Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of
on-demand software and e-commerce services to the insurance,
financial services, travel, healthcare, and e-learning industries
today announced the following results for the quarter ended
December 31, 2022 and the full year results for 2022:
- Revenues of $255.2 million and $1.05 billion for Q4 2022 and
fiscal year 2022
- 2022 GAAP operating income of $120.3 million and Non-GAAP
operating income of $137.3 million
- GAAP Diluted EPS of $2.10 for fiscal year 2022 and Non-GAAP
diluted EPS of $2.58 for fiscal year 2022.
- Operating cash of $32.5 million in Q4 2022 and $77.6 million in
fiscal 2022
Ebix will host a conference call to review its
results today at 11:00 a.m. EDT (details below).
Robin Raina, President & CEO, Ebix Inc.
said, “On a constant currency basis, our Q4 2022 revenues grew by
5% year-over-year (“YoY”) to $279 million, whereas our 2022 fiscal
revenues grew 11% to $1.108 Billion as compared to a year ago. The
main contributors to this double digit growth for the full year
were the Company's EbixCash travel and foreign exchange/outward
remittance revenues that grew a combined 118% YoY, EbixCash BPO/IT
Services YoY revenue growth of 47%, e-learning revenue YoY growth
of 160%, Financial technologies revenue YOY revenue growth of 5%,
Latin American revenue YoY growth of 42%, and US Annuitynet revenue
growth of 20% YoY, Our EbixCash exchange revenues, excluding our
prepaid gift card business, generated 58% YoY growth in 2022.”
“The Company’s EbixCash channel GAAP revenues
grew 6% YoY in 2022, RCS channel GAAP revenues grew 10% YoY in 2022
while the insurance channel revenues were essentially flat in 2022
as compared to 2021. On a constant currency basis Insurance
Exchange revenues increased by $3.2 million, or 1.9%, in 2022 as
compared to 2021.” Mr. Raina said. “The Company generated $142.8
million of EBITDA plus stock-based compensation for the full year,
which represents an increase of $3.2 million, or 2% year-over-year.
I am especially pleased with operating cash flow of $32.5 million
in Q4 2022 as it speaks to the fundamentals of our business.”
Mr. Raina added, “While our operating income
continues to be strong, our net income is getting negatively
affected by the high cost of bank interest and associated legal and
advisory fees associated with the refinancing and extension
exercise. Once our EbixCash IPO is carried out successfully, it is
expected to reduce our interest costs substantially. In the
meanwhile, we are working with our financial advisor Jefferies on a
number of possible options. Our goal remains to seek a structure
that is in the best interests of all of our stakeholders.”
Ebix delivered the following results for the
fourth quarter and fiscal year 2022:
Revenue: Fiscal year 2022
revenue increased 6% to $1.05 billion as compared to $994.9 million
in fiscal year 2021. The increase is primarily due to growth in the
EbixCash business, as well as year-over-year growth in the
Company’s core life and annuity exchange platforms, BPO and IT
outsourced services originating in India, foreign exchange
business, travel business, e-learning and financial technology
businesses; and growth in revenues in nine of the Company’s eleven
major geographies. These increases were offset primarily by decline
in the EbixCash pre-paid card business, besides declines in revenue
within our US based Consulting, Employee Heath and Wellness and
Health Exchange businesses, and the negative effect of substantial
strengthening of the US dollar on our revenues in the year
2022.
On a constant currency basis, fiscal year 2022
revenues would have been $57.6 million higher but for changes in
foreign exchange rates during the year, which would have resulted
in 11.3% year-over-year growth in revenues.
Q4 2022 revenue decreased 4% to $255.2 million
compared to $266.8 million in Q4 2021. The decrease is primarily
due to the negative effect of the substantial strengthening of the
US dollar on our revenues in Q4 2022, as compared to a year back.
On a constant currency basis, Q4 2022 revenues increased 5%
year-over-year and would have been $23.8 million higher in the
quarter but for foreign exchange rate changes during the
quarter.
