Revenue of $52.6 Million, up 20% Year-Over-Year
ATLANTA, GA – May 10, 2013 – Ebix, Inc., (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today reported results for the fiscal first quarter ended March 31, 2013.
Ebix delivered the following results for the first quarter of 2013:
Revenues: Total Q1 2013 revenue was $52.6 million, an increase of 20% on a year-over-year basis, as compared to Q1 2012 revenue of $43.8 million.
Earnings per Share: Q1 2013 diluted earnings per share rose 13% year-over-year to $0.45, as compared to $0.40 in the first quarter of 2012. For purposes of the Q1 2013 EPS calculation, there was an average of 38.8 million diluted shares outstanding during the quarter, as compared to 39.5 million diluted shares outstanding in Q1 2012.
Operating Cash: Cash generated from operations Q1 2013 was $14.3 million, up 5% year-over-year as compared to $13.7 million in Q1 2012.
Margins: Operating margins for Q1 2013 were lower at 37% as compared to 42% for Q1 2012. The operating margins in Q1 2013 were impacted by the Company incurring certain onetime legal and travel costs associated with the recently announced merger with an affiliate of Goldman Sachs, and the impact of lower initial operating margins from some of the businesses acquired in 2012, as compared to our existing operations. Furthermore, in Q1 of 2012, the Company realized a net benefit in the approximate amount of $971 thousand related to a termination fee received by the Company in connection with a failed business acquisition.
Diversified Revenue Base: Ebix continued to have highly diversified revenue streams across thousands of clients, with the largest client accounting for only 2.5% of the Company’s Q1 2013 revenues.
Channel Revenues: The Exchange channel continued to be the largest channel for Ebix accounting for 79% of the Company’s Q1 2013 Revenues as compared to 79% in Q1 2012.
Net Income: Q1 2013 net income was $17.3
million, an 11% increase on a year-over-year basis, as compared to Q1 2012 net
income of $15.7 million.
About Ebix, Inc.
With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India and Canada, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of insurance and technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Company’s website at www.ebix.com
SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS
The information contained in this Press Release contains forward-looking statements and information within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. This information includes assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company’s products by the market, and management’s plans and objectives. In addition, certain statements included in this and our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us or with our approval, which are not statements of historical fact, are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “seeks,” “plan,” “project,” “continue,” “predict,” “will,” “should,” and other words or expressions of similar meaning are intended by the Company to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are found at various places throughout this report and in the documents incorporated herein by reference. These statements are based on our current expectations about future events or results and information that is currently available to us, involve assumptions, risks, and uncertainties, and speak only as of the date on which such statements are made.
Our actual results may differ materially from those expressed or implied in these forward-looking statements. Factors that may cause such a difference, include, but are not limited to those discussed in Part I, Item IA, “Risk Factors”, below, as well as: the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties; pricing and other competitive pressures and the Company’s ability to gain or maintain share of sales as a result of actions by competitors and others; changes in estimates in critical accounting judgments; changes in or failure to comply with laws and regulations, including accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax interpretations) in domestic or foreign jurisdictions; exchange rate fluctuations and other risks associated with investments and operations in foreign countries (particularly in Australia and India wherein we have significant operations); equity markets, including market disruptions and significant interest rate fluctuations, which may impede our access to, or increase the cost of, external financing; and international conflict, including terrorist acts.
Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors, or to publicly announce the results of, or changes to any of the forward-looking statements contained herein to reflect future events, developments, changed circumstances, or for any other reason.
Readers should carefully review the disclosures and the risk factors described in this and other documents we file from time to time with the SEC, including future reports on Forms 10-Q and 8-K, and any amendments thereto.
You may obtain our SEC filings at our website, www.ebix.com under the “Investor Information” section, or over the Internet at the SEC’s web site, www.sec.gov.