Delaware | 0-15946 | 77-0021975 | ||
(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||
of incorporation) | Identification No.) |
1 Ebix Way Johns Creek, GA | 30097 | |
(Address of principal executive offices) | (Zip Code) |
EBIX, INC. | |||
By: | /s/ Robert Kerris | ||
Name: | Robert Kerris | ||
Title: | Executive Vice President and Chief Financial Officer (principal financial and accounting officer) | ||
(dollar amounts in thousands) | ||||||
Channel | Q4 2015 | Q4 2014 | Change | 2015 | 2014 | Change |
Exchanges | $ 51,034 | $ 44,225 | +15% | $ 190,746 | $ 169,437 | +13% |
Broker Systems | 3,414 | 4,086 | -16% | 14,481 | 17,948 | -19% |
Risk Compliance Solutions (RCS) | 14,699 | 11,390 | +29% | 55,917 | 21,813 | +156% |
Carrier Systems | 1,057 | 932 | +13% | 4,338 | 5,123 | -15% |
Total Revenue | $ 70,204 | $ 60,633 | +16% | $ 265,482 | $ 214,321 | +24% |
Total Revenue on Constant Currency Basis | $ 72.9M | $ 60.6M | +20% | $ 276.2M | $ 214.3M | +29% |
Call Date/Time: | Monday, February 29, 2016 at 11:00 a.m. EST |
Call Dial-In: | +1-877-837-3909 or 1-973-409-9690; Call ID #48661833 |
Live Audio Webcast: | www.ebix.com/webcast |
Audio Replay URL: | www.ebix.com/result_15_q4 after 2:00 p.m. EST on Feb 29th |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||||||
Operating revenue | $ | 70,204 | $ | 60,633 | $ | 265,482 | $ | 214,321 | |||||||
Operating expenses: | |||||||||||||||
Cost of services provided | 16,444 | 17,537 | 72,437 | 47,388 | |||||||||||
Product development | 8,029 | 6,630 | 30,702 | 26,860 | |||||||||||
Sales and marketing | 4,122 | 3,196 | 14,917 | 13,840 | |||||||||||
General and administrative (net) | 13,083 | 9,963 | 48,078 | 36,880 | |||||||||||
Amortization and depreciation | 2,702 | 2,239 | 10,634 | 9,681 | |||||||||||
Total operating expenses | 44,380 | 39,565 | 176,768 | 134,649 | |||||||||||
Operating income | 25,824 | 21,068 | 88,714 | 79,672 | |||||||||||
Interest income | 64 | 53 | 231 | 379 | |||||||||||
Interest expense | -1,909 | -2,184 | -4,311 | -3,034 | |||||||||||
Non-operating income - put options | 0 | 0 | 0 | 296 | |||||||||||
Non-operating expense - securities litigation | 0 | -340 | 0 | -690 | |||||||||||
Foreign currency exchange gain (loss) | -354 | 297 | 2,005 | 829 | |||||||||||
Income before income taxes | 23,625 | 18,894 | 86,639 | 77,452 | |||||||||||
Income tax expense | -1,696 | -2,347 | -7,106 | -13,894 | |||||||||||
Net income | $ | 21,929 | $ | 16,547 | $ | 79,533 | $ | 63,558 | |||||||
Basic earnings per common share | $ | 0.65 | $ | 0.45 | $ | 2.29 | $ | 1.68 | |||||||
Diluted earnings per common share | $ | 0.65 | $ | 0.45 | $ | 2.28 | $ | 1.67 | |||||||
Basic weighted average shares outstanding | 33,678 | 36,588 | 34,668 | 37,809 | |||||||||||
Diluted weighted average shares outstanding | 33,931 | 36,801 | 34,901 | 38,040 |
December 31, 2015 | December 31, 2014 | ||||||
(In thousands, except share and per share amounts) | |||||||
Unaudited | Audited | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 57,179 | $ | 52,300 | |||
Short-term investments | 1,538 | 281 | |||||
Trade accounts receivable, less allowances of $3,388 and $1,619, respectively | 47,171 | 41,100 | |||||
Other current assets | 10,942 | 8,067 | |||||
Total current assets | 116,830 | 101,748 | |||||
Property and equipment, net | 34,088 | 24,661 | |||||
Goodwill | 402,259 | 402,220 | |||||
Intangibles, net | 51,848 | 49,371 | |||||
Indefinite-lived intangibles | 30,887 | 30,887 | |||||
Capitalized software development costs, net | 3,489 | 0 | |||||
Deferred tax asset, net | 23,732 | 20,871 | |||||
Other assets | 12,856 | 4,553 | |||||
Total assets | $ | 675,989 | $ | 634,311 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 23,043 | $ | 40,121 | |||
Accrued payroll and related benefits | 4,932 | 5,280 | |||||
Contingent liability for accrued earn-out acquisition consideration | 1,706 | 887 | |||||
Current portion of long term debt and capital lease obligation, net of discount of $3 and $7, respectively | 606 | 936 | |||||
Deferred revenue | 20,519 | 22,192 | |||||
Current deferred rent | 232 | 268 | |||||
Other current liabilities | 228 | 102 | |||||
Total current liabilities | 51,266 | 69,786 | |||||
Revolving line of credit | 206,465 | 120,465 | |||||
Other long term debt and capital lease obligation, less current portion, net of discount of $0 and $7, respectively | 35 | 593 | |||||
Contingent liability for accrued earn-out acquisition consideration | 2,571 | 4,480 | |||||
Deferred revenue | 1,968 | 2,496 | |||||
