Ebix Announces First Quarter Fiscal Year 2021 Financial Results
Ebix, Inc. (NASDAQ: EBIX) reported a remarkable revenue increase of 110% year-over-year, totaling $290 million for Q1 2021. Despite challenges from COVID-19, the company achieved a GAAP operating income of $31.2 million and a non-GAAP operating income of $35.6 million. GAAP diluted EPS was $0.70, with non-GAAP diluted EPS at $0.84. The results reflect strong growth driven by its exchanges, particularly EbixCash, which accounted for 95% of revenues. Ebix maintains strong liquidity with over $130 million in cash and investments, highlighting resilience amid ongoing global challenges.
- Record revenue of $290 million for Q1 2021, a 110% increase year-over-year.
- EBITDA growth with non-GAAP operating income at $35.6 million.
- Strong liquidity position with over $130 million in cash and short-term investments.
- 95% of revenues derived from exchanges, indicating a robust business model.
- GAAP operating income decreased by 9% year-over-year due to COVID-19 impact.
- GAAP net income fell 13% to $21.6 million compared to $24.7 million in Q1 2020.
- Cash generated from operations decreased to $8.6 million from $29.6 million in Q1 2020.
JOHNS CREEK, Ga., May 17, 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 announced the following results for the quarter ended March 31, 2021:
- Record Revenues of
$290 million - GAAP operating income of
$31.2 million and Non-GAAP operating income of$35.6 million - Diluted EPS (GAAP) of
$0.70 and Non-GAAP diluted EPS of$0.84
Ebix will host a conference call to review its results today at 11:00 a.m. EDT (details below).
“These have been difficult times, with COVID-19 resulting in increased headwinds on our businesses in Q1 2021. Despite these negative impacts and the traditional Q1 seasonal low point for consulting business post the holidays, the Company is still reporting Q1 2021 non-GAAP EPS of
Ebix delivered the following results for the first quarter of 2021:
Revenue: Q1 2021 revenue increased
Exchanges, including the EbixCash and our worldwide insurance exchanges, continued to be Ebix’s largest channel, accounting for
| (dollar amounts in thousands) | |||||||
| Channel | Q1 2021 | Q1 2020 | Change | ||||
| EbixCash Exchanges | $ | 232,552 | $ | 77,855 | +199 | % | |
| Insurance Exchanges | 43,235 | 44,001 | -2 | % | |||
| RCS | 14,266 | 16,020 | -11 | % | |||
| Total Revenue | $ | 290,053 | $ | 137,876 | +110 | % | |
| Total Revenue on Constant Currency Basis | $ | 290,686 | $ | 137,876 | +111 | % | |
Operating Income and Operating Cash: GAAP Operating income for Q1 2021 of
Cash generated from operations in Q1 2021 was
Earnings per Share: Q1 2021 GAAP diluted earnings per share increased
Excluding the one-time, non-recurring items, non-GAAP diluted earnings per share for Q1 2021 was
Net Income: Q1 2021 GAAP net income decreased
Q2 2021 Diluted Share Count: As of today, Ebix expects its diluted share count for Q2 2021 to be approximately 30.8 million.
Dividend: Ebix paid its regular quarterly dividend of
Ebix Chairman, President and CEO Robin Raina said, “Our first quarter revenues and operating income are traditionally lower than the fourth quarter of the preceding year, primarily because of our Continuing Medical Education (CME) business having a seasonal increase in the fourth quarter. Q1 2021 was no different with CME revenues decreasing by approximately
Steve Hamil, EVP and Global CFO said, “Despite the continued impact of COVID-19 on our business and worsening COVID-19 conditions in India recently, Ebix maintains a strong liquidity position, with over
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.
Q1 2021
| Net Income | Diluted EPS | |||||
| Q1 2021 GAAP Net Income | ||||||
| Q1 2021 GAAP Operating Income | ||||||
| Non-GAAP Adjustments: | ||||||
| Amortization of Intangibles (1) | ||||||
| Stock-Based Compensation (1) | ||||||
| One-time Legal Costs (2) | ||||||
| Income Tax Effects of Non–GAAP Adjustments (3) | ( | ) | ( | ) | ||
| Total Non-GAAP Adjustments (Operating Income) | ||||||
| Total Non-GAAP Adjustments (Net Income) | ||||||
| First Quarter 2021 Non-GAAP Net Income | ||||||
| First Quarter 2021 Non-GAAP Operating Income | ||||||
(1) Adjustments related to amortization of acquired intangibles and stock-based compensation recognized during the periods for GAAP purposes.
(2) Non-recurring legal costs recorded during the periods for GAAP purposes.
