Ebix Inc (NASDAQ:EBIX) Q2 2020 Earnings Conference Call - Final Transcript

Aug 07, 2020 • 11:00 am ET

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Ebix Inc (NASDAQ:EBIX) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Robin Raina

presently looking at reducing our physical office expense by employing just-in-time technology and allowing a decent part of our employee base to work from home. This can save a substantial cost and improve productivity.

With respect to working from home, we are presently doing a worldwide review to see whether by the end of 2021, we can have at least 40% of our employees functioning for home. In spite of COVID, we just became Ria's largest partner in India in the field of remittance. We are already exclusive for MoneyGram in India, and we already own a dominant share of Western Union's business in the remittance business in India. We are working on rolling over MoneyGram existing distributors under our network at present. As that work is fully carried out, we should see substantial improvement in revenues from MoneyGram. Our biggest competitor in ForEx outside India, Travelex, went into bankruptcy. That potentially could be a big opportunity for us in many countries. More on that in coming quarters. We, at present, are in the midst of many large bus exchange deals that can be substantial and have great margins. We are hoping to close at least one of them, if not more, in the third quarter of 2020.

In terms of acquisitions, past or present, our priorities are absolutely clear. We have three key financial goals: minimize one, minimize any risk for Ebix in terms of any additional debt overhang; two, make an acquisition that can be nicely accretive in the short term for our shareholders, even if we are using stock as an instrument of purchase, still try to construct terms that delay dilution ideally for many years; three, target companies that get us near the 30% or higher EBITDA number. The acquisition of Trimax fitted all these three criteria extremely well, with the acquisition being made in cash, with no stock being issued and no additional debt being taken.

Also, it fitted our 30% operating margin profile requirement perfectly. With regards to our IPO plan for EbixCash, we think that it is prudent to let the COVID-19 crisis blow over and let the markets normalize before we launch our IPO. Accordingly, we intend to work closely with all our investment bankers through this period and keep ourselves in a ready mode for the IPO. While we wait for this pandemic to pass, we are keeping a close watch on financial markets in India. There are a number of big IPOs planned next year, and we hope that we'll be one of them. That brings me to the end of my talk.

I will now hand it over back to the operator to open it up for questions. Thank you.