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jkhy-20210817
HENRY JACK & ASSOCIATES INC00007791522021FYfalse00007791522021-08-172021-08-17

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): August 17, 2021
JACK HENRY & ASSOCIATES, INC.
(Exact name of Registrant as specified in its Charter)
Delaware0-1411243-1128385
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

663 Highway 60, P.O. Box 807, Monett, MO 65708
(Address of Principle Executive Offices) (Zip Code)

417-235-6652
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a.-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
Title of each classTicker symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueJKHYNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02
Results of Operations and Financial Condition.
On August 17, 2021, Jack Henry & Associates, Inc. issued a press release announcing fiscal 2021 fourth quarter and fiscal year results, the text of which is attached hereto as Exhibit 99.1.
The initial press release inadvertently omitted amounts from the Proceeds from Dispositions line in the Investing Activities table as part of the Cash Flow Review, which have been corrected in the press release attached hereto.

Item 9.01
Financial Statements and Exhibits.
(d)    Exhibits    
    99.1 Press release dated August 17, 2021



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.
JACK HENRY & ASSOCIATES, INC.
(Registrant)
Date:August 17, 2021/s/ Kevin D. Williams
Kevin D. Williams
Chief Financial Officer and Treasurer
Document

Jack Henry & Associates, Inc.Kevin D. Williams
Press ReleaseChief Financial Officer
(417) 235-6652
FOR IMMEDIATE RELEASE

Jack Henry & Associates, Inc. Reports Fiscal 2021 Results

•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        

Monett, MO, August 17, 2021 - 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,		% ChangeYear Ended
June 30,		% Change
2021202020212020
Revenue
Services and Support$261,697 $247,235 6 %$1,048,206 $1,051,451 — %
Percentage of Total Revenue58 %60 %60 %62 %
Processing188,590 163,302 15 %710,019 645,616 10 %
Percentage of Total Revenue42 %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.
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JKHY Reports Fiscal 2021 Results
August 17, 2021


•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,		% ChangeYear Ended
June 30,		% Change
2021202020212020
Cost of Revenue$274,918 $254,835 8 %$1,063,399 $1,008,464 5 %
Percentage of Total Revenue61 %62 %60 %59 %
Research and Development28,814 29,902 (4)%109,047 109,988 (1 %)
Percentage of Total Revenue6 %7 %6 %6 %
Selling, General, and Administrative50,259 49,002 3 %187,060 197,988 (6)%
Percentage of Total Revenue11 %12 %11 %12 %
Total Operating Expenses353,991 333,739 6 %1,359,506 1,316,440 3 %
Operating Income$96,296 $76,798 25 %$398,719 $380,627 5 %
Operating Margin21 %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,		% ChangeYear Ended
June 30,		% Change
2021202020212020
Income Before Income Taxes$95,683 $76,673 25 %$397,725 $381,076 4 %
Provision for Income Taxes18,821 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.
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JKHY Reports Fiscal 2021 Results
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•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,% ChangeYear Ended June 30,% Change
2021202020212020
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/loss209 1,348 (1,786)3,909 
Non-GAAP Adjusted Operating Income$88,889 $71,221 25 %$378,212 $335,651 13 %


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JKHY Reports Fiscal 2021 Results
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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
CorePaymentsComplementaryCorporate and OtherTotal
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 Revenue137,681 167,699 125,537 11,130 442,047 
Cost of Revenue61,616 93,170 53,990 66,142 274,918 
Non-GAAP adjustments(129)(107)(280)(3)(519)
Non-GAAP Adjusted Cost of Revenue61,487 93,063 53,710 66,139 274,399 
Non- GAAP Adjusted Segment Income$76,194 $74,636 $71,827 $(55,009)
Research and Development28,814 
Selling, General, and Administrative50,259 
Non-GAAP adjustments unassigned to a segment(314)
Non-GAAP Total Adjusted Operating Expenses353,158 
Non-GAAP Adjusted Operating Income$88,889 
(Unaudited, In Thousands)Three Months Ended June 30, 2020
CorePaymentsComplementaryCorporate and OtherTotal
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 Revenue129,975 143,609 117,837 9,420 400,841 
Cost of Revenue58,794 83,013 51,588 61,440 254,835 
Non-GAAP adjustments(1,618)(147)(387)(7)(2,159)
Non-GAAP Adjusted Cost of Revenue57,176 82,866 51,201 61,433 252,676 
Non- GAAP Adjusted Segment Income$72,799 $60,743 $66,636 $(52,013)
Research and Development29,902 
Selling, General, and Administrative49,002 
Non-GAAP adjustments unassigned to a segment(1,960)
Non-GAAP Total Adjusted Operating Expenses329,620 
Non-GAAP Adjusted Operating Income$71,221 
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JKHY Reports Fiscal 2021 Results
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(Unaudited, In Thousands)Year Ended June 30, 2021
CorePaymentsComplementaryCorporate and OtherTotal
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 Revenue556,638 636,023 499,141 45,779 1,737,581 
Cost of Revenue247,285 353,581 212,627 249,906 1,063,399 
Non-GAAP adjustments(541)(216)(738)(54)(1,549)
Non-GAAP Adjusted Cost of Revenue246,744 353,365 211,889 249,852 1,061,850 
Non-GAAP Adjusted Segment Income$309,894 $282,658 $287,252 $(204,073)
Research and Development109,047 
Selling, General, and Administrative187,060 
Non-GAAP adjustments unassigned to a segment1,412 
Non-GAAP Total Adjusted Operating Expenses1,359,369 
Non-GAAP Adjusted Operating Income$378,212 
(Unaudited, In Thousands)Year Ended June 30, 2020
CorePaymentsComplementaryCorporate and OtherTotal
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 Revenue532,259 582,282 471,610 53,428 1,639,579 
Cost of Revenue240,492 319,739 203,963 244,270 1,008,464 
Non-GAAP adjustments(4,516)(381)(1,262)(47)(6,206)
Non-GAAP Adjusted Cost of Revenue235,976 319,358 202,701 244,223 1,002,258 
Non- GAAP Adjusted Segment Income$296,283 $262,924 $268,909 $(190,795)
Research and Development109,988 
Selling, General, and Administrative197,988 
Non-GAAP adjustments unassigned to a segment(6,306)
Non-GAAP Total Adjusted Operating Expenses1,303,928 
Non-GAAP Adjusted Operating Income$335,651 


