
Operating expenses:
Cost of services provided 8,658 7,691 33,589 29,599
Product development 4,823 3,379 19,208 13,607
Sales and marketing 4,089 1,613 13,642 6,372
General and administrative 8,028 7,151 26,268 24,065
Amortization and depreciation 1,897 1,605 7,514 6,038
------------------------------------------------
Total operating expenses 27,495 21,439 100,221 79,681
------------------------------------------------
Operating income 16,555 13,658 68,748 52,507
Interest income 128 141 557 519
Interest expense (167) (152) (759) (902)
Other non-operating income 1,432 641 647 6,319
Foreign currency exchange gain 1,667 352 4,302 1,211
------------------------------------------------
Income before income taxes 19,615 14,640 73,495 59,654
Income tax expense (benefit) (2,285) 1,304 (2,117) (635)
------------------------------------------------
Net income $ 17,330 $ 15,944 $ 71,378 $ 59,019
================================================
Basic earnings per common $ 0.48 $ 0.45 $ 1.89 $ 1.69
share*
Diluted earnings per common $ 0.44 $ 0.42 $ 1.75 $ 1.51
share*
Basic weighted average shares 36,337 35,083 37,742 34,845
outstanding*
Diluted weighted average shares 39,374 38,417 40,889 39,018
outstanding*
Ebix, Inc. and Subsidiaries
Consolidated Balance Sheets
December December
31, 2011 31, 2010
---------------------
(In thousands,
except share
amounts)
ASSETS
Current assets:
Cash and cash equivalents $ 23,696 $ 23,397
Short-term investments 1,505 6,300
Trade accounts receivable, less allowances of $1,719 and 31,133 26,028
$1,126, respectively
Deferred tax asset, net 2,981 --
Other current assets 4,502 5,057
---------------------
Total current assets 63,817 60,782
---------------------
Property and equipment, net 8,834 7,806
Goodwill 259,218 180,602
Intangibles, net 38,386 22,574
Indefinite-lived intangibles 30,453 30,552
Deferred tax asset, net 9,412 --
Other assets 1,062 984
---------------------
Total assets $ 411,182 $ 303,300
=====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 18,719 $ 15,344
Accrued payroll and related benefits 5,034 4,536
Short term debt 6,667 5,000
Current portion of convertible debt, net of discount of $0 -- 4,944
and $56, respectively
Current portion of long term debt and capital lease 165 426
obligation
Deferred revenue 16,460 8,610
Current deferred rent 266 --
Other current liabilities 2,468 225
---------------------
Total current liabilities 49,779 39,085
---------------------
Revolving line of credit 31,750 25,000
Other long term debt and capital lease obligation, less 8,468 205
current portion
Deferred tax liability, net -- 3,534
Put option liability -- 537
Deferred revenue 328 126
Long term deferred rent 939 554
Other liabilities 3,803 2,991
---------------------
Total liabilities 95,067 72,032
---------------------
Commitments and Contingencies, Note 7
Stockholders' equity:
Convertible Series D Preferred stock, $.10 par value, -- --
500,000 shares authorized, no shares issued and
outstanding at December 31, 2011 and 2010
Common stock*, $.10 par value, 60,000,000 shares 3,638 3,602
authorized, 36,418,385 issued and 36,377,876 outstanding
at December 31, 2011 and 36,057,791 issued and 36,017,282
outstanding at December 31, 2010
Additional paid-in capital 179,518 153,221
Treasury stock* (40,509 shares as of December 31, 2011 and (76) (76)
December 31, 2010 respectively)
Retained earnings 137,559 67,642
Accumulated other comprehensive income (loss) (4,524) 6,879
---------------------
Total stockholders' equity 316,115 231,268
=====================
Total liabilities and stockholders' equity $ 411,182 $ 303,300
=====================
Ebix, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Year Ended Year Year Ended
December Ended December
31, 2011 December 31, 2009
31, 2010
-----------------------------------
(In thousands)
Cash flows from operating activities:
Net income $ 71,378 $ 59,019 $ 38,822
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 7,514 6,038 3,955
Provision for doubtful accounts 976 1,143 321
Provision for deferred taxes (5,083) (1,752) (2,615)
Unrealized foreign exchange gain on forward 2,346 (1,304) (500)
contracts
Unrealized foreign exchange gain (5,795) (598) --
Unrealized gain on put option (537) (6,059) (89)
Share-based compensation 2,205 1,850 1,369
Debt discount amortization on convertible 21 327 --
debt
Reduction of acquisition earn-out contingent (2,847) (1,500) --
