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Ebix 4Q21 results ?3

12:08 09-Mar-22

The Ebix conference call has concluded.  Management was quick to point out that revenue from all geographies improved YoY, but glossed over the fact that it is barely keeping up with inflation.  The rebound was particularly evident in FX and travel, whereas other areas of the business such as e-learning and consulting remain slow.

Of course, the first question was about timing of the IPO document, but management had nothing further to say.  In my view, the clock is now ticking not only because of the debt load, but the stress that the war in Ukraine will put on India's economy and public image.  At least it will take the spotlight off the deteriorating human rights record.  Still, India has hard choices to make, and Ebix is running out of time.  $30 remains my pivot point on the stock, but with so many other better values available, that doesn't mean much right now.

Ebix has just released results for its fourth quarter:

• 66 cents of EPS misses by 6 cents
  
• from $266.8M of revenue, which beats by $107.8M
  

Regarding the EbixCash red herring IPO document, management can only say "soon".  The company reduced debt by $52.5M over the course of the year and operating income was $32.4M, indicating to me that the company is just barely managing to keep its head above water.  The conference call is at 11am.  I will probably comment at least a little further after that, but I am not impressed even though the market is showing some relief with a 6% jump in EBIX at the open.

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