On a constant currency basis eight of the eleven
major geographies worldwide had year-over-year revenue growth in Q4
2022. Insurance Exchanges revenues worldwide decreased
year-over-year by 2%, but were slightly higher on a constant
currency basis, while Risk Compliance Solutions revenue increased
14% year-over-year in the fourth quarter of 2022.
Exchanges, including EbixCash and our worldwide
insurance exchanges, continued to be Ebix’s largest channel,
accounting for 92% of 2022 revenues.
(dollar amounts in thousands) |
|
|
|
|
|
Channel |
Q4 2022 |
Q4 2021 |
Change |
2022 |
2021 |
Change |
EbixCash Exchanges |
$188,899 |
$199,899 |
-6% |
$797,805 |
$749,775 |
+6% |
Insurance
Exchanges |
43,806 |
44,410 |
-1% |
171,156 |
171,087 |
0% |
RCS –
Insurance |
22,502 |
22,518 |
0% |
81,185 |
74,077 |
+10% |
Total Revenue |
$255,207 |
$266,827 |
-4% |
$1,050,146 |
$994,938 |
+6% |
|
|
|
|
|
|
|
Total Revenue on Constant Currency Basis |
$278,995 |
$266,827 |
+5% |
$1,107,728 |
$ 625,609 |
+11% |
Operating Income and Operating
Cash: GAAP operating income for Q4 2022 of $29.8 million
decreased 8% year-over-year as compared to $32.4 million in Q4
2021. Q4 2022 GAAP operating income decreased 2% sequentially from
Q3 2022 operating income of $30.4 million. On a constant currency
basis Q4 2022 GAAP operating income increased 3% sequentially from
Q3 2022 and decreased 3% year-over-year from Q4 2021. Non-GAAP
operating income for Q4 2022 was $34.3 million.
GAAP operating income for 2022 increased 1% to
$120.3 million as compared to $119.9 million in 2021. The increase
is due to the revenue growth described above, offset by increased
sales and marketing and general and administrative expenses that
increased at a higher rate than revenue growth, as well as the
negative impacts of foreign exchange rate changes during 2022. On a
constant currency basis, GAAP operating income would have been $4.1
million higher in 2022, resulting in growth of 5%
year-over-year.
Cash generated from operations in Q4 2022 was
$32.5 million, as compared to $29.6 million in Q4 2021 and $23.6
million in Q3 2022.
Earnings per Share and Net
Income: For the fiscal year 2022, GAAP diluted earnings
per share declined 6% to $2.10 as compared to $2.23 in 2021.
Non-GAAP diluted earnings per share for 2022 was $2.58. During 2022
the Company experienced increasing debt service costs as a result
of an increasing interest rate environment combined with an
increase in our borrowing spreads under the corporate credit
facility. For 2022, interest expense increased by $13.7 million and
tax expenses increased by $2.9 million as compared to 2021, which
cumulatively equates to $0.54 per diluted share. Despite GAAP
operating income growing 1% year-over-year in 2022 to $120.3
million, yet Net income for 2022 declined 5% to $64.6 million as
compared to $68.2 million in 2021 because of the above reasons.
Non-GAAP Net income for 2022 was $79.4 million.
Q4 2022 GAAP net income decreased 49% to $7.8
million compared to $15.4 million in Q4 2021. Q4 2022 GAAP diluted
earnings per share was $0.26 as compared to $0.50 in Q4 2021, a 49%
decrease year-over-year. Non-GAAP diluted earnings per share in Q4
2022 was $0.36. The Company’s interest expense increased
year-over-year by $5.8 million due primarily to a higher interest
rate environment in Q4 2022 as compared to Q4 2021, as well as
higher borrowing spreads under the corporate credit facility. This
increase in borrowing costs equated to $0.19 per diluted share.
