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Announces Regular Quarterly Dividend
MONETT, Mo., August
27, 2003 -- Jack Henry & Associates, Inc. (Nasdaq: JKHY) today announced
its Board of Directors declared a regular quarterly cash dividend
of $.035 per share. The cash dividend on its common stock, par value
$.01 per share, is payable on September 19, 2003, to stockholders
of record as of September 5, 2003. At August 22, 2003, 88,560,346
shares of the common stock were outstanding.
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 3,000 customers nationwide.
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Increases Market Share with Bank and Credit Union Signings
MONETT, Mo., August
25, 2003 -- Jack Henry and Associates, Inc. (Nasdaq: JKHY) announces
that its recent bank and credit union contracts are contributing significantly
to the company's increased market share. By now providing services
to 74 financial institutions in the mid-tier space, JHA offers services
to roughly 20% of U.S. banks and credit unions in this $1 billion
to $30 billion asset category. Symitar added 44 credit unions to its
client roster in fiscal year 2003, signing 35 in-house and nine outsourced
contracts.
"We are honored to have been named the technology provider for not only
the financial institutions listed but all the others that were contracted
during our fiscal year ended June 30, 2003," says Kevin D. Williams, CFO of
Jack Henry. "Not only will these contracts enhance our revenue stream for
future years with the nice mix of in-house and outsourced customers, but it is
also a strong endorsement of our company by the larger financial
institutions."
Chittenden Corporation, the $6.2 billion New England banking company based
in Burlington, Vt., becomes the 60th bank with assets in
excess of $1 billion to contract with JHA. Chittenden signed agreements to
implement JHA's SilverLake System(R) in all six of the holding company's
banks. SilverLake is a core processing solution operating on IBM's iSeries
platform and is designed for banks from $500 million to $30 billion in assets.
The scope of the conversion project does not overly concern Jack Barnes,
executive vice president of CHZ Services Group for Chittenden. "Our size is
not an issue," he says. "Jack Henry's software and associated hardware
processing capacities are more than sufficient to handle our needs now and in
the foreseeable future." Barnes says that JHA will deliver a high degree of
multi-channel integration, and new products will improve customer service and
operational efficiencies.
In June, JHA signed Main Street Banks, Inc., a $1.8 billion community
banking organization based in Atlanta, Ga. In May 2004, Main Street Banks
will also begin using the SilverLake System. $4.6 billion AMCORE Bank in
Rockford, Ill., converted to SilverLake in July 2003, and is the first JHA
bank to install the new ARGO Keys(TM) deposit and relationship solutions.
ARGO Keys is the joint branch automation and sales solution between JHA and
ARGO Data Resource Corporation of Dallas, Texas, and includes depositkeys, the
deposit platform; lendingkeys, the lending platform; and relationshipkeys, the
Customer Relationship Management (CRM) solution. ARGO Keys is a strategic
solution, bringing sales and workflow process efficiencies to AMCORE's 64
locations.
"Our partnership with ARGO allows us to provide a complete branch sales
automation solution incorporating customer relationship management and a
complete sales automation deposit and lending platform product with the close
integration and high-end functionality required by our larger customers," says
Michael E. Henry, JHA Chairman and CEO. "This arrangement has not only
expanded the breadth of our product offerings, but adds to the attractiveness
of a JHA solution for our customers the size of AMCORE."
Symitar's Credit Union Successes
Symitar, a JHA subsidiary, announces the signing of several credit unions
with total assets in excess of $1 billion in fiscal year 2003, including $1.7
billion Lockheed Federal Credit Union in Burbank, Calif., and $1.1 billion
Schools Financial Credit Union in Sacramento, Calif. Symitar now counts 14
billion-dollar plus credit unions as clients. Earlier this year Symitar
announced the signing of U.S. Central Credit Union, the wholesale financial
center for the nation's corporate credit unions, to a seven-year outsourcing
arrangement.
With these signings, the Episys(TM) product represents the solution of
choice to more than 20% of the 100 largest credit unions in the U.S., making
it the most widely used processing system in this asset tier either through an
in-house or outsourced delivery. Additionally, according to Callahan and
Associates' 2003 Credit Union Technology Survey, Episys is used by more credit
unions over $50 million in assets than any other system.
Symitar's market share continues to expand; now over 590 credit unions use
Symitar solutions -- Episys, Cruise(TM), or Conductor(TM). As reported by the
2003 Credit Union Technology Survey, Symitar performed 25 conversions to
Episys in calendar year 2002 -- almost three times the number of conversions
performed to the next nearest competitive product (nine), and nearly equal to
the number of conversions performed to the six leading competitive products
combined.
About Jack Henry & Associates
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 3,000 customers nationwide.
Statements made in this news release that are not historical facts are
forward-looking information. Actual results may differ materially from those
projected in any forward-looking information. Specifically, there are a
number of important factors that could cause actual results to differ
materially from those anticipated by any forward-looking information.
Additional information on these and other factors, which could affect the
Company's financial results, are included in its Securities and Exchange
Commission (SEC) filings on Form 10-K, and potential investors should review
these statements. Finally, there may be other factors not mentioned above or
included in the Company's SEC filings that may cause actual results to differ
materially from any forward-looking information.
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Reports Fiscal 2003 Results
MONETT, Mo., July 23, 2003 -- Jack Henry & Associates,
Inc. (Nasdaq: JKHY), a leading provider of integrated technology solutions for
financial institutions, today reported solid fourth quarter and fiscal year
profitability and backlog in one of the most difficult markets the technology
industry has seen in more than a decade. Continued success in the expansion
into the credit union market for both in-house and outsourcing, competitive
wins in both the banking and credit union segments, expansion of outsourcing
services, and sales of complementary products were the major contributing
factors to the company's solid performance in fiscal 2003.
