MONETT, Mo., Aug. 15, 2023 /PRNewswire/ — Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for the fiscal fourth quarter and full fiscal year ended June 30, 2023.
According to David Foss, Board Chair and CEO, “We are very pleased to report another quarter of record revenue and total sales bookings. We experienced strong growth across each of our segments and continue to see great demand for our financial technology solutions. Our sales pipeline is the highest it’s ever been entering a new fiscal year, and we’re continuing to innovate and deliver modern technology to community and regional financial institutions. Building on the success of our cloud-native Banno™ retail digital banking platform, we recently launched our Banno Business™ solution, and we were one of the first service providers to support the FedNow® instant payment service. As a well-rounded financial technology provider, we see significant opportunities to continue adding new and expanding existing client relationships through our diverse array of innovative solutions backed by our proven ability to deliver outstanding customer service.”
1 See tables below reconciling non-GAAP financial measures to GAAP.
2 The guidance assumes no acquisitions are made during fiscal year 2024.
3 See tables below reconciling fiscal year 2024 GAAP to non-GAAP guidance.
4 See tables below on page 12 reconciling Net Income to non-GAAP EBITDA.
Operating Results
Revenue, operating expenses, operating income, and net income for the three months and fiscal year ended June 30, 2023, compared to the three months and fiscal year ended June 30, 2022, were as follows (all dollar amounts in this section are in thousands, except for per share amounts):
Revenue (Unaudited)
(In Thousands)
Three Months Ended
June 30,
% Change
Year Ended
June 30,
% Change
2023
2022
2023
2022
Revenue
Services and Support
$ 311,931
$ 279,740
12 %
$ 1,214,701
$ 1,156,365
5 %
Percentage of Total Revenue
58 %
58 %
58 %
60 %
Processing
222,703
202,932
10 %
863,001
786,519
10 %
Percentage of Total Revenue
42 %
42 %
42 %
40 %
REVENUE
$ 534,634
$ 482,672
11 %
$ 2,077,702
$ 1,942,884
7 %
Services and support revenue increased for the three months ended June 30, 2023, primarily driven by growth in data processing and hosting fees of 10% and an increase of $9,511 in deconversion fees. Other drivers were increases in one-time revenues, including consulting fees and work orders, implementation fee revenues, and hardware revenue. Processing revenue increased for the three months ended June 30, 2023, primarily driven by growth in card processing revenue of 7% and payment processing revenue of 13%, including the impact from the Payrailz acquisition. Other drivers were increases in Jack Henry digital and other processing fee revenues.
Services and support revenue increased for the year ended June 30, 2023, primarily driven by growth in data processing and hosting fees of 12% partially offset by a 40% decrease in deconversion fees. Other drivers were increases in software usage and subscription fees and hardware revenue. Processing revenue increased for the year ended June 30, 2023, primarily driven by growth in card processing revenue of 8% and payment processing revenue of 12%, including the impact from the Payrailz acquisition. Other drivers were increases in Jack Henry digital and other processing fee revenues.
For the three months ended June 30, 2023, core segment revenue increased 11%, payments segment revenue increased 9%, complementary segment revenue increased 11%, and corporate and other segment revenue increased 18%. Non-GAAP adjusted core segment revenue increased 10%, non-GAAP adjusted payments segment revenue increased 7%, non-GAAP adjusted complementary segment revenue increased 8%, and non-GAAP adjusted corporate and other segment revenue increased 17% (see revenue lines of segment break-out tables on page 5 below).
For the year ended June 30, 2023, core segment revenue increased 5%, payments segment revenue increased 7%, complementary segment revenue increased 7%, and corporate and other segment revenue increased 23%. Non-GAAP adjusted core segment revenue increased 8%, non-GAAP adjusted payments segment revenue increased 7%, non-GAAP adjusted complementary segment revenue increased 8%, and non-GAAP adjusted corporate and other segment revenue increased 23% (see revenue lines of segment break-out tables on page 6 below).