liability
Changes in current assets and liabilities,
net of acquisitions:
Accounts receivable (2,903) (3,018) (8,619)
Other assets 1,647 (955) (577)
Accounts payable and accrued expenses 1,525 (356) 1,127
Accrued payroll and related benefits (532) 165 587
Deferred rent (261) (125) 27
Other liabilities 836 (61) 109
Deferred revenue 796 (35) (40)
-----------------------------------
Net cash provided by operating activities 71,286 52,779 33,877
-----------------------------------
Cash flows from investing activities:
Investment in ADAM, net of cash acquired 3,529 -- --
Investment in MCN, net of cash acquired (381) (2,931) --
Investment in Trades Monitor, net of cash -- (2,749) --
acquired
Investment in Connective Technologies, net -- (1,337) --
of cash acquired
Investment in USIX, net of cash acquired -- (7,131) --
Investment in e-Trek, net of cash acquired -- (1,011) --
Investment in IDS, net of cash acquired -- -- (1,000)
Investment in Health Connect Solutions, net (17,945) -- --
of cash acquired
Investment in Periculum, net of cash -- (6) (200)
acquired
Investment in Acclamation, net of cash -- -- (85)
acquired
Investment in Confirmnet, net of cash (184) (2,975) (3,279)
acquired
Purchases of marketable securities (3,098) (11,507) (4,133)
Maturities of marketable securities 7,600 7,006 3,870
Investment in Facts, net of cash acquired (12) (11) (6,215)
Investment in Peak Performance, net of cash -- -- (7,894)
acquired
Investment in EZ Data, net of cash acquired -- -- (25,362)
Capital expenditures (2,829) (1,754) (3,129)
-----------------------------------
Net cash used in investing activities (13,320) (24,406) (47,427)
-----------------------------------
Cash flows from financing activities:
Proceeds from / (Repayment) to line of 6,750 1,900 (1,846)
credit, net
Proceeds from term loan 16,250 10,157 --
Proceeds from the issuance of convertible -- -- 25,000
debt
Principal payments on term loan obligation (6,407) (5,000) --
Repurchase of common stock (63,659) (10,650) (505)
Settlement on conversion of convertible debt (6,761) (22,521) --
Payments of long term debt -- -- (742)
Payments for capital lease obligations (300) (804) (293)
Proceeds from exercise of common stock 51 1,236 1,565
options
Dividends paid (1,461) -- --
-----------------------------------
Net cash provided (used) by financing (55,537) (25,682) 23,179
activities
-----------------------------------
Effect of foreign exchange rates on cash and (2,130) 1,479 123
cash equivalents
-----------------------------------
Net change in cash and cash equivalents 299 4,170 9,752
Cash and cash equivalents at the beginning 23,397 19,227 9,475
of the year
-----------------------------------
Cash and cash equivalents at the end of the $ 23,696 $ 23,397 $ 19,227
year
-----------------------------------
Supplemental disclosures of cash flow
information:
Interest paid $ 710 $ 526 $ 1,125
Income taxes paid 2,907 2,396 4,752
Steven Barlow
678-281-2043 or steve.barlow@ebix.com
or
Aaron Tikkoo
678-281-2027 or atikkoo@ebix.com
News Source: NASDAQ OMX
13.03.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Ebix, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US2787152063
WKN:
End of Announcement DGAP News-Service
---------------------------------------------------------------------------
Ebix, Inc.
13.03.2012 12:25
---------------------------------------------------------------------------
-- Quarterly Revenue of $44.1 Million, up 26% Year-Over-Year
-- Full Year Revenue of $169.0 Million, up 28% Year-Over-Year
-- Q4 Diluted EPS of $0.44, up 6% Year-Over-Year
-- Full Fiscal Year Diluted EPS of $1.75, up 15% Year-Over-Year
-- Q4 Net Income of $17.3 Million, up 9% Year-Over-Year
-- Full Year Net Income of $71.4 Million, up 21% Year-Over-Year
-- Q4 Operating cash flow of $19.4 Million, up 2% Year-over-Year
-- Full Year Operating cash flow of $71.3 Million, up 35% Year-over-Year
ATLANTA, March 13, 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 results for the fiscal fourth quarter and
full year ended December 31, 2011. Ebix will host a conference call at 11:00
a.m. EDT (details below).
'These results mark 12 years of continued sequential growth for Ebix in the
areas of revenue, net income and diluted EPS,' said Robin Raina, Chairman,
President and CEO, Ebix, Inc. 'We are pleased that these results are in line
with our goals for 2011.'
