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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): May 7, 2024
JACK HENRY & ASSOCIATES, INC.
(Exact name of Registrant as specified in its Charter)
Delaware0-1411243-1128385
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

663 Highway 60, P.O. Box 807, Monett, MO 65708
(Address of Principal Executive Offices) (Zip Code)

417-235-6652
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a.-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
Title of each classTicker symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueJKHYNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.





Item 2.02
Results of Operations and Financial Condition.
On May 7, 2024, Jack Henry & Associates, Inc. issued a press release announcing fiscal 2024 third quarter results, the text of which is attached hereto as Exhibit 99.1.

Item 9.01
Financial Statements and Exhibits.
(d)    Exhibits    
    99.1     Press release dated May 7, 2024
104     Cover Page Interactive Data File (embedded within the Inline XBRL document)




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.
JACK HENRY & ASSOCIATES, INC.
(Registrant)
Date:May 7, 2024/s/ Mimi L. Carsley
Mimi L. Carsley
Chief Financial Officer and Treasurer


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Press Release
Mimi L. Carsley | Chief Financial Officer | mcarsley@jackhenry.com


FOR IMMEDIATE RELEASE
Jack Henry & Associates, Inc. Reports Third Quarter Fiscal 2024 Results
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Third quarter summary:
•     GAAP revenue increased 5.9% and GAAP operating income increased 3.4% for the fiscal three months ended March 31, 2024, compared to the prior fiscal year quarter.
•     Non-GAAP adjusted revenue increased 7.0% and non-GAAP adjusted operating income increased 8.6% for the fiscal three months ended March 31, 2024, compared to the prior fiscal year quarter.1
▪     GAAP EPS was $1.19 per diluted share for the fiscal three months ended March 31, 2024, compared to $1.12 in the prior fiscal year quarter.
Fiscal year-to-date summary:
•     GAAP revenue increased 7.3% and GAAP operating income increased 2.0% for the fiscal nine months ended March 31, 2024, compared to the prior fiscal year period.
•     Non-GAAP adjusted revenue increased 7.7% and non-GAAP adjusted operating income increased 12.0% for the fiscal nine months ended March 31, 2024, compared to the prior fiscal year period.1
▪     GAAP EPS was $3.85 per diluted share for the fiscal nine months ended March 31, 2024, compared to $3.68 in the prior fiscal year period.
▪     Cash and cash equivalents were $27 million at March 31, 2024, and 2023.
▪     Debt related to credit facilities was $250 million at March 31, 2024, and $375 million at March 31, 2023.
Full year fiscal 2024 guidance:2
CurrentPrevious
GAAPLowHighLowHigh
Revenue updated$2,215$2,228$2,215$2,228
Operating margin
21.9%22.0%21.8%21.9%
EPS updated$5.15$5.19$5.09$5.13
Non-GAAP3
Adjusted revenue updated
$2,197$2,210$2,197$2,210
Adjusted operating margin updated
22.4%22.4%22.3%22.3%
Third Qtr Revenue
Third Qtr Operating Income
F'2024 YTD Net Income
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GAAP
Non-GAAP1
GAAP
Non-GAAP1
GAAP
Non-GAAP1
increasedincreasedincreasedincreasedincreasedincreased
5.9%7.0%3.4%8.6%4.4%15.4%
F'2024 YTD Revenue
F'2024 YTD Operating Income
F'2024 YTD EBITDA
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GAAP
Non-GAAP1
GAAP
Non-GAAP1
Non-GAAP4
increasedincreasedincreasedincreasedincreased
7.3%7.7%2.0%12.0%9.4%
Monett, MO, May 7, 2024 - Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for the fiscal third quarter ended March 31, 2024.


