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

  Year Ended
December 31, 2012
Year Ended
December 31, 2011

(in thousands)

(Unaudited) (Audited)
Cash flows from operating activities:

Net income $70,569 $71,378
Adjustments to reconcile net income to cash
provided by operating activities:


Depreciation and amortization 9,155 7,514
Provision for doubtful accounts 442 976
Provision for deferred taxes (4,760) (5,727)
Unrealized foreign exchange (gain)/losses on f
orward contracts
-- 2,346
Unrealized foreign exchange (gain)/losses 443 (5,795)
Unrealized gain on put option (191) (537)
Share-based compensation 2,083 2,205
Debt discount amortization on convertible debt 39 21
Reduction of acquisition earn-out contingent liability (699) (2,847)
Changes in current assets and liabilities,
net of acquisitions:


Accounts receivable (2,023) (2,903)
Other assets (371) 1,647
Accounts payable and accrued expenses 730 1,525
Accrued payroll and related benefits (594) (532)
Deferred rent (132) (261)
Other liabilities (2,384) 836
Deferred revenue (12) 796
Net cash provided by operating activities 72,295 70,642
Cash flows from investing activities:

Investment in BSI, net of cash acquired (992) --
Investment in Taimma, net of cash acquired (5,003) --
Investment in Fintechnix, net of cash acquired (4,713) --
Investment in PlanetSoft, net of cash acquired (35,078) --
Investment in TriSystems, net of cash acquired (9,277) --
Investment in Curepet, Inc. (2,000) --
Investment in ADAM, net of cash acquired -- 3,529
Investment in MCN, net of cash acquired (1,537) (381)
Investment in USIX, net of cash acquired (1,466) --
Investment in Health Connect Systems,
net of cash acquired
(2,000) (17,945)
Investment in Confirmnet, net of cash acquired -- (184)
Purchases of marketable securities (785) (3,098)
Maturities of marketable securities 1,466 7,600
Investment in Facts, net of cash acquired (25) (12)
Capital expenditures (1,965) (2,829)
Net cash used in investing activities (63,375) (13,320)
Cash flows from financing activities:

Proceeds from / (Repayment) to line of credit, net 6,090 6,750
Proceeds from term loan 45,000 16,250
Proceeds from the issuance of note payable 161 --
Principal payments on term loan obligation (19,125) (6,407)
Repurchase of common stock (18,374) (63,659)
Settlement on conversion of convertible debt -- (6,761)
Payments of long term debt (600) --
Payments for capital lease obligations (284) (300)
Excess tax benefit from share-based compensation 1,044 644
Proceeds from exercise of common stock options 1,020 51
Forfeiture of certain shares to satisfy exercise costs
and the recipients income tax obligations related to
stock options exercised and restricted stock vested
(992) --
Dividends paid (7,034) (1,461)
Net cash provided (used) by financing activities 6,906 (54,893)
Effect of foreign exchange rates on cash and cash equivalents $(3,073) $(2,130)
Net change in cash and cash equivalents 12,753 299
Cash and cash equivalents at the beginning of the year $23,696 $23,397
Cash and cash equivalents at the end of the year $36,449 $23,696
Supplemental disclosures of cash flow information:

Interest paid 1,350 710
Income taxes paid 8,590 3,796

Investor Contacts

EBIX Inc
5 Concourse Parkway, Suite 3200, Atlanta, Georgia 30328
Ph: 678-281-2043 Fax: 678-281-2019
www.ebix.com
IR@ebix.com