Tue, Feb. 17, 2:00 PM
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.
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.
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
Aug. 7, 2014, 5:36 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.
Jun. 4, 2014, 12:48 PM
May. 27, 2014, 12:26 PM
- Ebix (EBIX +1%) has bought Healthcare Magic, owner of a medical advisory site that allows users to ask questions to a network of 15K+ doctors. The company is paying in $6M in cash and up to $12.5M in future earn-outs.
- Healthcare Magic averages 130 queries/hour, supports lab report/picture attachments for questions, and charges for its service on both a per-usage and subscription basis. It also offers a B2B service to employers; clients include Vodafone and HSBC.
- Ebix says it plans to offer Healthcare Magic's services to hospital clients to enable private networks and involving doctors and patients, and says it'll eventually launch a "cloud-based global medical treatment exchange for patients and healthcare providers with integrated phone and video based calling services."
Sep. 24, 2013, 5:42 PM
Sep. 19, 2013, 9:59 AM
- The SA contributor, which has harshly criticized Ebix's (EBIX -4%) accounting more than once in the past, now says it has "discovered material and growing holes in Ebix Singapore's Balance Sheets and Statements of Cash Flows".
- Among other things, Gotham asserts there's a $27M "unexplained irregularity" in the unit's 2011 related party loan liability, $44M worth of cash flow irregularities from 2009-2011, and a $64M gain from a "sham transaction" involving two Ebix subsidiaries.
- Gotham also says it has uncovered major accounting issues at Ebix's Swedish unit. It believes Ebix's Swedish earnings "are less than 1% of the $6.3 million and $7.0 million pre-tax earnings claimed in Ebix's 2011 & 2012 10K filings," and points out the unit was recently liquidated due to a failure to make timely filings.
- The author suspects auditor Cherry Bekaert failed to do its job, and believes Ebix "meets the requirements for a default on its credit facilities and loans."
- Ebix is being investigated by the SEC and a U.S. Attorney office, and reportedly the FBI.
Aug. 14, 2013, 11:16 AM
- Ebix's (EBIX +5.9%) A.D.A.M. health information/portal unit has created cloud-based medical training programs optimized for touch-enabled Intel ultrabooks.
- 32.5% of Ebix's float was shorted as of July 31, as short-sellers bet the company's legal issues (I, II) will send shares lower still. Those who shorted Ebix before its Goldman deal was terminated are staring at huge profits.
- Ebix sold off last Friday after posing mixed Q2 results.
Aug. 9, 2013, 11:37 AM
- Embattled Ebix (EBIX -8%) is selling off after slightly beating Q2 EPS estimates, and missing revenue estimates by $1M.
- Ebix posted 7% Y/Y sales growth in Q2, a slowdown from Q1's 20%.
- Op. margin was 37.8%, +110 bps Q/Q and +110 bps Y/Y, in spite of rising legal costs.
- Only $2.5M was spent on buybacks. Ebix has $102.9M remaining under its buyback authorization. $5.6M was spent to pay down bank debt; net debt now stands at $30.8M.
- Ebix is being investigated the SEC and the Atlanta U.S. Attorney's office, and reportedly by the FBI. Shares crashed on Tuesday thanks to Bloomberg's FBI report, but subsequently recouped a majority of their losses.
- Q2 results, PR
Aug. 9, 2013, 9:17 AM
Aug. 6, 2013, 6:43 PM
- Ebix (EBIX -7.5%) wound up erasing over half its intraday losses. An official response provided by the company regarding a Bloomberg report (I, II) about an FBI money laundering investigation may have helped. Ebix reiterates its claim that money laundering allegations made against it are "false, inaccurate and likely to cause significant financial harm to Ebix shareholders."
- Ebix criticized Bloomberg in a similar manner back in Nov. '12, in response to a report about an SEC accounting probe. Six months later, it was learned the SEC's probe had been upgraded to a formal investigation.
- The U.S. Attorney's Office in Atlanta has not yet commented on the situation.
- Ebix has faced numerous accusations regarding its accounting practices. SA contributor Sunil Shah argues media coverage (including Bloomberg's) has been hyperbolic.
Aug. 6, 2013, 1:54 PM
- The U.S. government is investigating Ebix (EBIX -24.4%) for possible money laundering, Bloomberg reports. Shares have plunged below $9 on the news.
- A Goldman affiliate terminated its planned acquisition of Ebix in June following news of a U.S. Attorney investigation. Ebix is also being investigated by the SEC.
- SA contributor Gotham City Research has been taking aim at Ebix's accounting, and so has short-seller Marc Cohodes.
EBIX vs. ETF Alternatives
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.
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