Ebix, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

 

Year Ended December 31, 2017

Year Ended December 31, 2016

Year Ended December 31, 2015

 

(in thousands)

Cash flows from operating activities:

 

 

 

Net income attributable to Ebix, Inc.

$ 100,618

$ 93,847

$ 79,533

Net income attributable to noncontrolling interest

1,965

447

-

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

 

 

 

Depreciation and amortization

11,123

10,746

10,634

Provision for doubtful accounts

1,713

1,515

3,111

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

(13,667)

(6,410)

(10,143)

Unrealized foreign exchange (gain)/losses

1,387

32

(1,743)

Gain on investment interest in IHC/Ebix joint venture

-

(1,162)

-

Amortization of capitalized software development costs

2,175

1,116

-

Share-based compensation

2,818

2,794

1,821

Debt discount amortization on convertible debt

-

-

17

Reduction of acquisition earn-out contingent liability

(164)

(1,344)

(1,533)

Reduction of rent expense as a result of purchase accounting adjustment

(948)

-

-

Changes in current assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

(34,245)

(12,659)

(7,320)

Other assets

(2,133)

(1,034)

(3,834)

Accounts payable and accrued expenses

8,906

(3,703)

(19,895)

Accrued payroll and related benefits

(3,979)

170

(60)

Deferred rent

(413)

(234)

(656)

Reserve for potential uncertain income tax return positions

5,879

490

95

Liability – securities litigation settlement

-

-

(690)

Other liabilities

252

(3,039)

1,111

Deferred revenue

(4,480)

2,176

(1,762)

Net cash provided by operating activities

76,807

83,748

48,686

Cash flows from investing activities:

 

 

 

Investment in Paul Merchants

(37,398)

-

-

Investment in Via, net of cash acquired

(67,835)

-

-

Investment in Wall Street

(6,970)

-

-

Investment in YouFirst, net of cash acquired

(9,657)

-

-

Investment in beBetter

(1,000)

-

-

Investment in ItzCash, net of cash acquired

(69,301)

-

-

Payment of acquisition earn-out contingency, Qatarlyst

(1,921)

-

-

Funding of escrow account for possible future contingent earn-out payment related to business acquisition

(4,040)

-

-

Investment in Hope Health

-

(1,643)

-

Investment in Wdev, 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 EbixHealth JV, net of cash acquired

-

(696)

(6,000)

Purchases of marketable securities

-

(2,115)

(1,435)

Maturities of marketable securities

1,201

-

-

Capitalized software development costs

(2,805)

(3,988)

(3,489)

Capital expenditures

(7,385)

(5,977)

(13,994)

Net cash used in investing activities

(207,111)

(20,739)

(37,393)

Cash flows from financing activities:

 

 

 

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

120,500

(52,436)

86,000

Proceeds from term loan

20,000

125,000

-

Principal payments on term loan obligation

(13,000)

(6,250)

(642)

Cash overdraft

6,162

-

-

Repurchase of common stock

(45,732)

(59,784)

(81,653)

Payments of long term debt

-

(600)

-

Payments for capital lease obligations

(11)

(5)

(10)

Excess tax benefit from share-based compensation

-

-

463

Proceeds from exercise of common stock options

52

824

2,209

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

(398)

(998)

(2,202)

Dividends paid

(9,545)

(9,829)

(10,472)

Net cash provided (used) by financing activities

78,028

(4,078)

(6,307)

Effect of foreign exchange rates on cash and cash equivalents

$ 2,053

$ (1,992)

$ (107)

Net change in cash and cash equivalents

(50,223)

56,939

4,879

Cash and cash equivalents at the beginning of the year

$ 114,118

$ 57,179

$ 52,300

Cash and cash equivalents at the end of the year

$ 63,895

$ 114,118

$ 57,179

Interest paid

12,552

7,219

5,379

Income taxes paid

10,426

16,634

28,637