Tax benefits push Jack Henry’s profits up 165%

Jack Henry & Associates Inc. (Nasdaq: JKHY) officials credited federal tax reform for a 165 percent increase in quarterly net income.

For the Monett-based financial industry software firm’s second quarter that ended Dec. 31, earnings rose to $155.6 million, or $2.01 per diluted share, from $58.8 million, or 75 cents per diluted share, a year earlier, according to a news release.

"We are pleased to report another record second quarter of revenue and operating income, which are both in line with our previous guidance,” said David Foss, Jack Henry’s president and CEO, in the release. “Our combined sales teams continue to have a solid year by exceeding quotas in Q2, and they're off to a good start in Q3.”

Second-quarter financial notes:
    •    Federal reform largely affected the company’s provision for income taxes, which was a negative $60.4 million, compared with a positive $29.7 million a year earlier.
    •    Revenue rose 8 percent to $374.8 million.
    •    Total expenses climbed 8 percent to $279.5 million.

During the quarter, Jack Henry finalized its $130 million acquisition of Redwood Shores, California-based Ensenta Corp., a cloud-based mobile and online payment provider. Jack Henry also in October purchased Longwood, Florida-based technology firm Vanguard Software Group.

As of Dec. 31, Jack Henry had assets of $1.9 billion and a portfolio of roughly 9,000 financial industry customers, according to the release.

JKHY shares were trading at $117.65 as of 8:38 a.m., compared with a 52-week range of $88.11 to $127.31. The 52-week high was set Jan. 29.