Operating Expenses and Operating Income
(Unaudited, In Thousands)
Three Months Ended
June 30,
% Change
Year Ended
June 30,
% Change
2023
2022
2023
2022
Cost of Revenue
$ 308,868
$ 286,815
8 %
$ 1,219,062
$ 1,128,614
8 %
Percentage of Total Revenue5
58 %
59 %
59 %
58 %
Research and Development
38,498
33,961
13 %
142,678
121,355
18 %
Percentage of Total Revenue5
7 %
7 %
7 %
6 %
Selling, General, and Administrative
63,069
58,124
9 %
235,274
218,296
8 %
Percentage of Total Revenue5
12 %
12 %
11 %
11 %
OPERATING EXPENSES
410,435
378,900
8 %
1,597,014
1,468,265
9 %
OPERATING INCOME
$ 124,199
$ 103,772
20 %
$ 480,688
$ 474,619
1 %
Operating Margin5
23 %
21 %
23 %
24 %
Cost of revenue increased for the three months and year ended June 30, 2023, primarily due to higher direct costs consistent with increases in the related revenue, higher personnel costs, including benefits expenses, and increased amortization of intangible assets.
Research and development expense increased for the three months ended June 30, 2023, primarily due to higher personnel costs (net of capitalized personnel costs), including benefits expenses. Research and development expense increased for the year ended June 30, 2023, primarily due to higher personnel costs (net of capitalized personnel costs), including benefits expenses, and higher internal licenses and fees.
Selling, general, and administrative expense increased for the three months and year ended June 30, 2023, primarily due to higher personnel costs, including benefits expenses, as well as increased commissions expense.
Net Income
(Unaudited, In Thousands,
Except Per Share Data)
Three Months Ended
June 30,
% Change
Year Ended
June 30,
% Change
2023
2022
2023
2022
Income Before Income Taxes
$ 123,950
$ 102,792
21 %
$ 474,574
$ 472,267
— %
Provision for Income Taxes
26,177
22,366
17 %
107,928
109,351
(1) %
NET INCOME
$ 97,773
$ 80,426
22 %
$ 366,646
$ 362,916
1 %
Diluted earnings per share
$ 1.34
$ 1.10
22 %
$ 5.02
$ 4.94
2 %
Effective tax rates for the three months ended June 30, 2023, and 2022 were 21.1% and 21.8%, respectively. Effective tax rates for he year ended June 30, 2023, and 2022 were 22.7% and 23.2%, respectively.
According to Mimi Carsley, CFO and Treasurer, “For the fourth quarter of the fiscal year, our private cloud and processing services continued to drive strong revenue growth. While deconversion fees were up in our fourth fiscal quarter compared to a year ago, as expected they were still down significantly for the full year. Higher deconversion fees in the fourth quarter contributed to 11% revenue growth on a GAAP basis, with 8% growth on a non-GAAP basis. Operating income grew solidly by 20% on a GAAP basis and 19% on a non-GAAP basis, thanks to the entire Jack Henry team’s disciplined focus on cost management.”
5 Operating margin is calculated by dividing operating income by revenue. Operating margin plus operating expense components as a percentage of total revenue may not equal 100% due to rounding.
Impact of Non-GAAP Adjustments
The table below shows our revenue and operating income (in thousands) for the three months and fiscal year ended June 30, 2023, compared to the three months and fiscal year ended June 30, 2022, excluding the impacts of deconversion fees, acquisitions, and gain/loss on assets, net.
(Unaudited, In Thousands)
Three Months Ended June 30,
% Change
Year Ended June 30,
% Change
2023
2022
2023
2022
Revenue (GAAP)
$ 534,634
$ 482,672
11 %
$ 2,077,702
$ 1,942,884
7 %
Adjustments:
Deconversion fee revenue
(14,733)
(5,222)
(31,775)
(53,279)
Revenue from acquisition
(2,508)
—
(8,482)
—
NON-GAAP ADJUSTED REVENUE
$ 517,393
$ 477,450
8 %
$ 2,037,445
$ 1,889,605
8 %
Operating Income (GAAP)
$ 124,199
$ 103,772
20 %
$ 480,688
$ 474,619
1 %
Adjustments:
Operating income from deconversion fees
(13,054)
(3,980)
(27,513)
(47,002)
Operating loss from acquisition
4,351
—
13,985
—
(Gain)/Loss on assets, net
2,816
*
—
(4,567)
—
NON-GAAP ADJUSTED OPERATING INCOME
$ 118,312
$ 99,792
19 %
$ 462,593
$ 427,617
8 %
*The loss on assets, net, for the three months ended June 30, 2023, consisted of two facility leases that the company abandoned during the quarter.
The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.
