Ebix Shares Sturdy Business enterprise Outlook and Discusses Modern Activities Nasdaq:EBIX

JOHNS CREEK, Ga., Feb. 19, 2021 (World NEWSWIRE) — Ebix, Inc. (NASDAQ: EBIX), a foremost intercontinental provider of On-Demand program and E-commerce solutions to the coverage, financial, healthcare and e-studying industries, currently issued a push release to emphasize a potent existing business outlook although speaking about the auditor resignation, the income materiality of the difficulties highlighted, and the various relevant steps getting taken by the Company.

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 independent registered community accounting organization, as the Organization discussed in its Kind 8-K submitted currently.

RSM stated in its letter that its resignation was the “end result of staying not able, irrespective of repeated inquiries, to attain adequate ideal audit proof that would permit it to examine the company reason of significant unconventional transactions that transpired in the fourth quarter of 2020.” RSM educated the Corporation that the unusual transactions connected to the Company’s present card enterprise in India. RSM also stated in its letter that it experienced determined a product weak spot simply because “management did not layout or put into practice the vital procedures and controls over the present or pay as you go card profits transaction cycle ample to reduce or detect a content misstatement.”

RSM also knowledgeable the Corporation that there was a disagreement with respect to the classification of $30 million held in a trust account for the profit of the Firm. In connection with a pending acquisition, in December 2020 the Organization transferred $30 million to a trust account of its exterior authorized counsel. There were being no limitations on the Company’s capacity to have the cash returned, and in truth, after RSM opined on the challenge of classification of these resources, the Corporation had the cash returned on February 2, 2021. RSM knowledgeable the Company that it thought that these money really should be categorized on the stability sheet beneath the “Other Present Asset” line product of the financials, in its place of staying categorised as cash as the Corporation experienced originally labeled it. There were being communications with RSM on this challenge soon after which the Company was ready to classify the $30 million held in the have confidence in account at December 31, 2020 as a latest asset. The Company viewed as this situation to be an original variation of belief centered on incomplete specifics or preliminary information and facts fairly than a “disagreement” pursuant to Merchandise 304(a)(1)(iv).

The Company’s unaudited outcomes prior to any a single-time uncommon items or audit changes for the fourth quarter of 2020 consists of revenues larger than $220 million and functioning money and functioning dollars circulation metrics each and every in extra of $32 million. Of these amounts, the Firm’s unaudited gift card business enterprise created in extra of $130 million of revenues in the fourth quarter, representing sequential earnings growth in the gift card business of greater than 95% vs . the third quarter of 2020. The corresponding Q4 2020 reward card business enterprise operating cash flow was significantly less than $1 million.

For the full calendar year 2020, running cash flow from the present card enterprise was considerably less than $1.4 million. The progress in the reward card small business revenues was driven by the increased use of electronic funds in India in the course of the Covid-19 pandemic and the renewed force by the Enterprise to improve its payment solutions small business.

The Chair of the Audit Committee talked over with RSM the good reasons for its resignation. While the Enterprise does not agree with specific statements created by RSM in its resignation letter dated 2/15/21, the board has engaged outside the house counsel who, along with accounting professionals, will aid the Firm with regard to these issues.

RSM was engaged by the Audit Committee on December 21, 2018 to serve as the Company’s impartial auditor for fiscal yr ending December 31, 2019 and was engaged all over again on June 12, 2020 to provide as the Firm’s impartial auditor for fiscal 12 months ending December 31, 2020. RSM’s previously issued experiences on the Company’s consolidated economic statements and the Firm’s interior controls about economical reporting for the fiscal calendar year ended December 31, 2019 did not include an adverse opinion or a disclaimer of belief nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. As of February 15, 2021, RSM experienced not completed its audit processes or issued any reports on the Company’s consolidated fiscal statements and inside controls around economic reporting for the fiscal yr ended December 31, 2020.

The Firm intends to shift as speedily as possible to substitute RSM and to total its 2020 monetary audit. The Corporation believes that the accounting for its reward card company is constant with GAAP specifications. The Company will converse with its general public shareholders as acceptable.

About Ebix

With a “Phygital” system that brings together 320,000 actual physical distribution stores in several Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Economical exchange portfolio encompasses management in parts of domestic & global cash remittance, foreign exchange (Currency trading), vacation, pre-paid out & gift cards, utility payments, lending, prosperity administration etc. in India and other markets. EbixCash’s Fx functions have emerged as a chief in India’s airport International Trade small business with functions in 32 global airports which includes Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting in excess of $4.8 billion in gross transaction price per yr. EbixCash’s inward remittance small business in India conducts approx. $6.5 billion gross yearly remittance company, confirming its undisputed leadership situation in India. EbixCash, by means of its journey portfolio of By using and Mercury, is also one of Southeast Asia’s leading journey exchanges with over 2,200+ staff, 212,450+ agent community, 25 branches and more than 9,800 company consumers processing an approximated $2.5 billion in gross merchandise value for each 12 months. EbixCash’s Financial Technological know-how solutions are these days deployed throughout prestigious financial institutions and Banking companies in 44 nations around the world. For far more facts, check out the Company’s web page at www.ebixcash.com

With 50+ places of work throughout 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to present On-Desire program and E-commerce providers to the insurance plan, money, healthcare and e-finding out industries. In the Coverage sector, Ebix’s most important focus is to build and deploy a huge wide range of insurance coverage and reinsurance exchanges on an on-demand basis, even though also, providing Software program-as-a-Support (“SaaS”) business alternatives in the location of CRM, entrance-end & again-close methods, outsourced administration and possibility compliance products and services, close to the world. For far more details, pay a visit to the Company’s website at www.ebix.com

Forward Seeking STATEMENTS

This press launch has particular statements that are “forward-looking” statements within just the which means of the federal securities rules, together with Portion 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Trade Act of 1934, as amended. These ahead-wanting statements are primarily based upon present anticipations and involve all statements that are not historic statements of reality and those people pertaining to the intent, perception or expectations, like, with no limitation, statements that are accompanied by text this sort of as “will,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “estimates,” “seeks,” “may” or other equivalent words, phrases or expressions and variations or negatives of these words. Visitors of this push release really should have an understanding of that these statements are not guarantees of efficiency or benefits. A lot of pitfalls and uncertainties could have an effect on actual effects and induce them to differ materially from the expectations contained in the ahead-seeking statements. Real effects could vary materially from individuals contemplated by the forward-searching statements as a outcome of specified elements, including but not restricted to, those people talked over in our Yearly Report on Form 10-K and subsequent stories filed with the SEC, as very well as: the probable impacts of RSM’s resignation the ability to, as perfectly as the ability to well timed, interact a new independent registered general public accounting firm the danger of litigation or regulatory action arising from these matters, 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 overview by, and the conclusions of, the Company’s new impartial auditor pertaining to these issues and its impression on the fiscal statements doable default by the Corporation under its credit rating facility the capacity of the Firm to remediate any content weaknesses in inside handle in excess of money reporting possible reputational injury that the Firm could suffer as a end result of these issues or the resignation of RSM the affect of these matters and the resignation of RSM on the benefit of the Company’s inventory and the threat that the submitting of the Annual Report will acquire for a longer time than anticipated. Audience are cautioned not to put undue reliance on these forward-looking statements. Any forward-looking statement made by us speaks only as of the date of this report. Except required by law, the Corporation does not undertake to launch publicly any revisions to these forward-searching statements to mirror upcoming occasions or instances or to mirror the incidence of unanticipated occasions.

Get in touch with:

Darren Joseph

[email protected] or +1 678 281 2027

David Collins or Chris Eddy

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