8-K 1 0001.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 21, 2000 JACK HENRY & ASSOCIATES, INC. (Exact name of Registrant as specified in its Charter) Delaware 0-14112 43-1128385 (State or other jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 663 Highway 60, P.O. Box 807, Monett, MO 65708 (Address of principal executive offices)(zip code) Registrant's telephone number, including area code: (417) 235-6652 ITEM 5. OTHER EVENTS. On July 21, 2000, Jack Henry & Associates, Inc. ("Jack Henry") issued a press release (a copy of which is attached to this report) announcing its earnings and results of operations for its fourth fiscal quarter and for its fiscal year ended June 30, 2000. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits 99.1 Press release dated July 21, 2000 with fourth fiscal quarter and fiscal year ended June 30, 2000 results. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 21, 2000 JACK HENRY & ASSOCIATES, INC. (Registrant) By: /s/ Terry W. Thompson Terry W. Thompson Chief Financial Officer Exhibit 99.1 COMPANY:JACK HENRY & ASSOCIATES, INC. ANALYST CONTACT: Terry W. Thompson 663 Highway 60, P.O. Box 807 Chief Financial Officer Monett, MO 65708 (417) 235-6652 IR CONTACT: Becky Pendleton Reid Len Cereghino & Co. (206) 448-1996 FOR IMMEDIATE RELEASE JACK HENRY & ASSOCIATES POSTS RECORD REVENUES, EARNINGS AND EARNINGS PER SHARE IN FISCAL 2000 4Q00 REVENUES INCREASE 54% AND PROFITS RISE 41% Monett, MO, July 21, 2000 -- Jack Henry & Associates, Inc. (Nasdaq: JKHY) today reported record fiscal 2000 results capped by a strong fourth quarter. This represents the 11th consecutive year of record revenues, earnings and earnings per share. These results reflect the continuing strong demand from financial institutions nationwide for banking technology and e-finance solutions. Fourth quarter revenues increased 54% to $69.4 million with revenues from software licensing and installation almost doubling, generating a 41% increase in earnings of $11.4 million or $.26 per diluted share. For the fiscal year ended June 30, 2000, total revenues increased 16% to $225.3 million compared to $193.5 million in fiscal 1999. Income from continuing operations increased 5% to $34.4 million, or $.81 per diluted share, compared to $32.7 million, or $.77 per diluted share, in fiscal 1999. All prior periods have been restated to reflect the 2-for-1 split effective March 2, 2000 and the acquisition of Sys-Tech, Inc. which was accounted for as a pooling of interests and closed June 1, 2000, as of the beginning of the earliest period presented. "The revenue and earnings growth during the second half of this fiscal year reflects the demand for technology that built during the Y2K moratorium last year. This is further demonstrated by the 97% increase in fourth quarter software licensing and installation revenues," said Michael E. Henry, Chairman and CEO. Software licensing and installation revenues in the fourth quarter increased to $21.8 million and accounted for 31% of total revenues compared to $11.1 million or 25% of fourth quarter 1999 revenues. In fiscal 2000, software licensing and installation grew 22% to $57.7 million or 26% of total revenues compared to $47.2 million or 24% of fiscal 1999 revenues. Fourth quarter maintenance, support and services revenues increased 52% to $27.7 million and hardware sales increased 27% to $19.9 million. In fiscal 2000, maintenance, support and services revenues increased 37% to $97.5 million and hardware sales decreased 7% to $70.1 million. Backlog was $104.4 million at June 30, 2000 compared to $91.2 million, at March 31, 2000, and $86.6 million at June 30, 1999. The backlog for in-house products and services totaled $43.0 million at year end compared to $27.9 million a year ago. Outsourcing backlog was $61.4 million compared to $58.7 million a year ago. "Software licensing and installation is our most profitable revenue component, and consequently, its revenue growth helped boost gross margin to 48% in the fourth quarter, up from 46% in the fourth quarter a year ago," said Terry Thompson, CFO. Conversely, full year gross margin was 44%, down from 45% in the comparable period of fiscal 1999 due to Y2K and the mix of revenues. Fourth quarter gross profit grew 58% to $33.0 million compared to $20.9 million in the fourth quarter of fiscal 1999. Fiscal 2000 gross profit was up 14% to $98.1 million compared to $86.3 million a year ago. "We continued to build our business capabilities and customer base through strategic acquisitions during the year. In fiscal 2000, we completed four acquisitions including the Open Systems Group, with over 800 customers and UNIX-based technology, BancData Solutions providing a strong outsourcing base on the West Coast, Symitar Systems strengthening our credit union operations, and Sys-Tech adding expertise in uninterruptible power supply systems and the design and maintenance of computer facilities," Henry noted. "These acquisitions contributed to earnings in the fiscal year." (more) Operating expenses for the fourth quarter increased to $15.1 million or 22% of revenues and for fiscal 2000 to $47.1 million or 21% of revenues, reflecting increasing costs of operating, including some arising from acquisitions this year. "Selling and marketing expenses increased the most during the