Exhibit 99.1
EBIX ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR 2010 RESULTS
| • | Record Quarterly Revenue of $35.1 Million, up 12% Year-Over-Year |
||
| • | Record Full Year Revenue of $132.2 Million, up 35% Year-Over-Year |
||
| • | Q4 Diluted EPS of $0.42, up 35% Year-Over-Year |
||
| • | Full Fiscal Year Diluted EPS of $1.51, up 47% Year-Over-Year |
||
| • | Q4 Net Income of $15.9 Million, up 32% Year-Over-Year |
||
| • | Full Year Net Income of $59.0 Million, up 52% Year-Over-Year |
||
| • | Q4 Operating cash flow of $18.9 Million, up 61% Year-over-Year |
||
| • | Full Year Operating cash flow of $52.8 Million, up 56% Year-over-Year |
ATLANTA, GA — March 14, 2011 — 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, 2010.
“These results mark 11 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 2010.”
Ebix delivered the following results for the fourth quarter and full year of 2010:
Revenues: Total Q4 2010 revenue was $35.1 million, an increase of 12% on a year-over-year basis, as
compared to Q4 2009 revenue of $31.3 million.
For the full fiscal year of 2010, the company reported revenue of $132.2 million, an increase of
35% from the prior year revenues of $97.7 million.
Net Income: Q4 2010 net income was $15.9 million, an increase of 32% on a year-over-year basis, as
compared to Q4 2009 net income of $12.1 million.
For the full fiscal year of 2010, the Company reported net income of $59.0 million, an increase of
52% from the prior year net income of $38.8 million.
Earnings per Share: Q4 2010 diluted earnings per share rose 35% year-over-year to $0.42, as
compared to $0.31 in the fourth quarter of 2009. For purposes of the Q4 2010 EPS calculation,
there was an average of 38.4 million diluted shares outstanding during the quarter, as compared to
39.6 million diluted shares outstanding in Q4 of 2009.
For the full year of 2010, diluted earnings per share rose 47% year-over-year to $1.51. For
purposes of the EPS calculation, there was an average of approximately 39.0 million diluted shares
outstanding during the year 2010 as compared to an average of 38.0 million diluted shares
outstanding in 2009.
Operating Cash: Cash generated from operations for the fiscal fourth quarter was $18.9 million, up
61% from the fourth quarter of 2009. For the full year, operating cash flow totaled $52.8 million,
up 56% year-over-year.
The $52.8 million of cash inflow from the Company’s operating activities represents a 100%
realization of the 2010 operating income of $52.5 million.
Margins: Operating margins for 2010 were at 40% consistent with the Company’s operating
margins for 2009.
Customers: An estimated 99.5% plus of Ebix’s clients from 2009 renewed their business with Ebix in
the year 2009, meaning that Ebix did not lose a single customer across the world that accounted for
more than 0.5% of Ebix’s revenues in the year 2010.
Diversified Revenue Base: Ebix continued to have highly diversified revenue streams across
thousands of clients, with the largest client accounting for only 4% of the Company’s 2010
revenues.
Channel Revenues: The Exchange channel grew 55% year over year to $94.2 million or 71% of the 2010
revenues. The BPO channel grew 6% year over year, to $15.6 million or 12% of the 2010 revenues. The
Broker Channel grew 19% year over year, to $13.8 million or 10% of the 2010 revenues. The Carrier
channel dropped 20% year over year, to $8.5 million or 7% of the 2010 revenues.
Tax Adjustments: The Q4 and full year results include a net non-recurring tax benefit of $2.3
million from the reversal of valuation allowance that had been held against a portion of our
cumulative legacy net operating loss (“NOL”) carryforwards in the United States
Ebix Chairman, President & CEO Robin Raina said, “In the year 2010, Ebix emerged as the largest
insurance exchange player worldwide. We intend to launch many new exchange related services in 2011
and beyond. Our ability to deliver end-to-end exchange services while providing enterprise backend
solutions in an on-demand manner continues to differentiate us from all our competitors worldwide.