Long term deferred rent | 1,381 | 2,091 | |||||
Other liabilities | 3,332 | 2,179 | |||||
Total liabilities | 267,018 | 202,090 | |||||
Stockholders’ equity: | |||||||
Convertible Series D Preferred stock, $.10 par value, 500,000 shares authorized, no shares issued and outstanding at December 31, 2015 and 2014 | 0 | 0 | |||||
Common stock, $.10 par value, 60,000,000 shares authorized, 33,416,110 issued and outstanding at December 31, 2015 and 36,232,074 issued and 36,191,565 outstanding at December 31, 2014 | 3,342 | 3,619 | |||||
Additional paid-in capital | 57,120 | 137,101 | |||||
Treasury stock (no shares as of December 31, 2015 and 40,509 shares December 31, 2014) | 0 | -76 | |||||
Retained earnings | 378,787 | 309,726 |
Accumulated other comprehensive loss | -30,278 | -18,149 | |||||
Total stockholders’ equity | 408,971 | 432,221 | |||||
Total liabilities, temporary equity and stockholders’ equity | $ | 675,989 | $ | 634,311 |
Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||
Unaudited | Audited | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 79,533 | $ | 63,558 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 10,634 | 9,681 | ||||||
Provision for doubtful accounts | 3,111 | 1,600 | ||||||
Provision for deferred taxes, net of acquisitions and effects of currency translation | -10,143 | -1,966 | ||||||
Unrealized foreign exchange gain | -1,743 | -741 | ||||||
Unrealized gain on put option | 0 | -296 | ||||||
Share-based compensation | 1,821 | 1,792 | ||||||
Debt discount amortization on convertible debt | 17 | 35 | ||||||
Reduction of acquisition earn-out contingent liability | -1,533 | -10,237 | ||||||
Changes in current assets and liabilities, net of acquisitions: | ||||||||
Accounts receivable | -7,320 | -1,530 | ||||||
Other assets | -3,834 | -4,765 | ||||||
Accounts payable and accrued expenses | -19,895 | 14,670 | ||||||
Accrued payroll and related benefits | -60 | 1,811 | ||||||
Deferred rent | -656 | -324 | ||||||
Reserve for potential uncertain income tax return positions | 95 | -9,723 | ||||||
Liability - securities litigation settlement | -690 | -3,528 | ||||||
Other liabilities | 1,111 | -221 | ||||||
Deferred revenue | -1,762 | -1,306 | ||||||
Net cash provided by operating activities | 48,686 | 58,510 | ||||||
Cash flows from investing activities: | ||||||||
Investment in Via Media Health, net of cash acquired | -1,000 | 0 | ||||||
Investment in P.B. Systems, net of cash acquired | -11,475 | 0 | ||||||
Investment in Ebix Health Solutions, LLC Joint Venture | -6,000 | 0 | ||||||
Investment in CurePet, net of cash acquired | 0 | 3 | ||||||
Investment in Healthcare Magic, net of cash acquired | 0 | -5,856 | ||||||
Investment in Vertex, net of cash acquired | 0 | -27,547 | ||||||
Investment in Oakstone, net of cash acquired | 0 | -23,791 | ||||||
Investment in I3, net of cash acquired | 0 | -2,000 | ||||||
Payment of acquisition earn-out contingency, Taimma | 0 | -2,250 | ||||||
Payment of acquisition earn-out contingency, Trisystems | 0 | -563 | ||||||
Purchases of marketable securities | -1,435 | 0 | ||||||
Maturities of marketable securities | 0 | 495 | ||||||
Capitalized software development costs | -3,489 | 0 | ||||||
Capital expenditures | -13,994 | -16,277 | ||||||
Net cash used in investing activities | -37,393 | -77,786 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from line of credit, net | 86,000 | 97,625 | ||||||
Principal payments on term loan obligation | -642 | -31,938 | ||||||
Repurchase of common stock | -81,653 | -31,854 |
Payments of long term debt | 0 | -345 | ||||||
Payments for capital lease obligations | -10 | -231 | ||||||
Excess tax benefit from share-based compensation | 463 | -3,200 | ||||||
Proceeds from exercise of common stock options | 2,209 | 788 | ||||||
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested | -2,202 | -41 | ||||||
Shares reacquired in connection with put option | 0 | -3,535 | ||||||
Dividends paid | -10,472 | -11,406 | ||||||
Net cash provided (used) by financing activities | -6,307 | 15,863 | ||||||
Effect of foreign exchange rates on cash and cash equivalents | $ | -107 | $ | -961 | ||||
Net change in cash and cash equivalents | 4,879 | -4,374 | ||||||
Cash and cash equivalents at the beginning of the year | $ | 52,300 | $ | 56,674 | ||||
Cash and cash equivalents at the end of the year | $ | 57,179 | $ | 52,300 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Interest paid | 5,379 | 1,290 | ||||||
Income taxes paid | 28,637 | 11,433 |
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end