PART I [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, showing revenue growth but declining net income due to acquisition costs [Condensed Consolidated Balance Sheet Highlights (in thousands)](index=4&type=section&id=ITEM%201.%20Financial%20Statements) | Account | Dec 31, 2022 | June 30, 2022 | | :--- | :--- | :--- | | Total Assets | $2,578,277 | $2,455,564 | | Total Liabilities | $1,067,287 | $1,073,941 | | Total Stockholders' Equity | $1,510,990 | $1,381,623 | [Condensed Consolidated Statement of Income Highlights (in thousands, except per share data)](index=4&type=section&id=ITEM%201.%20Financial%20Statements) | Metric | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Six Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $505,314 | $493,896 | $1,034,516 | $981,952 | | Operating Income | $107,376 | $125,662 | $248,100 | $259,257 | | Net Income | $80,775 | $95,670 | $187,324 | $197,783 | | Diluted EPS | $1.10 | $1.30 | $2.56 | $2.68 | [Condensed Consolidated Statement of Cash Flows Highlights (in thousands)](index=4&type=section&id=ITEM%201.%20Financial%20Statements) | Cash Flow Activity | Six Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net cash from operating activities | $190,711 | $197,351 | | Net cash from investing activities | ($301,192) | ($101,052) | | Net cash from financing activities | $87,457 | ($118,171) | | Net Change in Cash | ($23,024) | ($21,872) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies, revenue disaggregation, the Payrailz acquisition, credit facility, and remaining performance obligations - The company is a financial technology provider serving approximately **7,800** financial institutions and corporate entities with solutions for transaction processing, business automation, and information management[20](index=20&type=chunk) [Disaggregation of Revenue (in thousands)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) | Revenue Type | Three Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Services & Support | $290,700 | $610,849 | | Processing | $214,614 | $423,667 | | **Total Revenue** | **$505,314** | **$1,034,516** | - As of December 31, 2022, the company has estimated future revenue from remaining performance obligations totaling **$5.65 billion**, with approximately **25%** expected to be recognized in the next 12 months[44](index=44&type=chunk) - On August 31, 2022, the company acquired Payrailz, LLC for a final purchase price of **$230.2 million** to expand its digital payment solutions, resulting in **$117.3 million** of goodwill[79](index=79&type=chunk)[82](index=82&type=chunk) - The company entered into a new five-year, **$600 million** senior unsecured credit agreement on August 31, 2022, replacing its prior facility, with **$275 million** outstanding as of December 31, 2022[61](index=61&type=chunk)[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, noting revenue growth but a decline in net income due to increased operating expenses and reduced deconversion fees [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q2 FY2023 saw a 2% revenue increase to **$505.3 million** but a 15% operating income decrease to **$107.4 million**, primarily due to higher costs and lower deconversion fees - Q2 FY2023 revenue increased **2%** YoY, with a **6%** increase when excluding deconversion fees and acquisition revenue[102](index=102&type=chunk) - Q2 FY2023 operating income decreased **15%** YoY, but increased **4%** when excluding deconversion fees, acquisition operating loss, and gain on asset disposal[104](index=104&type=chunk) - Q2 FY2023 net income decreased **16%** YoY, but increased **5%** after adjustments for deconversion fees and acquisition impacts[106](index=106&type=chunk) - A rapid slowdown in financial institution merger and acquisition activity led to a significant decrease in deconversion fee revenue, impacting the quarter's results[112](index=112&type=chunk) [Reportable Segment Discussion](index=26&type=section&id=Reportable%20Segment%20Discussion) This section details the performance of the company's four segments, highlighting varied revenue growth rates and impacts from deconversion fees and conference timing [Segment Revenue and Cost of Revenue (Q2 FY2023 vs Q2 FY2022, in thousands)](index=26&type=section&id=Reportable%20Segment%20Discussion) | Segment | Revenue (Q2'23) | Revenue (Q2'22) | % Change | Cost of Revenue (Q2'23) | Cost of Revenue (Q2'22) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Core | $155,390 | $154,878 | 0% | $68,324 | $64,554 | 6% | | Payments | $191,487 | $185,505 | 3% | $108,071 | $96,966 | 11% | | Complementary | $142,295 | $136,540 | 4% | $59,270 | $55,982 | 6% | | Corporate & Other | $16,142 | $16,973 | (5)% | $68,924 | $65,323 | 6% | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Cash decreased due to significant investing activities, including the Payrailz acquisition and software development, funded by a new **$600 million** credit facility - Cash provided by operating activities for the first six months of fiscal 2023 was **$190.7 million**, a **3%** decrease from the prior year[142](index=142&type=chunk) - Cash used in investing activities totaled **$301.2 million**, primarily for the Payrailz acquisition (**$229.6 million**) and software development (**$81.0 million**)[143](index=143&type=chunk) - The company entered a new **$600 million** credit facility and had an outstanding balance of **$275 million** as of December 31, 2022, primarily to fund the Payrailz acquisition[152](index=152&type=chunk)[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are credit risk and interest rate risk on its **$275 million** variable-rate debt, with a 1% rate increase costing **$2.75 million** annually - The company is exposed to interest rate risk on its **$275 million** of outstanding variable-rate debt[158](index=158&type=chunk) - A **1%** increase in the borrowing rate would increase annual interest expense by approximately **$2.75 