GlobeNewswire Inc | Apr 27, 2021 07:33AM EDT

April 27, 2021

JOHNS CREEK, Ga., April 27, 2021 (GLOBE NEWSWIRE) -- Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today reported fiscal 2020 fourth quarter (Q4 2020) and full year results for the periods ended December 31, 2020. Ebix will host a conference call to review its results today at 11:00 a.m. EST (details below).

Ebix Chairman, President and CEO Robin Raina said, We are pleased that we were able to deliver stellar financial results in 2020, in spite of the tremendous negative impact of Covid-19 across several major areas of our global operations. In 2020, the Company produced cash flows from operations of $100.4 million as compared to $60.8 million in 2019. We are pleased with that cash flow generation, as it speaks to the diversity and fundamental strength of our businesses worldwide.

Ebix delivered the following results for its fiscal fourth quarter and fiscal year 2020:

Revenue: Fiscal year 2020 revenue increased 8% to $625.6 million as compared to fiscal year 2019, and Q4 2020 revenue increased 52% year-over-year to $222.1 million versus Q4 2019.

On a constant currency basis, Ebix 2020 revenues increased 12% to $647.5 million vs. $580.6 million in 2019. Exchanges, including the EbixCash and Insurance Exchanges worldwide, continued to be Ebixs largest channel, accounting for 91% of our fiscal year 2020 revenues.

(dollar amounts in thousands) Channel Q4 2020 Q4 2019 Change 2020 2019 ChangeEbixCash Exchanges $ $ 81,184 +98% $ $ +21% 160,425 388,293 319,953Insurance Exchanges 48,770 48,074 +1% 178,111 190,067 -6%RCS ? Insurance 12,920 16,925 -24% 59,205 70,595 -16%Total Revenue $222,115 $146,183 +52% $ $ +8% 625,609 580,615 Total Revenue on Constant $ $ +56% $ $ +12%Currency Basis 228,162 146,183 647,511 580,615

Operating Income and Operating Cash: Q4 2020 GAAP operating income decreased 19% to $27.7 million as compared to $34.2 million in Q4 2019, primarily because of a one-time impairment charge of $6.2 million taken in Q4 2020 related to the Companys Ebix Health Administration joint venture (EHAE) and the impact of Covid-19 on our worldwide businesses throughout fiscal year 2020. In Q4 2020, the Company generated $28.6 million of cash flows from operations.

GAAP operating income for 2020 declined 19% to $125.8 million as compared to $155.7 million in 2019. Non-GAAP operating income for 2020 was $147.7 million.

In 2020, the Company generated cash flows from operations of $100.4 million as compared to $60.8 million in 2019 in spite of the effect of Covid-19 on our worldwide businesses during 2020.

Earnings per Share: For the full fiscal year 2020, GAAP diluted earnings per share declined 4% to $3.02 from $3.16 in 2019. Excluding the one-time non-recurring items, non-GAAP diluted earnings per share for 2020 was $3.70.

Q4 2020 GAAP diluted earnings per share declined 10% to $0.64 from $0.71 in Q4 2019, primarily because of the one-time EHAE impairment charge in Q4 2020. Excluding the one-time non-recurring items, non-GAAP diluted earnings per share in Q4 2020 was $0.94.

Net Income: Full year 2020 GAAP net income decreased 4% to $92.4 million compared to $96.7 million in 2019. Fiscal year 2020 Non-GAAP net income was $113.1 million after excluding certain non-recurring items.

Q4 2020 GAAP net income decreased 10% to $19.5 million as compared to $21.7 million in Q4 2019. Q4 2020 Non-GAAP net income was $28.7 million after excluding certain non-recurring items. Q1 2021 Diluted Share Counts: Ebix expects its diluted share count to be approximately 30.7 million in Q1 2021.

Dividend: Ebix paid its regularly quarterly dividend of $0.075 per share in Q4 2020 for a total cost of $2.3 million.

Robin said, We grew our overall revenues 44% sequentially and 52% year over year in Q4 of 2020. We took a $6.2 million charge in Q4 2020 on account of a one-time impairment of our TPA business (EHAE), without which our operating income in Q4 2020 would have been $34 million. Our Non-GAAP operating margin for the Company, excluding the lower margin payment solutions business, was 41.2% in the fourth quarter of 2020. This number excludes the additional impact of foreign exchange variations, which on a constant currency basis, would have added approximately $6 million to our Q4 2020 revenues and, accordingly, would have resulted in an additional increase in our income.

