Ebix Shares Robust Business enterprise Outlook and Discusses Recent Situations Nasdaq:EBIX
(MENAFN – GlobeNewsWire – Nasdaq) JOHNS CREEK, Ga., Feb. 19, 2021 (World NEWSWIRE) — Ebix, Inc. (NASDAQ: EBIX), a primary global provider of On-Desire application and E-commerce companies to the insurance coverage, fiscal, healthcare and e-understanding industries, right now issued a push launch to emphasize a strong current company outlook although discussing the auditor resignation, the income materiality of the difficulties highlighted, and the several related measures being taken by the Firm.
By letter dated February 15, 2021, RSM US LLP (‘RSM’) notified the Audit Committee of the Board of Administrators (the ‘Audit Committee’) of Ebix, Inc. (the ‘Company’) of its resignation as the Firm’s unbiased registered community accounting company, as the Organization spelled out in its Form 8-K submitted nowadays.
RSM stated in its letter that its resignation was the “outcome of being unable, regardless of recurring inquiries, to get hold of adequate acceptable audit evidence that would make it possible for it to evaluate the organization intent of major abnormal transactions that transpired in the fourth quarter of 2020.’ RSM informed the Business that the strange transactions related to the Company’s gift card business in India. RSM also mentioned in its letter that it had determined a product weakness for the reason that “administration did not design or put into practice the vital processes and controls above the reward or prepaid card income transaction cycle adequate to protect against or detect a content misstatement.”
RSM also informed the Corporation that there was a disagreement with respect to the classification of $30 million held in a rely on account for the reward of the Organization. In relationship with a pending acquisition, in December 2020 the Corporation transferred $30 million to a rely on account of its outdoors authorized counsel. There have been no constraints on the Firm’s capacity to have the dollars returned, and in actuality, just after RSM opined on the situation of classification of these funds, the Business had the money returned on February 2, 2021. RSM knowledgeable the Firm that it believed that these funds ought to be labeled on the balance sheet underneath the ‘Other Present Asset’ line item of the financials, as an alternative of remaining labeled as funds as the Firm experienced initially categorized it. There ended up communications with RSM on this concern right after which the Business was prepared to classify the $30 million held in the rely on account at December 31, 2020 as a recent asset. The Business viewed as this problem to be an initial change of view based on incomplete specifics or preliminary info alternatively than a ‘disagreement’ pursuant to Merchandise 304(a)(1)(iv).
The Company’s unaudited results ahead of any a person-time unconventional merchandise or audit adjustments for the fourth quarter of 2020 involves revenues increased than $220 million and operating income and running income movement metrics every single in excessive of $32 million. Of these quantities, the Company’s unaudited reward card small business generated in extra of $130 million of revenues in the fourth quarter, symbolizing sequential earnings advancement in the gift card company of better than 95{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} vs . the third quarter of 2020. The corresponding Q4 2020 reward card business functioning earnings was considerably less than $1 million.
For the full year 2020, working money from the reward card business enterprise was a lot less than $1.4 million. The development in the reward card organization revenues was pushed by the improved use of electronic cash in India for the duration of the Covid-19 pandemic and the renewed press by the Corporation to develop its payment methods enterprise.
The Chair of the Audit Committee talked about with RSM the good reasons for its resignation. When the Business does not concur with sure statements made by RSM in its resignation letter dated 2/15/21, the board has engaged exterior counsel who, along with accounting gurus, will assist the Organization with respect to these issues.
RSM was engaged by the Audit Committee on December 21, 2018 to serve as the Firm’s unbiased auditor for fiscal year ending December 31, 2019 and was engaged again on June 12, 2020 to serve as the Company’s impartial auditor for fiscal 12 months ending December 31, 2020. RSM’s previously issued reports on the Company’s consolidated economic statements and the Firm’s internal controls in excess of economic reporting for the fiscal yr finished December 31, 2019 did not have an adverse impression or a disclaimer of belief nor were being they qualified or modified as to uncertainty, audit scope, or accounting rules. As of February 15, 2021, RSM had not completed its audit methods or issued any stories on the Firm’s consolidated economic statements and inner controls about monetary reporting for the fiscal calendar year ended December 31, 2020.