Additionally, Q4 2022 general and administrative expenses related
to rent expense and employee-related salary and benefits expense
increased year-over-year by $3.5 million (+116% year-over-year) and
$4.1 million (+25.5% year-over-year). The rent increase is
primarily related to our Foreign Exchange operations as the Company
continues to re-open operations in airports and ports of entry in
India as the negative impacts from COVID-19 subside. The reopening
of physical locations results in the incurrence of fully loaded
rent and other operating costs from day one, but the revenues
return over time. The increase in personnel costs is driven by
having more employees year-over-year for some of our new projects
that will start bringing revenue soon (approximately 500 more) and
wage inflation due to a tight labor market in India for
technically-skilled employees.
Q4 2022 Diluted Share Count: As
of today, Ebix expects its diluted share count at March 31, 2022 to
be approximately 30.8 million shares.
Dividend: Ebix paid its
quarterly dividend of $0.075 per share in Q4 2022 for a total cost
of $2.3 million.
Steve Hamil, EVP and Global CFO said, “Despite
the highest negative impact from foreign exchange movements we have
seen in at least five years during Q4 2022 and for the full year
2022, the Company generated Adjusted EBITDA (EBITDA plus non-cash
stock compensation expense) of $142.7 million in 2022, which
represents a year-over-year increase of $3.2 million, or 2%, as
compared to 2021. Our EbixCash operations most negatively impacted
by COVID-19 continue to rebound, though we remain 25%+ below
pre-COVID-19 operating levels within these business lines. We
expect to continue to improve COVID-19-impacted businesses during
2023 with the goal of returning to pre-COVID-19 quarterly operating
levels by the end of 2023. With continued EbixCash growth, combined
with expected growth in our insurance exchanges and risk compliance
solutions revenues in 2023, Ebix management believes that Company
is well-positioned to capitalize on its strong market positions in
2023 and beyond.”
Mr. Hamil added “Management continues to work
with the Company’s Board of Directors and outside financial and
legal advisors to address the refinancing of its credit Facility,
which the Company, in cooperation with its syndicate of banks,
extended to May 23, 2023 in order to give the Company time to
continue to pursue alternatives that will refinance the credit
facility. The Company has multiple options that it is exploring to
ensure that the credit facility is largely or wholly refinanced as
quickly as possible.”
Reconciliation of GAAP operating income,
net income and diluted earnings per share to non-GAAP operating
income, net income and diluted earnings per share.
Non-GAAP information is provided to enhance the understanding of
the Company's financial performance and is reconciled to the
Company's GAAP information in the accompanying tables.
Full Year 2022
|
Net Income |
Diluted EPS |
2022 GAAP Net Income |
$64,645 |
|
$2.10 |
|
2022 GAAP Operating Income |
$120,344 |
|
|
|
|
|
Non-GAAP Adjustments: |
|
|
Amortization of Intangibles (1) |
$9,554 |
|
$0.31 |
|
Stock-Based Compensation (1) |
$3,875 |
|
$0.13 |
|
One-time Legal Costs and Professional Fees (2) |
$1,685 |
|
$0.05 |
|
Non-recurring non-operating expense (3) |
$1,828 |
|
$0.06 |
|
Income Tax Effects of Non–GAAP Adjustments (4) |
($2,221 |
) |
($0.07 |
) |
|
|
|
Total Non-GAAP Adjustments (Operating Income) |
$16,942 |
|
|
Total Non-GAAP Adjustments (Net Income) |
$14,721 |
|
$0.48 |
|
|
|
|
Full Year 2022 Non-GAAP Net Income |
$ 79,366 |
|
$ 2.58 |
|
Full Year 2022 Non-GAAP Operating Income |
$137,286 |
|
|
Q4 2022
|
Net Income |
Diluted EPS |
Q4 2022 GAAP Net Income |
$7,861 |
|
$0.26 |
|
Q4 2022 GAAP Operating Income |
$29,766 |
|
|
|
|
|
Non-GAAP Adjustments: |
|
|
Amortization of Intangibles (1) |
$2,255 |
|
$0.07 |
|
Stock-Based Compensation (1) |
$970 |
|
$0.03 |
|
One-time Legal Costs and Professional Fees (2) |
$1,025 |
|
$0.03 |
|
