Jack Henry & Associates, Inc. Reports Fiscal 2021 Results

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Aug 17, 2021

Jack Henry & Associates, Inc. Reports Fiscal 2021 Results

MONETT, Mo., Aug. 17, 2021 /PRNewswire/ -- 

  • Year summary:
    • GAAP revenue increased 4% and operating income increased 5% for the fiscal year ended June 30, 2021 compared to the prior fiscal year.
    • Non-GAAP adjusted revenue increased 6% and non-GAAP adjusted operating income increased 13% for the fiscal year ended June 30, 2021 compared to the prior fiscal year.1
    • GAAP EPS was $4.12 per diluted share for the fiscal year ended June 30, 2021, compared to $3.86 for the prior fiscal year.
    • Cash at June 30, 2021 was $51.0 million and $213.3 million at June 30, 2020.
    • Debt related to the revolving credit line was $100 million at June 30, 2021 and zero at June 30, 2020.
  • Fourth quarter summary:
    • GAAP revenue increased 10% and operating income increased 25% for the quarter compared to the prior-year quarter.
    • Non-GAAP adjusted revenue increased 10% and non-GAAP adjusted operating income increased 25% for the quarter compared to the prior-year quarter.1
    • GAAP EPS was $1.04 per diluted share for the quarter, compared to $0.80 in the prior-year quarter.
  • Full-year fiscal 2022 guidance:
    • GAAP revenue $1,902 million to $1,911 million
    • GAAP EPS $4.53 to $4.60
    • Non-GAAP revenue $1,866 million to $1,875 million2

Jack Henry & Associates, Inc. (NASDAQ: JKHY), a leading provider of technology solutions and payment processing services primarily for the financial services industry, today announces results for the fourth quarter and full year of fiscal 2021 and discusses its continued response to the novel coronavirus (COVID-19) pandemic.

According to David Foss, President and CEO, "We are very pleased to report another quarter of record revenue, operating income, and total sales bookings.  Among many other successes, our sales teams contracted with 13 new core clients and sold 87 new digital banking systems in the quarter.  As we begin the new fiscal year, our sales pipeline remains strong, and we see significant opportunities to continue growing new and existing customer relationships through the successful execution of Jack Henry's client strategies in digital, lending, payments, and open banking.  We are optimistic about the strength of our technology solutions and the ability of our teams to deliver outstanding service in a market that is widely expected to increase technology and digital investments in a recovering economy."

Operating Results

Revenue, operating expenses, operating income, and net income for the three months and fiscal year ended June 30, 2021, as compared to the three months and fiscal year ended June 30, 2020, were as follows:

Revenue (Unaudited)

                     

(In Thousands)

Three Months Ended

June 30,

 

%
Change

 

Year Ended

June 30,

 

%
Change

 

2021

 

2020

     

2021

 

2020

   

Revenue

                     

Services and Support

$

261,697

   

$

247,235

   

6

%

 

$

1,048,206

   

$

1,051,451

   

%

Percentage of Total Revenue

58

%

 

60

%

     

60

%

 

62

%

   

Processing

188,590

   

163,302

   

15

%

 

710,019

   

645,616

   

10

%

Percentage of Total Revenue

42

%

 

40

%

     

40

%

 

38

%

   

Total Revenue

$

450,287

   

$

410,537

   

10

%

 

$

1,758,225

   

$

1,697,067

   

4

%

 

1 See tables below reconciling non-GAAP financial measures to GAAP.

2 See tables below reconciling fiscal year 2021 GAAP to non-GAAP guidance.

 

