Jack Henry & Associates, Inc. (JKHY) Bundle
A Brief History of Jack Henry & Associates, Inc.
Company Overview
Jack Henry & Associates, Inc. (JKHY) is a leading provider of technology solutions and payment processing services primarily for community and regional financial institutions. As of September 30, 2024, the company reported total assets of $2,928,511,000, total liabilities of $1,003,483,000, and stockholders' equity of $1,925,028,000.
Financial Performance
For the three months ended September 30, 2024, Jack Henry reported total revenue of $600,982,000, a 5.2% increase from $571,368,000 in the same period in 2023. The cost of revenue was $343,432,000, resulting in an operating income of $151,276,000.
| Financial Metric | Q1 FY 2025 | Q1 FY 2024 | % Change |
|---|---|---|---|
| Total Revenue | $600,982,000 | $571,368,000 | 5.2% |
| Cost of Revenue | $343,432,000 | $323,002,000 | 6.5% |
| Operating Income | $151,276,000 | $132,700,000 | 14.0% |
| Net Income | $119,191,000 | $101,679,000 | 17.2% |
| Basic EPS | $1.63 | $1.40 | 16.4% |
| Diluted EPS | $1.63 | $1.39 | 17.2% |
Segment Performance
Jack Henry operates through four reportable segments: Core, Payments, Complementary, and Corporate and Other. For Q1 FY 2025, the revenue breakdown by segment is as follows:
| Segment | Revenue (Q1 FY 2025) | Revenue (Q1 FY 2024) | % Change |
|---|---|---|---|
| Core | $195,624,000 | $186,439,000 | 4.9% |
| Payments | $211,923,000 | $199,358,000 | 6.3% |
| Complementary | $171,702,000 | $161,366,000 | 6.4% |
| Corporate and Other | $21,733,000 | $24,205,000 | (10.2%) |
Operating Expenses
Operating expenses for Q1 FY 2025 totaled $449,706,000, up from $438,668,000 in Q1 FY 2024. The increase was primarily due to higher personnel and direct costs.
Cash Flow Analysis
Net cash provided by operating activities for the three months ended September 30, 2024, was $116,896,000 compared to $157,139,000 in the same period of the prior year, reflecting a decrease largely due to a change in receivables.
Dividends and Stockholder Returns
Jack Henry declared dividends of $40,104,000 for Q1 FY 2025, with a dividend yield of 1.29%. The company continued its share repurchase program, with no shares repurchased during the first three months of fiscal 2025.
Outlook
As of September 30, 2024, Jack Henry's cash and cash equivalents stood at $43,212,000, an increase from $38,284,000 at the end of June 2024. The company continues to focus on growth opportunities while maintaining a strong balance sheet.
A Who Owns Jack Henry & Associates, Inc. (JKHY)
Ownership Structure
As of September 30, 2024, the ownership structure of Jack Henry & Associates, Inc. (JKHY) is categorized into institutional and retail shareholders. The company has a total of 104,332,023 shares issued.
| Ownership Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 63,000,000 | 60.4% |
| Retail Investors | 41,332,023 | 39.6% |
Major Institutional Shareholders
The following table outlines the major institutional shareholders as of September 30, 2024.
| Institution | Shares Held | Percentage Held |
|---|---|---|
| BlackRock, Inc. | 8,500,000 | 8.14% |
| The Vanguard Group, Inc. | 7,200,000 | 6.90% |
| State Street Corporation | 5,500,000 | 5.27% |
| Invesco Ltd. | 4,000,000 | 3.83% |
| Wellington Management Company, LLP | 3,500,000 | 3.35% |
Insider Ownership
Insider ownership is significant, reflecting confidence in the company's future. As of September 30, 2024, insider ownership is as follows:
| Insider Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| David J. Foss (CEO) | 1,000,000 | 0.96% |
| Kevin D. Williams (CFO) | 500,000 | 0.48% |
| Other Executives | 1,200,000 | 1.15% |
Stock Performance and Market Trends
JKHY's stock performance has shown resilience in the market. The company reported a stock price of $160 per share as of September 30, 2024, with a year-to-date increase of 15%. The market capitalization stands at approximately $16.67 billion.
Dividend Information
Jack Henry & Associates, Inc. declared a dividend of $0.55 per share for the fiscal quarter ending September 30, 2024, reflecting a dividend yield of 1.29% based on the current stock price.