Non-operating expense (3) |
$248 |
|
$0.01 |
|
Income Tax Effects of Non–GAAP Adjustments (4) |
($1,340 |
) |
($0.04 |
) |
|
|
|
Total Non-GAAP Adjustments (Operating Income) |
$4,498 |
|
|
Total Non-GAAP Adjustments (Net Income) |
$3,158 |
|
$0.10 |
|
|
|
|
Fourth Quarter 2022 Non-GAAP Net Income |
$11,019 |
|
$0.36 |
|
Fourth Quarter 2022 Non-GAAP Operating Income |
$34,264 |
|
|
(1) Adjustments related to
amortization of acquired intangibles and stock-based compensation
recognized during the periods for GAAP purposes.(2) Non-recurring
legal costs and professional fees recorded during the periods for
GAAP purposes.(3) Non-recurring non-operating expense that is
unrelated to any operating activities.(4) Non-GAAP adjustment is
based on the fully ear 2022 and Q4 2022 effective tax rates, which
reflects currently available information and could be subject to
change.
Non-GAAP Financial Measures and Other
Metrics
This press release contains the following non-GAAP
financial measures: non-GAAP net income, non-GAAP operating income
and non-GAAP diluted earnings per share. Non-GAAP operating income
, non-GAAP net income and non-GAAP diluted earnings per share from
operations exclude amortization of intangibles, stock-based
compensation, as well as certain non-recurring expenses that are
not associated with our ongoing operating business activities.
Ebix believes that these non-GAAP financial
measures and other metrics provide useful information to management
and investors regarding certain financial and business trends
relating to Ebix’s financial condition and results of operations.
The Company’s management uses these non-GAAP measures and other
metrics to compare the Company’s performance to that of prior
periods for trend analysis, for purposes of determining executive
and senior management incentive compensation, and for budgeting and
planning purposes. The Company believes that the use of these
non-GAAP financial measures and other metrics provides an
additional tool for investors to use in evaluating ongoing
operating results and trends and in comparing the Company’s
financial measures with other software companies, many of which
present similar non-GAAP financial measures and other metrics to
investors.
Management of the Company does not consider these
non-GAAP measures in isolation or as an alternative to financial
measures determined in accordance with GAAP. The principal
limitation of these non-GAAP financial measures is that they
exclude significant expenses and income that are required by GAAP
to be recorded in the Company’s financial statements. In addition,
they are subject to inherent limitations as they reflect the
exercise of judgment by management about which expenses and income
are excluded or included in determining these non-GAAP financial
measures. Ebix urges investors to review the reconciliation of its
non-GAAP financial measures to the comparable GAAP financial
measures, which it includes in press releases announcing quarterly
financial results, including the financial tables at the end of
this press release, and not to rely on any single financial measure
to evaluate the Company’s business.
Conference Call Details:
Call Date/Time: |
Wednesday, March 15, 2022 at 11:00 a.m. EST |
US & Canada Toll Free |
+1 (800) 715-9871 Call ID # 2396483 |
Live Listen-Only Webcast: |
https://edge.media-server.com/mmc/p/kodfrx33 |
Audio Replay URL: |
https://www.ebix.com/investorhome |
About Ebix, Inc.
With approximately 200 offices across 6
continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide
on-demand software and e-commerce services to the insurance,
financial services, travel, healthcare and e-learning industries.
In the Insurance sector, Ebix’s main focus is to develop and deploy
a wide variety of insurance and reinsurance exchanges on an
on-demand basis using Software-as-a-Service ("SaaS") enterprise
solutions in the area of customer relationship management (CRM),
front-end and back-end systems, and outsourced administration and
risk compliance services.