million**[158](index=158&type=chunk) [Controls and Procedures](index=30&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures are effective to provide reasonable assurance of timely and accurate reporting[159](index=159&type=chunk) - No changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the company's internal controls were identified during the quarter[160](index=160&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings not expected to materially affect its consolidated financial statements - Current lawsuits are not expected to have a material adverse effect on the company's financial statements[161](index=161&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details stock repurchase activity, noting no shares were repurchased during the quarter, with **3,947,713** shares remaining under authorization [Issuer Purchases of Equity Securities (Quarter Ended Dec 31, 2022)](index=30&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) | Period | Total Number of Shares Purchased | Average Price of Share | Maximum Number of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | Oct 2022 | — | — | 3,947,713 | | Nov 2022 | — | — | 3,947,713 | | Dec 2022 | — | — | 3,947,713 | | **Total** | **—** | **—** | **3,947,713** | [Exhibits](index=31&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in XBRL format - The report includes CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and financial data in XBRL format[165](index=165&type=chunk)

Jack Henry & Associates, Inc. (NASDAQ:JKHY) Q2 2023 Earnings Conference Call February 8, 2023 8:45 AM ET Company Participants Vance Sherard - CFA, Investor Relations David Foss - Board Chair and Chief Executive Officer Mimi Carsley - Chief Financial Officer and Treasurer Greg Adelson - President and Chief Operating Officer Conference Call Participants Vasundhara Govil - Keefe, Bruyette, & Woods, Inc. David Togut - Evercore ISI Kartik Mehta - Northcoast Research John Davis - Raymond James James Faucette - Mo ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%2E%20FINANCIAL%20INFORMATION) This section details the company's financial performance, management's analysis, market risk exposures, and internal control effectiveness for the quarter [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) The company's Q1 FY2023 financial statements reflect an 8% revenue increase to **$529.2 million** and a 4% net income rise to **$106.5 million** [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.58 billion** by September 30, 2022, primarily due to the Payrailz acquisition, with liabilities at **$1.12 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | June 30, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$2,578,460** | **$2,455,564** | | Cash and cash equivalents | $31,970 | $48,787 | | Computer software, net | $534,488 | $410,957 | | Goodwill | $804,155 | $687,458 | | **Total Liabilities** | **$1,117,322** | **$1,073,941** | | Debt, net of current maturities | $245,000 | $115,000 | | **Total Stockholders' Equity** | **$1,461,138** | **$1,381,623** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 FY2023 revenue grew 8% to **$529.2 million**, operating income rose 5% to **$140.7 million**, and net income increased 4% to **$106.5 million** Statement of Income Summary (in thousands, except per share data) | Metric | Q1 FY2023 (ended Sep 30, 2022) | Q1 FY2022 (ended Sep 30, 2021) | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | **$529,202** | **$488,056** | **8.4%** | | Operating Income | $140,723 | $133,595 | 5.3% | | **Net Income** | **$106,549** | **$102,114** | **4.3%** | | Diluted EPS | $1.46 | $1.38 | 5.8% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2023 operating cash flow increased to **$136.8 million**, investing activities used **$249.6 million** for acquisitions, and financing provided **$95.9 million** Cash Flow Summary (in thousands) | Cash Flow Category | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash from operating activities | $136,831 | $106,549 | | Net cash from investing activities | ($249,594) | ($46,451) | | Net cash from financing activities | $95,946 | ($66,839) | | **Net Change in Cash** | **($16,817)** | **($6,741)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue recognition, the **$229.6 million** Payrailz acquisition, and segment performance, showing growth in both Services & Support and Processing revenue - As of September 30, 2022, the company has estimated future revenue from remaining performance obligations totaling **$5.64 billion**, with approximately **26%** expected to be recognized in the next 12 months[45](index=45&type=chunk) - On August 31, 2022, the company acquired Payrailz for **$229.6 million** in cash, funded by its revolving line of credit, to expand its digital financial management solutions[76](index=76&type=chunk)[77](index=77&type=chunk) - The Payrailz acquisition resulted in the recognition of **$116.7 million** in goodwill, allocated to the Payments segment, and **$119.9 million** in identifiable intangible assets, primarily computer software[78](index=78&type=chunk)[79](index=79&type=chunk) Revenue by Type (in thousands) | Revenue Type | Q1 FY2023 | Q1 FY2022 | | :--- | :--- | :--- | | Services & Support | $320,149 | $297,494 | | Processing | $209,053 | $190,562 | | **Total Revenue** | **$529,202** | **$488,056** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported an 8% revenue increase for Q1 FY2023, with operating expenses up 10%, and the Payrailz acquisition funded by increased credit facility borrowings [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q1 FY2023 total revenue grew 8%, driven by Services and Support (8%) and Processing (10%), while operating expenses increased 10% - Total revenue increased by **8%** (**$41.1 million**) in Q1 FY2023 compared to Q1 FY2022, primarily from growth in private/public cloud, card processing, and transaction/digital revenues[94](index=94&type=chunk) - Operating expenses increased **10%** year-over-year, driven