Ebix delivered the following results for the fourth quarter and full year of
2011:
Revenues: Total Q4 2011 revenue was $44.1 million, an increase of 26% on a
year-over-year basis, as compared to Q4 2010 revenue of $35.1 million.
For the full fiscal year of 2011, the company reported revenue of $169.0
million, an increase of 28% from the prior year revenues of $132.2 million.
Earnings per Share: Q4 2011 GAAP diluted earnings per share rose 6%
year-over-year to $0.44, as compared to $0.42 in the fourth quarter of 2010.
For purposes of the Q4 2011 EPS calculation, there was an average of 39.4
million diluted shares outstanding during the quarter, as compared to 38.4
million diluted shares outstanding in Q4 of 2010.
For the full year of 2011, GAAP diluted earnings per share rose 15%
year-over-year to $1.75 from $1.51 in 2010. For purposes of the EPS
calculation, there was an average of approximately 40.9 million diluted shares
outstanding during the year 2011 as compared to an average of 39.0 million
diluted shares outstanding in 2010.
Operating Cash: Cash generated from operations for the fiscal fourth quarter
was $19.4 million, up 2% year-over-year. For the full year, operating cash flow
totaled $71.3 million in 2011, up 35% year-over-year as compared to $52.8
million in 2010.
Margins:In 2011, the Company achieved Gross Margins of 80% compared to 78% in
2010. Operating margins for 2011 were slightly improved at 41% as compared to
40% for 2010.
Diversified Revenue Base: Ebix continued to have highly diversified revenue
streams across thousands of clients, with the largest client accounting for
only 3.5% of the Company's 2011 revenues.
Channel Revenues: The Exchange channel continued to be the largest channel for
Ebix accounting for 77% of the Company's 2011 Revenues as compared to 71% in
2010.
--------------------------------------------------------------------------------
-
(dollar amount in Three Months Ended December Year Ended December 31,
thousands) 31,
Channel 2011 2010 % 2011 2010 %
Change Change
--------------------------------------------------------------------------------
Exchanges $ 34,330 $ 25,087 37% $ 130,638 $ 94,212 39%
BPO 3,996 4,012 -- 14,944 15,586 -4%
Broker Systems 4,609 4,167 11% 18,006 13,841 30%
Carrier Systems 1,115 1,831 -39% 5,381 8,549 -37%
-----------------------------------------------------------
Total Revenue $ 44,050 $ 35,097 26% $ 168,969 $ 132,188 28%
===========================================================
Share Repurchases: During Q4 2011, the Company repurchased 188,000 shares of
our common stock at an average price of $14.14 per share for an aggregate
amount of $2.7 million. As of date, the company has not repurchased any shares
since October 6, 2011. For 2011, Ebix repurchased 3.5 million shares for an
aggregate amount of $63.7 million or an average price of $18.13. The Board of
Directors has authorized a total repurchase limit of $100 million of which
$23.8 million still remains outstanding.
Net Income: Q4 2011 net income was $17.3 million, a 9% increase on a
year-over-year basis, as compared to Q4 2010 net income of $15.9 million. For
2011, GAAP Net Income increased 21% to $71.4 million compared to $59.0 million
in 2010.
Q1 2012 Diluted Share Count: As of today, the Company expects the diluted share
count for Q1 2012 to be approximately 39.4 million.
Ebix SVP & CFO Robert Kerris said, 'Virtually all of the Company's reported net
income of $71.4 million for the year 2011 has been realized in the $71.3 of
positive operating cash flow generated by our businesses. We are very pleased
with the Company's performance over the last three years from 2008 to 2011, as
our revenues have increased 126% and our operating cash flows have increased
166%. Ebix has been able to improve its operating margins while efficiently
integrating many business acquisitions during the last three years.'
Ebix Chairman, President & CEO Robin Raina said, 'On our year end 2010 call I
said that our vision in 2011 was to focus on 3 key areas - one, launch of new
exchanges and on-demand backend platforms in various geographies across the
world; two, launch of a mobile utility initiative with applications in diverse
insurance areas being deployed on a utilities basis; three, continued focus on
services like Ebix Enterprise targeted at providing a single on-demand platform
to a wide variety of insurance entities across all insurance product lines. In
the year 2011, we were able to make significant progress in all 3 areas in
addition to integrating our acquisitions of ADAM and HealthConnect.'
