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Ebix Q1 Revenues Rose 11% to a Record $71.1M and Diluted EPS Rose 30% to $0.67

JOHNS CREEK, GA--(Marketwired - May 9, 2016) - Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, today reported results for its first quarter ended March 31, 2016. Ebix will host a conference call to review its results today at 11:00 a.m. EDT (details below).

Revenues: Total Q1 2016 revenue rose 11% to $71.1 million compared to Q1 2015 revenue of $63.8 million and rose 1% over Q4 2015 revenue of $70.2 million. The revenue improvements reflected growth in the Company's Exchange channel, including revenues from its contract to deploy and manage an insurance exchange for electronic placement of insurance across the London marketplace, as well as higher Risk Compliance Solutions revenue.

On a constant currency basis, Ebix Q1 2016 revenue increased 14% to $72.8 million as compared to $63.8 million in Q1 2015. Ebix's Exchange channel continued to be the largest channel for Ebix accounting for 70% of Q1 2016 revenues.

(dollar amounts in thousands)
Channel Q1 2016 Q1 2015 Change
Exchanges $ 50,086 $ 46,678 +7 %
Risk Compliance Solutions (RCS) 16,751 12,175 +38 %
Broker Solutions 3,212 3,736 -14 %
Carrier Systems 1,017 1,164 -13 %
Total Revenue $ 71,066 $ 63,753 +11 %
Total Revenue on Constant Currency Basis $ 72.8M $ 63.8M +14 %

Earnings per Share: Q1 2016 diluted earnings per share increased 30% to $0.67 compared to $0.51 in Q1 2015, reflecting higher net income and the benefit of ongoing share repurchase activity. Ebix's weighted average diluted shares outstanding decreased to 33.3 million in Q1 2016 compared to 36.0 million in Q1 2015 and 33.9 million in Q4 2015.

Operating Cash: Cash generated from operations rose to $10.5 million in Q1 2016 compared to ($7.3 million) in Q1 2015. Q1 2015 reflected a one-time cash payment of $20.5 million for the resolution of an IRS audit of Ebix's income tax returns for 2008 through 2012, while Q1 2016 included tax payments of around $7 million.

Operating Income and Margins: Q1 2016 operating margins rose to 35% compared to 32% in Q1 2015. Operating income for Q1 2016 rose 21% to $24.8 million compared to $20.5 million in Q1 2015.

Net Income: Q1 2016 net income rose 21% to $22.2 million, compared to Q1 2015 net income of $18.3 million. The improvement principally reflected the benefit of both higher revenues as well as higher gross and operating margins.

Share Repurchases: In Q1 2016 Ebix repurchased 465,560 shares of its outstanding common stock for aggregate cash consideration of $14.0 million. Subsequent to March 31 and through May 6, 2016 the Company has repurchased an additional 217,487 shares for cash consideration of $9.1 million.

Q2 2016 Diluted Share Count: As of today, Ebix expects its Q2 2016 diluted share count to be approximately 33.0 million.

Dividend: Ebix paid its regularly quarterly dividend of $0.075 per share in Q1 2016 for a total of $2.4 million.

Ebix Chairman, President and CEO Robin Raina said, "Ebix entered 2016 as fundamentally stronger and a more diversified platform with an increasing array of growth opportunities. Our Q1 results reflect that strength along with our success in advancing some of our major growth initiatives such as PPL and our e-governance initiatives in India. Importantly, our focus on cost management and operational discipline enabled us to improve our operating margin to 35% at the same time we drove revenue increases."

Robin added, "Ebix today has scale and momentum on its side and has emerged as a serious contender for very large and potentially transformative contracts. We believe that Ebix's recent achievements, such as our launch of a new insurance exchange in London, have created important precedents for the ongoing transformation of the worldwide insurance industry, and we are extremely well positioned to play a leadership role in future large scale projects."

"We remain focused on delivering continued growth in our business, along with a modest dividend, and we continue to see the potential for excellent long-term returns from the ongoing repurchase of our common stock." Robin said, "In addition to organic growth initiatives, we also intend to make further strategic acquisitions in complementary geographies and areas of domain expertise. Our preference is to finance such initiatives with available cash and increased bank borrowing, rather than equity, unless there is a compelling specific strategic reason to do otherwise. Following these core guideposts, we believe Ebix has the potential to deliver substantial returns to our shareholders over the long term."

Conference Call Details:

Call Date/Time: Monday, May 9, 2016 at 11:00 a.m. EST
Call Dial-In: +1-877-837-3909 or 1-973-409-9690; Call ID # 2124802
Live Audio Webcast:
Audio Replay URL: a>