by higher personnel costs, increased direct costs associated with revenue growth, and a rise in travel expenses[95](index=95&type=chunk) - Services and Support revenue grew **8%**, driven by cloud processing, software usage, and implementation fees, while Processing revenue grew **10%**, led by higher card processing and Jack Henry digital (Banno) revenue[100](index=100&type=chunk)[101](index=101&type=chunk) [Reportable Segment Discussion](index=24&type=section&id=Reportable%20Segment%20Discussion) All four segments reported revenue growth in Q1 FY2023, with Core up 6% to **$175.1 million** and Payments up 8% to **$186.5 million** Segment Revenue Performance (in thousands) | Segment | Q1 FY2023 Revenue | Q1 FY2022 Revenue | % Change | | :--- | :--- | :--- | :--- | | Core | $175,124 | $165,285 | 6% | | Payments | $186,540 | $172,591 | 8% | | Complementary | $148,350 | $137,778 | 8% | | Corporate and Other | $19,188 | $12,402 | 55% | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is strong with operating cash flow up 28% to **$136.8 million**, and a new **$600 million** credit facility funded the **$229.6 million** Payrailz acquisition - Cash provided by operating activities increased **28%** to **$136.8 million** for the first three months of fiscal 2023 compared to the prior year[116](index=116&type=chunk) - The company entered into a new five-year, **$600 million** senior unsecured credit agreement, which can be increased to **$1 billion**, with **$245 million** outstanding as of September 30, 2022[125](index=125&type=chunk) - The increase in borrowings was primarily to fund the acquisition of Payrailz for **$229.6 million** in cash[120](index=120&type=chunk)[121](index=121&type=chunk)[127](index=127&type=chunk) - No shares of common stock were repurchased during the quarter ended September 30, 2022, with remaining authority to repurchase up to **3.95 million** additional shares[123](index=123&type=chunk)[136](index=136&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risk is interest rate fluctuations on **$245 million** variable-rate debt, where a 1% increase raises annual interest expense by **$2.45 million** - The company is exposed to interest rate risk on its **$245 million** of outstanding variable-rate debt[131](index=131&type=chunk) - A **1%** increase in the borrowing rate would increase annual interest expense by approximately **$2.45 million**[131](index=131&type=chunk) [Controls and Procedures](index=27&type=section&id=ITEM%204.%20Controls%20and%20Procedures) CEO and CFO confirmed effective disclosure controls as of September 30, 2022, with no material changes in internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[132](index=132&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[133](index=133&type=chunk) [PART II. OTHER INFORMATION](index=27&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, equity security sales, and exhibits [Legal Proceedings](index=27&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, but management anticipates no material adverse effect on its consolidated financial statements - The company states that any liabilities from current lawsuits are not expected to have a material adverse effect on its financial statements[134](index=134&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No equity securities were repurchased during Q1 FY2023, with remaining authority to repurchase up to **3.95 million** additional shares Issuer Purchases of Equity Securities (Quarter ended Sep 30, 2022) | Period | Total Number of Shares Purchased | Average Price of Share | Maximum Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | July 2022 | — | — | 3,947,713 | | August 2022 | — | — | 3,947,713 | | September 2022 | — | — | 3,947,713 | | **Total** | **—** | **—** | **3,947,713** | [Exhibits](index=29&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Amended and Restated Credit Agreement and CEO/CFO certifications - Key exhibits filed include the Amended and Restated Credit Agreement dated August 31, 2022, and certifications by the CEO and CFO[139](index=139&type=chunk)

Jack Henry & Associates, Inc. (NASDAQ:JKHY) Q1 2023 Earnings Conference Call November 9, 2022 8:45 AM ET Company Participants Vance Sherard - Vice President of Investor Relations David Foss - Chairman and CEO Mimi Carsley - CFO and Treasurer Greg Adelson - President and COO Conference Call Participants Vasundhara Govil - Keefe, Bruyette, & Woods, Inc. Rayna Kumar - UBS David Togut - Evercore ISI Nik Cremo - Credit Suisse Kartik Mehta - Northcoast Research Peter Heckmann - D.A. Davidson Dominick Gabriele ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ________________ Commission file number 0-14112 JACK HENRY & ASS ...

Jack Henry & Associates, Inc. (NASDAQ:JKHY) Q4 2022 Earnings Conference Call August 17, 2022 8:45 AM ET Company Participants David Foss - Chairman and Chief Executive Officer Kevin Williams - Chief Financial Officer and Treasurer Conference Call Participants Vasundhara Govil - KBW Rayna Kumar - UBS John Davis - Raymond James & Associates Peter Heckmann - D.A. Davidson David Koning - Robert W. Baird Charles Nabhan - Stephens Inc. Dominick Gabriele - Oppenheimer Nik Cremo - Credit Suisse Ken Suchoski - Autono ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ________________ Commission file number 0-14112 JACK HENRY & ASSOCIATES, INC. (Exact name of registrant as specified in its charter) Delaware 43-112838 ...

Jack Henry & Associates, Inc. (NASDAQ:JKHY) Q3 2022 Earnings Conference Call May 4, 2022 8:45 AM ET Company Participants Kevin Williams - CFO & Treasurer David Foss - Chairman & CEO Conference Call Participants Rayna Kumar - UBS Kartik Mehta - Northcoast Research Partners David Togut - Evercore ISI Vasundhara Govil - KBW Kenneth Suchoski - Autonomous Research Dominick Gabriele - Oppenheimer Charles Nabhan - Stephens Inc. Peter Heckmann - D.A. Davidson & Co. John Davis - Raymond James & Associates David Koni ...

