Jack Henry & Associates, Inc. (NASDAQ:JKHY) Q4 2023 Earnings Conference Call August 16, 2023 8:45 AM ET Company Participants Vance Sherard - VP of IR David Foss - Chairman and CEO Mimi Carsley - CFO and Treasurer Gregory Adelson - President and COO Conference Call Participants Peter Heckmann - D.A. Davidson Nik Cremo - Credit Suisse Rayna Kumar - UBS Dan Perlin - RBC Capital Vasu Govil - KBW Jason Kupferberg - Bank of America John Davis - Raymond James Dominick Gabriele - Oppenheimer Cristopher Kennedy - Wi ...

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, 2023 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 ...

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 ...