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Wednesday, May 4, 2016

Jack Henry ends year with income gains

Wednesday, August 18, 2010

(Photo)
Entrance to Jack Henry and Associates in Monett
Monett-based Jack Henry and Associates (JHA) has announced profits for the company's 2009-10 fiscal year. Net income rose 14 percent compared to the prior fiscal year. Total revenue rose by 12 percent to $836.6 million.

For the quarter ended June 30, the company generated total revenue of $227.8 million compared to $191.9 million in the same quarter a year ago. Gross profit increased to $95.1 million compared to $79.3 million in the fourth quarter of last fiscal year.

"Our company has continued to prosper in a highly competitive and consolidating industry for 34 years through our constant focus on providing high quality products and services supported by superior levels of customer care," said Tony Wormington, JHA president. "We ended fiscal 2010 with record levels of revenue, gross profit and net income. "We are entering our fiscal 2011 with a strong balance sheet, growing recurring revenue, an extremely focused strategy and a cautiously optimistic outlook for the new fiscal year," Wormington said. "We will continue to focus both on growth-oriented business opportunities as well as

continuing to maintain cost control initiatives."

In fiscal 2010, total revenue was $836.6 million, compared to $745.6 million in fiscal 2009. Gross profit increased to $345.1 million, up from $299.4 million during last fiscal year. Net income for the current year was $117.9 million, or $1.38 per diluted share, compared to $103.1 million, or $1.22 per diluted share for the prior year.

"This year saw us complete three acquisitions," said Jack Prim, JHA chief executive officer, "any one of which on its own would have represented one of the largest acquisitions in the company's history. The integration of these companies could hardly have gone better and is substantially complete, including the most recent acquisition of iPay less than 90 days ago.

"These acquisitions," Prim continued, "contributed significantly to our electronic payments revenues, which had total revenue of over $200 million in the fiscal year, and to our recurring revenue which is now 78 percent of the total revenue. We welcome the over 600 employees of these companies and the thousands of customers they serve to the JHA family."

There was growth in all of the support and service revenue components for the fourth quarter. The bank systems and services segment revenue increased 11 percent. The credit union systems and services segment revenue increased 58 percent.

For the year, support and service revenue represented 4 percent more of total revenues than the previous year. License revenue and hardware sales both decreased by 2 percent over the previous year. The bank systems and services segment revenue increased 9 percent.

"The net results of the quarter and the year were very much in-line with our expectations, both organically and including our projections for the three acquisitions during the year," said Kevin Williams, chief financial officer. "Considering that license revenue was down 29 percent for the fourth quarter and 11 percent for the entire fiscal year, our managers and associates did a stellar job of controlling costs, which is evidenced by the operating margins we produced. We also accomplished this while still maintaining superior levels of customer service."

Jack Henry and Associates is a leading provider of integrated computer systems for banks and credit unions. JHA markets and supports its systems throughout the United States and has more than 11,800 customers nationwide.



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