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Ebix Reports Record Revenues of $1.1 Billion, 2022 Operating Income of $120.3 Million with 1% YoY Growth, Operating Cash Flow of $32.5 Million in Q4 2022 and $77.6 Million for Fiscal Year 2022, with 12% YOY Growth

Ebix, Inc.
Ebix, Inc.

JOHNS CREEK, Ga., March 15, 2023 (GLOBE NEWSWIRE) -- 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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