Revenue for the quarter ended
According to
Operating Results
Revenue, cost of sales, and gross profit results for the quarter and year ended
Revenue (Unaudited) |
|||||||||
(In Thousands) |
Three Months Ended |
% |
|||||||
2017 |
2016 |
||||||||
Revenue |
|||||||||
Services & Support |
$ |
224,295 |
$ |
217,490 |
3 |
% |
|||
Percentage of Total Revenue |
62 |
% |
63 |
% |
|||||
Processing |
135,639 |
127,538 |
6 |
% |
|||||
Percentage of Total Revenue |
38 |
% |
37 |
% |
|||||
Total Revenue |
359,934 |
345,028 |
4 |
% |
- Deconversion fees in the first quarter of fiscal 2018 decreased
$5.8 million compared to the first quarter of the prior year. Excluding deconversion fees from both periods, revenue increased 6%. - For the first quarter of fiscal 2018, core segment revenue increased 10% to
$128.9 million in the first quarter of fiscal 2018 from$116.9 million in the same period a year ago. Payments segment revenue increased 1% to$123.2 million , from$122.3 million in the same quarter last year. Revenue from the complementary segment increased 3% to$93.8 million in the first quarter of fiscal 2018 from$90.9 million in the same period of fiscal 2017. Revenue in the corporate and other segment decreased 5% to$14.1 million , compared to$14.9 million for the first quarter of fiscal 2017.
Operating Expenses and Operating Income
Operating income increased 1% to
(Unaudited, In Thousands) |
Three Months Ended |
% |
|||||||
2017 |
2016 |
||||||||
Cost of Revenue |
$ |
204,715 |
$ |
194,763 |
5 |
% |
|||
Percentage of Total Revenue |
57 |
% |
56 |
% |
|||||
Research and Development |
20,929 |
19,739 |
6 |
% |
|||||
Percentage of Total Revenue |
6 |
% |
6 |
% |
|||||
Selling, General, & Administrative |
43,733 |
39,109 |
12 |
% |
|||||
Percentage of Total Revenue |
12 |
% |
11 |
% |
|||||
Gain on disposal of a business |
(1,705) |
— |
— |
% |
|||||
Total Operating Expenses |
267,672 |
253,611 |
6 |
% |
|||||
Operating Income |
$ |
92,262 |
$ |
91,417 |
1 |
% |
|||
Operating Margin |
26 |
% |
26 |
% |
- Cost of revenue increased 5% for the first quarter of fiscal 2018 compared to the first quarter of fiscal 2017 due primarily to increased salaries and amortization of capitalized software.
- Research and development expense increased for the first quarter mainly due to increased salary and personnel costs, but these costs remained consistent with the prior year as a percentage of total revenue.
- Selling, general, and administrative expenses for the first quarter of fiscal 2018 increased 12% over the prior year due mainly to increased commission expense, salaries, and personnel costs
- In the first quarter of fiscal 2018, we sold our jhaDirect product line to
Kristopher James Company , resulting in a gain of$1.7 million .
Net Income
First quarter net income increased 2% to
(Unaudited, In Thousands, Except Per Share Data) |
Three Months Ended |
% |
|||||||
2017 |
2016 |
||||||||
Income Before Income Taxes |
$ |
92,220 |
$ |
91,383 |
1 |
% |
|||
Provision for Income Taxes |
28,809 |
29,139 |
(1) |
% |
|||||
Net Income |
$ |
63,411 |
$ |
62,244 |
2 |
% |
|||
Diluted earnings per share |
$ |
0.82 |
$ |
0.79 |
3 |
% |
- Provision for income taxes decreased in the first quarter, with an effective tax rate at 31.2% of income before income taxes, compared to 31.9% for the same quarter of the prior year.
Effects of Deconversion Fees
The table below shows our results for the first quarter excluding the impact of deconversion fees from each year.
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||
As Reported |
Early Term |
ProForma |
As Reported |
Early Term |
ProForma |
Change |
% |
|||||||||||||||||
Revenue |
$ |
359,934 |
$ |
7,263 |
$ |
352,671 |
$ |
345,028 |
$ |
13,052 |
$ |
331,976 |
$ |
20,695 |
6 |
% |
||||||||
Operating Income |
92,262 |
7,170 |
85,092 |
91,417 |
13,045 |
78,372 |
6,720 |
9 |
% |
|||||||||||||||
Income Before Income Taxes |
92,220 |
7,170 |
85,050 |
91,383 |
13,045 |
78,338 |
6,712 |
9 |
% |
|||||||||||||||
Provision for Income Taxes |
28,809 |
2,581 |
26,228 |
29,139 |
4,696 |
24,443 |
1,785 |
7 |
% |
|||||||||||||||
Net Income |
$ |
63,411 |
$ |
4,589 |
$ |
58,822 |
$ |
62,244 |
$ |
8,349 |
$ |
53,895 |
$ |
4,927 |
9 |
% |
||||||||
Diluted earnings per share |
$ |
0.82 |
$ |
0.06 |
$ |
0.76 |
$ |
0.79 |
$ |
0.11 |
$ |
0.68 |
$ |
0.08 |
12 |
% |
||||||||
Diluted weighted average shares outstanding |
77,646 |
77,646 |
77,646 |
78,844 |
78,844 |
78,844 |
According to
Balance Sheet and Cash Flow Review
- At
September 30, 2017 , cash and cash equivalents increased to$104.0 million from$84.5 million atSeptember 30, 2016 . - Trade receivables totaled
$172.5 million atSeptember 30, 2017 compared to$148.4 million atSeptember 30, 2016 . - The company had no debt at
September 30, 2017 orSeptember 30, 2016 . - Total deferred revenue decreased to
$439.6 million atSeptember 30, 2017 , compared to$469.9 million a year ago. - Stockholders' equity increased to
$1,037.8 million atSeptember 30, 2017 , compared to$972.6 million a year ago.
