Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows

(In thousands)
(Unaudited)

 

Year Ended December 31, 2016

 

Year Ended December 31, 2015

 

Year Ended December 31, 2014

 

(in thousands)

Cash flows from operating activities:

 

 

 

 

 

Net income attributable to Ebix, Inc.

$

93,847

 

 

$

79,533

 

 

$

63,558

 

Net income attributable to noncontrolling interest

447

 

 

 

 

 

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

 

 

 

 

 

Depreciation and amortization

10,746

 

 

10,634

 

 

9,681

 

Provision for doubtful accounts

1,515

 

 

3,111

 

 

1,600

 

Provision for deferred taxes, net of acquisitions and effects of currency translation

(6,410

)

 

(10,143

)

 

(1,966

)

Unrealized foreign exchange (gain)/losses

32

 

 

(1,743

)

 

(741

)

Gain on investment interest in IHC/Ebix joint venture

(1,162

)

 

 

 

 

Amortization of capitalized software development costs

1,116

 

 

 

 

 

Unrealized gain on put option

 

 

 

 

(296

)

Share-based compensation

2,794

 

 

1,821

 

 

1,792

 

Debt discount amortization on convertible debt

 

 

17

 

 

35

 

Reduction of acquisition earn-out contingent liability

(1,344

)

 

(1,533

)

 

(10,237

)

Changes in current assets and liabilities, net of acquisitions:

 

 

 

 

 

Accounts receivable

(12,659

)

 

(7,320

)

 

(1,530

)

Other assets

(1,034

)

 

(3,834

)

 

(4,765

)

Accounts payable and accrued expenses

(3,703

)

 

(19,895

)

 

14,670

 

Accrued payroll and related benefits

170

 

 

(60

)

 

1,811

 

Deferred rent

(234

)

 

(656

)

 

(324

)

Reserve for potential uncertain income tax return positions

490

 

 

95

 

 

(9,723

)

Liability – securities litigation settlement

 

 

(690

)

 

(3,528

)

Other liabilities

(3,039

)

 

1,111

 

 

(221

)

Deferred revenue

2,176

 

 

(1,762

)

 

(1,306

)

Net cash provided by operating activities

83,748

 

 

48,686

 

 

58,510

 

Cash flows from investing activities:

 

 

 

 

 

Investment in IHAC, Inc., d.b.a Hope Health ("Hope")

(1,643

)

 

 

 

 

Investment in Wdev Solucoes em Technologia SA, net of cash acquired

(6,320

)

 

 

 

 

Investment in Via Media Health, net of cash acquired

 

 

(1,000

)

 

 

Investment in P.B. Systems, net of cash acquired

 

 

(11,475

)

 

 

Investment in Ebix Health Solutions, LLC Joint Venture, net of cash acquired

(696

)

 

(6,000

)

 

 

Investment in CurePet, net of cash acquired

 

 

 

 

3

 

Investment in Healthcare Magic, net of cash acquired

 

 

 

 

(5,856

)

Investment in Vertex, net of cash acquired

 

 

 

 

(27,547

)

Investment in Oakstone, net of cash acquired

 

 

 

 

(23,791

)

Investment in I3, net of cash acquired

 

 

 

 

(2,000

)

Payment of acquisition earn-out contingency, Taimma

 

 

 

 

(2,250

)

Payment of acquisition earn-out contingency, Trisystems

 

 

 

 

(563

)

Purchases of marketable securities

(2,115

)

 

(1,435

)

 

 

Maturities of marketable securities

 

 

 

 

495

 

Capitalized software development costs

(3,988

)

 

(3,489

)

 

 

Capital expenditures

(5,977

)

 

(13,994

)

 

(16,277

)

Net cash used in investing activities

(20,739

)

 

(37,393

)

 

(77,786

)

Cash flows from financing activities:

 

 

 

 

 

Proceeds from / (Repayment) to line of credit, net

(52,436

)

 

86,000

 

 

97,625

 

Proceeds from term loan

125,000

 

 

 

 

 

Principal payments on term loan obligation

(6,250

)

 

(642

)

 

(31,938

)

Repurchase of common stock

(59,784

)

 

(81,653

)

 

(31,854

)

Payments of long term debt

(600

)

 

 

 

(345

)

Payments for capital lease obligations

(5

)

 

(10

)

 

(231

)

Excess tax benefit from share-based compensation

 

 

463

 

 

(3,200

)

Proceeds from exercise of common stock options

824

 

 

2,209

 

 

788

 

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

(998

)

 

(2,202

)

 

(41

)

Shares reacquired in connection with put option

 

 

 

 

(3,535

)

Dividends paid

(9,829

)

 

(10,472

)

 

(11,406

)

Net cash provided (used) by financing activities

(4,078

)

 

(6,307

)

 

15,863

 

Effect of foreign exchange rates on cash and cash equivalents

$

(1,992

)

 

$

(107

)

 

$

(961

)

Net change in cash and cash equivalents

56,939

 

 

4,879

 

 

(4,374

)

Cash and cash equivalents at the beginning of the year

$

57,179

 

 

$

52,300

 

 

$

56,674

 

Cash and cash equivalents at the end of the year

$

114,118

 

 

$

57,179

 

 

$

52,300

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

Interest paid

7,219

 

 

5,379

 

 

1,290

 

Income taxes paid

16,634

 

 

28,637

 

 

11,433