[FORM 10-Q Cover Page](index=1&type=section&id=FORM%2010-Q%20Cover%20Page) This section identifies the document as a Quarterly Report on Form 10-Q for Jack Henry & Associates, Inc., including key stock information - The document is a Quarterly Report on Form 10-Q for Jack Henry & Associates, Inc. for the quarterly period ended December 31, 2021[1](index=1&type=chunk)[2](index=2&type=chunk) - The registrant's common stock (**JKHY**) is registered on the Nasdaq Global Select Market[3](index=3&type=chunk) - As of January 28, 2022, the Registrant had **72,825,033 shares of Common Stock outstanding**[4](index=4&type=chunk) [FORWARD LOOKING STATEMENTS](index=2&type=section&id=FORWARD%20LOOKING%20STATEMENTS) This section outlines the nature of forward-looking statements within the report, emphasizing inherent risks and the company's disclaimer regarding updates - The report contains forward-looking statements based on management's current beliefs and assumptions, subject to inherent risks and uncertainties that could cause actual results to differ materially[7](index=7&type=chunk) - The Company expressly disclaims any obligation to publicly update or revise any forward-looking statement[7](index=7&type=chunk) [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Jack Henry & Associates, Inc., including the balance sheets, statements of income, statements of changes in stockholders' equity, and statements of cash flows, along with comprehensive notes detailing accounting policies and specific financial items [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's financial position, including assets, liabilities, and equity, at specific reporting dates Condensed Consolidated Balance Sheets Summary (in Thousands) | Metric | Dec 31, 2021 | Jun 30, 2021 | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :------------- | | Total Assets | $2,280,802 | $2,336,156 | -2.37% | | Total Liabilities | $1,008,806 | $1,016,864 | -0.79% | | Total Stockholders' Equity | $1,271,996 | $1,319,292 | -3.59% | | Cash and cash equivalents | $29,120 | $50,992 | -42.90% | | Receivables, net | $236,096 | $306,564 | -22.99% | | Deferred revenues (current) | $208,733 | $319,748 | -34.72% | | Debt, net of current maturities | $240,026 | $100,083 | 139.84% | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Details the company's revenues, expenses, operating income, and net income for the reported periods Three Months Ended December 31 (in Thousands, Except Per Share Data) | Metric | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Revenue | $493,896 | $422,361 | 17.00% | | Total Expenses | $368,234 | $328,729 | 11.90% | | Operating Income | $125,662 | $93,632 | 34.22% | | Net Income | $95,670 | $71,982 | 32.91% | | Basic earnings per share | $1.30 | $0.94 | 38.30% | | Diluted earnings per share | $1.30 | $0.94 | 38.30% | Six Months Ended December 31 (in Thousands, Except Per Share Data) | Metric | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Revenue | $981,952 | $874,161 | 12.38% | | Total Expenses | $722,695 | $662,941 | 9.01% | | Operating Income | $259,257 | $211,220 | 22.74% | | Net Income | $197,783 | $163,198 | 21.19% | | Basic earnings per share | $2.68 | $2.14 | 25.23% | | Diluted earnings per share | $2.68 | $2.13 | 25.82% | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Outlines the changes in the company's equity, including net income, dividends, and share repurchases Key Changes in Stockholders' Equity (Six Months Ended December 31, in Thousands) | Metric | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Net income | $197,783 | $163,198 | 21.19% | | Dividends | $(67,696) | $(65,516) | -3.32% | | Purchase of treasury shares | $(193,917) | $(109,899) | -76.45% | | Total Stockholders' Equity (End of Period) | $1,271,996 | $1,545,179 | -17.68% | - Dividends declared per share increased to **$0.92** for the six months ended December 31, 2021, from $0.86 in the prior year[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Summary (Six Months Ended December 31, in Thousands) | Metric | 2021 | 2020 | YoY Change (%) | | :-------------------------------- | :--- | :--- | :------------- | | Net Cash from Operating Activities | $197,351 | $193,984 | 1.74% | | Net Cash from Investing Activities | $(101,052) | $(82,544) | -22.42% | | Net Cash from Financing Activities | $(118,171) | $(177,023) | 33.25% | | Net Change in Cash and Cash Equivalents | $(21,872) | $(65,583) | 66.65% | | Cash and Cash Equivalents, End of Period | $29,120 | $147,762 | -80.29% | - Investing activities included **$71,353 thousand for computer software developed** and **$22,373 thousand for capital expenditures** in 2021[17](index=17&type=chunk) - Financing activities included **$220,000 thousand in borrowings on credit facilities**, offset by **$193,917 thousand for treasury stock purchases** and **$67,696 thousand for dividends paid** in 2021[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures regarding the company's accounting policies, significant estimates, and specific financial statement line items, offering crucial context for the reported financial position and performance [NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=NOTE%201.%20NATURE%20OF%20OPERATIONS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Describes the company's business and outlines its key accounting principles and policies - Jack Henry & Associates, Inc. is a leading provider of technology solutions and payment processing services primarily for the financial services industry[18](index=18&type=chunk) - The Company adopted FASB ASC Topic 326, Financial Instruments - Credit Losses (CECL), on July 1, 2020, resulting in an **immaterial cumulative effect adjustment to retained earnings**[21](index=21&type=chunk) Allowance for Credit Losses Activity (Six Months Ended December 31, in Thousands) | Metric | 2021 | 2020 | | :------------------------------------------ | :--- | :--- | | Allowance for credit losses - beginning balance | $7,267 | $6,719 | | Current provision for expected credit losses | $840 | $910 | | Write-offs charged against allowance | $(373) | $(1,286) | | Allowance for credit losses - ending balance | $7,733 | $6,830 | - Accumulated depreciation for property and equipment totaled **$453,439 thousand** at December 31, 2021, and accumulated amortization of intangible assets totaled **$983,626 thousand**[23](index=23&type=chunk)[24](index=24&type=chunk) - The Company had **31,043 thousand shares in treasury stock** at December 31, 2021, with remaining authority to repurchase up to **3,948 thousand additional shares**[26](index=26&type=chunk) - The COVID-19 pandemic's financial and operational impact on the business has been limited to date, with no material impact on condensed consolidated financial statements as of December 31, 2021, though future impacts remain uncertain[34](index=34&type=chunk) [NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS](index=11&type=section&id=NOTE%202.