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0000814549 ebix:IHCMember 2018-01-01 2018-06-30 0000814549 ebix:EbixHealthJVMember ebix:IHCMember 2019-04-01 2019-06-30 0000814549 ebix:ItzCashMember 2017-04-01 2017-04-01 0000814549 ebix:EbixHealthJVMember 2016-07-01 0000814549 ebix:EbixHealthJVMember 2015-09-01 0000814549 2017-04-01 2017-04-01 0000814549 srt:MaximumMember ebix:ItzCashMember 2017-04-01 0000814549 ebix:IHCMember 2019-04-01 2019-06-30 0000814549 ebix:EbixHealthJVMember ebix:IHCMember 2019-01-01 2019-06-30 0000814549 ebix:PropertyandCasualtyExchangeMember 2019-01-01 2019-06-30 0000814549 srt:MaximumMember us-gaap:ComputerEquipmentMember 2019-01-01 2019-06-30 0000814549 srt:MinimumMember us-gaap:ComputerEquipmentMember 2019-01-01 2019-06-30 0000814549 ebix:EbixVayamJVMember ebix:VayamMember 2018-01-01 2018-06-30 0000814549 us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0000814549 ebix:EbixVayamJVMember ebix:VayamMember 2018-04-01 2018-06-30 0000814549 ebix:EbixVayamJVMember ebix:VayamMember 2019-01-01 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Table of Contents

 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019

OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-15946
Ebix, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
 
Delaware
 
77-0021975
(State or other jurisdiction of incorporation or
 
(I.R.S. Employer Identification No.)
organization)
 
 
 
 
 
1 Ebix Way
 
 
Johns Creek
Georgia
 
30097
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: 678-281-2020
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading symbols
Name of each exchange on which registered
Common stock, $0.10 par value per share
EBIX
Nasdaq Stock Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Table of Contents

Large accelerated filer
 
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of August 8, 2019 the number of shares of common stock outstanding was 30,489,019.
 
 
 
 
 



FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2019
INDEX
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Exhibit 101
 


Table of Contents

PART I — FINANCIAL INFORMATION

Item 1: CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Operating revenue
$
144,275

 
$
124,626

 
$
287,199

 
$
232,856

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Cost of services provided
50,954

 
43,559

 
96,883

 
83,150

Product development
11,397

 
8,671

 
22,639

 
17,105

Sales and marketing
4,493

 
4,823

 
10,614

 
8,821

General and administrative, net (see Note 1)
32,866

 
26,724

 
54,310

 
46,228

Amortization and depreciation
3,283

 
2,534

 
7,340

 
5,341

Total operating expenses
102,993

 
86,311

 
191,786

 
160,645

 
 
 
 
 
 
 
 
Operating income
41,282

 
38,315

 
95,413

 
72,211

Interest income
129

 
85

 
479

 
206

Interest expense
(11,763
)
 
(5,750
)
 
(21,581
)
 
(10,597
)
Non-operating income (loss)
(11
)
 

 
(8
)
 
53

Non-operating expense - litigation settlement
(688
)
 

 
(21,140
)
 

Foreign currency exchange gain (loss)
401

 
(1,357
)
 
146

 
(1,998
)
Income before income taxes
29,350

 
31,293

 
53,309

 
59,875

Income tax benefit (expense)
(1,004
)
 
(2,222
)
 
80

 
(4,348
)
Net income including noncontrolling interest
28,346

 
29,071

 
53,389

 
55,527

Net income (loss) attributable to noncontrolling interest
(505
)
 
(109
)
 
(1,172
)
 
139

Net income attributable to Ebix, Inc.
$
28,851

 
$
29,180

 
$
54,561

 
$
55,388

 
 
 
 
 
 
 
 
Basic earnings per common share attributable to Ebix, Inc.
$
0.95

 
$
0.93

 
$
1.79

 
$
1.76

 
 
 
 
 
 
 
 
Diluted earnings per common share attributable to Ebix, Inc.
$
0.94

 
$
0.92

 
$
1.78

 
$
1.75

 
 
 
 
 
 
 
 
Basic weighted average shares outstanding
30,528

 
31,465

 
30,526

 
31,474

 
 
 
 
 
 
 
 
Diluted weighted average shares outstanding
30,668

 
31,626

 
30,636

 
31,643


See accompanying notes to the condensed consolidated financial statements.


