[Monett Times] Partly Cloudy ~ 61°F  
High: 64°F ~ Low: 41°F
Sunday, May 1, 2016

Record quarter for Jack Henry and Associates

Friday, November 4, 2011

Monett-based Jack Henry & Associates (JHA) reported revenues rose by 6 percent in the first quarter of its new fiscal year.

A leading provider of technology solutions and payment processing services primarily for the financial services industry, JHA saw gross profits increase 8 percent and net income rise 15 percent compared to the prior fiscal year.

For the quarter ended Sept. 30, the company generated total revenue of $248.3 million, up $13.5 million from the same quarter a year ago. Net income in the current year was $36.5 million, or $.42 per diluted share, compared to $.37 per diluted share in the same quarter a year ago.

"Our strong performance in the quarter reflects a gradually improving financial institution spending environment and continued strong focus and execution by our associates," said Jack Prim, JHA chief executive officer. "We had solid organic growth and good leverage to both operating and net income. As economic conditions continue to improve, we are well positioned to meet our customers' needs with products and services that can help them improve efficiency and reduce costs."

According to Tony Wormington, JHA president, the numbers reflected record first quarter revenue, as well as record gross profit and net income, for any first quarter period. It was the second quarter in a row for records, following the second highest quarter ever to end the 2010-11 year.

"The largest contributor continues to be our support and services line of revenue, which represents 89 percent of our total revenue," Wormington said. "Within this line, we continue to see strong growth in our payments business with approximately 12 percent growth compared to the same quarter a year ago. Overall, our support and services grew 5 percent compared to a year ago."

License revenue for the first quarter increased 5 percent for the quarter. Electronic payment services, which include ATM/debit/credit card transaction processing, bill payment, remote deposit capture and ACH transaction processing services, had the largest percentage growth of 12 percent. Hardware sales in the first quarter of fiscal 2012 increased 7 percent.

Company expenses also rose. The cost of sales for the first quarter increased 4 percent, up $6.1 million. Operating expenses increased 5 percent compared to the same quarter a year ago primarily due to increased commission expenses and depreciation. Selling and marketing expenses increased 15 percent.

"The reported results for our first fiscal quarter were in line with our internal budgets," said Kevin Williams, JHA chief financial officer. "We were able to expand our margins slightly ahead of plan as our managers and associates

continue to do a great job focusing on driving revenue growth, while at the same time focusing on efficiencies and controlling costs."

Williams said JHA repaid debt on company credit facilities last fiscal year, thus reducing interest expense significantly compared to the same quarter last year.

"Currently we have approximately $108 million in cash, and the availability of our entire revolver facility to fund future acquisitions or other corporate initiatives," Williams said.

Stockholders' equity increased 17 percent, up $132 million, compared to a year ago. Backlog of orders, reflecting ongoing business activity, increased 10 percent. Cash provided by operations totaled $78.5 million in the current year, up $3.1 million from last year.

Products and service provided by JHA serve more than 11,300 customers nationwide, and are marketed and supported through four primary brands. More information is available at www.jackhenry.com.

Respond to this story

Posting a comment requires free registration:

© 2016 Monett Times, a division of Rust Publishing MOARCASS, L.L.C. All rights reserved.