Jack Henry(US:JKHY)2023-11-09 19:48Financial Performance - Revenue for the three months ended September 30, 2023, was $571,368,000, an increase of 8.0% compared to $529,202,000 for the same period in 2022[15] - Operating income decreased to $132,700,000, down 5.0% from $140,723,000 year-over-year[15] - Net income for the quarter was $101,679,000, a decrease of 4.0% compared to $106,549,000 in the prior year[15] - Basic earnings per share were $1.40, down from $1.46 in the same quarter last year[15] - Total expenses for the three months ended September 30, 2023, were $438,668 million, compared to $388,479 million in the same period of 2022, reflecting increased operational costs[91] Assets and Liabilities - Total current assets decreased to $563,496,000 from $627,962,000 as of June 30, 2023[13] - Total liabilities decreased to $1,074,275,000 from $1,165,316,000 as of June 30, 2023[13] - Cash and cash equivalents increased to $31,467,000 from $12,243,000 at the end of the previous quarter[13] - Contract liabilities (deferred revenue) decreased to $261,656 million for current liabilities as of September 30, 2023, down from $331,974 million at June 30, 2023[43] - The accumulated depreciation of property and equipment reached $476,923 million as of September 30, 2023, up from $466,711 million at June 30, 2023[27] - Accumulated amortization of intangible assets totaled $1,187,086 million as of September 30, 2023, compared to $1,149,913 million at June 30, 2023[28] Cash Flow and Investments - The company reported a net cash from operating activities of $157,139,000, an increase from $136,831,000 year-over-year[21] - The company made capital expenditures of $7,612,000 during the quarter, compared to $7,737,000 in the same period last year[21] - The company repurchased 129 shares during the first three months of fiscal 2024, with a total cost of treasury shares amounting to $1,852,118 million as of September 30, 2023[30] Revenue Segments - Revenue from Private and Public Cloud services rose to $163,489 million in Q3 2023, compared to $148,999 million in Q3 2022, marking an increase of about 9%[41] - The Payments segment generated revenue of $199,358 million in Q3 2023, up from $186,533 million in Q3 2022, indicating a positive trend in payment processing services[91] - The company recognized revenue of $99,220 million during the three months ended September 30, 2023, that was included in the deferred revenue balance at the beginning of the period[45] Tax and Compliance - The effective tax rate for the three months ended September 30, 2023, was 23.7%, slightly up from 23.5% in the prior year[65] - The Company paid income taxes of $2,569 for the three months ended September 30, 2023, compared to $2,828 in the same period of 2022[65] - As of September 30, 2023, the Company had $12,676 of gross unrecognized tax benefits, with $11,051 potentially affecting the effective tax rate if recognized[66] Acquisitions - The Company acquired Payrailz for a final purchase price of $230,205 to expand its digital financial management solutions[80] - The company completed a purchase price allocation for the acquisition of Payrailz, recognizing total identifiable net assets of $112,866 million and goodwill of $117,339 million, primarily due to growth potential and synergies[82] - Identifiable intangible assets from the acquisition include customer relationships valued at $6,109 million and computer software at $112,505 million, with amortization periods of 15 years and 10 years, respectively[83] - The goodwill of $117,339 million from the acquisition is expected to be deductible for income tax purposes, enhancing the company's tax position going forward[82] Future Projections - Estimated revenue expected to be recognized in the future related to unsatisfied performance obligations totaled $3,563,944 million, with approximately 25% expected to be recognized over the next 12 months[47]