falsedesktopEBIX2020-09-30000081454920000026{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☑\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_1": "PART I - FINANCIAL INFORMATION\t\nItem 1. Consolidated Financial Statements\t\nCondensed Consolidated Statements of Income for the three and nine months ended September 30 2020 and 2019 (unaudited)\t2\nCondensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30 2020 and 2019 (unaudited)\t3\nCondensed Consolidated Balance Sheets at September 30 2020 (unaudited) and December 31 2019\t4\nCondensed Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30 2020 and 2019 (unaudited)\t6\nCondensed Consolidated Statements of Cash Flows for the nine months ended September 30 2020 and 2019 (unaudited)\t9\nNotes to Condensed Consolidated Financial Statements (unaudited)\t11\nItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t34\nItem 3. Quantitative and Qualitative Disclosures About Market Risk\t49\nItem 4. Controls and Procedures\t50\nPART II - OTHER INFORMATION\t\nItem 1. Legal Proceedings\t50\nItem 1A. Risk Factors\t51\nItem 2. Repurchases of Equity Securities\t52\nItem 3. Defaults upon Senior Securities\t52\nItem 4. Mine Safety Disclosures\t52\nItem 5. Other Information\t52\nItem 6. Exhibits\t52\nEXHIBITS INDEX\t54\nSIGNATURES\t55\nExhibit 31.1\t\nExhibit 31.2\t\nExhibit 32.1\t\nExhibit 32.2\t\nExhibit 101\t\n", "q10k_tbl_2": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nOperating revenue\t154305\t147233\t403493\t434432\nOperating expenses:\t\t\t\t\nCost of services provided\t85976\t55171\t192526\t152054\nProduct development\t8775\t11245\t26530\t33884\nSales and marketing\t3375\t4284\t10637\t14898\nGeneral and administrative net\t20888\t46900\t65596\t101210\nAmortization and depreciation\t3392\t3626\t10142\t10966\nTotal operating expenses\t122406\t121226\t305431\t313012\nOperating income\t31899\t26007\t98062\t121420\nInterest income\t29\t99\t112\t578\nInterest expense\t(7495)\t(10970)\t(23879)\t(32551)\nNon-operating (loss) income\t(4)\t352\t95\t344\nNon-operating expense - litigation settlement\t0\t0\t0\t(21140)\nForeign currency exchange (loss) gain\t(597)\t(641)\t112\t(495)\nIncome before income taxes\t23832\t14847\t74502\t68156\nIncome tax (expense) benefit\t152\t217\t(2809)\t297\nNet income including noncontrolling interest\t23984\t15064\t71693\t68453\nNet loss attributable to noncontrolling interest\t(698)\t(5445)\t(1187)\t(6617)\nNet income attributable to Ebix Inc.\t24682\t20509\t72880\t75070\nBasic earnings per common share attributable to Ebix Inc.\t0.81\t0.67\t2.39\t2.46\nDiluted earnings per common share attributable to Ebix Inc.\t0.80\t0.67\t2.37\t2.45\nBasic weighted average shares outstanding\t30525\t30501\t30502\t30517\nDiluted weighted average shares outstanding\t30853\t30633\t30748\t30598\n", "q10k_tbl_3": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNet income including noncontrolling interest\t23984\t15064\t71693\t68453\nOther comprehensive income (loss):\t\t\t\t\nForeign currency translation adjustments\t18174\t(18752)\t(35897)\t(10859)\nTotal other comprehensive income (loss)\t18174\t(18752)\t(35897)\t(10859)\nComprehensive income (loss)\t42158\t(3688)\t35796\t57594\nComprehensive loss attributable to noncontrolling interest\t(698)\t(5445)\t(1187)\t(6617)\nComprehensive income attributable to Ebix Inc.\t42856\t1757\t36983\t64211\n", "q10k_tbl_4": "\tSeptember 30 2020\tDecember 31 2019\nASSETS\t(Unaudited)\t\nCurrent assets:\t\t\nCash and cash equivalents\t88023\t73228\nReceivables from service providers\t19758\t25607\nShort-term investments\t24522\t4443\nRestricted cash\t7902\t35051\nFiduciary funds - restricted\t4757\t4966\nTrade accounts receivable less allowances of $21908 and $21696 respectively\t132089\t153565\nOther current assets\t69917\t67074\nTotal current assets\t346968\t363934\nProperty and equipment net\t48525\t48421\nRight-of-use assets\t13604\t19544\nGoodwill\t938680\t952404\nIntangibles net\t52864\t46955\nIndefinite-lived intangibles\t27815\t42055\nCapitalized software development costs net\t20420\t19183\nDeferred tax asset net\t66992\t69227\nOther assets\t34682\t29896\nTotal assets\t1550550\t1591619\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nCurrent