Delaware | 0-15946 | 77-0021975 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
5 Concourse Parkway, Suite 3200, Atlanta, Georgia | 30328 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 8.01 | Other Events. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibits | |||||
99.1 | Press release, dated March 13, 2012, issued by Ebix, Inc. |
EBIX, INC. | ||||
By: | /s/ Robert Kerris | |||
Robert Kerris | ||||
Chief Financial Officer and Corporate Secretary |
• | 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 |
(dollar amount in thousands) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
Channel | 2011 | 2010 | % Change | 2011 | 2010 | % 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% |
Three Months Ended December 31, | Twelve Months Ended 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 share* | $0.48 | $0.45 | $1.89 | $1.69 |
Diluted earnings per common share* | $0.44 | $0.42 | $1.75 | $1.51 |
Basic weighted average shares outstanding* | 36,337 | 35,083 | 37,742 | 34,845 |
Diluted weighted average shares outstanding* | 39,374 | 38,417 | 40,889 | 39,018 |
December 31, 2011 | December 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 $1,126, respectively | 31,133 | 26,028 | |||||
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 and $56, respectively | — | 4,944 | |||||
Current portion of long term debt and capital lease obligation | 165 | 426 | |||||
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 current portion | 8,468 | 205 | |||||
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 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 | 3,638 | 3,602 | |||||
Additional paid-in capital | 179,518 | 153,221 | |||||
Treasury stock* (40,509 shares as of December 31, 2011 and December 31, 2010 respectively) | (76 | ) | (76 | ) | |||
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 |
Year Ended December 31, 2011 | Year Ended December 31, 2010 | Year Ended December 31, 2009 | ||||||||||
(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 contracts | 2,346 | (1,304 | ) | (500 | ) | |||||||
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 debt | 21 | 327 | — | |||||||||
Reduction of acquisition earn-out contingent liability | (2,847 | ) | (1,500 | ) | — | |||||||
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 acquired | — | (2,749 | ) | — | ||||||||
Investment in Connective Technologies, net of cash acquired | — | (1,337 | ) | — | ||||||||
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 of cash acquired | (17,945 | ) | — | — | ||||||||
Investment in Periculum, net of cash acquired | — | (6 | ) | (200 | ) | |||||||
Investment in Acclamation, net of cash acquired | — | — | (85 | ) | ||||||||
Investment in Confirmnet, net of cash acquired | (184 | ) | (2,975 | ) | (3,279 | ) | ||||||
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 acquired | — | — | (7,894 | ) | ||||||||
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 credit, net | 6,750 | 1,900 | (1,846 | ) |
Proceeds from term loan | 16,250 | 10,157 | — | |||||||||
Proceeds from the issuance of convertible debt | — | — | 25,000 | |||||||||
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 options | 51 | 1,236 | 1,565 | |||||||||
Dividends paid | (1,461 | ) | — | — | ||||||||
Net cash provided (used) by financing activities | (55,537 | ) | (25,682 | ) | 23,179 | |||||||
Effect of foreign exchange rates on cash and cash equivalents | (2,130 | ) | 1,479 | 123 | ||||||||
Net change in cash and cash equivalents | 299 | 4,170 | 9,752 | |||||||||
Cash and cash equivalents at the beginning of the year | 23,397 | 19,227 | 9,475 | |||||||||
Cash and cash equivalents at the end of the year | $ | 23,696 | $ | 23,397 | $ | 19,227 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest paid | $ | 710 | $ | 526 | $ | 1,125 | ||||||
Income taxes paid | 2,907 | 2,396 | 4,752 |
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