• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • Sponsored Placement
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Jack Henry & Associates Ends Fiscal 2017 With 6% Increase In Revenue


News provided by

Jack Henry & Associates, Inc.

Aug 15, 2017, 16:15 ET

Share this article

Share this article


MONETT, Mo., Aug. 15, 2017 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ: JKHY), a leading provider of technology solutions and payment processing services primarily for the financial services industry, today announced fourth quarter and full year fiscal 2017 results. 

Revenue for the quarter ended June 30, 2017 increased to $383.8 million, a 5% increase over the fourth quarter of fiscal 2016.  Gross profit also increased 2% to $164.4 million.  Net income decreased 23% to $64.7 million, or $0.83 per diluted share, due to the gain on the sale of Alogent recognized in the fourth quarter of fiscal 2016, coupled with lower deconversion fees in the fourth quarter of fiscal 2017 compared to the same period of the prior year.

Revenue for the year ended June 30, 2017 increased 6% over the year ended June 30, 2016 to $1,431.1 million, with a gross profit increase of 5% to $612.1 million. Net income totaled $245.8 million, a decrease of 1% over the prior year-to-date period, with diluted earnings per share of $3.14.  The decrease in net income was due to the gain on the sale of Alogent in the prior year. 

According to David Foss, President and CEO, "As we wrap up our FY'17, we are pleased to report another year of record revenue and operating income.  Our combined sales organization ended their year ahead of plan and our sales pipeline is very strong which should position us well for next year.  Additionally, we are pleased that both our employee engagement and customer satisfaction scores continue to be very solid as we enter FY'18."

Operating Results

Revenue, cost of sales, and gross profit results for the quarter and year ended June 30, 2017 were as follows:

Revenue, Cost of Sales, and Gross Profit
(Unaudited)






(In Thousands)

Three Months Ended
June 30,

%
Change


Year Ended
June 30,

%
Change


2017



2016




2017



2016



Revenue










License

$

326



$

511


(36)

%


$

2,385



$

3,041


(22)

%

  Percentage of Total Revenue

<1

%


<1

%



<1

%


<1

%


Support and Service

371,008



353,364


5

%


1,384,338



1,300,978


6

%

  Percentage of Total Revenue

97

%


96

%



97

%


96

%


Hardware

12,435



13,095


(5)

%


44,394



50,627


(12)

%

  Percentage of Total Revenue

3

%


4

%



3

%


4

%


Total Revenue

383,769



366,970


5

%


1,431,117



1,354,646


6

%











Cost of Sales










Cost of License

139



325


(57)

%


730



1,197


(39)

%

Cost of Support and Service

210,138



195,878


7

%


786,143



737,108


7

%

Cost of Hardware

9,121



9,067


1

%


32,161



35,346


(9)

%

Total Cost of Sales

219,398



205,270


7

%


819,034



773,651


6

%











Gross Profit










License Gross Profit

187



186


1

%


1,655



1,844


(10)

%

  License Gross Profit Margin

57

%


36

%



69

%


61

%


Support and Service Gross Profit

160,870



157,486


2

%


598,195



563,870


6

%

  Support and Service Gross Profit Margin

43

%


45

%



43

%


43

%


Hardware Gross Profit

3,314



4,028


(18)

%


12,233



15,281


(20)

%

  Hardware Gross Profit Margin

27

%


31

%



28

%


30

%


Total Gross Profit

$

164,371



$

161,700


2

%


$

612,083



$

580,995


5

%

  Gross Profit Margin

43

%


44

%



43

%


43

%


  • Fourth quarter fiscal 2016 included revenue of $6.1 million from Alogent, which was sold near the end of that quarter. In addition, deconversion fees in the fourth quarter of fiscal 2017 decreased $8.9 million compared to the fourth quarter of the prior year. Excluding Alogent revenue and costs from the prior year, and deconversion fees from both periods, revenue increased 9% and gross profit increased 10%.
  • The twelve months ended June 30, 2016 included revenue of $28.4 million from Alogent. Deconversion fees for fiscal 2017 increased $1.9 million. Excluding the Alogent headwind, and deconversion fees from both periods, revenue increased 8% and gross profit increased 9% over the twelve months ended June 30, 2016.
  • For the fourth quarter of fiscal 2017, the bank systems and services segment revenue increased 2% to $277.4 million, with a gross margin of 40%, from $272.7 million, with a gross margin of 43%, in the same quarter last year. Excluding Alogent from the fourth quarter of fiscal 2016, bank systems and services segment revenue increased 4% for the quarter. The credit union systems and services segment revenue increased 13% to $106.4 million, with a gross margin of 50%, for the fourth quarter of fiscal 2017 from $94.3 million, with a gross margin of 47%, in the same period a year ago. The increased revenue in the credit union segment was mainly due to an increase in bundled services revenue caused by an increase in terminations of pending products and service obligations on certain contracts allowing for earlier recognition of revenue on our bundled arrangements.
  • For the twelve months ended June 30, 2017, bank systems and services segment revenue increased 6% to $1,055.8 million, with a gross margin of 41%, from $996.7 million, with a gross margin of 41%, for the same twelve months of fiscal 2016. Excluding Alogent revenue from the prior year period, bank systems and services revenue increased 9%. Credit union systems and services segment revenue increased 5% to $375.4 million, with a gross margin of 49%, for the year-to-date period, compared to revenue of $358.0 million, with a gross margin of 48%, for the twelve months ended June 30, 2016.

