10.12.2009 14:31
Ebix Announces Summary Highlights from the Investor Meeting at New York
Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today released the summary highlights from the investor meeting at the NASDAQ Marketsite building in New York. 85 analysts&investors, 21 Ebix senior Executives in addition to the EBIX CEO, CFO and three of the independent Ebix Board members attended the meeting and received the opportunity to interact with the senior management, Ebix CFO and the CEO.
The Company announced that while the meeting registration request had an overwhelming response, Ebix had to prioritize the attendee list due to limited space at the meeting place and could only confirm registration of 85 attendees to the meeting.
To ensure that all investors had access to any important topics discussed in the meeting, the Company decided to summarize the highlights of the topics discussed during the presentations as well as one on one question and answer sessions held between the Company's CEO and CFO and individual investors and analysts. The summary highlights discussed during the meeting were as follows -
Organic growth Rate for 2010 and 2011: The Company forecasted its organic growth rate for 2010 and 2011 to be between 10 to 15%.
Primary Growth Areas in 2010: The Company expects primary growth to come from the area of Exchanges and BPO, especially from its life, annuity and certificate processing businesses. The Company also expects its risk exchanges, property& casualty exchanges, employee benefit and broker businesses internationally to keep growing organically.
Exchange customer deals: The Company announced that since 1st October 2009, it has won a number of key deals in the exchange area that are forecasted to help the Company's revenues to keep growing organically. Some of the new deals announced at the meeting were Fidelity Investments, Bank of America, Wells Fargo, US Bank, National Western Life Insurance Company, Genworth Financial, Principal Financial Group, AXA Equitable Life, American General Life insurance, Nationwide Mutual Insurance Company, Ameriprise, Clearview Correspondent Services and Consolidated Health Plans.
BPO customer deals: The Company also announced that since October 1, 2009 it has signed new deals in the BPO arena like FED-EX, Anheuser Busch, Meritage Homes, City of Phoenix, Bechtel Jacobs, Los Angeles County Office, Disney Consumer Products, AON Risk Services Southwest, Sempra, Marsh, Logan Property Management, Greenspoint Plaza, Business Finance Group, Alachua County, Los Angeles County office of Education, Calpine Corporation, EBS-RMSCO, Westcore Properties, United Stationary Supply Co. and Pioneer Natural resource.
Workers Compensation and Risk Exchange Deals: The company's Division head for the Risk management and Workers Compensation Division (Formerly Peak) announced that the division had signed 27 new customer contracts since its acquisition by Ebix.
Impact of Peak&EZ Data: The Company reiterated its earlier floor forecast of $26 million in revenue and $7.5 million in income from the two acquisitions over the next 12 months.
Reiterated its forecasted effective tax rate: The Company CFO reiterated its already announced forecast of 8-12% effective worldwide tax rate for the company over the next 24 months. In response to questions, the Company also disclosed that its effective tax rate in India is likely to be zero till the year 2014/2015.
Use of cash in international subsidiaries: In response to a question, the Company CFO explained that any excess cash available in its international subsidiaries is likely to be utilized for making international acquisitions. The Company has no intention of repatriating any cash to the United States in the form of dividends, and thus would not be subject to any taxes on dividend repatriations.
Acquisition in Latin America: The Company's Division head for Latin American operations announced that it is likely to make an acquisition in the Latin American markets in the near future, to grow its exchange business in that region.
Possible Acquisitions in BPO Arena: In response to questions, the Company announced that it is likely to make some acquisitions in the BPO arena in Australia as also in the health imaging area in the United States, in its bid to take a good position in the health insurance markets.
Available Cash: The Company CFO announced at the conference that its consolidated cash balance at 11/30/2009 was approximately $15 million. The Company's short-term debt, net of cash balances was $9.2 million at 11/30/2009. The Company currently has available cash and accessible cash funds in the amount of $35.8 million using the expanded credit facility with the accordion feature to fund future business growth.
Post Conference Disclosure: The Company also announced today that it has received a further conversion of $4 million promissory note from WhiteBox today. The shares converted are already counted in the diluted share count.
Stock Split: The Company also announced that its upcoming stock split will be effective no later than December 31, 2009 so long as a majority of the Company's shareholders vote to approve an increase in the Company's authorized shares of common stock, as detailed in its proxy statement mailed on or about November 20, 2009.