liabilities:\t\t\nAccounts payable and accrued liabilities\t68941\t84735\nPayables to service agents\t8224\t12196\nAccrued payroll and related benefits\t12079\t8755\nWorking capital facility\t7546\t28352\nFiduciary funds - restricted\t4757\t4966\nShort-term debt\t8349\t1167\nContingent liability for accrued earn-out acquisition consideration\t3352\t8621\nCurrent portion of long term debt and financing lease obligations net of deferred financing costs of $920 and $575 respectively\t23620\t22091\nContract liabilities\t27807\t28712\nLease liability\t4392\t5955\nOther current liabilities\t29341\t29335\nTotal current liabilities\t198408\t234885\nRevolving line of credit\t439402\t438037\nLong term debt and financing lease obligations less current portion net of deferred financing costs of $1293 and $1534 respectively\t237608\t254467\nContingent liability for accrued earn-out acquisition consideration\t0\t1474\nContract liabilities\t7474\t8541\nLease liability\t9128\t13196\nDeferred tax liability net\t1235\t1235\nOther liabilities\t26725\t40339\nTotal liabilities\t919980\t992174\n", "q10k_tbl_5": "Stockholders' equity:\t\t\nPreferred stock $0.10 par value 500000 shares authorized no shares issued and outstanding at September 30 2020 and December 31 2019\t0\t0\nSeries Y Convertible preferred stock $0.10 par value 350000 shares authorized no shares issued and outstanding at September 30 2020 and no shares authorized issue and outstanding at December 31 2019\t0\t0\nCommon stock $0.10 par value 220000000 shares authorized 30526793 issued and outstanding at September 30 2020 and 30492044 issued and outstanding at December 31 2019\t3053\t3049\nAdditional paid-in capital\t10537\t6960\nRetained earnings\t683131\t618503\nAccumulated other comprehensive loss\t(114295)\t(78398)\nTotal Ebix Inc. stockholders' equity\t582426\t550114\nNoncontrolling interest\t48144\t49331\nTotal stockholders' equity\t630570\t599445\nTotal liabilities and stockholders' equity\t1550550\t1591619\n", "q10k_tbl_6": "\tCommon Stock\t\t\t\t\t\t\n\tIssued Shares\tAmount\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tNoncontrolling interest\tTotal\nBalance July 1 2020\t30507903\t3051\t9335\t660767\t(132469)\t48842\t589526\nNet income attributable to Ebix Inc.\t0\t0\t0\t24682\t0\t0\t24682\nNet loss attributable to noncontrolling interest\t0\t0\t0\t0\t0\t(698)\t(698)\nCumulative translation adjustment\t0\t0\t0\t0\t18174\t0\t18174\nVesting of restricted stock\t18890\t2\t(2)\t0\t0\t0\t0\nShare based compensation\t0\t0\t1204\t0\t0\t0\t1204\nCommon stock dividends paid $0.075 per share\t0\t0\t0\t(2318)\t0\t0\t(2318)\nBalance September 30 2020\t30526793\t3053\t10537\t683131\t(114295)\t48144\t630570\n", "q10k_tbl_7": "\tCommon Stock\t\t\t\t\t\t\n\tIssued Shares\tAmount\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tNoncontrolling interest\tTotal\nBalance January 1 2020\t30492044\t3049\t6960\t618503\t(78398)\t49331\t599445\nNet income attributable to Ebix Inc.\t0\t0\t0\t72880\t0\t0\t72880\nNet loss attributable to noncontrolling interest\t0\t0\t0\t0\t0\t(1187)\t(1187)\nCumulative translation adjustment\t0\t0\t0\t0\t(35897)\t0\t(35897)\nVesting of restricted stock\t60275\t6\t(6)\t0\t0\t0\t0\nExercise of stock options\t30000\t3\t633\t0\t0\t0\t636\nShare based compensation\t0\t0\t3457\t0\t0\t0\t3457\nForfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested\t(55526)\t(5)\t(507)\t(1329)\t0\t0\t(1841)\nCommon stock dividends paid $0.225 per share\t0\t0\t0\t(6923)\t0\t0\t(6923)\nBalance September 30 2020\t30526793\t3053\t10537\t683131\t(114295)\t48144\t630570\n", "q10k_tbl_8": "\tCommon Stock\t\t\t\t\t\t\n\tIssued Shares\tAmount\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tNoncontrolling interest\tTotal\nBalance July 1 2019\t30529840\t3053\t5189\t582913\t(55484)\t51882\t587553\nNet income attributable to Ebix Inc.