Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document and Entity Information [Abstract] | ||
Document Period End Date | Sep. 30, 2015 | |
Entity Registrant Name | EBIX INC | |
Entity Central Index Key | 814,549 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 33,767,094 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Operating revenue | $ 66,813 | $ 50,808 | $ 195,278 | $ 153,688 |
Operating expenses: | ||||
Cost of services provided | 17,809 | 10,275 | 55,993 | 29,851 |
Product development | 8,338 | 6,779 | 22,673 | 20,230 |
Sales and marketing | 3,805 | 3,559 | 10,795 | 10,644 |
General and administrative | 12,128 | 6,008 | 34,995 | 26,917 |
Amortization and depreciation | 2,765 | 2,449 | 7,932 | 7,442 |
Total operating expenses | 44,845 | 29,070 | 132,388 | 95,084 |
Operating income | 21,968 | 21,738 | 62,890 | 58,604 |
Interest income | 62 | 61 | 167 | 326 |
Interest expense | (1,058) | (392) | (2,402) | (850) |
Non-operating (loss)/income - put options | 0 | (19) | 0 | 296 |
Nonoperating Income (Expense) | 0 | (350) | 0 | (350) |
Foreign currency exchange gain | 1,137 | 987 | 2,359 | 532 |
Income before income taxes | 22,109 | 22,025 | 63,014 | 58,558 |
Income tax expense | (1,877) | (4,010) | (5,410) | (11,547) |
Net income | $ 20,232 | $ 18,015 | $ 57,604 | $ 47,011 |
Basic earnings per common share | $ 0.59 | $ 0.47 | $ 1.65 | $ 1.23 |
Diluted earnings per common share | $ 0.59 | $ 0.47 | $ 1.63 | $ 1.22 |
Basic weighted average shares outstanding | 34,304 | 38,050 | 35,014 | 38,264 |
Diluted weighted average shares outstanding | 34,515 | 38,253 | 35,241 | 38,499 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 20,232 | $ 18,015 | $ 57,604 | $ 47,011 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (10,129) | (4,546) | (14,163) | |
Total other comprehensive income (loss) | (10,129) | (4,546) | (14,163) | (1,947) |
Comprehensive income | $ 10,103 | $ 13,469 | $ 43,441 | $ 45,064 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 33,200 | $ 52,300 |
Short-term investments | 1,014 | 281 |
Trade accounts receivable, less allowances of $2,406 and $1,619, respectively | 47,166 | 41,100 |
Deferred tax asset, net | 802 | 2,113 |
Other current assets | 11,058 | 8,067 |
Total current assets | 93,240 | 103,861 |
Property and equipment, net | 33,583 | 24,661 |
Goodwill | 408,093 | 402,220 |
Intangibles, net | 49,591 | 49,371 |
Indefinite-lived intangibles | 30,887 | 30,887 |
Deferred tax asset, net | 20,563 | 18,758 |
Other assets | 12,522 | 4,553 |
Total assets | 648,479 | 634,311 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 21,703 | 40,121 |
Accrued payroll and related benefits | 6,020 | 5,280 |
Current portion of long term debt and capital lease obligations, net of discount of $5 and $7, respectively | 607 | 936 |
Current deferred rent | 311 | 268 |
Contingent liability for accrued earn-out acquisition consideration | 1,690 | 887 |
Deferred revenue | 19,251 | 22,192 |
Other current liabilities | 98 | 102 |
Total current liabilities | 49,680 | 69,786 |
Revolving line of credit | 186,465 | 120,465 |
Long term debt and capital lease obligations, less current portion, net of discount of $0 and $7, respectively | 41 | 593 |
Other liabilities | 2,157 | 2,179 |
Contingent liability for accrued earn-out acquisition consideration | 6,323 | 4,480 |
Deferred revenue | 1,803 | 2,496 |
Long term deferred rent | 1,847 | 2,091 |
Total liabilities | $ 248,316 | $ 202,090 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at September 30, 2015 and December 31, 2014 | $ 0 | $ 0 |
Common stock, $0.10 par value, 60,000,000 shares authorized, 33,787,094 issued and outstanding, at September 30, 2015 and 36,232,074 issued and 36,191,565 outstanding at December 31, 2014 | 3,378 | 3,619 |
Additional paid-in capital | 69,756 | 137,101 |
Treasury stock (no shares as of September 30, 2015 and 40,509 shares as of December 31, 2014) | 0 | (76) |
Retained earnings | 359,341 | 309,726 |
Accumulated other comprehensive loss | (32,312) | (18,149) |
Total stockholders’ equity | 400,163 | 432,221 |
Total liabilities and stockholders’ equity | $ 648,479 | $ 634,311 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Allowance for doubtful accounts | $ 2,406 | $ 1,619 |
Unamortized debt discount, current | 5 | 7 |
Unamortized debt discount, noncurrent | $ 0 | $ 7 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares issued | 33,787,094 | 36,232,074 |
Common stock, shares outstanding | 33,787,094 | 36,191,565 |
Treasury stock, shares | 0 | 40,509 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, par value (per share) | $ 0.10 | $ 0.10 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 63,000 | $ 63,000 | ||||
Beginning Balance, Issued Shares at Dec. 31, 2014 | 36,232,074 | 36,232,074 | ||||
Beginning Balance, Treasury Shares at Dec. 31, 2014 | (40,509) | |||||
Beginning Balance, Value at Dec. 31, 2014 | $ 432,221,000 | $ 3,619,000 | $ (76,000) | 137,101,000 | $ 309,726,000 | $ (18,149,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 57,604,000 | 57,604,000 | ||||
Cumulative translation adjustment | (14,163,000) | (14,163,000) | ||||
Repurchase and retirement of common stock, Shares | (2,513,692) | |||||
Repurchase and retirement of common stock, Value | (68,793,000) | $ (252,000) | (68,541,000) | |||
Vesting of restricted stock, Shares | 91,011 | |||||
Vesting of restricted stock, Value | 0 | $ 9,000 | (9,000) | |||
Exercise of stock options, Shares | 56,250 | |||||
Exercise of stock options, Value | 1,117,000 | $ 6,000 | 1,111,000 | |||
Share based compensation | 1,244,000 | 1,244,000 | ||||
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested, Shares | (38,040) | |||||
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested | (1,141,000) | $ (4,000) | (1,137,000) | |||
Treasury Stock, Shares, Retired | (40,509) | 40,509 | ||||
Treasury Stock, Retired, Cost Method, Amount | 0 | $ 76,000 | (76,000) | |||
Dividends paid | $ (7,989,000) | (7,989,000) | ||||
Ending Balance, Issued Shares at Sep. 30, 2015 | 33,787,094 | 33,787,094 | ||||
Ending Balance, Treasury Shares at Sep. 30, 2015 | 0 | |||||
Ending Balance, Value at Sep. 30, 2015 | $ 400,163,000 | $ 3,378,000 | $ 0 | $ 69,756,000 | $ 359,341,000 | $ (32,312,000) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Document Period End Date | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 57,604 | $ 47,011 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,932 | 7,442 |
Benefit for deferred taxes | (5,749) | (1,810) |
Share based compensation | 1,244 | 1,333 |
Provision for doubtful accounts | 1,950 | 1,083 |
Debt discount amortization on convertible debt | 13 | 26 |
Unrealized foreign exchange (gain) loss | (2,008) | (256) |
Loss on put option | 0 | (296) |
Reduction of acquisition earnout accruals | (1,533) | (7,533) |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (6,328) | (1,901) |
Other assets | (3,606) | (3,977) |
Accounts payable and accrued expenses | (21,448) | (8,064) |
Accrued payroll and related benefits | 1,100 | 1,027 |
Deferred revenue | (3,096) | (704) |
Deferred rent | (111) | (272) |
Unrecognized tax benefits, period increase (decrease) | 594 | 9,337 |
Loss Contingency Accrual, Period Increase (Decrease) | (690) | (3,868) |
Other current liabilities | (205) | (188) |
Net cash provided by operating activities | 25,663 | 38,390 |
Cash flows from investing activities: | ||
Payments to Acquire Interest in Joint Venture | (6,000) | 0 |
Purchases of marketable securities | (940) | (595) |
Capital expenditures | (12,713) | (15,922) |
Net cash used in investing activities | (32,128) | (24,620) |
Cash flows from financing activities: | ||
Proceeds from Lines of Credit | 66,000 | 40,625 |
Principal payments of term loan obligation | 0 | (31,938) |
Repurchases of common stock | (67,780) | (16,482) |
Excess tax benefit from share-based compensation | 63 | (3,200) |
Proceeds from the exercise of stock options | 1,117 | 788 |
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested | (1,141) | (37) |
Dividend payments | (7,989) | (8,652) |
Cash consideration for shares reacquired in connection with put option | 0 | (3,535) |
Principal payments of debt obligations | (638) | (336) |
Payments of capital lease obligations | (3) | (144) |
Net cash used in financing activities | (10,371) | (22,911) |
Effect of foreign exchange rates on cash | (2,264) | (183) |
Net change in cash and cash equivalents | (19,100) | (9,324) |
Cash and cash equivalents at the beginning of the period | 52,300 | 56,674 |
Cash and cash equivalents at the end of the period | 33,200 | 47,350 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 4,002 | 802 |
Income taxes paid | 24,663 | 10,782 |
Via Media Health [Member] | ||
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (1,000) | 0 |
PB Systems [Member] | ||
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (11,475) | 0 |
Healthcare Magic [Member] | ||
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | 0 | (5,856) |
Curepet, Inc. [Member] | ||
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | 0 | 3 |
Taimma [Member] | ||
Payment of acquisition earn-out contingency, Taimma | $ 0 | $ (2,250) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) Supplemental schedule of noncash financing activities (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015USD ($)shares | Jun. 30, 2012USD ($) | |
Derivative Liability | $ 8,013 | |
Common Stock Repurchase not settled, Shares | shares | (40,000) | |
Common Stock Repurchase not settled, Value | $ (1,000) | |
Curepet, Inc. [Member] | ||
Derivative Liability | 0 | |
Curepet, Inc. [Member] | ||
Derivative Liability | $ 0 | |
Cost Method Investment, Ownership Percentage | 19.80% | |
Payments to Acquire Other Investments | $ 2,000 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business— Ebix, Inc. and subsidiaries (“Ebix” or the “Company”) is an international supplier of on-demand software and e-commerce solutions to the insurance, healthcare and financial industries. Ebix provides various application software products for the insurance industry ranging from data exchanges, carrier systems, and agency systems, to custom software development for business entities across the insurance industry. The Company's products feature fully customizable and scalable on-demand software applications designed to streamline the way insurance professionals manage distribution, marketing, sales, customer service, and accounting activities. The Company has its headquarters in Johns Creek, Georgia and also conducts operating activities in Australia, Canada, India, New Zealand, Singapore, United Kingdom and Brazil. International revenue accounted for 22.7% and 32.8% of the Company’s total revenue for the nine months ended September 30, 2015 and 2014 , respectively. The Company’s revenues are derived from four product/service groups. Presented in the table below is the breakout of our revenue streams for each of those product/service groups for the three and nine months ended September 30, 2015 and 2014 . Three Months Ended Nine Months Ended September 30, September 30, (dollar amounts in thousands) 2015 2014 2015 2014 Exchanges $ 46,209 $ 41,757 $ 139,712 $ 125,212 Broker Systems 3,812 4,511 11,067 13,862 Risk Compliance Solutions (“RCS”) 15,754 3,346 41,218 10,423 Carrier Systems 1,038 1,194 3,281 4,191 Totals $ 66,813 $ 50,808 $ 195,278 $ 153,688 Summary of Significant Accounting Policies Basis of Presentation— The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the nine months ended September 30, 2015 and 2014 are not necessarily indicative of the results that may be expected for future quarters or the full year of 2015. The condensed consolidated December 31, 2014 balance sheet included in this interim period filing has been derived from the audited financial statements at that date but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Reclassification— The change in reserve for potential uncertain income tax return positions had been previously netted against the provision for deferred taxes line in the consolidated statements of cash flows, it is now shown separately. Also, beginning in 2014 the Company has applied the new provisions under Financial Accounting Standard ("FAS") update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, A Similar Tax Loss, or a Tax Credit Carryforward Exists and as more fully described in Note 6 "Income Taxes". A portion of potential uncertain income tax return positions previously reported in "Other Liabilities" on the condensed consolidated balance sheets are now netted against the "Deferred tax asset, net" line in the long term asset section of the condensed consolidated balance sheets. Advertising —With the exception of certain direct-response costs, advertising costs are expensed as incurred. Advertising costs amounted to $2.1 million and $695 thousand in the first nine months of 2015 and 2014, respectively, and are included in sales and marketing expenses in the accompanying Condensed Consolidated Statements of Income. Sales and marketing expenses have been reduced in the first nine months of 2015 as a result of the deferment of (net of amortization) $2.9 million of certain direct-response advertising costs associated with our recent acquisition of Oakstone, which have been capitalized in accordance with Accounting Standards Codification ("ASC") Topic 340. These costs are being amortized to expense over periods ranging from twelve to twenty-four months based on the type of product the customer purchases. Fair Value of Financial Instrument— The Company follows the relevant GAAP guidance concerning fair value measurements which provides a consistent framework to define, measure, and disclose the fair value of assets and liabilities in financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction. This guidance establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective data from external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. • Level 1 Inputs - Unadjusted quoted prices available in active markets for identical investments to the reporting entity at the measurement date • Level 2 Inputs - Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs - Unobservable inputs, which are used to the extent that observable inputs are not available, and used in situations where there is little or no market activity for the asset or liability and wherein the reporting entity makes estimates and assumptions related to the pricing of the asset or liability including assumptions regarding risk. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of September 30, 2015 the Company had the following financial instruments to which it had to consider fair values and had to make fair assessments: • Short-term investments for which the fair values are measured as a Level 1 instrument. • Contingent accrued earn-out business acquisition consideration liabilities for which fair values are measured as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration payable can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3. Other financial instruments not measured at fair value on the Company's unaudited condensed consolidated balance sheet at September 30, 2015 but which require disclosure of their fair values include: cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, accrued payroll and related benefits, capital lease obligations, and debt under the revolving line of credit with Regions Financial Corporation. The Company believes that the estimated fair value of such instruments at September 30, 2015 and December 31, 2014 , approximates their carrying value as reported on the unaudited Condensed Consolidated Balance Sheet. Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following tables: Fair Values at Reporting Date Using* Descriptions Balance, September 30, 2015 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets Available-for-sale securities: Commercial bank certificates of deposits $ 1,014 $ 1,014 $ — $ — Total assets measured at fair value $ 1,014 $ 1,014 $ — $ — Liabilities Derivatives: Contingent accrued earn-out acquisition consideration (a) $ 8,013 $ — $ — $ 8,013 Total liabilities measured at fair value $ 8,013 $ — $ — $ 8,013 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. * During the three months ended September 30, 2015 there were no transfers between fair value Levels 1, 2 or 3. Fair Values at Reporting Date Using* Descriptions Balance, December 31, 2014 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets Available-for-sale securities: Commercial bank certificates of deposits $ 281 281 $ — $ — Total assets measured at fair value $ 281 $ 281 $ — $ — Liabilities Derivatives: Contingent accrued earn-out acquisition consideration (a) $ 5,367 $ — $ — $ 5,367 Total liabilities measured at fair value $ 5,367 $ — $ — $ 5,367 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. * During the nine months ended September 30, 2015 there were no transfers between fair value Levels 1, 2 or 3. For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the nine months ended September 30, 2015 and during the year ended December 31, 2014 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Earn-out Acquisition Consideration Balance, September 30, 2015 Balance, December 31, 2014 (in thousands) Beginning balance $ 5,367 $ 14,420 Total remeasurement adjustments: (Gains) or losses included in earnings ** (1,533 ) (10,237 ) Reductions recorded against goodwill (2,000 ) — Foreign currency translation adjustments *** (47 ) (314 ) Acquisitions and settlements Business acquisitions 6,226 4,312 Settlement payments — (2,814 ) Ending balance $ 8,013 $ 5,367 The amount of total (gains) or losses for the period included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at period-end. $ (1,533 ) $ (8,911 ) ** recorded as an adjustment to reported general and administrative expenses *** recorded as a component of other comprehensive income within stockholders' equity Quantitative Information about Level 3 Fair Value Measurements The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (in thousands) Fair Value at September 30, 2015 Valuation Technique Significant Unobservable Input Contingent acquisition consideration: (Qatarlyst, Vertex, PB Systems, and Via Media acquisitions) $8,013 Discounted cash flow Projected revenue and probability of achievement (in thousands) Fair Value at December 31, 2014 Valuation Technique Significant Unobservable Input Contingent acquisition consideration: (Qatarlyst, HealthCare Magic, Vertex, and i3 acquisitions) $5,367 Discounted cash flow Projected revenue and probability of achievement Sensitivity to Changes in Significant Unobservable Inputs As presented in the table above, the significant unobservable inputs used in the fair value measurement of contingent consideration related to business acquisitions are projected revenue forecasts as developed by the relevant members of Company's management team and the probability of achievement of those revenue forecasts. The discount rate used in these calculations is 1.75% . Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly higher (lower) fair value measurement. Revenue Recognition— The Company derives its revenues primarily from subscription and transaction fees pertaining to services delivered over our exchanges or from our ASP platforms, fees for risk compliance solution services, and fees for software development projects including associated fees for consulting, implementation, training, and project management provided to customers with installed systems and applications. Sales and value-added taxes are not included in revenues, but rather are recorded as a liability until the taxes assessed are remitted to the respective taxing authorities. In accordance with Financial Accounting Standard Board (“FASB”) and SEC accounting guidance on revenue recognition, the Company considers revenue earned and realizable when: (a) persuasive evidence of the sales arrangement exists, provided that the arrangement fee is fixed or determinable, (b) delivery or performance has occurred, (c) customer acceptance has been received or is assured, if contractually required, and (d) collectability of the arrangement fee is probable. The Company uses signed contractual agreements as persuasive evidence of a sales arrangement. We apply the provisions of the relevant generally accepted accounting principles related to all transactions involving the license of software where the software deliverables are considered more than inconsequential to the other elements in the arrangement. For contracts that contain multiple deliverables, we analyze the revenue arrangements in accordance with the relevant technical accounting guidance, which provides criteria governing how to determine whether goods or services that are delivered separately in a bundled sales arrangement should be considered as separate units of accounting for the purpose of revenue recognition. These types of arrangements include deliverables pertaining to software licenses, system set-up, and professional services associated with product customization or modification. Delivery of the various contractual elements typically occurs over periods of less than eighteen months . These arrangements generally do not have refund provisions or have very limited refund terms. Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by FASB using the percentage-of-completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee. Accounts Receivable and the Allowance for Doubtful Accounts Receivable— Reported accounts receivable include $39.3 million of trade receivables stated at invoice billed amounts and $10.3 million of unbilled receivables, net of the estimated allowance for doubtful accounts receivable in the amount of $2.4 million ,. The unbilled receivables pertain to certain projects for which the timing of billing is tied to contractual milestones. The Company adheres to such contractually stated performance milestones and accordingly issues invoices to customers as per contract billing schedules. Approximately $6.3 million of deferred revenue is included in billed accounts receivable at September 30, 2015 . The Company recognized and recorded bad debt expense in the amount of $1.65 million and $1.95 million for the three and nine -month periods ended September 30, 2015 and $336 thousand and $1.1 million for the three and nine -month periods ended September 30, 2014 , respectively. Accounts receivable are written off against the allowance account when the Company has exhausted all reasonable collection efforts. During the nine months ending September 30, 2015 $1.2 million of accounts receivable were written off. Goodwill and Other Indefinite-Lived Intangible Assets— Goodwill represents the cost in excess of the fair value of the net assets of acquired businesses. Indefinite-lived intangible assets represent the fair value of certain acquired contractual customer relationships for which future cash flows are expected to continue indefinitely. In accordance with the relevant FASB accounting guidance, goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurs or circumstances change that would likely have reduced the fair value of a reporting unit below its carrying value. Potential impairment indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, and the sale or disposition of a significant portion of the business. The impairment evaluation process involves an assessment of certain qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not that the fair value of any of our reporting units was less than its carrying amount. If after assessing the totality of events or circumstances, we were to determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not perform the two-step quantitative impairment testing described further below. The aforementioned two-step quantitative testing process involves comparing the reporting unit carrying values to their respective fair values; we determine fair value of our reporting units by applying the discounted cash flow method using the present value of future estimated net cash flows. If the fair value of a reporting unit exceeds its carrying value, then no further testing is required. However, if a reporting unit's fair value were to be less than its carrying value, we would then determine the amount of the impairment charge, if any, which would be the amount that the carrying value of the reporting unit's goodwill exceeded its implied value. Projections of cash flows are based on our views of growth rates, operating costs, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. We believe that our estimates are consistent with assumptions that marketplace participants would use in their estimates of fair value. The use of different estimates or assumptions for our projected discounted cash flows (e.g., growth rates, future economic conditions, discount rates and estimates of terminal values) when determining the fair value of our reporting units could result in different values and may result in a goodwill impairment charge. We perform our annual goodwill impairment evaluation and testing as of September 30th of each year. This evaluation is done during the fourth quarter each year. During the year ended December 31, 2014 we had no impairment of our reporting unit goodwill balances. The 2015 goodwill impairment evaluation is currently underway and will be completed commensurate with the release of the Company's full year 2015 financial reporting. Changes in the carrying amount of goodwill for the nine months ended September 30, 2015 and the year ended December 31, 2014 are reflected in the following table. September 30, 2015 December 31, 2014 (In thousands) Beginning Balance $ 402,220 $ 337,068 Additions (net of adjustments) 10,382 68,503 Foreign currency translation adjustments (4,509 ) (3,351 ) Ending Balance $ 408,093 $ 402,220 Finite-lived Intangible Assets— Purchased intangible assets represent the estimated acquisition date fair value of customer relationships, developed technology, trademarks and non-compete agreements obtained in connection with the businesses we acquire. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows: Category Life (yrs) Customer relationships 7–20 Developed technology 3–12 Trademarks 3–15 Non-compete agreements 5 Database 10 The carrying value of finite-lived and indefinite-lived intangible assets at September 30, 2015 and December 31, 2014 are as follows: September 30, December 31, (In thousands) Finite-lived intangible assets: Customer relationships $ 70,262 $ 66,783 Developed technology 17,205 15,664 Trademarks 2,739 2,751 Non-compete agreements 743 751 Backlog 140 140 Database 212 212 Total intangibles 91,301 86,301 Accumulated amortization (41,710 ) (36,930 ) Finite-lived intangibles, net $ 49,591 $ 49,371 Indefinite-lived intangibles: Customer/territorial relationships $ 30,887 $ 30,887 Amortization expense recognized in connection with acquired intangible assets was $1.8 million and $5.4 million for the three and nine months ended September 30, 2015 and $1.9 million and $5.6 million for the three and nine months ended September 30, 2014 , respectively. Foreign Currency Translation— The functional currency for the Company's foreign subsidiaries in India and Singapore is the U.S. dollar because the intellectual property research and development activities provided by its Singapore subsidiary, and the product development and information technology enabled services activities for the insurance industry provided by its India subsidiary, both in support of Ebix's operating divisions across the world, are transacted in U.S. dollars. The functional currency of the Company's other foreign subsidiaries is the local currency of the country in which the subsidiary operates. The assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at the rates of exchange at the balance sheet dates. Income and expense accounts are translated at the average exchange rates in effect during the period. Gains and losses resulting from translation adjustments are included as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets, and are included in the condensed consolidated statements of comprehensive income. Foreign exchange transaction gains and losses that are derived from transactions denominated in a currency other than the subsidiary's functional currency are included in the determination of net income. Income Taxes— Deferred income taxes are recorded to reflect the estimated future tax effects of differences between the financial statement and tax basis of assets, liabilities, operating losses, and tax credit carry forwards using the tax rates expected to be in effect when the temporary differences reverse. Valuation allowances, if any, are recorded to reduce deferred tax assets to the amount management considers more likely than not to be realized. Such valuation allowances are recorded for the portion of the deferred tax assets that are not expected to be realized based on the levels of historical taxable income and projections for future taxable income over the periods in which the temporary differences will be deductible. The Company also applies FASB accounting guidance on accounting for uncertainty in income taxes positions. This guidance clarifies the accounting for uncertainty in income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. In this regard we recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company has applied the provisions under FAS update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry Forward, A Similar Tax Loss, or a Tax Credit Carry Forward Exists. Under these provisions, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss, or a tax credit carry forward in most cases. This provision has been applied and $1.20 million and $1.14 million of unrecognized tax benefits have been applied against NOL carry forward amounts as of September 30, 2015 and December 31, 2014, respectively. Recent Relevant Accounting Pronouncements— The following is a brief discussion of recently released accounting pronouncements that are pertinent to the Company's business: In September 2015 the FASB issued Accounting Standards Update (ASU) No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This pronouncement simplifies the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments eliminate the requirement to retrospectively account for those adjustments. U.S. GAAP currently requires that during the measurement period, the acquirer retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. Those adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The acquirer also must revise comparative information for prior periods presented in financial statements as needed, including revising depreciation, amortization, or other income effects as a result of changes made to provisional amounts. The amendments require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record and disclose, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The only disclosures required at transition should be the nature of and reason for the change in accounting principle. An entity should disclose that information in the first annual period of adoption and in the interim periods within the first annual period if there is a measurement-period adjustment during the first annual period in which the changes are effective. The Company adopted this ASU during the third quarter of 2015 and its adoption did not have a material impact on its financial statements. In November 2014 the FASB issued Accounting Standards Update ("ASU") No. 2014-17 " Business Combinations Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU apply to the separate financial statements of an acquired entity and its subsidiaries that are a business (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. The amendments in this ASU provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. If an acquired entity elects the option to apply pushdown accounting in its separate financial statements, it should disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. The amendments in this ASU were effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. The Company has adopted this ASU and its adoption has not had a material impact on its financial statements. In May 2014 the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customer s" . ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. An entity should apply the amendments in this ASU using one of the following two methods: 1. Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients: • For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period. • For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In thousands, except per share data) Net income for basic and diluted earnings per share $ 20,232 $ 18,015 $ 57,604 $ 47,011 Basic Weighted Average Shares Outstanding 34,304 38,050 35,014 38,264 Dilutive effect of stock options and restricted stock awards 211 203 227 235 Diluted weighted average shares outstanding 34,515 38,253 35,241 38,499 Basic earnings per common share $ 0.59 $ 0.47 $ 1.65 $ 1.23 Diluted earnings per common share $ 0.59 $ 0.47 $ 1.63 $ 1.22 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations The Company seeks to execute accretive business acquisitions in combination with organic growth initiatives as part of its comprehensive business growth and expansion strategy, which primarily consist of businesses that are complementary to Ebix's existing products and services. During the nine months ended September 30, 2015 , the Company completed two business acquisitions, as follows: The Company acquired PB Systems, Inc. and PB Systems Private Limited (together being "PB Systems"), effective June 1, 2015. PB Systems develops and implements software solutions for insurance clients. Ebix acquired PB Systems for upfront cash consideration in the amount of $12.4 million , plus possible future contingent earn out payments of up to $8.0 million based on earned revenues over the subsequent twenty-four month period following the effective date of the acquisition. The valuation and purchase price allocation for the PB Systems acquisition is preliminary and will be finalized prior to December 31, 2015. The Company acquired Via Media Health Communications Private Limited ("Via Media Health"), effective March 1, 2015. Via Media Health is one of India’s leading health content and communication companies. Ebix acquired Via Media Health for upfront cash consideration in the amount of $1.0 million , plus a possible future one time contingent earn out payment of up to $372 thousand based on earned revenues over the subsequent twelve month period following the effective date of the acquisition, and an additional possible one time future performance bonus depending upon revenue growth realized in the business over the subsequent twenty-four month period following the effective date of the acquisition. The valuation and purchase price allocation for the Via Media Health acquisition remains preliminary and will be finalized prior to December 31, 2015. During the year ended December 31, 2014 the Company complete the following business acquisitions, as follows: Effective December 2, 2014, Ebix acquired Oakstone Publishing, LLC ("Oakstone") in a membership interest purchase agreement for total net cash consideration in the amount of $23.72 million ( $31.37 million less a closing net working capital adjustment of $7.65 million ). Oakstone is leading provider of continuing education, certification materials for physicians, dentists and allied healthcare professionals, as well as wellness resources for various organizations. Ebix acquired all of the outstanding membership interests of Oakstone and funded the purchase using a mix of internal cash reserves and the bank credit line available to Ebix. The Company accounted for this acquisition by recording $28.8 million of goodwill, $1.7 million of intangible assets pertaining to customer relationships, $501 thousand of intangible assets pertaining to acquired technology, and a $6.5 million deferred revenue liability. The valuation and purchase price allocation for the Oakstone acquisition remains preliminary and will be finalized prior to December 31, 2015. On December 1, 2014, Ebix acquired the DCM Group Inc. (d.b.a. i3 Software) ("i3") in an asset purchase agreement for total cash consideration in the amount of $2 million and a possible contingent earn out of up to $4 million based on earned revenues over the subsequent twenty-four month period following the date of the acquisition. i3 is a provider of software services and solutions to the insurance industry. Ebix acquired all of the assets of i3 and funded the purchase using internal cash reserves. The Company accounted for this acquisition by recording $1.6 million of goodwill, $310 thousand of intangible assets pertaining to customer relationships, and $48 thousand of intangible assets pertaining to acquired technology. On November 3, 2014, Ebix acquired Vertex, Incorporated ("Vertex"), with an effective date of October 1, 2014, in a share purchase agreement for total cash purchase consideration in the amount of $27.25 million and a possible contingent earn out of $2 million based on earned revenues over the subsequent twenty-four month period following the date of the acquisition. Vertex is a specialized software and services firm focused primarily on the life and annuity insurance marketplace since 1991. Ebix acquired all of the outstanding capital stock of Vertex and funded the purchase using a mix of internal cash reserves and the bank credit line available to Ebix. The Company accounted for this acquisition by recording $27.7 million of goodwill, $2.5 million of intangible assets pertaining to customer relationships, and $235 thousand of intangible assets pertaining to acquired technology. On May 21, 2014, Ebix acquired HealthCare Magic Private Limited ("HealthCare Magic"), a medical advisory service with an online network of approximately fifteen thousand General Physicians and Surgeons spread across fifty specialties including alternative medicine. The Company acquired HealthCare Magic for aggregate cash consideration in the amount of $6.0 million plus a possible future one time contingent earn out payment of up to $12.36 million based on earned revenues over the subsequent twenty-four month period following the effective date of the acquisition. This contingent earnout liability is currently estimated to have a fair value of $596 thousand . The Company funded the HealthCare Magic acquisition from available cash reserves on hand. The Company accounted for this acquisition by recording $5.6 million of goodwill, $452 thousand of intangible assets pertaining to customer relationships, $100 thousand of intangible assets pertaining to acquired technology, $59 thousand on intangible assets pertaining to trademarks and tradenames, and $226 thousand of intangible assets pertaining to non-compete agreements. On January 27, 2014, Ebix acquired CurePet. CurePet was a developmental-stage enterprise that developed an insurance exchange that connects pet owners, referring veterinarians, animal hospitals, academic institutes, and suppliers of medical and general pet supplies, while providing a wide variety of services related to pet insurance to each constituent including practice management, electronic medical records, and billing. Previously Ebix had a minority investment in CurePet. Ebix acquired the entire business of CurePet in an asset purchase agreement with total purchase consideration being $6.35 million which includes a possible future one time contingent earnout payment of up to $5.0 million based on earned revenues over the subsequent thirty-six month period following the effective date of the acquisition. This contingent earnout liability is currently estimated to have a fair value of zero . Additional required cash consideration of $1.35 million was offset against open accounts receivable balances due to the Company from CurePet, and no actual cash outlay was made by the Company. As discussed in Note 9, "Investment in Joint Venture," to the accompanying financial statements, upon the formation of Ebix Health Solutions, LLC, effective September 1, 2015, a joint venture between Ebix and IHC Health Holdings Corporation, Ebix contributed certain portions of its investment in CurePet to said joint venture as part of the consideration towards Ebix's 40% membership interest. The agreed upon value of the contributed CurePet investment was $2.0 million . A significant component of the purchase price consideration for many of the Company's business acquisitions is a potential subsequent cash earnout payment based on reaching certain specified future revenue targets. The Company recognizes these potential obligations as contingent liabilities and are reported accordingly on its Condensed Consolidated Balance Sheets. As discussed in more detail in Note 1, these contingent consideration liabilities are recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted if necessary. During the nine months ended September 30, 2015 and 2014 these aggregate contingent accrued earn-out business acquisition consideration liabilities were reduced by $1.5 million and $7.5 million , respectively, due to remeasurements as based on the then assessed fair value and changes in anticipated future revenue levels. These reductions to the contingent accrued earn-out liabilities resulted in a corresponding reduction to general and administrative expenses as reported on the Condensed Consolidated Statements of Income. As of September 30, 2015 , the total of these contingent liabilities was $8.01 million , of which $6.32 million is reported in long-term liabilities, and $1.69 million is included in current liabilities in the Company's Condensed Consolidated Balance Sheet. As of December 31, 2014 the total of these contingent liabilities was $5.37 million , of which $4.48 million is reported in long-term liabilities, and $887 thousand is included in current liabilities in the Company's Condensed Consolidated Balance Sheet. Consideration paid by the Company for the businesses it purchases is allocated to the assets and liabilities acquired based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair values of assets acquired and liabilities assumed is recorded as goodwill. Recognized goodwill pertains to the value of the expected synergies to be derived from combining the operations of the businesses we acquire including the value of the acquired workforce. The aggregated unaudited pro forma financial information pertaining to all of the Company's acquisitions made during the nine months ended September 30, 2014 and September 30, 2015 , which includes the acquisitions of CurePet (acquired in January 2014), Via Media Health (acquired in March 2015), and PB Systems (acquired June 2015), as well as the effect of other businesses acquired in 2014, namely HealthCare Magic (May 2014), Vertex (October 2014), Oakstone (December 2014), and i3 (December 2014), as presented in the table below is provided for informational purposes only and is not a projection of the Company's expected results of operations for any future period. No effect has been given in this pro forma information for future synergistic benefits that may still be realized as a result of combining these companies or costs that may yet be incurred in integrating their operations. The 2015 and 2014 pro forma financial information below assumes that all such business acquisitions were made on January 1, 2014, whereas the Company's reported financial statements for the three and nine months ended September 30, 2015 only include the operating results from these businesses since the effective date that they were acquired by Ebix. Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ending September 30, 2015 Nine Months Ending September 30, 2014 As Reported Pro Forma As Reported Pro Forma As Reported Pro Forma As Reported Pro Forma (unaudited) (unaudited) (unaudited) (unaudited) (In thousands, except per share data) Revenue $ 66,813 $ 66,813 $ 50,808 $ 69,642 $ 195,278 $ 202,031 $ 153,688 $ 209,622 Net Income $ 20,232 $ 20,232 $ 18,015 $ 17,711 $ 57,604 $ 57,834 $ 47,011 $ 47,075 Basic EPS $ 0.59 $ 0.59 $ 0.47 $ 0.47 $ 1.65 $ 1.65 $ 1.23 $ 1.23 Diluted EPS $ 0.59 $ 0.59 $ 0.47 $ 0.46 $ 1.63 $ 1.64 $ 1.22 $ 1.22 During the three months ended September 30, 2015 the Company's reported total operating revenues increased by $16.0 million or 32% to $66.8 million as compared to $50.8 million during the third quarter of 2014. Revenues increased as a result of revenue growth from Life, Annuity, Underwriting, Health Content services, in addition to revenue growth generated from the Company's 2014 acquisitions of HealthCare Magic, Vertex, and Oakstone and the 2015 acquisition of PB Systems, partially offset by the drop in revenue from international locations due to the strengthening of the U.S. dollar and a modest decrease in revenues from the company’s pharmaceutical and P&C carrier backend operations. The adverse impact from fluctuations of the exchange rates for the foreign currencies in the countries in which we conduct operations which in the aggregate reduced reported revenues in the 3rd quarter of 2015 by $3.4 million . With respect to business acquisitions completed during the years 2015 and 2014 on a pro forma basis, as disclosed in the above “Pro Forma Financial Information”, combined revenues decreased 4.1% for the third quarter of 2015 versus the third quarter of 2014. The 2015 and 2014 pro forma financial information assumes that all business acquisitions made during this period were made on January 1, 2014, whereas the Company's reported financial statements for Q3 2015 and Q3 2014 only includes the revenues from these businesses since the effective date that they were acquired by Ebix, being January 2014 for CurePet, May 2014 for HealthCare Magic, October 2014 for Vertex, December 2014 for Oakstone and i3, March 2015 for Via Media Health, and June 2015 for PB Systems. The above referenced pro forma information and the relative comparative change in pro forma and reported revenues are based on the following premises: • 2015 and 2014 pro forma revenue contains actual revenue of the acquired entities before acquisition date, as reported by the sellers, as well as actual revenue of the acquired entities after acquisition. Whereas the reported growth in revenues of the acquired entities after acquisition date are only reflected for the period after their acquisition. • Revenue billed to existing clients from the cross selling of acquired products has been assigned to the acquired section of our business. • Any existing products sold to new customers obtained through a newly acquired customer base, are assigned to the acquired section of our business. • Pro formas do not include post acquisition revenue reductions as a result of discontinuation of any product lines and/or customer projects by Ebix in its bid to maximize profitability. |
Debt with Commercial Bank
Debt with Commercial Bank | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt with Commercial Bank | Debt with Commercial Bank On February 3, 2015, Ebix, Inc. and certain of its subsidiaries entered into the First Amendment (the “First Amendment”) to the Regions Secured Credit Facility, dated August 5, 2014, among the Company, Regions Financial Corporation as Administrative Agent (“Regions”), with Regions, MUFG Union Bank N.A., and Silicon Valley Bank as joint lenders. The First Amendment amends the Regions Credit Facility by increasing the maximum amount by which the Aggregate Revolving Commitments may be increased to $90 million from the pre-existing limit of $50 million , increases the amount of base facility to $190 million from the pre-existing amount of $150 million , which together with the $50 million accordion feature increases the total Credit Agreement capacity amount to $240 million from the prior amount of $200 million , and expands the syndicated bank group to four participants by adding Fifth Third Bank. On August 5, 2014, Ebix entered into a credit agreement providing for a $150 million secured syndicated credit facility (the “Regions Secured Credit Facility”) with Regions as administrative agent and Regions with MUFG Union Bank N.A., and Silicon Valley Bank as joint lenders. The financing is comprised of a five -year, $150 million secured revolving credit facility, with an option to expand to $200 million upon request and with additional lender commitments. This new $150 million credit facility with Regions, as administrative agent, replaced the former syndicated $100 million facility that the Company had in place with Citi Bank, N.A. which was paid in full upon the undertaking of this new loan facility with Regions. The interest rate applicable to the Secured Syndicated Credit Facility is LIBOR plus 1.50% . Under the Regions Secured Credit Facility the maximum interest rate that could be charged depending upon the Company's leverage ratio is LIBOR plus 2.25% . The underlying financing agreement contains financial covenants regarding the Company's fixed charge coverage ratio and leverage ratio, as well as certain restrictive covenants pertaining to such matters as the incurrence of new debt and the consummation of new business acquisitions. The Company currently is in compliance with all such financial and restrictive covenants. As of September 30, 2015 the Company's consolidated balance sheet includes $1.40 million of remaining deferred financing costs. At September 30, 2015 , the outstanding balance on the revolving line of credit under the Regions Secured Credit Facility was $186.5 million and the facility carried an interest rate of 2.00% . During the nine months ended September 30, 2015 , $66.0 million of draws were made off of the revolving credit facility, and no payments were made against the revolving line of credit. The revolving line of credit balance is included in the long-term liabilities section of the Condensed Consolidated Balance Sheets. During the nine months period ended September 30, 2015 , the average and maximum outstanding balances on our revolving line of credit facilities were $145.1 million and $186.5 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies -On December 3, 2012, the Company received a subpoena and letter from the SEC dated November 30, 2012, stating that the SEC is conducting a formal, non-public investigation styled In the Matter of Ebix, Inc. (A-3318) and seeking documents primarily related to the issues raised in the matter styled In re: Ebix, Inc. Securities Litigation, Civil Action No. 1:11-CV-02400-RWS (N.D. Ga.). On April 16, 2013, the Company received a second subpoena from the SEC seeking additional documents. The Company has cooperated with the SEC to provide the requested documents. On June 6, 2013, the Company was notified that the U.S. Attorney for the Northern District of Georgia had opened an investigation into allegations of intentional misconduct that had been brought to its attention from the pending shareholder class action lawsuit against the Company's directors and officers, the media and other sources. The Company has cooperated with the U.S. Attorney's office. Following the announcement on May 1, 2013 of the Company's execution of a merger agreement with affiliates of Goldman Sachs & Co., twelve putative class action complaints challenging the proposed merger were filed in the Delaware Court of Chancery. These complaints name as Defendants some combination of the Company, its directors, Goldman Sachs & Co. and affiliated entities. On June 10, 2013, the twelve complaints were consolidated by the Delaware Court of Chancery, now captioned In re Ebix, Inc. Stockholder Litigation, CA No. 8526-VCN. On June 19, 2013, the Company announced that the merger agreement had been terminated pursuant to a Termination and Settlement Agreement dated June 19, 2013. After Defendants moved to dismiss the consolidated proceeding, Lead Plaintiffs amended their operative complaint to drop their claims against Goldman Sachs & Co. and focus their allegations on an Acquisition Bonus Agreement (“ABA”) between the Company and Robin Raina. On September 26, 2013, Defendants moved to dismiss the Amended Consolidated Complaint. On July 24, 2014, the Court issued its Memorandum Opinion that granted in large part the Company’s Motion to Dismiss and narrowed the remaining claims. The only remaining counts are as follows: (i) Counts II and IV, but only to the extent the Plaintiffs seek non-monetary relief for alleged material misstatements related to the ABA base price in the 2010 Proxy Statement; (ii) Count II, but only to the extent it challenges the continued existence of the ABA as an alleged unreasonable anti-takeover device; and, (iii) Count V, but only to the extent that it relates to the compensation the Board received under the Company’s 2010 Stock Incentive Plan. On September 15, 2014, the Court entered an Order implementing its Memorandum Opinion. On January 16, 2015, the Court entered an Order permitting Plaintiffs to file a Second Amended and Supplemented Complaint. As currently pled, the Second Amended and Supplemented Complaint asserts (i) a purported class and derivative claim for breach of fiduciary duty by the individual Defendants in improperly maintaining the ABA as an unreasonable anti-takeover device; (ii) a purported class claim against the individual Defendants for breach of the fiduciary duty of disclosure to the stockholders with respect to the Company’s 2010 Proxy Statement and 2010 Stock Incentive Plan, (iii) a purported derivative claim against the individual Defendants for breach of fiduciary duty to the Company in causing incentive compensation to be awarded to themselves and others under the 2010 Stock Incentive Plan, (iv) a purported class and derivative claim for breach of fiduciary duty by the individual Defendants in adopting the August 5, 2014 Credit Agreement, the November 26, 2014 Director Nomination Agreement with Barrington Capital Group, L.P. and certain bylaw amendments adopted December 19, 2014, (v) a purported class and derivative claim seeking invalidation of the December 19, 2014 bylaw amendments under Delaware law, and (vi) a purported class claim for breach of fiduciary duty by the individual Defendants for issuing a purportedly materially misleading and incomplete 2014 Proxy Statement. On February 10, 2015, Defendants filed a Motion to Dismiss the Second Amended and Supplemented Complaint, which is pending. The Company denies any liability and intends to defend the action vigorously. The Company is involved in various other claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate likely disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. Lease Commitments— The Company leases office space under non-cancelable operating leases with expiration dates ranging through 2021, with various renewal options. Capital leases range from three to five years and are primarily for computer equipment. There were multiple assets under various individual capital leases at September 30, 2015 and 2014 . Rental expense for office facilities and certain equipment subject to operating leases for the nine months ended September 30, 2015 and 2014 was $4.9 million and $4.9 million , respectively. Self Insurance— For most of the Company’s U.S. employees the Company is self-insured for its health insurance program and has a stop loss policy that limits the individual liability to $120 thousand per person and the aggregate liability to 125% of the expected claims based upon the number of participants and historical claims. As of September 30, 2015 , the amount accrued on the Company’s Condensed Consolidated Balance Sheet for the self-insured component of the Company’s employee health insurance was $276 thousand . The maximum potential estimated cumulative