ATLANTA, May 8, 2012 (GLOBE NEWSWIRE) -- Ebix, Inc. (Nasdaq:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today reported results for the fiscal first quarter ended March 31, 2012. Ebix will host a conference call at 11:00 a.m. EDT (details below)
Ebix delivered the following results for the first quarter of 2012:
Revenues: Total Q1 2012 revenue was $43.8 million, an increase of 9% on a year-over-year basis, as compared to Q1 2011 revenue of $40.1 million.
Earnings per Share: Q1 2012 GAAP diluted earnings per share rose 8% year-over-year to $0.40, as compared to $0.37 in the first quarter of 2011. For purposes of the Q1 2012 EPS calculation, there was an average of 39.5 million diluted shares outstanding during the quarter, as compared to 41.5 million diluted shares outstanding in Q1 of 2011.
Operating Cash: Cash generated from operations for the fiscal first quarter was $13.8 million, up 33% year-over-year.
Margins: In Q1 2012 the Company reported operating margins of 42% compared to 39% in Q1 of 2011.
Channel Revenues: The Exchange channel continued to be the largest channel for Ebix accounting for 79% of the Company's 1Q 2102 Revenue as compared to 78% in Q1 2011.
|(dollar amount in thousands)||Three Months Ended March 31,|
Net Income: Q1 2012 net income was $15.7 million, a 3% increase on a year-over-year basis, as compared to Q1 2011 net income of $15.2 million.
"In the last 12 months, Ebix has made a lot of investments in sales, marketing and developing new channels of business. These investments are targeted at creating infrastructure that can deliver large increases in revenue while retaining our high operating margins. While we remain focused as always on recurring revenue streams, what has changed is that we are now targeting much larger size deals." Ebix Chairman, President & CEO Robin Raina said, "We are pleased that in spite of these investments, we are able to continue reporting operating margins in the 40% range in Q1 of 2012."
Robin added, "The Company's sales efforts today have resulted in the Company having sales partnerships with major companies such as Unisys, Microsoft, CGI, Accenture etc. in addition to creating a strong direct sales group that is focused on selling enterprise services to the insurance industry. We feel good about the opportunities that we are pursuing and believe that the best for Ebix is still to come."
Robin continued, "We are also getting more ambitious in our marketing efforts as reflected in yesterday's announcement appointing tennis star John Isner as the Ebix ambassador."
"Ebix recently entered into a new $100 million secured syndicated credit facility with Citibank as administrative agent, and Citibank, Wells Fargo, and RBS as joint lenders. We are also pleased with the faith shown in Ebix and the strong fundamentals of our business, by these three leading banks. Finally our acquisition pipeline is strong today and you can expect Ebix to make a few accretive acquisitions soon," Robin concluded.
Ebix SVP & CFO Robert Kerris said, "The Company's aggregate cash, cash equivalents, and short term cash deposit investments as of March 31, 2012 stood at $37.9 million, a significant increase since year-end 2011 due to the continued strong cash flow generated by the Company's operating activities. With our combined aggregated cash reserves and the available financing capacity of our new syndicated bank line, the Company presently has access to approximately $84 million of readily available cash resources to continue to make investments to grow our business both organically and through accretive acquisitions."
Robert added, "The Company's balance sheet metrics continued to improve in Q1 of 2012, with working capital increasing to $26.4 million at March 31st from $14.0 million at December 31st 2011, and accounts receivable DSO at 60 days as of March 31st 2012, an improvement of 18 days from a year earlier at March 31st 2011."
