EX-99.1 2 a07-21230_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

 

Conference call:

Tuesday, August 7, 2007 at 11:00 A.M. EDT

Webcast / Replay URL:

http://www.ebix.com, Click on Investor Home Page

Dial-in numbers:

1-888-687-3295 Dial pass code 12403130

 

 

EBIX ANNOUNCES RECORD RESULTS WITH 75 CENTS DILUTED EPS

Revenue Rises Forty Percent to $9.8 Million in Q2 of 2007

ATLANTA, GA — August 6, 2007 — Ebix, Inc. (NASDAQ: EBIX), a leading international developer and supplier of software and e-commerce solutions to the insurance industry, today reported record financial results for the second quarter of 2007. The results marked the highest EPS in any one quarter that the company has reported in its thirty one year history.

The company reported total revenue of $9.82 million for the second quarter of 2007, compared to $7.03 million for the second quarter of 2006, marking a forty percent increase in revenues.

Net income after taxes for the quarter rose sixty eight percent to $2.51 million, or $0.75 per diluted share, up from $1.50 million, or $0.48 per diluted share, in the second quarter of 2006 — an earnings per share growth of fifty six percent. Results for the second quarter of 2007 were based on 3.37 million weighted average diluted shares outstanding, as compared to 3.14 million in the second quarter of 2006. The company also reported basic earnings per share in the second quarter of 2007 of $0.85 as compared to $0.54 in the second quarter of 2006.

The company’s operating expenses for the quarter grew by thirty six percent to $7.51 million as compared to $5.52 million for the second quarter of 2006. The company attributed the increase primarily to the acquisition of Finetre in October 2006 as also partly to the acquisition of Infinity consulting in May 2006.

The company also reported that its cumulative net income at the end of six months of 2007 grew by 70 percent to $ 4.48 million as compared to cumulative net income of



$ 2.63 million at the end of six months of 2006. The six month cumulative diluted EPS for 2007 also grew by sixty two percent to $1.36 as compared to cumulative diluted EPS of $0.84 at the end of six months of 2006.

Robin Raina, president and CEO, Ebix said, “We are pleased that the second quarter results are in line with our expectations. We are especially pleased that net margins in the quarter grew to 26%. At the same time, we see these results simply as another positive step in the right direction rather than the destination by itself.”

Robin added: “In June, the company paid LaSalle bank $10 million to become a zero debt company. With $11.7 million of cash in the bank as of 30th June 2007 and an unused credit line from LaSalle worth $14 million, the company is presently well poised financially.”

Robin summarized, “We are focused on growing the company’s top line organically as also through sensible acquisitions. The challenge for us is to do so while ensuring that the net margins also go up in the process.”

About Ebix

A CMMI 5 Company, Ebix, Inc. is a leading international supplier of software and e-commerce solutions to the insurance industry.  Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries.

Ebix strives to work collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges. Ebix combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of organizations.

With bases in Singapore, Australia, the US, New Zealand, India and Canada, Ebix employs insurance and technology professionals who provide products, support and consultancy to more than 3,000 customers on six continents.  Ebix’s focus on quality has enabled its development unit in India to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model Integrated (CMMI). Ebix has also earned ISO 9001:2000 certification for both its development and call center units in India.  For more information, visit the Company’s Web site at www.ebix.com.



Safe Harbor for Forward Looking Statements under the Private Securities Litigation Reform Act of 1995 — This press release contains various forward looking statements and information that are based on management’s beliefs, as well as 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.  The Company has tried to identify such forward looking statements by use of words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “will,” “should,” and similar expressions, but these words are not the exclusive means of identifying such statements.  Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those expressed in, or implied by, the forward looking statements. Such risks, uncertainties and other factors include the extent to which the Company’s new products and services can be successfully developed and marketed, the integration and other risks associated with recent and future acquisitions, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties, the Company’s ability to continue to develop new products to effectively address market needs in an industry characterized by rapid technological change, the Company’s dependence on the insurance industry (and in particular independent agents), the highly competitive and rapidly changing automation systems market, the Company’s ability to effectively protect its applications software and other proprietary information, the Company’s ability to attract and retain quality management, and software, technical sales and other personnel, the potential negative impact on the Company’s outsourcing business in India from adverse publicity and possible governmental regulation, the risks of disruption of the Company’s Internet connections or internal service problems, the possibly adverse effects of a substantial increase in volume of traffic on the Company’s website, mainframe and other servers, possible security breaches on the Company’s website and the possible effects of insurance regulation on the Company’s business. Certain of these, as well as other, risks, uncertainties and other factors, are described in more detail in Ebix’s periodic filings with the Securities and Exchange Commission, including the company’s annual report on form 10-K for the year ended December 31, 2006, included under “Item 1. Business — Risk Factors.”  Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors or to publicly update any of the forward looking statements contained herein to reflect future events or developments or changed circumstances or for any other reason.