Robin continued, 'Ebix's financial goals remain consistent with our philosophy
to expand our reach and integration with our clients and generate shareholder
value. In 2011, we used our free cash flow to repurchase 9% of our outstanding
shares, and now have paid our second quarterly dividend while growing
organically and through business acquisitions. Our long term strategy has not
changed as we focus our team's efforts daily towards becoming the premier
global provider and leader in the fast growing business of Exchanges to
simplify the changing dynamic in all areas of insurance and financial services.
Our commitment to our shareholders is to continue to drive value through the
common sense use of our free cash flow by strategically investing in internal
growth initiatives, accretive business acquisitions and mergers, and stock
repurchases.'
Investor Conference Call
Ebix will host a conference call to discuss its fourth quarter and full fiscal
year 2011 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). Ebix has also earned ISO 9001:2000
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.
This Form 10-K and certain information incorporated herein by reference
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 Part I, Item IA, '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)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------------------------------
2011 2010 2011 2010
(Unaudited) (Unaudited) (Unaudited (Audited)
)
------------------------------------------------
Operating revenue $ 44,050 $ 35,097 $ 168,969 $ 132,188
Operating expenses:
Cost of services provided 8,658 7,691 33,589 29,599
Product development 4,823 3,379 19,208 13,607
Sales and marketing 4,089 1,613 13,642 6,372
General and administrative 8,028 7,151 26,268 24,065
Amortization and depreciation 1,897 1,605 7,514 6,038
------------------------------------------------
Total operating expenses 27,495 21,439 100,221 79,681
------------------------------------------------
Operating income 16,555 13,658 68,748 52,507
Interest income 128 141 557 519
Interest expense (167) (152) (759) (902)
Other non-operating income 1,432 641 647 6,319
Foreign currency exchange gain 1,667 352 4,302 1,211
------------------------------------------------
Income before income taxes 19,615 14,640 73,495 59,654
Income tax expense (benefit) (2,285) 1,304 (2,117) (635)
------------------------------------------------
Net income $ 17,330 $ 15,944 $ 71,378 $ 59,019
================================================
Basic earnings per common $ 0.48 $ 0.45 $ 1.89 $ 1.69
share*
Diluted earnings per common $ 0.44 $ 0.42 $ 1.75 $ 1.51
share*
Basic weighted average shares 36,337 35,083 37,742 34,845
outstanding*
Diluted weighted average shares 39,374 38,417 40,889 39,018
outstanding*
Ebix, Inc. and Subsidiaries
Consolidated Balance Sheets
December December
31, 2011 31, 2010
---------------------
(In thousands,
except share
amounts)
ASSETS
Current assets:
Cash and cash equivalents $ 23,696 $ 23,397
Short-term investments 1,505 6,300
Trade accounts receivable, less allowances of $1,719 and 31,133 26,028
$1,126, respectively
Deferred tax asset, net 2,981 --
Other current assets 4,502 5,057
---------------------
Total current assets 63,817 60,782
---------------------
Property and equipment, net 8,834 7,806
Goodwill 259,218 180,602
Intangibles, net 38,386 22,574
Indefinite-lived intangibles 30,453 30,552
Deferred tax asset, net 9,412 --
Other assets 1,062 984
---------------------
Total assets $ 411,182 $ 303,300
=====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 18,719 $ 15,344
Accrued payroll and related benefits 5,034 4,536
Short term debt 6,667 5,000
Current portion of convertible debt, net of discount of $0 -- 4,944
and $56, respectively
Current portion of long term debt and capital lease 165 426
obligation
Deferred revenue 16,460 8,610
Current deferred rent 266 --
Other current liabilities 2,468 225
---------------------
Total current liabilities 49,779 39,085
---------------------
Revolving line of credit 31,750 25,000
Other long term debt and capital lease obligation, less 8,468 205
current portion
Deferred tax liability, net -- 3,534
Put option liability -- 537
Deferred revenue 328 126
Long term deferred rent 939 554
Other liabilities 3,803 2,991
---------------------
Total liabilities 95,067 72,032
---------------------
Commitments and Contingencies, Note 7
Stockholders' equity:
Convertible Series D Preferred stock, $.10 par value, -- --
500,000 shares authorized, no shares issued and
outstanding at December 31, 2011 and 2010
Common stock*, $.10 par value, 60,000,000 shares 3,638 3,602