For the fiscal year ended June 30, 2003, the Company generated total
revenues of $404.6 million, compared to $396.7 million in fiscal 2002. Net
income totaled $49.4 million, or $0.55 per diluted share, compared to
$57.1 million, or $0.62 per diluted share, a year ago. Fourth quarter total
revenues were $109.2 million, compared to $106.1 million, and net income was
$14.1 million, or $0.16 per diluted share, compared to $15.9 million, or
$0.17 per diluted share, in the like quarter a year ago.
Fiscal 2003 Highlights:
"The fourth quarter was definitely the strongest quarter of the year,
showing incremental improvement in revenues, margins and profitability over
the prior three quarters," said Michael E. Henry, Chairman and CEO. "Even
with the challenges presented by one of the toughest years ever in the
technology industry, fiscal 2003 was a solidly profitable one for us and a
year in which we laid the groundwork for the future. During the year we made
product changes to our core banking software which have allowed us to
effectively move further upstream and downstream from what has been our
historical banking market. We also made an acquisition in the credit union
segment which allows us to market our products to all credit unions regardless
of size. I am very proud of our team members for their efforts this year and
the current positioning of our organization for future success."
"We continue to see encouraging signs in the market, although our outlook
is for a slow, steady improvement over the next year rather than a steep ramp
up of business," said Jack Prim, President. "During the year we opened two
new item processing centers, one of them by acquisition, and announced we will
open one more location this fall continuing the expansion of our geographic
footprint in our growing outsourcing business. Our credit union segment
continues to provide significant revenue opportunities and we see potential
for strong margin expansion in this segment of our business as we continue to
leverage our existing infrastructure, particularly in the areas of our
ATM/Debit switch and outsourcing services. We are just now beginning to get
traction in this segment with both of these offerings."
Operating Results
Fourth quarter revenues grew 3% to $109.2 million compared to
$106.1 million in the fourth quarter a year ago. Fiscal 2003 revenues were up
2% to $404.6 million compared to $396.7 million in fiscal 2002. Gross
customer reimbursements are now included and presented in the correlating line
items of support and services or hardware revenues and costs, respectively.
Reflecting the strength in new outsourcing business, support and services
continues to grow its contribution to revenues, growing to 64% of revenues in
2003 compared to 58% of 2002 revenues. Fourth quarter support and service
revenue increased 14% to $69.8 million from $61.2 million in the fourth
quarter of 2002.
Continuing softness in banking core system sales negatively impacted
revenues from license fees and hardware sales in 2003. Fourth quarter license
revenue dropped 34% to $12.0 million, accounting for 11% of total revenues,
compared to $18.1 million, or 17% of revenues, in the prior year. For the
full year, license fees dropped 27% to $48.3 million or 12% of total 2003
revenues, compared $66.6 million, or 17% of 2002 revenues.
Cost of sales increased 5% during the quarter and 7% during the fiscal
year, primarily due to increased headcount included in cost of services.
Fourth quarter gross margin was 39% this fiscal year compared to 41% in the
prior year. Year-to-date gross margin was 38% compared to 41% in fiscal 2002.
Support and service margins continue to strengthen to 33% up from 32% for the
same quarter a year ago. Year-to-date support and service margin increased to
32% this year from 29% in the prior year. The increase is primarily due to
increased volumes, number of customers and continued leveraging of resources
in our outsourcing and ATM/Debit card processing services. Hardware gross
margin for the fourth quarter was 33% compared to 25% for the same quarter
last year. Year-to-date hardware margin decreased from 30% in the prior year
to 28% in the current year. The decrease in hardware margin for the year is
primarily attributable to the sales mix of products and reduced vendor
incentives.
Operating expenses increased 9% during the quarter and 2% for the full
year, with the majority of the increase generated from research and
development expenses. Research and development expense went up by 39% for the
quarter and 27% for the year primarily as a result of increased headcount for
ongoing development of new products and enhancements to existing products in
both segments of our business.
Operating income decreased 7% in the quarter to $22.1 million compared to
$23.9 million in the fourth quarter a year ago. Fiscal 2003 operating income
totaled $77.3 million, down 11% from $86.6 million in fiscal 2002. Fourth
quarter pre-tax income totaled $22.2 million, down 8% from $24.1 million in
the fourth quarter a year ago. Pre-tax income for fiscal 2003 totaled $77.8
million, down 12% from $88.5 million a year ago. Fourth quarter net income
totaled $14.1 million, or $0.16 per share, compared to $15.9 million or $0.17
per share in the same quarter of fiscal 2002. Net income was $49.4 million,
or $0.55 per share, in fiscal 2003 compared to $57.1 million, or $0.62 per
share, in fiscal 2002.
Cash Flow and Balance Sheet Review
"As we have explained in the previous two quarters, we shifted our annual
in-house support billing cycle for customers that came to us through
acquisitions to our fiscal year end from a calendar year. Included in the
June 30 annual support billings was an increase of $25.0 million because of
this shift in billing cycles and is the primary reason for the increase in
receivables and approximately $12.5 million of the increase in deferred
revenue at June 30, 2003 compared to the prior year," said Kevin D. Williams,
CFO. Trade receivables increased $19.5 million to $151.0 million and deferred
revenue increased $23.2 million to $132.2 million at June 30, 2003 compared to
the prior year.
Cash flow from operations increased to $98.9 million this year from
$89.9 million in the prior year. Year-to-date, depreciation and amortization
expenses were $24.0 million and $6.2 million, respectively, in fiscal 2003,
compared to $20.9 million and $6.6 million, respectively, in fiscal 2002.
