- Revenues of
$286.3 million - GAAP operating income of
$30.1 million and Non-GAAP operating income of$33.8 million - GAAP Diluted EPS of
$0.62 and Non-GAAP diluted EPS of$0.76 .
Ebix will host a conference call to review its results today at
Robin said, “Our year-over-year revenues grew in 7 of the 11 geographies that we operate in. On a year-over-year basis, US revenues grew 2%,
“Q1 2022 diluted EPS grew 24% sequentially from
Ebix delivered the following results for the first quarter of 2022:
Revenue: Q1 2022 revenue decreased 1% to
EbixCash total revenues decreased 2.7% year-over-year in Q1 2022. Excluding the prepaid gift card revenues, EbixCash revenues increased year-over-year by 30.7%. Insurance revenues worldwide increased 2.3% year-over-year in Q1 2022, and RCS revenues increased 8.3% year-over-year during Q1 2022.
Exchanges, including EbixCash and our worldwide insurance exchanges, continued to be Ebix’s largest channel, accounting for 94% of Q1 2022 revenues.
(dollar amounts in thousands) | |||||||
Channel | Q1 2022 | Q1 2021 | Change | ||||
EbixCash Exchanges | $ | 224,152 | $ | 230,347 | -2.7 | % | |
Insurance Exchanges | 43,764 | 42,770 | +2.3 | % | |||
RCS | 18,337 | 16,936 | +8.3 | % | |||
Total Revenue | $ | 286,253 | $ | 290,053 | -1.3 | % | |
Total Revenue on Constant Currency Basis | $ | 293,749 | $ | 290,053 | +1.0 | % |
Operating Income and Operating Cash: GAAP operating income for Q1 2022 of
Non-GAAP operating income for Q1 2022 accordingly decreased to
Cash generated from operations in Q1 2021 was
Earnings per Share: Q1 2022 GAAP diluted earnings per share increased 24% sequentially to
Our Q1 2022 diluted earnings per share were impacted adversely by the year-over-year increase in interest expense of
Net Income: Q1 2022 GAAP net income increased 24.6% sequentially to
Q2 2022 Diluted Share Count: As of today, Ebix expects its diluted share count for Q2 2022 to be approximately 30.8 million.
Dividend: Ebix paid its regular quarterly dividend of
“At Ebix we have had to deal with our share of pain, with the Omicron virus having an impact especially in the first two months of 2022, but the results that we have produced in the first quarter provide positive evidence that Ebix is beginning to see the long-expected rebound from the COVID-19 global pandemic.”
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.
Q1 2022
Net Income | Diluted EPS | |||||
Q1 2022 GAAP Net Income | ||||||
Q1 2022 GAAP Operating Income | ||||||
Non-GAAP Adjustments: | ||||||
Amortization of Intangibles (1) | ||||||
Stock-Based Compensation (1) | ||||||
One-time Legal and Professional Services Costs (2) | ||||||
Non-operating expense (3) | ||||||
Income Tax Effects of Non–GAAP Adjustments (4) | ( | ) | ( | ) | ||
Total Non-GAAP Adjustments (Operating Income) | ||||||
Total Non-GAAP Adjustments (Net Income) | ||||||
First Quarter 2022 Non-GAAP Net Income | ||||||
First Quarter 2022 Non-GAAP Operating Income |
(1) Adjustments related to amortization of acquired intangibles and stock-based compensation recognized during the periods for GAAP purposes.
(2) Non-recurring legal and professional services costs recorded during the period for GAAP purposes.
(3) Non-recurring non-operating expense that is unrelated to any operating activities.
(4) Non-GAAP adjustment is based on the Q3 2021 effective tax rate, which reflects currently available information and could be subject to change.
Non-GAAP Financial Measures and Other Metrics
This press release contains the following non-GAAP financial measures: non-GAAP net income, non-GAAP operating income and non-GAAP diluted earnings per share. Non-GAAP operating income , non-GAAP net income and non-GAAP diluted earnings per share from operations exclude amortization of intangibles, stock-based compensation, as well as certain non-recurring expenses that are not associated with our ongoing operating business activities.
Ebix believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Ebix’s financial condition and results of operations. The Company’s management uses these non-GAAP measures and other metrics to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation, and for budgeting and planning purposes. The Company believes that the use of these non-GAAP financial measures and other metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures and other metrics to investors.
Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Ebix urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate the Company’s business.
Conference Call Details:
Call Date/Time: | |
Call Dial-In: | +1-877-837-3909 or 1-973-409-9690; Call ID # 3375968 |
Live Audio Webcast: | https://edge.media-server.com/mmc/p/naksorck |
Audio Replay URL: | http://www.ebix.com/result_22_q1 after |
About
With approximately 200 offices across 6 continents,
With a "Phygital” strategy that combines over 650,000 physical distribution outlets in many
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 Company’s 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
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
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 for the year ended
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
You may obtain our
CONTACT:
678 -281-2027 or IR@ebix.com
Catalyst Global - 212-924-9800 or ebix@catalyst-ir.com
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended | |||||||
2022 | 2021 | ||||||
Operating revenue | $ | 286,253 | $ | 290,053 | |||
Operating expenses: | |||||||
Cost of services provided | 210,843 | 220,358 | |||||
Product development | 10,258 | 9,545 | |||||
Sales and marketing | 3,765 | 3,827 | |||||
General and administrative, net | 26,913 | 21,337 | |||||
Amortization and depreciation | 4,364 | 3,800 | |||||
Total operating expenses | 256,143 | 258,867 | |||||
Operating income | 30,110 | 31,186 | |||||
Interest income | 62 | 8 | |||||
Interest expense | (10,251 | ) | (8,079 | ) | |||
Non-operating (loss) income | (734 | ) | (1 | ) | |||
Foreign currency exchange gain (loss) | 894 | (625 | ) | ||||
Income before income taxes | 20,081 | 22,489 | |||||
Income tax (expense) benefit | (1,704 | ) | (1,202 | ) | |||
Net income including noncontrolling interest | 18,377 | 21,287 | |||||
Net loss attributable to noncontrolling interest | (814 | ) | (304 | ) | |||
Net income attributable to | $ | 19,191 | $ | 21,591 | |||
Basic earnings per common share attributable to | $ | 0.62 | $ | 0.71 | |||
Diluted earnings per common share attributable to | $ | 0.62 | $ | 0.70 | |||
Basic weighted average shares outstanding | 30,712 | 30,558 | |||||
Diluted weighted average shares outstanding | 30,762 | 30,731 |
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
2022 | 2021 | ||||||
ASSETS | (Unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 75,943 | $ | 99,625 | |||
Receivables from service providers | 1,981 | 1,352 | |||||
Short-term investments | 16,194 | 16,463 | |||||
Restricted cash | 10,100 | 9,080 | |||||
Fiduciary funds - restricted | 1,799 | 2,046 | |||||
Trade accounts receivable, less allowances of | 151,793 | 153,609 | |||||
Other current assets | 81,759 | 84,389 | |||||
Total current assets | 339,569 | 366,564 | |||||
Property and equipment, net | 61,740 | 54,359 | |||||
Right-of-use assets | 9,853 | 10,051 | |||||
931,558 | 939,249 | ||||||
Intangibles, net | 44,134 | 46,795 | |||||
Indefinite-lived intangibles | 16,647 | 16,647 | |||||
Capitalized software development costs, net | 23,253 | 21,565 | |||||
Deferred tax asset, net | 101,100 | 84,514 | |||||
Other assets | 32,165 | 33,505 | |||||
Total assets | $ | 1,560,019 | $ | 1,573,249 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 75,785 | $ | 86,181 | |||
Payables to service agents | 4,989 | 6,296 | |||||
Accrued payroll and related benefits | 10,367 | 11,360 | |||||
Working capital facility | 1,824 | 5,607 | |||||
Fiduciary funds - restricted | 1,799 | 2,046 | |||||
Revolving line of credit | 439,402 | — | |||||
Short-term debt | 1,122 | 1,954 | |||||
Current portion of long term debt and financing lease obligations, net of deferred financing costs of | 204,939 | 28,577 | |||||
Contract liabilities | 41,033 | 33,164 | |||||
Lease liability | 3,366 | 3,173 | |||||
Other current liabilities | 28,844 | 26,837 | |||||