1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP.
2 The full year guidance assumes no acquisitions are made during fiscal year 2024.
3 See tables below on page 8 reconciling fiscal year 2024 GAAP to non-GAAP guidance.
4 See table below on page 14 reconciling net income to non-GAAP EBITDA.
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According to David Foss, Board Chair and CEO, “We are very pleased to report another quarter of strong revenue growth and overall financial performance. Our sales teams produced a record third quarter for sales bookings, and our sales pipeline remains near its all-time high. We continue to execute on our strategy to provide modern technology to help community and regional financial institutions strengthen connections with the people and businesses they serve. As a well-rounded financial technology company, we are well positioned to serve clients of all sizes through a comprehensive suite of innovative solutions and our cloud-native technology modernization strategy.”
Operating Results
Revenue, operating expenses, operating income, and net income for the three and nine months ended March 31, 2024, compared to the three and nine months ended March 31, 2023, were as follows (all dollar amounts in this section are in thousands, except per share amounts):
Revenue
(Unaudited, In Thousands)Three Months Ended
March 31,
% ChangeNine Months Ended
March 31,
% Change
2024202320242023
Revenue
Services and Support$305,017 $291,922 4.5 %$959,214 $902,771 6.3 %
Percentage of Total Revenue56.6 %57.4 %57.9 %58.5 %
Processing233,545 216,630 7.8 %696,417 640,298 8.8 %
Percentage of Total Revenue43.4 %42.6 %42.1 %41.5 %
REVENUE$538,562 $508,552 5.9 %$1,655,631 $1,543,069 7.3 %

Services and support revenue increased for the three months ended March 31, 2024, primarily driven by growth in data processing and hosting revenue of 10.6%. Processing revenue increased for the three months ended March 31, 2024, primarily driven by growth in Jack Henry digital revenue (including Banno) of 26.1%. Other drivers were increases in card, payment processing and other processing revenues.
Services and support revenue increased for the nine months ended March 31, 2024, primarily driven by growth in public cloud revenue of 10.0%. Other drivers were increases in on-premise support and product delivery and services revenues. Processing revenue increased for the nine months ended March 31, 2024, primarily driven by growth in transaction and digital revenue of 19.1%. Other drivers were increases in card and remittance revenues.
For the three months ended March 31, 2024, core segment revenue increased 7.4%, payments segment revenue increased 5.3%, complementary segment revenue increased 5.1%, and corporate and other segment revenue increased 5.8%. Non-GAAP adjusted core segment revenue increased 8.2%, non-GAAP adjusted payments segment revenue increased 5.7%, non-GAAP adjusted complementary segment revenue increased 7.7%, and non-GAAP adjusted corporate and other segment revenue increased 5.8% (see revenue lines of segment break-out tables on pages 5 and 6 below).
For the nine months ended March 31, 2024, core segment revenue increased 7.6%, payments segment revenue increased 6.2%, complementary segment revenue increased 7.1%, and corporate and other segment revenue increased 17.1%. Non-GAAP adjusted core segment revenue increased 8.0%, non-GAAP adjusted payments segment revenue increased 6.1%, non-GAAP adjusted complementary segment revenue increased 8.3%, and non-GAAP adjusted corporate and other segment revenue increased 17.1% (see revenue lines of segment break-out tables on pages 6 and 7 below).

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Operating Expenses and Operating Income
(Unaudited, In Thousands)Three Months Ended
March 31,
% ChangeNine Months Ended
March 31,
% Change
2024202320242023
Cost of Revenue$328,224 $307,345 6.8 %$972,205 $910,195 6.8 %
Percentage of Total Revenue5
60.9 %60.4 %58.7 %59.0 %
Research and Development35,993 34,625 4.0 %108,363 104,179 4.0 %
Percentage of Total Revenue5
6.7 %6.8 %6.5 %6.8 %
Selling, General, and Administrative62,246 58,192 7.0 %211,298 172,205 22.7 %
Percentage of Total Revenue5
11.6 %11.4 %12.8 %11.2 %
OPERATING EXPENSES426,463 400,162 6.6 %1,291,866 1,186,579 8.9 %
OPERATING INCOME$112,099 $108,390 3.4 %$363,765 $356,490 2.0 %
Operating Margin5
20.8 %21.3 %22.0 %23.1 %
Cost of revenue increased for the three and nine months ended March 31, 2024, primarily due to higher direct costs generally consistent with increases in the related revenue, increased personnel costs due to an increase in employee headcount in the trailing twelve months, and higher internal licenses and fees.
Research and development expense increased for the three months ended March 31, 2024, primarily due to cloud consumption costs, net of capitalization. Research and development expense increased for the nine months ended March 31, 2024, primarily due to higher personnel costs (net of capitalized personnel costs) related to the Payrailz, LLC ("Payrailz") acquisition6 and Jack Henry Platform.
Selling, general, and administrative expense increased for the three months ended March 31, 2024, primarily due to higher personnel costs from increased commissions and medical benefits expenses. Selling, general, and administrative expense increased for the nine months ended March 31, 2024, primarily due to higher personnel costs from the voluntary employee departure incentive payment (VEDIP) program7 and a decrease in the gain on sale of assets, net, period over period.
Net Income
(Unaudited, In Thousands,
Except Per Share Data)
Three Months Ended
March 31,
% ChangeNine Months Ended
March 31,
% Change
2024202320242023
Income Before Income Taxes$114,165 $106,115 7.6 %$367,635 $350,624 4.9 %
Provision for Income Taxes27,066 24,566 10.2 %86,892 81,751 6.3 %
NET INCOME$87,099 $81,549 6.8 %$280,743 $268,873 4.4 %
Diluted earnings per share$1.19 $1.12 6.9 %$3.85 $3.68 4.6 %
Effective tax rates for the three months ended March 31, 2024, and 2023 were 23.7% and 23.2%, respectively. Effective tax rates for the nine months ended March 31, 2024, and 2023 were 23.6% and 23.3%, respectively.


According to Mimi Carsley, CFO and Treasurer, “For the third quarter of the fiscal year, our private cloud and processing services continued to drive strong revenue growth. We had strong, organic revenue growth of over 7% on a non-GAAP basis and non-GAAP operating income grew over 8%. These results reflect the Jack Henry team’s disciplined approach to cost control.”

5 Operating margin is calculated by dividing operating income by revenue. Operating margin plus operating expense components as a percentage of total revenue may not equal 100% due to rounding.
6 On August 31, 2022, the Company acquired all the equity interest in Payrailz.
7 The VEDIP program was a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
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Impact of Non-GAAP Adjustments
The tables below show our revenue, operating income, and net income (in thousands) for the three and nine months ended March 31, 2024, compared to the three and nine months ended March 31, 2023, excluding the impacts of deconversions, acquisitions, the VEDIP program expense,** and the gain on sale of assets, net.

On August 31, 2022, the Company acquired all the equity interest in Payrailz (the "acquisition"). Payrailz related revenue, operating expenses, operating income, and net income excluded in the tables below in the column for the nine months ended March 31, 2024, include Payrailz activity for the first two months of the fiscal year only.

(Unaudited, In Thousands)Three Months Ended March 31,% ChangeNine Months Ended March 31,% Change
2024202320242023
GAAP Revenue*
$538,562 $508,552 5.9 %$1,655,631 $1,543,069 7.3 %
Adjustments:
Deconversion revenue(843)(6,143)(9,861)(17,042)
Revenue from acquisition— — (1,945)— 
NON-GAAP ADJUSTED REVENUE*
$537,719 $502,409 7.0 %$1,643,825 $1,526,027 7.7 %
GAAP Operating Income$112,099 $108,390 3.4 %$363,765 $356,490 2.0 %
Adjustments:
Operating income from deconversions(5,130)(7,552)(14,459)
Operating loss from acquisition— — 2,237 — 
VEDIP program expense**
— — 16,443 — 
Gain on sale of assets, net— — — (7,384)
NON-GAAP ADJUSTED OPERATING INCOME$112,105 $103,260 8.6 %$374,893 $334,647 12.0 %
Non-GAAP Adjusted Operating Margin***
20.8 %20.6 %22.8 %21.9 %
GAAP Net Income$87,099 $81,549 6.8 %$280,743 $268,873 4.4 %
*GAAP revenue is comprised of services and support and processing revenues (see page 2). Reducing services and support revenue by deconversion revenue for the three months ended March 31, 2024, and 2023, which was $843 for the current fiscal year quarter and $6,143 for the prior fiscal year quarter, results in non-GAAP adjusted services and support revenue growth of 6.4% quarter over quarter. There were no non-GAAP adjustments to processing revenue for the three months ended March 31, 2024, and 2023.
Reducing services and support revenue by deconversion revenue for the nine months ended March 31, 2024, and 2023, which was $9,861 for the current fiscal year-to-date period and $17,042 for the prior fiscal year-to-date period, and by $2 of revenue from acquisition in the current fiscal year-to-date period, results in non-GAAP adjusted services and support revenue growth of 7.2% period over period. Reducing processing revenue by revenue from acquisition for the nine months ended March 31, 2024, which was $1,943, results in non-GAAP adjusted processing revenue growth of 8.5% year-to-date period over year-to-date period.
**The VEDIP program expense for the nine months ended March 31, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
***Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.
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(Unaudited, In Thousands)Three Months Ended March 31,% ChangeNine Months Ended March 31,% Change
2024202320242023
GAAP Net Income$87,099 $81,549 6.8 %$280,743 $268,873 4.4 %
Adjustments:
Net income from deconversions(5,130)(7,552)(14,459)
VEDIP program expense*
— — 16,443 — 
Net loss from acquisition— — 4,656 — 
Gain on sale of assets, net— — — (7,384)
Tax impact of adjustments**
(1)1,231 (3,250)5,243 
NON-GAAP ADJUSTED NET INCOME$87,104 $77,650 12.2 %$291,040 $252,273 15.4 %
*The VEDIP program expense for the nine months ended March 31, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
**The tax impact of adjustments is calculated using a tax rate of 24% for the three and nine month periods of fiscal 2024 and for the three and nine month periods of fiscal 2023. Our tax rate for non-GAAP adjustment items takes a broad look at our recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.


The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.
Three Months Ended March 31, 2024
(Unaudited, In Thousands)CorePaymentsComplementaryCorporate and OtherTotal
GAAP REVENUE$166,655 $201,919 $149,231 $20,757 $538,562 
Non-GAAP adjustments*(1,291)(910)1,366 (8)(843)
NON-GAAP ADJUSTED REVENUE165,364 201,009 150,597 20,749 537,719 
GAAP COST OF REVENUE72,153 109,848 65,414 80,809 328,224 
Non-GAAP adjustments*(225)(95)(348)(3)(671)
NON-GAAP ADJUSTED COST OF REVENUE71,928 109,753 65,066 80,806 327,553 
GAAP SEGMENT INCOME$94,502 $92,071 $83,817 $(60,052)
Segment Income Margin**56.7 %45.6 %56.2 %(289.3)%
NON-GAAP ADJUSTED SEGMENT INCOME$93,436 $91,256 $85,531 $(60,057)
Non-GAAP Adjusted Segment Income Margin**
56.5 %45.4 %56.8 %(289.4)%
Research and Development35,993 
Selling, General, and Administrative62,246 
Non-GAAP adjustments unassigned to a segment***(178)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES425,614 
NON-GAAP ADJUSTED OPERATING INCOME$112,105 
*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Segment income margin is calculated by dividing segment income by revenue. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue.
***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.

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Three Months Ended March 31, 2023
(Unaudited, In Thousands)CorePaymentsComplementaryCorporate and OtherTotal
GAAP REVENUE$155,106 $191,833 $141,987 $19,626 $508,552 
Non-GAAP adjustments*(2,315)(1,643)(2,170)(15)(6,143)
NON-GAAP ADJUSTED REVENUE152,791 190,190 139,817 19,611 502,409 
GAAP COST OF REVENUE69,994 106,216 61,037 70,098 307,345 
Non-GAAP adjustments*(238)(62)(166)(4)(470)
NON-GAAP ADJUSTED COST OF REVENUE69,756 106,154 60,871 70,094 306,875 
GAAP SEGMENT INCOME$85,112 $85,617 $80,950 $(50,472)
Segment Income Margin54.9 %44.6 %57.0 %(257.2)%
NON-GAAP ADJUSTED SEGMENT INCOME$83,035 $84,036 $78,946 $(50,483)
Non-GAAP Adjusted Segment Income Margin54.3 %44.2 %56.5 %(257.4)%
Research and Development34,625 
Selling, General, and Administrative58,192 
Non-GAAP adjustments unassigned to a segment**(543)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES399,149 
NON-GAAP ADJUSTED OPERATING INCOME$103,260 
*Revenue non-GAAP adjustments for all segments were deconversion revenues. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.
Nine Months Ended March 31, 2024
(Unaudited, In Thousands)CorePaymentsComplementaryCorporate and OtherTotal
GAAP REVENUE$518,696 $605,115 $463,064 $68,756 $1,655,631 
Non-GAAP adjustments*(4,885)(5,415)(1,440)(66)(11,806)
NON-GAAP ADJUSTED REVENUE513,811 599,700 461,624 68,690 1,643,825 
GAAP COST OF REVENUE217,449 330,297 191,712 232,747 972,205 
Non-GAAP adjustments*(650)(3,507)(715)(24)(4,896)
NON-GAAP ADJUSTED COST OF REVENUE216,799 326,790 190,997 232,723 967,309 
GAAP SEGMENT INCOME$301,247 $274,818 $271,352 $(163,991)
Segment Income Margin58.1 %45.4 %58.6 %(238.5)%
NON-GAAP ADJUSTED SEGMENT INCOME$297,012 $272,910 $270,627 $(164,033)
Non-GAAP Adjusted Segment Income Margin57.8 %45.5 %58.6 %(238.8)%
Research and Development108,363 
Selling, General, and Administrative211,298 
Non-GAAP adjustments unassigned to a segment**(18,038)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES1,268,932 
NON-GAAP ADJUSTED OPERATING INCOME$374,893 
*Revenue non-GAAP adjustments for the Core, Complementary, and Corporate and Other segments were deconversion revenue. Revenue non-GAAP adjustments for the Payments segment were deconversion revenue of $(3,470) and acquisition revenue of $(1,945). Cost of revenue non-GAAP adjustments for the Core and Complementary segments were deconversion costs. Cost of revenue non-GAAP adjustments for the Payments and Corporate and Other segments were deconversion costs of $(193) and $(4), respectively, and acquisition costs of $(3,314) and $(20), respectively.
**Non-GAAP adjustments unassigned to a segment were selling, general, and administrative VEDIP expenses, deconversion costs, and acquisition costs of $(16,443), $(747), and $(6), respectively, and research and development acquisition costs of $(842).


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Nine Months Ended March 31, 2023
(Unaudited, In Thousands)CorePaymentsComplementaryCorporate and OtherTotal
GAAP REVENUE$481,961 $569,843 $432,526 $58,739 $1,543,069 
Non-GAAP adjustments*(6,248)(4,413)(6,319)(62)(17,042)
NON-GAAP ADJUSTED REVENUE475,713 565,430 426,207 58,677 1,526,027 
GAAP COST OF REVENUE207,265 314,181 178,085 210,664 910,195 
Non-GAAP adjustments*(656)(221)(538)(20)(1,435)
NON-GAAP ADJUSTED COST OF REVENUE206,609 313,960 177,547 210,644 908,760 
GAAP SEGMENT INCOME$274,696 $255,662 $254,441 $(151,925)
Segment Income Margin57.0 %44.9 %58.8 %(258.6)%
NON-GAAP ADJUSTED SEGMENT INCOME$269,104 $251,470 $248,660 $(151,967)
Non-GAAP Adjusted Segment Income Margin56.6 %44.5 %58.3 %(259.0)%
Research and Development104,179 
Selling, General, and Administrative172,205 
Non-GAAP adjustments unassigned to a segment**6,236 
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES1,191,380 
NON-GAAP ADJUSTED OPERATING INCOME$334,647 
*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Non-GAAP adjustments unassigned to a segment were the selling, general, and administrative gain on sale of assets, net, and deconversion costs of $7,384 and $(1,148), respectively.

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The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2024. Non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses, acquisition revenue and costs related to the August 31, 2022, Payrailz acquisition,* costs related to the July 2023 VEDIP program, and assumes no acquisitions or dispositions are made during fiscal year 2024.

GAAP to Non-GAAP GUIDANCE (In Millions, except per share data)Annual FY24**
LowHigh
GAAP REVENUE$2,215 $2,228 
     Growth6.6 %7.2 %
Deconversions***16 16 
Acquisition2 2 
NON-GAAP ADJUSTED REVENUE**$2,197 $2,210 
     Non-GAAP Adjusted Growth7.4 %8.0 %
GAAP OPERATING EXPENSES$1,729 $1,738 
     Growth8.3 %8.8 %
Deconversion costs***3 3 
Acquisition costs4 4 
VEDIP Program****16 16 
NON-GAAP ADJUSTED OPERATING EXPENSES**$1,705 $1,715 
     Non-GAAP Adjusted Growth6.8 %7.3 %
GAAP OPERATING INCOME$486 $490 
     Growth1.1 %1.9 %
GAAP OPERATING MARGIN21.9 %22.0 %
NON-GAAP ADJUSTED OPERATING INCOME**$492 $496 
     Non-GAAP Adjusted Growth9.6 %10.5 %
NON-GAAP ADJUSTED OPERATING MARGIN22.4 %22.4 %
GAAP EPS$5.15 $5.19 
     Growth2.6 %3.5 %
*Excluded acquisition revenue and costs are for the first two months of the fiscal year only (see "Impact of Non-GAAP Adjustments") on page 4.
**GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding.
***Deconversion revenue and related operating expenses are based on actual results for the nine months ended March 31, 2024 and estimates for the remainder of fiscal year 2024 based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on April 29, 2024.
****This cost relates to the group of employees who participated in a Company VEDIP program offered in July 2023 to certain employees of a specified minimum age who had reached a specified minimum number of years of service with the Company.








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Balance Sheet and Cash Flow Review
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Cash and cash equivalents were $27 million at March 31, 2024, and 2023.
Trade receivables were $263 million at March 31, 2024, compared to $238 million at March 31, 2023.
The Company had $250 million of borrowings at March 31, 2024 compared to $375 million of borrowings at March 31, 2023.
Deferred revenue decreased to $214 million at March 31, 2024, compared to $226 million a year ago.
Stockholders' equity increased to $1,780 million at March 31, 2024, compared to $1,538 million a year ago.
    
*See table below for Net Cash Provided by Operating Activities and on page 14 for Return on Average Shareholders’ Equity. Tables reconciling the non-GAAP measures Free Cash Flow and Return on Invested Capital (ROIC) to GAAP measures are also on page 14. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and ROIC.

The following table summarizes net cash from operating activities:
(Unaudited, In Thousands)Nine Months Ended March 31,
20242023
Net income$280,743 $268,873 
Depreciation34,943 36,740 
Amortization114,270 105,609 
Change in deferred income taxes(15,325)(36,370)
Other non-cash expenses22,677 14,225 
Change in receivables97,835 110,686 
Change in deferred revenue(185,784)(184,130)
Change in other assets and liabilities(13,117)(108,602)
NET CASH FROM OPERATING ACTIVITIES$336,242 $207,031 


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The following table summarizes net cash from investing activities:
(Unaudited, In Thousands)Nine Months Ended March 31,
20242023
Payment for acquisitions, net of cash acquired*$ $(229,628)
Capital expenditures(34,347)(27,237)
Proceeds from dispositions900 27,885 
Purchased software(4,561)(1,471)
Computer software developed(125,351)(124,110)
Purchase of investments(1,146)(1,000)
NET CASH FROM INVESTING ACTIVITIES$(164,505)$(355,561)
*During first quarter fiscal 2023, the Company completed its acquisition of Payrailz.


The following table summarizes net cash from financing activities:
(Unaudited, In Thousands)Nine Months Ended March 31,
20242023
Borrowings on credit facilities*$335,000 $550,000 
Repayments on credit facilities and financing leases(360,000)(290,059)
Purchase of treasury stock(20,000)(25,000)
Dividends paid(115,792)(109,346)
Net cash from issuance of stock and tax related to stock-based compensation4,066 700 
NET CASH FROM FINANCING ACTIVITIES$(156,726)$126,295 
*The Company's acquisition of Payrailz during first quarter fiscal 2023 was primarily funded by new borrowings under the Company's credit facilities.



















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Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted operating expenses, adjusted operating margin, adjusted segment income margin, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, return on invested capital (ROIC), and non-GAAP adjusted net income.
We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. Adjusted revenue, adjusted operating income, adjusted operating margin, adjusted segment income, adjusted segment income margin, adjusted cost of revenue, adjusted operating expenses, and adjusted net income eliminate one-time deconversion revenue and associated costs, the effects of acquisitions and divestitures, the VEDIP program expense, and the gain on sale of assets, net, all of which management believes are not indicative of the Company's operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest expense, taxes, depreciation, and amortization, adjusted for net income before the effect of interest expense, taxes, depreciation, and amortization attributable to eliminated one-time deconversions, acquisitions and divestitures, the VEDIP program expense, and the gain on sale of assets, net. Free cash flow is defined as net cash from operating activities, less capitalized expenditures, internal use software, and capitalized software, plus proceeds from the sale of assets. ROIC is defined as net income divided by average invested capital, which is the average of beginning and ending long-term debt and stockholders’ equity for a given period. Management believes that non-GAAP EBITDA is an important measure of the Company’s overall operating performance and excludes certain costs and other transactions that management deems one time or non-operational in nature; free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions; and ROIC is a measure of the Company’s allocation efficiency and effectiveness of its invested capital. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company's performance.
Non-GAAP financial measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and therefore, are unlikely to be comparable with calculations of similar measures for other companies.
Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Reconciliations of the non-GAAP financial measures to related GAAP measures are included.