Three Months Ended June 30, 2023
(Unaudited, In Thousands)
Core
Payments
Complementary
Corporate and Other
Total
REVENUE
$ 168,747
$ 197,473
$ 151,124
$ 17,290
$ 534,634
Non-GAAP adjustments*
(4,676)
(6,018)
(6,330)
(217)
(17,241)
NON-GAAP ADJUSTED REVENUE
164,071
191,455
144,794
17,073
517,393
COST OF REVENUE
71,262
107,370
59,971
70,265
308,868
Non-GAAP adjustments**
(256)
(5,742)
(270)
(4)
(6,272)
NON-GAAP ADJUSTED COST OF REVENUE
71,006
101,628
59,701
70,261
302,596
NON-GAAP ADJUSTED SEGMENT INCOME
$ 93,065
$ 89,827
$ 85,093
$ (53,188)
Research and Development
38,498
Selling, General, and Administrative
63,069
Non-GAAP adjustments unassigned to a segment***
(5,082)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES
399,081
NON-GAAP ADJUSTED OPERATING INCOME
$ 118,312
*Revenue non-GAAP adjustments for the Core, Complementary, and Corporate and Other segments were deconversion fee revenue. Revenue non-GAAP adjustments for the Payments segment were deconversion fee revenue of $3,510 and acquisition revenue of $2,508.
**Cost of revenue non-GAAP adjustments for the Core and Complementary segments were deconversion fee costs. Cost of revenue non-GAAP adjustments for the Payments and Corporate and Other segments were $5,660 and $1, respectively, related to the acquisition, and $82 and $3, respectively, related to deconversion fees.
***Non-GAAP adjustments unassigned to a segment were $2,816 related to a loss on assets, net, $1,198 related to the acquisition, and $1,068 related to deconversion fees.
Three Months Ended June 30, 2022
(Unaudited, In Thousands)
Core
Payments
Complementary
Corporate and Other
Total
REVENUE (GAAP)
$ 151,480
$ 180,454
$ 136,107
$ 14,631
$ 482,672
Non-GAAP adjustments*
(1,872)
(1,236)
(2,035)
(79)
(5,222)
NON-GAAP ADJUSTED REVENUE
149,608
179,218
134,072
14,552
477,450
COST OF REVENUE
63,553
98,891
58,090
66,281
286,815
Non-GAAP adjustments**
(341)
(122)
(260)
(3)
(726)
NON-GAAP ADJUSTED COST OF REVENUE
63,212
98,769
57,830
66,278
286,089
NON-GAAP ADJUSTED SEGMENT INCOME
$ 86,396
$ 80,449
$ 76,242
$ (51,726)
Research and Development
33,961
Selling, General, and Administrative
58,124
Non-GAAP adjustments unassigned to a segment***
(516)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES
377,658
NON-GAAP ADJUSTED OPERATING INCOME
$ 99,792
*Revenue non-GAAP adjustments were all deconversion fee revenues.
**Cost of revenue non-GAAP adjustments were all related to deconversion fees.
*** Non-GAAP adjustments unassigned to a segment were all related to deconversion fees.
Year Ended June 30, 2023
(Unaudited, In Thousands)
Core
Payments
Complementary
Corporate and Other
Total
Revenue
$ 656,164
$ 767,339
$ 583,893
$ 70,306
$ 2,077,702
Non-GAAP adjustments*
(10,924)
(16,406)
(12,649)
(278)
(40,257)
Non-GAAP Adjusted Revenue
645,240
750,933
571,244
70,028
2,037,445
Cost of Revenue
283,531
423,474
239,044
273,013
1,219,062
Non-GAAP adjustments**
(913)
(18,407)
(807)
(113)
(20,240)
Non-GAAP Adjusted Cost of Revenue
282,618
405,067
238,237
272,900
1,198,822
Non-GAAP Adjusted Segment Income
$ 362,622
$ 345,866
$ 333,007
$ (202,872)
Research and Development
142,678
Selling, General, and Administrative
235,274
Non-GAAP adjustments unassigned to a segment***
(1,922)
Non-GAAP Total Adjusted Operating Expenses
1,574,852
Non-GAAP Adjusted Operating Income
$ 462,593
*Revenue non-GAAP adjustments for the Core, Complementary, and Corporate and Other segments were deconversion fee revenue. Revenue non-GAAP adjustments for the Payments segment were acquisition revenue of $8,482 and deconversion fee revenue of $7,924.