With a "Phygital” strategy that combines over
650,000 physical distribution outlets in many Association of
Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel
online digital platform, the Company’s EbixCash Financial exchange
portfolio of software and services encompasses domestic and
international money remittance, foreign exchange (Forex), travel,
pre-paid gift cards, utility payments, lending and wealth
management in India and other countries primarily in Asia and the
Middle East. EbixCash’s Forex operations is a leader in India’s
airport Forex business, with operations in 20 international
airports, including Delhi, Mumbai, Hyderabad, Chennai and Kolkata.
EbixCash’s inward remittance business is a market leader in India
due to its geographic depth and its affiliations with international
money transmitters, such as Western Union, Moneygram and Ria.
EbixCash, through its travel portfolio of Via and Mercury, is also
one of Southeast Asia’s leading travel exchanges with over 500,000
agents and approximately 18,000 registered corporate
clients. EbixCash's financial technologies business
offers software solutions at the enterprise level for banks, asset
and wealth management companies and trust companies within India,
Southeast Asia, the Middle East and Africa. The EbixCash's
e-learning solutions are provided to schools across the breadth of
India via high quality 2-D and 3-D animation and multimedia
learning. EbixCash's business process outsourcing services provide
information technology and call center services to a variety of
industries.
Through its various SaaS-based software
platforms, Ebix employs thousands of domain-specific 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,” 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 for
the year ended December 31, 2021 and subsequent reports filed with
the SEC, as well as: the impending maturity of the Company’s
corporate credit facility and our ability to refinance or repay our
lenders credit facility provisions that materially restrict our
business, our ability to either complete or derive anticipated
benefits from the EbixCash IPO, the ongoing effects of the Covid-19
global pandemic, 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 India, Australia
and Asia, Latin America and Europe wherein we have significant
and/or growing operations); fluctuations in the equity markets,
including market disruptions and significant interest rate
fluctuations, which may impede our access to, or increase the cost
of, external financing; ability to secure additional financing to
support capital requirements; costs and effects of litigation,
investigations or similar matters that could affect our business,
operating results and financial condition; and international
conflict, including terrorist acts and wars.
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
CONTACT:
Darren Joseph 678 -281-2027 or IR@ebix.com
David Collins or Chris Eddy Catalyst Global -
212-924-9800 or ebix@catalyst-ir.com
Ebix, Inc. and Subsidiaries
Consolidated Statements of
Income
|
Year Ended December 31, |
|
2022 |
|
2021 |
|
2020 |
|
(In thousands, except per share amounts) |
Operating revenue: |
$ |
1,050,146 |
|
|
$ |
994,938 |
|
|
$ |
625,609 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Costs of
services provided |
|
721,515 |
|
|
|
705,390 |
|
|
|
343,262 |
|
Product
development |
|
41,188 |
|
|
|
40,015 |
|
|
|
35,267 |
|
Sales and
marketing |
|
17,369 |
|
|
|
14,434 |
|
|
|
13,835 |
|
General and
administrative, net |
|
131,199 |
|
|
|
100,911 |
|
|
|
87,537 |
|
Amortization
and depreciation |
|
18,531 |
|
|
|
15,178 |
|
|
|
13,738 |
|
Impairment
of intangible asset |
|
— |
|
|
|
— |
|
|
|
6,168 |
|
Total operating expenses |
|
929,802 |
|
|
|
875,928 |
|
|
|
499,807 |
|
|
|
|
|
|
|
Operating income |
|
120,344 |
|
|
|
119,010 |
|
|
|
125,802 |
|
Interest
income |
|
253 |
|
|
|
83 |
|
|
|
167 |
|
Interest
expense |
|
(55,068 |
) |
|
|
(41,370 |
) |
|
|
(31,578 |
) |
Non-operating (loss) income |
|
(1,828 |
) |
|
|
(3,766 |
) |
|
|
153 |
|
Non-operating expense - litigation settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign
currency exchange loss, net |
|
8,374 |
|
|
|
(434 |
) |
|
|
(387 |
) |
Income before income taxes |
|
72,075 |
|
|
|
73,523 |
|
|
|
94,157 |
|
Income tax
provision |
|
(9,447 |
) |
|
|
(6,584 |
) |
|
|
(5,330 |
) |
Net
income including noncontrolling interest |
$ |
62,628 |
|
|
$ |
66,939 |
|
|
$ |
88,827 |
|
Net loss
attributable to noncontrolling interest |
|
(2,017 |
) |
|
|
(1,249 |
) |
|
|
(3,550 |
) |
Net
income attributable to Ebix, Inc. |
$ |
64,645 |
|
|
$ |
68,188 |
|
|
$ |
92,377 |
|
Basic earnings per common share |
$ |
2.10 |
|
|
$ |
2.23 |
|
|
$ |
3.03 |
|
Diluted earnings per common share |
$ |
2.10 |
|
|
$ |
2.22 |
|
|
$ |
3.02 |
|
Basic
weighted average shares outstanding |
|
30,761 |
|
|
|
30,625 |
|
|
|
30,510 |
|
Diluted
weighted average shares outstanding |
|
30,761 |
|
|
|
30,664 |
|
|
|
30,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ebix, Inc.
