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No. of Recommendations: 7
Q4 2011 results:
- Sales +26%, profit +9%, OCF +2%, diluted eps +6%
- average 39.4 million diluted shares outstanding during the quarter, vs. 38.4 million in Q4 of 2010
- Virtually all of net income during Q4 showed up in OCF
- repurchased 188,000 shares @ $14.14 per share for $2.7 million

FY 2011 results:
- Sales +28%, profit +21%, OCF +35%, diluted eps +15%
- Operating margin 41%, vs 40% in 2010
- average 40.9 million diluted shares outstanding during the year, vs. 39 million in 2010
- Virtually all of FY net income showed up in OCF
- repurchased 3.5 million shares @ $18.13 per share for $63.7 million,
- $23.8 million repurchase authorization outstanding
- sales and marketing force at year-end totaled 115 compared to 72 at the end of 2010
- G&A as % of sales down from 18.2% in 2010 to 15.5%
- DSO down to 64 vs. 68 end 2010
- $57.5 million domestic NOLs to offset future US taxable income
- $2.8 million Capex, all convertibles settled
- 25% increase in dividend to $0.05 per quarter

Sales by segment:
- Exchange +39%, BPO -4%, Broker systems +30%, Carrier systems -37%
- Exchange now 77% of sales
- BPO channel (focused on insurance certificate generation and tracking) impacted by US construction downturn
- Carrier channel declining due to (a) conversion from perpetual license business to recurring utilities business (b) property and casualty industry has not recovered, IT spending imited in 2011 (c) low margin property and casualty backend business in the United States is not a priority

Growth initiatives:
- Sales force expansion: Almost doubled head count during 2011 – impact should be seen over the next year or two
- Health exchange: Invested in creating end-to-end health exchanges covering brokers, consumers, employers, HMOs etc. Opens opportunities for business with large providers and state governments

Net, not only is EBIX continuing to deliver solid, profitable growth, but it's also poised to continue growing through increased cross selling as well as new initiatives, apart from its acquisitions.
Global Gains Home Fool
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