authorized, 36,418,385 issued and 36,377,876 outstanding
at December 31, 2011 and 36,057,791 issued and 36,017,282
outstanding at December 31, 2010
Additional paid-in capital 179,518 153,221
Treasury stock* (40,509 shares as of December 31, 2011 and (76) (76)
December 31, 2010 respectively)
Retained earnings 137,559 67,642
Accumulated other comprehensive income (loss) (4,524) 6,879
---------------------
Total stockholders' equity 316,115 231,268
=====================
Total liabilities and stockholders' equity $ 411,182 $ 303,300
=====================
Ebix, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Year Ended Year Year Ended
December Ended December
31, 2011 December 31, 2009
31, 2010
-----------------------------------
(In thousands)
Cash flows from operating activities:
Net income $ 71,378 $ 59,019 $ 38,822
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 7,514 6,038 3,955
Provision for doubtful accounts 976 1,143 321
Provision for deferred taxes (5,083) (1,752) (2,615)
Unrealized foreign exchange gain on forward 2,346 (1,304) (500)
contracts
Unrealized foreign exchange gain (5,795) (598) --
Unrealized gain on put option (537) (6,059) (89)
Share-based compensation 2,205 1,850 1,369
Debt discount amortization on convertible 21 327 --
debt
Reduction of acquisition earn-out contingent (2,847) (1,500) --
liability
Changes in current assets and liabilities,
net of acquisitions:
Accounts receivable (2,903) (3,018) (8,619)
Other assets 1,647 (955) (577)
Accounts payable and accrued expenses 1,525 (356) 1,127
Accrued payroll and related benefits (532) 165 587
Deferred rent (261) (125) 27
Other liabilities 836 (61) 109
Deferred revenue 796 (35) (40)
-----------------------------------
Net cash provided by operating activities 71,286 52,779 33,877
-----------------------------------
Cash flows from investing activities:
Investment in ADAM, net of cash acquired 3,529 -- --
Investment in MCN, net of cash acquired (381) (2,931) --
Investment in Trades Monitor, net of cash -- (2,749) --
acquired
Investment in Connective Technologies, net -- (1,337) --
of cash acquired
Investment in USIX, net of cash acquired -- (7,131) --
Investment in e-Trek, net of cash acquired -- (1,011) --
Investment in IDS, net of cash acquired -- -- (1,000)
Investment in Health Connect Solutions, net (17,945) -- --
of cash acquired
Investment in Periculum, net of cash -- (6) (200)
acquired
Investment in Acclamation, net of cash -- -- (85)
acquired
Investment in Confirmnet, net of cash (184) (2,975) (3,279)
acquired
Purchases of marketable securities (3,098) (11,507) (4,133)
Maturities of marketable securities 7,600 7,006 3,870
Investment in Facts, net of cash acquired (12) (11) (6,215)
Investment in Peak Performance, net of cash -- -- (7,894)
acquired
Investment in EZ Data, net of cash acquired -- -- (25,362)
Capital expenditures (2,829) (1,754) (3,129)
-----------------------------------
Net cash used in investing activities (13,320) (24,406) (47,427)
-----------------------------------
Cash flows from financing activities:
Proceeds from / (Repayment) to line of 6,750 1,900 (1,846)
credit, net
Proceeds from term loan 16,250 10,157 --
Proceeds from the issuance of convertible -- -- 25,000
debt
Principal payments on term loan obligation (6,407) (5,000) --
Repurchase of common stock (63,659) (10,650) (505)
Settlement on conversion of convertible debt (6,761) (22,521) --
Payments of long term debt -- -- (742)
Payments for capital lease obligations (300) (804) (293)
Proceeds from exercise of common stock 51 1,236 1,565
options
Dividends paid (1,461) -- --
-----------------------------------
Net cash provided (used) by financing (55,537) (25,682) 23,179
activities
-----------------------------------
Effect of foreign exchange rates on cash and (2,130) 1,479 123
cash equivalents
-----------------------------------
Net change in cash and cash equivalents 299 4,170 9,752
Cash and cash equivalents at the beginning 23,397 19,227 9,475
of the year
-----------------------------------
Cash and cash equivalents at the end of the $ 23,696 $ 23,397 $ 19,227
year
-----------------------------------
Supplemental disclosures of cash flow
information:
Interest paid $ 710 $ 526 $ 1,125
Income taxes paid 2,907 2,396 4,752
Steven Barlow
678-281-2043 or steve.barlow@ebix.com
or
Aaron Tikkoo
678-281-2027 or atikkoo@ebix.com
News Source: NASDAQ OMX
13.03.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Ebix, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US2787152063
WKN:
End of Announcement DGAP News-Service
---------------------------------------------------------------------------