liability for the annual contract period, which ends in September 2016, is $2.9 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $1.88 million ( 8.49% ) and $5.41 million ( 8.59% ) during the three months and nine months ended September 30, 2015 , respectively, which included discrete items for prior year true-ups and currency fluctuations that resulted in a net charge of $230 thousand . The Company recorded income tax expense of $4.01 million ( 18.21% ) and $11.55 million ( 19.72% ) during the three months and nine months ended September 30, 2014 , respectively, which included discrete charges for the increase in the Company’s reserve for uncertain tax positions of $9.34 million , netted with a benefit for prior year true-ups of $2.91 million . Our tax expense and effective tax rate decreased year over year, exclusive of discrete charges, due to favorable changes in the proportion of our taxable income in certain foreign jurisdictions relative to total pre-tax income. The Company’s effective tax rate reflects the benefits of having significant operations outside the United States, which are generally taxes at rates lower than the US statutory rate of 35% and where the Company enjoys a tax holiday in India. The Company also recently secured an additional tax holiday in India until the year 2020 to support certain portions of its expanding operations there. Prior to this third quarter of 2015, the Company had a concessionary tax rate in Singapore of 10% , however, during the quarter the Company decided to forego further negotiations to retain these concessions and as such our tax rate in Singapore has reverted back to the statutory enacted tax rate of 17% effective January 1, 2015. As of September 30, 2015 a liability of $3.13 million for uncertain tax positions is included in other long term liabilities of the Company's Condensed Consolidated Balance Sheet. During the three and nine months ended September 30, 2015 there was $0 and $108 thousand , respectively, in additions to this liability reserve. The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense. |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company operates with one reportable segment whose results are regularly reviewed by the Company's chief operating decision maker as to performance and allocation of resources. External customer revenues in the tables below are attributed to a particular country based on whether the customer had a direct contract with the Company which was executed in that particular country for the sale of the Company's products/services with an Ebix subsidiary located in that country. The following enterprise wide information relates to the Company's geographic locations (all amounts in thousands): As of and for the Nine Months Ended September 30, 2015 United States Canada Latin America Australia Singapore New Zealand India Europe Total External Revenues $ 150,873 $ 3,386 $ 4,399 $ 23,301 $ 3,855 $ 1,662 $ 2,548 $ 5,254 $ 195,278 Long-lived assets $ 374,639 $ 6,899 $ 5,843 $ 465 $ 68,805 $ 204 $ 73,921 $ 24,463 $ 555,239 As of and for the Nine Months Ended September 30, 2014 United States Canada Latin America Australia Singapore New Zealand India Europe Total External Revenues $ 103,225 $ 4,206 $ 4,961 $ 28,247 $ 3,194 $ 2,008 $ 1,112 $ 6,735 $ 153,688 Long-lived assets $ 316,810 $ 8,233 $ 10,391 $ 652 $ 68,113 $ 77 $ 38,625 $ 27,286 $ 470,187 |
Minority Business Investment
Minority Business Investment | 9 Months Ended |
Sep. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
Minority Business Investment | Minority Business Investment In 2012, Ebix acquired a minority 19.8% interest in CurePet for cash consideration in the amount of $2.0 million . CurePet is a developmental-stage enterprise that developed an insurance exchange that connects pet owners, referring veterinarians, animal hospitals, academic institutes, and suppliers of medical and general pet supplies, while providing a wide variety of services related to pet insurance to each constituent including practice management, electronic medical records, and billing. The Company had been accounting for its minority investment in CurePet using the cost method. As disclosed in Note 3 "Business Combinations," effective January 27, 2014 Ebix acquired the entire business of CurePet in an asset purchase agreement with the total purchase consideration being in the amount of $6.35 million which included a possible contingent earn out payment of up to $5.0 million based on earned revenues over the subsequent thirty-six month period following the date of the acquisition. This contingent earnout liability is currently estimated to have a fair value of zero . During the nine months ended September 30, 2015 and 2014 the CurePet business generated $80 and $325 thousand , respectively, of revenue which is included in the Company’s consolidated revenues reported for the same period. As discussed immediately below in Note 9, "Investment in Joint Venture," upon the formation of Ebix Health Solutions, LLC, effective September 1, 2015, a joint venture between Ebix and IHC Health Holdings Corporation, Ebix contributed certain portions of its investment in CurePet to said joint venture as part of the consideration towards Ebix's 40% membership interest. The agreed upon value of the contributed CurePet investment was $2.0 million . |
Investment in Joint Venture (No
Investment in Joint Venture (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Investment in Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investment in Joint Venture Effective September 1, 2015 Ebix and Independence Holdings Corporation ("IHC") formed a joint venture named Ebix Health Solutions, LLC ("EbixHealth JV"). This joint venture was established to promote and market a best practices administration data exchange for health and pet insurance lines of business nationally. Ebix paid $6.0 million and contributed certain portions of its CurePet investment, valued by the EbixHealth JV at $2.0 million , for its 40% membership interest in the EbixHealth JV. IHC contributed all if its shares in its existing third party administrator operations (IHC Health Solutions, Inc.), valued by the EbixHealth JV at $18.0 million for its 60% membership interest in the EbixHealth JV. As per the joint venture agreement, any and all losses of the EbixHealth JV, (excluding certain severance payments to former employees of IHC Health Solutions, Inc.) through the period ending December 31, 2016 will be allocated to IHC, and IHC is obligated to fund any negative cash flow during this period as a loan to the EbixHealth JV, with any remaining the balance of said loan as of December 31, 2016 being then converted to contributed capital. Also, as per the joint venture agreement, Ebix has a call right during the two-year period following September 1, 2015 to purchase an additional 10% membership interest in the EbixHealth JV for a cash amount equal to the then trailing twelve months of revenue of the EbixHealth JV. Furthermore IHC also has been and continues to be a customer of Ebix, and during the nine months ending September 30, 2015 the Company recognized $445 thousand of revenue from IHC and as of September 30, 2015 IHC had $318 thousand of accounts receivables with Ebix. In addition, Ebix will be rendering services to the EbixHealth JV as a customer. During the nine months ending September 30, 2015 the Company did not recognize any revenue from the EbixHealth JV. Ebix is accounting for the investment in the EbixHealth JV using the equity method whereby 40% of the EbixHealth JV periodic profits or losses will be recognized in Ebix's financial statements, after December 16, 2016. |
Other Liabilities (Notes)
Other Liabilities (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities Other liabilities at September 30, 2015 and December 31, 2014 consisted of the following: September 30, 2015 December 31, 2014 (In thousands) Reserve for potential uncertain income tax return positions $ 3,128 $ 3,020 Unfavorable lease liability, long term portion 224 294 Portion of an unrecognized tax benefit netted against deferred tax asset for a net operating loss carryforward $ (1,195 ) $ (1,135 ) Total $ 2,157 $ 2,179 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 11: Subsequent Events Repurchases of Common Stock Since June 30, 2015 and through September 30, 2015 the Company repurchased 1,169,458 shares of its outstanding common stock for aggregate cash consideration in the amount of $34.3 million and at an average rate of $29.34 per share. Subsequent to September 30th and through November 7, 2015 the Company has re-purchased an additional 20,000 shares of its outstanding common stock for aggregate cash consideration in the amount of $500 thousand and at an average rate of $24.98 per share. All share repurchases were done in accordance with Rule 10b-18 of the Securities Act of 1934 as to the timing, pricing, and volume of such transactions, and were funded from available cash resources, cash generated from the Company's operating activities, and draws from the Company's revolving line of credit with our syndicated commercial banking facility. Expansion of Credit Facility Effective October 14, 2015 the Company, in coordination with Regions Financial Corporation ("Regions") as administrative agent and a joint lender, exercised the $50 million accordion feature in the existing Regions Secured Syndicated Credit Facility thereby expanding the total credit facility to $240 million . As part of this credit facility expansion, TD Bank, NA ("TD") was added to the syndication group along with five other bank participants, which include Regions, MUFG Union Bank N.A., Fifth Third Bank, and Silicon Valley Bank as joint lenders. TD commitment level is $25 million . As of November 8, 2015, the outstanding balance on the credit facility was $186.5 million . The expanded credit facility will continue to be used to fund the Company's future growth and share repurchase initiatives. |
Description of Business and S20
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation— The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the nine months ended September 30, 2015 and 2014 are not necessarily indicative of the results that may be expected for future quarters or the full year of 2015. The condensed consolidated December 31, 2014 balance sheet included in this interim period filing has been derived from the audited financial statements at that date but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . |
Fair Value of Financial Instruments | Fair Value of Financial Instrument— The Company follows the relevant GAAP guidance concerning fair value measurements which provides a consistent framework to define, measure, and disclose the fair value of assets and liabilities in financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction. This guidance establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective data from external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. • Level 1 Inputs - Unadjusted quoted prices available in active markets for identical investments to the reporting entity at the measurement date • Level 2 Inputs - Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs - Unobservable inputs, which are used to the extent that observable inputs are not available, and used in situations where there is little or no market activity for the asset or liability and wherein the reporting entity makes estimates and assumptions related to the pricing of the asset or liability including assumptions regarding risk. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of September 30, 2015 the Company had the following financial instruments to which it had to consider fair values and had to make fair assessments: • Short-term investments for which the fair values are measured as a Level 1 instrument. • Contingent accrued earn-out business acquisition consideration liabilities for which fair values are measured as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration payable can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3. |