\t0\t0\t0\t20509\t0\t0\t20509\nNet loss attributable to noncontrolling interest\t0\t0\t0\t0\t0\t(5445)\t(5445)\nCumulative translation adjustment\t0\t0\t0\t0\t(18752)\t0\t(18752)\nRepurchase and retirement of commons stock\t(45000)\t(5)\t0\t(1975)\t0\t0\t(1980)\nVesting of restricted stock\t6558\t1\t(1)\t0\t0\t0\t0\nShare based compensation\t0\t0\t1029\t0\t0\t0\t1029\nForfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested\t(191)\t0\t(9)\t0\t0\t0\t(9)\nNoncontrolling interest\t0\t0\t0\t0\t0\t2710\t2710\nCommon stock dividends paid $0.075 per share\t0\t0\t0\t(2299)\t0\t0\t(2299)\nBalance September 30 2019\t30491207\t3049\t6208\t599148\t(74236)\t49147\t583316\n", "q10k_tbl_9": "\tCommon Stock\t\t\t\t\t\t\n\tIssued Shares\tAmount\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tNoncontrolling interest\tTotal\nBalance January 1 2019\t30567725\t3057\t3397\t535118\t(63377)\t66242\t544437\nNet income attributable to Ebix Inc.\t0\t0\t0\t75070\t0\t0\t75070\nNet loss attributable to noncontrolling interest\t0\t0\t0\t0\t0\t(6617)\t(6617)\nCumulative translation adjustment\t0\t0\t0\t0\t(10859)\t0\t(10859)\nRepurchase and retirement of common stock\t(95000)\t(10)\t0\t(4142)\t0\t0\t(4152)\nVesting of restricted stock\t19144\t2\t(2)\t0\t0\t0\t0\nShare based compensation\t0\t0\t2451\t0\t0\t0\t2451\nForfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested\t(662)\t0\t(36)\t0\t0\t0\t(36)\nNoncontrolling interest\t0\t0\t398\t0\t0\t(10478)\t(10080)\nCommon stock dividends paid $0.225 per share\t0\t0\t0\t(6898)\t0\t0\t(6898)\nBalance September 30 2019\t30491207\t3049\t6208\t599148\t(74236)\t49147\t583316\n", "q10k_tbl_10": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income attributable to Ebix Inc.\t72880\t75070\nNet loss attributable to noncontrolling interest\t(1187)\t(6617)\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\nAmortization and depreciation\t10142\t10966\nProvision (benefit) for deferred taxes\t987\t(5880)\nShare based compensation\t3457\t2451\nBenefit for doubtful accounts\t424\t10580\nAmortization of right-of-use assets\t4644\t5167\nUnrealized foreign exchange loss\t0\t321\nAmortization of capitalized software development costs\t2493\t1931\nReduction of acquisition accruals\t(3308)\t(17124)\nCash paid for acquisition earn-out\t(2881)\t0\nChanges in assets and liabilities net of effects from acquisitions:\t\t\nAccounts receivable\t13999\t(22052)\nReceivables from service providers\t5849\t9012\nPayables to service agents\t(3972)\t(12688)\nOther assets\t(7988)\t(5947)\nAccounts payable and accrued expenses\t(10620)\t(4062)\nAccrued payroll and related benefits\t3316\t(607)\nContract liabilities\t(1591)\t(9126)\nLease liabilities\t(4317)\t(5056)\nOther liabilities\t(10563)\t33844\nNet cash provided by operating activities\t71764\t60183\nCash flows from investing activities:\t\t\nCash paid for acquisitions net of cash acquired\t(12480)\t(104026)\nCash paid to from Paul Merchants for 10% stake in MTSS combined business\t0\t(4925)\nCapitalized software development costs\t(4617)\t(4126)\n(Purchases) maturities of marketable securities\t(20609)\t25686\nCapital expenditures\t(1464)\t(5869)\nNet cash used in investing activities\t(39170)\t(93260)\nCash flows from financing activities:\t\t\nProceeds from revolving line of credit net\t1364\t13500\nPrincipal payments of term loan obligation\t(15063)\t(11298)\nRepurchases of common stock\t0\t(12952)\nProceeds from the exercise of stock options\t636\t0\nForfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested\t(1841)\t(36)\nDividend payments\t(6923)\t(6898)\nPayments on short-term notes net\t0\t6023\nProceeds (payments) of debt obligations\t7187\t(962)\n(Payments) proceeds of working capital facility net\t(19945)\t31120\nPayments of financing lease obligations\t(158)\t(200)\nNet cash (used) provided by financing activities\t(34743)\t18297\nEffect of foreign exchange rates on cash\t(7222)\t(2397)\nNet change in cash and cash equivalents and restricted cash\t(9371)\t(17177)\nCash and cash equivalents and restricted cash at the beginning of the period\t111369\t149681\nCash and cash equivalents and restricted cash at the end of the period\t101998\t132504\nSupplemental disclosures of cash flow information:\t\t\nInterest paid\t22237\t31787\nIncome taxes paid\t8019\t7406\n", "q10k_tbl_11": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\n\t(In thousands)\t\nCash and cash equivalents\t88023\t107698\nRestricted cash\t7902\t18240\nRestricted cash included in other long-term assets\t6073\t6566\nTotal cash cash equivalents and restricted cash shown in the Condensed Consolidated Statement of Cash