Q2 2021 Ebix Inc Earnings Call
<unk>, the Ebix incorporated first quarter financial results and Investor.
Conference call at this time, all participants are in listen only mode.
There will be a question and answer session. During later on.
So to ask a question. During this time you will need to press star 1 on your telephone keypad.
Also if you require any further assistance please press star zero.
I would now like to hand, the conference over to your Speaker today, Mr. Darren Joseph Corporate Vice President of Ebix. Thank you. Please go ahead.
Thank you.
Welcome everyone to Ebix Incorporated's 2021 first quarter earnings conference call.
Joining me to discuss the quarter is Ebix, chairman, President and CEO Robin Raina, President Insurance services, North America, Ash, Sawhney, and Ebix EVP and CFO, Steve Hamil. Following our remarks, we will open up the call to your questions.
Let me quickly cover the safe Harbor some of the statements that we make today are forward looking including among others statements regarding ebix as future investments our long term growth on innovation the expected performance of our businesses and our use of cash.
These statements involve a number of risks and uncertainties that might cause actual results to differ materially from those projected in the forward looking statements.
Please note that these forward looking statements reflect our opinions only as of the date of this presentation and we undertake no obligation to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events.
Additional information concerning factors that could cause actual results to materially differ from those in the forward looking statements made today is contained in our SEC filings, which list a more detailed description of the risk factors that may affect our results.
Our press release announcing the Q1.2021 results was issued this morning. The audio of this investor call is also being webcast live on the web at Www Dot Ebix Dot com forward spots webcast you can look at Ebix <unk> financials beyond what has been provided on their release on our website www Dot EBIT dot com.
The audio and the text transcript of this call will be available on the investor homepage of the Ebix website. After 4 P M eastern time today.
Let me now discuss the key metrics in our Q1.2020 results released earlier today.
Q1 diluted EPS was <unk> 70.
And non-GAAP diluted EPS was <unk> 84.
Q1 revenues were at a record $290 million in constant currency revenues at $297 million Q.
Q1, GAAP operating income was $31.2 million and non-GAAP operating income was $35.6 million.
Revenue in Q1, 2021 increased to 110% to $290 million from $137.9 million in Q1.2020 on a constant currency basis, Q1, 2021 revenues increased 111% year over year and would have been 600000 more than reported revenues due to the <unk>.
<unk> Indian rupee, and Brazilian rial offset by strengthening.
Aussie dollar.
Sequentially Q1, 2021 revenues increased 31% over Q4, 2020 revenue $222.1 million <unk>.
Excluding revenues from foreign exchange travel E learning and remittance businesses that were impacted the most by COVID-19, Q1, 2021 revenues grew 187% as compared to Q1.2020.
Exchanges, including the EBIT cash and our worldwide insurance exchanges continues to be EPS, because largest channel accounting for 90%, 95% of Q1.2021 revenues.
The EBIT cash financial exchange reported revenue of $232.6 million in Q1, 2021, an increase of 198% as compared to $77.8 million in Q1.2020 sequentially Ebix cash Q1, 2021 revenues increased by 45% as <unk>.
<unk> to $164 million in Q4.2020.
Beginning in the last few weeks of March 2020, our businesses in the area of onsite consulting travel foreign exchange remittance and education were hit severely.
Because of COVID-19, once the pandemic led to a global shutdown on the virtual humour on Carefusion was imposed in countries like India. The effects of these business lines was natural considering that we feel good about Q1.2021 results and the resilience shown by our employees across the world to keep supporting our clients.
COVID-19 had a downward impact on many of our insurance exchange businesses in Q1, 2021 with reduced availability of India based development staff for billable work already awarded to US We had the order base for example, in our life underwriting business, but not enough available resources, the bill out to carry out implementation.
Work.
To add to it on site client work related to product implementation came down to almost nothing because of COVID-19.
Also most new deal decisions were delayed due to COVID-19, we.