Revenue Recognition | Revenue Recognition— The Company derives its revenues primarily from subscription and transaction fees pertaining to services delivered over our exchanges or from our ASP platforms, fees for risk compliance solution services, and fees for software development projects including associated fees for consulting, implementation, training, and project management provided to customers with installed systems and applications. Sales and value-added taxes are not included in revenues, but rather are recorded as a liability until the taxes assessed are remitted to the respective taxing authorities. In accordance with Financial Accounting Standard Board (“FASB”) and SEC accounting guidance on revenue recognition, the Company considers revenue earned and realizable when: (a) persuasive evidence of the sales arrangement exists, provided that the arrangement fee is fixed or determinable, (b) delivery or performance has occurred, (c) customer acceptance has been received or is assured, if contractually required, and (d) collectability of the arrangement fee is probable. The Company uses signed contractual agreements as persuasive evidence of a sales arrangement. We apply the provisions of the relevant generally accepted accounting principles related to all transactions involving the license of software where the software deliverables are considered more than inconsequential to the other elements in the arrangement. For contracts that contain multiple deliverables, we analyze the revenue arrangements in accordance with the relevant technical accounting guidance, which provides criteria governing how to determine whether goods or services that are delivered separately in a bundled sales arrangement should be considered as separate units of accounting for the purpose of revenue recognition. These types of arrangements include deliverables pertaining to software licenses, system set-up, and professional services associated with product customization or modification. Delivery of the various contractual elements typically occurs over periods of less than eighteen months . These arrangements generally do not have refund provisions or have very limited refund terms. Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by FASB using the percentage-of-completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets— Goodwill represents the cost in excess of the fair value of the net assets of acquired businesses. Indefinite-lived intangible assets represent the fair value of certain acquired contractual customer relationships for which future cash flows are expected to continue indefinitely. In accordance with the relevant FASB accounting guidance, goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurs or circumstances change that would likely have reduced the fair value of a reporting unit below its carrying value. Potential impairment indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, and the sale or disposition of a significant portion of the business. The impairment evaluation process involves an assessment of certain qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not that the fair value of any of our reporting units was less than its carrying amount. If after assessing the totality of events or circumstances, we were to determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not perform the two-step quantitative impairment testing described further below. The aforementioned two-step quantitative testing process involves comparing the reporting unit carrying values to their respective fair values; we determine fair value of our reporting units by applying the discounted cash flow method using the present value of future estimated net cash flows. If the fair value of a reporting unit exceeds its carrying value, then no further testing is required. However, if a reporting unit's fair value were to be less than its carrying value, we would then determine the amount of the impairment charge, if any, which would be the amount that the carrying value of the reporting unit's goodwill exceeded its implied value. Projections of cash flows are based on our views of growth rates, operating costs, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. We believe that our estimates are consistent with assumptions that marketplace participants would use in their estimates of fair value. The use of different estimates or assumptions for our projected discounted cash flows (e.g., growth rates, future economic conditions, discount rates and estimates of terminal values) when determining the fair value of our reporting units could result in different values and may result in a goodwill impairment charge. We perform our annual goodwill impairment evaluation and testing as of September 30th of each year. This evaluation is done during the fourth quarter each year. During the year ended December 31, 2014 we had no impairment of our reporting unit goodwill balances. |
Finite-lived Intangible Assets | Finite-lived Intangible Assets— Purchased intangible assets represent the estimated acquisition date fair value of customer relationships, developed technology, trademarks and non-compete agreements obtained in connection with the businesses we acquire. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows: Category Life (yrs) Customer relationships 7–20 Developed technology 3–12 Trademarks 3–15 Non-compete agreements 5 Database 10 |
Foreign Currency Translation | Foreign Currency Translation— The functional currency for the Company's foreign subsidiaries in India and Singapore is the U.S. dollar because the intellectual property research and development activities provided by its Singapore subsidiary, and the product development and information technology enabled services activities for the insurance industry provided by its India subsidiary, both in support of Ebix's operating divisions across the world, are transacted in U.S. dollars. The functional currency of the Company's other foreign subsidiaries is the local currency of the country in which the subsidiary operates. The assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at the rates of exchange at the balance sheet dates. Income and expense accounts are translated at the average exchange rates in effect during the period. Gains and losses resulting from translation adjustments are included as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets, and are included in the condensed consolidated statements of comprehensive income. Foreign exchange transaction gains and losses that are derived from transactions denominated in a currency other than the subsidiary's functional currency are included in the determination of net income. |
Income Taxes | Income Taxes— Deferred income taxes are recorded to reflect the estimated future tax effects of differences between the financial statement and tax basis of assets, liabilities, operating losses, and tax credit carry forwards using the tax rates expected to be in effect when the temporary differences reverse. Valuation allowances, if any, are recorded to reduce deferred tax assets to the amount management considers more likely than not to be realized. Such valuation allowances are recorded for the portion of the deferred tax assets that are not expected to be realized based on the levels of historical taxable income and projections for future taxable income over the periods in which the temporary differences will be deductible. The Company also applies FASB accounting guidance on accounting for uncertainty in income taxes positions. This guidance clarifies the accounting for uncertainty in income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. In this regard we recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. |
Recent Relevant Accounting Pronouncements | Recent Relevant Accounting Pronouncements— The following is a brief discussion of recently released accounting pronouncements that are pertinent to the Company's business: In September 2015 the FASB issued Accounting Standards Update (ASU) No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This pronouncement simplifies the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments eliminate the requirement to retrospectively account for those adjustments. U.S. GAAP currently requires that during the measurement period, the acquirer retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. Those adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The acquirer also must revise comparative information for prior periods presented in financial statements as needed, including revising depreciation, amortization, or other income effects as a result of changes made to provisional amounts. The amendments require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record and disclose, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The only disclosures required at transition should be the nature of and reason for the change in accounting principle. An entity should disclose that information in the first annual period of adoption and in the interim periods within the first annual period if there is a measurement-period adjustment during the first annual period in which the changes are effective. The Company adopted this ASU during the third quarter of 2015 and its adoption did not have a material impact on its financial statements. In November 2014 the FASB issued Accounting Standards Update ("ASU") No. 2014-17 " Business Combinations Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU apply to the separate financial statements of an acquired entity and its subsidiaries that are a business (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. The amendments in this ASU provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. If an acquired entity elects the option to apply pushdown accounting in its separate financial statements, it should disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. The amendments in this ASU were effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. The Company has adopted this ASU and its adoption has not had a material impact on its financial statements. In May 2014 the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customer s" . ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. An entity should apply the amendments in this ASU using one of the following two methods: 1. Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients: • For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period. • For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods. • For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue. 2. Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of: • The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change. • An explanation of the reasons for significant changes. Subsequently in August 2015 the FASB issued ASU No. 2015-14 "Revenue from Contracts with Customers: Deferral of Effective Date ", to defer the effective date of ASU No. 2014-09 for all entities by one year. Accordingly public business entities should apply the guidance of ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that annual reporting period. Although early adoption is allowed, the Company plans to adopt this new accounting standard on its newly revised effective date of January 1, 2018, but it has not presently determined the impact that the adoption of ASU No. 2014-09 will have on its income statement, balance sheet, or statement of cash flows. Furthermore, the Company has not yet determined the method of retrospective adoption it will use as described in first and second paragraphs immediately above. |
Description of Business and S21
Description of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Product/Service Groups | Presented in the table below is the breakout of our revenue streams for each of those product/service groups for the three and nine months ended September 30, 2015 and 2014 . Three Months Ended Nine Months Ended September 30, September 30, (dollar amounts in thousands) 2015 2014 2015 2014 Exchanges $ 46,209 $ 41,757 $ 139,712 $ 125,212 Broker Systems 3,812 4,511 11,067 13,862 Risk Compliance Solutions (“RCS”) 15,754 3,346 41,218 10,423 Carrier Systems 1,038 1,194 3,281 4,191 Totals $ 66,813 $ 50,808 $ 195,278 $ 153,688 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following tables: Fair Values at Reporting Date Using* Descriptions Balance, September 30, 2015 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets Available-for-sale securities: Commercial bank certificates of deposits $ 1,014 $ 1,014 $ — $ — Total assets measured at fair value $ 1,014 $ 1,014 $ — $ — Liabilities Derivatives: Contingent accrued earn-out acquisition consideration (a) $ 8,013 $ — $ — $ 8,013 Total liabilities measured at fair value $ 8,013 $ — $ — $ 8,013 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. * During the three months ended September 30, 2015 there were no transfers between fair value Levels 1, 2 or 3. Fair Values at Reporting Date Using* Descriptions Balance, December 31, 2014 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets Available-for-sale securities: Commercial bank certificates of deposits $ 281 281 $ — $ — Total assets measured at fair value $ 281 $ 281 $ — $ — Liabilities Derivatives: Contingent accrued earn-out acquisition consideration (a) $ 5,367 $ — $ — $ 5,367 Total liabilities measured at fair value $ 5,367 $ — $ — $ 5,367 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. * During the nine months ended September 30, 2015 there were no transfers between fair value Levels 1, 2 or 3. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the nine months ended September 30, 2015 and during the year ended December 31, 2014 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Earn-out Acquisition Consideration Balance, September 30, 2015 Balance, December 31, 2014 (in thousands) Beginning balance $ 5,367 $ 14,420 Total remeasurement adjustments: (Gains) or losses included in earnings ** (1,533 ) (10,237 ) Reductions recorded against goodwill (2,000 ) — Foreign currency translation adjustments *** (47 ) (314 ) Acquisitions and settlements Business acquisitions 6,226 4,312 Settlement payments — (2,814 ) Ending balance $ 8,013 $ 5,367 The amount of total (gains) or losses for the period included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at period-end. $ (1,533 ) $ (8,911 ) ** recorded as an adjustment to reported general and administrative expenses *** recorded as a component of other comprehensive income within stockholders' equity |
Quantitative Information about Level 3 Fair Value Measurements | The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (in thousands) Fair Value at September 30, 2015 Valuation Technique Significant Unobservable Input Contingent acquisition consideration: (Qatarlyst, Vertex, PB Systems, and Via Media acquisitions) $8,013 Discounted cash flow Projected revenue and probability of achievement (in thousands) Fair Value at December 31, 2014 Valuation Technique Significant Unobservable Input Contingent acquisition consideration: (Qatarlyst, HealthCare Magic, Vertex, and i3 acquisitions) $5,367 Discounted cash flow Projected revenue and probability of achievement |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the nine months ended September 30, 2015 and the year ended December 31, 2014 are reflected in the following table. September 30, 2015 December 31, 2014 (In thousands) Beginning Balance $ 402,220 $ 337,068 Additions (net of adjustments) 10,382 68,503 Foreign currency translation adjustments (4,509 ) (3,351 ) Ending Balance $ 408,093 $ 402,220 |
Schedule of Finite-Lived Intangible Assets by Major Class, Estimated Useful Lives | We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows: Category Life (yrs) Customer relationships 7–20 Developed technology 3–12 Trademarks 3–15 Non-compete agreements 5 Database 10 |