(3) Non-GAAP adjustment is based on the Q1 2021 effective tax rate, 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 (loss), non-GAAP operating income and non-GAAP Earnings per share. Non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP EPS from operations exclude amortization of intangibles, stock-based compensation, as well as other non-cash items and certain non-recurring expenses that are not associated with our ongoing operating business activities. Non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP EPS from operations also exclude the effect of any restructuring, acquisition, integration & other expenses, legal expenses associated with such acquisitions or legal expenses associated with non-operating activities, any one-time tax benefits, and any foreign currency effects of intercompany activities that have no impact on our ongoing operating business.
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: | Monday, May 17, 2020 at 11:00 a.m. EDT |
| Call Dial-In: | +1-877-837-3909 or 1-973-409-9690; Call ID # 9598823 |
| Live Audio Webcast: | www.ebix.com/webcast |
| Audio Replay URL: | www.ebix.com/result_21_Q1 after 2:00 p.m. EDT on May 17th |
About Ebix, Inc.
With 150+ 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 India and Association of Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in the areas of domestic and international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, software solutions for lending, wealth management, travel, bus exchanges and insurance 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
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,” “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”); 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
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
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2021 | 2020 | |||||||
| Operating revenue | $ | 290,053 | $ | 137,876 | ||||
| Operating expenses: | ||||||||
| Cost of services provided | 220,358 | 57,457 | ||||||
| Product development | 9,545 | 9,417 | ||||||
| Sales and marketing | 3,827 | 3,804 | ||||||
| General and administrative, net | 21,337 | 29,244 | ||||||
| Amortization and depreciation | 3,800 | 3,641 | ||||||
| Total operating expenses | 258,867 | 103,563 | ||||||
| Operating income | 31,186 | 34,313 | ||||||
| Interest income | 8 | 54 | ||||||
| Interest expense | (8,079 | ) | (9,237 | ) | ||||
| Non-operating loss | (1 | ) | (19 | ) | ||||
| Foreign currency exchange (loss) gain | (625 | ) | 618 | |||||
| Income before income taxes | 22,489 | 25,729 | ||||||
| Income tax expense | (1,202 | ) | (1,284 | ) | ||||
| Net income including noncontrolling interest | 21,287 | 24,445 | ||||||
| Net loss attributable to noncontrolling interest | (304 | ) | (278 | ) | ||||
| Net income attributable to Ebix, Inc. | $ | 21,591 | 24,723 | |||||
| Basic earnings per common share attributable to Ebix, Inc. | $ | 0.71 | 0.81 | |||||
| Diluted earnings per common share attributable to Ebix, Inc. | $ | 0.70 | 0.81 | |||||
| Basic weighted average shares outstanding | 30,558 | 30,476 | ||||||
| Diluted weighted average shares outstanding | 30,731 | 30,683 | ||||||
Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
| March 31, 2021 | December 31, 2020 | ||||||
| ASSETS | (Unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 99,578 | $ | 105,035 | |||
| Receivables from service providers | 2,436 | 4,711 | |||||
| Short-term investments | 22,825 | 25,019 | |||||
| Restricted cash | 8,114 | 8,519 | |||||
| Fiduciary funds - restricted | 2,887 | 4,106 | |||||
| Trade accounts receivable, less allowances of | 146,568 | 142,847 | |||||
| Other current assets | 78,816 | 71,661 | |||||
| Total current assets | 361,224 | 361,898 | |||||
| Property and equipment, net | 52,892 | 52,521 | |||||
| Right-of-use assets | 11,376 | 12,372 | |||||
| Goodwill | 946,312 | 949,037 | |||||
| Intangibles, net | 53,258 | 50,880 | |||||
| Indefinite-lived intangibles | 16,647 | 21,647 | |||||
| Capitalized software development costs, net | 20,222 | 19,389 | |||||
| Deferred tax asset, net | 66,406 | 63,402 | |||||
| Other assets | 37,946 | 38,707 | |||||
| Total assets | $ | 1,566,283 | $ | 1,569,853 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 53,299 | $ | 64,764 | |||
| Payables to service agents | 3,666 | 5,281 | |||||
| Accrued payroll and related benefits | 10,555 | 11,792 | |||||
| Working capital facility | 12,024 | 16,643 | |||||
| Fiduciary funds - restricted | 2,887 | 4,106 | |||||
