Ebix Reports GAAP Diluted EPS of $3.02 on Record Revenues of $625.6 Million and Operating Cash of $100.4 Million

JOHNS CREEK, Ga., April 27, 2021 (GLOBE NEWSWIRE) -- Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today reported fiscal 2020 fourth quarter (“Q4 2020”) and full year results for the periods ended December 31, 2020. Ebix will host a conference call to review its results today at 11:00 a.m. EST (details below).

Ebix Chairman, President and CEO Robin Raina said, “We are pleased that we were able to deliver stellar financial results in 2020, in spite of the tremendous negative impact of Covid-19 across several major areas of our global operations. In 2020, the Company produced cash flows from operations of $100.4 million as compared to $60.8 million in 2019. We are pleased with that cash flow generation, as it speaks to the diversity and fundamental strength of our businesses worldwide.”

Ebix delivered the following results for its fiscal fourth quarter and fiscal year 2020:

Revenue: Fiscal year 2020 revenue increased 8% to $625.6 million as compared to fiscal year 2019, and Q4 2020 revenue increased 52% year-over-year to $222.1 million versus Q4 2019.

On a constant currency basis, Ebix 2020 revenues increased 12% to $647.5 million vs. $580.6 million in 2019. Exchanges, including the EbixCash and Insurance Exchanges worldwide, continued to be Ebix’s largest channel, accounting for 91% of our fiscal year 2020 revenues.

(dollar amounts in thousands)     
ChannelQ4 2020Q4 2019Change20202019Change
EbixCash Exchanges$ 160,425$ 81,184+98%$ 388,293$ 319,953+21%
Insurance Exchanges48,77048,074+1%178,111190,067-6%
RCS – Insurance12,92016,925-24%59,20570,595-16%
Total Revenue$222,115$146,183+52%$ 625,609$ 580,615+8%
Total Revenue on Constant Currency Basis$ 228,162$ 146,183+56%$ 647,511$ 580,615+12%

Operating Income and Operating Cash: Q4 2020 GAAP operating income decreased 19% to $27.7 million as compared to $34.2 million in Q4 2019, primarily because of a one-time impairment charge of $6.2 million taken in Q4 2020 related to the Company’s Ebix Health Administration joint venture (“EHAE”) and the impact of Covid-19 on our worldwide businesses throughout fiscal year 2020. In Q4 2020, the Company generated $28.6 million of cash flows from operations.

GAAP operating income for 2020 declined 19% to $125.8 million as compared to $155.7 million in 2019. Non-GAAP operating income for 2020 was $147.7 million.

In 2020, the Company generated cash flows from operations of $100.4 million as compared to $60.8 million in 2019 in spite of the effect of Covid-19 on our worldwide businesses during 2020.

Earnings per Share: For the full fiscal year 2020, GAAP diluted earnings per share declined 4% to $3.02 from $3.16 in 2019. Excluding the one-time non-recurring items, non-GAAP diluted earnings per share for 2020 was $3.70.

Q4 2020 GAAP diluted earnings per share declined 10% to $0.64 from $0.71 in Q4 2019, primarily because of the one-time EHAE impairment charge in Q4 2020. Excluding the one-time non-recurring items, non-GAAP diluted earnings per share in Q4 2020 was $0.94.

Net Income: Full year 2020 GAAP net income decreased 4% to $92.4 million compared to $96.7 million in 2019. Fiscal year 2020 Non-GAAP net income was $113.1 million after excluding certain non-recurring items.

Q4 2020 GAAP net income decreased 10% to $19.5 million as compared to $21.7 million in Q4 2019. Q4 2020 Non-GAAP net income was $28.7 million after excluding certain non-recurring items.
Q1 2021 Diluted Share Counts: Ebix expects its diluted share count to be approximately 30.7 million in Q1 2021.

Dividend: Ebix paid its regularly quarterly dividend of $0.075 per share in Q4 2020 for a total cost of $2.3 million.

Robin said, “We grew our overall revenues 44% sequentially and 52% year over year in Q4 of 2020. We took a $6.2 million charge in Q4 2020 on account of a one-time impairment of our TPA business (EHAE), without which our operating income in Q4 2020 would have been $34 million. Our Non-GAAP operating margin for the Company, excluding the lower margin payment solutions business, was 41.2% in the fourth quarter of 2020. This number excludes the additional impact of foreign exchange variations, which on a constant currency basis, would have added approximately $6 million to our Q4 2020 revenues and, accordingly, would have resulted in an additional increase in our income.”

