Stock Segment: Area companies report quarterly results

Jack Henry profit edges down 4%

Monett-based Jack Henry & Associates says less discretionary spending on computer hardware and software is the reason for a 4 percent decline in net income last quarter.

The financial technology provider issued results Feb. 3 for its fiscal 2009 second quarter, which ended Dec. 31.

Net income was $28 million, down 4 percent compared to $29.2 million in the same quarter a year earlier. Earnings per share, however, climbed 1 cent to 33 cents.

Total revenue was down 1 percent to $190.2 million, compared to $191.9 million a year ago. Income from continuing operations fell 5 percent to $28 million, and gross profit was down 9 percent to $77.4 million.

Operating expenses, meanwhile, dropped 8 percent for the quarter, with cuts to contracting and consulting costs, travel-related expenses and meeting costs.

"We continued to see a cautious outlook by our customers during the quarter regarding discretionary software and hardware expenditures and expect these types of spending items to remain a challenge until we return to some form of economic stability," CEO Jack Prim said in a news release. "During these challenging times, we continue to maintain a strong focus on cost control which is reflected in our operating expense reduction in the quarter."

Construction began late last year on Jack Henry's new Springfield campus at the northeast corner of the U.S. Highway 65 and Battlefield Road interchange and should finish in spring or early summer 2010.

Jack Henry shares (Nasdaq: JKHY) closed Feb. 4 at $16.55, compared to a 52-week range of $14.76 to $27.48.

Leggett reports 4Q loss, $104M yearly profit

Leggett & Platt posted an $18 million loss in the fourth quarter but managed to swing a $104.4 million profit for the year.

The Carthage-based furnishings manufacturer reported results Feb. 3.

Leggett had a quarterly loss of 11 cents per share, or $18 million. That's an improvement from a loss of $1.21 per share, or $212.6 million, in fourth-quarter 2007. Sales in fourth-quarter 2008 were $883 million, down 15 percent compared to a year earlier.

The quarter was negatively affected by lower unit sales volumes, lower production volumes and lack of overhead recovery, the company said in a news release. Sales were down because of extremely weak market demand, though that was partially offset by inflation-related price increases, officials said.

"The weakened economy has resulted in dreadful market demand, with fourth-quarter unit volumes down more than 20 percent," said President and CEO David S. Haffner, in the release. "Consumers have significantly curtailed spending, fearing further market declines, unavailable credit and/or job losses."

Fourth-quarter cash flow from operations was $233 million, the highest level in more than a decade, caused by the company's inventory reduction. During the quarter, Leggett also cut its work force by 9 percent, or 2,000 employees.

For 2008, Leggett earned a profit of $104.4 million, or 62 cents per share, compared to an $11.2 million loss, or a 6 cents per share loss, in 2007. 2008 sales were $4.08 billion.

Leggett initiated a restructuring plan in November 2007. Since then, the company divested five business units - resulting in $400 million in after-tax proceeds in 2008; reduced its store fixtures unit to half its previous size; reduced spending on capital and acquisitions by 50 percent; increased its annual dividend by 39 percent; bought back 9 percent of outstanding shares; and implemented a formal annual strategic planning process at the individual unit level.

Leggett's 2009 outlook calls for earnings between 60 cents and $1 per share. Sales projections are between $3.2 billion and $3.6 billion, or between 12 percent and 22 percent lower than 2008 sales.

Shares (NYSE: LEG) closed Feb. 4 at $12.35 compared to a 52-week range $12.03 to $24.60.

Empire District posts $40M in 08 earnings, changes board structure

Empire District Electric Co. posted $39.7 million in 2008 earnings, the company announced at a Feb. 5 meeting of its board of directors.

The yearly total equates to $1.17 per diluted share, compared to $33.2 million, or $1.09 per share, in 2007. Fourth-quarter earnings totaled $7.7 million, or 23 cents per share, compared to a loss of $400,000, or 1 cent per share, in fourth-quarter 2007.

Among the company's 2008 highlights was the beginning of commercial operations at the Meridian Way Wind Farm in December. The wind farm, owned and operated by Horizon Wind Energy near Concordia, Kan., is expected to create 350,000 megawatt-hours of electricity annually; when combined with the Elk River Windfarm in Beaumont, Kan., wind energy will account for as much as 15 percent of the company's energy.

The board also announced two new members, pending board approval at its April 23 meeting.

Bonnie Lind and Paul Portney were nominated to fill board vacancies that will be left when members Mary McCleary Posner and Myron McKinney retire in April.

Lind is senior vice president, chief financial officer and treasurer for Neenah Paper Inc. in Alpharetta, Ga., where she has been employed since 2004. She previously held various financial and management positions during 21 years at Kimberly-Clark Corp. Lind has a bachelor's degree in finance from the University of Georgia.

Portney is dean of Eller College of Management at the University of Arizona, a position he has held since 2005. Portney, also a economics professor at the university, was previously president and CEO of Washington, D.C., environment and energy research nonprofit Resources for the Future Inc. He also served as chief economist on the White House Council on Environmental Quality. Portney has a doctorate from Northwestern University.

Empire District shares (NYSE: EDE) closed Feb. 5 at $18.07, compared to a 52-week range of $14.90 to $23.48.