Steve Hamil, EVP and Global CFO added, During 2020, the Company cumulatively spent $117.7 million, including $29.5 million for cash interest related to outstanding debt, $21.3 million for tax payments, $20.7 million for scheduled principal payments on the term loan, $14.3 million for acquisition-related activities, $10.9 million reducing our working capital facilities in India, $9.2 million for dividend payments, $6.5 million for acquisition earn-out payments and $5.3 million for capital expenditures. Considering that level of expenditures, our cash, cash equivalents, short term investments and restricted cash were $138.6 million at 12/31/20 vs $112.7 million at 12/31/19. Total debt, including the working capital facilities, short term debt, current portion of long-term debt, long-term debt, and the revolving line of credit, stood at $712.7 million at December 31, 2020 versus $744.1 million at December 30, 2019, a year-over-year reduction of $31.4 million. The Company has made an additional $25.6 million in term loan payments related to its senior secured credit facility since 12/31/20.

Reconciliation of GAAP operating income, net income and diluted earnings per share to non-GAAP operating income, net income and diluted earnings per share. Non-GAAP information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables.

Full Year 2020

Net Income Diluted EPS2020 GAAP Net Income $92,377 $3.02 2020 GAAP Operating Income $125,802 Non-GAAP Adjustments: Amortization of Intangibles (1) $9,499 $0.31 Stock-Based Compensation (1) $4,792 $0.16 EHAE Intangible Impairment in Q4 2020 (2) $6,168 $0.20 One-time Legal Costs (3) $1,478 $0.05 Income Tax Effects of Non?GAAP Adjustments (4) $(1,242) $(0.04) Total Non-GAAP Adjustments (Operating Income) $21,937 Total Non-GAAP Adjustments (Net Income) $20,695 $0.68 Full Year 2020 Non-GAAP Net Income $113,072 $ 3.70 Full Year 2020 Non-GAAP Operating Income $147,739

Q4 2020

Net Income Diluted EPSQ4 2020 GAAP Net Income $19,497 $0.64 Q4 2020 GAAP Operating Income $27,740 Non-GAAP Adjustments: Amortization of Intangibles (1) $2,379 $0.08 Stock-Based Compensation (1) $1,335 $0.04 EHAE Intangible Impairment in Q4 2020 (2) $6,168 $0.20 One-time Legal Costs (3) $658 $0.02 Income Tax Effects of Non?GAAP Adjustments (5) $(1,352) $(0.04) Total Non-GAAP Adjustments (Operating Income) $10,540 Total Non-GAAP Adjustments (Net Income) $9,188 $0.30 Fourth Quarter 2020 Non-GAAP Net Income $28,685 $0.94 Fourth Quarter 2020 Non-GAAP Operating Income $38,280

-- Adjustments related to amortization of acquired intangibles and stock-based compensation recognized during the periods for GAAP purposes. -- Adjustment relates to an intangible asset impairment recorded in Q4 2020 at our Ebix Health Administration Exchange joint venture. -- Non-recurring legal costs recorded during the periods for GAAP purposes. -- Non-GAAP adjustment is based on the 2020 effective tax rate, which reflects currently available information and could be subject to change. -- Non-GAAP adjustment is based on the Q4 2020 effective tax rate, which reflects currently available information and could be subject to change.

Conference Call Details:

Call Date/Time: Tuesday, April 27, 2021 at 11:00 a.m. EST

Call Dial-In: +1-877-837-3909 or 1-973-409-9690; Call ID # 4957948

Live Audio www.ebix.com/webcastWebcast: www.ebix.com/result_20_Q4 after 2:00 p.m. EST on AprilAudio Replay URL: 27, 2021

About Ebix, Inc.

With 50+ offices across 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. In the Insurance sector, Ebixs main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service ("SaaS") enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administration and risk compliance services, around the world.

With a "Phygital strategy that combines over 320,000 physical distribution outlets in many Southeast Asian Nations (ASEAN) countries, to an Omni-channel online digital platform, the Companys EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets. EbixCashs Forex operations have emerged as a leader in Indias airport Foreign Exchange business with operations in 20 international airports, including Delhi, Mumbai, Mumbai, Hyderabad, Chennai and Kolkata, combined conducting over $4.8 billion in gross transaction value per year (pre-COVID-19). EbixCashs inward remittance business in India processes approximately $5 billion in gross annual remittance volume (pre-COVID-19) and is the clear market leader. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asias leading travel exchanges with over 200,000 agents, 25 branches and over 9,800 corporate clients, combined processing an estimated $2.5 billion in gross merchandise value per year (pre-COVID-19).

Through its various SaaS-based software platforms, Ebix employs thousands of domain-specific technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Companys website at www.ebix.com

SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS

As used herein, the terms Ebix, the Company, we, our and us refer to Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Ebix, Inc.