2

Table of Contents


Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(In thousands)
(Unaudited)


 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Net income including noncontrolling interest
$
28,346

 
$
29,071

 
$
53,389

 
$
55,527

Other comprehensive income (loss):
 
 
 
 
 
 
 
                Foreign currency translation adjustments
4,411

 
(26,178
)
 
7,893

 
(30,937
)
                                Total other comprehensive (loss) income
4,411

 
(26,178
)
 
7,893

 
(30,937
)
Comprehensive income
32,757

 
2,893

 
61,282

 
24,590

Comprehensive income (loss) attributable to noncontrolling interest
(505
)
 
(109
)
 
(1,172
)
 
139

Comprehensive income attributable to Ebix, Inc.
$
33,262

 
$
3,002

 
$
62,454

 
$
24,451




See accompanying notes to the condensed consolidated financial statements.


3

Table of Contents

Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
 
June 30,
2019
 
December 31,
2018
ASSETS
(Unaudited)
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
102,210

 
$
147,766

Short-term investments
4,860

 
31,192

Restricted cash
22,641

 
8,317

Fiduciary funds- restricted
4,393

 
6,491

Trade accounts receivable, less allowances of $9,985 and $6,969, respectively
175,323

 
174,340

Other current assets
60,747

 
59,274

Total current assets
370,174

 
427,380

 
 
 
 
Property and equipment, net
52,203

 
50,294

Right-of-use assets
18,066

 

Goodwill
971,929

 
946,685

Intangibles, net
46,456

 
51,448

Indefinite-lived intangibles
42,055

 
42,055

Capitalized software development costs, net
13,141

 
11,742

Deferred tax asset, net
60,135

 
54,629

Other assets
48,344

 
26,714

Total assets
$
1,622,503

 
$
1,610,947

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued liabilities
$
127,202

 
$
130,221

Accrued payroll and related benefits
7,769

 
9,227

Working capital facility
59,902

 
17,841

Fiduciary funds- restricted
4,393

 
6,491

Short-term debt
1,369

 
3,990

Current portion of long term debt and financing lease obligation, net of deferred financing
costs of $575
18,258

 
14,603

Lease liability
6,035

 

Contingent liability for accrued earn-out acquisition consideration
1,315

 
13,767

Contract liabilities
30,369

 
35,609

Other current liabilities
15,820

 
85,679

Total current liabilities
272,432

 
317,428

 
 
 
 
Revolving line of credit
438,037

 
424,537

Long term debt and financing lease obligations, less current portion, net of deferred financing costs of $1,523 and $1,811, respectively
265,543

 
274,716

Other liabilities
28,123

 
28,287

Contingent liability for accrued earn-out acquisition consideration
9,504

 
11,209

Contract liabilities
8,161

 
9,051

Deferred tax liability, net
1,282

 
1,282

Lease liability
11,868

 

Total liabilities
1,034,950

 
1,066,510

 
 
 
 
Commitments and Contingencies (see Note 5)

 

 
 
 
 

4

Table of Contents

Stockholders’ equity:
 
 
 
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at June 30, 2019 and December 31, 2018

 

Common stock, $0.10 par value, 220,000,000 shares authorized, 30,529,840 issued and outstanding, at June 30, 2019, and 30,567,725 issued and outstanding at December 31, 2018
3,053

 
3,057

Additional paid-in capital
5,189

 
3,397

Retained earnings
582,913

 
535,118

Accumulated other comprehensive loss
(55,484
)
 
(63,377
)
Total Ebix, Inc. stockholders’ equity
535,671

 
478,195

Noncontrolling interest (see Note 8)
51,882

 
66,242

Total stockholders’ equity
587,553

 
544,437

Total liabilities and stockholders’ equity
$
1,622,503

 
$
1,610,947

See accompanying notes to the condensed consolidated financial statements.

5

Table of Contents

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
(unaudited)
(In thousands except for share figures)


 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
Issued
Shares
 
Amount
 
Additional Paid-in
Capital
 
Retained
Earnings
 
Accumulated Other Comprehensive
Loss
 
Noncontrolling interest
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, April 1, 2019
30,523,756

 
$
3,052

 
$
4,350

 
$
556,364

 
$
(59,895
)
 
$
65,177

 
$
569,048

 
 Net income attributable to Ebix, Inc.