Schedule of Intangible Assets, Excluding Goodwill | The carrying value of finite-lived and indefinite-lived intangible assets at September 30, 2015 and December 31, 2014 are as follows: September 30, December 31, (In thousands) Finite-lived intangible assets: Customer relationships $ 70,262 $ 66,783 Developed technology 17,205 15,664 Trademarks 2,739 2,751 Non-compete agreements 743 751 Backlog 140 140 Database 212 212 Total intangibles 91,301 86,301 Accumulated amortization (41,710 ) (36,930 ) Finite-lived intangibles, net $ 49,591 $ 49,371 Indefinite-lived intangibles: Customer/territorial relationships $ 30,887 $ 30,887 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Diluted | A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In thousands, except per share data) Net income for basic and diluted earnings per share $ 20,232 $ 18,015 $ 57,604 $ 47,011 Basic Weighted Average Shares Outstanding 34,304 38,050 35,014 38,264 Dilutive effect of stock options and restricted stock awards 211 203 227 235 Diluted weighted average shares outstanding 34,515 38,253 35,241 38,499 Basic earnings per common share $ 0.59 $ 0.47 $ 1.65 $ 1.23 Diluted earnings per common share $ 0.59 $ 0.47 $ 1.63 $ 1.22 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ending September 30, 2015 Nine Months Ending September 30, 2014 As Reported Pro Forma As Reported Pro Forma As Reported Pro Forma As Reported Pro Forma (unaudited) (unaudited) (unaudited) (unaudited) (In thousands, except per share data) Revenue $ 66,813 $ 66,813 $ 50,808 $ 69,642 $ 195,278 $ 202,031 $ 153,688 $ 209,622 Net Income $ 20,232 $ 20,232 $ 18,015 $ 17,711 $ 57,604 $ 57,834 $ 47,011 $ 47,075 Basic EPS $ 0.59 $ 0.59 $ 0.47 $ 0.47 $ 1.65 $ 1.65 $ 1.23 $ 1.23 Diluted EPS $ 0.59 $ 0.59 $ 0.47 $ 0.46 $ 1.63 $ 1.64 $ 1.22 $ 1.22 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Locations | The following enterprise wide information relates to the Company's geographic locations (all amounts in thousands): As of and for the Nine Months Ended September 30, 2015 United States Canada Latin America Australia Singapore New Zealand India Europe Total External Revenues $ 150,873 $ 3,386 $ 4,399 $ 23,301 $ 3,855 $ 1,662 $ 2,548 $ 5,254 $ 195,278 Long-lived assets $ 374,639 $ 6,899 $ 5,843 $ 465 $ 68,805 $ 204 $ 73,921 $ 24,463 $ 555,239 As of and for the Nine Months Ended September 30, 2014 United States Canada Latin America Australia Singapore New Zealand India Europe Total External Revenues $ 103,225 $ 4,206 $ 4,961 $ 28,247 $ 3,194 $ 2,008 $ 1,112 $ 6,735 $ 153,688 Long-lived assets $ 316,810 $ 8,233 $ 10,391 $ 652 $ 68,113 $ 77 $ 38,625 $ 27,286 $ 470,187 |
Description of Business and S25
Description of Business and Summary of Significant Accounting Policies (Segment Reporting) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)ProductService_Groups | Sep. 30, 2014USD ($) | |
Accounting Policies [Abstract] | ||||
Total revenue, international percentage | 22.70% | 32.80% | ||
Number of product/service groups | ProductService_Groups | 4 | |||
Segment Reporting Information [Line Items] | ||||
Document Period End Date | Sep. 30, 2015 | |||
Operating revenue | $ 66,813 | $ 50,808 | $ 195,278 | $ 153,688 |
Exchanges [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 46,209 | 41,757 | 139,712 | 125,212 |
Broker Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 3,812 | 4,511 | 11,067 | 13,862 |
RCS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 15,754 | 3,346 | 41,218 | 10,423 |
Carrier Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | $ 1,038 | $ 1,194 | $ 3,281 | $ 4,191 |
Description of Business and S26
Description of Business and Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Assets [Abstract] | |||
Total assets measured at fair value | [1] | $ 1,014 | $ 281 |
Liabilities [Abstract] | |||
Total liabilities measured at fair value | [1] | 8,013 | 5,367 |
Fair Value, Inputs, Level 1 [Member] | |||
Assets [Abstract] | |||
Total assets measured at fair value | [1] | 1,014 | 281 |
Fair Value, Inputs, Level 2 [Member] | |||
Liabilities [Abstract] | |||
Total liabilities measured at fair value | [1] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities [Abstract] | |||
Total liabilities measured at fair value | [1] | 8,013 | 5,367 |
Contingent accrued earn-out acquisition consideration [Member] | |||
Liabilities [Abstract] | |||
Derivative liabilities | [1],[2] | 8,013 | 5,367 |
Contingent accrued earn-out acquisition consideration [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Liabilities [Abstract] | |||
Derivative liabilities | [1],[2] | 8,013 | 5,367 |
Certificates of Deposit [Member] | |||
Assets [Abstract] | |||
Available-for-sale securities | [1] | 1,014 | 281 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets [Abstract] | |||
Available-for-sale securities | [1] | $ 1,014 | $ 281 |
[1] | During the six months ended September 30, 2015 and the year ended December 31, 2014 there were no transfers between fair value levels 1, 2, or 3. | ||
[2] | The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. |
Description of Business and S27
Description of Business and Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation: | |||
Beginning balance | $ 5,367,000 | $ 14,420,000 | |
(Gains) or losses included in earnings | [1] | (1,533,000) | (10,237,000) |
Goodwill, Translation and Purchase Accounting Adjustments | [1] | (2,000,000) | |
Foreign currency translation adjustments | [2] | (47,000) | (314,000) |
Business acquisitions | 6,226,000 | 4,312,000 | |
Settlements | 0 | (2,814,000) | |
Ending balance | 8,013,000 | 5,367,000 | |
The amount of total (gains) or losses for the period included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at period-end. | $ (1,533,000) | $ (8,911,000) | |
[1] | Recorded as an adjustment to reported general and administrative expenses | ||
[2] | Recorded as a component of other comprehensive income within stockholders' equity |
Description of Business and S28
Description of Business and Summary of Significant Accounting Policies (Fair Value Textuals) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Fair Value Inputs, Discount Rate | 1.75% | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Liability | $ 8,013 | $ 5,367 | $ 14,420 |
Description of Business and S29
Description of Business and Summary of Significant Accounting Policies (Accounts Receivables and Allowances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Document Period End Date | Sep. 30, 2015 | ||||
Accounts receivable | $ 47,166 | $ 47,166 | $ 41,100 | ||
Allowance for doubtful accounts | 2,406 | 2,406 | $ 1,619 | ||
Deferred revenue included in accounts receivables | 6,300 | 6,300 | |||
Provision for doubtful accounts | 1,649 | $ 336 | 1,950 | $ 1,083 | |
Allowance for Doubtful Accounts Receivable, Write-offs | 1,200 | ||||
Billed Revenues [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | 39,300 | 39,300 | |||
Unbilled Revenues [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 10,300 | $ 10,300 | |||
Maximum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Delivery term for contractual elements of revenue arrangements | 18 months |
Description of Business and S30
Description of Business and Summary of Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Business Combination Segment Allocation [Line Items] | ||
Document Period End Date | Sep. 30, 2015 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 402,220 | $ 337,068 |
Additions, net | 10,382 | 68,503 |
Foreign currency translation adjustments | (4,509) | (3,351) |
Ending Balance | $ 408,093 | $ 402,220 |
Description of Business and S31
Description of Business and Summary of Significant Accounting Policies (Finite-lived Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Document Period End Date | Sep. 30, 2015 | ||||
Finite-lived intangible assets, gross | $ 91,301 | $ 91,301 | $ 86,301 | ||
Finite-lived intangible assets, accumulated amortization | (41,710) | (41,710) | (36,930) | ||
Finite-lived intangible assets, net | 49,591 | 49,591 | 49,371 | ||
Amortization of Acquired Intangible Assets | 1,800 | $ 1,900 | 5,400 | $ 5,600 | |
Customer Relationships [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 70,262 | $ 70,262 | 66,783 | ||
Customer Relationships [Member] | Minimum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 7 years | ||||
Customer Relationships [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 20 years | ||||
Developed technology [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 17,205 | $ 17,205 | 15,664 | ||
Developed technology [Member] | Minimum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 3 years | ||||
Developed technology [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 12 years | ||||
Trademarks [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 2,739 | $ 2,739 | 2,751 | ||
Trademarks [Member] | Minimum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 3 years | ||||
Trademarks [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 15 years | ||||
Non-compete agreements [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 743 | $ 743 | 751 | ||
Non-compete agreements [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 5 years | ||||
Backlog [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 140 | $ 140 | 140 | ||
Database [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 212 | $ 212 | 212 | ||
Database [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 10 years | ||||
Customer Relationships [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Indefinite-lived intangible assets | $ 30,887 | $ 30,887 | $ 30,887 |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Advertising Costs [Abstract] | |||
Advertising Expense | $ 2,100 | $ 695 | |
Capitalized Direct Response Advertising Costs [Line Items] | |||
Capitalized Direct Response Advertising costs (net of amortization) | $ 2,900 | ||
Document Period End Date | Sep. 30, 2015 | ||
Minimum [Member] | |||
Capitalized Direct Response Advertising Costs [Line Items] | |||
Capitalized Direct Response Advertising Costs, Amortization Period | 12 months | ||
Maximum [Member] | |||
Capitalized Direct Response Advertising Costs [Line Items] | |||
Capitalized Direct Response Advertising Costs, Amortization Period | 24 months |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation between Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income for basic and diluted earnings per share | $ 20,232 | $ 18,015 | $ 57,604 | $ 47,011 |
Basic weighted average shares outstanding | 34,304 | 38,050 | 35,014 | 38,264 |
Dilutive effect of stock options and restricted stock awards | 211 | 203 | 227 | 235 |
Diluted weighted average shares outstanding | 34,515 | 38,253 | 35,241 | 38,499 |
Basic earnings per common share | $ 0.59 | $ 0.47 | $ 1.65 | $ 1.23 |
Diluted earnings per common share | $ 0.59 | $ 0.47 | $ 1.63 | $ 1.22 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Thousands | Jun. 02, 2015USD ($) | Mar. 02, 2015Companies | Dec. 02, 2014USD ($) | Nov. 03, 2014USD ($) | May. 21, 2014USD ($) | Jan. 27, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 01, 2015USD ($) | Mar. 01, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 01, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||||||||||||
Document Period End Date | Sep. 30, 2015 | ||||||||||||||
Reduction of acquisition earnout accruals | $ (1,533) | $ (7,533) | $ (1,533) | $ (7,533) | |||||||||||
Derivative Liability | 8,013 | 8,013 | $ 5,367 | $ 14,420 | |||||||||||
Business acquisition, contingent consideration, at fair value, noncurrent | 6,323 | 6,323 | 4,480 | ||||||||||||
Business acquisition, contingent consideration, at fair value, current | 1,690 | 1,690 | 887 | ||||||||||||
Goodwill | 408,093 | 408,093 | 402,220 | $ 337,068 | |||||||||||
Via Media Health and PB Systems [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of businesses acquired | Companies | 2 | ||||||||||||||
Via Media Health [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase Price of Business Acquisition, Cost of Acquired Entity | $ 1,000 | ||||||||||||||
Derivative, Term of Contract | 24 months | ||||||||||||||
PB Systems [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative, Term of Contract | 24 months | ||||||||||||||
Payments to Acquire Businesses, Gross | $ 12,400 | ||||||||||||||
Oakstone [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Payments to Acquire Business, Net | $ 23,720 | ||||||||||||||
Payments to Acquire Businesses, Gross | 31,370 | ||||||||||||||
Net working capital adjustment | 7,650 | ||||||||||||||
Goodwill | 28,769 | ||||||||||||||
Deferred Revenue | 6,500 | ||||||||||||||
Oakstone [Member] | Customer Relationships [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 1,691 | ||||||||||||||
Oakstone [Member] | Developed technology [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 501 | ||||||||||||||
i3 [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Payments to Acquire Businesses, Gross | $ 2,000 | ||||||||||||||
Goodwill | $ 1,600 | ||||||||||||||
i3 [Member] | Customer Relationships [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 310 | ||||||||||||||
i3 [Member] | Developed technology [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 48 | ||||||||||||||
Vertex [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative, Term of Contract | 24 months | ||||||||||||||
Payments to Acquire Businesses, Gross | $ 27,250 | ||||||||||||||
Goodwill | 27,728 | ||||||||||||||
Vertex [Member] | Customer Relationships [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 2,502 | ||||||||||||||
Vertex [Member] | Developed technology [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | $ 235 | ||||||||||||||
Healthcare Magic [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative Liability | 596 | 596 | |||||||||||||
Derivative, Term of Contract | 24 months | ||||||||||||||
Payments to Acquire Businesses, Gross | $ 6,000 | ||||||||||||||
Goodwill | 5,619 | ||||||||||||||