Flows\t101998\t132504\n", "q10k_tbl_12": "\tFair Values at Reporting Date Using*\t\t\t\nDescriptions\tBalance September 30 2020\tQuoted Prices in Active Markets for Identical Assets or Liabilitie (Level 1)\tSignificant Other Observable Inputs (Level 2)\tSignificant Unobservable Inputs (Level 3)\n\t(In thousands)\t\t\t\nAssets\t\t\t\t\nCommercial bank certificates of deposits ($381 thousand is recorded in the long term asset section of the Condensed Consolidated Balance Sheets in \"Other Assets\")\t24903\t24903\t0\t0\nMutual funds (recorded in the long term asset section of the Condensed Consolidated Balance Sheets in \"Other Assets\")\t564\t564\t0\t0\nTotal assets measured at fair value\t25467\t25467\t0\t0\nLiabilities\t\t\t\t\nContingent accrued earn-out acquisition consideration (a)\t3352\t0\t0\t3352\nTotal liabilities measured at fair value\t3352\t0\t0\t3352\n(a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms projected revenues and cash flows rate of return and probability assessments.\t\t\t\t\n* During the nine months ended September 30 2020 there were no transfers between fair value Levels 1 2 or 3.\t\t\t\t\n", "q10k_tbl_13": "\tFair Values at Reporting Date Using*\t\t\t\nDescriptions\tBalance December 31 2019\tQuoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)\tSignificant Other Observable Inputs (Level 2)\tSignificant Unobservable Inputs (Level 3)\n\t(In thousands)\t\t\t\nAssets\t\t\t\t\nCommercial bank certificates of deposits ($50 thousand is recorded in the long term asset section of the Condensed Consolidated Balance Sheets in \"Other Assets\")\t4493\t4493\t0\t0\nMutual funds\t1058\t1058\t0\t0\nTotal assets measured at fair value\t5551\t5551\t0\t0\nLiabilities\t\t\t\t\nContingent accrued earn-out acquisition consideration (a)\t10095\t0\t0\t10095\nTotal liabilities measured at fair value\t10095\t0\t0\t10095\n(a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms projected revenues and cash flows rate of return and probability assessments.\t\t\t\t\n* During the year ended December 31 2019 there were no transfers between fair value Levels 1 2 or 3.\t\t\t\t\n", "q10k_tbl_14": "Fair Value Measurements Using Significant Unobservable Inputs (Level 3)\t\t\nContingent Liability for Accrued Earn-out Acquisition Consideration\tSeptember 30 2020\tDecember 31 2019\n\t(In thousands)\t\nBeginning balance\t10095\t24976\nTotal remeasurement adjustments:\t\t\nGains included in earnings **\t(3308)\t(16543)\nForeign currency translation adjustments ***\t(554)\t(260)\nAcquisitions and settlements\t\t\nBusiness settlements\t(2881)\t1922\nEnding balance\t3352\t10095\nThe amount of total (gains) losses for the period included in earnings or changes to net assets attributable to changes in unrealized gains relating to assets or liabilities still held at period-end.\t(3308)\t(16543)\n** recorded as a reduction to general and administrative expenses\t\t\n*** recorded as a component of other comprehensive income within stockholders' equity\t\t\n", "q10k_tbl_15": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nRevenue:\t2020\t2019\t2020\t2019\n\t(In thousands)\t\t\t\nIndia*\t93403\t77145\t219953\t223962\nUnited States\t40124\t45038\t123750\t136181\nAustralia\t8187\t8643\t23773\t25997\nLatin America\t3633\t5400\t11447\t14397\nEurope\t3306\t3584\t9836\t11005\nCanada\t1122\t1207\t3355\t3516\nSingapore*\t896\t1260\t2944\t5404\nIndonesia*\t394\t2004\t2714\t7177\nUnited Arab Emirates*\t2568\t273\t2702\t607\nPhilippines*\t213\t2185\t1742\t4682\nNew Zealand\t459\t494\t1277\t1504\n\t154305\t147233\t403493\t434432\n*Primarily India led businesses for which total revenue was $96.8 million and $227.9 million for the three months and nine months ended September 30 2020 respectively and $82.1 million and $238.8 million in the three months and nine months ended September 30 2019 respectively.