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) Discusses the adoption and potential impact of new accounting standards on the company's financial statements - The Company adopted ASU No. 2019-12 (Income Taxes) effective July 1, 2021, with **no material impact** on its financial statements[35](index=35&type=chunk) - ASU No. 2021-08 (Business Combinations) will be adopted for fiscal years beginning after December 15, 2022, and could affect future business combinations[36](index=36&type=chunk) [NOTE 3. REVENUE AND DEFERRED COSTS](index=11&type=section&id=NOTE%203.%20REVENUE%20AND%20DEFERRED%20COSTS) Details the company's revenue recognition policies, disaggregated revenue streams, and deferred revenue balances - Revenue is generated from data processing, transaction processing, software licensing and related services, professional services, and hardware sales[37](index=37&type=chunk) Disaggregated Revenue (Three Months Ended December 31, in Thousands) | Revenue Type | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Private and Public Cloud | $138,340 | $124,498 | 11.12% | | Product Delivery and Services | $79,499 | $48,414 | 64.21% | | On-Premise Support | $78,372 | $77,961 | 0.53% | | Processing | $197,685 | $171,488 | 15.28% | | Total Revenue | $493,896 | $422,361 | 17.00% | Disaggregated Revenue (Six Months Ended December 31, in Thousands) | Revenue Type | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Private and Public Cloud | $273,982 | $245,456 | 11.62% | | Product Delivery and Services | $131,014 | $105,312 | 24.41% | | On-Premise Support | $188,708 | $181,102 | 4.20% | | Processing | $388,248 | $342,291 | 13.42% | | Total Revenue | $981,952 | $874,161 | 12.38% | - Current deferred revenues decreased from **$319,748 thousand** at June 30, 2021, to **$208,733 thousand** at December 31, 2021[42](index=42&type=chunk) - Estimated future revenue from remaining performance obligations totaled **$5,154,912 thousand** as of December 31, 2021, with approximately **26% expected to be recognized over the next 12 months**[46](index=46&type=chunk) - Capitalized contract costs totaled **$347,867 thousand** at December 31, 2021, an increase from $314,807 thousand at June 30, 2021[48](index=48&type=chunk) [NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS](index=13&type=section&id=NOTE%204.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) Explains the company's methodology for fair value measurements and lists financial assets and liabilities by fair value level - The Company uses a three-level hierarchy for fair value measurements, prioritizing quoted prices in active markets (Level 1) and observable inputs (Level 2)[50](index=50&type=chunk) Fair Value of Financial Assets and Liabilities (December 31, 2021, in Thousands) | Item | Fair Value | Level | | :------------------------ | :--------- | :---- | | Certificates of Deposit | $1,209 | Level 2 | | Revolving credit facility | $240,000 | Level 2 | [NOTE 5. LEASES](index=13&type=section&id=NOTE%205.%20LEASES) Provides information on the company's operating lease assets, liabilities, costs, and future maturity schedules - Operating lease assets were **$51,888 thousand** and operating lease liabilities were **$56,653 thousand** at December 31, 2021[54](index=54&type=chunk) - Operating lease costs for the three months ended December 31, 2021, were **$3,327 thousand**, a decrease from $3,766 thousand in the prior year[56](index=56&type=chunk) - The weighted average remaining lease term for operating leases was **77 months**, and the weighted average discount rate was **2.62%** as of December 31, 2021[58](index=58&type=chunk) Maturity of Operating Lease Liabilities (December 31, 2021, in Thousands) | Due Dates (fiscal year) | Future Minimum Rental Payments | | :---------------------- | :----------------------------- | | 2022 (remaining period) | $6,617 | | 2023 | $12,089 | | 2024 | $10,029 | | 2025 | $7,266 | | 2026 | $6,342 | | Thereafter | $19,388 | | Total lease payments | $61,731 | | Less: interest | $(5,078) | | Present value of lease liabilities | $56,653 | [NOTE 6. DEBT](index=15&type=section&id=NOTE%206.%20DEBT) Details the company's outstanding debt, including its revolving credit facility and compliance with financial covenants - The Company had **$240,000 thousand outstanding** under its revolving credit facility at December 31, 2021, an increase from $100,000 thousand at June 30, 2021[61](index=61&type=chunk) - The credit facility allows for borrowings up to **$300,000 thousand**, which may be increased to **$700,000 thousand**, and terminates on February 10, 2025[61](index=61&type=chunk) - Interest paid for the six months ended December 31, 2021, was **$604 thousand**, significantly higher than $105 thousand in the prior year, due to increased borrowings[63](index=63&type=chunk) - The Company was in compliance with all financial covenants of the credit facility as of December 31, 2021[61](index=61&type=chunk) [NOTE 7. INCOME TAXES](index=15&type=section&id=NOTE%207.%20INCOME%20TAXES) Explains the company's effective tax rates, income tax payments, and unrecognized tax benefits - The effective tax rate for the three months ended December 31, 2021, was **23.6%**, up from 23.1% in the prior-year quarter, primarily due to increased operating income[64](index=64&type=chunk) - For the six months ended December 31, 2021, the effective tax rate was **23.5%**, compared to 22.7% in the prior year, also driven by increased operating income and a larger excess tax benefit from share-based compensation in the prior period[65](index=65&type=chunk) - The Company paid income taxes, net of refunds, of **$40,687 thousand** for the six months ended December 31, 2021[66](index=66&type=chunk) - The liability for unrecognized tax benefits could reduce by **$3,500 to $4,500** within twelve months of December 31, 2021, due to lapsing statutes of limitations and examination closures[67](index=67&type=chunk) [NOTE 8. STOCK-BASED COMPENSATION](index=16&type=section&id=NOTE%208.