Capital expenditures were $46.0 million this year compared to $49.5 last year.
Backlog, which is a measure of future business and revenue, continued to
grow during the quarter and for the fiscal year in both in-house and
outsourcing revenue. Year-end backlog grew 29% to $183.1 million
($69.5 million in-house and $113.7 million outsourcing) compared to
$141.7 million ($52.8 million in-house and $88.9 million outsourcing) at
June 30, 2002.
About Jack Henry & Associates
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 3,000 customers nationwide. The company will hold a
conference call today at 7:45 Central Time, and investors are invited to
listen at www.jackhenry.com.
Statements made in this news release that are not historical facts are
forward-looking information. Actual results may differ materially from those
projected in any forward-looking information. Specifically, there are a
number of important factors that could cause actual results to differ
materially from those anticipated by any forward-looking information.
Additional information on these and other factors, which could affect the
Company's financial results, are included in its Securities and Exchange
Commission (SEC) filings on Form 10-K, and potential investors should review
these statements. Finally, there may be other factors not mentioned above or
included in the Company's SEC filings that may cause actual results to differ
materially from any forward-looking information.
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To Provide Webcast of Fourth Quarter 2003 Earnings Call
MONETT, Mo., July 11, 2003 -- Jack Henry & Associates,
Inc. (Nasdaq: JKHY) today announced that a live webcast and replay of its
fourth quarter fiscal 2003 earnings conference call will be available on the
Internet. The live Webcast and archived replay can be accessed on the Jack
Henry Web Site at www.jackhenry.com.
The Webcast will begin at 7:45 am Central time (8:45 am EDT) on July 23,
2003. Please log on 10 minutes prior to the beginning of the call. An
archive of the call will be available approximately one hour after the call
through midnight (CDT) on July 30, 2003.
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 3,000 customers nationwide.
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To Host Analyst Conference
MONETT, Mo., May 5, 2003 --
Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading provider of technology
solutions for banks and credit unions, today announced it is hosting an
analyst and investor conference on Tuesday, May 6, 2003 in Dallas, Texas from
8:00 a.m. to 2:30 p.m. Central Time. Member of the Jack Henry management team
will be making presentations at the conference. Anyone interested in
listening to the audio and viewing the slide presentation of the conference
may go to the company's website at www.jackhenry.com to log onto the
conference. The link will be on the investor relations tab under the analysts
meeting conference call for 05-06-03.
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 3,000 customers nationwide.
Return
to headlines
Announces Regular Quarterly Dividend
MONETT, Mo., April 25, 2003 --
Jack Henry & Associates, Inc. (Nasdaq: JKHY) today announced its Board of
Directors declared a regular quarterly cash dividend of $.035 per share. The
cash dividend on its common stock, par value $.01 per share, is payable on
May 16, 2003, to stockholders of record as of May 1, 2003. At April 23, 2003,
87,873,177 shares of the common stock were outstanding.
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 3,000 customers nationwide.
Return
to headlines
Reports Fiscal 2003 Third Quarter Results
MONETT, Mo., April 16, 2003 --
Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading provider of integrated
technology solutions for financial institutions, today reported solid fiscal
third quarter profitability and backlog. This has occurred in spite of the
weakness in capital goods spending that has continued to hamper sales of new
core processing systems while enhancing sales of outsourcing solutions. For
its third fiscal quarter, revenues were down 1% to $98.9 million, and net
income was down 9% to $12.3 million, or $0.14 per share. Year-to-date,
revenues are up 2% to $295.4 million and net income is down 14% to $35.3
million or $0.40 per share.
"Spending on technology continues to show the effects of the overall
decrease in the capital goods market as bankers have not yet returned to the
traditional spending on technology upgrades and systems," said Michael E.
Henry, Chairman and CEO. "Outsourcing continues to be a strong seller as well
as credit union systems and add on complementary solutions. Our backlog has
increased significantly this quarter for both in-house and outsourcing, but it
is still too early to determine if this is an actual turn in the market.
Until we are sure, we will continue to do the right things for our company,
customers and stockholders."
"We continue to have significant success in building the outsourcing part
of our business. As previously discussed we are continuing to focus on
expanding our geographic footprint for item capture sites, to help drive data
processing sales, through acquisition or development of new sites," said Jack
Prim, President. "Therefore we are announcing that we have committed to
establish two new additional sites. One of these will be located in New
Jersey and the other in Connecticut. These additional sites will bring our
total number of item capture sites to seventeen by the end of the calendar
year."
Operating Results
To improve reporting disclosure, the company has changed its reporting
line items, with installation revenue moving from license revenue to support
and service revenue and a new line item for license cost of sales. This will
allow our investors to analyze the various gross margins based on the
applicable type of revenue.
Third quarter revenues were down slightly at $98.9 million compared to
$99.8 million in the third quarter a year ago. Year-to-date revenues were up
slightly at $295.4 million compared to $290.6 million in the first nine months
of fiscal 2002.
License revenue dropped to $10.4 million in the third quarter of fiscal
2003, off 41% from $17.7 million in 3Q02. Year-to-date license decreased to
$36.3 million down 25% from $48.4 million in the first nine months of fiscal
2002. Support and service revenue grew to $59.2 million up 18% from
$50.1 million in the third quarter a year ago. Year-to-date support and
service revenue increased 15% to $170.3 million from $147.9 million in the
first nine months of fiscal 2002. Reflecting the reduced sales of new in-
house core systems, hardware sales were down 13% in 3Q03 to $21.7 million
compared to $24.8 million in the third quarter a year ago. Year-to-date
hardware sales were down 9% to $67.4 million from $73.9 million in the like
period a year ago.