  • Processing revenue increased for the fourth quarter primarily driven by growth in card processing of 22.3%. Other increases were in remittance revenues and Jack Henry digital. Services and support revenue increased for the fourth quarter primarily driven by growth in data processing and hosting fees of 9.1% and increased software usage fees.
  • Processing revenue increased for the fiscal year primarily driven by growth in card processing of 11.5%. Other increases were in Jack Henry digital and remittance revenues. Services and support revenue remained consistent when compared to the prior fiscal year, with increases in Jack Henry cloud and public cloud revenues and software usage fees, and offsetting decreases in deconversion fees, pass-through revenues due to COVID-19 limitations,3 and hardware revenue.
  • For the fourth quarter, core segment revenue increased 4%, payments segment revenue increased 16%, complementary segment revenue increased 7%, and corporate and other segment revenue increased 17%.4
  • For the fiscal year, core segment revenue remained consistent, payments segment revenue increased 7%, complementary segment revenue increased 4%, and corporate and other segment revenue decreased 15%.4

Operating Expenses and Operating Income

(Unaudited, In Thousands)

Three Months Ended

June 30,

 

%
Change

 

Year Ended

June 30,

 

%
Change

 
 

2021

 

2020

     

2021

 

2020

     

Cost of Revenue

$

274,918

   

$

254,835

   

8

%

 

$

1,063,399

   

$

1,008,464

   

5

%

 

Percentage of Total Revenue

61

%

 

62

%

     

60

%

 

59

%

     

Research and Development

28,814

   

29,902

   

(4)

%

 

109,047

   

109,988

   

(1)

%

 

Percentage of Total Revenue

6

%

 

7

%

     

6

%

 

6

%

     

Selling, General, and Administrative

50,259

   

49,002

   

3

%

 

187,060

   

197,988

   

(6)

%

 

Percentage of Total Revenue

11

%

 

12

%

     

11

%

 

12

%

     

Total Operating Expenses

353,991

   

333,739

   

6

%

 

1,359,506

   

1,316,440

   

3

%

 

Operating Income

$

96,296

   

$

76,798

   

25

%

 

$

398,719

   

$

380,627

   

5

%

 

Operating Margin

21

%

 

19

%

     

23

%

 

22

%

     

 

  • Cost of revenue increased for the fourth quarter primarily due to higher costs associated with our card processing platform, personnel costs, and operating licenses and fees.
  • Cost of revenue increased for the fiscal year primarily due to higher costs associated with our card processing platform, personnel costs, and operating licenses and fees, partially offset by travel expense savings as a result of COVID-19 travel limitations3 and lower costs related to hardware.
  • Research and development expense decreased for the fourth quarter and fiscal year primarily due to higher capitalized research and development costs partially offset by an increase in personnel costs.
  • Selling, general, and administrative expense increased for the fourth quarter primarily due to increased personnel costs and travel expenses partially offset by the change in gain/loss on disposal of assets, net.
  • Selling, general, and administrative expense decreased for the fiscal year primarily due to travel expense and other savings as a result of COVID-19 limitations and the change in gain/loss on disposal of assets, net, partially offset by increased personnel costs. COVID-19-related savings included our national sales meeting, Jack Henry Annual Conference, and Symitar Education Conference that were all held virtually this year.3

Net Income

(Unaudited, In Thousands,

Except Per Share Data)

Three Months Ended

June 30,

 

%
Change

 

Year Ended

June 30,

 

%
Change

 

2021

 

2020

     

2021

 

2020

   

Income Before Income Taxes

$

95,683

   

$

76,673

   

25

%

 

$

397,725

   

$

381,076

   

4

%

Provision for Income Taxes

18,821

   

15,328

   

23

%

 

86,256

   

84,408

   

2

%

Net Income

$

76,862

   

$

61,345

   

25

%

 

$

311,469

   

$

296,668

   

5

%

Diluted earnings per share

$

1.04

   

$

0.80

   

30

%

 

$

4.12

   

$

3.86

   

7

%

 

3 See "COVID-19 Impact and Response" section below.

4 See revenue lines of segment break-out tables on pages 4 and 5 below.

 

  • Effective tax rates for the fourth quarter of fiscal years 2021 and 2020 were 19.7% and 20.0%, respectively.  Effective tax rates for fiscal years 2021 and 2020 were 21.7% and 22.1%, respectively.

According to Kevin Williams, CFO and Treasurer, "For both the fourth fiscal quarter and the full fiscal year, our private cloud, card processing and digital solutions drove our revenue growth. We saw nice operating margin expansion on a non-GAAP basis for both the quarter and full fiscal year.  We are very pleased to report our Return on Invested Capital (ROIC) of 21% for the full fiscal year which is up from 20% a year ago.  I also want to thank all of our management team and associates for all the contributions during the year to support our customers and continue moving our company forward."

Non-GAAP Impact of Deconversion Fees and Acquisitions, Divestitures, and Gain/Loss

The table below shows our revenue and operating income (in thousands) for the three months and fiscal year ended June 30, 2021 compared to the three months and fiscal year ended June 30, 2020, excluding the impacts of deconversion fees and acquisitions, divestitures, and gain/loss.

(Unaudited, In Thousands)

Three Months Ended June 30,

 

%
Change

 

Year Ended June 30,

 

%
Change

 

2021

 

2020

     

2021

 

2020

   
                       

Reported Revenue (GAAP)

$

450,287

   

$

410,537

   

10

%

 

$

1,758,225

   

$

1,697,067

   

4

%

                       

Adjustments:

                     

Deconversion fee revenue

(8,231)

   

(8,530)

       

(20,635)

   

(53,914)

     

Revenue from acquisitions and divestitures

(9)

   

(1,166)

       

(9)

   

(3,574)

     
                       

Non-GAAP Adjusted Revenue

$

442,047

   

$

400,841

   

10

%

 

$

1,737,581

   

$

1,639,579

   

6

%

                       
                       

Reported Operating Income (GAAP)

$

96,296

   

$

76,798

   

25

%

 

$

398,719

   

$

380,627

   

5

%

                       

Adjustments:

                     

Operating income from deconversion fees

(7,616)

   

(6,925)

       

(18,721)

   

(48,885)

     

Operating (income)/loss from acquisitions, divestitures, and gain/loss

209

   

1,348

       

(1,786)

   

3,909

     
                       

Non-GAAP Adjusted Operating Income

$

88,889

   

$

71,221

   

25

%

 

$

378,212

   

$

335,651

   

13

%

The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.

(Unaudited, In Thousands)

Three Months Ended June 30, 2021

 

Core

 

Payments

 

Complementary

 

Corporate
and Other

 

Total

Revenue

$

140,843

   

$

169,551

   

$

128,735

   

$

11,158

   

$

450,287

 

Deconversion fees

(3,162)

   

(1,852)

   

(3,189)

   

(28)

   

(8,231)

 

Acquisition

   

   

(9)

   

   

(9)

 

Non-GAAP Adjusted Revenue

137,681

   

167,699

   

125,537

   

11,130

   

442,047

 
                   

Cost of Revenue

61,616

   

93,170

   

53,990

   

66,142

   

274,918

 

Non-GAAP adjustments

(129)

   

(107)

   

(280)

   

(3)

   

(519)

 

Non-GAAP Adjusted Cost of Revenue

61,487

   

93,063

   

53,710

   

66,139

   

274,399

 

Non- GAAP Adjusted Segment Income

$

76,194

   

$

74,636

   

$

71,827

   

$

(55,009)

     
                   

Research and Development

               

28,814

 

Selling, General, and Administrative

               

50,259

 

Non-GAAP adjustments unassigned to a segment

               

(314)

 

Non-GAAP Total Adjusted Operating Expenses

               

353,158

 

Non-GAAP Adjusted Operating Income

               

$

88,889

 
               

(Unaudited, In Thousands)

Three Months Ended June 30, 2020

 

Core

 

Payments

 

Complementary

 

Corporate
and Other

 

Total

Revenue

$

135,459

   