 

 

 
28,851

 

 

 
28,851

 
 Net income (loss) attributable to noncontrolling interest

 

 

 

 

 
(505
)
 
(505
)
 
Cumulative translation adjustment

 

 

 

 
4,411

 

 
4,411

 
Vesting of restricted stock
6,204

 
1

 
(1
)
 

 

 

 

 
Share based compensation

 

 
846

 

 

 

 
846

 
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested
(120
)
 

 
(6
)
 

 

 

 
(6
)
 
Recognized noncontrolling ownership of joint venture

 

 

 

 

 
(12,790
)
 
(12,790
)
 
Common stock dividends paid, $0.075 per share

 

 

 
(2,302
)
 

 

 
(2,302
)
 
Balance, June 30, 2019
30,529,840

 
$
3,053

 
$
5,189

 
$
582,913

 
$
(55,484
)
 
$
51,882

 
$
587,553

 



6

Table of Contents

 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
Issued
Shares
 
Amount
 
Additional Paid-in
Capital
 
Retained
Earnings
 
Accumulated Other Comprehensive
Loss
 
Noncontrolling interest
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2019
30,567,725

 
$
3,057

 
$
3,397

 
$
535,118

 
$
(63,377
)
 
$
66,242

 
$
544,437

 
 Net income attributable to Ebix, Inc.

 

 

 
54,561

 

 

 
54,561

 
 Net loss attributable to noncontrolling interest

 

 

 

 

 
(1,172
)
 
(1,172
)
 
Cumulative translation adjustment

 

 

 

 
7,893

 

 
7,893

 
Repurchase and retirement of common stock
(50,000
)
 
(5
)
 

 
(2,167
)
 

 

 
(2,172
)
 
Vesting of restricted stock
12,586

 
1

 
(1
)
 

 

 

 

 
Share based compensation

 

 
1,422

 

 

 

 
1,422

 
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested
(471
)
 

 
(27
)
 

 

 

 
(27
)
 
Recognized noncontrolling ownership of joint venture

 

 
398

 

 

 
(13,188
)
 
(12,790
)
 
Common stock dividends paid, $0.15 per share

 

 

 
(4,599
)
 

 

 
(4,599
)
 
Balance, June 30, 2019
30,529,840

 
$
3,053

 
$
5,189

 
$
582,913

 
$
(55,484
)
 
$
51,882

 
$
587,553

 





7

Table of Contents

 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
Issued
Shares
 
Amount
 
Additional Paid-in
Capital
 
Retained
Earnings
 
Accumulated Other Comprehensive
Loss
 
Noncontrolling interest
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, April 1, 2018
31,458,976

 
$
3,146

 
$

 
$
523,668

 
$
(28,782
)
 
$
42,895

 
$
540,927

 
 Net income attributable to Ebix, Inc.

 

 

 
29,180

 

 

 
29,180

 
 Net loss attributable to noncontrolling interest

 

 

 

 

 
(109
)
 
(109
)
 
Cumulative translation adjustment

 

 

 

 
(26,178
)
 

 
(26,178
)
 
Vesting of restricted stock
12,683

 

 

 

 

 

 

 
Exercise of stock options
2,283

 

 
42

 

 

 

 
42

 
Share based compensation

 

 
756

 

 

 

 
756

 
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested
(288
)
 

 
(64
)
 

 

 

 
(64
)
 
Recognized noncontrolling ownership of joint venture

 

 

 

 

 
5,716

 
5,716

 
Common stock dividends paid, $0.075 per share

 

 

 
(2,368
)
 

 

 
(2,368
)
 
Balance, June 30, 2018
31,473,654

 
$
3,146

 
$
734

 
$
550,480

 
$
(54,960
)
 
$
48,502

 
$
547,902

 


8

Table of Contents

 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
Issued
Shares
 
Amount
 
Additional Paid-in
Capital
 
Retained
Earnings
 
Accumulated Other Comprehensive
Loss
 
Noncontrolling interest
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2018
31,476,428

 
$
3,148

 
$
1,410

 
$
510,975

 
$
(24,023
)
 
$
42,249

 
$
533,759

 
 Cumulative effect of accounting change (adoption of Topic 606), net of tax effect

 

 

 
(8,802
)
 

 

 
$
(8,802
)
 
 Cumulative effect of accounting change (adoption of ASC 340-40), net of tax effect

 

 

 
(1,460
)
 

 

 
(1,460
)
 
 Net income attributable to Ebix, Inc.