We have now made arrangements to increase staffing levels to have overlapping staff for the reduced availability of resources in certain geographies. These are extraordinary times and we are trying to make adjustments accordingly.
Our first quarter revenues and operating income.
Always traditionally lower than the fourth quarter of the preceding year, primarily because of our continuing medical education business, having a seasonal increase in the fourth quarter.
Q1, 'twenty, 1 was no different with CMA revenues decreasing by approximately $4 million as compared to Q4.2020.
In spite of that headwind and the increased offset effect of COVID-19 in Q1.2021 on many of our businesses. We still managed to grow our overall revenue is 31% sequentially on 110% year over year in Q1 of 2021, I will now turn the call over to Steve.
Thanks Darren.
We have and continue to operate in unprecedented times. The COVID-19, global pandemic continues to stifle economic activity impact our businesses across the globe.
India has been hit by the second wave of the virus in Q1, 2021 with devastating consequences and impact on the population, while Brazil is getting hit at present by the third wave of virus infections.
<unk> 3 countries that today are impacted the most by COVID-19 in terms of deaths.
The us India and Brazil are 3 of our most important markets.
At Ebix, we have had to deal with our share of pain as well.
But the results that we have produced in the first quarter provide positive evidence that ebix is prepared to survive. This global economic seizure and thrive once our world returns to normal economic rhythms are.
Our top line performance in Q1 with year over year on sequential revenue growth of 110% and 31% respectively as encouraging.
Our company's diversity of revenues, both by geography, and solutions and services, our customer stickiness and the recurring and repeating nature of a large percentage of our revenue base is the foundation that will allow ebix to endure this crisis and thrive on the other side of COVID-19.
With that I'll turn to some operating results.
Our gross margin in Q1, 2021 was 24% down sequentially from 32% in the fourth quarter of 2020.
And down year over year from 58, 3% in Q1.2020.
Our gross margins continued to be diluted by the robust demand. We continue to see in our low margin payment solutions business in India, which had another record quarter of sales increasing 55% sequentially from a record Q4.2020.
Sales base.
GAAP operating income for Q1, 2021 of $31.2 million increased 12% sequentially, while declining 9% year over year from $34.3 million in Q1, 2020, primarily due to the impact of COVID-19.
Non-GAAP operating income for Q1, 2021 was $35.6 million.
Our operating margin for the company was 10, 8% in Q1, 'twenty, 1, but excluding the payment solutions business in India. We maintained historically solid operating margins of 35% in the first quarter of 2021.
During Q1.2021, we had a major cash uses of approximately $32 million, including $9.7 million used to pay global taxes.
$7.5 million for cash interest related to our corporate credit facility.
$5.6 million used to pay amortization of principal on our corporate term loan.
$4.6 million to reduce our working capital facilities in India, $2.3 million for dividend payments on a combined $2 million expended on Capex and software development costs.
We funded these initiatives from existing cash plus operating cash flows generated during the quarter.
In spite of these uses of cash Ebix ended the quarter with a strong liquidity position with cash cash equivalents short term investments and restricted cash of a $131 million versus $96 million at $3.31 2020.
Our balance sheet remains healthy.
With a current ratio of 2 times at March 31, 2021, and working capital of over $180 million.
In closing we are excited about the future and will be a better company as a result of the trial space in the past year or so.
Our global accounting and finance team operated under severely tight timelines timelines recently, given that we thought our 10-K less than 3 weeks ago.
Their dedication is indicative of the type of people we have throughout the Ebix global footprint and these people will drive our success in a post COVID-19 world.
Many of our teammates in India have shown incredible commitment over the past few weeks in light of the horrific impacts of COVID-19 on our employees and their families in India.
We are grateful for their service to Ebix and we've more on the recent loss of 11 EBIT family members as a result of this pandemic.
Finally, our form 10-Q will be filed later today.
I'd like to now turn the call over to the President of our North American insurance businesses Ash Sawhney for his remarks on first quarter operations.
Hello, Steve on Darren.
I will provide a summary of the Q1 in North America results and updates on the outlook for full year 2021.