$

145,542

   

$

120,010

   

$

9,526

   

$

410,537

 

Deconversion fees

(4,318)

   

(1,933)

   

(2,173)

   

(106)

   

(8,530)

 

Divestiture

(1,166)

   

   

   

   

(1,166)

 

Non-GAAP Adjusted Revenue

129,975

   

143,609

   

117,837

   

9,420

   

400,841

 
                   

Cost of Revenue

58,794

   

83,013

   

51,588

   

61,440

   

254,835

 

Non-GAAP adjustments

(1,618)

   

(147)

   

(387)

   

(7)

   

(2,159)

 

Non-GAAP Adjusted Cost of Revenue

57,176

   

82,866

   

51,201

   

61,433

   

252,676

 

Non- GAAP Adjusted Segment Income

$

72,799

   

$

60,743

   

$

66,636

   

$

(52,013)

     
                   

Research and Development

               

29,902

 

Selling, General, and Administrative

               

49,002

 

Non-GAAP adjustments unassigned to a segment

               

(1,960)

 

Non-GAAP Total Adjusted Operating Expenses

               

329,620

 

Non-GAAP Adjusted Operating Income

               

$

71,221

 
                   

(Unaudited, In Thousands)

Year Ended June 30, 2021

 

Core

 

Payments

 

Complementary

 

Corporate
and Other

 

Total

Revenue

$

564,096

   

$

642,308

   

$

505,928

   

$

45,893

   

$

1,758,225

 

Deconversion fees

(7,458)

   

(6,285)

   

(6,778)

   

(114)

   

(20,635)

 

Acquisition

   

   

(9)

   

   

(9)

 

Non-GAAP Adjusted Revenue

556,638

   

636,023

   

499,141

   

45,779

   

1,737,581

 
                   

Cost of Revenue

247,285

   

353,581

   

212,627

   

249,906

   

1,063,399

 

Non-GAAP adjustments

(541)

   

(216)

   

(738)

   

(54)

   

(1,549)

 

Non-GAAP Adjusted Cost of Revenue

246,744

   

353,365

   

211,889

   

249,852

   

1,061,850

 

Non-GAAP Adjusted Segment Income

$

309,894

   

$

282,658

   

$

287,252

   

$

(204,073)

     
                   

Research and Development

               

109,047

 

Selling, General, and Administrative

               

187,060

 

Non-GAAP adjustments unassigned to a segment

               

1,412

 

Non-GAAP Total Adjusted Operating Expenses

               

1,359,369

 

Non-GAAP Adjusted Operating Income

               

$

378,212

 
                   

(Unaudited, In Thousands)

Year Ended June 30, 2020

 

Core

 

Payments

 

Complementary

 

Corporate
and Other

 

Total

Revenue

$

561,369

   

$

597,693

   

$

484,146

   

$

53,859

   

$

1,697,067

 

Deconversion fees

(25,536)

   

(15,411)

   

(12,536)

   

(431)

   

(53,914)

 

Divestiture

(3,574)

   

   

   

   

(3,574)

 

Non-GAAP Adjusted Revenue

532,259

   

582,282

   

471,610

   

53,428

   

1,639,579

 
                   

Cost of Revenue

240,492

   

319,739

   

203,963

   

244,270

   

1,008,464

 

Non-GAAP adjustments

(4,516)

   

(381)

   

(1,262)

   

(47)

   

(6,206)

 

Non-GAAP Adjusted Cost of Revenue

235,976

   

319,358

   

202,701

   

244,223

   

1,002,258

 

Non- GAAP Adjusted Segment Income

$

296,283

   

$

262,924

   

$

268,909

   

$

(190,795)

     
                   

Research and Development

               

109,988

 

Selling, General, and Administrative

               

197,988

 

Non-GAAP adjustments unassigned to a segment

               

(6,306)

 

Non-GAAP Total Adjusted Operating Expenses

               

1,303,928

 

Non-GAAP Adjusted Operating Income

               

$

335,651

 

The table below shows our GAAP to non-GAAP guidance for fiscal year ended June 30, 2022. Non-GAAP guidance excludes the impacts of deconversion fee and acquisition and divestiture revenue.