Support and service revenue continues to be strong, posting 18% year-over-
year growth in the third quarter and 15% growth year to date. Recurring
revenue, which excludes installation revenue, accounted for 52% of total third
quarter revenues and 51% of revenues for the first nine months of fiscal 2003.
Cost of sales increased 1% during the quarter and 7% year-to-date,
primarily due to increased headcount included in cost of services. Third
quarter gross profit was 39% this fiscal year compared to 40% in the third
quarter a year ago. Year-to-date gross profit was 37% compared to 41% in the
first nine months of fiscal 2002. Support and service margins continue to
strengthen to 38% up from 32% for the same quarter a year ago. Year-to-date
support and service margin increased to 35% this year-to-date from 32% for the
nine months ended March 2002. Hardware gross margin for the third quarter was
at 28% compared to 31% for the same quarter last year. Year to date hardware
margins decreased from 32% in prior year to 26% in the current year. The
decrease is primarily attributable to sales mix of products and reduced vendor
incentives.
Operating expenses declined slightly during the quarter and year-to-date
reflecting management's continued efforts to control expenses. Operating
income decreased 8% in the quarter to $19.3 million compared to $20.9 million
in the third quarter a year ago. Year-to-date operating income totaled $55.1
million, down 12% from $62.8 million in the first nine months of fiscal 2002.
Third quarter pre-tax income totaled $19.4 million, down 8% from
$21.2 million in the third quarter a year ago. Pre-tax income for the first
nine months of fiscal 2003 totaled $55.6 million, down 14% from $64.4 million
a year ago. Third quarter net income totaled $12.3 million, or $0.14 per
share, compared to $13.6 million or $0.15 per share in the same quarter of
fiscal 2002. Year-to-date net income was $35.3 million, or $0.40 per share,
compared to $41.2 million, or $0.45 per share, in the first nine months of
fiscal 2002.
"As we explained last quarter, we've shifted our annual maintenance
billing cycles for customers we gained through acquisitions to our fiscal year
end from a calendar year. As a result, comparisons of deferred revenue are
not particularly meaningful," said Kevin D. Williams, CFO. Deferred revenue
was $66.2 million at March 31, 2003, from $77.6 million a year ago.
"Backlog continued to strengthen in the quarter with new in-house sales,
continued success in contracting complementary products and outsourcing
services to both banks and credit unions," Williams noted. Backlog grew 27%
during the quarter to $172.8 million ($64.2 million in-house and
$108.5 million outsourcing) compared to $136.5 million ($54.0 million in-house
and $82.5 million outsourcing) at March 31, 2002. "We continue to make
progress on the integration of ARGO's CRM and Platform technology with our
integrated core solution and expect to begin installing backlog orders for
this product in the summer. As we noted last quarter, when these revenues are
recognized, they will carry somewhat lower gross profit margins than our other
software products due to the alliance agreement with ARGO."
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 3,000 customers nationwide.
The company will hold a conference call today at 7:45 Central Time, and investors are invited to
listen at www.jackhenry.com.
Statements made in this news release that are not historical facts are
forward-looking information. Actual results may differ materially from those
projected in any forward-looking information. Specifically, there are a
number of important factors that could cause actual results to differ
materially from those anticipated by any forward-looking information.
Additional information on these and other factors, which could affect the
Company's financial results, are included in its Securities and Exchange
Commission (SEC) filings on Form 10-K, and potential investors should review
these statements. Finally, there may be other factors not mentioned above or
included in the Company's SEC filings that may cause actual results to differ
materially from any forward-looking information.
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Signs U.S. Central Credit Union
MONETT, Mo., February 20, 2003 --
Jack Henry & Associates, Inc. (NASDAQ:JKHY) today reported that U.S. Central
Credit Union signed a 7-year outsourcing contract to replace its current core
processing system. Symitar Systems, Inc., a wholly-owned subsidiary of Jack
Henry, will implement Episys, its core processing system, and will provide
ongoing services associated with the new solution.
U.S. Central is the wholesale financial center for the nation's corporate
credit unions. Similar to the Federal Reserve's role for the nation's banking
system, U.S. Central provides a range of liquidity, investment, payment and
technology services to 31 corporate credit unions nationwide. The corporate
credit unions in turn serve the nation's 10,000 credit unions.
"We are honored to be named the technology provider for U.S. Central,
which is at the top of the credit union pyramid and one of the most respected
financial institutions in the country," said Michael E. Henry, Chairman and
CEO of Jack Henry. "This contract will not only provide a solid long-term
revenue stream, but also delivers a strong endorsement of our technology to
the credit union community."
"For the past two years, U.S. Central and the network of corporate credit
unions have worked closely together to evaluate alternatives to the existing
system. After completing an extensive due diligence process, it became clear
that Jack Henry was the right partner to carry us into the future," said Dan
Kampen, president and CEO of U.S. Central. "The Episys product is a leading
technological solution that provides a powerful database model and other
connectivity tools. Additionally, when Symitar's solid reputation as a
provider of data processing services to over 500 credit unions across the
nation is coupled with an equally strong Jack Henry track record, it becomes
obvious that together they are the vendor of choice that will ensure a
successful transition."
"With over $30 billion in assets, U.S. Central is now our largest credit
union customer. As with all outsourcing relationships, this will not
contribute materially to fiscal 2003 revenue, but will begin contributing to
revenue in fiscal 2004 and continue increasing over the next several years,"
said Kevin D. Williams, CFO of Jack Henry & Associates.
About U.S. Central
U.S. Central Credit Union, based in Lenexa, Kan., is the nation's only
wholesale corporate credit union and has assets of approximately $32 billion.
It is owned by 31 member corporate credit unions. Together, U.S. Central's
member/owners provide investment, credit and payment services to more than
10,000 credit unions nationwide, serving approximately 80 million consumer
members.