Cash provided by operations totaled
(Unaudited, In Thousands) |
Three Months Ended |
||||||
2017 |
2016 |
||||||
Net income |
$ |
63,411 |
$ |
62,244 |
|||
Depreciation |
12,419 |
12,390 |
|||||
Amortization |
23,856 |
21,746 |
|||||
Other non-cash expenses |
1,252 |
9,174 |
|||||
Change in receivables |
105,243 |
105,495 |
|||||
Change in deferred revenue |
(72,074) |
(51,186) |
|||||
Change in other assets and liabilities |
4,615 |
(26,492) |
|||||
Net cash provided by operating activities |
$ |
138,722 |
$ |
133,371 |
Cash used in investing activities for fiscal 2018 totaled
(Unaudited, In Thousands) |
Three Months Ended |
||||||
2017 |
2016 |
||||||
Payment for acquisitions, net of cash acquired |
$ |
(10,455) |
$ |
— |
|||
Capital expenditures |
(3,708) |
(8,113) |
|||||
Proceeds from the sale of businesses |
200 |
— |
|||||
Proceeds from the sale of assets |
106 |
777 |
|||||
Internal use software |
(3,452) |
(4,328) |
|||||
Computer software developed |
(22,976) |
(20,237) |
|||||
Net cash from investing activities |
$ |
(40,285) |
$ |
(31,901) |
- On
August 31, 2017 , the Company purchasedVanguard Software Group , aFlorida -based company specializing in the underwriting, spreading, and online decisioning of commercial loans.
Financing activities used cash of
(Unaudited, In Thousands) |
Three Months Ended |
||||||
2017 |
2016 |
||||||
Borrowings on credit facilities |
$ |
— |
$ |
— |
|||
Repayments on credit facilities |
(50,000) |
(200) |
|||||
Purchase of treasury stock |
(30,018) |
(61,338) |
|||||
Dividends paid |
(23,904) |
(21,857) |
|||||
Net cash from issuance of stock and tax related to stock-based compensation |
(5,240) |
(3,866) |
|||||
Net cash from financing activities |
$ |
(109,162) |
$ |
(87,261) |
Quarterly Conference Call
The company will hold a conference call on
About
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
Condensed Consolidated Statements of Income (Unaudited) |
||||||||||
(In Thousands, Except Per Share Data) |
Three Months Ended |
% |
||||||||
2017 |
2016 |
|||||||||
REVENUE |
359,934 |
345,028 |
4 |
% |
||||||
EXPENSES |
||||||||||
Cost of Revenue |
204,715 |
194,763 |
5 |
% |
||||||
Research & Development |
20,929 |
19,739 |
6 |
% |
||||||
Selling, General, & Administrative |
43,733 |
39,109 |
12 |
% |
||||||
Gain on disposal of businesses |
(1,705) |
— |
— |
% |
||||||
Total Expenses |
267,672 |
253,611 |
6 |
% |
||||||
OPERATING INCOME |
92,262 |
91,417 |
1 |
% |
||||||
INTEREST INCOME (EXPENSE) |
||||||||||
Interest income |
147 |
108 |
36 |
% |
||||||
Interest expense |
(189) |
(142) |
33 |
% |
||||||
Total |
(42) |
(34) |
24 |
% |
||||||
INCOME BEFORE INCOME TAXES |
92,220 |
91,383 |
1 |
% |
||||||
PROVISION FOR INCOME TAXES |
28,809 |
29,139 |
(1) |
% |
||||||
NET INCOME |
$ |
63,411 |
$ |
62,244 |
2 |
% |
||||
Diluted net income per share |
$ |
0.82 |
$ |
0.79 |
||||||
Diluted weighted average shares outstanding |
77,646 |
78,844 |
||||||||
Consolidated Balance Sheet Highlights (Unaudited) |
||||||||||
(In Thousands) |
|
% |
||||||||
2017 |
2016 |
|||||||||
Cash and cash equivalents |
$ |
104,040 |
$ |
84,519 |
23 |
% |
||||
Receivables |
172,515 |
148,428 |
16 |
% |
||||||
Total assets |
1,796,345 |
1,732,252 |
4 |
% |
||||||
Accounts payable and accrued expenses |
$ |
81,542 |
$ |
76,913 |
6 |
% |
||||
Deferred revenue |
439,565 |
469,868 |
(6) |
% |
||||||
Stockholders' equity |
1,037,813 |
972,589 |
7 |
% |
View original content:http://www.prnewswire.com/news-releases/jack-henry--associates-ends-first-quarter-fiscal-2018-with-4-increase-in-revenue-300551363.html
SOURCE
News Provided by Acquire Media