\t\t\t\t\n", "q10k_tbl_16": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(In thousands)\t\t\t\nEbixCash Exchanges\t96772\t82085\t227867\t238770\nInsurance Exchanges\t42382\t47385\t129342\t141993\nRisk Compliance Solutions\t15151\t17763\t46284\t53669\nTotals\t154305\t147233\t403493\t434432\n", "q10k_tbl_17": "\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\n\t(In thousands)\t\nBalance beginning of period\t1897\t2238\nCosts recognized from the beginning balance\t(576)\t(708)\nAdditions net of costs recognized\t327\t367\nBalance end of period\t1648\t1897\n", "q10k_tbl_18": "\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\n\t(In thousands)\t\nBalance beginning of period\t37253\t44660\nRevenue recognized from beginning balance\t(28164)\t(31507)\nAdditions from business acquisitions\t0\t769\nAdditions net of revenue recognized and currency translation\t26192\t23331\nBalance end of period\t35281\t37253\n", "q10k_tbl_19": "Category\tLife (yrs)\nAirport contracts\t9\nBacklog\t1.2\nBrand\t15\nCustomer relationships\t7-20\nDatabase\t10\nDealer networks\t15-20\nDeveloped technology\t3-12\nNon-compete agreements\t5\nStore networks\t5\nTrademarks\t3-15\n", "q10k_tbl_20": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(In thousands except per share data)\t\t\t\nNet income attributable to Ebix Inc.\t24682\t20509\t72880\t75070\nBasic weighted average shares outstanding\t30525\t30501\t30502\t30517\nDilutive effect of stock options and restricted stock awards\t328\t132\t246\t81\nDiluted weighted average shares outstanding\t30853\t30633\t30748\t30598\nBasic earnings per common share\t0.81\t0.67\t2.39\t2.46\nDiluted earnings per common share\t0.80\t0.67\t2.37\t2.45\n", "q10k_tbl_21": "\tThree Months Ended September 30 2020\t\tThree Months Ended September 30 2019\t\tNine Months Ended September 30 2020\t\tNine Months Ended September 30 2019\t\n\tAs Reported\tPro Forma\tAs Reported\tPro Forma\tAs Reported\tPro Forma\tAs Reported\tPro Forma\n\t(unaudited)\t\t\t\t\t\t\t\n\t(In thousands except per share data)\t\t\t\t\t\t\t\nRevenue\t154305\t154305\t147233\t151128\t403493\t408071\t434432\t448462\nNet Income attributable to Ebix Inc.\t24682\t24682\t20509\t16056\t72880\t66810\t75070\t80987\nBasic EPS\t0.81\t0.81\t0.67\t0.53\t2.39\t2.19\t2.46\t2.65\nDiluted EPS\t0.80\t0.80\t0.67\t0.52\t2.37\t2.17\t2.45\t2.65\n", "q10k_tbl_22": "\tNine Months Ended\tAs of\tNine Months Ended\tAs of\n\tSeptember 30 2020\tSeptember 30 2020\tSeptember 30 2019\tDecember 31 2019\n\tExternal Revenues\tLong-lived assets\tExternal Revenues\tLong-lived assets\n\t(In thousands)\t\t\t\nIndia*\t219953\t615859\t223962\t700986\nUnited States\t123750\t390008\t136181\t395225\nAustralia\t23773\t3254\t25997\t3541\nLatin America\t11447\t20038\t14397\t17176\nEurope\t9836\t22493\t11005\t24508\nIndonesia*\t2714\t144\t7177\t117\nSingapore*\t2944\t12378\t5404\t18282\nPhilippines*\t1742\t684\t4682\t729\nCanada\t3355\t78635\t3516\t7012\nNew Zealand\t1277\t489\t1504\t578\nUnited Arab Emirates*\t2702\t59600\t607\t59531\n\t403493\t1203582\t434432\t1227685\n*Primarily India led businesses for which total revenue was $96.8 million and $227.9 million for the three months and nine months ended September 30 2020 respectively and $82.1 million and $238.8 million in the three months and nine months ended September 30 2019 respectively.\t\t\t\t\n", "q10k_tbl_23": "\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\n\t(In thousands)\t\nBeginning Balance\t952404\t946685\nAdditions\t7563\t17931\nPurchase accounting adjustments\t726\t741\nForeign currency translation adjustments\t(22013)\t(12953)\nEnding Balance\t938680\t952404\n", "q10k_tbl_24": "\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\n\t(In thousands)\t\nFinite-lived intangible assets:\t\t\nCustomer relationships\t95788\t83012\nDeveloped technology\t19718\t19979\nDealer network\t6595\t6726\nAirport contracts\t4486\t4635\nTrademarks\t2678\t2689\nStore networks\t2420\t2500\nBrand\t889\t918\nNon-compete agreements\t757\t764\nDatabase\t212\t212\nBacklog\t140\t140\nTotal intangibles\t133683\t121575\nAccumulated amortization\t(80819)\t(74620)\nFinite-lived intangibles net\t52864\t46955\nIndefinite-lived intangibles:\t\t\nCustomer/territorial relationships\t27815\t42055\n", "q10k_tbl_25": "\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\n\t(In thousands)\t\nPrepaid expenses\t52918\t51021\nSales taxes receivable from customers\t7588\t6499\nOther third party receivables\t3422\t4785\nCredit card merchant account balance receivable\t1251\t796\nShort term portion of capitalized costs to obtain and fulfill contracts\t664\t734\nAccrued interest