Revenue for the quarter ended
According to
Operating Results
Revenue, cost of sales, and gross profit results for the quarter were as follows:
Revenue, Cost of Sales, and Gross Profit (Unaudited) |
|||||||||
(In Thousands) |
Three Months Ended |
% |
|||||||
2016 |
2015 |
||||||||
Revenue |
|||||||||
License |
$ |
694 |
$ |
1,604 |
(57) |
% |
|||
Percentage of Total Revenue |
< 1 |
% |
< 1 |
% |
|||||
Support and Service |
333,046 |
307,746 |
8 |
% |
|||||
Percentage of Total Revenue |
97 |
% |
96 |
% |
|||||
Hardware |
11,288 |
12,268 |
(8) |
% |
|||||
Percentage of Total Revenue |
3 |
% |
4 |
% |
|||||
Total Revenue |
345,028 |
321,618 |
7 |
% |
|||||
Cost of Sales |
|||||||||
Cost of License |
252 |
181 |
39 |
% |
|||||
Cost of Support and Service |
185,892 |
174,714 |
6 |
% |
|||||
Cost of Hardware |
8,619 |
8,768 |
(2) |
% |
|||||
Total Cost of Sales |
194,763 |
183,663 |
6 |
% |
|||||
Gross Profit |
|||||||||
License Gross Profit |
442 |
1,423 |
(69) |
% |
|||||
License Gross Profit Margin |
64 |
% |
89 |
% |
|||||
Support and Service Gross Profit |
147,154 |
133,032 |
11 |
% |
|||||
Support and Service Gross Profit Margin |
44 |
% |
43 |
% |
|||||
Hardware Gross Profit |
2,669 |
3,500 |
(24) |
% |
|||||
Hardware Gross Profit Margin |
24 |
% |
29 |
% |
|||||
Total Gross Profit |
$ |
150,265 |
$ |
137,955 |
9 |
% |
|||
Gross Profit Margin |
44 |
% |
43 |
% |
- Revenue from one-time deconversion fees totaled
$13,052 for the first quarter, an increase of$5,976 compared to the prior year first quarter. Excluding total deconversion fees from both quarters, revenues increased 6% and gross margin increased 5% in the first quarter of fiscal 2017 compared to the same period in fiscal 2016. - First quarter fiscal 2016 included revenue of
$6,425 from Alogent, which was sold in the fourth quarter of fiscal 2016. Excluding Alogent from the prior year, revenues increased 9% and gross margin increased 11%. - For the first quarter of fiscal 2017, the bank systems and services segment revenue increased 9% to $257.8 million with a gross margin of 42% from $236.7 million with a gross margin of 40% in the same quarter last year. Excluding Alogent from fiscal 2016, bank systems and services segment revenue increased 12%. The credit union systems and services segment revenue increased 3% to $87.2 million with a gross margin of 47% for the first quarter of fiscal 2017 from $84.9 million and a gross margin of 50% in the same period a year ago.
Operating Expenses and Operating Income
Operating income increased 14% to
(Unaudited, In Thousands) |
Three Months Ended |
% |
|||||||
2016 |
2015 |
||||||||
Selling and Marketing |
$ |
22,127 |
$ |
21,751 |
2 |
% |
|||
Percentage of Total Revenue |
6 |
% |
7 |
% |
|||||
Research and Development |
19,739 |
18,554 |
6 |
% |
|||||
Percentage of Total Revenue |
6 |
% |
6 |
% |
|||||
General and Administrative |
16,982 |
17,113 |
(1) |
% |
|||||
Percentage of Total Revenue |
5 |
% |
5 |
% |
|||||
Total Operating Expenses |
58,848 |
57,418 |
2 |
% |
|||||
Operating Income |
$ |
91,417 |
$ |
80,537 |
14 |
% |
|||
Operating Margin |
26 |
% |
25 |
% |
- The increase in research and development costs was mostly due to increased salary and personnel costs.
- Excluding total deconversion fees from both quarters, operating income increased 7% in the first quarter fiscal 2017 compared to the same quarter a year ago.
Net Income
First quarter net income totaled
(Unaudited, In Thousands, Except Per Share Data) |
Three Months Ended |
% |
|||||||
2016 |
2015 |
||||||||
Income Before Income Taxes |
$ |
91,383 |
$ |
80,430 |
14 |
% |
|||
Provision for Income Taxes |
29,139 |
29,064 |
— |
% |
|||||
Net Income |
$ |
62,244 |
$ |
51,366 |
21 |
% |
|||
Diluted earnings per share |
$ |
0.79 |
$ |
0.64 |
24 |
% |
- Provision for income taxes increased slightly for the quarter, although the effective rate decreased to 31.9% of income before income taxes from 36.1% for the three months ending
September 30, 2015 . The decrease in the effective tax rate was primarily due to the adoption of ASU 2016-09 during the quarter, as well as the recognition of a tax benefit from the federal Research and Experimentation Credit ("R&E Credit"), which was not available during the first quarter of fiscal 2016. - Excluding deconversion fees, net income increased 14% in the first quarter fiscal 2017 compared to the same quarter a year ago.
- The adoption of ASU 2016-09 resulted in an increase in diluted earnings per share of
$0.03 for the current quarter.