and Subsidiaries |
Consolidated
Balance Sheets |
|
|
|
|
|
|
December 31, |
|
2022 |
|
2021 |
|
(In thousands, except share and per share
amounts) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
110,637 |
|
|
$ |
99,625 |
|
Receivables
from service providers |
|
4,223 |
|
|
|
1,352 |
|
Short-term
investments |
|
17,438 |
|
|
|
16,463 |
|
Restricted
cash |
|
8,210 |
|
|
|
9,080 |
|
Fiduciary
funds - restricted |
|
2,092 |
|
|
|
2,046 |
|
Trade
accounts receivable, less allowances of $18,167 and $19,874,
respectively |
|
154,533 |
|
|
|
153,609 |
|
Other
current assets |
|
87,387 |
|
|
|
84,389 |
|
Total current assets |
|
384,520 |
|
|
|
366,564 |
|
Property and
equipment, net |
|
52,448 |
|
|
|
47,903 |
|
Right-of-use
assets |
|
9,636 |
|
|
|
10,051 |
|
Goodwill |
|
881,676 |
|
|
|
939,249 |
|
Intangibles,
net |
|
50,900 |
|
|
|
59,748 |
|
Indefinite-lived intangibles |
|
16,647 |
|
|
|
16,647 |
|
Capitalized
software development costs, net |
|
15,343 |
|
|
|
15,068 |
|
Deferred tax
assets, net |
|
96,289 |
|
|
|
84,514 |
|
Other
assets |
|
30,096 |
|
|
|
33,505 |
|
Total assets |
$ |
1,537,555 |
|
|
$ |
1,573,249 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts
payable and accrued liabilities |
$ |
99,194 |
|
|
$ |
86,181 |
|
Payables to
service agents |
|
11,299 |
|
|
|
6,296 |
|
Accrued
payroll and related benefits |
|
10,651 |
|
|
|
11,360 |
|
Working
capital facilities |
|
3,367 |
|
|
|
5,607 |
|
Fiduciary
funds - restricted |
|
2,092 |
|
|
|
2,046 |
|
Revolving
line of credit |
|
449,902 |
|
|
|
— |
|
Short-term
debt |
|
3,000 |
|
|
|
1,954 |
|
Current
portion of long-term debt, net of deferred financing costs of $469
and $1,635, respectively |
|
190,866 |
|
|
|
28,577 |
|
Contract
liabilities |
|
32,028 |
|
|
|
33,164 |
|
Lease
liability |
|
3,354 |
|
|
|
3,173 |
|
Other
current liabilities |
|
25,784 |
|
|
|
26,837 |
|
Total current liabilities |
|
831,537 |
|
|
|
205,195 |
|
Revolving
line of credit |
|
— |
|
|
|
439,402 |
|
Long-term
debt, less current portion, net of deferred financing costs of $—
and $261, respectively |
|
160 |
|
|
|
184,676 |
|
Contingent
liability for earn-out acquisition consideration |
|
2,299 |
|
|
|
2,557 |
|
Contract
liabilities |
|
14,098 |
|
|
|
8,193 |
|
Lease
liability |
|
6,612 |
|
|
|
7,139 |
|
Deferred tax
liability, net |
|
1,150 |
|
|
|
1,150 |
|
Other
liabilities |
|
22,259 |
|
|
|
25,383 |
|
Total liabilities |
|
878,115 |
|
|
|
873,695 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Preferred
stock, $0.10 par value, 500,000 shares authorized, no shares issued
and outstanding at December 31, 2022 and 2021 |
