Ebix Q4 Revenue Rose 31% to $104.7M and EPS Rose 11% to $0.84; Full Year Revenue Rose 22% to $364.0M and EPS Rose 11% to $3.17

▤ Summary

Exchanges including the EbixCash operations in India, continued to be Ebix’s largest channel, accounting for 79% of the Companys Q4 2017 and 71% of full year 2017 Revenue.Robin added, “We are in advance stages of review on several acquisition opportunities that have the potential to make material contributions to our 2018 results if we are able to complete these transactions on the contemplated terms.With a "Phygital” strategy that combines 231,500 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, travel, pre-paid & gift cards, utility payments, etc., in an emerging country like India.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 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.Ebix, Inc. and SubsidiariesConsolidated Statements of Income (In thousands, except per share data) Three Months EndedTwelve Months EndedDecember 31,December 31,2017201620172016(Unaudited)(Unaudited)(Unaudited)(Audited)Operating revenue$104,681$ 80,046$363,971$298,294Operating expenses: Cost of services provided38,43822,522129,49485,128Product development8,5518,06833,85432,981Sales and marketing3,9914,46716,30317,469General and administrative (net)17,82014,67059,97651,689Amortization and depreciation2,8002,65811,12310,746 Total operating expenses 71,60052,385250,750198,013 Operating income33,08127,661113,221100,281 Interest income976321,7111,851Interest expense(4,345)(1,995)(13,383)(7,376)Non-operating income – (loss)———1,162Foreign currency exchange gain (loss)(894)(839)1,81113 Income before income taxes27,93925,459103,36095,931 Income tax expense(414)(516) (777)(1,637)Net income including noncontrolling interest27,52524,943102,58394,294Net income attributable to noncontrolling interest9523141,965447 Net income attributable to Ebix, Inc.$26,573$24,629$100,618$93,847Basic earnings per common share$0.84$0.76$3.19$2.88Diluted earnings per common share$0.84$0.76$3.17$2.86 Basic weighted average shares outstanding31,47032,27931,55232,603Diluted weighted average shares outstanding31,65632,48331,71932,863 Ebix, Inc. and SubsidiariesConsolidated Balance SheetsDecember 31, 2017December 31, 2016(In thousands, except share and per share amounts)ASSETSCurrent assets: Cash and cash equivalents$63,895$114,118Short-term investments25,5923,105Restricted cash4,040—Fiduciary funds- restricted8,03514,394Trade accounts receivable, less allowances of $4,143 and $2,833, respectively117,83862,713Other current assets33,53212,716 Total current assets252,932207,046 Property and equipment, net41,70437,061Goodwill666,863441,404Intangibles, net45,71141,336Indefinite-lived intangibles42,05530,887Capitalized software development costs, net8,4995,955Deferred tax asset, net43,52931,345Other assets11,7208,721 Total assets$1,113,013$803,755LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities: Accounts payable and accrued liabilities$75,073$30,461Accrued payroll and related benefits8,2017,474Cash overdraft9,243—Fiduciary funds- restricted8,03514,394Short term debt, net of deferred financing costs of $13614,36412,364Contingent liability for accrued earn-out acquisition consideration4,0001,921Current portion of long term debt and capital lease obligation179Deferred revenue22,56222,564Current deferred rent278281Other current liabilities5,159244 Total current liabilities146,93289,712 Revolving line of credit274,529154,029Long term debt and capital lease obligation, less current portion, net of deferred financing costs of $298 and $452, respectively110,978105,824Contingent liability for accrued earn-out acquisition consideration33,0966,589Deferred revenue1,4231,886Long term deferred rent6381,009Other liabilities11,6586,070 Total liabilities579,254365,119Commitments and ContingenciesStockholders’ equity: Convertible Series D Preferred stock, $.10 par value, 500,000 shares authorized, no shares issued and outstanding at December 31, 2017 and 2016——Common stock, $.10 par value, 60,000,000 shares authorized, 31,476,428 issued and outstanding at December 31, 2017 and 32,093,294 issued and outstanding at December 31, 20163,1483,209Additional paid-in capital1,410—Retained earnings510,975457,364Accumulated other comprehensive loss(24,023)(33,677) Total Ebix, Inc. stockholders’ equity491,510426,896 Noncontrolling interest)42,24911,740 Total stockholders equity$533,759$438,636Total liabilities and stockholders’ equity$1,113,013$803,755Ebix, Inc. and SubsidiariesConsolidated Statements of Cash FlowsYear Ended December 31, 2017Year Ended December 31, 2016Year Ended December 31, 2015(in thousands)Cash flows from operating activities: Net income attributable to Ebix, Inc.$100,618$93,847$79,533Net income attributable to noncontrolling interest1,965447— Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization11,12310,74610,634Provision for doubtful accounts1,7131,5153,111Provision for deferred taxes, net of acquisitions and effects of currency translation(13,667)(6,410)(10,143)Unrealized foreign exchange (gain)/losses1,38732(1,743)Gain on investment interest in IHC/Ebix joint venture—(1,162)—Amortization of capitalized software development costs2,1751,116—Share-based compensation2,8182,7941,821Debt discount amortization on convertible debt——17Reduction of acquisition earn-out contingent liability(164)(1,344)(1,533)Reduction of rent expense as a result of purchase accounting adjustment(948)—— Changes in current assets and liabilities, net of acquisitions: Accounts receivable(34,245)(12,659)(7,320)Other assets(2,133)(1,034)(3,834)Accounts payable and accrued expenses8,906(3,703)(19,895)Accrued payroll and related benefits(3,979)170(60)Deferred rent(413)(234)(656)Reserve for potential uncertain income tax return positions5,87949095Liability – securities litigation settlement——(690)Other liabilities252(3,039)1,111Deferred revenue(4,480)2,176(1,762) Net cash provided by operating activities76,80783,74848,686Cash flows from investing activities: Investment in Paul Merchants(37,398)——Investment in Via, net of cash acquired(67,835)——Investment in Wall Street(6,970)——Investment in YouFirst, net of cash acquired(9,657)——Investment in beBetter(1,000)——Investment in ItzCash, net of cash acquired(69,301)——Payment of acquisition earn-out contingency, Qatarlyst(1,921)——Funding of escrow account for possible future contingent earn-out payment related to business acquisition(4,040)——Investment in Hope Health—(1,643)—Investment in Wdev, net of cash acquired—(6,320)—Investment in Via Media Health, net of cash acquired——(1,000)Investment in P.B.

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