Healthcare Magic [Member] | Customer Relationships [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 452 | ||||||||||||||
Healthcare Magic [Member] | Developed technology [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 100 | ||||||||||||||
Healthcare Magic [Member] | Trademarks and Trade Names [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 59 | ||||||||||||||
Healthcare Magic [Member] | Non-compete agreements [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 226 | ||||||||||||||
Curepet, Inc. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase Price of Business Acquisition, Cost of Acquired Entity | $ 6,350 | ||||||||||||||
Derivative Liability | 5,000 | 0 | 0 | ||||||||||||
Purchase Price of Business acquisition, Non-Cash portion of Acquired Entity | $ 1,350 | ||||||||||||||
Derivative, Term of Contract | 36 months | ||||||||||||||
Contingent Accrued Earn-out Acquisition Consideration [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative Liability | 8,013 | 8,013 | 5,367 | ||||||||||||
Business acquisition, contingent consideration, at fair value, noncurrent | 6,300 | 6,300 | 4,500 | ||||||||||||
Business acquisition, contingent consideration, at fair value, current | $ 1,700 | $ 1,700 | $ 900 | ||||||||||||
Maximum [Member] | Via Media Health [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative Liability | $ 372 | ||||||||||||||
Maximum [Member] | PB Systems [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative Liability | $ 8,000 | ||||||||||||||
Maximum [Member] | i3 [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative Liability | 4,000 | ||||||||||||||
Maximum [Member] | Vertex [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative Liability | $ 2,000 | ||||||||||||||
Maximum [Member] | Healthcare Magic [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative Liability | $ 12,360 | ||||||||||||||
Maximum [Member] | Curepet, Inc. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Derivative Liability | $ 5,000 |
Business Combinations (Pro Form
Business Combinations (Pro Forma) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition, Pro Forma Information | ||||
Revenue | $ 66,813 | $ 50,808 | $ 195,278 | $ 153,688 |
Net income | $ 20,232 | $ 18,015 | $ 57,604 | $ 47,011 |
Basic EPS | $ 0.59 | $ 0.47 | $ 1.65 | $ 1.23 |
Diluted EPS | $ 0.59 | $ 0.47 | $ 1.63 | $ 1.22 |
Revenue, Net, Increase (Decrease) | $ 16,005 | |||
Revenue, Net, Increase (Decrease), Percentage | 31.50% | |||
Curepet, Inc. [Member] | ||||
Business Acquisition, Pro Forma Information | ||||
Revenue | $ 325 | $ 80 | ||
Parent, Curepet , Healthcare Magic, Vertex, Oakstone, and i3 Combined [Member] | ||||
Business Acquisition, Pro Forma Information | ||||
Revenue, pro forma | $ 66,813 | 69,642 | 202,031 | $ 209,622 |
Net income, pro forma | $ 20,232 | $ 17,711 | $ 57,834 | $ 47,075 |
Basic EPS, pro forma | $ 0.59 | $ 0.47 | $ 1.65 | $ 1.23 |
Diluted EPS, pro forma | $ 0.59 | $ 0.46 | $ 1.64 | $ 1.22 |
Business Acquisition, Pro Forma Revenue, Increase (Decrease), Percentage | (4.10%) | |||
Impact of Currency Rates [Member] | ||||
Business Acquisition, Pro Forma Information | ||||
Revenue, Net, Increase (Decrease) | $ (3,400) |
Business Combinations Investmen
Business Combinations Investment (Details) - EbixHealth JV [Member] - USD ($) $ in Millions | Sep. 02, 2015 | Sep. 01, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 40.00% | |
Non-cash Payments To Acquire Interest In Joint Venture | $ 2 |
Debt with Commercial Bank (Narr
Debt with Commercial Bank (Narrative) (Details) - USD ($) $ in Thousands | Aug. 05, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Feb. 03, 2015 | Apr. 26, 2012 |
Line of Credit Facility [Line Items] | |||||
Document Period End Date | Sep. 30, 2015 | ||||
Proceeds from Lines of Credit | $ 66,000 | $ 40,625 | |||
Principal payments of debt obligations | (638) | $ (336) | |||
Secured Syndicated Credit Facility [Member] | Regions Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 150,000 | ||||
Deferred Costs, Credit Card Origination Costs, Amount | 1,400 | ||||
Secured Syndicated Credit Facility [Member] | Citi Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 100,000 | ||||
Secured Syndicated Credit Facility [Member] | Revolving Credit Facility [Member] | Regions Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Term | 5 years | ||||
Credit agreement, maximum borrowing capacity | $ 200,000 | ||||
Line of Credit Facility, Expansion | 50,000 | ||||
Credit agreement, amount outstanding | 186,465 | ||||
Principal payments of debt obligations | $ 0 | ||||
Secured Syndicated Credit Facility [Member] | Revolving Credit Facility [Member] | Citi Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, interest rate at period end | 2.00% | ||||
Credit agreement, average amount outstanding during period | $ 145,100 | ||||
Credit agreement, maximum amount outstanding during period | $ 186,500 | ||||
Secured Syndicated Credit Facility, First Amendment [Member] | Regions Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | 150,000 | $ 190,000 | |||
Line of Credit, Accordion | 50,000 | ||||
Line of Credit Facility, Expansion | 90,000 | ||||
Secured Syndicated Credit Facility, First Amendment [Member] | Revolving Credit Facility [Member] | Regions Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit agreement, maximum borrowing capacity | $ 200,000 | $ 240,000 | |||
Minimum [Member] | Secured Syndicated Credit Facility [Member] | Regions Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 1.50% | ||||
Maximum [Member] | Secured Syndicated Credit Facility [Member] | Regions Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 2.25% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ / Person in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)$ / Person | Sep. 30, 2014USD ($) | |
Commitments and Contingencies [Line Items] | ||
Document Period End Date | Sep. 30, 2015 | |
Rent expense, operating leases | $ 4,900 | $ 4,900 |
Self-insured health insurance, liability | $ 276 | |
Maximum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Self-insured health insurance limit, per person | $ / Person | 120 | |
Self-insured health Insurance, aggregate liability based on participants and claims (percentage) | 125.00% | |
Self-insured health insurance, estimated cumulative liability for annual contract | $ 2,900 | |
Computer Equipment [Member] | Minimum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Capital lease obligation, term | 3 years | |
Computer Equipment [Member] | Maximum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Capital lease obligation, term | 5 years |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense | $ 1,877 | $ 4,010 | $ 5,410 | $ 11,547 | |
Effective income tax rate | 8.49% | 18.21% | 8.59% | 19.72% | |
Unrecognized Tax Benefits | $ 3,128 | $ 3,128 | $ 3,020 | ||
Unrecognized tax benefits, period increase (decrease) | $ 594 | $ 9,337 | |||
Singapore [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Foreign statutory income tax rate | 17.00% | ||||
Foreign effective income tax rate | 10.00% | ||||
United States | |||||
Operating Loss Carryforwards [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Other Income Tax Expense (Benefit), Continuing Operations | $ 230 | $ (2,910) | ||
Document Period End Date | Sep. 30, 2015 | |||
Unrecognized tax benefit netted against a deferred tax asset for a net operating loss carryforward | $ (1,195) | $ (1,195) | $ (1,135) | |
Unrecognized tax benefits, period increase (decrease) | 594 | 9,337 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Beginning Balance | 3,020 | |||
Additions for tax positions related to current year | 0 | 108 | ||
Additions for tax positions of prior years | $ 9,340 | |||
Ending Balance | $ 3,128 | $ 3,128 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits, period increase (decrease) | $ 594 | $ 9,337 | ||
Income tax expense | $ 1,877 | $ 4,010 | $ 5,410 | $ 11,547 |
Document Period End Date | Sep. 30, 2015 |
Geographic Information (Revenue
Geographic Information (Revenue by Geographic Locations) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Reportable_Segments | Sep. 30, 2014USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | Reportable_Segments | 1 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Document Period End Date | Sep. 30, 2015 | |||
Revenue, Net, Increase (Decrease) | $ 16,005 | |||
External Revenues | 66,813 | $ 50,808 | $ 195,278 | $ 153,688 |
Long-lived assets | 555,239 | 470,187 | 555,239 | 470,187 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
External Revenues | 150,873 | 103,225 | ||
Long-lived assets | 374,639 | 316,810 | 374,639 | 316,810 |
Canada | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
External Revenues | 3,386 | 4,206 | ||
Long-lived assets | 6,899 | 8,233 | 6,899 | 8,233 |
Latin America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
External Revenues | 4,399 | 4,961 | ||
Long-lived assets | 5,843 | 10,391 | 5,843 | 10,391 |
Australia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
External Revenues | 23,301 | 28,247 | ||
Long-lived assets | 465 | 652 | 465 | 652 |
Singapore | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
External Revenues | 3,855 | 3,194 | ||
Long-lived assets | 68,805 | 68,113 | 68,805 | 68,113 |
New Zealand | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
External Revenues | 1,662 | 2,008 | ||
Long-lived assets | 204 | 77 | 204 | 77 |
India | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
External Revenues | 2,548 | 1,112 | ||
Long-lived assets | 73,921 | 38,625 | 73,921 | 38,625 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
External Revenues | 5,254 | 6,735 | ||
Long-lived assets | 24,463 | $ 27,286 | $ 24,463 | $ 27,286 |
Impact of Currency Rates [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, Net, Increase (Decrease) | $ (3,400) |
Minority Business Investment (N
Minority Business Investment (Narrative) (Details) - USD ($) $ in Thousands | Sep. 02, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 01, 2015 | Dec. 31, 2014 | Jan. 27, 2014 | Dec. 31, 2013 |
Schedule of Cost-method Investments [Line Items] | |||||||||
Document Period End Date | Sep. 30, 2015 | ||||||||
Revenue | $ 66,813 | $ 50,808 | $ 195,278 | $ 153,688 | |||||
Derivative Liability | 8,013 | 8,013 | $ 5,367 | $ 14,420 | |||||
Curepet, Inc. [Member] | |||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||
Revenue | $ 325 | 80 | |||||||
Purchase Price of Business Acquisition, Cost of Acquired Entity | $ 6,350 | ||||||||
Derivative Liability | $ 0 | $ 0 | $ 5,000 | ||||||
EbixHealth JV [Member] | |||||||||
Schedule of Cost-method Investments [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 40.00% | ||||||||
Non-cash Payments To Acquire Interest In Joint Venture | $ 2,000 |
Investment in Joint Venture (De
Investment in Joint Venture (Details) - USD ($) $ in Thousands | Sep. 02, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 01, 2015 |
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Acquire Interest in Joint Venture | $ (6,000) | $ 0 | ||
Document Period End Date | Sep. 30, 2015 | |||
EbixHealth JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Acquire Interest in Joint Venture | $ 6,000 | |||
Equity Method Investment, Ownership Percentage | 40.00% | |||
Contribution to Joint Venture by Other Party, Value | $ 18,000 | |||
Percentage of Membership Interest in Joint Venture by Other Party | 60.00% | |||
Additional Equity Investment Arrangement | 10.00% | |||
Non-cash Payments To Acquire Interest In Joint Venture | $ 2,000 | |||
IHC [Member] | EbixHealth JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from Related Parties | $ 445 | |||
Accounts Receivable, Related Parties | $ 318 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $ 3,128 | $ 3,020 |
Off-market Lease, Unfavorable | 224 | 294 |
Unrecognized tax benefit netted against a deferred tax asset for a net operating loss carryforward | (1,195) | (1,135) |
Other liabilities | $ 2,157 | $ 2,179 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 07, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Oct. 14, 2015 | Feb. 03, 2015 | Aug. 05, 2014 | |
Subsequent Event [Line Items] | ||||||
Stock Repurchased During Period, Shares | 1,169,458 | |||||
Repurchase and retirement of common stock, Value | $ (34,311) | $ (68,793) | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 29.34 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock Repurchased During Period, Shares | 20,000 | |||||
Repurchase and retirement of common stock, Value | $ (500) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 24.98 | |||||
Secured Syndicated Credit Facility, First Amendment [Member] | Regions Bank [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Expansion | $ 90,000 | |||||
Revolving Credit Facility [Member] | Secured Syndicated Credit Facility, First Amendment [Member] | TD Bank [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Credit agreement, maximum borrowing capacity | $ 25,000 | |||||
Revolving Credit Facility [Member] | Secured Syndicated Credit Facility, First Amendment [Member] | Regions Bank [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Credit agreement, maximum borrowing capacity | $ 240,000 | $ 200,000 | ||||
Revolving Credit Facility [Member] | Secured Syndicated Credit Facility, First Amendment [Member] | Regions Bank [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Credit agreement, maximum borrowing capacity | 240,000 | |||||
Revolving Credit Facility [Member] | Secured Syndicated Credit Facility [Member] | Regions Bank [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Expansion | 50,000 | |||||
Credit agreement, maximum borrowing capacity | $ 200,000 | |||||
Credit agreement, amount outstanding | $ 186,465 | 186,465 | ||||
Revolving Credit Facility [Member] | Secured Syndicated Credit Facility [Member] | Regions Bank [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Expansion | $ 50,000 | |||||
Credit agreement, amount outstanding | $ 186,500 | $ 186,500 |