Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of
On-Demand software and E-commerce services to the insurance,
healthcare, financial and e-learning industries, today announced a
number of key initiatives to enhance shareholder value and reflect
the Company’s strong faith in its fundamentals.
The Company declared that the Ebix Compensation
Committee has accepted the Ebix CEO Robin Raina’s request to forego
his cash salary and instead accept Ebix stock for equivalent value
every month, at the stock price prevailing at that time in the
market. Ebix CEO will receive stock instead of cash for a period of
time, until the stock price is $150 per share or the economic
equivalent as adjusted for future corporate actions such as stock
splits that may occur from time to time. With a present holding of
approximately 3.8 million shares in Ebix at present, Robin made the
decision in view of his strong faith in the Company’s fundamentals
and future business outlook.
The Company also announced that it has decided
to commit $100 million of cash to its stock repurchase plan with
immediate effect, to take advantage of the present Ebix stock
price. The Company intends to use its present cash reserves of
approximately $170 million in addition to its operating cash flows,
providing it with the ability to execute on this vision beginning
immediately.
Robin Raina, Ebix president and CEO said, “We
are extremely confident about the core fundamentals of the Company
today and are excited about the business possibilities ahead of us.
Towards that extent, we have decided to use our operating cash
flows and cash reserves, to make acquisitions and repurchase Ebix
stock; as we see buying Ebix Stock as a highly accretive
transaction for our shareholders. Every share repurchased by the
Company will be retired, thereby reducing diluted share count and
in turn increasing diluted EPS for the Company.”
“I have personally owned Ebix stock since it was
approximately 50 cents a share. I have sold very little Ebix stock
over the last 19 years, except for a few sales, last in 2012, to
pay for taxes on my stock gains. I am a firm believer in the
Company’s fundamentals and in aligning my personal interests with
the shareholders. Thus, it was a natural decision for me to request
the Compensation committee to allow me receive my salary in Ebix
stock instead of cash.”
“In my 20 years as CEO of Ebix, the Company has
an enviable record of never having been on the wrong side of any
regulatory or tax authority. Also, the Company has till date a
record of having no differences with any statutory or consolidated
auditors across the world in the last two decades.” Robin added,
“We accept criticism with humility even when it comes from vested
interests, while being proud of our unblemished record of 20 years.
We have learnt from our past experiences that fundamentals finally
always prevail over false rhetoric. Today we are more excited than
ever about our future and we humbly intend to let time, cash and
fundamentals to do the talking from here onwards.”
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
STATEMENTS
As 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 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:
Gautam Sharma or Darren Joseph
678 -281-2027 or IR@ebix.com
David Collins, Chris Eddy
Catalyst Global - 212-924-9800 or ebix@catalyst-ir.com
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