Ebix Net Income Grows Six Percent in First Quarter; Earnings Per Share Rise Nine Percent, to $0.36, on $5.65 Million in Revenues.ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- Ebix, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : EBIX), a leading international developer and supplier of software and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. solutions to the insurance industry, today reported financial results for the first quarter of 2006. The company reported total revenue of $5.65 million for the quarter, compared to $5.90 million for the first quarter of 2005. Coupled with modest reductions in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , this resulted in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of 2006 falling slightly, to $1.18 million, from $1.21 million in the first quarter of 2005. Net income for the quarter rose six percent to $1.14 million, or $0.36 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, up from $1.07 million, or $0.33 per diluted share, in first quarter of 2005--an earnings per share growth of nine percent. Results for the first quarter of 2006 were based on 3.1 million weighted average diluted shares outstanding, as compared to 3.2 million in the first quarter of 2005. Robin Raina Raina can refer to several things:
midmost of implementing quite a few large projects. The slight reduction in revenue is due to a combination of a drop in legacy support and timing issues associated with revenue recognition of large software contracts requiring extensive customization." Raina added: "Our cash position remains strong, and in coming days we intend to follow through on our growth plans through strategic acquisitions in the insurance marketplace, and also through development of strategic initiatives in niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the sectors of insurance." About Ebix A CMMI See CMM. 5 Company, Ebix, Inc. is a leading international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. Ebix strives to work collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges. Ebix combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in , applications software, and Web and application hosting to meet the individual needs of organizations. With bases in United Kingdom, Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , the US, New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Ebix employs insurance and technology professionals who provide products, support and consultancy to more than 3,000 customers on six continents Six Continents is a large retail PLC in UK which split into Six Continents Retail known as Mitchells and Butlers plc. The hotels and soft drinks business of Six Continents PLC is now known as InterContinental Hotels Group PLC. . Ebix's focus on quality has enabled its development unit in India to be awarded Level 5 status of the Carnegie Carnegie (kärnĕg`ē, kär`nəgē), borough (1990 pop. 9,278), Allegheny co., SW Pa., an industrial suburb of Pittsburgh; inc. 1894. A steel town, it has coal mines and plants that make chemicals and electrical equipment. Mellon Software Engineering Institute's Capability Maturity Model Integrated (CMMI). Ebix has also earned ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001:2000 certification for both its development and call center units in India. For more information, visit the Company's Web site at www.ebix.com. SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. FOR FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains various forward-looking statements and information that are based on Ebix management's beliefs, as well as assumptions made by and information currently available to management. Ebix has tried to identify such forward looking statements by use of such words as "will," "expects," "intends," "anticipates," "plans," "believes" and similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those expressed in, or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by, the forward looking statements. Such risks, uncertainties and other factors include the extent to which the Ebix.com website and other new products and services can be successfully developed and marketed, the risks associated with any future acquisitions, and integrating recently completed acquisitions, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties, possible governmental regulation and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. other adverse consequences resulting from negative perception of the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. of business processes to foreign countries, Ebix's ability to continue to develop new products to effectively address market needs in an industry characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by rapid technological change, Ebix's ability to raise additional capital to finance future acquisitions and meet other funding needs, Ebix's dependence on a few customers(including one that is Ebix's largest stockholder), Ebix's dependence on the insurance industry, the highly competitive and rapidly changing automation systems market, Ebix's ability to effectively protect its applications software and other proprietary information, Ebix's ability to attract and retain quality management, and software, technical sales and other personnel, the risks of disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of Ebix's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the connections or internal service problems, the possible adverse effects of a substantial increase in volume of traffic on Ebix's website, mainframe mainframe Digital computer designed for high-speed data processing with heavy use of input/output units such as large-capacity disks and printers. They have been used for such applications as payroll computations, accounting, business transactions, information retrieval, and other servers, possible security breaches on the Ebix website, the possible effects of insurance regulation on Ebix, the possible effects of the Securities and Exchange Commission's investigation of Ebix's financial reporting, and possible future terrorist attacks or acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. . Certain of these, as well as other risks, uncertainties and other factors, are described in more detail in Ebix's periodic filings with the Securities and Exchange Commission, including Ebix's quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September September: see month. 30, 2004. Except as expressly required by the federal securities laws, Ebix undertakes no obligation to update any such factors or any of the forward-looking statements contained herein to reflect changed circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or future events or developments or for any other reason.