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 Companys products by the market, and managements 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 our Annual Report on Form 10-K and subsequent reports filed with the SEC, as well as: the ongoing effects of the Covid-19 global pandemic, the potential impacts of RSMs resignation; the risk of litigation or regulatory action arising from RSMs resignation and the resulting failure to failure to timely file the Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the Annual Report); possible default by the Company under its credit facility; potential reputational damage that the Company may suffer as a result of these matters; the impact of these matters on the value of the Companys stock; the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties; pricing and other competitive pressures and the Companys 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 the 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 SECs web site, www.sec.gov.

CONTACT: Darren Joseph 678 -281-2027 or IR@ebix.com

David Collins, Chris Eddy Catalyst Global -212-924-9800 orebix@catalyst-ir.com

Ebix, Inc. and SubsidiariesConsolidated Statements of Income(Unaudited)

Year Ended December 31, 2020 2019 2018 (In thousands, except per share amounts)Operating revenue: $ 625,609 $ 580,615 $ 497,826 Operating expenses: Costs of services provided 343,262 205,165 168,415 Product development 35,267 45,302 39,078 Sales and marketing 13,835 19,578 17,587 General and administrative, net 87,537 140,429 108,475 Amortization and depreciation 13,738 14,468 11,292 Impairment of intangible asset 6,168 ? ? Total operating expenses 499,807 424,942 344,847 Operating income 125,802 155,673 152,979 Interest income 167 629 436 Interest expense (31,578 ) (42,332 ) (27,101 ) Non-operating income 153 337 60 Non-operating expense -litigation settlement (see Note ? (21,140 ) ? 5)Foreign currency exchange loss (387 ) (2,376 ) (792 ) Income before income taxes 94,157 90,791 125,582 Income tax provision (5,330 ) (220 ) (32,501 ) Net income including $ 88,827 $ 90,571 $ 93,081 noncontrolling interestNet loss attributable tononcontrolling interest (see Note (3,550 ) (6,149 ) (58 ) 17)Net income attributable to Ebix, $ 92,377 $ 96,720 $ 93,139 Inc.Basic earnings per common share $ 3.03 $ 3.17 $ 2.97 Diluted earnings per common share $ 3.02 $ 3.16 $ 2.95 Basic weighted average shares 30,510 30,511 31,393 outstandingDiluted weighted average shares 30,571 30,594 31,534 outstanding

See accompanying notes to the consolidated financial statements.

Ebix, Inc. and SubsidiariesConsolidated Balance Sheets(Unaudited) December 31, 2020 2019 (In thousands, except share and per share amounts)ASSETS Current assets: Cash and cash equivalents 105,035 73,228 Receivables from service providers 4,711 25,607 Short-term investments 25,019 4,443 Restricted cash 8,519 35,051 Fiduciary funds - restricted 4,106 4,966 Trade accounts receivable, less allowances of 142,847 153,565 22,691 and 21,696, respectivelyOther current assets 71,661 67,074 Total current assets 361,898 363,934 Property and equipment, net 52,521 48,421 Right-of-use assets 12,372 19,544 Goodwill 949,037 952,404 Intangibles, net 50,880 46,955 Indefinite-lived intangibles 21,647 42,055 Capitalized software development costs, net 19,389 19,183 Deferred tax assets, net 63,402 69,227 Other assets 38,707 29,896 Total assets $ 1,569,853 $ 1,591,619 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable and accrued liabilities $ 64,764 $ 84,735 Payables to service agents 5,281 12,196 Accrued payroll and related benefits 11,792 8,755 Working capital facilities 16,643 28,352 Fiduciary funds - restricted 4,106 4,966 Short-term debt 894 1,167 Contingent liability for earn-out acquisition ? 8,621 considerationCurrent portion of long-term debt, net ofdeferred financing costs of $920 and $575 23,621 22,091 thousand, respectivelyContract liabilities 32,898 28,712 Lease liability 3,905 5,955 Other current liabilities 27,486 29,335 Total current liabilities 191,390 234,885 Revolving line of credit 439,402 438,037 Long-term debt, less current portion, net ofdeferred financing costs of $1,062 and 232,140 254,467 $1,534,respectivelyContingent liability for earn-out acquisition ? 1,474 considerationContract liabilities 8,033 8,541 Lease liability 8,540 13,196 Deferred tax liability, net 1,235 1,235 Other liabilities 29,009 40,339 Total liabilities 909,749 992,174 Commitments and Contingencies, Note 5 Stockholders? equity: Preferred stock, $.10 par value, 500,000shares authorized, no shares issued and ? ? outstandingat December31, 2020 and 2019Series Y Convertible preferred stock, $0.10par value, 350,000 shares authorized, noshares ? ? issued and outstanding at December 31, 2020and no shares authorized, issued andoutstanding at December31, 2019Common stock, $.10 par value, 220,000,000shares authorized, 30,515,334 issued andoutstanding at December31, 2020 and 3,052 3,049 30,492,044 issued and outstanding atDecember31,2019Additional paid-in capital 11,126 6,960 Retained earnings 700,304 618,503 Accumulated other comprehensive loss (101,503 ) (78,398 ) Total Ebix, Inc. stockholders? equity 612,979 550,114 Noncontrolling interest (see Note 17) 47,125 49,331 Total stockholders' equity 660,104 599,445 Total liabilities and stockholders? equity $ 1,569,853 $ 1,591,619

See accompanying notes to the consolidated financial statements.