 

GAAP to Non-GAAP GUIDANCE (In
Millions, except per share data)

 

Annual FY22

     

Low

 

High

 

REVENUE

       
 

GAAP

 

$

1,902

   

$

1,911

 
 

Growth

 

8.2

%

 

8.7

%

 

Deconversion Fee and Acquisition
and Divestiture Revenue

 

36

   

36

 
 

Non-GAAP Adjusted

 

$

1,866

   

$

1,875

 
 

Non-GAAP Adjusted Growth*

 

7.5

%

 

8.0

%

 

EPS

       
 

GAAP

 

$

4.53

   

$

4.60

 
 

Growth

 

10.0

%

 

11.8

%

 

*The growth percentages for revenue using non-GAAP numbers for fiscal 2021 are further adjusted by $1.182 to remove revenue associated with the divestiture of the Cruise line of business.

Balance Sheet and Cash Flow Review

  • At June 30, 2021, cash and cash equivalents decreased to $51.0 million from $213.3 million at June 30, 2020.*
  • Trade receivables totaled $306.6 million at June 30, 2021 compared to $300.9 million at June 30, 2020.
  • The Company had $100 million of borrowings at June 30, 2021 and zero at June 30, 2020.*
  • Total deferred revenue increased to $395.6 million at June 30, 2021, compared to $389.6 million a year ago.
  • Stockholders' equity decreased to $1,319.3 million at June 30, 2021, compared to $1,549.7 million a year ago.

* The changes in cash and cash equivalents and borrowings, year over year, were primarily due to the Company's repurchases of common stock in fiscal 2021 to be held in treasury (see net cash from financing activities below).

The following table summarizes net cash from operating activities:

(Unaudited, In Thousands)

Year Ended June 30,

 

2021

 

2020

Net income

$

311,469

   

$

296,668

 

Depreciation

52,515

   

52,206

 

Amortization

123,233

   

119,599

 

Change in deferred income taxes

16,760

   

24,581

 

Other non-cash expenses

18,758

   

21,618

 

Change in receivables

(6,112)

   

10,540

 

Change in deferred revenue

6,541

   

(4,871)

 

Change in other assets and liabilities

(61,035)

   

(9,809)

 

Net cash provided by operating activities

$

462,129

   

$

510,532

 

The following table summarizes net cash from investing activities:

(Unaudited, In Thousands)

Year Ended June 30,

 

2021

 

2020

Payment for acquisitions, net of cash acquired*

$

(2,300)

   

$

(30,376)

 

Capital expenditures

(22,988)

   

(53,538)

 

Proceeds from dispositions

6,187

   

11,130

 

Purchased software

(6,506)

   

(6,710)

 

Computer software developed

(128,343)

   

(117,262)

 

Purchase of investments

(13,300)

   

(1,150)

 

Proceeds from investments

5,000

   

 

Net cash from investing activities

$

(162,250)

   

$

(197,906)

 
 

*On July 1, 2019, the Company acquired all of the equity interest of DebtFolio, Inc. ("Geezeo") for $30,376, net of cash acquired. Geezeo is a Boston-based provider of retail and business digital financial management solutions.

The following table summarizes net cash from financing activities:

(Unaudited, In Thousands)

Year Ended June 30,

 

2021

 

2020

Borrowings on credit facilities

$

200,000

   

$

55,000

 

Repayments on credit facilities and financing leases

(100,114)

   

(55,033)

 

Purchase of treasury stock*

(431,529)

   

(71,549)

 

Dividends paid

(133,800)

   

(127,421)

 

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

3,211

   

6,094

 

Net cash from financing activities

$

(462,232)

   

$

(192,909)

 
 

*For the year ended June 30, 2021, the Company repurchased common stock and transferred to its treasury 2,800 shares compared to the year ended June 30, 2020, when the Company repurchased common stock and transferred to its treasury 485 shares.

