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Ebix Inc (EBIX)

  • Tue, Jan. 6, 10:15 AM
    • EBIX says it has "reached a resolution with the Internal Revenue Service with respect to the previously disclosed audit of Ebix's income tax returns for the taxable years 2008 through 2012."
    • No "adverse assessments or deficiencies were asserted with respect to any recurring operating transactions." The assessment is expected to have a ($1.4M) impact on Q4 net income, after taking into account "previously established and disclosed provisions for uncertain tax positions."
    • Shares have jumped to their highest levels since the June 2013 Goldman deal termination.
  • Dec. 2, 2014, 2:46 PM
    • Ebix (EBIX -0.2%) has acquired Oakstone Publishing, a provider of "continuing education, certification materials for physicians, dentists and allied healthcare professionals, as well as wellness resources for organizations." Terms are undisclosed; the deal is expected to be immediately accretive.
    • Ebix plans to integrate Oakstone with its A.D.A.M. health info exchange unit. The company notes Oakstone "sold a continuing education product to approximately one in 10 U.S. doctors over the last six years," and that it gets over 80% of its revenue from services paid for by medical professionals.
    • Other recent Ebix acquisitions: Vertex, Healthcare Magic.
    • Yesterday: Ebix strikes deal with acitivist
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  • Dec. 1, 2014, 10:04 AM
    • As part of a standstill agreement with activist Barrington Capital (owns a ~1.6% stake), Ebix (EBIX +0.3%) has added two independent directors - Barrington CEO James Mitarotonda and defense/satellite industry vet Joseph R. Wright - to its board.
    • Three weeks ago, Barrington issued an open letter criticizing Ebix's board oversight (among other things), and nominated four directors. Barrington has now agreed to back Ebix's board slate at the company's 2014 annual meeting.
    | 1 Comment
  • Nov. 11, 2014, 3:51 PM
    • Activist Barrington Capital says it owns "a significant stake" in EBIX, and declares "it is imperative that Ebix promptly take action to improve its board oversight in order to ensure that shareholder interests are protected." The firm has named four board candidates, and wants to talk with management about them.
    • Barrington: "We believe that the Company's disappointing share price performance is attributable to questions and uncertainty regarding the Company that have been weighing heavily on the Company's stock price. While we have followed many public companies in our 14-year history, we cannot recall one that has been the subject of so many investigations and lawsuits."
    • In addition to criticizing its board oversight, Barrington asserts Ebix has "provided shareholders with limited visibility regarding its tax structure," and could "do a much better job growing its revenues organically." It also wants "more clarity and better disclosure" regarding various investigations, and larger buybacks.
    • Shares are at their highest levels since May.
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  • Nov. 7, 2014, 8:02 AM
    • EBIX uses its Q3 report to state it's targeting 2015 revenue of $250M-$260M. The sole analyst estimate is at $210.9M.
    • Q3 sales were hurt by a "lower transaction count in the Property & Casualty space in the Asia-Pacific region," but deal activity is said to be strong. Ebix's core Exchange business saw revenue rise 3% Y/Y to $41.8M; all other businesses (Broker Systems, Risk Compliance, Carrier Systems) saw revenue fall 7% to $9M.
    • GAAP opex fell 8% Y/Y to $29.1M, providing a boost to EPS. $14.3M in buybacks also helped.
    • Q3 results, PR
  • Nov. 7, 2014, 7:35 AM
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  • Nov. 7, 2014, 7:32 AM
    • Ebix (NASDAQ:EBIX): Q3 EPS of $0.47 beats by $0.11.
    • Revenue of $50.8M (+1.0% Y/Y) misses by $0.95M.
    • Press Release
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  • Nov. 6, 2014, 5:30 PM
  • Nov. 3, 2014, 12:13 PM
    • Connecticut-based Vertex provides software for defining/publishing life and annuity insurance product info, and several data and software development tools for insurance firms. The company also provides management consulting services.
    • Ebix (EBIX -0.3%) says it acquired Vertex to establish "a non-aligned worldwide strategic management consulting practice targeted at the insurance, healthcare and financial industries all across the world." Ebix paid with a mixture of cash on hand and bank credit - the price is undisclosed - and says the deal is expected to boost EPS by $0.10-$0.15/year.
    • Vertex will be renamed Ebix Consulting. Founder Steven Wilson will lead the unit as an Ebix SVP.
  • Oct. 16, 2014, 9:27 AM
    • As part of its stated goal of buying back $80M worth of shares over a 12-month period ending in August 2015, EBIX has repurchased 1.64M shares since Aug. 1.
    • At current levels, the buybacks would've cost $22.1M. Ebix's diluted share count is now at ~37M, down from 38.6M at the end of Q2.
  • Aug. 25, 2014, 2:03 PM
    • Ebix (EBIX +3.9%) says it plans to buy back up to $80M worth of shares over the next 12 months. The company also states it has repurchased 471K shares since June 30, bringing its diluted count down to 38.2M.
    • Ebix had only $34.3M in cash and short-term investments at the end of Q2. Debt totaled $37.1M. A recently-closed $150M credit facility could be used on buybacks, at the cost of increasing debt.
  • Aug. 8, 2014, 5:40 PM
    • Top gainers, as of 5:15 p.m.: BZH +11.7%. MED +10.9%. ELX +9.8%. MM +9.6%. SHOR +5.7%.
    • Top losers, as of 5:15 p.m.: EBIX -7.7%. VLCCF -7.4%. WGL -6.6%. POWR -5.4%. TRQ -5.0%.
  • Aug. 8, 2014, 7:32 AM
    • Ebix (NASDAQ:EBIX): Q2 EPS of $0.35 misses by $0.03.
    • Revenue of $51.5M (+1.0% Y/Y) misses by $0.5M.
    • Press Release
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  • Aug. 7, 2014, 5:36 PM
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  • Aug. 7, 2014, 5:30 PM
  • Aug. 6, 2014, 10:46 AM
    • A slew of banks have jointly provided EBIX with a 5-year credit facility worth $150M. The company has "the option to request an increase in the Credit Facilities of up to [$200M], without Lender approval, subject to receipt of additional lender commitments."
    • $33M of the funds will be used to pay off an existing credit line; the remainder will be available to finance "growth and share repurchase initiatives."
    • The insurance software vendor, which is still dealing with multiple legal/regulatory probes, had $6.1M in net cash as of May 9.
EBIX vs. ETF Alternatives
Company Description
Ebix, Inc., provides a series of application software products for the insurance industry from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries.