Ebix Shares Strong Company Outlook and Discusses New Occasions

JOHNS CREEK, Ga., Feb. 19, 2021 (World NEWSWIRE) — Ebix, Inc. (NASDAQ: EBIX), a main global provider of On-Demand from customers software program and E-commerce expert services to the insurance coverage, fiscal, health care and e-studying industries, these days issued a press launch to emphasize a robust present-day company outlook though discussing the auditor resignation, the earnings materiality of the issues highlighted, and the various associated methods staying taken by the Business.

By letter dated February 15, 2021, RSM US LLP (“RSM”) notified the Audit Committee of the Board of Directors (the “Audit Committee”) of Ebix, Inc. (the “Company”) of its resignation as the Company’s impartial registered public accounting business, as the Company explained in its Form 8-K submitted these days.

RSM said in its letter that its resignation was the “result of being not able, regardless of recurring inquiries, to get hold of ample acceptable audit proof that would let it to appraise the business enterprise objective of major unusual transactions that transpired in the fourth quarter of 2020.” RSM informed the Firm that the abnormal transactions connected to the Company’s present card company in India. RSM also mentioned in its letter that it had determined a materials weak point simply because “management did not style or put into action the important treatments and controls in excess of the gift or prepaid card profits transaction cycle ample to protect against or detect a material misstatement.”

RSM also knowledgeable the Firm that there was a disagreement with regard to the classification of $30 million held in a trust account for the profit of the Company. In connection with a pending acquisition, in December 2020 the Enterprise transferred $30 million to a trust account of its outdoors legal counsel. There have been no constraints on the Company’s means to have the hard cash returned, and in fact, after RSM opined on the problem of classification of these funds, the Corporation had the hard cash returned on February 2, 2021. RSM knowledgeable the Company that it considered that these resources really should be labeled on the equilibrium sheet less than the “Other Latest Asset” line product of the financials, rather of becoming categorized as funds as the Business had initially labeled it. There were being communications with RSM on this issue immediately after which the Organization was ready to classify the $30 million held in the have confidence in account at December 31, 2020 as a present-day asset. The Business considered this concern to be an preliminary big difference of impression primarily based on incomplete info or preliminary details instead than a “disagreement” pursuant to Item 304(a)(1)(iv).

The Company’s unaudited final results prior to any a single-time unusual things or audit changes for the fourth quarter of 2020 incorporates revenues bigger than $220 million and functioning earnings and operating income circulation metrics every in excessive of $32 million. Of these quantities, the Company’s unaudited gift card company generated in surplus of $130 million of revenues in the fourth quarter, representing sequential earnings growth in the reward card organization of larger than 95{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} versus the 3rd quarter of 2020. The corresponding Q4 2020 present card small business working money was a lot less than $1 million.

For the entire year 2020, working revenue from the gift card small business was a lot less than $1.4 million. The growth in the reward card company revenues was driven by the increased use of digital revenue in India all through the Covid-19 pandemic and the renewed push by the Corporation to improve its payment remedies small business.

The Chair of the Audit Committee talked about with RSM the causes for its resignation. Whilst the Corporation does not agree with particular statements designed by RSM in its resignation letter dated 2/15/21, the board has engaged exterior counsel who, along with accounting experts, will guide the Enterprise with regard to these matters.

RSM was engaged by the Audit Committee on December 21, 2018 to provide as the Company’s unbiased auditor for fiscal calendar year ending December 31, 2019 and was engaged once more on June 12, 2020 to serve as the Company’s unbiased auditor for fiscal yr ending December 31, 2020. RSM’s previously issued studies on the Company’s consolidated money statements and the Company’s internal controls over economic reporting for the fiscal yr finished December 31, 2019 did not comprise an adverse opinion or a disclaimer of belief nor ended up they competent or modified as to uncertainty, audit scope, or accounting principles. As of February 15, 2021, RSM experienced not done its audit strategies or issued any reports on the Company’s consolidated fiscal statements and internal controls more than money reporting for the fiscal yr finished December 31, 2020.

The Enterprise intends to transfer as promptly as achievable to replace RSM and to complete its 2020 economic audit. The Organization believes that the accounting for its reward card organization is regular with GAAP prerequisites. The Firm will communicate with its general public shareholders as suitable.

