Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of
On-Demand software and E-commerce services to the insurance,
financial, healthcare and e-learning industries, today provided an
update on its share repurchases and the proposed stock split.
Ebix announced that its shareholders have
approved by a wide margin an increase in the Company’s Authorized
shares to 220 million from 120 million. Approval for the increase
in authorized shares was required to provide a sufficient number of
authorized shares to effectuate a split of Ebix’s common stock
approved by the Company’s Board of Directors.
While Ebix still intends to implement a split of
its common stock, in light of the decline in Ebix’s share price
since the end of September, the Company has elected to delay such
action until its share price has rebounded to a level where a stock
split would result in a higher post-split share price.
Additionally, the Company may consider implementing an alternative
stock split ratio, such as two-, three- or four-for one, depending
on the prevailing share price, market conditions and other
factors.
Ebix also issued an update on its Share
repurchase plan while declaring that since October 1, 2018, the
Company has repurchased 966,773 shares of its outstanding common
stock for an aggregate amount of $47.4 million. Based on these
repurchases as of today, Ebix expects its diluted share count for
Q1 2019 to be approximately 30.65 million.
Robin Raina, Chairman of the Board, president
& CEO said, "Despite Ebix’s excellent long-term outlook and
strong operating performance, including record third quarter
revenue and operating cash flow, we have experienced a substantial
decrease in our market value over the past few months. As a result
of the share price decline, the Board is delaying action on a stock
split until further notice and also considering other possible
ratios.”
Robin added, “Further, we believe Ebix’s current
share price does not adequately reflect the company’s current or
future value and therefore presents a very attractive opportunity
to pursue opportunistic share repurchases. From our past
experiences, we have learned that the positive side of share price
volatility is the opportunity it can provide to execute accretive
share repurchases that help build long-term shareholder value. We
see share repurchases as highly accretive for our EPS and
shareholders, and thus intend to keep buying our own stock back,
with the intent of retiring the stock and reducing our diluted
share count.”
Ebix has a clear and successful track record
with respect to opportunistic repurchase of its shares using cash
from operations and bank borrowings, having repurchased 12.8
million shares over the last 8 years. The stock split concept is
intended to offset the impact of ongoing share repurchase activity
in order to enhance liquidity and make Ebix’s shares more
attractive to broader base of potential investors.
About Ebix, Inc.With 50+
offices across 5 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors
to provide On-Demand software and E-commerce services to the
insurance, financial, healthcare and e-learning industries. In the
Insurance sector, the Company’s main focus is to develop and deploy
a wide variety of insurance and reinsurance exchanges on an
on-demand basis, while also, providing Software-as-a-Service
("SaaS") enterprise solutions in the area of CRM, front-end &
back-end systems, outsourced administrative and risk compliance,
across the world.
With a "Phygital” strategy that combines 260,000
physical distribution outlets in many Southeast Asian Nations
(“ASEAN”) countries, to an Omni-channel online digital platform,
the Company’s EbixCash Financial exchange portfolio encompasses
leadership in areas of domestic & international money
remittance, Forex, travel, pre-paid & gift cards, utility
payments, lending etc., in an emerging country like India. The
Company’s Forex Exchange has an approximate 70% market share of
India’s airport Foreign Exchange business encompassing 25
international airports like Delhi, Mumbai, Bangalore, Chennai and
Kolkata International airports, while conducting over 1 million
transactions per annum. EbixCash, through its travel portal
Via.com, is also one of Southeast Asia’s leading travel exchanges
with over 110,000 distribution outlets and 8,000 corporate clients
processing over 24.5 million transactions every year. For further
details, visit www.ebixcash.com
Through its various SaaS-based software
platforms, Ebix employs thousands of domain-specific technology
professionals to provide products, support and consultancy to
thousands of customers on six continents. For more information,
visit the Company’s website at www.ebix.com
SAFE HARBOR REGARDING FORWARD-LOOKING
STATEMENTSAs used herein, the terms “Ebix,” “the Company,”
“we,” “our” and “us” refer to Ebix, Inc., a Delaware corporation,
and its consolidated subsidiaries as a combined entity, except
where it is clear that the terms mean only Ebix, Inc.
The information contained in this Press Release
contains forward-looking statements and information within the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. This
information includes 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 Company's products by the market, and
management's plans and objectives. In addition, certain statements
included in this and our future filings with the Securities and
Exchange Commission ("SEC"), in press releases, and in oral and
written statements made by us or with our approval, which are not
statements of historical fact, are forward-looking statements.
Words such as "may," "could," "should," "would," "believe,"
"expect," "anticipate," "estimate," "intend," "seeks," "plan,"
"project," "continue," "predict," "will," "should," and other words
or expressions of similar meaning are intended by the Company to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements are found at various places throughout
this report and in the documents incorporated herein by reference.
These statements are based on our current expectations about future
events or results and information that is currently available to
us, involve assumptions, risks, and uncertainties, and speak only
as of the date on which such statements are made.
Our actual results may differ materially from
those expressed or implied in these forward-looking statements.
Factors that may cause such a difference, include, but are not
limited to those discussed in our Annual Report on Form 10-K and
subsequent reports filed with the SEC, as well as: the approval of
the shareholders of the amendment to the Certificate of
Incorporation, the risk of an unfavorable outcome of the pending
governmental investigations or shareholder class action lawsuits,
reputational harm caused by such investigations and lawsuits, the
willingness of independent insurance agencies to outsource their
computer and other processing needs to third parties; pricing and
other competitive pressures and the Company's ability to gain or
maintain share of sales as a result of actions by competitors and
others; changes in estimates in critical accounting judgments;
changes in or failure to comply with laws and regulations,
including accounting standards, taxation requirements (including
tax rate changes, new tax laws and revised tax interpretations) in
domestic or foreign jurisdictions; exchange rate fluctuations and
other risks associated with investments and operations in foreign
countries (particularly in Australia, UK and India wherein we have
significant operations); equity markets, including market
disruptions and significant interest rate fluctuations, which may
impede our access to, or increase the cost of, external financing;
and international conflict, including terrorist acts.
Except as expressly required by the federal
securities laws, the Company undertakes no obligation to update any
such factors, or to publicly announce the results of, or changes to
any of the forward-looking statements contained herein to reflect
future events, developments, changed circumstances, or for any
other reason.
Readers should carefully review the disclosures
and the risk factors described in the documents we file from time
to time with the SEC, including future reports on Forms 10-Q and
8-K, and any amendments thereto. You may obtain our SEC filings at
our website, www.ebix.com under the "Investor Information" section,
or over the Internet at the SEC's web site, www.sec.gov.
CONTACT:
Darren Joseph
+1-678 -281-2027 or IR@ebix.com
David Collins or Chris Eddy
Catalyst Global +1- 212-924-9800 or ebix@catalyst-ir.com
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