Which was recently discussed during the Q4 <unk> release.
Our North America revenue was down by approximately $4 million sequentially.
Compared to Q4, 'twenty 'twenty because of a $4 million seasonal traditional drop.
The accompanying medical certification business in the first quarter of every year.
And this sequential drop of approximately $1 million in underwriting exchange revenues.
Offset resolve these.
Whereas the gains in life and annuity and health exchanges the remaining business units stayed steady.
The medical certification business is cyclical in nature.
Core tends to be the highest revenue quarter in Q1 the lowest.
Each quarter of the year.
Group.
Port upward trend sequentially.
We expect to continue that year on year growth for this division for 2021 with.
With all the new initiatives, we announced in the last quarter.
The drop in underwriting exchange revenues is largely attributable to the slowdown in deliveries on projects there.
Worsening of the COVID-19 situation in India.
While we believe there is still down this temporary it may take us a few quarters to come back to normal but this business unit in light of the fact that we are spending on.
In the midst of the worst COVID-19 crisis in India.
The life and annuity exchange grew 8% sequentially.
This was the result of broad based increase in transaction on Walgreens.
March transactional volume in our annuity exchange was the highest we have seen in several years.
We are seeing the strength continuing in Q2.
We also saw our health exchange.
Grow by 14% sequentially.
Largely due again on increase in partner revenue during the speed at which can vary from quarter to quarter.
All of the major business line stayed steady during Q1.
The risk compliance business added 10, new customers in Q1.
Prominent amongst these rules go 1 of the largest independent U S furniture retailers.
<unk> homes.
They are the 10th largest private homebuilder in the U S.
<unk> constructors.
<unk> project delivery company.
On T Jones, the largest violently on timber harvesting on primary lumber product manufacturing company in British Columbia.
We continued to add more clients from open next illustration platform, including protective life on Ohio Nashville.
We are pleased with the earnings.
Robin collects analytics platform.
On the Ebix artificial intelligence platform.
Spec to add many more clients.
From in 2021.
We expanded consulting arrangement with Simons group and security benefit.
We have also started to build a pipeline for cloud based services like data.
We expanded our presence with Edward Jones.
Express from insurance product.
We have built a strong pipeline quarter Lightspeed exchange, we expect this to grow even stronger with the Jpmorgan implementation.
On the P&C exchange, we added coordinated on workers comp UBI carriers, including 2 tier 1 carriers.
Also added 4 new customers because of this conversion platform.
We saw 14% growth compared to Q1 of 2020 on such.
Pain levels compared to Q4.2020.
We continue to expand on digital and political side I think what the medical certification business, we hosted virtual events.
<unk> launched several more during the year, providing us incremental screens on revenue.
Also secured new contracts with University of Pennsylvania on the Manhattan School of Dentistry.
In Q1, we achieved major milestones would be amongst these are.
Continued buildout with Jpmorgan platform on and on.
Target will launch in Q2, this is significant what JP Morgan and the industry.
We'll also increase up on exactly with revenues from the platform.
Successful go lives Yoki benefit for their direct to consumer implementation and Navy mutual for the agent driven order entry platform we.
We are continuing to build out the navy zoom on solution, which will be ready for launch later this year.
Manulife loans, new AI different products on the platform the cost of its kind in Canada.
Sunlight added new products will be international platform on the underwriting team.
Finally, an update on major initiatives for 2021.
Compared to the growth on the region.
Anthony on for being ready bullish on our line. So we are already seeing record levels of transaction and we expect these will ramp up even more in the second half.
We'll see the impact of the JP Morgan Scottie it on building the <unk>.
Robin will track of ongoing JP Morgan on the Lifelock com.
Have an incremental impact from that move.
We are starting to see how people pipeline on fields on the enterprise and underwriting exchanges.
We anticipate that the second half, we'll see significant improvement.
COVID-19 momentum.
It starts to ease up.