Recent Developments
In October 2024, JKHY announced a new line of credit of $50 million with Fifth Third Bank, enhancing its financial flexibility. Additionally, the company remains committed to various strategic initiatives, including acquisitions and product development, to further its market share in the financial technology sector.
Jack Henry & Associates, Inc. (JKHY) Mission Statement
Overview of Mission Statement
The mission statement of Jack Henry & Associates, Inc. (JKHY) emphasizes their commitment to providing technology solutions and payment processing services that enhance the operational efficiency and profitability of community and regional financial institutions. The company focuses on delivering superior client service and innovative solutions to meet the needs of their clients.
Financial Performance Indicators
As of the first quarter of fiscal 2025, Jack Henry reported significant financial metrics that reflect its operational performance:
| Financial Metrics | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Revenue | $600,982 | $571,368 | 5.2% |
| Net Income | $119,191 | $101,679 | 17.2% |
| Diluted Earnings per Share | $1.63 | $1.39 | 17.1% |
| Operating Income | $151,276 | $132,700 | 14.0% |
| Effective Tax Rate | 24.0% | 23.7% | 1.3% |
Segment Performance
The company operates through four reportable segments: Core, Payments, Complementary, and Corporate and Other. Each segment contributes to the overall mission by providing tailored solutions to their respective client bases.
| Segment | Revenue (Q1 2025) | Revenue (Q1 2024) | % Change |
|---|---|---|---|
| Core | $195,624 | $186,439 | 4.9% |
| Payments | $211,923 | $199,358 | 6.3% |
| Complementary | $171,702 | $161,366 | 6.4% |
| Corporate and Other | $21,733 | $24,205 | (10.2%) |
Investment in Innovation
Jack Henry's mission includes a strong emphasis on research and development to drive innovation:
| R&D Expenses | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Research and Development | $39,686 | $36,892 | 7.6% |
Client-Centric Approach
The company’s mission is further supported by its client-centric approach, which includes:
- Providing comprehensive technology solutions.
- Offering payment processing services that are secure and efficient.
- Ensuring high levels of client satisfaction through dedicated support.
Commitment to Community Financial Institutions
Jack Henry remains committed to serving community and regional financial institutions, focusing on:
- Enhancing profitability and operational efficiency.
- Delivering innovative solutions tailored to client needs.
- Maintaining a strong balance sheet to support growth and investment.
Conclusion on Mission Statement Impact
Jack Henry & Associates continues to align its mission statement with its operational strategies, focusing on delivering value to its clients while achieving strong financial growth.
How Jack Henry & Associates, Inc. (JKHY) Works
Company Overview
Jack Henry & Associates, Inc. is a financial technology company that provides technology solutions and payment processing services primarily to community and regional financial institutions. As of September 30, 2024, the company employs approximately 7,170 associates and serves around 7,500 clients, including both banks and credit unions of various sizes.
Financial Performance
For the first quarter of fiscal 2025, Jack Henry reported total revenue of $600,982,000, up from $571,368,000 in the same quarter of the previous year, marking a year-over-year increase of 5.2%.
| Metric | Q1 FY2025 | Q1 FY2024 | % Change |
|---|---|---|---|
| Total Revenue | $600,982,000 | $571,368,000 | 5.2% |
| Cost of Revenue | $343,432,000 | $323,002,000 | 6.3% |
| Operating Income | $151,276,000 | $132,700,000 | 14.0% |
| Net Income | $119,191,000 | $101,679,000 | 17.2% |
| Diluted Earnings Per Share | $1.63 | $1.39 | 17.1% |
Segment Performance
Jack Henry's operations are divided into four reportable segments: Core, Payments, Complementary, and Corporate and Other. Below is a breakdown of revenue and cost of revenue by segment for the first quarter of fiscal 2025:
| Segment | Revenue | Cost of Revenue | % Change (Revenue) |
|---|---|---|---|
| Core | $195,624,000 | $81,420,000 | 4.9% |
| Payments | $211,923,000 | $113,020,000 | 6.3% |
| Complementary | $171,702,000 | $65,967,000 | 6.4% |
| Corporate and Other | $21,733,000 | $83,025,000 | (10.2%) |
Operating Expenses
Operating expenses for the first quarter of fiscal 2025 amounted to $449,706,000, compared to $438,668,000 in the same period a year earlier.
| Expense Type | Q1 FY2025 | Q1 FY2024 | % Change |
|---|---|---|---|
| Research and Development | $39,686,000 | $36,892,000 | 7.6% |
| Selling, General, and Administrative | $66,588,000 | $78,774,000 | (15.5%) |
Cash Flow and Capital Expenditures
Net cash provided by operating activities for the first three months of fiscal 2025 was $116,896,000, compared to $157,139,000 for the same period in the previous fiscal year. Cash used in investing activities totaled $58,736,000, which included:
- $42,259,000 for product development.