Steve Hamil, EVP and Global CFO added, “During 2020, the Company cumulatively spent $117.7 million, including $29.5 million for cash interest related to outstanding debt, $21.3 million for tax payments, $20.7 million for scheduled principal payments on the term loan, $14.3 million for acquisition-related activities, $10.9 million reducing our working capital facilities in India, $9.2 million for dividend payments, $6.5 million for acquisition earn-out payments and $5.3 million for capital expenditures. Considering that level of expenditures, our cash, cash equivalents, short term investments and restricted cash were $138.6 million at 12/31/20 vs $112.7 million at 12/31/19. Total debt, including the working capital facilities, short term debt, current portion of long-term debt, long-term debt, and the revolving line of credit, stood at $712.7 million at December 31, 2020 versus $744.1 million at December 30, 2019, a year-over-year reduction of $31.4 million. The Company has made an additional $25.6 million in term loan payments related to its senior secured credit facility since 12/31/20.”

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 2020

 Net IncomeDiluted EPS
 2020 GAAP Net Income$92,377 $3.02 
 2020 GAAP Operating Income$125,802  
 Non-GAAP Adjustments:  
 Amortization of Intangibles (1)$9,499 $0.31 
 Stock-Based Compensation (1)$4,792 $0.16 
 EHAE Intangible Impairment in Q4 2020 (2)$6,168 $0.20 
 One-time Legal Costs (3)$1,478 $0.05 
 Income Tax Effects of Non–GAAP Adjustments (4)$(1,242) $(0.04) 
 Total Non-GAAP Adjustments (Operating Income)$21,937  
 Total Non-GAAP Adjustments (Net Income)$20,695 $0.68 
 Full Year 2020 Non-GAAP Net Income$113,072 $ 3.70 
 Full Year 2020 Non-GAAP Operating Income$147,739  

Q4 2020

 Net IncomeDiluted EPS
 Q4 2020 GAAP Net Income$19,497 $0.64 
 Q4 2020 GAAP Operating Income$27,740  
 Non-GAAP Adjustments:  
 Amortization of Intangibles (1)$2,379 $0.08 
 Stock-Based Compensation (1)$1,335 $0.04 
 EHAE Intangible Impairment in Q4 2020 (2)$6,168 $0.20 
 One-time Legal Costs (3)$658 $0.02 
 Income Tax Effects of Non–GAAP Adjustments (5)$(1,352) $(0.04) 
 Total Non-GAAP Adjustments (Operating Income)$10,540  
 Total Non-GAAP Adjustments (Net Income)$9,188 $0.30 
 Fourth Quarter 2020 Non-GAAP Net Income$28,685 $0.94 
 Fourth Quarter 2020 Non-GAAP Operating Income$38,280  
  1. Adjustments related to amortization of acquired intangibles and stock-based compensation recognized during the periods for GAAP purposes.
  2. Adjustment relates to an intangible asset impairment recorded in Q4 2020 at our Ebix Health Administration Exchange joint venture.
  3. Non-recurring legal costs recorded during the periods for GAAP purposes.
  4. Non-GAAP adjustment is based on the 2020 effective tax rate, which reflects currently available information and could be subject to change.
  5. Non-GAAP adjustment is based on the Q4 2020 effective tax rate, which reflects currently available information and could be subject to change.

Conference Call Details:

 Call Date/Time: Tuesday, April 27, 2021 at 11:00 a.m. EST

 Call Dial-In: +1-877-837-3909 or 1-973-409-9690; Call ID # 4957948

 Live Audio Webcast: www.ebix.com/webcast
 Audio Replay URL: www.ebix.com/result_20_Q4 after 2:00 p.m. EST on April 27, 2021

About Ebix, Inc.

With 50+ offices across 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide On-Demand software and E-commerce services to the insurance, financial, 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, while also, providing Software-as-a-Service ("SaaS") enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administration and risk compliance services, around the world.

With a "Phygital” strategy that combines over 320,000 physical distribution outlets in many Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets. EbixCash’s Forex operations have emerged as a leader in India’s airport Foreign Exchange business with operations in 20 international airports, including Delhi, Mumbai, Mumbai, Hyderabad, Chennai and Kolkata, combined conducting over $4.8 billion in gross transaction value per year (pre-COVID-19). EbixCash’s inward remittance business in India processes approximately $5 billion in gross annual remittance volume (pre-COVID-19) and is the clear market leader. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia’s leading travel exchanges with over 200,000 agents, 25 branches and over 9,800 corporate clients, combined processing an estimated $2.5 billion in gross merchandise value per year (pre-COVID-19).