We hope we'll get back to pre Covid levels in terms of revenue by Q4 reported 21, assuming that the situation in India will improve over the next 60.90 days.
We are working towards on Ebix Enterprise Health exchange on the Azure cloud. We believe this will give us significant exposure on the market to be at zero sales in that quarter.
On the standup of platform in Q2, and this will coincide with the launch of several marketing and sales campaigns.
We are excited about the Ebix Nathan.
We are confident of announcing our first joint win in Q2 of 2021.
We hope to back separately mortgage by the end of the year.
These deals along with several new relationships that we have established on the consulting side.
Our consulting business and an upward trajectory.
As the market conditions improve we plan to step up efforts to expand our sales team and separate the labels.
Our pipeline is healthy and growing our core life and annuity exchange network is the strongest it has been and.
And will expand to record levels before the end of the.
Our investments in new initiatives and accelerate growth.
We are seeing early successes with investing from analytics.
We expect steady on boarding of <unk> on this platform, giving us incremental and recurring revenue streams.
And the next phase of our journey that Inc.
Consumer initiatives will feature prominently.
It is where the market is headed and we are well positioned to capitalize on the opportunities would manifest both as exchanges on on.
On to play solutions.
With the Covid situation.
On significantly in North America on the hope that endeavored normalize in the coming months, we remain bullish about the full year performance in 2021.
We are fortunate to have the very best theme supporting on industry leading products.
Commitment of our employees during the pandemic has been a major factor, allowing.
Allowing us to stay strong floor income.
Very difficult guidance there.
Sacrifices.
Be forgotten.
I would now pass this along day Robin for his comments.
Good morning, everyone.
I believe that bottom ash and Steve have captured the quarter in detail.
Let me summarize by saying that these are unprecedented times and I'm pleased that Ebix has managed to keep it that high during such times.
<unk> continues to deliver top line growth and healthy operating income numbers.
It is no easy task to deal with the on slot of issues.
Brought in by COVID-19.
Clients are delaying their new deal decisions on site consulting related to product implementation is basically non existent.
Wrapping availability has been rather challenging.
And our full product line like Carlo Foreign exchange E learning et cetera are on.
At 10% or lower levels because of the direct impact of COVID-19.
As I said cash.
Statistical performance numbers to you in terms of EBIT.
Ex performance in the quarter.
It is 1 thing that no statistical performance can answer thought.
In the last 30 days, we have lost a lot of them young employees forever to COVID-19, leaving behind their spouses children and parents index for the rest of their life.
Let me read out on email from 1 Ebix software architects that GAAP, just a sense of the emotional roller coaster that stockpiles after day dealing with there.
The female or other items yesterday by 1 of our colleagues after the passing away.
1 female software professionals.
A few days back to COVID-19 to court.
Next up from his laptop.
Yeah.
5 years ago.
When I first got introduced to sit and he was curious on Eagle and explore every day.
And.
I would never probably than he would always come back he would always come with the second question scheme to bounce ideas.
And have the flexibility to his mind ready to absorb and adapt.
He did bring perspective, it's short keenly applied of mind, but.
But it was never adopt net.
And as already to follow the evidence.
I can never remember the broad smile. He bought every time he came on Alan's Continental remember if we ever found all of the Joliet low a chop collaborators on whether I need to take ownership ready to help out on us.
That brought on his perspective on ready to step up ready to lead.
Don't remember anybody ever having 1 complaint to make about him. He was a perfect. The man elevating the energy of the team and driving everyone succeed.
Success.
I don't know what went wrong.
No why he is no longer with US don't know why we could not save him from the 1 trouble he got into it should have never happened.
Don't ever.
Let him leave your heart. He was 1 of our best and brightest colleagues and a close friend to so many of US he will be a ringing void I still feel I'd be looking at on for him gone believe he will not be there anymore.
There's a number to check on something.
This has been such a hard month for us to see so many of our colleagues across division the locations.
Young lives in full Bloom depart on time lead to this wretched melody.
Go out to their families.
And let's keep a close eye on.