In addition, our focus on delivering solutions across the globe with the same code base, while
deploying these solutions in multiple languages and currencies continues to hold immense value for
our multinational insurance clients.”
Robin added, “In the year 2011, our vision is to focus on three key areas — one, the launch of new
exchanges and on-demand backend platforms in various geographies across the world; two, the launch
of a mobile utility initiative with applications in diverse insurance areas being deployed on a
utilities basis; three, the 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.”
Ebix SVP and Chief Financial Officer, Robert Kerris said, “We are very pleased with the
improvements realized during 2010 particularly regarding our operating cash flows and the overall
health of our balance sheet. Our recurring operating activities during 2010 produced $19.0 million
of additional cash flows above the levels realized in 2009. We closed the year with $23.4 million
of cash on hand, an increase of $4.2 million or 22% from a year earlier, in spite of investing
$15.2 million for business acquisitions, remitting $22.5 million to settle outstanding convertible
debt, and paying $10.5 million to repurchase shares of our common stock. During 2010 our current
ratio significantly improved and was 1.56 at December 31st as compared to 0.62 a year
earlier, and we eliminated all but $5.0 million of the previous $29.4 million of convertible debt.”
Mr. Kerris added, “On March 8, 2011 Ebix and Bank of America jointly executed a mutually binding
commitment letter to amend and expand the Company’s existing credit facility. The amended credit
facility has been expanded to $55 million. It replaces the former $35 million facility, carries an
interest rate of LIBOR plus 1.50% and is comprised of a three-year $35 million secured revolving
credit facility and a $20 million secured term loan.”
Investor Conference Call
Ebix will host a conference call to discuss its fourth quarter and full fiscal year 2010 results at
11:00 a.m. Eastern Standard 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
CONTACT:
Aaron Tikkoo, IR
678 -281-2027 or atikkoo@ebix.com
Aaron Tikkoo, IR
678 -281-2027 or atikkoo@ebix.com
Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Condensed Consolidated Statements of Income
(In thousands, except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
Operating revenue |
$ | 35,097 | $ | 31,304 | $ | 132,188 | $ | 97,685 | ||||||||
Operating expenses: |
||||||||||||||||
Cost of services provided |
7,691 | 7,976 | 29,599 | 21,274 | ||||||||||||
Product development |
3,379 | 3,104 | 13,607 | 11,362 | ||||||||||||
Sales and marketing |
1,613 | 1,487 | 6,372 | 5,040 | ||||||||||||
General and administrative |
7,151 | 5,442 | 24,065 | 16,798 | ||||||||||||
Amortization and depreciation |
1,605 | 1,439 | 6,038 | 3,955 | ||||||||||||
Total operating expenses |
21,439 | 19,448 | 79,681 | 58,429 | ||||||||||||
Operating income |
13,658 | 11,856 | 52,507 | 39,256 | ||||||||||||
Interest income |
141 | 52 | 519 | 199 | ||||||||||||
Interest expense |
(152 | ) | (279 | ) | (902 | ) | (1,070 | ) | ||||||||
Other non-operating income |
641 | 89 | 6,319 | 89 | ||||||||||||
Foreign currency exchange gain |
352 | 464 | 1,211 | 1,358 | ||||||||||||
Income before income taxes |
14,640 | 12,182 | 59,654 | 39,832 | ||||||||||||
Income tax expense (benefit) |
1,304 | (85 | ) | (635 | ) | (1,010 | ) | |||||||||
Net income |
$ | 15,944 | $ | 12,097 | $ | 59,019 | $ | 38,822 | ||||||||