About Jack Henry & Associates
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 3,000 customers nationwide.
Statements made in this news release that are not historical facts are
forward-looking information. Actual results may differ materially from those
projected in any forward-looking information. Specifically, there are a
number of important factors that could cause actual results to differ
materially from those anticipated by any forward-looking information.
Additional information on these and other factors, which could affect the
Company's financial results, are included in its Securities and Exchange
Commission (SEC) filings on Form 10-K, and potential investors should review
these statements. Finally, there may be other factors not mentioned above or
included in the Company's SEC filings that may cause actual results to differ
materially from any forward-looking information.
Return
to headlines
Announces Regular Quarter Dividend
MONETT, Mo., January 27, 2003 -- Jack Henry & Associates, Inc.
(NASDAQ:JKHY) today announced its Board of Directors declared a
regular quarterly cash dividend of $.035 per share. The cash dividend
on its common stock, par value $.01 per share, is payable on February
27, 2003, to stockholders of record as of February 12, 2003. At
January 24, 2003, 87,687,789 shares of the common stock were outstanding.
"One of our corporate goals is to continue increasing dividends
at a discount to our earnings growth and these increases have historically
been announced during this quarter," said Michael E. Henry, Chairman
and CEO. "However, due to the slowdown in the capital goods market
which has caused a decrease in our earnings, the Board of Directors
has voted to maintain the quarterly dividend at the current level
of $.035 at this time."
Jack Henry & Associates, Inc. provides integrated computer systems
and processes ATM and debit card transactions for banks and credit
unions. Jack Henry markets and supports its systems throughout the
United States and has over 3,000 customers nationwide.
Return
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Reports
Fiscal 2003 Second Quarter Results
MONETT, Mo., January 16, 2003 -- Jack Henry & Associates, Inc.
(NASDAQ:JKHY) today reported that revenues increased 4% to $102.6
million, and profits were $11.7 million, or $0.13 per share, in
the second quarter of fiscal 2003 ended December 31, 2002 compared
to the second quarter last year. Results for 2Q03 were slightly
better than those for the first quarter of FY03 but weaker than
those in the same period a year ago.
"Technology spending patterns continue to show the effects of
the slow down in the capital goods market, and bankers have not
yet boosted spending on technology upgrades," said Michael E. Henry,
Chairman and CEO. "In this environment, outsourcing continues to
be a popular solution due to the minimal upfront outlay of capital.
Credit unions have also been more willing to invest in technology
to improve their competitiveness in the financial market place.
Financial institutions are seeking strong, integrated technology
platforms that provide competitive advantages and improved efficiencies.
It is too early to tell if the increase in sales activity and revenue
is the beginning of a rebound or just an anomaly, however I am confident
the markets will turn, but when they will turn is still unclear.
Until that time, we continue to build our competitive strengths
and remain profitable and debt-free."
"To build on our competitive position, we previously announced
two strategic acquisitions since our last earnings release," said
Jack Prim, President, "in addition we have continued to invest in
developing new products and enhancing existing products for our
broad customer base. We have made good progress this quarter on
the JKHY/ARGO customer relationship management (CRM) and platform
products. The deposit software of this offering is now in beta testing
and additional modules should be in testing this quarter."
Operating Results
Second quarter revenues increased 4% to $102.6 million compared
to $98.2 million in 2Q02. Total non-hardware revenues grew to $78.4
million up 10% from 2Q02. Support and services accounted for 49%
of total revenues, with license and installation at 20%, hardware
sales at 24% and customer reimbursements generating 7% of total
revenue in the second quarter. License and installation revenues
were $20.8 million, down 9% from 2Q02. Support and services increased
to $50.3 million or up 20% from 2Q02. Hardware sales were $24.2
million a decline of 10% from 2Q02.
Year-to-date revenues were up 3% to $196.5 million from $190.8
million in the first six months of fiscal 2002. For the first six
months of the year, non-hardware revenues grew 6% and accounted
for 77% of total year-to-date revenues. Licensing and installation
was 20% of total revenues at $39.1 million, down from $45.1 million,
or 24% of total revenues, in the same period a year ago. Support
and services increased 17% during the first half of the year, totaling
$97.9 million, and accounting for 50% of revenues, compared to $83.5
million, or 44% of revenues, in the first half of fiscal 2002. Hardware
sales were down 7% to $45.7 million, or 23% of revenues, compared
to $49.0 million or 26% of revenues in the first half of fiscal
2002.
Profit margin declined across the board, primarily due to sales
mix and increase in head count compared to last year's quarter.
Second quarter gross margin was 36% compared to 40% 2Q02. Year-to-date,
gross margin was down to 37% from 41% in the first half of 2002.
Non-hardware margins in the second quarter were 39% down from 43%
in 2Q02. During the first half, non-hardware margin declined to
40% from 44%. Second quarter hardware margin came in at 26%, which
is down from 31% in 2Q02. For the first half of 2003, hardware margin
dropped to 26% from 32% in the like period of fiscal 2002.
Operating expense in the second quarter dropped 3% to $18.6 million
from $19.2 million in 2Q02, and was flat for the first six months
of the year at $36.1 million compared to the first half of last
year. Second quarter operating income totaled $18.2 million down
8% from $19.8 million in 2Q02. In the first half of fiscal 2003,
operating profit dropped 14% to $35.9 million from $41.9 million.
Second quarter pre-tax income was $18.4 million, down 10% from
$20.4 million in 2Q02. Year-to-date pre-tax income totaled $36.2
million down 16% from $43.2 million in the first half of 2002. Net
income was $11.7 million, a 10% decline from the second quarter
a year ago.
