JOHNS CREEK, Ga., Nov. 06, 2015 (GLOBE NEWSWIRE) -- Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, today reported results for the fiscal third quarter ended September 30, 2015 (Q3 2015). Ebix will host a conference call to review its results today at 11:00 a.m. EST (details below).

Ebix delivered the following results for the third quarter of 2015:

Revenues: Total Q3 2015 revenue was $66.8 million, an increase of 32% on a year-over-year basis, as compared to Q3 2014 revenue of $50.8 million and a 3.2% sequential increase over Q2 2015 revenue of $64.7 million.

On a constant currency basis, Ebix Q3 2015 revenue increased 38% year over year to $70.2 million as compared to $50.8 million in Q3 of 2014. Year to date revenue increased 32% on a constant currency basis to $203.3 million as compared to $153.7 million in 2014.

Ebix's insurance exchange channel remained the company's largest segment, accounting for 69% of Q3 2015 revenue and 72% of year-to-date revenue.
(dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30,
Channel   2015     2014     2015     2014  
Exchanges $ 46,209   $ 41,757   $ 139,712   $ 125,212  
Broker Systems   3,812     4,511     11,067     13,862  
Risk Compliance Solutions (RCS)   15,754     3,346     41,218     10,423  
Carrier Systems   1,038     1,194     3,281     4,191  
Total Revenue $ 66,813   $ 50,808   $ 195,278   $ 153,688  
 

The continued strengthening of the US dollar, year over year, as compared to the Australian dollar and the Brazilian real reduced Q3 2015 revenue by $3.4 million and year-to-date revenue by $8.0 million across the Exchange and Broker Systems Channels.

Earnings per Share:  Q3 2015 diluted earnings per share of $0.59 were up 24% as compared to $0.47 in the third quarter of 2014. For purposes of the Q3 2015 EPS calculation, there was an average of 34.5 million diluted shares outstanding during the quarter, as compared to 38.3 million diluted shares outstanding in Q3 2014.

Operating Cash: Cash generated from operations in Q3 2015 was $15.5 million up 58% as compared to $9.8 million in Q3 2014.

Operating Income and Margins: Operating margins for the quarter were strong at 33%. Consulting margins improved to 28% from 24% in Q2 of 2015. The remaining business's operating margins came out at 34%. Operating income for Q3 2015 was slightly up at 1% at $22.0 million as compared to $21.7 million of operating income in Q3 2014.

Net Income : Q3 2015 net income was $20.2 million, up 12% as compared to Q3 2014 net income of $18.0 million. During the nine months ended September 30, 2015, net income increased $10.6 million or 23%, to $57.6 million compared to $47.0 million during the same period in 2014.

Q4 2015 Diluted Share Count: As of today, the Company expects the diluted share count for Q4 2015 to be approximately 34.0 million.

Share Repurchases: Since June 30, 2015 and through September 30, 2015 the Company repurchased 1.17 million shares of its outstanding common stock for aggregate cash consideration in the amount of $33.3 million. Subsequent to September 30th and through November 5, 2015 the Company has repurchased an additional 20 thousand shares in the amount of $500 thousand.

Dividend: Ebix paid its regularly quarterly dividend of $0.075 per share in Q3 2015 for a total of $2.6 million.

Ebix Chairman, President and CEO Robin Raina said, "We are extremely pleased with the results. On a constant currency basis, our revenues for Q3 2015 would have been $70.2 million as compared to $50.8 million in Q3 of 2014. Our nine-month results for 2015 would have been $8 million higher on a constant currency basis as compared to the actual results in 2015. We have many large contracts in implementation now which are expected to have the effect of not only increasing our margins but also resulting in continued sequential growth of our top line."

Robin added, "With continued momentum on our side, the deals in hand, a strong pipeline of large contracts at various stages of negotiation, we expect 2016 to be the best year in history for Ebix. We are also exploring a number of acquisitions that are all expected to be accretive from the outset."

"We intend to continue returning cash to our shareholders through Dividends as also repurchasing our stock in the open markets." Robin said. "We believe that purchase of our stock is the most accretive use of our cash though we intend to balance it with acquisitions also to ensure that we continue to grow Ebix's expanse in emerging and niche markets where Ebix may not have a presence at present."