%20STOCK-BASED%20COMPENSATION) Reports the costs associated with stock-based compensation and details outstanding stock options and restricted stock units Stock-Based Compensation Costs (in Thousands) | Period | 2021 | 2020 | | :-------------------------- | :--- | :--- | | Three Months Ended Dec 31 | $6,956 | $5,127 | | Six Months Ended Dec 31 | $13,027 | $9,752 | - As of December 31, 2021, there were **22 thousand stock options outstanding** with a weighted average exercise price of **$87.27**[70](index=70&type=chunk) - There were **343 thousand non-vested performance and restricted stock unit awards outstanding** at December 31, 2021, with **$29,290 thousand of unrecognized compensation expense**[71](index=71&type=chunk)[73](index=73&type=chunk) [NOTE 9. EARNINGS PER SHARE](index=18&type=section&id=NOTE%209.%20EARNINGS%20PER%20SHARE) Presents the basic and diluted earnings per share calculations and their contributing factors Diluted Earnings Per Share | Period | 2021 | 2020 | | :-------------------------- | :--- | :--- | | Three Months Ended Dec 31 | $1.30 | $0.94 | | Six Months Ended Dec 31 | $2.68 | $2.13 | - Common stock repurchases contributed **$0.05 to diluted earnings per share** for the second fiscal quarter and **$0.09 for year-to-date fiscal 2022**[76](index=76&type=chunk) [NOTE 10. REPORTABLE SEGMENT INFORMATION](index=18&type=section&id=NOTE%2010.%20REPORTABLE%20SEGMENT%20INFORMATION) Provides a breakdown of the company's financial performance across its distinct operating segments - The Company operates in four reportable segments: Core, Payments, Complementary, and Corporate and Other[78](index=78&type=chunk) Segment Revenue (Three Months Ended December 31, 2021, in Thousands) | Segment | Total Revenue | | :---------------- | :------------ | | Core | $154,878 | | Payments | $182,528 | | Complementary | $141,724 | | Corporate and Other | $14,766 | Segment Revenue (Six Months Ended December 31, 2021, in Thousands) | Segment | Total Revenue | | :---------------- | :------------ | | Core | $320,163 | | Payments | $352,150 | | Complementary | $283,205 | | Corporate and Other | $26,434 | [NOTE 11. SUBSEQUENT EVENTS](index=21&type=section&id=NOTE%2011.%20SUBSEQUENT%20EVENTS) Discloses any significant events that occurred after the reporting period but before the financial statements were issued - There were no subsequent events requiring disclosure[83](index=83&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=22&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial condition and results of operations, including an overview of the business, the impact of COVID-19, and detailed analysis of revenue, expenses, and segment performance, along with liquidity and capital resources [Overview](index=22&type=section&id=Overview) Provides a general description of the company's business, its primary services, and main revenue streams - Jack Henry & Associates, Inc. is a leading provider of technology solutions and payment processing services for financial services organizations, marketed through Jack Henry Banking, Symitar, and ProfitStars brands[86](index=86&type=chunk) - Primary revenue streams are 'services and support' (including private and public cloud, product delivery, and on-premise support) and 'processing' (including remittance, card, and transaction/digital)[87](index=87&type=chunk) [COVID-19 Impact and Response](index=22&type=section&id=COVID-19%20Impact%20and%20Response) Discusses the company's operational adjustments and the financial impact of the COVID-19 pandemic - The Company reimplemented a company-wide recommendation for remote work on August 3, 2021, due to new virus variants, with most employees continuing to work remotely or in a hybrid capacity[89](index=89&type=chunk) - Delays in customer system installations due to COVID-19 have been limited, and remote installation processes have been developed[90](index=90&type=chunk) - The overall financial and operational impact of COVID-19 on the business has been limited, with strong liquidity and positive operating cash flows, but future impacts remain uncertain[92](index=92&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) The company reported strong financial performance for the second quarter and six months ended December 31, 2021, with significant increases in total revenue, operating income, and net income, driven by growth in cloud, card, and processing revenues [Revenue](index=24&type=section&id=Revenue) Analyzes the company's revenue growth, identifying key drivers across different service categories - Total revenue increased **17% for Q2 FY22** and **12% for YTD FY22**, primarily driven by growth in public and private cloud revenue, card, transaction and digital, and remittance processing revenues, and increased implementation fee revenue[93](index=93&type=chunk)[98](index=98&type=chunk) Services and Support Revenue (in Thousands) | Period | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Three Months Ended Dec 31 | $296,211 | $250,873 | 18% | | Six Months Ended Dec 31 | $593,704 | $531,870 | 12% | Processing Revenue (in Thousands) | Period | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Three Months Ended Dec 31 | $197,685 | $171,488 | 15% | | Six Months Ended Dec 31 | $388,248 | $342,291 | 13% | [Operating Expenses](index=25&type=section&id=Operating%20Expenses) Details the changes in the company's operating expenses and their primary contributing factors - Operating expenses increased **12% for Q2 FY22** and **9% for YTD FY22**, primarily due to increased direct costs related to the card payment processing platform and Jack Henry digital, higher personnel costs (salary increases), and increased operating licenses and fees[94](index=94&type=chunk)[99](index=99&type=chunk) Cost of Revenue (in Thousands) | Period | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Three