UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 21, 2000
JACK HENRY & ASSOCIATES, INC.
(Exact name of Registrant as specified in its Charter)
Delaware 0-14112 43-1128385
(State or other jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
663 Highway 60, P.O. Box 807, Monett, MO 65708
(Address of principal executive offices)(zip code)
Registrant's telephone number, including area code: (417) 235-6652
ITEM 5. OTHER EVENTS.
On July 21, 2000, Jack Henry & Associates, Inc. ("Jack Henry") issued a
press release (a copy of which is attached to this report) announcing its
earnings and results of operations for its fourth fiscal quarter and
for its fiscal year ended June 30, 2000.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
99.1 Press release dated July 21, 2000 with fourth fiscal quarter
and fiscal year ended June 30, 2000 results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 21, 2000 JACK HENRY & ASSOCIATES, INC.
(Registrant)
By: /s/ Terry W. Thompson
Terry W. Thompson
Chief Financial Officer
Exhibit 99.1
COMPANY:JACK HENRY & ASSOCIATES, INC. ANALYST CONTACT: Terry W. Thompson
663 Highway 60, P.O. Box 807 Chief Financial Officer
Monett, MO 65708 (417) 235-6652
IR CONTACT: Becky Pendleton Reid
Len Cereghino & Co.
(206) 448-1996
FOR IMMEDIATE RELEASE
JACK HENRY & ASSOCIATES POSTS RECORD REVENUES,
EARNINGS AND EARNINGS PER SHARE IN FISCAL 2000
4Q00 REVENUES INCREASE 54% AND PROFITS RISE 41%
Monett, MO, July 21, 2000 -- Jack Henry & Associates, Inc.
(Nasdaq: JKHY) today reported record fiscal 2000 results capped
by a strong fourth quarter. This represents the 11th
consecutive year of record revenues, earnings and earnings per
share. These results reflect the continuing strong demand from
financial institutions nationwide for banking technology and
e-finance solutions. Fourth quarter revenues increased 54% to
$69.4 million with revenues from software licensing and
installation almost doubling, generating a 41% increase in
earnings of $11.4 million or $.26 per diluted share.
For the fiscal year ended June 30, 2000, total revenues
increased 16% to $225.3 million compared to $193.5 million in
fiscal 1999. Income from continuing operations increased 5% to
$34.4 million, or $.81 per diluted share, compared to $32.7
million, or $.77 per diluted share, in fiscal 1999. All prior
periods have been restated to reflect the 2-for-1 split
effective March 2, 2000 and the acquisition of Sys-Tech, Inc.
which was accounted for as a pooling of interests and closed
June 1, 2000, as of the beginning of the earliest period presented.
"The revenue and earnings growth during the second half of this
fiscal year reflects the demand for technology that built
during the Y2K moratorium last year. This is further
demonstrated by the 97% increase in fourth quarter software
licensing and installation revenues," said Michael E. Henry,
Chairman and CEO.
Software licensing and installation revenues in the fourth
quarter increased to $21.8 million and accounted for 31% of
total revenues compared to $11.1 million or 25% of fourth
quarter 1999 revenues. In fiscal 2000, software licensing and
installation grew 22% to $57.7 million or 26% of total revenues
compared to $47.2 million or 24% of fiscal 1999 revenues.
Fourth quarter maintenance, support and services revenues
increased 52% to $27.7 million and hardware sales increased 27%
to $19.9 million. In fiscal 2000, maintenance, support and
services revenues increased 37% to $97.5 million and hardware
sales decreased 7% to $70.1 million.
Backlog was $104.4 million at June 30, 2000 compared to $91.2
million, at March 31, 2000, and $86.6 million at June 30, 1999.
The backlog for in-house products and services totaled $43.0
million at year end compared to $27.9 million a year ago.
Outsourcing backlog was $61.4 million compared to $58.7 million
a year ago.
"Software licensing and installation is our most profitable
revenue component, and consequently, its revenue growth helped
boost gross margin to 48% in the fourth quarter, up from 46% in
the fourth quarter a year ago," said Terry Thompson, CFO.
Conversely, full year gross margin was 44%, down from 45% in the
comparable period of fiscal 1999 due to Y2K and the mix of
revenues. Fourth quarter gross profit grew 58% to $33.0 million
compared to $20.9 million in the fourth quarter of fiscal 1999.
Fiscal 2000 gross profit was up 14% to $98.1 million compared to
$86.3 million a year ago.
"We continued to build our business capabilities and customer
base through strategic acquisitions during the year. In fiscal
2000, we completed four acquisitions including the Open Systems
Group, with over 800 customers and UNIX-based technology,
BancData Solutions providing a strong outsourcing base on the
West Coast, Symitar Systems strengthening our credit union
operations, and Sys-Tech adding expertise in uninterruptible
power supply systems and the design and maintenance of computer
facilities," Henry noted. "These acquisitions contributed to
earnings in the fiscal year."