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JKHY Reports Fiscal 2021 Results
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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
LowHigh
REVENUE
GAAP$1,902 $1,911 
Growth8.2 %8.7 %
Deconversion Fee and Acquisition and Divestiture Revenue36 36 
Non-GAAP Adjusted$1,866 $1,875 
Non-GAAP Adjusted Growth*
7.5 %8.0 %
EPS
GAAP$4.53 $4.60 
Growth10.0 %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,
20212020
Net income$311,469 $296,668 
Depreciation52,515 52,206 
Amortization123,233 119,599 
Change in deferred income taxes16,760 24,581 
Other non-cash expenses18,758 21,618 
Change in receivables(6,112)10,540 
Change in deferred revenue6,541 (4,871)
Change in other assets and liabilities(61,035)(9,809)
Net cash provided by operating activities$462,129 $510,532 

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The following table summarizes net cash from investing activities:
(Unaudited, In Thousands)Year Ended June 30,
20212020
Payment for acquisitions, net of cash acquired*$(2,300)$(30,376)
Capital expenditures(22,988)(53,538)
Proceeds from dispositions6,187 11,130 
Purchased software(6,506)(6,710)
Computer software developed(128,343)(117,262)
Purchase of investments(13,300)(1,150)
Proceeds from investments5,000 — 
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,
20212020
Borrowings on credit facilities$200,000 $55,000 
Repayments on credit facilities and financing leases(100,114)(55,033)
Purchase of treasury stock*(431,529)(71,549)
Dividends paid(133,800)(127,421)
Net cash from issuance of stock and tax related to stock-based compensation3,211 6,094 
Net cash from financing activities$(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
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JKHY Reports Fiscal 2021 Results
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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.
For More Information:
Media Contact:Analyst Contact:
Heather Sugg, APRVance Sherard, CFA
Senior Vice President Investor Relations
William Mills & Associates Jack Henry & Associates, Inc.
954-854-6203417-235-6652
Heather@williammills.com VSherard@jackhenry.com
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JKHY Reports Fiscal 2021 Results
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Condensed Consolidated Statements of Income (Unaudited)
(In Thousands, except per share data)Three Months Ended June 30,% ChangeYear Ended June 30,% Change
2021202020212020
REVENUE$450,287 $410,537 10 %$1,758,225 $1,697,067 4 %
EXPENSES    
Cost of Revenue274,918 254,835 8 %1,063,399 1,008,464 5 %
Research and Development28,814 29,902 (4)%109,047 109,988 (1)%
Selling, General, and Administrative50,259 49,002 3 %187,060 197,988 (6)%
Total Expenses353,991 333,739 6 %1,359,506 1,316,440 3 %
OPERATING INCOME96,296 76,798 25 %398,719 380,627 5 %
INTEREST INCOME (EXPENSE)    
Interest income6 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 TAXES95,683 76,673 25 %397,725 381,076 4 %
PROVISION FOR INCOME TAXES18,821 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 outstanding74,211 76,849 75,658 76,934 
Consolidated Balance Sheet Highlights (Unaudited)
(In Thousands)June 30,% Change
20212020
Cash and cash equivalents$50,992 $213,345 (76)%
Receivables306,564 300,945 2 %
Total assets2,336,156 2,428,474 (4)%
Accounts payable and accrued expenses$201,002 $176,569 14 %
Current and long-term debt100,193 323 30,920 %
Deferred revenue395,600 389,622 2 %
Stockholders' equity1,319,292 1,549,688 (15)%
Page 9