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


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 ongoing effects of the Covid-19 global pandemic, the potential impacts of RSM’s resignation; the risk of litigation or regulatory action arising from RSM’s resignation and the resulting failure to failure to timely file the Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “Annual Report”); possible default by the Company under its credit facility; potential reputational damage that the Company may suffer as a result of these matters; the impact of these matters on the value of the Company’s stock; 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.

Darren Joseph    
678 -281-2027 or IR@ebix.com

David Collins, Chris Eddy
Catalyst Global - 212-924-9800 or ebix@catalyst-ir.com

Ebix, Inc. and Subsidiaries
Consolidated Statements of Income

 Year Ended December 31,
 2020 2019 2018
 (In thousands, except per share amounts)
Operating revenue:$625,609   $580,615   $497,826  
Operating expenses:     
Costs of services provided343,262   205,165   168,415  
Product development35,267   45,302   39,078  
Sales and marketing13,835   19,578   17,587  
General and administrative, net87,537   140,429   108,475  
Amortization and depreciation13,738   14,468   11,292  
Impairment of intangible asset6,168        
Total operating expenses499,807   424,942   344,847  
Operating income125,802   155,673   152,979  
Interest income167   629   436  
Interest expense(31,578)  (42,332)  (27,101) 
Non-operating income153   337   60  
Non-operating expense - litigation settlement (see Note 5)   (21,140)    
Foreign currency exchange loss(387)  (2,376)  (792) 
Income before income taxes94,157   90,791   125,582  
Income tax provision(5,330)  (220)  (32,501) 
Net income including noncontrolling interest$88,827   $90,571   $93,081  
Net loss attributable to noncontrolling interest (see Note 17)(3,550)  (6,149)  (58) 
Net income attributable to Ebix, Inc.$92,377   $96,720   $93,139  
Basic earnings per common share$3.03   $3.17   $2.97  
Diluted earnings per common share$3.02   $3.16   $2.95  
Basic weighted average shares outstanding30,510   30,511   31,393  
Diluted weighted average shares outstanding30,571   30,594   31,534  

See accompanying notes to the consolidated financial statements.

Ebix, Inc. and Subsidiaries
Consolidated Balance Sheets
 December 31,
 2020 2019
 (In thousands, except share and
per share amounts)
Current assets:   
Cash and cash equivalents105,035   73,228  
Receivables from service providers4,711   25,607  
Short-term investments25,019   4,443  
Restricted cash8,519   35,051  
Fiduciary funds - restricted4,106   4,966  
Trade accounts receivable, less allowances of 22,691 and 21,696, respectively142,847   153,565  
Other current assets71,661   67,074  
Total current assets361,898   363,934  
Property and equipment, net52,521   48,421  
Right-of-use assets12,372   19,544  
Goodwill949,037   952,404  
Intangibles, net50,880   46,955  
Indefinite-lived intangibles21,647   42,055  
Capitalized software development costs, net19,389   19,183  
Deferred tax assets, net63,402   69,227  
Other assets38,707   29,896  
Total assets$1,569,853   $1,591,619  
Current liabilities:   
Accounts payable and accrued liabilities$64,764   $84,735  
Payables to service agents5,281   12,196  
Accrued payroll and related benefits11,792   8,755  
Working capital facilities16,643   28,352  
Fiduciary funds - restricted4,106   4,966  
Short-term debt894   1,167  
Contingent liability for earn-out acquisition consideration   8,621  
Current portion of long-term debt, net of deferred financing costs of $920 and $575
thousand, respectively
23,621   22,091  
Contract liabilities32,898   28,712  
Lease liability3,905   5,955  
Other current liabilities27,486   29,335  
Total current liabilities191,390   234,885  
Revolving line of credit439,402   438,037  
Long-term debt, less current portion, net of deferred financing costs of $1,062 and $1,534,
232,140   254,467  
Contingent liability for earn-out acquisition consideration   1,474  
Contract liabilities8,033   8,541  
Lease liability8,540   13,196  
Deferred tax liability, net1,235   1,235  
Other liabilities29,009   40,339  
Total liabilities909,749   992,174  
Commitments and Contingencies, Note 5   
Stockholders’ equity:   
Preferred stock, $.10 par value, 500,000 shares authorized, no shares issued and outstanding
at December 31, 2020 and 2019
Series Y Convertible preferred stock, $0.10 par value, 350,000 shares authorized, no shares
issued and outstanding at December 31, 2020 and no shares authorized, issued and
outstanding at December 31, 2019
Common stock, $.10 par value, 220,000,000 shares authorized, 30,515,334 issued and
outstanding at December 31, 2020 and 30,492,044 issued and outstanding at December 31,
3,052   3,049  
Additional paid-in capital11,126   6,960  
Retained earnings700,304   618,503  
Accumulated other comprehensive loss(101,503)  (78,398) 
Total Ebix, Inc. stockholders’ equity612,979   550,114  
Noncontrolling interest (see Note 17)47,125   49,331  
Total stockholders' equity660,104   599,445  
Total liabilities and stockholders’ equity$1,569,853   $1,591,619  