Operating Expenses and Operating Income

Operating income decreased 15% to $98.9 million, or 26% of fourth quarter fiscal 2017 revenue, compared to $116.5 million, or 32% of revenue in the fourth quarter of fiscal 2016.  The decrease in operating income was due to the gain on the sale of Alogent recognized in the fourth quarter of fiscal 2016, coupled with lower deconversion fees in the fourth quarter of fiscal 2017.  Full year operating income increased 2% to $367.7 million, which was 26% of year-to-date revenue, compared to $361.7 million, or 27% of revenue in the twelve months ended June 30, 2016.

(Unaudited, In Thousands)

Three Months Ended
June 30,

%
Change


Year Ended
June 30,

%
Change


2017



2016




2017



2016



Selling and Marketing

$

25,696



$

23,365


10

%


$

93,297



$

90,079


4

%

Percentage of Total Revenue

7

%


6

%



7

%


7

%


Research and Development

23,340



23,964


(3)

%


84,753



81,234


4

%

Percentage of Total Revenue

6

%


7

%



6

%


6

%


General and Administrative

17,407



17,357


—

%


69,601



67,514


3

%

Percentage of Total Revenue

5

%


5

%



5

%


5

%


Gain on disposal of a business

(1,020)



(19,491)


(95)

%


(3,270)



(19,491)


(83)

%

Total Operating Expenses

65,423



45,195


45

%


244,381



219,336


11

%

Operating Income

$

98,948



$

116,505


(15)

%


$

367,702



$

361,659


2

%

Operating Margin

26

%


32

%



26

%


27

%


  • Selling and marketing expenses for the fourth quarter of fiscal 2017 and for the full fiscal year increased over the prior year due mainly to increased commission expense. For the fiscal year, selling and marketing expense remained at a consistent percentage of total revenue.
  • Research and development expense for the fourth quarter decreased mainly due to lower losses related to asset sales compared to the prior year quarter. The increase in research and development costs in the year ended June 30, 2017 was primarily due to a 4% increase in headcount, but these costs remained consistent with the prior year as a percentage of total revenue.
  • General and administrative expenses increased for both the quarter and year ended June 30, 2017 primarily due to an increase in headcount, but were a consistent percentage of revenue in each period.
  • In the fourth quarter of fiscal 2017, we sold our Regulatory Filing products to Fed Reporter. In the fourth quarter of fiscal 2016, we sold our Alogent business ("Alogent") to Antelope Acquisition Co., an affiliate of Battery Ventures.

Net Income

Fourth quarter net income decreased 23% to $64.7 million, or $0.83 per diluted share, compared to $84.3 million, or $1.06 per diluted share, in the fourth quarter of fiscal 2016.  The decrease is due to the gain on the sale of Alogent recognized in the fourth quarter of fiscal 2016, coupled with an $8.9 million decrease in deconversion fees in the fourth quarter of fiscal 2017 compared to the same quarter of the prior year.

Net income for the year ended June 30, 2017 decreased 1% to $245.8 million, or $3.14 per diluted share, compared to $248.9 million or $3.12 per diluted share in fiscal 2016. 

(Unaudited, In Thousands,

Except Per Share Data)

Three Months Ended
June 30,

%
Change


Year Ended
June 30,

%
Change


2017



2016




2017



2016



Income Before Income Taxes

$

98,594



$

116,106


(15)

%


$

366,954



$

360,536


2

%

Provision for Income Taxes

33,903



31,836


6

%


121,161



111,669


9

%

Net Income

$

64,691



$

84,270


(23)

%


$

245,793



$

248,867


(1)

%

Diluted earnings per share

$

0.83



$

1.06


(22)

%


$

3.14



$

3.12


1

%

  • Provision for income taxes increased in the fourth quarter, with an effective tax rate at 34.4% of income before income taxes, compared to 27.4% for the same quarter of the prior year. The increase in the effective tax rate was due primarily to a significant difference in the book versus tax basis in Alogent stock sold in the fourth quarter of fiscal 2016, causing a decrease in that quarter's effective tax rate.
  • For the fiscal year, the effective tax rate increased to 33.0% of income before income taxes from 31.0% for the year ending June 30, 2016, with the increase again being due mainly to the effect of the Alogent sale on the prior year's effective tax rate.
  • The adoption of ASU 2016-09 (Improvements to Employee Share-Based Payment Accounting) resulted in an increase in diluted earnings per share of $0.03 for the year ended June 30, 2017.