|
— |
|
|
|
— |
|
Series Y
Convertible preferred stock, $0.10 par value, 350,000 shares
authorized, no shares issued and outstanding at December 31, 2022
and 2021 |
|
— |
|
|
|
— |
|
Common
stock, $0.10 par value, 220,000,000 shares authorized, 30,819,533
issued and outstanding at December 31, 2022 and 30,683,393
issued and outstanding at December 31, 2021 |
|
3,082 |
|
|
|
3,068 |
|
Additional
paid-in capital |
|
18,800 |
|
|
|
15,068 |
|
Retained
earnings |
|
814,780 |
|
|
|
759,208 |
|
Accumulated
other comprehensive loss |
|
(219,437 |
) |
|
|
(122,022 |
) |
Total Ebix, Inc. stockholders’ equity |
|
617,225 |
|
|
|
655,322 |
|
Noncontrolling interest |
|
42,215 |
|
|
|
44,232 |
|
Total stockholders' equity |
|
659,440 |
|
|
|
699,554 |
|
Total liabilities and stockholders’ equity |
$ |
1,537,555 |
|
|
$ |
1,573,249 |
|
|
|
|
|
|
|
|
|
|
Ebix, Inc.
and Subsidiaries |
Consolidated
Statements of Cash Flows |
|
|
Year Ended December 31, |
|
2022 |
|
2021 |
|
2020 |
|
(In thousands) |
Cash
flows from operating activities: |
|
|
|
|
|
Net income attributable to Ebix, Inc. |
$ |
64,645 |
|
|
$ |
68,188 |
|
|
$ |
92,377 |
|
Net loss
attributable to noncontrolling interest |
|
(2,017 |
) |
|
|
(1,249 |
) |
|
|
(3,550 |
) |
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation
and amortization |
|
18,531 |
|
|
|
15,178 |
|
|
|
13,738 |
|
(Benefit)
provision for doubtful accounts |
|
1,433 |
|
|
|
(2,334 |
) |
|
|
1,749 |
|
(Benefit)
provision for deferred taxes, net of acquisitions and effects of
currency translation |
|
(17,972 |
) |
|
|
(11,104 |
) |
|
|
5,114 |
|
Amortization
of right-of-use assets |
|
3,557 |
|
|
|
4,294 |
|
|
|
6,100 |
|
Amortization
of capitalized software development costs |
|
2,983 |
|
|
|
3,317 |
|
|
|
3,367 |
|
Share-based
compensation |
|
3,875 |
|
|
|
5,360 |
|
|
|
4,792 |
|
Reduction of
acquisition earn-out contingent liability |
|
— |
|
|
|
— |
|
|
|
(3,105 |
) |
Cash paid
for acquisition earn-out |
|
— |
|
|
|
— |
|
|
|
(6,453 |
) |
Intangible
asset impairment |
|
— |
|
|
|
— |
|
|
|
6,168 |
|
Changes in assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
|
Accounts
receivable |
|
(15,049 |
) |
|
|
(10,866 |
) |
|
|
3,258 |
|
Receivables
from service providers |
|
(2,871 |
) |
|
|
3,359 |
|
|
|
20,896 |
|
Payables to
service agents |
|
5,003 |
|
|
|
1,015 |
|
|
|
(6,915 |
) |
Other
assets |
|
(8,409 |
) |
|
|
(17,305 |
) |
|
|
(10,487 |
) |
Accounts
payable and accrued expenses |
|
21,183 |
|
|
|
18,545 |
|
|
|
(14,569 |
) |
Accrued
payroll and related benefits |
|
(56 |
) |
|
|
(143 |
) |
|
|
2,100 |
|