Basic earnings per common share* |
$ | 0.45 | $ | 0.36 | $ | 1.69 | $ | 1.24 | ||||||||
Diluted earnings per common share* |
$ | 0.42 | $ | 0.31 | $ | 1.51 | $ | 1.03 | ||||||||
Basic weighted average shares
outstanding* |
35,083 | 33,990 | 34,845 | 31,398 | ||||||||||||
Diluted weighted average shares
outstanding* |
38,417 | 39,594 | 39,018 | 38,014 | ||||||||||||
| * | Adjusted for all periods presented to reflect the effect of the 3-for-1 stock split dated
January 4, 2010 |
Ebix, Inc. and Subsidiaries
Consolidated Balance Sheet
Consolidated Balance Sheet
| December 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| (In thousands, | ||||||||
| except share amounts) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 23,397 | $ | 19,227 | ||||
Short-term investments |
6,300 | 1,799 | ||||||
Trade accounts receivable, less allowances of $1,126 and $565, respectively |
26,028 | 22,861 | ||||||
Other current assets |
5,057 | 2,628 | ||||||
Total current assets |
60,782 | 46,515 | ||||||
Property and equipment, net |
7,806 | 7,865 | ||||||
Goodwill |
180,602 | 157,245 | ||||||
Intangibles, net |
22,574 | 20,505 | ||||||
Indefinite-lived intangibles |
30,552 | 29,223 | ||||||
Other assets |
984 | 814 | ||||||
Total assets |
$ | 303,300 | $ | 262,167 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | 15,344 | $ | 11,060 | ||||
Accrued payroll and related benefits |
4,536 | 3,634 | ||||||
Short term debt |
5,000 | 23,100 | ||||||
Current portion of convertible debt, net of discount of $56 and $706,
respectively |
4,944 | 28,681 | ||||||
Current portion of long term debt and capital lease obligation |
426 | 596 | ||||||
Deferred revenue |
8,610 | 7,754 | ||||||
Other current liabilities |
225 | 272 | ||||||
Total current liabilities |
39,085 | 75,097 | ||||||
Revolving line of credit |
25,000 | — | ||||||
Other long term debt and capital lease obligation, less current portion |
205 | 671 | ||||||
Other liabilities |
2,991 | 2,965 | ||||||
Deferred tax liability, net |
3,534 | 5,147 | ||||||
Put option liability |
537 | 6,596 | ||||||
Deferred revenue |
126 | 269 | ||||||
Deferred rent |
554 | 679 | ||||||
Total liabilities |
72,032 | 91,424 | ||||||
Stockholders’ equity: |
||||||||
Convertible Series D Preferred stock, $.10 par value, 500,000 shares
authorized, no shares issued and outstanding at December 31, 2010 and 2009. |
— | — | ||||||
Common stock*, $.10 par value, 60,000,000 shares authorized, 36,057,791
issued and 36,017,282 outstanding at December 31, 2010 and 34,474,608
issued and 34,434,099 outstanding at December 31, 2009 |
3,602 | 3,443 | ||||||
Additional paid-in capital |
153,221 | 158,404 | ||||||
Treasury stock* (179,235 shares as of December 31, 2010 and December 31,
2009 respectively) |
(76 | ) | (76 | ) | ||||
Retained earnings (accumulated deficit) |
67,642 | 8,623 | ||||||
Accumulated other comprehensive income (loss) |
6,879 | 349 | ||||||
Total stockholders’ equity |
231,268 | 170,743 | ||||||
Total liabilities and stockholders’ equity |
$ | 303,300 | $ | 262,167 | ||||
| * | Adjusted for all periods presented to reflect the effect of the 3-for-1 stock split dated
January 4, 2010 |
Ebix, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
| Year Ended | Year Ended | Year Ended | ||||||||||
| December 31, | December 31, | December 31, | ||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| (In thousands) | ||||||||||||
Cash flows from operating activities: |
||||||||||||
Net income |
$ | 59,019 | $ | 38,822 | $ | 27,314 | ||||||