"Support fees for existing in-house core customers are usually
20% of the initial software license, and are typically billed in
annual installments at June 30 for the next fiscal year; however,
for our acquired customers bases, we are transitioning them from
a December annual billing cycle to our June billing cycle, with
a bi-annual billing process this year, which obviously had an impact
on our accounts receivable and deferred revenue balances at December
31," said Kevin D. Williams, CFO. Consequently, deferred revenues
dropped to $78.2 million a decline of 9% from $85.9 million a year
ago.
Year-end backlog was up due primarily to new contracts for the
JKHY/ARGO customer relationship management (CRM) product and continued
success in sales of complementary products and our outsourcing services.
Backlog grew 8% during the quarter to $158.0 million ($57.6 million
in-house and $100.4 million outsourcing) compared to $146.5 million
($53.2 million in-house and $93.3 million outsourcing) at September
30, 2002, and $132.1 million ($52.3 million in-house and $79.8 million
outsourcing) at December 31, 2002. "ARGO's CRM and platform products
are currently being marketed to our existing SilverLake customer
base," said Williams. "Because these products are just now being
introduced into the beta sites, new contracts will not have a significant
impact on revenue in the near term. In addition, when these revenues
are recognized, they will carry somewhat lower gross profit than
our other software products due to the alliance agreement with ARGO."
Jack Henry & Associates, Inc. provides integrated computer systems
and processes ATM and debit card transactions for banks and credit
unions. Jack Henry markets and supports its systems throughout the
United States and has over 3,000 customers nationwide. The company
will hold a conference call today at 7:45 Central Time, and investors
are invited to listen at www.jackhenry.com .
Statements made in this news release that are not historical facts
are forward-looking information. Actual results may differ materially
from those projected in any forward-looking information. Specifically,
there are a number of important factors that could cause actual
results to differ materially from those anticipated by any forward-looking
information. Additional information on these and other factors,
which could affect the Company's financial results, are included
in its Securities and Exchange Commission (SEC) filings on Form
10-K, and potential investors should review these statements. Finally,
there may be other factors not mentioned above or included in the
Company's SEC filings that may cause actual results to differ materially
from any forward-looking information.
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Acquires
National Bancorp Data Services
MONETT, Mo., and CHICAGO, January 2, 2003 -- Jack Henry & Associates,
Inc. (NASDAQ:JKHY), a leading provider of technology solutions for
financial institutions, today announced it has purchased National
Bancorp Data Services, LLC (NBDS), an item capture processor. The
terms of the cash transaction were not disclosed. NBDS currently
provides item capture and check imaging services for 14 banks. NBDS
services financial institutions in the greater Chicago communities
in Northern Illinois, Southern Wisconsin and Northern Indiana, generating
approximately $1.5 million in revenues in 2002.
"Our ability to provide a full-service outsourcing solution in
the Chicago market is greatly enhanced by this acquisition: It completes
our footprint in this important geographic area, which is home to
a large number of financial institutions," said Michael E. Henry,
Chairman and CEO of JKHY. Proximity of item capture services can
be an important factor in winning new outsourcing contracts because
of the time-sensitive nature of item capture. Banks must expeditiously
process and clear the multitude of individual transactions enacted
each day by its customers.
"By having item capture services in this area, we are enhancing
competitive opportunities for us in the region, and solidifying
our relationship with the NBDS banks who are currently being processed
by one of our data processing locations," said Jack Prim, President
of JKHY. NBDS will continue to operate in its current facilities
in Streamwood, Illinois, with 18 employees.
"NBDS is a profitable, cash-flow positive company with a talented
and experienced workforce. In keeping with our overall strategic
plan, this acquisition is expected to be slightly accretive to earnings
in 2003," said Kevin D. Williams, CFO. "In a broader context, we
also expect it to contribute to an expansion of data processing
revenue in our existing data centers."
Jack Henry & Associates, Inc. provides integrated computer systems
and processes ATM and debit card transactions for banks and credit
unions. Jack Henry markets and supports its systems throughout the
United States and has over 3,000 customers nationwide.
Statements made in this news release that are not historical facts
are forward-looking information. Actual results may differ materially
from those projected in any forward-looking information. Specifically,
there are a number of important factors that could cause actual
results to differ materially from those anticipated by any forward-looking
information. Additional information on these and other factors,
which could affect the Company's financial results, are included
in its Securities and Exchange Commission (SEC) filings on Form
10-K, and these statements should be reviewed by potential investors.
Finally, there may be other factors not mentioned above or included
in the Company's SEC filings that may cause actual results to differ
materially from any forward-looking information. SOURCE Jack Henry
& Associates, Inc.
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Acquires CU Solutions,
Inc.
MONETT, Mo., and FORT MILL, S.C., November 18, 2002 -- Jack Henry
& Associates (NASDAQ:JKHY), a leading provider of technology solutions
for financial institutions, today announced it has purchased CU
Solutions, Inc. The terms of the transaction were not disclosed.
CU Solutions is a provider of in-house data processing solutions
for smaller credit unions, primarily those with assets less than
$20 million. Of the 9,782 credit unions in the National Credit Union
Administration 2002 Directory, 6,545 institutions, or 67%, had assets
less than $20 million.
Headquartered near Charlotte, North Carolina, privately held CU
Solutions is a profitable company serving more than 140 credit unions.
Its flagship product, Cruise/SQL, is a powerful and flexible P/C
based software solution that is scalable, open and user friendly.
Cruise/SQL data storage and data access methods are built around
the SQL Server database with the ease of use of the 'point and click'
Windows interface. Founded in 1982, CU Solutions generated revenues
of approximately $2 million, of which approximately 40% was recurring
revenue, in its year ended December 31, 2001.
