Financial Statement

Three Months Ended

March 31,

Cash flows from operating activities:

Net income attributable to Ebix, Inc.

Net income attributable to noncontrolling interest

196

192

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

2,855

2,720

Benefit for deferred taxes

(850)

(165 )

Share based compensation

686

647

Provision for doubtful accounts

407

(241 )

Unrealized foreign exchange gain

(860)

(48 )

Amortization of capitalized software development costs

410

326

Reduction of acquisition earnout accruals

—

(511)

Purchase accounting adjustment

(948

—

Changes in assets and liabilities, net of effects from acquisitions:

Accounts receivable

(5,661)

(8,669)

Other assets

112

(220)

Accounts payable and accrued expenses

(7,118)

(7,563)

Accrued payroll and related benefits

(1,021)

717

Deferred revenue

382

1,258

Deferred rent

(102)

(80)

Reserve for potential uncertain income tax return positions

518

50

Other liabilities

268

(38

Net cash provided by operating activities

15,701

10,534

Cash flows from investing activities:

Capitalized software development costs

(514)

(144)

Purchases of marketable securities

(1,005)

(596)

Capital expenditures

(2,705)

(1,028)

Net cash used in investing activities

(4,224)

(1,768)

Cash flows from financing activities:

Proceeds (repayments) from revolving line of credit, net

40,000

20,000

Principal payments of term loan obligation

(3,125)

—

Repurchases of common stock

(40,517)

(14,787)

Proceeds from the exercise of stock options

52

29

Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested

(167)

(66)

Dividend payments

(2,428

(2,422 )

Payments of capital lease obligations

(1)

—

Net cash provided by (used) in financing activities

(6,186)

2,754

Effect of foreign exchange rates on cash

786

321

Net change in cash and cash equivalents

6,077

11,841

Cash and cash equivalents at the beginning of the period

114,118

57,179

Cash and cash equivalents at the end of the period

$ 120,195

$ 69,020

Supplemental disclosures of cash flow information:

Interest paid

$ 2,289

$ 1,987

Income taxes paid

$ 6,663

$ 7,015