**Cost of revenue non-GAAP adjustments for the Core and Complementary segments were deconversion fee costs. Cost of revenue non-GAAP adjustments for the Payments and Corporate and Other segments were $18,104 and $90, respectively, related to the acquisition, and $303 and $23, respectively, related to deconversion fees.
***Non-GAAP adjustments unassigned to a segment were $4,273 related to the acquisition and $2,216 related to deconversion fees partially offset by $(4,567) related to a gain on assets, net.
Year Ended June 30, 2022
(Unaudited, In Thousands)
Core
Payments
Complementary
Corporate and Other
Total
Revenue
$ 622,442
$ 719,068
$ 544,244
$ 57,130
$ 1,942,884
Non-GAAP adjustments*
(23,048)
(14,319)
(15,589)
(323)
(53,279)
Non-GAAP Adjusted Revenue
599,394
704,749
528,655
56,807
1,889,605
Cost of Revenue
261,585
386,409
226,229
254,391
1,128,614
Non-GAAP adjustments**
(1,719)
(439)
(1,309)
(325)
(3,792)
Non-GAAP Adjusted Cost of Revenue
259,866
385,970
224,920
254,066
1,124,822
Non- GAAP Adjusted Segment Income
$ 339,528
$ 318,779
$ 303,735
$ (197,259)
Research and Development
121,355
Selling, General, and Administrative
218,296
Non-GAAP adjustments unassigned to a segment***
(2,485)
Non-GAAP Total Adjusted Operating Expenses
1,461,988
Non-GAAP Adjusted Operating Income
$ 427,617
*Revenue non-GAAP adjustments were all deconversion fee revenues.
**Cost of revenue non-GAAP adjustments were all related to deconversion fees.
*** Non-GAAP adjustments unassigned to a segment were all related to deconversion fees.
The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2024. Non-GAAP guidance excludes the impacts of deconversion fee revenue and related operating expenses, acquisition revenue and costs related to the August 31, 2022 Payrailz acquisition, costs related to the July 2023 voluntary early departure incentive program, and assumes no acquisitions or dispositions are made during fiscal year 2024.
GAAP to Non-GAAP GUIDANCE (In Millions, except per share data)
Annual FY24*
Low
High
REVENUE (GAAP)
$ 2,208
$ 2,229
Growth
6.3 %
7.3 %
Deconversion fees**
$ 16
$ 16
Acquisition
3
3
NON-GAAP ADJUSTED REVENUE*
$ 2,190
$ 2,210
Non-GAAP Adjusted Growth
7.0 %
8.0 %
OPERATING EXPENSES (GAAP)
$ 1,730
$ 1,744
Growth
8.3 %
9.2 %
Deconversion costs**
$ 3
$ 3
Acquisition costs
4
4
Voluntary Early Departure Incentive Program***
18
17
NON-GAAP ADJUSTED OPERATING EXPENSES*
$ 1,705
$ 1,720
Non-GAAP Adjusted Growth
6.7 %
7.7 %
OPERATING INCOME (GAAP)
$ 478
$ 484
Growth
(0.6) %
0.8 %
OPERATING MARGIN (GAAP)
21.6 %
21.7 %
NON-GAAP ADJUSTED OPERATING INCOME
$ 485
$ 490
Non-GAAP Adjusted Growth
8.0 %
9.3 %
NON-GAAP ADJUSTED OPERATING MARGIN
22.1 %
22.2 %
EPS (GAAP)
$ 4.92
$ 4.99
Growth
(2.0) %
(0.6) %
*GAAP to Non-GAAP revenue and operating expenses may not foot due to rounding.
**Deconversion fee revenue and related operating expenses are estimated for fiscal year 2024 based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on August 3, 2023.
***This cost relates to the group of employees who accepted a voluntary early departure incentive program offered by the company in July 2023 to certain employees of a specified minimum age who had reached a specified minimum number of years of service with the company.
Balance Sheet and Cash Flow Review
At June 30, 2023, cash and cash equivalents decreased to $12 million from $49 million at June 30, 2022.
Trade receivables totaled $361 million at June 30, 2023, compared to $348 million at June 30, 2022.
The Company had $275 million of borrowings at June 30, 2023, and $115 million at June 30, 2022.