"This acquisition adds an extremely robust and affordable core
solution to our suite of offerings. It fills a void in our product
offerings for the smaller credit unions which allows us the ability
to effectively market to any size credit union," said Michael E.
Henry, Chairman and CEO of JKHY. "In addition, acquiring CU Solutions
brings significant intellectual capital that is highly sophisticated
for a firm of its size. CU Solutions' functionality, connectivity,
system tools and front-end implementation processes are superb,
and our existing personnel are excited about sharing ideas and expertise."
CU Solutions currently employs 20 individuals in the greater Charlotte
area. Jack Henry and Associates has an office in Charlotte where
approximately 100 employees are currently located. " We will begin
immediately to integrate the CU Solutions personnel into Jack Henry's
nationwide internal network. CU Solutions will continue to operate
as a wholly-owned subsidiary as part of the JKHY's credit union
segment," said Jack Prim, JKHY's Chief Operating Officer. "We expect
to retain all of the CU Solutions team, as well as consolidate our
Charlotte area offices in the near future."
"Jack Henry & Associates has become one of the most well-respected
systems integrators in the financial services sector, and we are
fortunate to be joining their team," said Kai Ravnborg, President
of CU Solutions. "We look forward to leveraging their strong balance
sheet, nationwide sales force and sophisticated product set to expand
our revenue and earnings growth potential significantly."
"The superior level of product and service quality we've identified
with CU Solutions, coupled with the fact that it generates net margins
in line with our own, warranted a premium valuation," said Kevin
D. Williams, Chief Financial Officer at JKHY. "We are confident
this transaction will be slightly accretive to earnings this fiscal
year and that it will continue to expand and increase benefits to
our shareholders and customers in the future."
In 1998, Jack Henry entered the credit union segment with its
acquisition of The Peerless Group, whose Conductor credit union
product was designed for the mid-sized market. In 2000, the company
acquired Symitar and its Episys core solution for credit unions.
Episys has gained favor among larger credit unions. At the time
of the Symitar acquisition, the company also made the decision to
market all of its credit union products under the Symitar brand.
Jack Henry & Associates, Inc. provides integrated computer systems
and processes ATM and debit card transactions for banks and credit
unions. Jack Henry markets and supports its systems throughout the
United States and has over 2,800 customers nationwide.
The company will host a conference call on Monday, November 18,
2002 at 10:30 a.m. Central Standard Time (11:30 a.m. Eastern) to
discuss this news release. To access the call, dial in to (612)
288-0329 between 10:20 and 10:30 a.m. CST to listen live. Also a
replay is available for one week thereafter at (320)-365-3844, access
code 661114. This will also be available at www.jackhenry.com .
Statements made in this news release that are not historical facts
are forward-looking information. Actual results may differ materially
from those projected in any forward-looking information. Specifically,
there are a number of important factors that could cause actual
results to differ materially from those anticipated by any forward-looking
information. Additional information on these and other factors,
which could affect the Company's financial results, are included
in its Securities and Exchange Commission (SEC) filings on Form
10-K, and these statements should be reviewed by potential investors.
Finally, there may be other factors not mentioned above or included
in the Company's SEC filings that may cause actual results to differ
materially from any forward-looking information.
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Announces Regular Quarterly
Dividend
MONETT, Mo., October 30, 2002 -- Jack Henry & Associates, Inc.
(NASDAQ:JKHY) today announced its Board of Directors declared a
regular quarterly cash dividend of $.035 per share. The cash dividend
on its common stock, par value $.01 per share, is payable on December
3, 2002, to stockholders of record as of November 19, 2002. At October
28, 2002, 87,658,911 shares of the common stock were outstanding.
Jack Henry & Associates, Inc. provides integrated computer systems
and processes ATM and debit card transactions for banks and credit
unions. Jack Henry markets and supports its systems throughout the
United States and has over 2,800 customers nationwide.
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Reports Fiscal 2003 First
Quarter Results
MONETT, Mo., October 17, 2002 -- Jack Henry & Associates, Inc.
(NASDAQ:JKHY), a leading provider of integrated technology solutions
for financial institutions, today reported flat revenues and lower
profits reflecting continued pressures in the capital goods markets
in the first quarter of fiscal 2003. Revenues for the quarter were
up 2% to $94.0 million, net income was off 23% at $11.3 million,
and EPS were down 20% to $0.13. Steady credit union business, coupled
with strong outsourcing and complementary product sales, provided
a solid base of revenue and profitability for the company, while
sluggish sales of in-house core systems in the banking sector hampered
growth in the quarter.
Overview
"In a traditionally slow seasonal quarter, the continued slow down
in the capital goods market further hampered sales of our core in-house
systems and reduced revenues from software licenses and installations,
down 18%, as well as hardware, down 3%. These lower sales and installation
revenues in our highest margin business also reduced overall margins
for the quarter," said Michael E. Henry, Chairman and CEO. "We've
been through tough markets before, and remain confident that when
the market recovers we will be in a great position to generate strong
growth in revenues and profits. In the meantime, the company remains
solidly profitable, with a debt-free balance sheet and a growing
backlog."
The strongest contributors to the company's revenue growth in
the first quarter of fiscal 2003 were our OutLink service bureaus
and our ATM and debit card processing services. There was also solid
contribution from the Symitar family of products for credit unions.
In addition, sales of complementary products and services were strong.
"Our sense of the market is bankers are waiting for signs of economic
recovery before making sizable new capital commitments, especially
for new in-house core products," said Terry W. Thompson, President.
"Furthermore, while in this 'wait and see' mode, they are performing
more due diligence on technology investments to ensure new technology
purchases can deliver acceptable returns on investment, generate
efficiencies and produce incremental revenue."