Ebix, Inc. and SubsidiariesConsolidated Statements of Cash Flows(Unaudited) Year Ended December 31, 2020 2019 2018 (In thousands)Cash flows from operating activities:Net income attributable to Ebix, $ 92,377 $ 96,720 $ 93,139 Inc.Net (loss) income attributable to (3,550 ) (6,149 ) (58 ) noncontrolling interestAdjustments to reconcile netincome to cash provided by operating activities:Depreciation and amortization 13,738 14,468 11,292 Provision for doubtful accounts 1,749 12,325 3,571 Provision for deferred taxes, netof acquisitions and effects of 5,114 (15,525 ) (13,043 ) currency translationUnrealized foreign exchange ? 1,104 606 lossesAmortization of right-of-use 6,100 7,144 ? assetsAmortization of capitalized 3,367 2,696 2,233 software development costsShare-based compensation 4,792 3,397 2,811 Reduction of acquisition earn-out (3,105 ) (16,543 ) (1,391 ) contingent liabilityCash paid for acquisition (6,453 ) ? (3,831 ) earn-outIntangible asset impairment 6,168 ? ? Changes in current assets and liabilities, net of acquisitions:Accounts receivable 3,258 (22,977 ) 15,839 Receivables from service 20,896 10,950 (36,557 ) providersPayables to service agents (6,915 ) (13,455 ) 25,651 Other assets (10,487 ) (8,351 ) (8,486 ) Accounts payable and accrued (14,569 ) (19,624 ) (11,787 ) expensesAccrued payroll and related 2,100 (661 ) (788 ) benefitsLease liabilities (5,700 ) (6,878 ) (360 ) Reserve for potential uncertain ? (95 ) 149 income tax return positionsOther liabilities (12,204 ) 30,396 13,205 Contract liabilities 3,680 (8,149 ) (8,740 ) Net cash provided by operating 100,356 60,793 83,455 activitiesCash flows from investing activities:Cash paid for acquisitions, net (14,276 ) (105,466 ) (232,557 ) of cash acquiredCash (paid to) received from PaulMerchants for 10% stake in MTSS ? (5,348 ) 4,996 combined business and otherinvestmentMaturities (purchases) of (20,964 ) 27,015 (4,087 ) marketable securitiesCapitalized software development (4,229 ) (7,989 ) (8,079 ) costsCapital expenditures (5,337 ) (4,908 ) (8,032 ) Net cash used in investing (44,806 ) (96,696 ) (247,759 ) activitiesCash flows from financing activities:Proceeds from / (payment) to 1,364 13,500 150,008 revolving line of credit, netProceeds from term loan ? ? 175,500 Principal payments on term loan (20,711 ) (15,063 ) (10,016 ) obligationPayments on short-term notes, net ? 6,450 (8,341 ) Working capital facilities (10,927 ) 19,079 (8,094 ) Repurchase of common stock ? (12,952 ) (40,820 ) Payments of long term debt (271 ) (686 ) (80 ) Payments for capital lease (210 ) ? (6 ) obligationsProceeds from exercise of common 636 ? 439 stock optionsForfeiture of certain shares tosatisfy exercise costs and therecipientsincome tax obligations related to (2,589 ) (230 ) (467 ) stock options exercised andrestrictedstock vestedDividends paid (9,245 ) (9,193 ) (9,316 ) Net cash (used) provided by (41,953 ) 905 248,807 financing activitiesEffect of foreign exchange rates (4,753 ) (3,314 ) (5,689 ) on cash and cash equivalentsNet change in cash and cash 8,844 (38,312 ) 78,814 equivalents, and restricted cashCash and cash equivalents, andrestricted cash at the beginning 111,369 149,681 70,867 of the yearCash and cash equivalents, andrestricted cash at the end of the $ 120,213 $ 111,369 $ 149,681 year Supplemental disclosures of cash flow information:Interest paid 29,498 41,143 25,690 Income taxes paid 21,321 24,041 10,149

See accompanying notes to the consolidated financial statements.