Total deferred revenue decreased to $400 million at June 30, 2023, compared to $402 million a year ago.
Stockholders’ equity increased to $1,609 million at June 30, 2023, compared to $1,382 million a year ago.
*See table below for Net Cash Provided by Operating Activities and on page 12 for Return on Average Shareholders’ Equity. Tables reconciling the non-GAAP measures Free Cash Flow and Return on Invested Capital (ROIC) to GAAP measures are also on page 12. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and ROIC.
The following table summarizes net cash from operating activities:
(Unaudited, In Thousands)
Year Ended June 30,
2023
2022
Net income
$ 366,646
$ 362,916
Depreciation
48,720
50,789
Amortization
142,006
126,835
Change in deferred income taxes
(48,199)
31,872
Other non-cash expenses
24,094
25,180
Change in receivables
(12,067)
(41,508)
Change in deferred revenue
(10,547)
6,572
Change in other assets and liabilities
(129,094)
(58,025)
NET CASH FROM OPERATING ACTIVITIES
$ 381,559
$ 504,631
The following table summarizes net cash from investing activities:
(Unaudited, In Thousands)
Year Ended June 30,
2023
2022
Payment for acquisitions, net of cash acquired*
$ (229,628)
$ —
Capital expenditures
(39,179)
(34,659)
Proceeds from dispositions
27,939
45
Purchased software
(1,685)
(8,491)
Computer software developed
(166,120)
(148,239)
Purchase of investments
(1,000)
(5,000)
NET CASH FROM INVESTING ACTIVITIES
$ (409,673)
$ (196,344)
*During first quarter fiscal 2023, the Company completed its previously announced acquisition of Payrailz.
The following table summarizes net cash from financing activities:
(Unaudited, In Thousands)
Year Ended June 30,
2023
2022
Borrowings on credit facilities*
$ 810,000
$ 332,000
Repayments on credit facilities and financing leases
(650,060)
(317,127)
Purchase of treasury stock
(25,000)
(193,916)
Dividends paid
(147,237)
(139,070)
Net cash from issuance of stock and tax related to stock-based compensation
3,867
7,621
NET CASH FROM FINANCING ACTIVITIES
$ (8,430)
$ (310,492)
*The Company’s acquisition of Payrailz during first quarter fiscal 2023 was primarily funded by new borrowings under the Company’s credit facilities.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP include the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted operating expenses, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, and return on invested capital (ROIC).
We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. Adjusted revenue, adjusted operating income, adjusted operating margin, adjusted segment income, adjusted cost of revenue, and adjusted operating expenses, eliminate one-time deconversion fees and associated costs, the effects of acquisitions and divestitures, and gain/loss on the disposal of assets, all of which management believes are not indicative of the Company’s operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest expense, taxes, depreciation, and amortization, adjusted for net income before the effect of interest expense, taxes, depreciation, and amortization attributable to eliminated one-time deconversion fees, acquisitions and divestitures, and gain/loss on the disposal of assets. Free cash flow is defined as net cash from operating activities, less capitalized expenditures, internal use software, and capitalized software, plus proceeds from the sale of assets. ROIC is defined as net income divided by average invested capital, which is the average of beginning and ending long-term debt and stockholders’ equity for a given period. Management believes that non-GAAP EBITDA is an important measure of the Company’s overall operating performance and excludes certain costs and other transactions that management deems one time or non-operational in nature; free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions; and ROIC is a measure of the Company’s allocation efficiency and effectiveness of its invested capital. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company’s performance.
Non-GAAP financial measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and therefore, are unlikely to be comparable with calculations of similar measures for other companies.
Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Reconciliations of the non-GAAP financial measures to related GAAP measures are included.
Quarterly Conference Call
The Company will hold a conference call on August 16, 2023, at 7:45 a.m. Central Time, and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/corporate-events-and-presentations and will remain available for one year.
About Jack Henry & Associates, Inc.®
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity — offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 47 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com. The Company will hold a conference call on August 16, 2023, at 7:45 a.m. Central Time, and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/corporate-events-and-presentations and will remain available for one year.