Robert Kerris, Ebix's EVP and CFO said "Ebix continues to deliver solid top line growth, improving operating margins and strong cash flow performance. As of November 5th, Ebix had $45 million in available cash and equivalents plus $54 million in available borrowing capacity, providing nearly $100 million to support organic growth, accretive acquisitions and opportunistic share repurchases."

Robert added, "With the support of our ongoing operating cash flow generation, Ebix is well positioned to continue to fund its growth along with initiatives to drive long term shareholder value. Ebix utilized $44.3 million of cash during Q3 2015, consisting of $33.3 million to re-purchase 1.17 million shares of Ebix common stock, a $6.0 million investment in the IHC joint venture, $2.6 million in quarterly dividends, and $2.4 million for the purchase a building for our expanding operations in India and the build out of our new headquarters campus in Johns Creek, Georgia."

Conference Call Details:
Call Date/Time:  Friday, November 6, 2015 at 11:00 a.m. EST
Call Dial-In:  +1-877-837-3909 or 1 973-409-9690; Call ID #68074608
Live Audio Webcast: www.ebix.com/webcast
Audio Replay URL: www.ebix.com/result_15_q3 after 2:00 p.m. EST Nov. 6th
   

About Ebix, Inc.

A leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, Ebix, Inc., (NASDAQ:EBIX) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and risk compliance solutions to custom software development for all entities involved in the insurance industry.

With 40+ offices across Brazil, Singapore, Australia, the US, UK, 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. For more information, visit the Company's website at www.ebix.com

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.

The information contained in this Press Release 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 our Annual Report on Form 10-K and subsequent reports filed with the SEC, as well as: the risk of an unfavorable outcome of the pending governmental investigations or shareholder class action lawsuits, reputational harm caused by such investigations and lawsuits, 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 the documents we file from time to time with the SEC, including future reports on Forms 10-Q and 8-K, and any amendments thereto.

You may obtain our SEC filings at our website, www.ebix.com under the "Investor Information" section, or over the Internet at the SEC's web site, www.sec.gov.
 
Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
 
  Three Months Ended   Nine Months Ended
  September 30,   September 30
  2015   2014   2015   2014
Operating revenue $ 66,813     $ 50,808     $ 195,278     $ 153,688  
               
Operating expenses:              
Cost of services provided 17,809     10,275     55,993     29,851  
Product development 8,338     6,779     22,673     20,230  
Sales and marketing 3,805     3,559     10,795     10,644  
General and administrative, net 12,128     6,008     34,995     26,917  
Amortization and depreciation 2,765     2,449     7,932     7,442  
Total operating expenses 44,845     29,070     132,388     95,084  
               
Operating income 21,968     21,738     62,890     58,604  
Interest income 62     61     167     326  
Interest expense (1,058 )   (392 )   (2,402 )   (850 )
Non-operating (loss)/income - put options     (19 )       296  
Non-operating expense - securities litigation     (350 )       (350 )
Foreign currency exchange gain 1,137     987     2,359     532  
Income before income taxes 22,109     22,025     63,014     58,558  
Income tax expense (1,877 )   (4,010 )   (5,410 )   (11,547 )
Net income $ 20,232     $ 18,015     $ 57,604     $ 47,011  
               
Basic earnings per common share $ 0.59     $ 0.47     $ 1.65     $ 1.23  
               
Diluted earnings per common share $ 0.59     $ 0.47     $ 1.63     $ 1.22  
               
Basic weighted average shares outstanding 34,304     38,050     35,014     38,264  
               
Diluted weighted average shares outstanding 34,515     38,253     35,241     38,499  

Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
 
  September 30,  2015   December 31,  2014
ASSETS (Unaudited)    
Current assets:      
Cash and cash equivalents $ 33,200     $ 52,300  
Short-term investments 1,014     281  
Trade accounts receivable, less allowances of $906 and $1,619, respectively 47,166     41,100  
Deferred tax asset, net 802     2,113  
Other current assets 11,058     8,067  
Total current assets 93,240     103,861  
       
Property and equipment, net 33,583     24,661  
Goodwill 408,093     402,220  
Intangibles, net 49,591     49,371  
Indefinite-lived intangibles 30,887     30,887  
Deferred tax asset, net 20,563     18,758  
Other assets 12,522     4,553  
Total assets $ 648,479     $ 634,311  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Accounts payable and accrued liabilities $ 21,703     $ 40,121  
Accrued payroll and related benefits 6,020     5,280  
Current portion of long term debt and capital lease obligations, net of discount of $5 and $7, respectively 607     936  
Current deferred rent 311     268  
Contingent liability for accrued earn-out acquisition consideration 1,690     887  
Deferred revenue 19,251     22,192  
Other current liabilities 98     102  
Total current liabilities 49,680     69,786  
       