Adjustments to reconcile net income to cash provided by (used
in) operating activities: |
||||||||||||
Depreciation and amortization |
6,038 | 3,955 | 3,306 | |||||||||
Provision for doubtful accounts |
1,143 | 321 | 298 | |||||||||
Provision for deferred taxes |
(1,752 | ) | (2,615 | ) | (1,846 | ) | ||||||
Unrealized foreign exchange gain on forward contracts |
(1,304 | ) | (500 | ) | — | |||||||
Unrealized foreign exchange gain |
(598 | ) | — | — | ||||||||
Unrealized gain on put option |
(6,059 | ) | (89 | ) | — | |||||||
Share-based compensation |
1,850 | 1,369 | 698 | |||||||||
Debt discount amortization on convertible debt |
327 | — | — | |||||||||
Reduction of acquisition earnout |
1,500 | — | — | |||||||||
Changes in current assets and liabilities, net of acquisitions: |
||||||||||||
Accounts receivable |
(3,018 | ) | (8,619 | ) | (163 | ) | ||||||
Other assets |
(955 | ) | (577 | ) | 737 | |||||||
Accounts payable and accrued expenses |
(3,356 | ) | 1,127 | (1,284 | ) | |||||||
Accrued payroll and related benefits |
165 | 587 | 84 | |||||||||
Deferred rent |
(125 | ) | 27 | (109 | ) | |||||||
Other liabilities |
(61 | ) | 109 | 60 | ||||||||
Deferred revenue |
(35 | ) | (40 | ) | (2,270 | ) | ||||||
Net cash provided by operating activities |
52,779 | 33,877 | 26,825 | |||||||||
Cash flows from investing activities: |
||||||||||||
Investment in Infinity, net of cash acquired |
— | — | (500 | ) | ||||||||
Investment in MCN, net of cash acquired |
(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 Telstra, net of cash acquired |
— | — | (42,942 | ) | ||||||||
Investment in Periculum, net of cash acquired |
(6 | ) | (200 | ) | (1,067 | ) | ||||||
Investment in Acclamation, net of cash acquired |
— | (85 | ) | (21,388 | ) | |||||||
Investment in Confirmnet, net of cash acquired |
(2,975 | ) | (3,279 | ) | (7,294 | ) | ||||||
(Purchases)/maturities of marketable securities, net |
(4,501 | ) | (263 | ) | (507 | ) | ||||||
Investment in Facts, net of cash acquired |
(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 |
(1,754 | ) | (3,129 | ) | (615 | ) | ||||||
Net cash used in investing activities |
(24,406 | ) | (47,427 | ) | (74,313 | ) | ||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from the issuance of common stock, net of issuance costs |
— | — | 12,519 | |||||||||
Proceeds from / Repayment to line of credit, net |
1,900 | (1,846 | ) | 9,295 | ||||||||
Proceeds from term loan |
10,157 | — | — | |||||||||
Proceeds from the issuance of convertible debt |
— | 25,000 | 15,000 | |||||||||
Principal payments on term loan obligation |
(5,000 | ) | — | — | ||||||||
Payments to acquire treasury stock |
— | — | (1,029 | ) | ||||||||
Repurchase of common stock |
(10,650 | ) | (505 | ) | (24,246 | ) | ||||||
Settlement on conversion of convertible debt |
(22,521 | ) | — | — | ||||||||
Payments of long term debt |
— | (742 | ) | (500 | ) | |||||||
Payments for capital lease obligations |
(804 | ) | (293 | ) | (3 | ) | ||||||
Proceeds from exercise of common stock options |
1,236 | 1,565 | 1,239 | |||||||||
Net cash provided by financing activities |
(25,682 | ) | 23,179 | 12,275 | ||||||||
Effect of foreign exchange rates on cash and cash equivalents |
1,479 | 123 | (3,749 | ) | ||||||||
Net change in cash and cash equivalents |
4,170 | 9,752 | (38,962 | ) | ||||||||
Cash and cash equivalents at the beginning of the year |
19,227 | 9,475 | 48,437 | |||||||||
Cash and cash equivalents at the end of the year |
$ | 23,397 | $ | 19,227 | $ | 9,475 | ||||||