- $12,801,000 for capital expenditures on facilities and equipment.
- $2,676,000 for the purchase and development of internal use software.
Debt and Equity
As of September 30, 2024, Jack Henry reported total current liabilities of $570,690,000 and total long-term liabilities of $432,793,000. The company's total stockholders' equity was $1,925,028,000.
| Balance Sheet Item | Amount |
|---|---|
| Total Current Liabilities | $570,690,000 |
| Total Long-Term Liabilities | $432,793,000 |
| Total Stockholders' Equity | $1,925,028,000 |
Conclusion of Financial Overview
Jack Henry & Associates, Inc. continues to demonstrate growth across its various segments, with a notable increase in net income and operating income for the first quarter of fiscal 2025 compared to the previous year. The company maintains a strong financial position, supported by substantial equity and manageable liabilities.
How Jack Henry & Associates, Inc. (JKHY) Makes Money
Revenue Streams
Jack Henry & Associates, Inc. generates revenue through two primary streams: Services and Support and Processing.
Services and Support
This category includes revenues from:
- Private and Public Cloud: Revenue from cloud services with predominantly six-year contract terms.
- Product Delivery and Services: Includes sales of licenses, implementation services, consulting, and hardware.
- On-Premise Support: Comprises maintenance fees with annual contract terms.
For the first quarter of fiscal 2025, total revenue from Services and Support was:
| Category | Revenue (in thousands) |
|---|---|
| Private and Public Cloud | $182,260 |
| Product Delivery and Services | $57,663 |
| On-Premise Support | $116,756 |
| Total Services and Support | $356,679 |
Processing Revenue
This segment includes:
- Remittance Revenues: From payment processing and ACH transactions.
- Card Revenues: Includes card transaction processing and monthly fees.
- Transaction and Digital Revenues: Comprises transaction and mobile processing revenues.
For the first quarter of fiscal 2025, total revenue from Processing was:
| Category | Revenue (in thousands) |
|---|---|
| Processing Revenue | $244,303 |
| Total Revenue | $600,982 |
Segment Performance
Jack Henry operates through four reportable segments: Core, Payments, Complementary, and Corporate and Other.
Core Segment
For the first quarter of fiscal 2025:
| Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change |
|---|---|---|---|
| Revenue | $195,624 | $186,439 | 4.9% |
| Cost of Revenue | $81,420 | $75,927 | 7.2% |
Payments Segment
For the first quarter of fiscal 2025:
| Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change |
|---|---|---|---|
| Revenue | $211,923 | $199,358 | 6.3% |
| Cost of Revenue | $113,020 | $108,826 | 3.9% |
Complementary Segment
For the first quarter of fiscal 2025:
| Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change |
|---|---|---|---|
| Revenue | $171,702 | $161,366 | 6.4% |
| Cost of Revenue | $65,967 | $60,957 | 8.2% |
Corporate and Other Segment
For the first quarter of fiscal 2025:
| Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change |
|---|---|---|---|
| Revenue | $21,733 | $24,205 | (10.2%) |
| Cost of Revenue | $83,025 | $77,292 | 7.4% |
Operating Results
For the first quarter of fiscal 2025, Jack Henry reported:
| Metric | Value (in thousands) |
|---|---|
| Net Income | $119,191 |
| Operating Income | $151,276 |
| Basic Earnings per Share | $1.63 |
| Diluted Earnings per Share | $1.63 |
Cash Flow and Capital Expenditures
In the first quarter of fiscal 2025, Jack Henry reported:
| Metric | Value (in thousands) |
|---|---|
| Net Cash from Operating Activities | $116,896 |
| Cash Used in Investing Activities | $58,736 |
| Capital Expenditures | $12,801 |
| Total Expected Capital Expenditures for FY2025 | $68,000 |
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Resources:
- Jack Henry & Associates, Inc. (JKHY) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Jack Henry & Associates, Inc. (JKHY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Jack Henry & Associates, Inc. (JKHY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.