According to
Balance Sheet and Cash Flow Review
- At
September 30, 2016 , cash and cash equivalents were consistent withSeptember 30, 2015 at$84.5 million . - Trade receivables totaled
$148.4 million atSeptember 30, 2016 , an increase from$147.7 million atSeptember 30, 2015 . - Current and long term debt has been paid off at
September 30, 2016 , and totaled$1.1 million a year ago. - Current deferred revenue increased to
$295.9 million atSeptember 30, 2016 , compared to$293.8 million a year ago. - Stockholders' equity increased to
$972.6 million atSeptember 30, 2016 , compared to$954.3 million a year ago.
Cash provided by operations totaled
(Unaudited, In Thousands) |
Three Months Ended |
||||||
2016 |
2015 |
||||||
Net income |
$ |
62,244 |
$ |
51,366 |
|||
Depreciation |
12,390 |
12,993 |
|||||
Amortization |
21,746 |
18,211 |
|||||
Other non-cash expenses |
9,174 |
3,784 |
|||||
Change in receivables |
105,495 |
97,926 |
|||||
Change in deferred revenue |
(51,186) |
(39,702) |
|||||
Change in other assets and liabilities |
(26,492) |
(17,768) |
|||||
Net cash provided by operating activities |
$ |
133,371 |
$ |
126,810 |
Cash used in investing activities for the first quarter of fiscal 2017 totaled
(Unaudited, In Thousands) |
Three Months Ended |
||||||
2016 |
2015 |
||||||
Payment for acquisitions, net of cash acquired |
$ |
— |
$ |
(8,275) |
|||
Capital expenditures |
(8,113) |
(12,908) |
|||||
Proceeds from the sale of assets |
777 |
38 |
|||||
Internal use software |
(4,328) |
(4,402) |
|||||
Computer software developed |
(20,237) |
(23,015) |
|||||
Net cash from investing activities |
$ |
(31,901) |
$ |
(48,562) |
- The
$8.1 million in capital expenditures was mainly for the purchase of computer equipment.
Financing activities used cash of
(Unaudited, In Thousands) |
Three Months Ended |
||||||
2016 |
2015 |
||||||
Repayments on credit facilities |
(200) |
(51,590) |
|||||
Purchase of treasury stock |
(61,338) |
(69,242) |
|||||
Dividends paid |
(21,857) |
(20,200) |
|||||
Net cash from issuance of stock and tax related to stock-based compensation |
(3,866) |
(1,044) |
|||||
Net cash from financing activities |
$ |
(87,261) |
$ |
(142,076) |
|||
Quarterly Conference Call
The company will hold a conference call on
About
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
Condensed Consolidated Statements of Income (Unaudited) |
||||||||||
(In Thousands, Except Per Share Data) |
Three Months Ended |
% Change |
||||||||
2016 |
2015 |
|||||||||
REVENUE |
||||||||||
License |
$ |
694 |
$ |
1,604 |
(57) |
% |
||||
Support and service |
333,046 |
307,746 |
8 |
% |
||||||
Hardware |
11,288 |
12,268 |
(8) |
% |
||||||
Total |
345,028 |
321,618 |
7 |
% |
||||||
COST OF SALES |
||||||||||
Cost of license |
252 |
181 |
39 |
% |
||||||
Cost of support and service |
185,892 |
174,714 |
6 |
% |
||||||
Cost of hardware |
8,619 |
8,768 |
(2) |
% |
||||||
Total |
194,763 |
183,663 |
6 |
% |
||||||
GROSS PROFIT |
150,265 |
137,955 |
9 |
% |
||||||
Gross Profit Margin |
44 |
% |
43 |
% |
||||||
OPERATING EXPENSES |
||||||||||
Selling and marketing |
22,127 |
21,751 |
2 |
% |
||||||
Research and development |
19,739 |
18,554 |
6 |
% |
||||||
General and administrative |
16,982 |
17,113 |
(1) |
% |
||||||
Total |
58,848 |
57,418 |
2 |
% |
||||||
OPERATING INCOME |
91,417 |
80,537 |
14 |
% |
||||||
INTEREST INCOME (EXPENSE) |
||||||||||
Interest income |
108 |
113 |
(4) |
% |
||||||
Interest expense |
(142) |
(220) |
(35) |
% |
||||||
Total |
(34) |
(107) |
(68) |
% |
||||||
INCOME BEFORE INCOME TAXES |
91,383 |
80,430 |
14 |
% |
||||||
PROVISION FOR INCOME TAXES |
29,139 |
29,064 |
— |
% |
||||||
NET INCOME |
$ |
62,244 |
$ |
51,366 |
21 |
% |
||||
Diluted net income per share |
$ |
0.79 |
$ |
0.64 |
||||||
Diluted weighted average shares outstanding |
78,844 |
80,735 |
||||||||
Consolidated Balance Sheet Highlights (Unaudited) |
||||||||||
(In Thousands) |
|
% Change |
||||||||
2016 |
2015 |
|||||||||
Cash and cash equivalents |
$ |
84,519 |
$ |
84,485 |
— |
% |
||||
Receivables |
148,428 |
147,652 |
1 |
% |
||||||
Total assets |
1,732,252 |
1,714,197 |
1 |
% |
||||||
Accounts payable and accrued expenses |
$ |
76,913 |
$ |
75,274 |
2 |
% |
||||
Current and long term debt |
— |
1,107 |
(100) |
% |
||||||
Deferred revenue |
469,868 |
493,354 |
(5) |
% |
||||||
Stockholders' Equity |
972,589 |
954,284 |
2 |
% |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jack-henry--associates-ends-first-quarter-fiscal-2017-with-7-increase-in-revenue-300358628.html
SOURCE
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