Effects of Alogent and Deconversion Fees

The table below shows our results for the fourth quarter and fiscal year excluding the impact of Alogent operations and the gain on the sale of Alogent from fiscal 2016 and deconversion fees from each year.


Three Months Ended June 30, 2017


Three Months Ended June 30, 2016




As Reported

Early
Term
Fees

ProForma


As Reported

Alogent
Activity &
Gain

Early
Term
Fees

ProForma

Change

%
Change

Revenue

$

383,769


$

6,093


$

377,676



$

366,970


$

6,089


$

14,958


$

345,923


$

31,753


9

%

Operating Income

98,948


6,093


92,855



116,505


19,946


14,958


81,601


11,254


14

%

Income Before Income Taxes

98,594


6,093


92,501



116,106


19,946


14,958


81,202


11,299


14

%

Provision for Income Taxes

33,903


2,193


31,710



31,836


1,317


5,385


25,134


6,576


26

%

Net Income

$

64,691


$

3,900


$

60,791



$

84,270


$

18,629


$

9,573


$

56,068


$

4,723


8

%












Diluted earnings per share

$

0.83


$

0.05


$

0.78



$

1.06


$

0.24


$

0.12


$

0.71


$

0.07


10

%

Diluted weighted average shares outstanding

78,064


78,064


78,064



79,261


79,261


79,261


79,261
















Year Ended June 30, 2017


Year Ended June 30, 2016




As Reported

Early
Term
Fees

ProForma


As Reported

Alogent
Activity &
Gain

Early
Term
Fees

ProForma

Change

%
Change

Revenue

$

1,431,117


$

39,516


$

1,391,601



$

1,354,646


$

28,422


$

37,589


$

1,288,635


$

102,966


8

%

Operating Income

367,702


39,516


328,186



361,659


21,836


37,589


302,234


25,952


9

%

Income Before Income Taxes

366,954


39,516


327,438



360,536


21,836


37,589


301,111


26,327


9

%

Provision for Income Taxes

121,161


14,226


106,935



111,669


1,998


13,532


96,139


10,796


11

%

Net Income

$

245,793


$

25,290


$

220,503



$

248,867


$

19,838


$

24,057


$

204,972


$

15,531


8

%












Diluted earnings per share

$

3.14


$

0.32


$

2.82



$

3.12


$

0.25


$

0.30


$

2.57


$

0.25


10

%

Diluted weighted average shares outstanding

78,255


78,255


78,255



79,734


79,734


79,734


79,734




According to Kevin Williams, CFO, "We thought it was important to provide our operating results on a true apples-to-apples comparison without all the noise created by the divestiture of Alogent in the prior year and the early term fees from both fiscal years.  The divestiture created revenue headwinds during the year and had a significant one time gain on the sale and the early term fees are primarily caused by mergers and acquisitions of our customers, which we have no control over.  Therefore, it makes sense to remove both of these to provide a clear picture of our operations."

Balance Sheet and Cash Flow Review

  • At June 30, 2017, cash and cash equivalents increased to $114.8 million from $70.3 million at June 30, 2016.
  • Trade receivables totaled $276.9 million at June 30, 2017 compared to $253.9 million at June 30, 2016.
  • Current and long-term debt totaled $50.0 million at June 30, 2017, an increase from $0.2 million a year ago.
  • Total deferred revenue decreased to $511.4 million at June 30, 2017, compared to $521.1 million a year ago.
  • Stockholders' equity increased to $1,032.1 million at June 30, 2017, compared to $996.2 million a year ago.

Cash provided by operations totaled $357.3 million in fiscal 2017 compared to $366.4 million last year.  The following table summarizes net cash (in thousands) from operating activities:

(Unaudited, In Thousands)

Year Ended June 30,


2017


2016

Net income

$

245,793



$

248,867


Depreciation

49,677



50,571


Amortization

90,109



79,077


Other non-cash expenses

46,840



31,356


Change in receivables

(22,499)



(13,735)


Change in deferred revenue

(8,800)



4,364


Change in other assets and liabilities

(43,798)



(34,078)


Net cash provided by operating activities

$

357,322



$

366,422


Cash used in investing activities for fiscal 2017 totaled $141.6 million, compared to $136.0 million for the same period in fiscal 2016 and included the following:

(Unaudited, In Thousands)

Year Ended June 30,


2017


2016

Payment for acquisitions, net of cash acquired

$

—



$

(8,275)


Capital expenditures

(41,947)



(56,325)


Proceeds from the sale of businesses

5,632



34,030


Proceeds from the sale of assets

968



2,844


Internal use software

(16,608)



(11,826)


Computer software developed

(89,631)



(96,411)


Net cash from investing activities

$

(141,586)



$

(135,963)


  • The $41.9 million in capital expenditures was mainly for the purchase of computer equipment.