receivable\t352\t176\nOther\t3722\t3063\nTotal\t69917\t67074\n", "q10k_tbl_26": "Year\tOperating Leases\tFinancing Leases\tTotal\n\t(in thousands)\t\t\n2020 (Remaining six months)\t1492\t48\t1540\n2021\t4560\t190\t4750\n2022\t3357\t160\t3517\n2023\t2925\t99\t3024\n2024\t1562\t77\t1639\nThereafter\t1662\t0\t1662\nTotal\t15558\t574\t16132\nLess: present value discount*\t(2038)\t(58)\t(2096)\nPresent value of lease liabilities\t13520\t516\t14036\nLess: current portion of lease liabilities\t(4392)\t(161)\t(4553)\nTotal long-term lease liabilities\t9128\t355\t9483\n* The discount rate used was the incremental borrowing rates respective to the country where the assets are located.\t\t\t\n", "q10k_tbl_27": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t(in thousands)\t\nOperating Lease Cost\t1622\t2016\t5472\t6265\nFinance Lease Cost:\t\t\t\t\nAmortization of Lease Assets\t41\t32\t128\t76\nInterest on Lease liabilities\t9\t9\t30\t24\nFinance Lease Cost\t50\t41\t158\t100\nSublease Income\t(113)\t(99)\t(338)\t(521)\nTotal Net Lease Cost\t1559\t1958\t5292\t5844\n", "q10k_tbl_28": "Year\tCommitments\n\t(in thousands)\n2020 (Remaining six months)\t6084\n2021\t22784\n2022\t20821\n2023\t20308\nThereafter\t0\nTotal\t69997\n", "q10k_tbl_29": "\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\n\t(In thousands)\t\nCustomer advances (deposits)\t26155\t22573\nAcquisition obligations (upfront purchase and contingent consideration)\t3186\t6762\nTotal\t29341\t29335\n", "q10k_tbl_30": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(In thousands)\t\t\t\nEbixCash Exchanges\t96772\t82085\t227867\t238770\nInsurance Exchanges\t42382\t47385\t129342\t141993\nRisk Compliance Solutions\t15151\t17763\t46284\t53669\nTotals\t154305\t147233\t403493\t434432\n", "q10k_tbl_31": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nSubscription\t26%\t30%\t31%\t31%\nTransaction-Based\t63%\t53%\t54%\t53%\nProfessional Services/Consulting/Other\t11%\t17%\t15%\t16%\n", "q10k_tbl_32": "Country/Region\tCash Restricted Cash and ST investments\n\t(In thousands)\nIndia\t72524\nUnited States\t17801\nAustralia\t15370\nPhilippines\t7535\nEurope\t3149\nSingapore\t2330\nCanada\t1698\nLatin America\t1492\nNew Zealand\t1186\nUnited Arab Emirates\t1045\nIndonesia\t587\nMauritius\t10\nTotal\t124727\n", "q10k_tbl_33": "Exhibits\t\n3.1\tCertificate of Incorporation as amended of Ebix Inc. (filed as Exhibit 3.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31 2009 and incorporated herein by reference).\n3.2\tAmendment to Certificate of Incorporation of Ebix Inc. dated May 25 2017 (incorporated by reference to Exhibit 3.2 to the Company's Annual Report on Form 10-K for the year ended December 31 2017).\n3.3\tAmended and Restated Bylaws of Ebix Inc. effective immediately following the Company's Annual Meeting of Stockholders held on January 9 2015 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated August 18 2020).\n3.4\tAmendment to Certificate of Incorporation of Ebix Inc. filed November 21 2018 (incorporated by reference to Exhibit 3.4 to the Company's Annual Report on Form 10-K for the year ended December 31 2018).\n3.5\tCertificate of Designations Number Voting Powers Preferences and Rights of Series Y Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated July 25 2019).\n31.1*\tCertification of Chief Executive Officer Pursuant to Rule 13a-14(a) (Section 302 of the Sarbanes-Oxley Act of 2002).\n31.2*\tCertification of Chief Financial Officer Pursuant to Rule 13a-14(a) (Section 302 of the Sarbanes-Oxley Act of 2002).\n32.1*\tCertification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n32.2*\tCertification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n101.INS*\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH*\tXBRL Taxonomy Extension Schema Document.\n101.CAL*\tXBRL Taxonomy Extension Calculation Linkbase Document.\n101.DEF*\tXBRL Taxonomy Extension Definition Linkbase Document.\n101.LAB*\tXBRL Taxonomy Extension Label Linkbase Document.\n101.PRE*\tXBRL Taxonomy Extension Presentation Linkbase Document.\n104\tCover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)\n"}{"bs": "q10k_tbl_4", "is": "q10k_tbl_2", "cf": "q10k_tbl_10"}None
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-15946
Ebix, Inc.