Ebix, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except for share amounts)
March 31, December 31,
ASSETS 2006 2005
------------ ------------
Current assets: (Unaudited)
Cash and cash equivalents $6,246 $6,733
Restricted cash - -
Accounts receivable, less allowance of $18
and $11, respectively 3,885 3,502
Other current assets 520 444
------------ ------------
Total current assets 10,651 10,679
------------ ------------
Property and equipment, net 1,408 1,488
Capitalized software, net - -
Goodwill 12,047 12,204
Intangibles, net 3,058 3,293
Other assets 285 317
------------ ------------
Total assets $27,449 $27,981
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $- $-
Accounts payable and accrued expenses 1,518 1,962
Accrued payroll and related benefits 677 1,450
Current portion of long term debt 966 969
Current portion of capital lease
obligations - -
Deferred revenue 3,017 2,794
------------ ------------
Total current liabilities 6,178 7,175
------------ ------------
Long term debt, less current portion 1,348 1,844
Redeemable Common Stock - 1,461
Stockholders' equity:
Convertible Series D Preferred stock, $.10
par value, 500,000 shares authorized, no
shares issued and outstanding - -
Common stock, $.10 par value, 10,000,000
shares authorized, 2,753,352 and
2,740,516 shares issued and outstanding,
respectively 275 274
Additional paid-in capital 94,040 92,539
Accumulated deficit (74,554) (75,689)
Accumulated other comprehensive income 162 377
------------ ------------
Total stockholders' equity 19,923 17,501
------------ ------------
Total liabilities and stockholders'
equity $27,449 $27,981
============ ============
Ebix, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended
March 31,
2006 2005
--------- ---------
Revenue:
Software $497 $202
Services and other (Including revenues from
related parties of $713 and $878, respectively) 5,153 5,702
--------- ---------
Total revenue 5,650 5,904
Operating expenses:
Services and other costs 1,331 1,406
Product development 869 794
Sales and marketing 590 478
General and administrative 1,364 1,689
Amortization and depreciation 314 329
--------- ---------
Total operating expenses 4,468 4,696
--------- ---------
Operating income 1,182 1,208
Interest income 79 82
Interest expense (32) (102)
Foreign exchange gain (loss) 42 (9)
--------- ---------
Income before income taxes 1,271 1,179
Income tax expense (136) (111)
--------- ---------
Net income $1,135 $1,068
========= =========
Basic earnings per common share $0.41 $0.37
========= =========
Diluted earnings per common share $0.36 $0.33
========= =========
Basic weighted average shares outstanding 2,748 2,912
========= =========
Diluted weighted average shares outstanding 3,137 3,224
========= =========
Ebix, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Quarter Ended March 31,
2006 2005
---------- ----------
Cash flows from operating activities:
Net income 1,135 1,068
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation and amortization 314 329
Stock-based compensation 21 (32)
Restricted stock compensation 68
Provision for doubtful accounts 7 2
Changes in assets and liabilities:
Accounts receivable (390) (176)
Other assets (44) 3
Accounts payable and accrued expenses (444) (58)
Accrued payroll and related benefits (773) 141
Deferred revenue 223 501
---------- ----------
Net cash provided by (used in) operating
activities 117 1,778
---------- ----------
Cash flows from investing activities:
Capital expenditures (17) (276)
---------- ----------
Net cash used in investing activities (17) (276)
---------- ----------
Cash flows from financing activities:
Proceeds for the issuance of common stock, net
of issuance costs - -
Proceeds from the exercise of stock options 31 12
Payments of long term debt (499) (500)
---------- ----------
Net cash provided by (used in) financing
activities (468) (488)
Effect of foreign exchange rates on cash (119) 56
---------- ----------
Net change in cash and cash equivalents (487) 1,070
Cash and cash equivalents at the beginning
of the period 6,733 5,843
---------- ----------
Cash and cash equivalents at the end of the
period $6,246 $6,913
---------- ----------
Supplemental disclosures of cash flow
information:
Interest paid $- $47
Income taxes paid $40 $86
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