#  #  #

(Financial tables follow)

 



Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except for share and per share amounts)

 

 

June 30,
2007

 

December 31,
2006

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

11,700

 

$

5,013

 

Accounts receivable, less allowance of $58 and $36, respectively

 

9,680

 

7,973

 

Other current assets

 

1,185

 

913

 

Total current assets

 

22,565

 

13,899

 

Property and equipment, net

 

2,169

 

2,183

 

Goodwill

 

23,752

 

23,118

 

Intangible assets, net

 

6,994

 

7,867

 

Other assets

 

260

 

285

 

Total assets

 

$

55,740

 

$

47,352

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Line of credit

 

$

0

 

$

10,000

 

Accounts payable and accrued expenses

 

1,512

 

1,854

 

Accrued payroll and related benefits

 

950

 

1,549

 

Current portion of long term debt

 

1,061

 

1,006

 

Current portion of capital lease obligations

 

3

 

3

 

Current deferred rent

 

44

 

44

 

Deposits

 

98

 

—

 

Deferred revenue

 

6,318

 

5,552

 

Total current liabilities

 

9,986

 

20,008

 

Long term debt, less current portion

 

456

 

934

 

Long term capital lease obligation, less current portion

 

7

 

9

 

Long term deferred rent

 

230

 

235

 

Other Liabilities

 

—

 

—

 

Stockholders’ equity:

 

 

 

 

 

Convertible Series D Preferred stock, $.10 par value, 500,000 shares authorized, no shares issued and outstanding

 

—

 

—

 

Common stock, $.10 par value, 10,000,000 shares authorized, 3,260,964 issued and 2,848,288 outstanding at June 30, 2007 and December 31, 2006

 

323

 

286

 

Additional paid-in capital

 

108,365

 

94,914

 

Treasury stock 8,890 shares repurchased as of June 30, 2007 and December 31, 2006

 

(149

)

(149

)

Accumulated deficit

 

(65,249

)

(69,724

)

Accumulated other comprehensive income

 

1,771

 

839

 

Total stockholders’ equity

 

45,061

 

26,166

 

Total liabilities and stockholders’ equity

 

$

55,740

 

$

47,352

 

 

 



Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

Services and other (Including revenues from related parties of $406, $702, $984 and $1,415, respectively)

 

$

9,489

 

$

6,601

 

$

18,191

 

$

11,754

 

Software

 

327

 

428

 

643

 

925

 

Total revenue

 

9,816

 

7,029

 

18,834

 

12,679

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Services and other costs

 

1,718

 

1,359

 

3,284

 

2,690

 

Product development

 

2,198

 

1,099

 

4,048

 

1,968

 

Sales and marketing

 

1,078

 

650

 

2,030

 

1,240

 

General and administrative

 

1,899

 

1,997

 

3,686

 

3,361

 

Amortization and depreciation

 

625

 

417

 

1,250

 

731

 

Total operating expenses

 

7,518

 

5,522

 

14,298

 

9,990

 

Operating income

 

2,298

 

1,507

 

4,536

 

2,689

 

Interest income

 

136

 

59

 

207

 

138

 

Interest expense

 

(142

)

(55

)

(370

)

(87

)

Foreign exchange gain

 

122

 

46

 

127

 

88

 

Income before income taxes

 

2,414

 

1,557

 

4,500

 

2,828

 

Income tax expense

 

99

 

(59

)

(25

)

(195

)

Net income

 

$

2,513

 

$

1,498

 

$

4,475

 

$

2,633

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.85

 

$

0.54

 

$

1.54

 

$

0.96

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

0.75

 

$

0.48

 

$

1.36

 

$

0.84

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

2,973

 

2,759

 

2,911

 

2,754

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

3,366

 

3,136

 

3,291

 

3,136

 

 



Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 

 

Six Months Ended June 30,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

4,475

 

$

2,633

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

1,250

 

731

 

Stock-based compensation

 

114

 

43

 

Restricted stock compensation

 

58

 

90

 

Provision for doubtful accounts

 

30

 

8

 

Changes in assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(1,737

)

(1,577

)

Other assets

 

(247

)

(3

)

Accounts payable and accrued expenses

 

(342

)

(126

)

Accrued payroll and related benefits

 

(599

)

(270

)

Deferred revenue

 

766

 

35

 

Customer Deposits

 

98

 

—

 

Net cash provided by operating activities

 

3,866

 

1,564

 

Cash flows from investing activities:

 

 

 

 

 

Investment in Infinity

 

—

 

(3,001

)

Deferred Rent

 

(5

)

233

 

Capital expenditures

 

(315

)

(326

)

Net cash used in investing activities

 

(320

)

(3,094

)

Cash flows from financing activities:

 

 

 

 

 

Payments on line of credit

 

(10,000

)

 

 

Proceeds from the issuance of common stock, net issuance costs

 

13,275

 

 

 

Payments of long term debt

 

(478

)

 

 

Increase current portion of long term debt

 

55

 

 

 

Proceeds from the exercise of the stock options

 

37

 

123

 

Repurchase of common stock

 

—

 

(20

)

Capital leases

 

(2

)

14

 

Principal payments under debt obligations

 

—

 

(500

)

Net cash used in financing activities

 

2,887

 

(383

)

Effect of foreign exchange rates on cash

 

254

 

(388

)

Net change in cash and cash equivalents

 

6,687

 

(2,301

)

Cash and cash equivalents at the beginning of the period

 

5,013

 

6,733

 

Cash and cash equivalents at the end of the period

 

$

11,700

 

$

4,432

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

Interest paid

 

$

320

 

$

—

 

Income taxes paid

 

$

431

 

$

228

 

 

CONTACT:

Jesenia Jurado

Ebix, Inc.

678 -281-2036 or jjurado@ebix.com