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP include the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements.  In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, and adjusted operating expenses.

We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business.  The non-GAAP financial measures presented eliminate one-time deconversion fees and acquisitions, divestitures, and gain/loss, all of which management believes are not indicative of the Company's operating performance. Such adjustments give investors further insight into our performance. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company's performance.

Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Reconciliations of the non-GAAP financial measures to related GAAP measures are included.

COVID-19 Impact and Response

Since its outbreak in early 2020, COVID-19 has rapidly spread and continues to represent a public health concern. The health, safety, and well-being of our employees and customers is of paramount importance to us. In March 2020, we established an internal task force composed of executive officers and other members of management to frequently assess updates to the COVID-19 situation and recommend Company actions. We offered remote working as a recommended option to employees whose job duties allowed them to work off-site and we suspended all non-essential business travel. This company-wide recommendation extended until July 1, 2021, at which point we began transition to a return to our facilities and normalization of travel activities. Individual decisions on returning to the office were manager-coordinated and based on conversations with specific teams and departments.  A large number of our employees requested to remain fully remote or participate in a hybrid approach where they would split their time between remote and in-person working. We have not required employees who return to our facilities to receive vaccinations, but we have provided information on vaccine providers, as well as hosted on-site COVID-19 vaccination clinics at several of our facilities for our employees and their families. On August 3, 2021, we reimplemented our company-wide recommendation for remote work and are encouraging a cautious approach to business travel based on the spread of the Delta variant and increased infection rates. For those employees who are at our facilities, we have introduced enhanced sanitation procedures and we require face masks for both vaccinated and unvaccinated employees. As of August 13, 2021, the majority of our employees were continuing to work remotely either full time or in a hybrid capacity.

Customers

We work closely with our customers who are scheduled for on-site visits to ensure their needs are met while taking necessary safety precautions when our employees are required to be at a customer site. Delays of customer system installations due to COVID-19 have been limited, and we have developed processes to handle remote installations when available. We expect these processes to provide flexibility and value both during and after the COVID-19 pandemic. Even though a substantial portion of our workforce has worked remotely during the outbreak and business travel has been curtailed, we have not yet experienced significant disruption to our operations. We believe our technological capabilities are well positioned to allow our employees to work remotely without materially impacting our business.

Financial impact

Despite the changes and restrictions caused by COVID-19, the overall financial and operational impact on our business has been limited and our liquidity, balance sheet, and business trends remain strong. We experienced positive operating cash flows during fiscal 2021, and we do not expect that to change in the near term. However, we are unable to accurately predict the future impact of COVID-19 due to a number of uncertainties, including further government actions; the duration, severity and recurrence of the outbreak, including the onset of variants of the virus; the speed and effectiveness of vaccine and treatment developments; the speed of economic recovery; the potential impact to our customers, vendors, and employees; and how the potential impact might affect future customer services, processing and installation-related revenue, and processes and efficiencies within the Company directly or indirectly impacting financial results. We will continue to monitor COVID-19 and its possible impact on the Company and to take steps necessary to protect the health and safety of our employees and customers.

Quarterly Conference Call

The Company will hold a conference call on August 18, 2021; at 7:45 a.m. Central Time and investors are invited to listen at www.jackhenry.com.