 

 

 
55,388

 

 

 
55,388

 
 Net income attributable to noncontrolling interest

 

 

 

 

 
139

 
139

 
Cumulative translation adjustment

 

 

 

 
(30,937
)
 

 
(30,937
)
 
Repurchase and retirement of common stock
(30,000
)
 
(3
)
 
(1,339
)
 
(884
)
 

 

 
(2,226
)
 
Vesting of restricted stock
25,957

 
1

 
(1
)
 

 

 

 

 
Exercise of stock options
2,283

 

 
42

 

 

 

 
42

 
Share based compensation

 

 
1,509

 

 

 

 
1,509

 
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested
(1,014
)
 

 
(100
)
 

 

 

 
(100
)
 
Recognized noncontrolling ownership of joint venture

 

 
(787
)
 

 

 
6,114

 
5,327

 
Common stock dividends paid, $0.15 per share

 

 

 
(4,737
)
 

 

 
(4,737
)
 
Balance, June 30, 2018
31,473,654

 
$
3,146

 
$
734

 
$
550,480

 
$
(54,960
)
 
$
48,502

 
$
547,902

 

See accompanying notes to the condensed consolidated financial statements.


9

Table of Contents

Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Six Months Ended
 
June 30,
 
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income attributable to Ebix, Inc.
$
54,561

 
$
55,388

Net income (loss) attributable to noncontrolling interest
(1,172
)
 
139

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Amortization and depreciation
7,340

 
5,341

Benefit for deferred taxes
(5,374
)
 
(1,321
)
Share based compensation
1,422

 
1,509

Provision for doubtful accounts
(1,310
)
 
2,098

Amortization of right-of-use assets
3,517

 

Unrealized foreign exchange loss
81

 
1,262

Amortization of capitalized software development costs
1,243

 
1,080

Reduction of acquisition accruals
(17,124
)
 

Changes in assets and liabilities, net of effects from acquisitions:
 
 
 
Accounts receivable
(2,166
)
 
(22,907
)
Other assets
(758
)
 
(40
)
Accounts payable and accrued expenses
2,824

 
4,891

Accrued payroll and related benefits
(1,808
)
 
(327
)
Contract liabilities
(6,192
)
 
(5,544
)
Lease liabilities
(3,460
)
 
(382
)
Reserve for potential uncertain income tax return positions

 
59

Other liabilities
6,618

 
(1,353
)
Net cash provided by operating activities
38,242

 
39,893

 
 
 
 
Cash flows from investing activities:
 
 
 
Acquisition of Transcorp

 
(6,554
)
Cash (paid to) received from Paul Merchants for 10% stake in MTSS combined business
(4,925
)
 
4,996

Acquisition of Weizmann, net of $11.3 million cash acquired
(77,350
)
 

Acquisition of Pearl
(3,372
)
 

Acquisition of Lawson
(2,726
)
 

Acquisition of Miles
(982
)
 

Acquisition of Business Travels
(689
)
 

Cash paid for acquisition of AHA taxis, net of $25 thousand cash acquired
(214
)
 

Cash paid for acquisition of Zillious, net of $279 thousand cash acquired
(9,816
)
 

Cash paid for acquisition of Essel Forex
(7,935
)
 

Cash paid for acquisition of Centrum, net of $13.4 million cash acquired

 
(166,017
)
Cash paid for acquisition of Smartclass, net of $982 thousand cash acquired

 
(7,593
)
Capitalized software development costs paid
(2,588
)
 
(2,016
)
Maturities of marketable securities
14,488

 
725

Capital expenditures
(4,721
)
 
(1,472
)
Net cash used in investing activities
(100,830
)
 
(177,931
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from revolving line of credit, net
13,500

 
84,165

Proceeds from term loan

 
124,250

Principal payments of term loan obligation
(7,532
)
 
(3,125
)
Repurchases of common stock
(10,972
)
 
(2,226
)
Proceeds from the exercise of stock options

 
42

Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested
(27
)
 
(100
)
Dividend payments
(4,599
)
 
(4,737
)
Other
5,081

 

Principal payments of debt obligations
(846
)
 

Working capital facility
41,588

 
(4,554
)
Payments of financing lease obligations
(129
)
 
(6
)
Net cash provided by financing activities
36,064

 
193,709

Effect of foreign exchange rates on cash
521

 
(6,545
)
Net change in cash and cash equivalents, and restricted cash
(26,003
)
 
49,126

Cash and cash equivalents, and restricted cash at the beginning of the period
159,589

 
70,867

Cash and cash equivalents, and restricted cash at the end of the period
$
133,586

 
$
119,993

Supplemental disclosures of cash flow information:
 
 
 
Interest paid
$
20,984

 
$
9,714

Income taxes paid
$
6,528

 
$
8,357

See accompanying notes to the condensed consolidated financial statements.