(Exact name of registrant as specified in its charter)
Delaware
77-0021975
(State or other jurisdiction of incorporation or
(I.R.S. Employer Identification No.)
organization)
1 Ebix Way
Johns Creek
Georgia
30097
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: 678-281-2020
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbols
Name of each exchange on which registered
Common stock, $0.10 par value per share
EBIX
Nasdaq Stock Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
As of November 6, 2020 the number of shares of common stock outstanding was 30,962,559.
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at September 30, 2020 and December 31, 2019
—
—
Series Y Convertible preferred stock, $0.10 par value, 350,000 shares authorized, no shares issued and outstanding at September 30, 2020 and no shares authorized, issue and outstanding at December 31, 2019
—
—
Common stock, $0.10 par value, 220,000,000 shares authorized, 30,526,793 issued and outstanding, at September 30, 2020, and 30,492,044 issued and outstanding at December 31, 2019
3,053
3,049
Additional paid-in capital
10,537
6,960
Retained earnings
683,131
618,503
Accumulated other comprehensive loss
(114,295)
(78,398)
Total Ebix, Inc. stockholders’ equity
582,426
550,114
Noncontrolling interest
48,144
49,331
Total stockholders’ equity
630,570
599,445
Total liabilities and stockholders’ equity
$
1,550,550
$
1,591,619
See accompanying notes to the condensed consolidated financial statements.
Condensed Consolidated Statements of Stockholders’ Equity
(unaudited)
(In thousands except for share figures)
Common Stock
Issued Shares
Amount
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Noncontrolling interest
Total
Balance, July 1, 2020
30,507,903
$
3,051
$
9,335
$
660,767
$
(132,469)
$
48,842
$
589,526
Net income attributable to Ebix, Inc.
—
—
—
24,682
—
—
24,682
Net loss attributable to noncontrolling interest
—
—
—
—
—
(698)
(698)
Cumulative translation adjustment
—
—
—
—
18,174
—
18,174
Vesting of restricted stock
18,890
2
(2)
—
—
—
—
Share based compensation
—
—
1,204
—
—
—
1,204
Common stock dividends paid, $0.075 per share
—
—
—
(2,318)
—
—
(2,318)
Balance, September 30, 2020
30,526,793
$
3,053
$
10,537
$
683,131
$
(114,295)
$
48,144
$
630,570
Common Stock
Issued Shares
Amount
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Noncontrolling interest
Total
Balance, January 1, 2020
30,492,044
$
3,049
$
6,960
$
618,503
$
(78,398)
$
49,331
$
599,445
Net income attributable to Ebix, Inc.
—
—
—
72,880
—
—
72,880
Net loss attributable to noncontrolling interest
—
—
—
—
—
(1,187)
(1,187)
Cumulative translation adjustment
—
—
—
—
(35,897)
—
(35,897)
Vesting of restricted stock
60,275
6
(6)
—
—
—
—
Exercise of stock options
30,000
3
633
—
—
—
636
Share based compensation
—
—
3,457
—
—
—
3,457
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested
Condensed Consolidated Statements of Stockholders’ Equity
(unaudited)
(In thousands except for share figures)
Common Stock
Issued Shares
Amount
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Noncontrolling interest
Total
Balance, July 1, 2019
30,529,840
$
3,053
$
5,189
$
582,913
$
(55,484)
$
51,882
$
587,553
Net income attributable to Ebix, Inc.
—
—
—
20,509
—
—
20,509
Net loss attributable to noncontrolling interest
—
—
—
—
—
(5,445)
(5,445)
Cumulative translation adjustment
—
—
—
—
(18,752)
—
(18,752)
Repurchase and retirement of commons stock
(45,000)
(5)
—
(1,975)
—
—
(1,980)
Vesting of restricted stock
6,558
1
(1)
—
—
—
—
Share based compensation
—
—
1,029
—
—
—
1,029
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested
(662)
—
(36)
—
—
—
(36)
Noncontrolling interest
—
—
398
—
—
(10,478)
(10,080)
Common stock dividends paid, $0.225 per share
—
—
—
(6,898)
—
—
(6,898)
Balance, September 30, 2019
30,491,207
$
3,049
$
6,208
$
599,148
$
(74,236)
$
49,147
$
583,316
See accompanying notes to the condensed consolidated financial statements.