About Jack Henry & Associates, Inc.®

Jack Henry (NASDAQ: JKHY) is a leading provider of technology solutions primarily for the financial services industry. We are an S&P 500 company that serves approximately 8,400 clients nationwide through three divisions: Jack Henry Banking® supports banks ranging from community banks to multi-billion-dollar institutions; Symitar® provides industry-leading solutions to credit unions of all sizes; and ProfitStars® offers highly specialized solutions to financial institutions of every asset size, as well as diverse corporate entities outside of the financial services industry. With a heritage that has been dedicated to openness, partnership, and user centricity for more than 40 years, we are well-positioned as a driving market force in future-ready digital solutions and payment processing services. We empower our clients and consumers with the human-centered, tech-forward, and insights-driven solutions that will get them where they want to go. Are you future ready? Additional information is available at www.jackhenry.com.

Statements made in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.  Such risks and uncertainties include, but are not limited to, those discussed in the Company's Securities and Exchange Commission filings, including the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Any forward-looking statement made in this news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.

Condensed Consolidated Statements of Income (Unaudited)

                     

(In Thousands, except per share data)

Three Months Ended June 30,

 

%
Change

 

Year Ended June 30,

 

%
Change

 

2021

 

2020

     

2021

 

2020

   
                       

REVENUE

$

450,287

   

$

410,537

   

10

%

 

$

1,758,225

   

$

1,697,067

   

4

%

                       

EXPENSES

                     

Cost of Revenue

274,918

   

254,835

   

8

%

 

1,063,399

   

1,008,464

   

5

%

Research and Development

28,814

   

29,902

   

(4)

%

 

109,047

   

109,988

   

(1)

%

Selling, General, and Administrative

50,259

   

49,002

   

3

%

 

187,060

   

197,988

   

(6)

%

Total Expenses

353,991

   

333,739

   

6

%

 

1,359,506

   

1,316,440

   

3

%

                       

OPERATING INCOME

96,296

   

76,798

   

25

%

 

398,719

   

380,627

   

5

%

                       

INTEREST INCOME (EXPENSE)

                     

Interest income

6

   

86

   

(93)

%

 

150

   

1,137

   

(87)

%

Interest expense

(619)

   

(211)

   

193

%

 

(1,144)

   

(688)

   

66

%

Total

(613)

   

(125)

   

390

%

 

(994)

   

449

   

(321)

%

                       

INCOME BEFORE INCOME TAXES

95,683

   

76,673

   

25

%

 

397,725

   

381,076

   

4

%

                       

PROVISION FOR INCOME TAXES

18,821

   

15,328

   

23

%

 

86,256

   

84,408

   

2

%

                       

NET INCOME

$

76,862

   

$

61,345

   

25

%

 

$

311,469

   

$

296,668

   

5

%

                       

Diluted net income per share

$

1.04

   

$

0.80

       

$

4.12

   

$

3.86

     

Diluted weighted average shares outstanding

74,211

   

76,849

       

75,658

   

76,934

     
                       

Consolidated Balance Sheet Highlights (Unaudited)

                   

(In Thousands)

           

June 30,

 

% Change

             

2021

 

2020

   

Cash and cash equivalents

           

$

50,992

   

$

213,345

   

(76)

%

Receivables

           

306,564

   

300,945

   

2

%

Total assets

           

2,336,156

   

2,428,474

   

(4)

%

                       

Accounts payable and accrued expenses

           

$

201,002

   

$

176,569

   

14

%

Current and long-term debt

           

100,193

   

323

   

30,920

%

Deferred revenue

           

395,600

   

389,622

   

2

%

Stockholders' equity

           

1,319,292

   

1,549,688

   

(15)

%

 

Cision View original content:https://www.prnewswire.com/news-releases/jack-henry--associates-inc-reports-fiscal-2021-results-301357274.html

SOURCE Jack Henry & Associates, Inc.

Kevin D. Williams, Chief Financial Officer, (417) 235-6652, Media Contact: Heather Sugg, APR, Senior Vice President, William Mills & Associates, 954-854-6203, Heather@williammills.com, Analyst Contact: Vance Sherard, CFA Investor Relations, Jack Henry & Associates, Inc. 417-235-6652, VSherard@jackhenry.com