Financing activities used cash of $171.3 million in fiscal 2017 and $308.5 million in fiscal 2016. 

(Unaudited, In Thousands)

Year Ended June 30,


2017


2016

Borrowings on credit facilities

$

80,000



$

100,000


Repayments on credit facilities

(30,200)



(152,500)


Purchase of treasury stock

(130,140)



(175,662)


Dividends paid

(91,707)



(84,118)


Net cash from issuance of stock and tax related to stock-based compensation

766



3,818


Net cash from financing activities

$

(171,281)



$

(308,462)


Quarterly Conference Call

The company will hold a conference call on August 16, 2017; at 7:45 a.m. Central Time and investors are invited to listen at www.jackhenry.com.

About Jack Henry & Associates

Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its solutions serve more than 9,000 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking® supports banks ranging from community banks to multi-billion dollar institutions with information processing solutions.  Symitar® is the leading provider of information processing solutions for credit unions of all sizes. ProfitStars® provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control risks, optimize revenue and growth opportunities, and contain costs.  Additional information is available at www.jackhenry.com.

Statements made in this news release that are not historical facts are forward-looking information.  Actual results may differ materially from those projected in any forward-looking information.  Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information.  Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements.  Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.

Condensed Consolidated Statements of Income
(Unaudited)






(In Thousands, Except Per Share Data)

Three Months Ended June 30,


% Change


Year Ended June 30,


% Change


2017


2016




2017


2016



REVENUE












License

$

326



$

511



(36)

%


$

2,385



$

3,041



(22)

%

Support and service

371,008



353,364



5

%


1,384,338



1,300,978



6

%

Hardware

12,435



13,095



(5)

%


44,394



50,627



(12)

%

Total

383,769



366,970



5

%


1,431,117



1,354,646



6

%

COST OF SALES












Cost of license

139



325



(57)

%


730



1,197



(39)

%

Cost of support and service

210,138



195,878



7

%


786,143



737,108



7

%

Cost of hardware

9,121



9,067



1

%


32,161



35,346



(9)

%

Total

219,398



205,270



7

%


819,034



773,651



6

%

GROSS PROFIT

164,371



161,700



2

%


612,083



580,995



5

%

Gross Profit Margin

43

%


44

%




43

%


43

%



OPERATING EXPENSES












Selling and marketing

25,696



23,365



10

%


93,297



90,079



4

%

Research and development

23,340



23,964



(3)

%


84,753



81,234



4

%

General and administrative

17,407



17,357



—

%


69,601



67,514



3

%

Gain on disposal of a business

(1,020)



(19,491)



(95)

%


(3,270)



(19,491)



(83)

%

Total

65,423



45,195



45

%


244,381



219,336



11

%

OPERATING INCOME

98,948



116,505



(15)

%


367,702



361,659



2

%

INTEREST INCOME (EXPENSE)












Interest income

38



49



(22)

%


248



307



(19)

%

Interest expense

(392)



(448)



(13)

%


(996)



(1,430)



(30)

%

Total

(354)



(399)



(11)

%


(748)



(1,123)



(33)

%

INCOME BEFORE INCOME TAXES

98,594



116,106



(15)

%


366,954



360,536



2

%

PROVISION FOR INCOME TAXES

33,903



31,836



6

%


121,161



111,669



9

%

NET INCOME

$

64,691



$

84,270



(23)

%


$

245,793



$

248,867



(1)

%

Diluted net income per share

$

0.83



$

1.06





$

3.14



$

3.12




Diluted weighted average shares outstanding

78,064



79,261





78,255



79,734
















Consolidated Balance Sheet Highlights (Unaudited)











(In Thousands)







June 30,


% Change








2017


2016



Cash and cash equivalents







$

114,765



$

70,310



63

%

Receivables







276,923



253,923



9

%

Total assets







1,908,945



1,815,512



5

%













Accounts payable and accrued expenses







$

88,415



$

100,007



(12)

%

Current and long-term debt







50,000



200



24,900

%

Deferred revenue







511,384



521,054



(2)

%

Stockholders' equity







1,032,051



996,210



4

%

SOURCE Jack Henry & Associates, Inc.

Related Links

http://www.jackhenry.com

Modal title

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2022 Cision US Inc.