Revolving line of credit 186,465     120,465  
Long term debt and capital lease obligations, less current portion, net of discount of $0 and $7, respectively 41     593  
Other liabilities 2,157     2,179  
Contingent liability for accrued earn-out acquisition consideration 6,323     4,480  
Deferred revenue 1,803     2,496  
Long term deferred rent 1,847     2,091  
Total liabilities 248,316     202,090  
       
       
Stockholders' equity:      
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at September 30, 2015 and December 31, 2014      
Common stock, $0.10 par value, 60,000,000 shares authorized, 33,787,094 issued and outstanding, at September 30, 2015 and 36,232,074 issued and 36,191,565 outstanding at December 31, 2014 3,378     3,619  
Additional paid-in capital 69,756     137,101  
Treasury stock (no shares as of September 30, 2015 and 40,509 shares as of December 31, 2014)     (76 )
Retained earnings 359,341     309,726  
Accumulated other comprehensive loss (32,312 )   (18,149 )
Total stockholders' equity 400,163     432,221  
Total liabilities and stockholders' equity $ 648,479     $ 634,311  

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
  Nine Months Ended
  September 30,
  2015   2014
Cash flows from operating activities:      
Net income $ 57,604     $ 47,011  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 7,932     7,442  
Benefit for deferred taxes (5,749 )   (1,810 )
Share based compensation 1,244     1,333  
Provision for doubtful accounts 1,950     1,083  
Debt discount amortization on promissory note payable 13     26  
Unrealized foreign exchange (gain) loss (2,008 )   (256 )
Loss on put option     (296 )
Reduction of acquisition earnout accruals (1,533 )   (7,533 )
Changes in assets and liabilities, net of effects from acquisitions:      
Accounts receivable (6,328 )   (1,901 )
Other assets (3,606 )   (3,977 )
Accounts payable and accrued expenses (21,448 )   (8,064 )
Accrued payroll and related benefits 1,100     1,027  
Deferred revenue (3,096 )   (704 )
Deferred rent (111 )   (272 )
Reserve for potential uncertain income tax return positions 594     9,337  
Liability - securities litigation settlement payment (690 )   (3,868 )
Other liabilities (205 )   (188 )
Net cash provided by operating activities 25,663     38,390  
       
Cash flows from investing activities:      
Acquisition of Via Media Health, net of cash acquired (1,000 )    
Acquisition of P.B. Systems, net of cash acquired  (11,475 )    
Acquisition of HealthCare Magic, net of cash acquired     (5,856 )
Investment in Joint Venture (6,000 )    
Acquisition of CurePet, Inc., net of cash acquired     3  
Payment of acquisition earn-out contingency, Taimma     (2,250 )
Purchases of marketable securities (940 )   (595 )
Capital expenditures (12,713 )   (15,922 )
Net cash used in investing activities (32,128 )   (24,620 )
       
Cash flows from financing activities:      
Proceeds from revolving line of credit, net 66,000     40,625  
Principal payments of term loan obligation     (31,938 )
Repurchases of common stock (67,780 )   (16,482 )
Excess tax benefit from share-based compensation 63     (3,200 )
Proceeds from the exercise of stock options 1,117     788  
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested (1,141 )   (37 )
Dividend payments (7,989 )   (8,652 )
Shares reacquired in connection with put option      (3,535 )
Principal payments of debt obligations (638 )   (336 )
Payments of capital lease obligations (3 )   (144 )
Net cash used in financing activities (10,371 )   (22,911 )
Effect of foreign exchange rates on cash (2,264 )   (183 )
Net change in cash and cash equivalents (19,100 )   (9,324 )
Cash and cash equivalents at the beginning of the period 52,300     56,674  
Cash and cash equivalents at the end of the period $ 33,200     $ 47,350  
Supplemental disclosures of cash flow information:      
Interest paid $ 4,002     $ 802  
Income taxes paid $ 24,663     $ 10,782  

 
CONTACT:Aaron Tikkoo                                                                                                  678 -281-2027 or atikkoo@ebix.comDavid Collins, Tanya Kamatu or Chris EddyCatalyst Global - 212-924-9800 or ebix@catalyst-ir.com

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