(more)
Operating expenses for the fourth quarter increased to $15.1
million or 22% of revenues and for fiscal 2000 to $47.1 million
or 21% of revenues, reflecting increasing costs of operating,
including some arising from acquisitions this year. "Selling
and marketing expenses increased the most during the year,
growing 36% to $19 million. We continue to devote 3% to 4% of
revenues to research and development. General and
administrative expenses grew more slowly than revenues,
increasing 38% in the quarter and 16% for the year," said
Michael R. Wallace, President and COO.
"The fourth quarter marked the first customer rollout of our new
Internet portal, NetHarbor(TM)," Wallace continued. The new
product allows banks to launch websites that offer customer
convenience and provide a new revenue source for both financial
institutions and for JKHY. NetHarbor allows the bank's clients
to customize their bank-branded home page content to meet their
daily internet needs with real time online banking transactions;
account information and services plus news, local weather
forecasts, stock quotes, community affairs, favorite internet
links, and e-shopping. We expect to add integrated online
brokerage to NetHarbor's service offerings before calendar year
end.
Fourth quarter operating income was $17.8 million compared to
$12.2 million in last year's fourth quarter. Fiscal 2000
operating income was $51.0 million compared to $49.7 million in
fiscal 1999. Pre-tax income in both the quarter and the year
reflect the lower interest income and higher interest expense
resulting from the year's acquisition activities. Fourth
quarter pre-tax income totaled $17.4 million compared to $12.4
million and fiscal 2000 pre-tax income was $51.8 compared to
$51.6 million a year ago.
At June 30, 2000, the balance sheet reflected strong growth
during the year with assets growing 83% to $325 million and
stockholders' equity up 33% to $154.5 million. Long-term and
short-term debt totaled $71 million at year-end. On July 14th,
the company filed a registration statement with the Securities
and Exchange Commission for a proposed offering of five million
shares of its common stock comprised of two million shares
offered by the Company and three million shares offered by
selling stockholders. The Company intends to use its net
proceeds from the offering for repayment of debt, working
capital, capital expenditures and other general corporate
purposes, including potential acquisitions.
Jack Henry & Associates, Inc. provides integrated computer
systems and ATM networking products for banks and credit unions.
Jack Henry markets and supports its systems throughout the
United States and has over 2,850 customers nationwide. For
additional information on Jack Henry, visit the company's web
site 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 its registration statement filing of July 14, 2000. These
statements should be reviewed by potential investors. 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 FINANCIAL INFORMATION
(Unaudited) (In Thousands, Except Per Share Data)
CONDENSED STATEMENT OF INCOME Quarter Ended Year Ended
June 30, June 30,
Revenues: 2000 1999* 2000 1999*
Software licensing & installation $21,800 $11,073 $ 57,688 $ 47,181
Maintenance/support & service 27,706 18,283 97,519 71,278
Hardware sales 19,863 15,616 70,093 75,068
Total revenues $69,369 $44,972 $ 225,300 $193,527
Cost of sales:
Cost of hardware 15,124 11,311 51,045 54,661
Cost of services 21,275 12,790 76,139 52,582
Total cost of sales $36,399 $24,101 $ 127,184 $107,243
Gross profit $32,970 $20,871 $ 98,116 $ 86,284
48% 46% 44% 45%
Operating expenses:
Selling and marketing 6,502 2,646 19,015 14,030
Research and development 2,243 1,425 8,022 5,183
General and administrative 6,376 4,618 20,069 17,347
Total operating expenses $15,121 $ 8,689 $ 47,106 $ 36,560
Operating income $17,849 $12,182 $ 51,010 $ 49,724
Other income:
Interest income 125 189 863 1,619
Interest expense (767) (21) (1,910) (93)
Other, net 174 17 1,802 363
Total other income $ (468) $ 185 $ 755 $ 1,889
Income before income taxes $17,381 $12,367 $ 51,765 $ 51,613
Provision for income taxes 5,947 4,265 17,415 18,887
Income from continuing operations $ 11,434 $ 8,102 $ 34,350 $ 32,726
(Loss) income from discontinued operations - - (332) (758)
Net income $ 11,434 $ 8,102 $ 34,018 $ 31,968
Diluted earnings per share:
Income from continuing operations $ .26 $ .19 $ .81 $ .77
Loss from discontinued operations - - (.01) (.02)
Net income $ .26 $ .19 $ .80 $ .75
Diluted weighted average shares outstanding 43,524 42,576 42,639 42,641
Basic earnings per share:
Income from continuing operations $ .28 $ .20 $ .84 $ .81
Loss from discontinued operations - - (.01) (.02)
Net income $ .28 $ .20 $ .83 $ .79
Basic weighted average shares outstanding 41,217 40,598 40,883 40,337
CONDENSED BALANCE SHEETS June 30,
2000 1999
Current assets $115,959 $ 81,776
Property and equipment, net 93,285 66,192
Intangible assets, net 115,095 28,196
Other assets, net 758 1,096
Total assets $325,097 $177,260
Accounts payable and accrued expenses $ 19,005 $ 14,001
Short-term borrowings 70,500 -
Deferred revenue 75,472 44,664
Long-term debt 443 211
Deferred income taxes 5,132 2,586
Stockholders' equity 154,545 115,798
Total liabilities and stockholders' equity $325,097 $177,260
* Restated to reflect the Sys-Tech acquisition