"We think these market dynamics work in our favor due to the tight
integration between core and complementary technologies and because
of the solid reputation we have with our customers for delivering
value for their dollar," noted Jack Prim, Chief Operating Officer.
"We continue to invest heavily in developing new products and enhancing
existing products to meet our customers' needs.
"The other area we see these dynamics in operation is in the outsourcing
area, where the combination of lower initial capital outlay and
increased complexity of technology makes using a service bureau
more attractive to some institutions rather than operating the systems
in-house, particularly for small community banks and newly formed
(denovo) banks," Prim continued. "Since entering the service bureau
market seven years ago, we've expanded our item capture centers
to 14 locations and plan to further expand that network by adding
up to ten new centers over the next three years. The strength in
outsourcing revenues has been a major contributor to our overall
growth over the past few years and provides a stabilizing influence
to our revenue stream, particularly in difficult markets."
Non-hardware revenue, which includes licensing and installation,
support and services and customer reimbursements generated revenues
of $72.4 million, or 77% of total 1Q03 revenues, and increased 3%,
compared to $70.3 million, or 76% of total 1Q02 revenues. First
quarter licensing and installation dropped 18% to $18.3 million,
or 20% of total revenues, compared to $22.3 million, or 24% of total
revenues in the first quarter a year ago.
Revenues from support and services partially offsets the decline
in licensing and installation, growing 14% for the quarter to $47.6
million, or 51% of 1Q03 revenues, compared to $41.6 million, or
45% of 1Q02 revenues. The growth in support and services revenue
reflects the increase in all areas of recurring revenue; in-house
support contracts, outsourcing and ATM and debit card processing.
Revenue Analysis
First quarter hardware revenues decreased 3% to $21.6 million, accounting
for 23% of 1Q03 revenues, compared to $22.3 million or 24% of 1Q02
revenues. "The softness in new in-house system sales contributed
to the bulk of the decline in hardware revenues. As we continue
to build outsourcing business, we expect hardware sales to become
a smaller component of overall revenues over time," said Kevin D.
Williams, CFO. Customer reimbursements (now reported as both revenues
and as cost of sales) were flat at $6.5 million compared to $6.4
million in the first quarter a year ago.
First quarter sales to the banking segment totaled $80.7 million,
contributing 86% to total revenues, compared to $79 million, or
85% of first quarter revenues a year ago. Credit union sales totaled
$13.3 million, contributing 14% of first quarter revenues compared
to $13.5 million, or 15% of first quarter revenues a year ago.
Backlog and deferred revenues, both measures of future business,
continued to improve at quarter end compared to last quarter and
the same quarter a year-ago. At September 30, 2002, backlog increased
to $146.5 million ($53.2 in-house and $93.3 outsourcing) compared
to $141.7 million ($52.8 million in-house and $88.9 million outsourcing)
at June 30, 2002 and $128.9 million ($49.8 million in-house and
$79.1 outsourcing) at September 30, 2001. Deferred revenues increased
11% to $87.8 million, compared to $79.2 million at September 30,
2001.
Margin and Operations Review
Gross margin was 37.4% for the first quarter compared to 42.2% in
1Q02. Gross profit fell 10% to $35.1 million compared to $39.0 million
in the first quarter a year ago. Non-hardware margin was 41% in
1Q03 compared to 45% in 1Q02, due primarily to lower software revenues.
Hardware margin was 25.1% in 1Q03 compared to 33.1% in 1Q02 and
24.8% in 4Q02. "As was the case last quarter, the continued effect
of reduced incentives from hardware suppliers (based on thresholds
that were established from much higher sales volumes in the prior
year) impacted hardware margin," stated Williams.
Operating expenses rose 3% in the first quarter to $17.5 million
compared to $17.0 million in the first quarter a year ago. Selling
and marketing increased 10% to $7.2 million, primarily due to personnel
costs related to increases in the sales force. Research and development
increased 22% to $3.6 million, as the company continues to invest
in product improvements. "Our continuing efforts to control expenses
contributed to a 10% decrease in general and administrative expenses
this quarter," explained Williams. First quarter depreciation and
amortization expense, which is included in both cost of sales and
operating expenses, was $7.3 million compared to $6.3 million in
fiscal 2002.
Net income totaled $11.3 million, or $0.13 per diluted share in
the first quarter of fiscal 2003, compared to $14.6 million, or
$0.16 per diluted share, in the first quarter of 2002. Due to the
company's ongoing stock repurchase program (recently increased to
6 million shares) and the impact of the reduced price of our stock,
the diluted weighted average shares outstanding during the quarter
dropped to 89.6 million compared to 92.7 million during the first
quarter a year ago.
About Jack Henry & Associates
Jack Henry & Associates, Inc. provides integrated computer systems
and processes ATM and debit card transactions for banks and credit
unions. Jack Henry markets and supports its systems throughout the
United States and has over 2,800 customers nationwide. For additional
information on Jack Henry, visit the company's web site at www.jackhenry.com
. The Company will host a conference call today to discuss fiscal
first quarter 2003 results at 7:45 a.m. CDT. The call can be accessed
live and for one week thereafter at www.jackhenry.com .
Statements made in this news release that are not historical facts
are forward-looking information. Actual results may differ materially
from those projected in any forward-looking information. Specifically,
there are a number of factors that could cause actual results to
differ materially from those anticipated by any forward-looking
information. Additional information on these and other factors which
could affect the Company's financial results are included in its
Securities and Exchange Commission (SEC) filings on Form 10-K. Potential
investors should review these statements. Finally, there may be
other factors not mentioned above or included in the Company's SEC
filings that may cause actual results to differ materially from
any forward-looking information.
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