year, growing 36% to $19 million. We continue to devote 3% to 4% of revenues to research and development. General and administrative expenses grew more slowly than revenues, increasing 38% in the quarter and 16% for the year," said Michael R. Wallace, President and COO. "The fourth quarter marked the first customer rollout of our new Internet portal, NetHarbor(TM)," Wallace continued. The new product allows banks to launch websites that offer customer convenience and provide a new revenue source for both financial institutions and for JKHY. NetHarbor allows the bank's clients to customize their bank-branded home page content to meet their daily internet needs with real time online banking transactions; account information and services plus news, local weather forecasts, stock quotes, community affairs, favorite internet links, and e-shopping. We expect to add integrated online brokerage to NetHarbor's service offerings before calendar year end. Fourth quarter operating income was $17.8 million compared to $12.2 million in last year's fourth quarter. Fiscal 2000 operating income was $51.0 million compared to $49.7 million in fiscal 1999. Pre-tax income in both the quarter and the year reflect the lower interest income and higher interest expense resulting from the year's acquisition activities. Fourth quarter pre-tax income totaled $17.4 million compared to $12.4 million and fiscal 2000 pre-tax income was $51.8 compared to $51.6 million a year ago. At June 30, 2000, the balance sheet reflected strong growth during the year with assets growing 83% to $325 million and stockholders' equity up 33% to $154.5 million. Long-term and short-term debt totaled $71 million at year-end. On July 14th, the company filed a registration statement with the Securities and Exchange Commission for a proposed offering of five million shares of its common stock comprised of two million shares offered by the Company and three million shares offered by selling stockholders. The Company intends to use its net proceeds from the offering for repayment of debt, working capital, capital expenditures and other general corporate purposes, including potential acquisitions. Jack Henry & Associates, Inc. provides integrated computer systems and ATM networking products for banks and credit unions. Jack Henry markets and supports its systems throughout the United States and has over 2,850 customers nationwide. For additional information on Jack Henry, visit the company's web site at www.jackhenry.com. Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward looking information. Additional information on these and other factors which could affect the Company's financial results are included in its Securities and Exchange Commission (SEC) filings on Form 10-K and its registration statement filing of July 14, 2000. These statements should be reviewed by potential investors. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information. CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Unaudited) (In Thousands, Except Per Share Data) CONDENSED STATEMENT OF INCOME Quarter Ended Year Ended June 30, June 30, Revenues: 2000 1999* 2000 1999* Software licensing & installation $21,800 $11,073 $ 57,688 $ 47,181 Maintenance/support & service 27,706 18,283 97,519 71,278 Hardware sales 19,863 15,616 70,093 75,068 Total revenues $69,369 $44,972 $ 225,300 $193,527 Cost of sales: Cost of hardware 15,124 11,311 51,045 54,661 Cost of services 21,275 12,790 76,139 52,582 Total cost of sales $36,399 $24,101 $ 127,184 $107,243 Gross profit $32,970 $20,871 $ 98,116 $ 86,284 48% 46% 44% 45% Operating expenses: Selling and marketing 6,502 2,646 19,015 14,030 Research and development 2,243 1,425 8,022 5,183 General and administrative 6,376 4,618 20,069 17,347 Total operating expenses $15,121 $ 8,689 $ 47,106 $ 36,560 Operating income $17,849 $12,182 $ 51,010 $ 49,724 Other income: Interest income 125 189 863 1,619 Interest expense (767) (21) (1,910) (93) Other, net 174 17 1,802 363 Total other income $ (468) $ 185 $ 755 $ 1,889 Income before income taxes $17,381 $12,367 $ 51,765 $ 51,613 Provision for income taxes 5,947 4,265 17,415 18,887 Income from continuing operations $ 11,434 $ 8,102 $ 34,350 $ 32,726 (Loss) income from discontinued operations - - (332) (758) Net income $ 11,434 $ 8,102 $ 34,018 $ 31,968 Diluted earnings per share: Income from continuing operations $ .26 $ .19 $ .81 $ .77 Loss from discontinued operations - - (.01) (.02) Net income $ .26 $ .19 $ .80 $ .75 Diluted weighted average shares outstanding 43,524 42,576 42,639 42,641 Basic earnings per share: Income from continuing operations $ .28 $ .20 $ .84 $ .81 Loss from discontinued operations - - (.01) (.02) Net income $ .28 $ .20 $ .83 $ .79 Basic weighted average shares outstanding 41,217 40,598 40,883 40,337 CONDENSED BALANCE SHEETS June 30, 2000 1999 Current assets $115,959 $ 81,776 Property and equipment, net 93,285 66,192 Intangible assets, net 115,095 28,196 Other assets, net 758 1,096 Total assets $325,097 $177,260 Accounts payable and accrued expenses $ 19,005 $ 14,001 Short-term borrowings 70,500 - Deferred revenue 75,472 44,664 Long-term debt 443 211 Deferred income taxes 5,132 2,586 Stockholders' equity 154,545 115,798 Total liabilities and stockholders' equity $325,097 $177,260 * Restated to reflect the Sys-Tech acquisition