Months Ended Dec 31 | $282,825 | $257,782 | 10% | | Six Months Ended Dec 31 | $559,460 | $520,711 | 7% | Research and Development Expense (in Thousands) | Period | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Three Months Ended Dec 31 | $29,916 | $26,780 | 12% | | Six Months Ended Dec 31 | $56,670 | $52,837 | 7% | Selling, General, and Administrative Expense (in Thousands) | Period | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Three Months Ended Dec 31 | $55,493 | $44,167 | 26% | | Six Months Ended Dec 31 | $106,565 | $89,393 | 19% | [Interest Income (Expense)](index=26&type=section&id=Interest%20Income%20(Expense)) Explains the company's interest income and expense, highlighting the impact of debt levels and interest rates Interest Income (Expense) (in Thousands) | Period | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Interest Income (Q2) | $6 | $52 | -88% | | Interest Expense (Q2) | $(447) | $(117) | 282% | | Interest Income (YTD) | $13 | $120 | -89% | | Interest Expense (YTD) | $(696) | $(235) | 196% | - The increase in interest expense was due to interest rate fluctuations, length of borrowing time, and increased amounts borrowed, with a **$240,000 thousand outstanding balance** on the credit facility at December 31, 2021, compared to none in the prior year[118](index=118&type=chunk) [Provision for Income Taxes](index=26&type=section&id=Provision%20for%20Income%20Taxes) Discusses the company's income tax provision and the factors influencing its effective tax rate Provision for Income Taxes (in Thousands) | Period | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Provision (Q2) | $29,551 | $21,585 | 37% | | Effective Rate (Q2) | 23.6% | 23.1% | 0.5 pp | | Provision (YTD) | $60,791 | $47,907 | 27% | | Effective Rate (YTD) | 23.5% | 22.7% | 0.8 pp | - The increase in the effective tax rate was primarily due to the relative impact of increased operating income[119](index=119&type=chunk)[120](index=120&type=chunk) [Net Income](index=26&type=section&id=Net%20Income) Presents the company's net income and diluted earnings per share for the reported periods Net Income and Diluted EPS | Period | 2021 | 2020 | YoY Change (%) | | :-------------------------- | :--- | :--- | :------------- | | Net Income (Q2, in Thousands) | $95,670 | $71,982 | 33% | | Diluted EPS (Q2) | $1.30 | $0.94 | 38% | | Net Income (YTD, in Thousands) | $197,783 | $163,198 | 21% | | Diluted EPS (YTD) | $2.68 | $2.13 | 25% | [Reportable Segment Discussion](index=26&type=section&id=Reportable%20Segment%20Discussion) This section provides a detailed breakdown of revenue and cost of revenue performance across the Core, Payments, Complementary, and Corporate and Other segments, demonstrating growth across all segments for both the quarter and year-to-date periods [Core](index=27&type=section&id=Core) Analyzes the revenue and cost of revenue performance for the Core segment, driven by data processing and hosting fees Core Segment Performance (in Thousands) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :---------------- | :------ | :------ | :------- | :------- | | Revenue | $154,878 | $134,948 | $320,163 | $288,103 | | YoY Change (%) | 15% | - | 11% | - | | Cost of Revenue | $64,554 | $58,485 | $131,456 | $122,347 | | YoY Change (%) | 10% | - | 7% | - | - Revenue growth in the Core segment was primarily driven by data processing and hosting fee revenue[125](index=125&type=chunk)[126](index=126&type=chunk) [Payments](index=27&type=section&id=Payments) Examines the revenue and cost of revenue performance for the Payments segment, driven by card and remittance fees Payments Segment Performance (in Thousands) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :---------------- | :------ | :------ | :------- | :------- | | Revenue | $182,528 | $155,182 | $352,150 | $311,915 | | YoY Change (%) | 18% | - | 13% | - | | Cost of Revenue | $95,570 | $86,455 | $188,795 | $172,783 | | YoY Change (%) | 11% | - | 9% | - | - Revenue growth in the Payments segment was primarily due to increased card and remittance fee revenue within processing[127](index=127&type=chunk)[128](index=128&type=chunk) [Complementary](index=27&type=section&id=Complementary) Reviews the revenue and cost of revenue performance for the Complementary segment, driven by digital and hosting fee revenues Complementary Segment Performance (in Thousands) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :---------------- | :------ | :------ | :------- | :------- | | Revenue | $141,724 | $121,408 | $283,205 | $251,762 | | YoY Change (%) | 17% | - | 12% | - | | Cost of Revenue | $58,151 | $52,407 | $113,635 | $104,431 | | YoY Change (%) | 11% | - | 9% | - | - Revenue growth in the Complementary segment was primarily driven by growth in Jack Henry digital and hosting fee revenues[129](index=129&type=chunk)[131](index=131&type=chunk) [Corporate and Other](index=28&type=section&id=Corporate%20and%20Other) Discusses the revenue and cost of revenue performance for the Corporate and Other segment, including hardware revenue Corporate and Other Segment Performance (in Thousands) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :---------------- | :------ | :------ | :------- | :------- | | Revenue | $14,766 | $10,823 | $26,434 | $22,381 | | YoY Change (%) | 36% | - | 18% | - | | Cost of Revenue | $64,550 | $60,435 | $125,574 | $121,150 | | YoY Change (%) | 7% | - | 4% | - | - Revenue increase was primarily due to higher services and support revenue, including an increase in hardware revenue[132](index=132&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, sources and uses of cash, and capital management strategies, including share repurchases and debt facilities, highlighting positive operating cash flows despite increased cash usage in investing and financing activities [Capital Requirements and Resources](index=29&type=section&id=Capital%20Requirements%20and%20Resources) Outlines the company's capital needs, funding sources, and share repurchase authorization - The Company primarily uses existing resources and funds generated from operations to meet its capital requirements[138](index=138&type=chunk) - Total consolidated capital expenditures on facilities and equipment for fiscal year 2022 are not expected to exceed **$52,000 thousand**[138](index=138&type=chunk) - At December 31, 2021, the Company had remaining authority to repurchase up to **3,948 thousand additional shares of common stock**[139](index=139&type=chunk) [Revolving Credit Facility](index=29&type=section&id=Revolving%20Credit%20Facility) Details the company's primary credit facility, outstanding balance, and compliance with covenants - The Company's five-year senior, unsecured revolving credit facility allows for borrowings of up to **$300,000 thousand**, which may be increased to **$700,000 thousand**, and terminates on February 10, 2025[140](index=140&type=chunk) - There was a **$240,000 thousand outstanding balance** under the credit facility at December 31, 2021, an increase from $100,000 thousand at June 30, 2021, primarily due to increased common stock repurchases[140](index=140&type=chunk) - The Company was in compliance with all financial covenants as of December 31, 2021[140](index=140&type=chunk) [Other Lines of Credit](index=29&type=section&id=Other%20Lines%20of%20Credit) Describes additional unsecured bank credit lines available to the company - The Company has an unsecured bank credit line providing up to **$5,000 thousand**, with no outstanding balance at December 31, 2021, and expiring on April 30, 2023[141](index=141&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=30&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section outlines the company's exposure to market risks, specifically credit risk on customer credit and interest rate risk on outstanding debt, and confirms that no derivative financial instruments are currently used - The Company is exposed to credit risk on credit extended to customers and interest rate risk on outstanding debt[144](index=144&type=chunk) - A **1% increase in the borrowing rate** would increase annual interest expense by **$2,400 thousand**, based on $240,000 thousand of outstanding variable-rate debt at December 31, 2021[145](index=145&type=chunk) - The Company does not currently use any derivative financial instruments[144](index=144&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=30&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2021, providing reasonable assurance for timely and accurate reporting [Changes in Internal Control over Financial Reporting](index=30&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Confirms that no material changes in internal control over financial reporting occurred during the quarter - No changes in internal control over financial reporting were identified during the fiscal quarter ended December 31, 2021, that materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting[147](index=147&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) Presents additional information not covered in the financial statements, including legal proceedings, equity sales, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=29&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various routine legal proceedings and claims arising in the ordinary course of business, but management does not expect any resulting liabilities to have a material adverse effect on its consolidated financial statements - The Company is subject to various routine legal proceedings and claims in the ordinary course of business[148](index=148&type=chunk) - Management believes any liabilities from current lawsuits are not expected to have a **material adverse effect** on the consolidated financial statements[148](index=148&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=30&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's share repurchase activities during the fiscal quarter ended December 31, 2021, including the number of shares bought back and the remaining authorization [Issuer Purchases of Equity Securities](index=31&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) Provides a table detailing the company's common stock repurchases during the quarter and remaining authorization Issuer Purchases of Equity Securities (Fiscal Quarter Ended December 31, 2021) | Period | Total Number of Shares Purchased | Average Price of Share | | :-------------------------- | :------------------------------- | :--------------------- | | October 1 - October 31, 2021 | — | $— | | November 1 - November 30, 2021 | 800,000 | $154.44 | | December 1 - December 31, 2021 | 450,000 | $156.37 | | Total | 1,250,000 | $155.13 | - As of December 31, 2021, the Company had remaining authority to repurchase **3,947,713 additional shares** under its Board-approved stock repurchase authorizations[150](index=150&type=chunk) [ITEM 6. EXHIBITS](index=32&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the quarterly report, including XBRL formatted financial statements and various certifications from the Chief Executive Officer and Chief Financial Officer - The report includes XBRL formatted Condensed Consolidated Balance Sheets, Statements of Income, Statements of Changes in Shareholders' Equity, Statements of Cash Flows, and Notes to Condensed Consolidated Financial Statements[153](index=153&type=chunk) - Certifications of the Chief Executive Officer and Chief Financial Officer are furnished as Exhibits 31.1, 31.2, 32.1, and 32.2[154](index=154&type=chunk) [Signatures](index=33&type=section&id=Signatures) The quarterly report is officially signed by David B. Foss, Board Chair and Chief Executive Officer, and Kevin D. Williams, Chief Financial Officer and Treasurer, on behalf of Jack Henry & Associates, Inc. on February 9, 2022 - The report was signed by David B. Foss, Board Chair and Chief Executive Officer, and Kevin D. Williams, Chief Financial Officer and Treasurer[157](index=157&type=chunk) - The signing date for the report was February 9, 2022[157](index=157&type=chunk)

Jack Henry & Associates, Inc. (NASDAQ:JKHY) Q2 2022 Earnings Conference Call February 9, 2022 8:45 AM ET Company Participants David B. Foss – Board Chair and CEO Kevin D. Williams – CFO and Treasurer Conference Call Participants Rayna Kumar - UBS Vasu Govil – KBW Kartik Mehta – Northcoast Research Dominick Gabriele – Oppenheimer Kenneth Suchoski – Autonomous Research Operator Good morning ladies and gentlemen, thank you for standing by and welcome to Jack Henry and Associates Second Quarter Fiscal Year 2022 ...