On all the others, who may be afflicted and do that.
And do what best we can so that we don't have to lose any of them anymore.
We will Miss you said then that badly and thank you for all that you did for us on.
Got it.
I read this out.
As sometimes we get locked in numbers and don't get a true perspective on the behind the scenes so that the block that.
It goes into the fundamentals of running an operation in such time and scale.
Delivering.
I salute.
Each of my employees across the World I don't have large strokes express my heartfelt condolences to the loved ones on the 11 employees. We have lost to this pandemic as a company Ebix will stand up for each of these families in terms of some financial help also Robin Raina Foundation.
Has volunteered to fund the cost of educating the children on each of these employees to the graduation studies, we are painfully event.
Can we do can ease the pain of these employees in any manner.
I'm quite proud of the Q1.2021company results.
Feel good about the fundamental drivers that will take ebix to the next level in coming years.
In the short term, we continue to work through the targeted ideal off our Ebix Scotch business in India.
The next shot from steps in that direction on 1.
<unk> went up on internationally renowned statutory auditor for the IPO to the appointment of an internationally renowned investment bank.
For the IPO as the fifth Banca <unk>.
The appointment of a diverse independent board for Ebix cash comprising announced names from the securities the debt.
Regulatory and banking industry amongst others.
We are at advanced stages on all of these 3 issues and will make public announcements on each of these fronts at the right time.
We just had on annual earnings call, a few weeks back and which I shared my perspective on the times ahead of us.
I will keep my comments comparatively brief and look forward to giving you brought up perspective during the Q2.2021on Investor calls.
I'll close the call and if and how to go on to the operator to open it up for questions.
<unk>.
Understood.
At this time I would like to remind everyone in order to ask a question.
You May press Star then the number 1 on your telephone keypad.
Again, Thats star 1 on your telephone keypad.
Yeah.
We'll pause for just a moment to compile the Q&A roster.
Your first question comes from the line of Jeff Van <unk> from Craig Hallum.
Your line is open.
Great. Thanks for taking my questions guys. A couple from me I guess as I look at the Robin as I look at the the Ebix cash business.
The payment cards.
Brutal time in India with Covid, what's going on do you have any sense of how that business behaves sequentially, namely I think ex.
Payments it was running.
At $30 million in Q3, 4 maybe bottomed around $17 million in Q2, obviously, we are starting to lift our head here, but you're going to get hit again does it go as low as it did in Q2 down to 17 or 18 or just any sense on what happens there.
Jeff.
Did you say it is this question related to the payment solutions business or the overall business. It's on Ebix I'd ask just on that.
Ebix cash ex payments, so ebix cash extra payments.
Got it.
So it's a low gautam.
If you take the payments business out Ebix cash actually grew almost 10% sequentially.
With respect to Q4.
At the same time, we on.
Nowhere near we would need to be partly because.
What has happened with the second wave of Covid infections, it's been brutal in India and he is just beyond anything that I have ever seen.
We are at a point, where travel is basically nonexistent right now.
Foreign exchange, so I don't expect any improvements in travel.
In Q2 at least in Q2.
However, I do expect some improvement in the foreign exchange area simply because as vaccinations are starting to happen internationally. The students are going back to school and what that is prompting is educational remittance says we are a leader in that market essentially accounts for 30% of educational remittance.
Sales out of India. So we expect a lot of that business to pick up.
In Q2 and on what.
Presently.
Businesses like <unk>.
Countries like Dubai for example, vaccinate.
We'll see foreign exchange business picked up and so on because we are we are getting ready to kind of deploy our plan.
Tom in Dubai for example, so I think it is we are clearly presently affected by.
By Covid. So if you take the non payment solutions areas, we expect to do steady state business and the technology businesses, we expect improvements in the bus exchange technology area.
We expect improvements in the foreign exchange area.
I expect slight downward trend in the travel area.
Reading up on the time, Inc.
And I expect.
