Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today reported results for its third quarter ended September 30, 2016. Ebix will host a conference call to review its results today at 11:00 a.m. EDT (details below).

Ebix delivered the following results for the third quarter of 2016:

Revenues: Q3 2016 revenue rose 12% to $74.6 million compared to $66.8 million in Q3 2015 and rose 3% over Q2 2016 revenue of $72.6 million. The revenue improvement reflected growth in both the Exchange and Risk Compliance channel.

On a constant currency basis, Ebix Q3 2016 revenue increased 12% to $75.0 million compared to $66.8 million in Q3 2015. The Exchange channel continued to be Ebix’s largest, accounting for 70% of Q3 2016 revenues. Also on a constant currency basis, year to date revenue increased 13% to $221.6 million as compared to $195.3 million during the same period in 2015.

Earnings per Share: Q3 2016 diluted earnings per share increased 26% to $0.74 compared to $0.59 in Q3 2015, reflecting higher net income and the benefit of ongoing share repurchase activity. Ebix’s weighted average diluted shares outstanding decreased to 32.7 million in Q3 2016 compared to 34.5 million in Q3 2015 and 33.0 million in Q2 2016.

Operating Cash: Cash generated from operations rose 42% to $22.1 million in Q3 2016 compared to $15.5 million in Q3 2015 and improved from $20.4 million during Q2 2016.

Operating Income and Margins: Q3 2016 operating margins remained consistent at 33% as compared to Q3 2015. Operating income for Q3 2016 rose 11% to $24.3 million compared to $22.0 million in Q3 2015.

Net Income: Q3 2016 net income rose 19% to $24.1 million, compared to $20.2 million in Q3 2015. The improvement principally reflected the benefit of higher revenues and operating income as compared to the same period last year, in addition to certain non-recurring benefits totaling $2.3 million offset by one-time expenses of $2.5 million in Q3 2016 that won’t be there in Q4 2016. The one-time expenses included amongst other things – certain legal settlement costs, self administered insurance costs associated with certain one time claims, a one time expense associated with the increase in CEO compensation, new FIN 48 reserves and a few other non-recurring costs associated with valuation, outside due diligence and other aspects of acquisition related initiatives like Patriot.

Cost Synergies: Ebix is presently working on a cost rationalization exercise that is expected to deliver reduced expenses of approximately $1.5 million per quarter beginning in Q1 2017

Share Repurchases: In Q3 2016, Ebix repurchased 88,200 shares of its outstanding common stock for aggregate cash consideration of $4.8 million.

Q4 2016 Diluted Share Count: As of today, Ebix expects its diluted share count for Q4 2016 to be approximately 32.3 million.

Dividend: Ebix paid its regularly quarterly dividend of $0.075 per share in Q3 2016 for a total cost of $2.5 million.

Termination of Patriot National Discussions: Ebix announced that, on Sunday, November 6th, it communicated to Patriot National, Inc. its decision to terminate all discussions regarding a potential acquisition of Patriot National, Inc. by Ebix, and that Ebix intended to disclose the termination of those discussions on Wednesday, November 9^th. Ebix is unable to comment on the Patriot National press release and the reasons for this development, given the terms of its Non Disclosure Agreement with Patriot National.

Ebix Chairman, President and CEO Robin Raina said, “Ebix achieved its highest-ever quarterly revenue in Q3, with operating cash flow of $22.1 million and an operating margin of 33%. Given this performance, we feel we have momentum to grow the Company both organically and inorganically, while at the same maintaining operating discipline and operating margins.”

“With worldwide cash and cash equivalents of approximately $111 million, growing operating cash flows and the solid backing of our banking syndicate led by Regions Bank, we feel that we are well positioned today to fund all our growth plans, in addition to continuing our investor friendly initiatives like share repurchases and dividend payments.” Robin added. “Besides our efforts to organically grow the high margin areas of our business, we have a strong pipeline of acquisition opportunities at various stages of engagement. We will report on that front once we successfully close any of those opportunities.”

Conference Call Details:

About Ebix, Inc.

A leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, Ebix, Inc. provides end-to-end on-Demand solutions ranging from infrastructure exchanges, front end & back end enterprise systems, outsourced administrative & custom