Ebix Shares Solid Organization Outlook and Discusses Recent Events

JOHNS CREEK, Ga., Feb. 19, 2021 (World NEWSWIRE) — Ebix, Inc. (NASDAQ: EBIX), a leading global provider of On-Demand from customers software program and E-commerce providers to the insurance plan, economic, health care and e-mastering industries, nowadays issued a press release to emphasize a powerful current company outlook although discussing the auditor resignation, the earnings materiality of the difficulties highlighted, and the different associated measures remaining taken by the Corporation.

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 Company’s impartial registered public accounting company, as the Firm stated in its Variety 8-K filed today.

RSM stated in its letter that its resignation was the “result of being unable, irrespective of recurring inquiries, to attain sufficient appropriate audit evidence that would permit it to evaluate the enterprise function of significant uncommon transactions that occurred in the fourth quarter of 2020.” RSM knowledgeable the Firm that the strange transactions connected to the Company’s gift card business enterprise in India. RSM also mentioned in its letter that it experienced determined a substance weak spot simply because “management did not style and design or put into practice the required treatments and controls above the reward or prepaid card income transaction cycle sufficient to protect against or detect a substance misstatement.”

RSM also informed the Company that there was a disagreement with regard to the classification of $30 million held in a trust account for the profit of the Corporation. In link with a pending acquisition, in December 2020 the Corporation transferred $30 million to a believe in account of its outside legal counsel. There ended up no limits on the Company’s skill to have the income returned, and in actuality, following RSM opined on the difficulty of classification of these cash, the Organization experienced the cash returned on February 2, 2021. RSM informed the Firm that it thought that these funds should be classified on the balance sheet underneath the “Other Present-day Asset” line merchandise of the financials, instead of currently being categorized as cash as the Firm had to begin with classified it. There ended up communications with RSM on this difficulty just after which the Enterprise was geared up to classify the $30 million held in the trust account at December 31, 2020 as a present-day asset. The Company regarded as this situation to be an initial difference of feeling dependent on incomplete information or preliminary facts instead than a “disagreement” pursuant to Item 304(a)(1)(iv).

The Company’s unaudited outcomes right before any one-time unconventional items or audit adjustments for the fourth quarter of 2020 contains revenues larger than $220 million and running money and working dollars flow metrics just about every in excessive of $32 million. Of these quantities, the Company’s unaudited reward card business created in extra of $130 million of revenues in the fourth quarter, representing sequential revenue development in the present card business enterprise of increased than 95{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} compared to the third quarter of 2020. The corresponding Q4 2020 reward card enterprise operating earnings was a lot less than $1 million.

For the full 12 months 2020, working cash flow from the present card company was fewer than $1.4 million. The progress in the present card small business revenues was pushed by the enhanced use of electronic money in India through the Covid-19 pandemic and the renewed drive by the Corporation to improve its payment solutions business.

The Chair of the Audit Committee reviewed with RSM the motives for its resignation. Whilst the Corporation does not agree with certain statements created by RSM in its resignation letter dated 2/15/21, the board has engaged outside counsel who, alongside with accounting experts, will guide the Enterprise with regard to these matters.

RSM was engaged by the Audit Committee on December 21, 2018 to serve as the Company’s impartial auditor for fiscal 12 months ending December 31, 2019 and was engaged once again on June 12, 2020 to serve as the Company’s independent auditor for fiscal 12 months ending December 31, 2020. RSM’s beforehand issued studies on the Company’s consolidated fiscal statements and the Company’s inside controls over financial reporting for the fiscal year ended December 31, 2019 did not include an adverse view or a disclaimer of feeling nor were being they qualified or modified as to uncertainty, audit scope, or accounting concepts. As of February 15, 2021, RSM experienced not finished its audit methods or issued any stories on the Company’s consolidated fiscal statements and internal controls in excess of money reporting for the fiscal calendar year ended December 31, 2020.

The Corporation intends to go as immediately as possible to change RSM and to complete its 2020 money audit. The Enterprise believes that the accounting for its gift card company is consistent with GAAP specifications. The Business will talk with its community shareholders as correct.