| Short-term debt | 833 | 894 | |||||
| Current portion of long term debt and financing lease obligations, net of deferred financing costs of | 23,571 | 23,621 | |||||
| Contract liabilities | 37,609 | 32,898 | |||||
| Lease liability | 3,572 | 3,905 | |||||
| Other current liabilities | 29,879 | 27,486 | |||||
| Total current liabilities | 177,895 | 191,390 | |||||
| Revolving line of credit | 439,402 | 439,402 | |||||
| Long term debt and financing lease obligations, less current portion, net of deferred financing costs of | 226,625 | 232,140 | |||||
| Contract liabilities | 7,804 | 8,033 | |||||
| Lease liability | 7,911 | 8,540 | |||||
| Deferred tax liability, net | 1,235 | 1,235 | |||||
| Other liabilities | 28,902 | 29,009 | |||||
| Total liabilities | 889,774 | 909,749 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Series Y Convertible preferred stock, | — | — | |||||
| Common stock, | 3,056 | 3,052 | |||||
| Additional paid-in capital | 12,480 | 11,126 | |||||
| Retained earnings | 719,574 | 700,304 | |||||
| Accumulated other comprehensive loss | (105,422 | ) | (101,503 | ) | |||
| Total Ebix, Inc. stockholders’ equity | 629,688 | 612,979 | |||||
| Noncontrolling interest | 46,821 | 47,125 | |||||
| Total stockholders’ equity | 676,509 | 660,104 | |||||
| Total liabilities and stockholders’ equity | $ | 1,566,283 | $ | 1,569,853 | |||
Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Three Months Ended | |||||||
| March 31, | |||||||
| 2021 | 2020 | ||||||
| Cash flows from operating activities: | |||||||
| Net income attributable to Ebix, Inc. | $ | 21,591 | $ | 24,723 | |||
| Net loss attributable to noncontrolling interest | (304 | ) | (278 | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Amortization and depreciation | 3,800 | 3,641 | |||||
| Benefit for deferred taxes | (3,056 | ) | (44 | ) | |||
| Share based compensation | 1,358 | 1,126 | |||||
| Benefit for doubtful accounts | (2,060 | ) | (618 | ) | |||
| Amortization of right-of-use assets | 1,295 | 1,797 | |||||
| Unrealized foreign exchange gain | — | (419 | ) | ||||
| Amortization of capitalized software development costs | 813 | 833 | |||||
| Changes in assets and liabilities, net of effects from acquisitions: | |||||||
| Accounts receivable | (2,339 | ) | 9,687 | ||||
| Receivables from service providers | 2,275 | 12,184 | |||||
| Payables to service agents | (1,615 | ) | (3,476 | ) | |||
| Other assets | (6,768 | ) | (4,035 | ) | |||
| Accounts payable and accrued expenses | (11,277 | ) | (9,755 | ) | |||
| Accrued payroll and related benefits | (1,076 | ) | 1,425 | ||||
| Contract liabilities | 4,517 | 1,980 | |||||
| Lease liabilities | (944 | ) | (1,596 | ) | |||
| Reserve for potential uncertain income tax return positions | — | 69 | |||||
| Other liabilities | 2,368 | (7,666 | ) | ||||
| Net cash provided by operating activities | 8,578 | 29,578 | |||||
| Cash flows from investing activities: | |||||||
| Cash paid for acquisitions, net of cash acquired | — | (1,858 | ) | ||||
| Capitalized software development costs | (1,683 | ) | (2,089 | ) | |||
| Maturities (purchases) of marketable securities | 2,335 | (5,105 | ) | ||||
| Capital expenditures | (270 | ) | (557 | ) | |||
| Net cash provided by (used in) investing activities | 382 | (9,609 | ) | ||||
| Cash flows from financing activities: | |||||||
| Principal payments of term loan obligation | (5,648 | ) | (3,765 | ) | |||
| Proceeds from the exercise of 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 | — | (1,841 | ) | ||||
| Dividend payments | (2,321 | ) | (2,301 | ) | |||
| Payments of debt obligations | (62 | ) | (203 | ) | |||
| Payments of working capital facility, net | (4,589 | ) | (24,693 | ) | |||
| Payments of financing lease obligations | (47 | ) | — | ||||
| Net cash used in financing activities | (12,667 | ) | (32,167 | ) | |||
| Effect of foreign exchange rates on cash | (1,379 | ) | (10,173 | ||||
| Net change in cash and cash equivalents, and restricted cash | (5,086 | ) | (22,371 | ) | |||
| Cash and cash equivalents, and restricted cash at the beginning of the period | 120,213 | 111,369 | |||||
| Cash and cash equivalents, and restricted cash at the end of the period | $ | 115,127 | $ | 88,998 | |||
| Supplemental disclosures of cash flow information: | |||||||
| Interest paid | $ | 7,505 | $ | 8,820 | |||
| Income taxes paid | $ | 9,695 | $ | 1,086 | |||
FAQ
What were Ebix's Q1 2021 earnings results?
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