Lease
liabilities |
|
(3,460 |
) |
|
|
(3,951 |
) |
|
|
(5,700 |
) |
Reserve for
potential uncertain income tax return positions |
|
— |
|
|
|
(2,071 |
) |
|
|
— |
|
Contract
liabilities |
|
6,722 |
|
|
|
694 |
|
|
|
3,680 |
|
Other
liabilities |
|
(531 |
) |
|
|
(1,456 |
) |
|
|
(12,204 |
) |
Net
cash provided by operating activities |
|
77,567 |
|
|
|
69,471 |
|
|
|
100,356 |
|
Cash
flows from investing activities: |
|
|
|
|
|
Cash paid
for acquisitions, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(14,276 |
) |
Maturities
(purchases) of unrestricted marketable securities, net |
|
(968 |
) |
|
|
8,567 |
|
|
|
(20,964 |
) |
Capitalized
software development costs |
|
(7,051 |
) |
|
|
(5,700 |
) |
|
|
(4,229 |
) |
Capital
expenditures |
|
(14,476 |
) |
|
|
(7,465 |
) |
|
|
(5,337 |
) |
Net
cash used in investing activities |
|
(22,495 |
) |
|
|
(4,598 |
) |
|
|
(44,806 |
) |
Cash
flows from financing activities: |
|
|
|
|
|
Proceeds
from revolving line of credit, net |
|
10,500 |
|
|
|
— |
|
|
|
1,364 |
|
Principal
payments of term loan obligation |
|
(23,464 |
) |
|
|
(42,594 |
) |
|
|
(20,711 |
) |
Working
capital facilities |
|
(1,765 |
) |
|
|
(10,913 |
) |
|
|
(10,927 |
) |
Proceeds
(payments) of short-term debt, net |
|
1,147 |
|
|
|
1,075 |
|
|
|
(271 |
) |
Payments of
finance lease obligations, net |
|
(190 |
) |
|
|
(100 |
) |
|
|
(210 |
) |
Proceeds
from exercise of common stock options |
|
— |
|
|
|
— |
|
|
|
636 |
|
Forfeiture
of certain shares to satisfy exercise costs and the recipients
income tax obligations related to stock options exercised and
restricted stock vested |
|
(128 |
) |
|
|
(1,402 |
) |
|
|
(2,589 |
) |
Dividend
payments |
|
(9,271 |
) |
|
|
(9,284 |
) |
|
|
(9,245 |
) |
Net cash
(used in) provided by financing activities |
|
(23,171 |
) |
|
|
(63,218 |
) |
|
|
(41,953 |
) |
Effect of
foreign exchange rates on cash and cash equivalents |
|
(21,706 |
) |
|
|
(7,104 |
) |
|
|
(4,753 |
) |
Net
change in cash and cash equivalents, and restricted
cash |
|
10,195 |
|
|
|
(5,449 |
) |
|
|
8,844 |
|
Cash and
cash equivalents, and restricted cash at the beginning of the
year |
|
114,764 |
|
|
|
120,213 |
|
|
|
111,369 |
|
Cash
and cash equivalents, and restricted cash at the end of the
year |
$ |
124,959 |
|
|
$ |
114,764 |
|
|
$ |
120,213 |
|
Supplemental disclosures of cash flow
information: |
|
|
|
|
|
Interest
paid |
$ |
33,244 |
|
|
$ |
30,369 |
|
|
$ |
29,498 |
|
Income taxes
paid |
$ |
24,201 |
|
|
$ |
17,675 |
|
|
$ |
21,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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