-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Uqrija9wOtDLer51IsYRuF/H9DLP5S6dLO5uNaTnLLnA0hpGe+1qD3Zcv6ZBRLdl aSGxfppcbfUO8esYJ5fiww== 0000926236-03-000047.txt : 20030418 0000926236-03-000047.hdr.sgml : 20030418 20030418124659 ACCESSION NUMBER: 0000926236-03-000047 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030416 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HENRY JACK & ASSOCIATES INC CENTRAL INDEX KEY: 0000779152 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 431128385 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14112 FILM NUMBER: 03655499 BUSINESS ADDRESS: STREET 1: 663 HWY 60 STREET 2: P O BOX 807 CITY: MONETT STATE: MO ZIP: 65708 BUSINESS PHONE: 4172356652 MAIL ADDRESS: STREET 1: PO BOX 807 STREET 2: 663 HWY 60 CITY: MONETT STATE: MO ZIP: 65708-0807 8-K 1 jha3q8k041603.txt CURRENT REPORT FISCAL 2003 THIRD QUARTER RESULTS 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): April 16, 2003 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 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Press release dated April 16, 2003. Item 12. Results of Operations and Financial Condition. On April 16, 2003, Jack Henry & Associates, Inc. issued a press release announcing fiscal 2003 third quarter results, the text of which is attached hereto as Exhibit 99.1. 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: April 16, 2003 JACK HENRY & ASSOCIATES, INC. (Registrant) By: /s/ Kevin D. Williams ------------------------- Kevin D. Williams Chief Financial Officer EX-99.1 3 exh99-1.txt PRESS RELEASE DATED APRIL 16, 2003 Exhibit 99.1 Company: Jack Henry & Associates, Inc. Analyst Contact: Kevin D. Williams 663 Highway 60, P.O. Box 807 Chief Financial Officer Monett, MO 65708 (417) 235-6652 IR Contact: Becky Pendleton Reid The Cereghino Group (206) 762-0993 FOR IMMEDIATE RELEASE --------------------- JACK HENRY & ASSOCIATES REPORTS FISCAL 2003 THIRD QUARTER RESULTS ----------------------------------------------------------------- Monett, MO, April 16, 2003 -- Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading provider of integrated technology solutions for financial institutions, today reported solid fiscal third quarter profitability and backlog. This has occurred in spite of the weakness in capital goods spending that has continued to hamper sales of new core processing systems while enhancing sales of outsourcing solutions. For its third fiscal quarter, revenues were down 1% to $98.9 million, and net income was down 9% to $12.3 million, or $0.14 per share. Year-to-date, revenues are up 2% to $295.4 million and net income is down 14% to $35.3 million or $0.40 per share. "Spending on technology continues to show the effects of the overall decrease in the capital goods market as bankers have not yet returned to the traditional spending on technology upgrades and systems," said Michael E. Henry, Chairman and CEO. "Outsourcing continues to be a strong seller as well as credit union systems and add on complementary solutions. Our backlog has increased significantly this quarter for both in-house and outsourcing, but it is still too early to determine if this is an actual turn in the market. Until we are sure, we will continue to do the right things for our company, customers and stockholders." "We continue to have significant success in building the outsourcing part of our business. As previously discussed we are continuing to focus on expanding our geographic footprint for item capture sites, to help drive data processing sales, through acquisition or development of new sites," said Jack Prim, President. "Therefore we are announcing that we have committed to establish two new additional sites. One of these will be located in New Jersey and the other in Connecticut. These additional sites will bring our total number of item capture sites to seventeen by the end of the calendar year." Operating Results To improve reporting disclosure, the company has changed its reporting line items, with installation revenue moving from license revenue to support and service revenue and a new line item for license cost of sales. This will allow our investors to analyze the various gross margins based on the applicable type of revenue. Third quarter revenues were down slightly at $98.9 million compared to $99.8 million in the third quarter a year ago. Year-to-date revenues were up slightly at $295.4 million compared to $290.6 million in the first nine months of fiscal 2002. License revenue dropped to $10.4 million in the third quarter of fiscal 2003, off 41% from $17.7 million in 3Q02. Year-to-date license decreased to $36.3 million down 25% from $48.4 million in the first nine months of fiscal 2002. Support and service revenue grew to $59.2 million up 18% from $50.1 million in the third quarter a year ago. Year-to-date support and service revenue increased 15% to $170.3 million from $147.9 million in the first nine months of fiscal 2002. Reflecting the reduced sales of new in-house core systems, hardware sales were down 13% in 3Q03 to $21.7 million compared to $24.8 million in the third quarter a year ago. Year-to-date hardware sales were down 9% to $67.4 million from $73.9 million in the like period a year ago. Support and service revenue continues to be strong, posting 18% year-over- year growth in the third quarter and 15% growth year to date. Recurring revenue, which excludes installation revenue, accounted for 52% of total third quarter revenues and 51% of revenues for the first nine months of fiscal 2003. Cost of sales increased 1% during the quarter and 7% year-to-date, primarily due to increased headcount included in cost of services. Third quarter gross profit was 39% this fiscal year compared to 40% in the third quarter a year ago. Year-to-date gross profit was 37% compared to 41% in the first nine months of fiscal 2002. Support and service margins continue to strengthen to 38% up from 32% for the same quarter a year ago. Year-to-date support and service margin increased to 35% this year-to-date from 32% for the nine months ended March 2002. Hardware gross margin for the third quarter was at 28% compared to 31% for the same quarter last year. Year to date hardware margins decreased from 32% in prior year to 26% in the current year. The decrease is primarily attributable to sales mix of products and reduced vendor incentives. Operating expenses declined slightly during the quarter and year-to-date reflecting management's continued efforts to control expenses. Operating income decreased 8% in the quarter to $19.3 million compared to $20.9 million in the third quarter a year ago. Year-to-date operating income totaled $55.1 million, down 12% from $62.8 million in the first nine months of fiscal 2002. Third quarter pre-tax income totaled $19.4 million, down 8% from $21.2 million in the third quarter a year ago. Pre-tax income for the first nine months of fiscal 2003 totaled $55.6 million, down 14% from $64.4 million a year ago. Third quarter net income totaled $12.3 million, or $0.14 per share, compared to $13.6 million or $0.15 per share in the same quarter of fiscal 2002. Year-to-date net income was $35.3 million, or $0.40 per share, compared to $41.2 million, or $0.45 per share, in the first nine months of fiscal 2002. "As we explained last quarter, we've shifted our annual maintenance billing cycles for customers we gained through acquisitions to our fiscal year end from a calendar year. As a result, comparisons of deferred revenue are not particularly meaningful," said Kevin D. Williams, CFO. Deferred revenue was $66.2 million at March 31, 2003, from $77.6 million a year ago. "Backlog continued to strengthen in the quarter with new in-house sales, continued success in contracting complementary products and outsourcing services to both banks and credit unions," Williams noted. Backlog grew 27% during the quarter to $172.8 million ($64.2 million in-house and $108.5 million outsourcing) compared to $136.5 million ($54.0 million in-house and $82.5 million outsourcing) at March 31, 2002. "We continue to make progress on the integration of ARGO's CRM and Platform technology with our integrated core solution and expect to begin installing backlog orders for this product in the summer. As we noted last quarter, when these revenues are recognized, they will carry somewhat lower gross profit margins than our other software products due to the alliance agreement with ARGO." Jack Henry & Associates, Inc. provides integrated computer systems and processes ATM and debit card transactions for banks and credit unions. Jack Henry markets and supports its systems throughout the United States and has over 3,000 customers nationwide. For additional information on Jack Henry, visit the company's web site at www.jackhenry.com. The company will hold a conference call today at 7:45 Central Time, and investors are invited to listen 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 potential investors should review these statements. 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 Statements of Income (in thousands, Except Per Share Data) (unaudited) Three Months Ended Nine Months Ended March 31, March 31, % March 31, March 31, % 2003 2002 Change 2003 2002 Change -------- ------------------ -------- ------------------ REVENUE License $ 10,446 $ 17,657 -41% $ 36,322 $ 48,445 -25% Support and service 59,168 50,070 18% 170,348 147,920 15% Hardware sales 21,665 24,825 -13% 67,398 73,864 -9% Customer reimbursements 7,619 7,232 5% 21,371 20,349 5% -------- -------- -------- -------- Total 98,898 99,784 -1% 295,439 290,578 2% COST OF SALES Cost of license 829 1,070 -23% 2,595 1,458 78% Cost of services 36,486 34,147 7% 111,503 100,126 11% Cost of hardware 15,561 17,243 -10% 49,588 50,493 -2% Customer reimbursement expenses 7,619 7,232 5% 21,371 20,349 5% -------- -------- -------- -------- Total 60,495 59,692 1% 185,057 172,426 7% -------- -------- -------- -------- GROSS PROFIT 38,403 40,092 - 4% 110,382 118,152 -7% 39% 40% 37% 41% OPERATING EXPENSES Selling and marketing 7,603 7,766 -2% 22,463 21,310 5% Research and development 4,052 2,952 37% 11,565 9,405 23% General and administrative 7,457 8,502 -12% 21,205 24,664 -14% -------- -------- -------- -------- Total Operating Expenses 19,112 19,220 -1% 55,233 55,379 0% -------- -------- -------- -------- OPERATING INCOME 19,291 20,872 -8% 55,149 62,773 -12% INTEREST INCOME (EXPENSE) Interest Income 134 365 -63% 512 1,755 -71% Interest Expense (29) (53) -45% (84) (141) -40% -------- -------- -------- -------- Total 105 312 -66% 428 1,614 -73% -------- -------- -------- -------- INCOME BEFORE INCOME TAXES 19,396 21,184 -8% 55,577 64,387 -14% PROVISION FOR INCOME TAXES 7,080 7,626 -7% 20,286 23,179 -12% -------- -------- -------- -------- NET INCOME $ 12,316 $ 13,558 -9% $ 35,291 $ 41,208 -14% ======== ======== ======== ======== Diluted income per share $ 0.14 $ 0.15 -6% $ 0.40 $ 0.45 -11% ======== ======== ======== ======== Diluted weighted average shares outstanding 88,940 92,483 89,110 92,485 ======== ======== ======== ======== Consolidated Balance Sheet March 31, March 31, % Highlights (in Thousands) 2003 2002 Change -------- -------- -------- Cash, cash equivalents & investments $ 34,300 $ 48,806 -30% Trade receivables $ 62,761 $ 76,947 -18% Other current assets $ 30,650 $ 31,833 -4% TOTAL ASSETS $ 455,805 $ 458,837 -1% Accounts payable & accrued expenses $ 17,647 $ 17,426 1% Deferred revenue $ 66,177 $ 77,545 -15% STOCKHOLDERS' EQUITY $ 351,181 $ 349,160 1%
(thirty) Note: Transmitted on PR Newswire on April 16, 2003, at 4:00 a.m. CDT. -----END PRIVACY-ENHANCED MESSAGE-----