Total current liabilities | 813,470 | 205,195 | |||||
Revolving line of credit | — | 439,402 | |||||
Long term debt and financing lease obligations, less current portion, net of deferred financing costs of | 266 | 184,676 | |||||
Contingent liability for accrued earn-out acquisition consideration | 2,516 | 2,557 | |||||
Contract liabilities | 8,557 | 8,193 | |||||
Lease liability | 6,844 | 7,139 | |||||
Deferred tax liability, net | 1,150 | 1,150 | |||||
Other liabilities | 21,957 | 25,383 | |||||
Total liabilities | 854,760 | 873,695 | |||||
Stockholders’ equity: | |||||||
Preferred stock, | — | — | |||||
Series Y Convertible preferred stock, | — | — | |||||
Common stock, | 3,072 | 3,068 | |||||
Additional paid-in capital | 15,994 | 15,068 | |||||
Retained earnings | 776,081 | 759,208 | |||||
Accumulated other comprehensive loss | (133,306 | ) | (122,022 | ) | |||
661,841 | 655,322 | ||||||
Noncontrolling interest | 43,418 | 44,232 | |||||
Total stockholders’ equity | 705,259 | 699,554 | |||||
Total liabilities and stockholders’ equity | $ | 1,560,019 | $ | 1,573,249 |
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended | |||||||
2022 | 2021 | ||||||
Cash flows from operating activities: | |||||||
Net income attributable to | $ | 19,191 | $ | 21,591 | |||
Net loss attributable to noncontrolling interest | (814 | ) | (304 | ) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Amortization and depreciation | 4,364 | 3,800 | |||||
Provision (benefit) for deferred taxes | (17,583 | ) | (3,056 | ) | |||
Share-based compensation | 964 | 1,358 | |||||
(Benefit) provision for doubtful accounts | (360 | ) | (2,060 | ) | |||
Amortization of right-of-use assets | 892 | 1,295 | |||||
Amortization of capitalized software development costs | 755 | 813 | |||||
Changes in assets and liabilities, net of effects from acquisitions: | |||||||
Accounts receivable | 901 | (2,339 | ) | ||||
Receivables from service providers | (629 | ) | 2,275 | ||||
Payables to service agents | (1,307 | ) | (1,615 | ) | |||
Other assets | 3,114 | (6,768 | ) | ||||
Accounts payable and accrued expenses | (9,357 | ) | (11,277 | ) | |||
Accrued payroll and related benefits | (1,159 | ) | (1,076 | ) | |||
Contract liabilities | 8,370 | 4,517 | |||||
Lease liabilities | (813 | ) | (944 | ) | |||
Other liabilities | (962 | ) | 2,368 | ||||
Net cash provided by operating activities | 5,567 | 8,578 | |||||
Cash flows from investing activities: | |||||||
Capitalized software development costs | (2,666 | ) | (1,683 | ) | |||
Maturities (purchases) of unrestricted marketable securities, net | 457 | 2,335 | |||||
Capital expenditures | (9,303 | ) | (270 | ) | |||
Net cash (used in) provided by investing activities | (11,512 | ) | 382 | ||||
Cash flows from financing activities: | |||||||
Principal payments of term loan obligation | (8,402 | ) | (5,648 | ) | |||
Forfeiture of certain shares to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vested | (34 | ) | — | ||||
Dividend payments | (2,318 | ) | (2,321 | ) | |||
Payments of debt obligations, net | (832 | ) | (62 | ) | |||
Payments of working capital facility, net | (3,707 | ) | (4,589 | ) | |||
Payments of financing lease obligations, net | (53 | ) | (47 | ) | |||
Net cash used in financing activities | (15,346 | ) | (12,667 | ) | |||
Effect of foreign exchange rates on cash | (1,088 | ) | (1,379 | ) | |||
Net change in cash and cash equivalents, and restricted cash | (22,379 | ) | (5,086 | ) | |||
Cash and cash equivalents, and restricted cash at the beginning of the period | 114,764 | 120,213 | |||||
Cash and cash equivalents, and restricted cash at the end of the period | $ | 92,385 | $ | 115,127 | |||
Supplemental disclosures of cash flow information: | |||||||
Interest paid | $ | 11,006 | $ | 7,505 | |||
Income taxes paid | $ | 15,379 | $ | 9,695 |
Source:
2022 GlobeNewswire, Inc., source