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Supplemental schedule of noncash financing activities:
As of December 31, 2018 there were 200,000 shares totaling $8.8 million of share repurchases that were not settled until January 2019.

During the six months ended June 30, 2019 there were 471 shares, totaling $27 thousand, used to satisfy exercise costs and the recipients' income tax obligations related to stock options exercised and restricted stock vesting.


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Ebix, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements


Note 1: Description of Business and Summary of Significant Accounting Policies
Description of Business— Ebix, Inc., and its subsidiaries, (“Ebix” or the “Company”) is a leading international supplier of on-demand infrastructure Exchanges to the insurance, financial, and healthcare industries. In the Insurance sector, the Company’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also providing software as a service ("SaaS") enterprise solutions in the area of customer relationship management ("CRM"), front-end and back-end systems, outsourced administrative and risk compliance. The Company's products feature fully customizable and scalable on-demand software designed to streamline the way insurance professionals manage distribution, marketing, sales, customer service, and accounting activities. With a "Phygital” strategy that combines physical distribution outlets in many Association of Southwest Asian Nations ("ASEAN") countries to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange ("Forex"), travel, pre-paid and gift cards, utility payments, lending, and wealth management in India and other markets. The Company has its headquarters in Johns Creek, Georgia and also conducts operating activities in Australia, Canada, India, New Zealand, Singapore, United Kingdom, Brazil, Philippines, Indonesia, Thailand and United Arab Emirates. International revenue accounted for 68.3% and 57.8% of the Company’s total revenue for the six months ended June 30, 2019 and 2018, respectively.
The Company’s revenues are derived from three product/service channels. The Company has determined that the Exchange channel should be split into its Insurance and EbixCash components, due primarily to the significant growth in EbixCash over the past year. The company has also determined that the RCS, Broker, and Carrier channels have become individually immaterial and has chosen to group those together under just RCS.  The revenues for the three and six months ended June 30, 2018 shown below have been adjusted to reflect this change.
Presented in the table below is the breakout of our revenue streams for each of those product/service channels for the three and six months ended June 30, 2019 and 2018.

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2019
 
2018
 
2019
 
2018
EbixCash Exchanges
 
$
78,948

 
$
55,257

 
$
156,685

 
$
91,265

Insurance Exchanges
 
46,593

 
47,155

 
94,608

 
96,318

Risk Compliance Solutions (“RCS”)
 
18,734

 
22,214

 
35,906

 
45,273

Totals
 
$
144,275

 
$
124,626

 
$
287,199

 
$
232,856




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 three and six months ended June 30, 2019 and 2018 are not necessarily indicative of the results that may be expected for future quarters or the full year of 2019. The condensed consolidated December 31, 2018 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, 2018.


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Reclassification— Certain prior year amounts have been reclassified to be consistent with current year presentation within our financial statements.

Restricted Cash- The carrying value of our restricted cash was $22.6 million and $4.0 million at June 30, 2019 and 2018, respectively. The June 30, 2019 balance primarily consists of $8.6 million funds in an escrow account to acquire the remaining 10.06% publicly-held Weizmann Forex shares pending the lapse of a time bound public offer. Additionally in connection with a 2016 acquisition, there is upfront cash consideration and possible future contingent earn-out payments held in an escrow account contingent upon the acquired business achieving the minimum specified annual net revenue thresholds, which if not achieved would result in said funds being returned to Ebix. The Company also holds fixed deposits pledged with banks for issuance of bank guarantees and letters of credit related to India operations.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows:

 
Six Months Ended
 
June 30,
(In thousands)
2019
 
2018
Cash and cash equivalents
$
102,210

 
$
113,410

Restricted cash
22,641

 
3,992

Restricted cash included in other long-term assets
8,735

 
2,591

Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows
$
133,586

 
$
119,993



Advertising—Advertising costs amounted to