David Collins_

Ebix, Inc.: Likely to Beat Expectations

I am guessing the not one but two recent acquisitions (one small, one large) will bolt on at least another $25mm in top-line revenue before any cross-selling or strategic synergies and provide substantial leverage to the bottom-line.
Ebix seems very adept at streamlining operations and driving margins so I would also expect these businesses can be optimized as they are integrated.

It would also seem that the company's growing scale will work to its advantage in securing new clients or larger-scale contracts as well as targeting larger possible acquisitions in what still seems a highly fragmented and technologically backward industry.

Zach's thesis makes perfect sense to me.

The Long Case for Ebix

at 13x trailing EPS, with internal growth and acquisition growth, and bigger scale paving the way for greater financial leverage and greater market clout/credibility before large insurance companies, the EBIX story still seems in the first inning - despite the amazing performance so far.

David (remaining Long EBIX)

The Long Case for Ebix

EBIX Q2 EPS of $1.62; 1H EPS of $3.01; declares 3-1 Split.

Company seems unstoppable...

DCC

The Long Case for Ebix

11-14-06 Ebix Q3 EPS Rises to a Record $0.53 Per Share;
2006 Nine Months EPS of $1.37 Match Full Year EPS for 2005...

biz.yahoo.com/bw/06111...

The Long Case for Ebix

EBIX Holder Addendum:

Ebix has 3.1mm diluted shares out and 2.7 mm shares outstanding.

Of this, BRiT Insurance Holdings of the UK (a large EBIX customer) owns 930,163 shares (33.7%) and its affiliate, CF Epic (of which BRiT owns a 78% equity interest) owns 222,223 shares (8.1%).

That is a total of 1,152,386 shares or (41.8%). Of note, these shares were purchased from the company in private financings that helped to fund acquisitons by the Company. The placements were done at market prices at the time of the deal, with no discounts or fees.

Add to that position a longtime European Holder - Rennes Foundation, with 347,123 shares (12.6%) and you have well over half the shares out controlled by two/three entities, or a total of 1,499,509 shares (54.4%).

U.S. fundamental holders include:
Kennedy Capital in St. Louis 102,921 shares @ 6/30/06
Wellington Management in Boston 57,500 shares @ 6/30/06
(Perkins Capital shows 15,250 shares so it's hard to know if they are coming or going - and I've not included them in the total below)

For a total of 1,659,930 shares held by these entities. This helps explain the liquidity constraint EBIX faces as little more than 1 mm shares remain outside these holders.

DCC