Jack Henry and Associates (JHA) reported an increase in profits by 6 percent for the 2011-12 fiscal year, which ended on June 30.
The Monett-based provider of technology solutions for the financial services industry posted total revenue of $1,027,100,000. Net income rose by 13 percent over the prior year to $155 million.
Gross profits for the year rose by more than $24 million. Net income placed a value of $1.78 per diluted share, compared to $1.59 per share in the previous year.
"We are very pleased to announce record revenue, earnings and backlog of business for the fourth quarter and full fiscal year," said Jack Prim, chief executive officer. "This also marks the first time we have closed a fiscal year with over $1 billion in total revenue and company market capitalization of over $3 billion."
According to Tony Wormington, JHA president, increases in all lines of revenue drove the record numbers.
"Our support and services revenue represented 89 percent of total revenue for fiscal 2012," said Wormington, "and continued to drive the overall revenue growth for our company. Within this line, we continued to see strong growth in all of our electronic payment offerings with 15 percent growth in revenue for the quarter and 12 percent for the entire year. Overall, our support and services revenues grew 8 percent for the quarter, compared to a year ago, and grew 7 percent for the entire year."
Revenues for electronic payment services, which includes ATM, debit and credit card transaction processing within the support and service division, rose 15 percent in the fourth quarter. Hardware sales increased 6 percent.
The cost of sales showed rises of 9 percent for the final quarter and 6 percent for the year. Operating expenses rose by 3 percent for the quarter, due primarily to increased selling and marketing expenses. For the year, operating expenses rose by 2 percent. Selling and marketing expenses increased by 12 percent for the year.
"Results for the year were very much in line with our internal forecasts and budgets, said Kevin Williams, chief financial officer. "Revenue and gross profit for the year were within 1 percent of our projections, and we were able to get slightly more leverage to the operating income line than originally projected over a year ago.
"Our interest income increased due to various settlements during the year," Williams continued. "Our interest expense decreased significantly as we continue to decrease the debt on our balance sheet. We currently have a strong cash balance along with our entire revolver facility available for potential acquisitions and stock buybacks and general investment. We purchased a little over a million shares during the quarter just ended."
JHA technology solutions and payment processing services have more than 11,900 customers nationwide. More information is available at www.jackhenry.com.