Beruflich Dokumente
Kultur Dokumente
2011
Responding to Gotham Analysis (Part 2)
11 March 2013
spinvestor2003@yahoo.com
EBIX CEO Robin Rainer addressed the change in presentation of long lived assets
Jeff, there is actually no variance in numbers. Just the presentation format changed between the two filings. The 2010 10K filing includes specific amounts for goodwill and intangibles and then a separate amount for fixed assets and certain other long-lived assets. The 2011 10K had just, uses a different format in which we lump all the above together under the heading long-lived assets, meaning, that we aggregated the sum total of goodwill, intangibles, fixed assets, and some other assets together. The number in the 2010 10K filing, when aggregated together, would be exactly the same as the 2011 10K filing. So the presentation changed, not the numbers.
SOURCE: Craig Hallum EBIX update call Feb 26 2013
SOURCE: Gotham City Research EBIX: All Distraction, No Clarity (emphasis added)
Surely it cant be that hard to check whos correctLets start with Robins statement
we lump all the above together under the heading long-lived assets, meaning, that we aggregated the sum total of goodwill, intangibles, fixed assets, and some other assets together
X Y Z
5
Lets check if the Note 16 from 2010-10k match the 2010 for Goodwill and Intangible assets They Match! Note 16 2010-10k
From Slide #5
Lets check long-lived assets under the new 2011 presentation format
The number in the 2010 10K filing, when aggregated together, would be exactly the same as the 2011 10K filing.
Lets check if the Note 16 from 2010-10k match the 2011 for 2010 for Long-tem assets under the new presentation format
First we have to add in the Fixed assets in Note 16 to the Goodwill and intangible assets and then finally add in the other assets from the balance sheet.
Lets check long-lived assets under the new 2011 presentation format (cont.)
The number in the 2010 10K filing, when aggregated together, would be exactly the same as the 2011 10K filing.
Now lets compare row of the 2010-10k Note 16 old format to the 2011-10k Note 16 new format for 2010 They match!
Note 16 From 2011-10k for 2010
How are Gotham City Research tracking against their concerns so far?
Ebixs 2010 long-lived assets dont add up, between the 2010 and 2011 10Ks.
Jeff, there is actually no variance in numbers. Just the presentation format changed between the two filings. Craig Hallum EBIX update call Feb 26 2013
How are Gotham City Research tracking against their concerns so far?
Ebixs 2010 long-lived assets dont add up, between the 2010 and 2011 10Ks.
11
How are Gotham City Research tracking against their concerns so far?
Ebixs 2010 long-lived assets dont add up, between the 2010 and 2011 10Ks. The Singapore irregularity alone is $67 million.
12
Jeff, there is actually no variance in numbers. Just the presentation format changed between the two filings. Craig Hallum EBIX update call Feb 26 2013
13
Is Robin Right? Does the Presentation format explain the large difference in Singapore assets?
Gotham Capital Research correctly notes that intangibles are essentially all the assets (94-96%) so we can agree that Long-lived assets and Goodwill and intangible assets are essentially the same.
14
Is Robin Right? Does the Presentation format explain the large difference in Singapore assets? (cont.)
Why the difference?
15
Is Robin Right? Does the Presentation format explain the large difference in Singapore assets? (cont.)
Lets examine Note 16 closely.. 2010-10k Disclosure
2011-10k Disclosure
16
Is Robin Right? Does the Presentation format explain the large difference in Singapore assets? (cont.)
Lets examine Note 16 closely..
"The following information relates to primary geographic locations in which the Company conducts its operations -2011-10k
Is Robin Right? Does the Presentation format explain the large difference in Singapore assets? (cont.) The following information relates to geographic locations in 2010 advises the reader that the presentation format is based on physical geographic ownership of assets. So for example Singapore has subsidiaries in Brazil, India, USA etc., but the ownership structure is via the Singapore subsidiary, most likely EBIX Singapore Pte Ltd.
18
Is Robin Right? Does the Presentation format explain the large difference in Singapore assets? (cont.)
In 2011 the language changes to "The following information relates to primary geographic locations in which the Company conducts its operations. This alerts the reader that the presentation format has now changed.
This new presentation format is now based on where the primary operational activity occurs, not asset ownership as in 2010. So for example, Brazil activity is now put into Latin America.
19
Is Robin Right? Does the Presentation format explain the large difference in Singapore assets? (cont.)
We can examine the subsidiaries of Ebix Singapore Pte Ltd to understand how moving from a geographic basis to an operational basis can dramatically change the presentation format of the numbers
Jeff, there is actually no variance in numbers. Just the presentation format changed between the two filings. Craig Hallum EBIX update call Feb 26 2013
20
How are Gotham City Research tracking against their concerns so far?
Ebixs 2010 long-lived assets dont add up, between the 2010 and 2011 10Ks. The Singapore irregularity alone is $67 million.
21
How are Gotham City Research tracking against their concerns so far?
Ebixs 2010 long-lived assets dont add up, between the 2010 and 2011 10Ks. The Singapore irregularity alone is $67 million. This variance is nearly equal to Ebixs entire 2011 net income and over 10% of Ebixs market cap.
22
23
How are Gotham City Research tracking against their concerns so far?
Ebixs 2010 long-lived assets dont add up, between the 2010 and 2011 10Ks. The Singapore irregularity alone is $67 million. This variance is nearly equal to Ebixs entire 2011 net income and over 10% of Ebixs market cap. One of the main reasons we believe that Ebixs financial statements remain materially unreliable, inaccurate, and incomplete is the very large differences in the 2010 long-lived asset numbers.
24