Investor Conference Call
Ebix will host a conference call to discuss its first quarter 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). 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
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 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.
|Ebix, Inc. and Subsidiaries|
|Condensed Consolidated Statements of Income|
|(In thousands, except per share data)|
|Three Months Ended|
|Cost of services provided||9,029||7,307|
|Sales and marketing||3,812||2,852|
|General and administrative||6,444||7,761|
|Amortization and depreciation||1,941||1,877|
|Total operating expenses||25,498||24,416|
|Other non-operating income (loss)||—||(354)|
|Foreign currency exchange gain (loss)||(296)||1,468|
|Income before income taxes||17,947||16,733|
|Income tax expense||(2,262)||(1,569)|
|Basic earnings per common share||$0.43||$0.40|
|Diluted earnings per common share||$0.40||$0.37|
|Basic weighted average shares outstanding||36,450||38,151|
|Diluted weighted average shares outstanding||39,523||41,517|
|Ebix, Inc. and Subsidiaries|
|Condensed Consolidated Balance Sheets|
|(In thousands, except share amounts)|
|March 31, |
|December 31, |
|Cash and cash equivalents||$37,140||$23,696|
|Trade accounts receivable, less allowances of $1,221 and $1,719, respectively||29,351||31,133|
|Deferred tax asset, net||2,817||2,981|
|Other current assets||4,747||4,502|
|Total current assets||74,785||63,817|
|Property and equipment, net||9,399||8,834|
|Deferred tax asset, net||10,970||9,412|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued liabilities||$19,075||$18,719|
|Accrued payroll and related benefits||3,518||5,034|
|Short term debt||8,333||6,667|
|Current portion of long term debt and capital lease obligations, net of discount of $64 and $0, respectively||852||165|
|Current deferred rent||279||266|
|Other current liabilities||119||2,468|
|Total current liabilities||48,387||49,779|
|Revolving line of credit||31,750||31,750|
|Long term debt and capital lease obligations, less current portion, net of discount of $128 and $0, respectively||9,367||8,468|
|Long term deferred rent||864||939|
|Commitments and Contingencies, Note 6|
|Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at March 31, 2012 and December 31, 2011||—||—|
|Common stock, $0.10 par value, 60,000,000 shares authorized, 36,495,652 issued and 36,455,143 outstanding at March 31, 2012 and 36,418,385 issued and 36,377,876 outstanding at December 31, 2011||3,646||3,638|
|Additional paid-in capital||180,099||179,518|
|Treasury stock (40,509 shares as of March 31, 2012 and December 31, 2011)||(76)||(76)|
|Accumulated other comprehensive income||(197)||(4,524)|
|Total stockholders' equity||335,252||316,115|
|Total liabilities and stockholders' equity||$429,464||$411,182|
|Ebix, Inc. and Subsidiaries|
|Condensed Consolidated Statements of Cash Flows|
|Three Months Ended|
|Cash flows from operating activities:|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation and amortization||1,941||1,877|
|Share based compensation||548||556|
|Provision for doubtful accounts||266||11|
|Benefit (provision) for deferred taxes||(1,401)||2,198|
|Debt discount amortization on convertible debt||—||21|
|Unrealized foreign exchange (gain) loss on forward contracts||—||(152)|
|Unrealized foreign exchange (gain) loss||661||(1,890)|
|(Gain) loss on put option||—||354|
|Changes in assets and liabilities, net of effects from acquisitions:|
|Accounts payable and accrued expenses||(861)||(2,357)|
|Accrued payroll and related benefits||(1,575)||(1,463)|
|Other current liabilities||(2,336)||69|
|Net cash provided by operating activities||13,762||10,313|
|Cash flows from investing activities:|
|Acquisition of ADAM, net of cash acquired||—||3,529|
|Maturities of marketable securities||979||7,960|
|Purchases of marketable securities||—||(5,384)|
|Net cash provided by investing activities||306||5,581|
|Cash flows from financing activities:|
|Principal payments of term loan obligation||—||(1,250)|
|Repurchases of common stock||—||(2,395)|
|Proceeds from the exercise of stock options||14||1|
|Payments of capital lease obligations||(45)||(102)|
|Net cash used in financing activities||(1,495)||(3,903)|
|Effect of foreign exchange rates on cash||871||201|
|Net change in cash and cash equivalents||13,444||12,192|
|Cash and cash equivalents at the beginning of the period||23,696||23,397|
|Cash and cash equivalents at the end of the period||$37,140||$35,589|
|Supplemental disclosures of cash flow information:|
|Income taxes paid||$3,030||$558|
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