The substantial improvements to continue on the payment solutions arena. So I think that's where we are even in the technology business is what the starting what is hurting us a little bit in terms of you should have shown a lot more growth in the technology business. It but what is starting to happen the majority of our clients so financial institutions or banks.
So if we already have on auto and deal with them.
And given the mixed up on implementation that we can continue clocking revenue on increased revenue. However.
No bank assigning brand new deals.
The situation improve because this is not really a big priority for them to start laying down a new a new identity for the bank. They don't think this is the right time to do it. So so that is clearly impacting us that any new deals all day.
Sales have been put on hope I'll give you. An example that even in the bus exchange arena, wherein we have been negotiating really substantial deals that can really move the needle in terms of revenue and profitability.
And many of these things out of it the government of India with State Road weighted undertakings, basically deploying let's say a platform and EPS.
It can be a bus from their platform for let's say that'd be a thousand buses in a particular state. That's an example, and today what has happened with Covid coming in that's not anymore on a big priority for the government.
As a product because they extend that if batteries are going to apply then they believe that system, but right now but is on flying that's not a big priority for them because they don't want to put people in buses.
The reality is those kind of things have been put on hold and these kind of witness Saturday ASO silicon from a little bit complicated because of the ground.
At present, there's almost a complete got a few.
In India. If you go around India, Singapore is now starting to.
You know kind of cliff.
Country in a way because they started then the number of infections have started to increase.
Emulation, Philippines have never come out of the onslaught of Covid.
It is it has impacted all the southeast Asian countries.
Sure on Nations, we don't business from 44 countries from from India. So it clearly has impacted our business, but I think the good news is the diversity of the business shows that we have kept most of these businesses I would say payment solutions are steady state. If you take many currently traveling directly related any learning.
But it could be related to Covid and I don't see an immediate solution even in the E learning area.
Because I don't see how how how any parent would put up get into school, even if look the way that vaccinations, Jeff outgoing debt.
Government of India has basically claiming that they will be able to do the first level of close to billion vaccinations by year and what it means if they do 1 billion vaccinations by year end that are virtually mean 500 million people vaccinated, because the calling 2 vaccinations.
Oh, there's 1.
Calling that 1.500 billion people that maybe were impacted 45% of the people and.
<unk>.
So having said that.
However, if they can achieve.
Even decent number even them on first start getting to 25% coverage.
I think it will have a dramatic impact on our business and on all businesses simply because.
On the hub if they can even with all the hop on the epicentre of Covid, which is in places like Mumbai Places like Delhi, then things will change going on today right now vaccinated today's data is the day live action. They did only it's 10.
10% right. However, there is some positive news that has emerged in the last few days out the belly that the positive day rate is coming down.
There's more availability of bad from it seemed like positive signs.
But we are far from a stage, where I could tell you that debt.
India is starting to conquer the debt.
The pandemic.
Mhm.
Great and just 1 last from me I think as it relates to the staffing at.
It sounds like you know pretty severe staffing issues, just how how much of a risk is it.
Obviously got some big projects in play at JP Morgan on others and it sounded like you were going to do some things to get some people in there right away just talk a bit more about the staffing.
So Jeff it was mainly in 1 city I mean, there's all kinds of reasons on it but mainly in 1 city hydro, but we do not have any other shoes at what many of you don't have any immediate issue than any other players there will be issues, but we've been able to handle them. It's mainly in Hyderabad, but that's a very large development base for us and we have been making arrangements.
To handle that so we should be able to handle it I do not see that as.
And the huge issue it did have an impact on our revenue than in Q1, but hopefully we'll make make up for a decent part of it and do 2 on for most part of it didn't kill do we have made arrangements for that so I do not I wouldn't read much into it and the staffing levels at least on the you know, it's mainly a hydro, but we don't have those issues in other <unk>.
On the print centers across the world on anywhere else in India, we've been able to we've been able to handle all our hosting facility is up on operations virtually everything it's only been on hybrid about for all kinds of weighted reasons.
Got it that's it from me thanks.
Thank you.
Yeah.