About Ebix

With a “Phygital” approach that brings together 320,000 physical distribution outlets in several Southeast Asian Nations (“ASEAN”) nations around the world, to an Omni-channel on the net electronic system, the Company’s EbixCash Economic trade portfolio encompasses management in places of domestic & global cash remittance, overseas trade (Forex), travel, pre-paid & reward cards, utility payments, lending, prosperity management and so forth. in India and other markets. EbixCash’s Forex trading functions have emerged as a chief in India’s airport International Exchange enterprise with operations in 32 international airports including Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting in excess of $4.8 billion in gross transaction value for every 12 months. EbixCash’s inward remittance business enterprise in India conducts approx. $6.5 billion gross once-a-year remittance organization, confirming its undisputed management posture in India. EbixCash, by its journey portfolio of Through and Mercury, is also just one of Southeast Asia’s main travel exchanges with in excess of 2,200+ staff, 212,450+ agent network, 25 branches and around 9,800 corporate clientele processing an approximated $2.5 billion in gross items worth for every year. EbixCash’s Fiscal Technological know-how remedies are these days deployed across prestigious economical institutions and Banking institutions in 44 countries. For additional information, visit the Company’s site at www.ebixcash.com

With 50+ offices throughout 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to deliver On-Demand software package and E-commerce products and services to the insurance, economic, healthcare and e-learning industries. In the Insurance policy sector, Ebix’s main focus is to create and deploy a huge assortment of insurance plan and reinsurance exchanges on an on-need f
oundation, although also, delivering Software package-as-a-Provider (“SaaS”) organization remedies in the place of CRM, front-conclude & back-conclude methods, outsourced administration and hazard compliance companies, all over the earth. For far more information, go to the Company’s web page at www.ebix.com

Ahead Hunting STATEMENTS

This press release is made up of selected statements that are “forward-looking” statements inside the meaning of the federal securities guidelines, like Part 27A of the Securities Act of 1933, as amended, and Area 21E of the Securities Trade Act of 1934, as amended. These forward-searching statements are centered upon present-day anticipations and include things like all statements that are not historical statements of reality and all those concerning the intent, belief or expectations, together with, without limitation, statements that are accompanied by words these kinds of as “will,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “estimates,” “seeks,” “may” or other identical words, phrases or expressions and variations or negatives of these terms. Visitors of this press release should comprehend that these statements are not ensures of performance or benefits. Quite a few threats and uncertainties could have an effect on precise outcomes and result in them to range materially from the anticipations contained in the forward-searching statements. Precise results could vary materially from those people contemplated by the forward-seeking statements as a consequence of sure variables, including but not constrained to, these reviewed in our Annual Report on Form 10-K and subsequent studies submitted with the SEC, as well as: the potential impacts of RSM’s resignation the capability to, as nicely as the capability to well timed, have interaction a new impartial registered public accounting business the chance of litigation or regulatory action arising from these issues, from the failure to timely file the Once-a-year Report on Kind 10-K for the fiscal yr finished December 31, 2020 (the “Annual Report”) or from the resignation of the RSM the timing of the review by, and the conclusions of, the Company’s new unbiased auditor with regards to these matters and its affect on the economic statements attainable default by the Firm underneath its credit score facility the ability of the Company to remediate any materials weaknesses in inner manage over fiscal reporting likely reputational injury that the Firm may possibly put up with as a result of these matters or the resignation of RSM the affect of these issues and the resignation of RSM on the value of the Company’s inventory and the chance that the submitting of the Once-a-year Report will acquire for a longer time than expected. Audience are cautioned not to location undue reliance on these forward-on the lookout statements. Any forward-wanting statement designed by us speaks only as of the day of this report. Until necessary by legislation, the Company does not undertake to launch publicly any revisions to these ahead-wanting statements to replicate long term activities or situations or to replicate the event of unanticipated situations.

Get in touch with:

Darren Joseph

[email protected] or +1 678 281 2027

David Collins or Chris Eddy

Catalyst World + 1 212-924-9800 or [email protected]