JOHNS CREEK, Ga., June 16, 2022 (GLOBE NEWSWIRE) — Ebix, Inc. (EBIX), (the “Company”) a leading international provider of on-demand software and e-commerce services for the industries insurance, finance, travel, healthcare and e-learning industries today published a response to an article posted on June 16, 2022 by a holder of a short sale position on the ordinary shares of Ebix. As the Company’s Indian subsidiary is currently under review for an initial public offering in India, Ebix is limited in its ability to respond to the specific content of the item.
Ebix refutes the report’s grossly misleading and erroneous claims and reiterates that its financial reporting, including but not limited to all transactions originating from and within its EbixCash payment solution offerings in India, and the policies of revenue recognition thereof, are accurate and proper and comply with GAAP and SEC Reporting Requirements.
Since March 2021, the Company has engaged the services of two independent auditors to jointly audit the Company’s Indian operations, in addition to the engagement of a lawyer, Skadden, Arps, Slate, Meagher & Flom LLP, as well as chartered accountants from the consulting firm, AlixPartners LLP, to assist the Company with all matters relating to the gift card business.
After examining the work carried out by AlixPartners and taking into account all of their observations, the Board of Directors ensured that no action was necessary concerning the gift card activity. Since then, the Company’s consolidated independent auditors have completed the audit of the Company’s consolidated statements of earnings, comprehensive income, equity and cash flows for the two calendar year periods ending December 2020 and December 2021 while expressing an unqualified opinion.
In addition, two joint independent auditors for the consolidated Indian business have audited the Indian business for the period ended March 2021 and the interim period from April 1, 2021 to September 30, 2021 and issued an unqualified opinion on the two – the consolidated Indian business and the Indian gift card subsidiary. The Indian companies’ audited financial statements for the three years ending March 31, 2021 and the six months ending September 30, 2021 are included in the DRHP filing which was submitted for regulatory review in March 2022.
RSM’s previously issued reports on the Company’s consolidated financial statements and the Company’s internal controls over financial reporting for the year ended December 31, 2019 did not contain an adverse opinion or disclaimer. to express an opinion; nor have they been qualified or modified as to uncertainty, audit scope or accounting principles.
Ebix’s gift card business, which received most of the report’s attention, generated operating profit of 1% or less in the 12 months ending December 2020 and December 2021, which was not material to Ebix’s operating profit or net profit in either of the two periods.
About Ebix, Inc.
With approximately 200 offices on 6 continents, Ebix, Inc., (EBIX) strives to provide on-demand software and e-commerce services to the insurance, financial services, travel, healthcare and of online learning. Within the insurance industry, Ebix’s primary focus is to develop and deploy a wide variety of on-demand insurance and reinsurance exchanges, while providing Software-as-a-service enterprise solutions. -Service (“SaaS”) in the field of CRM, front-end and back-end systems, outsourced administration and risk compliance services, worldwide.
With a “Phygital” strategy that combines more than 650,000 physical distribution points in numerous Southeast Asian (“ASEAN”) countries, with an omnichannel online digital platform, the portfolio of software and The company’s EbixCash financial exchange services encompass domestic and international money transfers. , foreign exchange (Forex), travel, prepaid gift cards, utility payments, loans and wealth management in over 75 countries including India.EbixCash’s Forex operations are a leader in the Airport Forex industry in India, with operations in approximately 16 international airports including Delhi, Mumbai, Mumbai, Hyderabad, Chennai and Kolkata, together achieving over $4.8 billion in gross transaction value annually ( before COVID-19). EbixCash’s inbound remittance business in India processed approximately $5 billion in annual gross remittance volume (before COVID -19) and is the undisputed market leader. EbixCash, through its travel portfolio of Via and Mercury, is also one of the leaders in Southeast Asia. major travel exchanges with over 517,000 agents and approximately 17,900 registered corporate clients, having together processed an estimated gross value of goods of $2.5 billion per year (pre-COVID-19). EbixCash’s fintech business offers enterprise-level software solutions for banks, asset and wealth management companies and trust companies in India, Southeast Asia, the Middle East and Africa. EbixCash’s e-learning solutions are delivered to schools across India via high quality 2D and 3D animation and multimedia learning. EbixCash’s business process outsourcing services provide information technology and call center services to a variety of industries.
Through its various SaaS-based software platforms, Ebix employs thousands of domain-specific technology professionals to provide products, support and advice to thousands of customers on six continents. For more information, visit the Company’s website at www.ebix.com
SAFETY REGARDING FORWARD-LOOKING STATEMENTS
As used herein, the terms “Ebix”, “the Company”, “we”, “us” and “our” refer to Ebix, Inc., a Delaware corporation, and its subsidiaries consolidated as combined entity, except where it is clear that the terms mean only Ebix, Inc.
The information in this press release contains forward-looking statements and information within the scope of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and the Section 21E of the Securities Exchange Act of 1934. This information includes assumptions made by management and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, market acceptance of the Company’s products and management’s plans and objectives. In addition, certain statements included in this document and in 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 do not are not statements of historical fact, are forward-looking statements. Words such as “may”, “could”, “should”, “should”, “believe”, “expect”, “anticipate”, “estimate”, “intend”, “seek” , “plans”, “projects”, “continues”, “predicts”, “will” and other words or phrases 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 can be found at various places in this report and in the documents incorporated herein by reference. These statements are based on our current expectations regarding future events or results and information currently available to us, involve assumptions, risks and uncertainties, and speak only as of the date such statements are made.
Our actual results may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause such a difference include, but are not limited to, those discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and subsequent reports filed with the SEC, as well as: the effects the ongoing global Covid-19 pandemic, the willingness of independent insurance agencies to outsource their IT and other processing needs to third parties; pricing and other competitive pressures and the Company’s ability to gain or retain share of sales as a result of actions by competitors and others; changes in estimates in critical accounting judgments; changes or non-compliance with laws and regulations, including accounting standards, tax requirements (including changes in tax rates, new tax laws and revised tax interpretations) in domestic or foreign jurisdictions; currency exchange rate fluctuations and other risks associated with investments and operations in foreign countries (particularly in India, Australia and Asia, Latin America and Europe where we have significant and/or growing operations); fluctuations in stock markets, including market disruptions and significant fluctuations in interest rates, which may impede our access to external financing or increase the cost thereof; ability to obtain additional financing to meet capital requirements; provisions relating to credit facilities which could significantly restrict our business; the costs and effects of litigation, investigations or similar matters that could affect our business, results of operations and financial condition; and international conflicts, including terrorist acts and wars.
Except as expressly required by federal securities laws, the Company undertakes no obligation to update these factors or to publicly announce the results or changes in any of the forward-looking statements contained herein to reflect future events, developments, changes in circumstances, or for any other reason.
Readers should carefully review the information and risk factors described in our filings with the SEC from time to time, including future reports on Forms 10-Q and 8-K, and any amendments thereto. this.
678 -281-2027 or [email protected]
David Collins or Chris Eddy
Global Catalyst – 212-924-9800 or [email protected]