Again for anyone who wants to ask questions you need price Sars and the number 1 on your telephone keypad.
Yeah.
Yeah.
Your next question comes from the line of Christopher <unk> from singular Research. Your line is open.
Yeah.
Hi, Robin.
Good morning Heiko.
I had a question regarding <unk>.
Ex cash is M&A opportunities I wanted to see.
If you thought this would be a good time in India to gain market share.
Yeah.
Look that's a great question at the same time, frankly, I'll tell you that we.
We do not right now we're not planning to do.
Anything.
On M&A side at least on the Ebix cash site in India now you could see us, possibly do with something you know in.
In the U S, but again, if we do anything we'll think through it.
And have any sensible manner and so on in India right now the part of the reason, we don't want to we don't want to take our eyes off the.
After the focus that we have today.
We have we are clearly wanting to head towards that IPO and as we head toward that I feel if I make it let's say we'd made on M&A Tonight.
What will happen is we need to find a D. A choppy we need to get a number 3 or number of the audit debt and we will have to order. It does doing the deal on it and once they do that you are on it but we're going to file looking with analysts smoking with lawyers.
They're going to file.
The red heading document that we call it in the U S. D. HRP documents with the Securities and Exchange Commission of India now when you do that when you make any acquisition it complicates things a lot because it it changes everything and it does not typically from an investment bankers.
Perspective to do anything in during the time when you were making on acquisition. When you are making filing an IPO. It will complicate things day, there's a lot of different it'll it will prolong the profit the elongated the process considerably. So I wouldn't right now while I agree with you that there is the Susan I'll put you on time and it's actually a.
Very good question, Chris because I.
How are you on what is happening today, if you look at the areas, which are getting badly hit, but just travel and foreign exchange.
The debt.
The market is getting wiped off smaller players our bank debt at day 1.
Do you think that they're not able to stand up to the on slot them and able to retain their staffing levels and its happening and book travel and foreign exchange. So what is starting to happen is a lot of these blood line out there either.
We are trying to do we're trying to just pick up this business easy business, what I mean by that is what it is.
Rather than making an acquisition. We think this is an open opportunity for organic growth organic growth for us. So we're kind of keeping our eye focused on trying to go off on each of these opportunities really on a particular company is starting to flow.
A lot of companies have approached us in the present time trying to clearly wanting to come under the ebix umbrella, partly but especially in the travel and foreign exchange checked out simply because they're unable to.
Fund the working capital fund the employee cost side now so having said that it is it is normally a reasonable opportunity, but we also feel that that's what will happen as we come out of the COVID-19.
Company's profit who have a profitable business.
On the only ones, who will be able to keep that had high or do you have to be very adequately funded by fantastic institutions. Because bank debt is also becoming difficult for some of these players who are making losses.
The lineup of bank, what do they want to support that that will play out on a foreign exchange player in times like this so so it is on it is on a particular time also but at the same time. Unfortunately, we think that the best way to handle this is simply not making an acquisition.
From an ebix cash perspective, but simply trying to organically picked this business up by talking to each of these found on each of these players and seeing maybe the easier way to do this without even on buying the business.
Okay.
Right. So then I guess after the IPO would there be more opportunity opportunity for mergers.
There will absolutely be many once you have on IPO and hopefully be up.
If you'll hopefully be able to generate pretty solid amount of money and 1 of the uses of cash would be to continue to fund our growth both organically and inorganically so absolutely.
Okay, great. Thanks Robin.
Thank you Chris.
Okay.
Yeah.
Again for anyone who wants to ask questions. You May Press Star then the number 1 on your telephone keypad.
Yeah.
There are no more questions at this time for sensors. Please continue.
Thanks, Jeff.
I think that brings us to the end of the call. Thanks, everyone for participating on the call we look forward to.
Talking to each 1 of few during.
During the second quarter 2021, investor call with that I'll close the call. Thank you.
Ladies and gentlemen. This concludes today's conference calls on thank you for your participation you may now disconnect.