About Ebix

With a “Phygital” tactic that brings together 320,000 physical distribution outlets in quite a few Southeast Asian Nations (“ASEAN”) international locations, to an Omni-channel on the web digital platform, the Company’s EbixCash Monetary exchange portfolio encompasses leadership in areas of domestic & worldwide money remittance, foreign exchange (Currency trading), journey, pre-compensated & gift playing cards, utility payments, lending, wealth administration and many others. in India and other markets. EbixCash’s Foreign exchange operations have emerged as a leader in India’s airport Foreign Trade company with operations in 32 global airports which includes Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting more than $4.8 billion in gross transaction value for every calendar year. EbixCash’s inward remittance business in India conducts approx. $6.5 billion gross once-a-year remittance organization, confirming its undisputed management posture in India. EbixCash, by way of its travel portfolio of By means of and Mercury, is also just one of Southeast Asia’s primary travel exchanges with around 2,200+ personnel, 212,450+ agent community, 25 branches and over 9,800 company shoppers processing an approximated $2.5 billion in gross goods benefit per yr. EbixCash’s Financial Know-how options are today deployed across prestigious monetary establishments and Banks in 44 nations around the world. For extra facts, visit the Company’s web-site at www.ebixcash.com

With 50+ places of work throughout 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to deliver On-Need software program and E-commerce providers to the coverage, financial, health care and e-discovering industries. In the Insurance sector, Ebix’s primary target is to acquire and deploy a wide wide variety of insurance policy and reinsurance exchanges on an on-demand basis, whilst also, givi
ng Application-as-a-Services (“SaaS”) enterprise solutions in the area of CRM, front-close & again-end techniques, outsourced administration and hazard compliance providers, close to the planet. For a lot more information and facts, visit the Company’s website at www.ebix.com

Forward Looking STATEMENTS

This press release includes particular statements that are “forward-looking” statements within the indicating of the federal securities legal guidelines, together with Part 27A of the Securities Act of 1933, as amended, and Area 21E of the Securities Trade Act of 1934, as amended. These forward-seeking statements are dependent upon current anticipations and incorporate all statements that are not historical statements of point and all those pertaining to the intent, belief or expectations, including, without limitation, statements that are accompanied by text these kinds of as “will,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “estimates,” “seeks,” “may” or other related phrases, phrases or expressions and versions or negatives of these phrases. Readers of this press launch need to recognize that these statements are not guarantees of effectiveness or success. Lots of hazards and uncertainties could influence true outcomes and cause them to differ materially from the anticipations contained in the forward-searching statements. Real outcomes could differ materially from those contemplated by the forward-looking statements as a result of specific components, including but not restricted to, those people talked over in our Once-a-year Report on Form 10-K and subsequent reviews filed with the SEC, as very well as: the probable impacts of RSM’s resignation the skill to, as perfectly as the potential to timely, have interaction a new unbiased registered public accounting organization the possibility of litigation or regulatory action arising from these issues, from the failure to timely file the Yearly Report on Form 10-K for the fiscal 12 months ended December 31, 2020 (the “Annual Report”) or from the resignation of the RSM the timing of the overview by, and the conclusions of, the Company’s new unbiased auditor regarding these matters and its impact on the monetary statements feasible default by the Firm beneath its credit history facility the capability of the Corporation to remediate any substance weaknesses in internal management above economic reporting potential reputational destruction that the Enterprise might endure as a result of these issues or the resignation of RSM the influence of these issues and the resignation of RSM on the value of the Company’s inventory and the threat that the filing of the Yearly Report will acquire longer than expected. Audience are cautioned not to put undue reliance on these ahead-hunting statements. Any forward-searching statement built by us speaks only as of the date of this report. Unless demanded by law, the Corporation does not undertake to launch publicly any revisions to these forward-seeking statements to replicate future activities or conditions or to reflect the occurrence of unanticipated occasions.

Make contact with:

Darren Joseph

IR@ebix.com or +1 678 281 2027

David Collins or Chris Eddy

Catalyst International + 1 212-924-9800 or ebix@catalyst-ir.com