The Business intends to shift as speedily as feasible to substitute RSM and to entire its 2020 monetary audit. The Enterprise thinks that the accounting for its reward card enterprise is reliable with GAAP requirements. The Business will talk with its general public shareholders as suitable.
About Ebix
With a “Phygital’ method that combines 320,000 physical distribution shops in many Southeast Asian Nations (‘ASEAN’) international locations, to an Omni-channel on the net digital system, the Company’s EbixCash Financial exchange portfolio encompasses leadership in regions of domestic & international revenue remittance, overseas exchange (Currency trading), vacation, pre-paid & present playing cards, utility payments, lending, wealth administration and so forth. in India and other markets. EbixCash’s Foreign exchange functions have emerged as a chief in India’s airport Overseas Trade small business with operations in 32 global airports which include Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting around $4.8 billion in gross transaction value for each yr. EbixCash’s inward remittance small business in India conducts approx. $6.5 billion gross annual remittance business enterprise, confirming its undisputed leadership placement in India. EbixCash, by its vacation portfolio of By means of and Mercury, is also 1 of Southeast Asia’s main journey exchanges with around 2,200+ staff, 212,450+ agent community, 25 branches and over 9,800 corporate shoppers processing an estimated $2.5 billion in gross items benefit per 12 months. EbixCash’s Economic Technologies remedies are these days deployed throughout prestigious financial establishments and Banking institutions in 44 nations around the world. For far more data, go to the Company’s web site at
With 50+ offices throughout 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to offer On-Need software program and E-commerce solutions to the insurance coverage, fiscal, healthcare and e-understanding industries. In the Insurance plan sector, Ebix’s main focus is to acquire and deploy a large assortment of insurance plan and reinsurance exchanges on an on-need foundation, whilst also, providing Application-as-a-Provider (“SaaS”) enterprise options in the area of CRM, entrance-stop & back again-finish techniques, outsourced administration and hazard compliance products and services, all-around the world. For extra info, take a look at the Company’s website at
Ahead Seeking STATEMENTS
This push release consists of specific statements that are ‘forward-looking’ statements inside the which means of the federal securities legislation, which include Portion 27A of the Securities Act of 1933, as amended, and Portion 21E of the Securities Exchange Act of 1934, as amended. These forward-seeking statements are based mostly on present expectations and incorporate all statements that are not historic statements of point and those concerning the intent, belief or expectations, such as, with no lim
itation, statements that are accompanied by words these types of as ‘will,’ ‘believes,’ ‘anticipates,’ ‘plans,’ ‘expects,’ ‘intends,’ ‘estimates,’ ‘seeks,’ ‘may’ or other equivalent phrases, phrases or expressions and variations or negatives of these phrases. Visitors of this press release need to fully grasp that these statements are not ensures of general performance or final results. Quite a few risks and uncertainties could have an affect on real success and trigger them to vary materially from the expectations contained in the ahead-wanting statements. True effects could vary materially from those people contemplated by the forward-looking statements as a result of specific factors, which include but not minimal to, those talked about in our Once-a-year Report on Form 10-K and subsequent reports submitted with the SEC, as well as: the probable impacts of RSM’s resignation the means to, as nicely as the potential to well timed, engage a new unbiased registered public accounting agency the possibility of litigation or regulatory motion arising from these matters, from the failure to well timed file the Yearly Report on Sort 10-K for the fiscal calendar year finished December 31, 2020 (the ‘Annual Report’) or from the resignation of the RSM the timing of the assessment by, and the conclusions of, the Company’s new independent auditor regarding these matters and its effects on the economic statements probable default by the Company beneath its credit history facility the skill of the Firm to remediate any product weaknesses in internal manage above financial reporting possible reputational problems that the Company may endure as a final result of these issues or the resignation of RSM the impression of these issues and the resignation of RSM on the benefit of the Firm’s inventory and the threat that the filing of the Annual Report will acquire extended than expected. Visitors are cautioned not to put undue reliance on these forward-seeking statements. Any forward-looking statement built by us speaks only as of the day of this report. Except required by legislation, the Firm does not undertake to release publicly any revisions to these ahead-wanting statements to reflect future situations or situation or to mirror the occurrence of unanticipated occasions.
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Darren Joseph
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