Ebix, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

 

Year Ended December 31, 2014 Year Ended December 31, 2013 Year Ended December 31, 2012
  (in thousands)
  Unaudited Audited Audited
Cash flows from operating activities:      
Net income $63,558 $59,274 $70,569
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 9,681 10,107 9,155
Provision for doubtful accounts 1,600 1,147 442
Provision for deferred taxes (1,966) (10,368) (7,505)
Unrealized foreign exchange (gain)/losses (741) (237) 443
Unrealized gain on put option (296) (341) (191)
Share-based compensation 1,792 1,941 2,083
Debt discount amortization on convertible debt 35 42 39
Reduction of acquisition earn-out contingent liability (10,237) (10,253) (699)
Changes in current assets and liabilities, net of acquisitions:      
Accounts receivable (1,530) (3,347) (2,023)
Other assets (4,765) 80 (371)
Accounts payable and accrued expenses 14,670 1,135 730
Accrued payroll and related benefits 1,811 (1,866) (594)
Deferred rent (324) (87) (132)
Reserve for potential uncertain income tax return positions (9,723) 6,817 2,745
Liability – securities litigation settlement (3,528) 4,226 -
Other liabilities (221) (225) (2,384)
Deferred revenue (1,306) (983) (12)
Net cash provided by operating activities 58,510 57,062 72,295
Cash flows from investing activities:      
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) - -
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)
Payment of acquisition earn-out contingency, MCN - - (1,537)
Investment in Qatarlyst, net of cash acquired - (4,740) -
Payment of acquisition earn-out contingency, USIX   (727) (1,466)
Payment of acquisition earn-out contingency, Taimma (2,250) (2,250) -
Payment of acquisition earn-out contingency, Health Connect Systems - - (2,000)
Payment of acquisition earn-out contingency, Trisystems (563) - -
Purchases of marketable securities - - (785)
Maturities of marketable securities 495 107 1,466
Investment in Facts - - (25)
Capital expenditures (16,277) (1,230) (1,965)
Net cash used in investing activities (77,786) (8,840) (63,375)
Cash flows from financing activities:      
Proceeds from / (Repayment) to line of credit, net 97,625 (15,000) 6,090
Proceeds from term loan - - 45,000
Proceeds from the issuance of note payable - - 161
Principal payments on term loan obligation (31,938) (8,938) (19,125)
Repurchase of common stock (31,854) (2,492) (18,374)
Payments of long term debt (345) (665) (600)
Payments for capital lease obligations (231) (277) (284)
Excess tax benefit from share-based compensation (3,200) 3,237 1,044
Proceeds from exercise of common stock options 788 2,161 1,020
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested (41) (1,681) (992)
Shares reacquired in connection with put option (3,535) - -
Dividends paid (11,406) (2,794) (7,034)
Net cash provided (used) by financing activities 15,863 (26,449) 6,906
Effect of foreign exchange rates on cash and cash equivalents $(961) $(1,548) $(3,073)
Net change in cash and cash equivalents (4,374) 20,225 12,753
Cash and cash equivalents at the beginning of the year $56,674 $36,449 $23,696
Cash and cash equivalents at the end of the year $52,300 $56,674 $36,449
Supplemental disclosures of cash flow information:      
Interest paid 1,290 1,169 1,350
Income taxes paid 11,433 13,779 8,590