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8-K - FORM 8-K - EBIX INC | c15819e8vk.htm |
EX-10.44 - EXHIBIT 10.44 - EBIX INC | c15819exv10w44.htm |
Exhibit 99.1
Ebix Reports Elimination of Convertible Debt
ATLANTA, GA April 18, 2011 Ebix, Inc. (NASDAQ: EBIX), a leading international supplier
of On-Demand software and E-commerce services to the insurance industry, today reported today the
status of its recently increased share repurchase program, its previously issued convertible debt
instruments and its cash in the bank.
Convertible Debt:
The Company reported that as of April 18, 2011 the Companys short-term convertible debt has been
eliminated completely. The Company made a payment of $6,760,648 in cash today to Rennes Foundation
towards that effect, to cover for the principal amount of $5,000,000 and the conversion gain of
$1,760,648.
Share Repurchases:
As regarding the Companys share repurchases, in the year 2011, the Company announced that it has
repurchased 280,273 shares of Ebix common stock for an aggregate consideration in the amount of
$6,286,524 million, representing an average price of $22.44 per share.
Cash:
The Company started the year 2011 with $23.4 million of cash. In the year 2011, the Company
continues to generate strong cash flows and as of now has used that cash in the following ways in
2011
| Paid $6.76 million of cash to settle outstanding convertible debt, |
| Paid $6.29 million to repurchase shares of our common stock. |
| Paid $1.38 million for the investment banking fee for the ADAM acquisition |
| Paid $0.38 million towards earn out for acquisition of MCN |
After using $14.81 million of cash for the above in 2011, the Company still had approximately $30
million of cash as of today.
Safe Harbor for Forward Looking Statements under the Private Securities Litigation Reform Act of
1995 This press release contains various forward looking statements and information that are
based on managements beliefs, as well as 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 Companys products by the market and
managements plans and objectives. The Company has tried to identify such forward looking
statements by use of words such as expects, intends, anticipates, plans, believes,
will, should, and similar expressions, but these words are not the exclusive means of
identifying such statements. Such statements are subject to various risks, uncertainties and other
factors which could cause actual results to vary materially from those expressed in, or implied by,
the forward looking statements. Such risks, uncertainties and other factors include the extent to
which the Companys new products and services can be successfully developed and marketed, the
integration and other risks associated with recent and future acquisitions, the willingness of
independent insurance agencies to outsource their computer and other processing needs to third
parties, the Companys ability to continue to develop new products to effectively address market
needs in an industry characterized by rapid technological change, the Companys dependence on the insurance industry (and in particular independent agents), the highly competitive and rapidly changing automation systems market, the Companys
ability to effectively protect its applications software and other proprietary information, the
Companys ability to attract and retain quality management, and software, technical sales and other
personnel, the potential negative impact on the Companys outsourcing business in India from
adverse publicity and possible governmental regulation, the risks of disruption of the Companys
Internet connections or internal service problems, the possibly adverse effects of a substantial
increase in volume of traffic on the Companys website, mainframe and other servers, possible
security breaches on the Companys website and the possible effects of insurance regulation on the
Companys business. Certain of these, as well as other, risks, uncertainties and other factors, are
described in more detail in Ebixs periodic filings with the Securities and Exchange Commission,
including the companys annual report on form 10-K for the year ended December 31, 2010, included
under Item 1. BusinessRisk Factors. Except as expressly required by the federal securities
laws, the Company undertakes no obligation to update any such factors or to publicly update any of
the forward looking statements contained herein to reflect future events or developments or changed
circumstances or for any other reason.
About Ebix
A leading international supplier of On-Demand software and E-commerce services to the insurance
industry, Ebix, Inc., (NASDAQ:EBIX) provides end to end solutions ranging from infrastructure
Exchanges, carrier systems, agency systems and BPO services to custom software development for all
entities involved in the insurance industry.
With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India, China, Japan and
Canada, Ebix powers multiple exchanges across the world in the field of life, annuity, health and
property & casualty insurance, while conducting in excess of $100 billion in insurance premiums on
its platforms. Through its various SaaS based software platforms, Ebix employs hundreds of
insurance and technology professionals that provide products, support and consultancy to thousands
of customers on six continents. Ebixs focus on quality has enabled it to be awarded Level 5
status of the Carnegie Mellon Software Engineering Institutes Capability Maturity Model (CMM).
Ebix has also earned ISO 9001:2000 certification for both its development and BPO units in India.
For more information, visit the Companys website at www.ebix.com
CONTACT:
Aaron Tikkoo
678-281-2027 or atikkoo@ebix.com
Aaron Tikkoo
678-281-2027 or atikkoo@ebix.com