Statements made in this news release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in the Company’s Securities and Exchange Commission filings, including the Company’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
Condensed Consolidated Statements of Income (Unaudited)
(In Thousands, except per share data)
Three Months Ended June 30,
% Change
Year Ended June 30,
% Change
2023
2022
2023
2022
REVENUE
$ 534,634
$ 482,672
11 %
$ 2,077,702
$ 1,942,884
7 %
Cost of Revenue
308,868
286,815
8 %
1,219,062
1,128,614
8 %
Research and Development
38,498
33,961
13 %
142,678
121,355
18 %
Selling, General, and Administrative
63,069
58,124
9 %
235,274
218,296
8 %
EXPENSES
410,435
378,900
8 %
1,597,014
1,468,265
9 %
OPERATING INCOME
124,199
103,772
20 %
480,688
474,619
1 %
Interest income
5,176
17
30,347 %
8,959
32
27,897 %
Interest expense
(5,425)
(997)
444 %
(15,073)
(2,384)
532 %
Interest Income (Expense), net
(249)
(980)
(75) %
(6,114)
(2,352)
160 %
INCOME BEFORE INCOME TAXES
123,950
102,792
21 %
474,574
472,267
— %
Provision for Income Taxes
26,177
22,366
17 %
107,928
109,351
(1) %
NET INCOME
$ 97,773
$ 80,426
22 %
$ 366,646
$ 362,916
1 %
Diluted net income per share
$ 1.34
$ 1.10
$ 5.02
$ 4.94
Diluted weighted average shares outstanding
73,027
73,086
73,096
73,486
Consolidated Balance Sheet Highlights (Unaudited)
(In Thousands)
June 30,
% Change
2023
2022
Cash and cash equivalents
$ 12,243
$ 48,787
(75) %
Receivables
361,252
348,072
4 %
Total assets
2,773,826
2,455,564
13 %
Accounts payable and accrued expenses
$ 191,785
$ 213,076
(10) %
Current and long-term debt
275,000
115,067
139 %
Deferred revenue
399,729
402,172
(1) %
Stockholders’ equity
1,608,510
1,381,623
16 %
Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)
Three Months Ended June 30,
% Change
Year Ended June 30,
% Change
(in thousands)
2023
2022
2023
2022
Net income
$ 97,773
$ 80,426
$ 366,646
$ 362,916
Interest, net
249
981
6,114
2,351
Taxes
26,177
22,366
107,928
109,351
Depreciation and amortization
48,377
44,722
190,726
177,624
Less: Net income before interest expense, taxes,
depreciation and amortization attributable to eliminated
one-time deconversions, acquisitions, and gain/loss on assets, net.*
(9,006)
(3,980)
(28,190)
(47,002)
NON-GAAP EBITDA
$ 163,570
$ 144,515
13 %
$ 643,224
$ 605,240
6 %
*The fiscal fourth quarter adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions, a
loss on assets, net, and the acquisition, and were $13,054, $(2,816), and $(1,232), respectively, and the prior fiscal year fourth quarter adjustment
was for deconversions only. The fiscal year adjustments for net income before interest expense, taxes, depreciation and amortization were for
deconversions, a gain on assets, net, and the acquisition, and were $27,513, $4,567, and $(3,890), respectively, and the prior fiscal year
adjustment was for deconversions only.
Calculation of Free Cash Flow (Non-GAAP)
Year Ended June 30,
(in thousands)
2023
2022
Net cash from operating activities
$ 381,559
$ 504,631
Capitalized expenditures
(39,179)
(34,659)
Internal use software
(1,685)
(8,491)
Proceeds from sale of assets
27,939
45
Capitalized software
(166,120)
(148,239)
FREE CASH FLOW
$ 202,514
$ 313,287
Calculation of the Return on Average Shareholders’ Equity
June 30,
( in thousands)
2023
2022
Net income (trailing four quarters)
$ 366,646
$ 362,916
Average stockholder’s equity (period beginning and ending balances)
1,495,066
1,350,457
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY
24.5 %
26.9 %
Calculation of Return on Invested Capital (ROIC) (Non-GAAP)
June 30,
(in thousands)
2023
2022
Net income (trailing four quarters)
$ 366,646
$ 362,916
Average stockholder’s equity (period beginning and ending balances)
1,495,066
1,350,457
Average current maturities of long-term debt (period beginning and ending balances)
34
89
Average long-term debt (period beginning and ending balances)
View original content to download multimedia:https://www.prnewswire.com/news-releases/jack-henry–associates-inc-reports-fourth-quarter-and-full-year-fiscal-2023-results-301901605.html