See accompanying notes to the consolidated financial statements.

Ebix, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
 Year Ended December 31,
 2020 2019 2018
 (In thousands)
Cash flows from operating activities:     
Net income attributable to Ebix, Inc.$92,377   $96,720   $93,139  
Net (loss) income attributable to noncontrolling interest(3,550)  (6,149)  (58) 
Adjustments to reconcile net income to cash provided by operating activities:     
Depreciation and amortization13,738   14,468   11,292  
Provision for doubtful accounts1,749   12,325   3,571  
Provision for deferred taxes, net of acquisitions and effects of currency translation5,114   (15,525)  (13,043) 
Unrealized foreign exchange losses   1,104   606  
Amortization of right-of-use assets6,100   7,144     
Amortization of capitalized software development costs3,367   2,696   2,233  
Share-based compensation4,792   3,397   2,811  
Reduction of acquisition earn-out contingent liability(3,105)  (16,543)  (1,391) 
Cash paid for acquisition earn-out(6,453)     (3,831) 
Intangible asset impairment6,168        
Changes in current assets and liabilities, net of acquisitions:     
Accounts receivable3,258   (22,977)  15,839  
Receivables from service providers20,896   10,950   (36,557) 
Payables to service agents(6,915)  (13,455)  25,651  
Other assets(10,487)  (8,351)  (8,486) 
Accounts payable and accrued expenses(14,569)  (19,624)  (11,787) 
Accrued payroll and related benefits2,100   (661)  (788) 
Lease liabilities(5,700)  (6,878)  (360) 
Reserve for potential uncertain income tax return positions   (95)  149  
Other liabilities(12,204)  30,396   13,205  
Contract liabilities3,680   (8,149)  (8,740) 
Net cash provided by operating activities100,356   60,793   83,455  
Cash flows from investing activities:     
Cash paid for acquisitions, net of cash acquired(14,276)  (105,466)  (232,557) 
Cash (paid to) received from Paul Merchants for 10% stake in MTSS
combined business and other investment
   (5,348)  4,996  
Maturities (purchases) of marketable securities(20,964)  27,015   (4,087) 
Capitalized software development costs(4,229)  (7,989)  (8,079) 
Capital expenditures(5,337)  (4,908)  (8,032) 
Net cash used in investing activities(44,806)  (96,696)  (247,759) 
Cash flows from financing activities:     
Proceeds from / (payment) to revolving line of credit, net1,364   13,500   150,008  
Proceeds from term loan      175,500  
Principal payments on term loan obligation(20,711)  (15,063)  (10,016) 
Payments on short-term notes, net   6,450   (8,341) 
Working capital facilities(10,927)  19,079   (8,094) 
Repurchase of common stock   (12,952)  (40,820) 
Payments of long term debt(271)  (686)  (80) 
Payments for capital lease obligations(210)     (6) 
Proceeds from exercise of common stock options636      439  
Forfeiture of certain shares to satisfy exercise costs and the recipients
income tax obligations related to stock options exercised and restricted
stock vested
(2,589)  (230)  (467) 
Dividends paid(9,245)  (9,193)  (9,316) 
Net cash (used) provided by financing activities(41,953)  905   248,807  
Effect of foreign exchange rates on cash and cash equivalents(4,753)  (3,314)  (5,689) 
Net change in cash and cash equivalents, and restricted cash8,844   (38,312)  78,814  
Cash and cash equivalents, and restricted cash at the beginning of the year111,369   149,681   70,867  
Cash and cash equivalents, and restricted cash at the end of the year$120,213   $111,369   $149,681  
Supplemental disclosures of cash flow information:     
Interest paid29,498   41,143   25,690  
Income taxes paid21,321   24,041   10,149  

See accompanying notes to the consolidated financial statements.

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