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation
10,142
10,966
Provision (benefit) for deferred taxes
987
(5,880)
Share based compensation
3,457
2,451
Benefit for doubtful accounts
424
10,580
Amortization of right-of-use assets
4,644
5,167
Unrealized foreign exchange loss
—
321
Amortization of capitalized software development costs
2,493
1,931
Reduction of acquisition accruals
(3,308)
(17,124)
Cash paid for acquisition earn-out
(2,881)
—
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable
13,999
(22,052)
Receivables from service providers
5,849
9,012
Payables to service agents
(3,972)
(12,688)
Other assets
(7,988)
(5,947)
Accounts payable and accrued expenses
(10,620)
(4,062)
Accrued payroll and related benefits
3,316
(607)
Contract liabilities
(1,591)
(9,126)
Lease liabilities
(4,317)
(5,056)
Other liabilities
(10,563)
33,844
Net cash provided by operating activities
71,764
60,183
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired
(12,480)
(104,026)
Cash paid to from Paul Merchants for 10% stake in MTSS combined business
—
(4,925)
Capitalized software development costs
(4,617)
(4,126)
(Purchases) maturities of marketable securities
(20,609)
25,686
Capital expenditures
(1,464)
(5,869)
Net cash used in investing activities
(39,170)
(93,260)
Cash flows from financing activities:
Proceeds from revolving line of credit, net
1,364
13,500
Principal payments of term loan obligation
(15,063)
(11,298)
Repurchases of common stock
—
(12,952)
Proceeds from the exercise of stock options
636
—
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested
(1,841)
(36)
Dividend payments
(6,923)
(6,898)
Payments on short-term notes, net
—
6,023
Proceeds (payments) of debt obligations
7,187
(962)
(Payments) proceeds of working capital facility, net
(19,945)
31,120
Payments of financing lease obligations
(158)
(200)
Net cash (used) provided by financing activities
(34,743)
18,297
Effect of foreign exchange rates on cash
(7,222)
(2,397)
Net change in cash and cash equivalents, and restricted cash
(9,371)
(17,177)
Cash and cash equivalents, and restricted cash at the beginning of the period
111,369
149,681
Cash and cash equivalents, and restricted cash at the end of the period
$
101,998
$
132,504
Supplemental disclosures of cash flow information:
Interest paid
$
22,237
$
31,787
Income taxes paid
$
8,019
$
7,406
See accompanying notes to the condensed consolidated financial statements.
Supplemental schedule of noncash financing activities:
As of December 31, 2018 there were 200,000 shares totaling $8.8 million of share repurchases that were not settled until January 2019.
During the nine months ended September 30, 2020, there were 55,526 shares, totaling $1.8 million, used to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vesting.
Notes to Condensed Consolidated Financial Statements
Note 1: Description of Business and Summary of Significant Accounting Policies
Description of Business— Ebix, Inc., and its subsidiaries, (“Ebix” or the “Company”) is a leading international supplier of on-demand infrastructure exchanges to the insurance, financial, travel, payment remittances, and healthcare industries. In the insurance sector, the Company’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis using software-as-a-service ("SaaS") enterprise solutions in the areas of customer relationship management ("CRM"), front-end and back-end systems, and outsourced administrative and risk compliance. The Company's products feature fully customizable and scalable software solutions designed to streamline the way insurance and financial industry professionals manage distribution, marketing, sales, customer service, and accounting activities. With a "Phygital” strategy that combines physical distribution outlets in many Association of Southeast Asian Nations ("ASEAN") countries to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio of software and services encompasses domestic and international money remittance, foreign exchange ("Forex"), travel, pre-paid gift cards, utility payments, lending, and wealth management in India and other Southeast Asian markets. The Company has its headquarters in Johns Creek, Georgia and also conducts operating activities in Australia, Canada, India, New Zealand, Singapore, the United Kingdom, Brazil, Philippines, Indonesia, Thailand and United Arab Emirates. International revenue accounted for 69.3% and 68.7% of the Company’s total revenue for the nine months ended September 30, 2020 and 2019, respectively.
Summary of Significant Accounting Policies
Basis of Presentation—The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results that may be expected for future quarters or the full year of 2020. The condensed consolidated December 31, 2019 balance sheet included in this interim period filing has been derived from the audited financial statements at that date, but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Reclassification - There were certain prior year amounts that have been reclassified to be consistent with current year presentation within our financial statements, specifically with respect to the presentation of receivables from service providers and payables to service agents.
Restricted Cash - The carrying value of our restricted cash in current assets was $7.9 million and $35.1 million at September 30, 2020 and December 31, 2019, respectively. The September 30, 2020 balance consists of fixed deposits (many in the form of certificates of deposit) pledged with banks for issuance of bank guarantees and letters of credit related to its India operations.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated statement of financial position to the amounts shown in the Condensed Consolidated Statement of Cash Flows: