Jack Henry posts fiscal year earnings drop

Jack Henry & Associates Inc. (Nasdaq: JKHY) ended its fiscal year with a 26% decrease in profits.

Net income for the fiscal year ending June 30 was $271.9 million, down from $365 million in fiscal 2018. The Monett-based financial industry software firm’s diluted share earnings dropped to $3.52 from $4.70 per share, according to a news release.

Chief Financial Officer Kevin Williams cited expenses as the company moved its customers to its private cloud network, the switch of debit and credit card transactions to a new platform, and employee bonuses.

“However, even with these headwinds, our conversion of net income to free cash flow was 96% for the year,” Williams said in the release.

Fiscal 2019 financial notes:
• Revenue rose 6% to $1.6 billion.
• Total expenses climbed 8% to $1.2 billion.
• Contributing to the year’s results, fourth quarter net income dropped 10% to $61 million.

As of June 30, Jack Henry held $2.2 billion in assets. The company has more than 9,000 bank and credit union customers nationwide, according to the release.

JKHY shares were trading at $141.08 as of 8:52 a.m., compared with a 52-week range of $120.20 to $163.68.