Jack Henry and Associates, Inc. (JHA) announced second quarter fiscal 2012 results with a 5 percent increase in revenue
Based in Monett, JHA, a leading provider of technology solutions and payment processing services primarily for the financial services industry, saw an increase of 4 percent in gross profit and a 7 percent increase in net income over the second quarter of fiscal 2011.
For the first six months of fiscal 2012, revenue increased 6 percent, with an increase of 6 percent in gross profit and an increase of 11 percent in net income compared to the previous year.
"This quarter represents continued solid execution on all fronts," said Jack Prim, chief executive officer for JHA. "We grew revenue, lowered operating expenses and improved customer satisfaction metrics. Although we still see some residual impacts from failed banks in previous periods, we are encouraged by the continued gradual improvement in the economic environment and improved spending trends in our customer base."
For the quarter ended Dec. 31, 2011, the company generated total revenue of $255.9 million, compared to $242.6 million in the same quarter a year ago. Gross profit increased to $107.4 million. Net income in the current year was $38.5 million, or $.44 per diluted share, compared to $36 million, or $.42 per diluted share, in the same quarter a year ago.
For the first half of fiscal 2012, total revenue of $504.2 million was generated, compared to $477.5 million in the first half of fiscal 2011. Gross profit increased to $211.8 million. Net income for the first half of fiscal 2012 totaled $75 million, compared to $67.8 million for the same six months in fiscal 2011.
"We continue to have a very solid fiscal 2012 with record revenue, gross profit, net income and backlog for the quarter," said Tony Wormington, JHA president. "We had solid contributions from our support and services line of revenue, which represents 88 percent of our total revenue. We continue to see strong growth in our payments business with 9 percent growth for the quarter. Overall our support and services revenue grew 6 percent for the quarter."
Cost of sales for the second quarter increased 6 percent to $148.4 million from $139.8 million for the second quarter in fiscal 2011. Gross profit increased 4 percent to $107.4 million. Gross margin was 42 percent in both periods.
For the first half of fiscal 2012, operating expenses increased 1 percent to $93.3 million, primarily due to increased commission expenses in line with increased revenue. Selling and marketing expenses increased 11 percent in the six months ended Dec. 31, 2011. Cash provided by operations totaled $96.3 million in the current year, compared to $85.8 million last year.
"The overall results for the quarter were again ahead of our internal budget," said Kevin Williams, chief financial officer for JHA. "Total revenue was slightly ahead for both the quarter and year to date, but remains within 1 percent of plan. However, as our managers and associates continue to do an outstanding job of controlling our overall costs, our gross and operating profits are both ahead of our internal budget for the quarter and first half of the year."
JHA products and service serve more than 11,300 customers nationwide and are marketed and supported through four primary brands. Additional information is available at www.jackhenry.com.