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About Jack Henry & Associates, Inc.®
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Quarterly Conference Call
Jack HenryTM (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity — offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 47 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.
The Company will hold a conference call on May 8, 2024, at 7:45 a.m. Central Time, and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/corporate-events-and-presentations and will remain available for one year.
Statements made in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in the Company's Securities and Exchange Commission filings, including the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
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MEDIA CONTACT
Mark Folk
Corporate Communications
Jack Henry & Associates, Inc.
704-890-5323
MFolk@jackhenry.com
ANALYST CONTACT
Vance Sherard, CFA
Investor Relations
Jack Henry & Associates, Inc.
417-235-6652
VSherard@jackhenry.com
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Condensed Consolidated Statements of Income (Unaudited)
(In Thousands, except per share data)Three Months Ended March 31,% ChangeNine Months Ended March 31,% Change
2024202320242023
REVENUE$538,562 $508,552 5.9 %$1,655,631 $1,543,069 7.3 %
Cost of Revenue328,224 307,345 6.8 %972,205 910,195 6.8 %
Research and Development35,993 34,625 4.0 %108,363 104,179 4.0 %
Selling, General, and Administrative62,246 58,192 7.0 %211,298 172,205 22.7 %
EXPENSES426,463 400,162 6.6 %1,291,866 1,186,579 8.9 %
OPERATING INCOME112,099 108,390 3.4 %363,765 356,490 2.0 %
Interest income6,499 2,391 171.8 %16,365 3,783 332.6 %
Interest expense(4,433)(4,666)(5.0)%(12,495)(9,649)29.5 %
Interest Income (Expense), net2,066 (2,275)(190.8)%3,870 (5,866)(166.0)%
INCOME BEFORE INCOME TAXES114,165 106,115 7.6 %367,635 350,624 4.9 %
Provision for Income Taxes27,066 24,566 10.2 %86,892 81,751 6.3 %
NET INCOME$87,099 $81,549 6.8 %$280,743 $268,873 4.4 %
Diluted net income per share$1.19 $1.12 $3.85 $3.68 
Diluted weighted average shares outstanding73,031 73,074 73,010 73,119 
Consolidated Balance Sheet Highlights (Unaudited)
(In Thousands)March 31,% Change
20242023
Cash and cash equivalents$27,254 $26,552 2.6 %
Receivables263,416 238,364 10.5 %
Total assets2,770,498 2,607,597 6.2 %
Accounts payable and accrued expenses$227,715 $163,794 39.0 %
Current and long-term debt250,000 375,001 (33.3)%
Deferred revenue213,945 226,146 (5.4)%
Stockholders' equity1,779,931 1,538,309 15.7 %
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Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)
Three Months Ended March 31,% ChangeNine Months Ended March 31,% Change
(in thousands)2024202320242023
Net income$87,099 $81,549 $280,743 $268,873 
Net interest(2,066)2,275 (3,870)5,865 
Taxes27,066 24,565 86,893 81,751 
Depreciation and amortization50,083 48,637 149,214 142,349 
Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated one-time adjustments*6 (5,130)9,006 (21,843)
NON-GAAP EBITDA$162,188 $151,896 6.8 %$521,986 $476,995 9.4 %
*The fiscal third quarter adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions. The fiscal year-to-date period adjustments were for deconversions, the VEDIP program expense, and the acquisition, and were $(7,551), $16,443, and $114, respectively. The prior fiscal third quarter adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions. The prior fiscal year-to-date period adjustments were for deconversions and a gain on sale of assets, net, and were $(14,459) and $(7,384), respectively.
Calculation of Free Cash Flow (Non-GAAP)Nine Months Ended March 31,
(in thousands)20242023
Net cash from operating activities$336,242 $207,031 
Capitalized expenditures(34,347)(27,237)
Internal use software(4,561)(1,471)
Proceeds from sale of assets900 27,885 
Capitalized software(125,351)(124,110)
FREE CASH FLOW$172,883 $82,098 
Calculation of the Return on Average Shareholders’ EquityMarch 31,
(in thousands)20242023
Net income (trailing four quarters)$378,516 $349,299 
Average stockholder's equity (period beginning and ending balances)1,659,120 1,433,459 
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY22.8%24.4%
Calculation of Return on Invested Capital (ROIC) (Non-GAAP)March 31,
(in thousands)20242023
Net income (trailing four quarters)$378,516 $349,299 
Average stockholder's equity (period beginning and ending balances)1,659,120 1,433,459 
Average current maturities of long-term debt (period beginning and ending balances)1 51 
Average long-term debt (period beginning and ending balances)312,500 300,001 
Average invested capital$1,971,621 $1,733,511 
ROIC19.2%20.1%


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14
v3.24.1.u1
Cover Page
May 07, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date May 07, 2024
Entity Central Index Key 0000779152
Entity Registrant Name JACK HENRY & ASSOCIATES, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 0-14112
Entity Tax Identification Number 43-1128385
Entity Address, Address Line One 663 Highway 60, P.O. Box 807
Entity Address, City or Town Monett
Entity Address, State or Province MO
Entity Address, Postal Zip Code 65708
City Area Code 417
Local Phone Number 235-6652
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q3

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