0000779152-18-000093.txt : 20181101 0000779152-18-000093.hdr.sgml : 20181101 20181101171015 ACCESSION NUMBER: 0000779152-18-000093 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20181101 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20181101 DATE AS OF CHANGE: 20181101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HENRY JACK & ASSOCIATES INC CENTRAL INDEX KEY: 0000779152 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 431128385 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14112 FILM NUMBER: 181154713 BUSINESS ADDRESS: STREET 1: PO BOX 807 STREET 2: 663 HWY 60 CITY: MONETT STATE: MO ZIP: 65708-0807 BUSINESS PHONE: 4172356652 MAIL ADDRESS: STREET 1: PO BOX 807 STREET 2: 663 HWY 60 CITY: MONETT STATE: MO ZIP: 65708-0807 8-K 1 jkhy-20181031x8kxasc606rec.htm 8-K Document


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): November 1, 2018
JACK HENRY & ASSOCIATES, INC.
(Exact name of Registrant as specified in its Charter)
Delaware
0-14112
43-1128385
(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 Principle 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))

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 7.01          Regulation FD Disclosure
Jack Henry & Associates, Inc. (the "Company") is filing this Current Report on Form 8-K to recast certain prior period financial statements and schedules to reflect our retrospective application of the new revenue accounting standard, "Revenue from Contracts with Customers" ("Topic 606"), issued under Accounting Standard Update ("ASU") 2014-09 and amended by various subsequent ASUs. Topic 606 supersedes substantially all authoritative literature for revenue recognition. The new model enacts a five-step process for achieving the core principle, which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company has adopted the new standard effective July 1, 2018 utilizing the full retrospective method.
The Company will begin to report comparative results under the new accounting standard in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2018.
The information included in this Item 7.01, including the accompanying exhibits, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act", or otherwise subject to the liabilities of that Section. The information in this Item 7.01 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01    Financial Statements and Exhibits
(d)    Exhibits    





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:
November 1, 2018
 
/s/ Kevin D. Williams
 
 
 
Kevin D. Williams
 
 
 
Chief Financial Officer and Treasurer



 EX-99.1 2 jkhy-20181031xexhibit99xas.htm EXHIBIT 99.1 ASC TOPIC 606 RECAST Exhibit


JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
SUMMARY TOPIC 606 IMPACT TO REVENUE
(In Thousands, Except Per Share Data)
(Unaudited)

 
Three months ended
 
Years ended
 
Sept. 30,
Dec. 31,
Mar. 31,
Jun. 30,
 
June 30,
 
2017
2017
2018
2018
 
2018
2017
Revenue, as reported
$
359,934

$
374,756

$
384,684

$
417,229

 
$
1,536,603

$
1,431,117

Topic 606 adjustments
1,350

(17,547
)
(10,636
)
(38,973
)
 
(65,806
)
(42,827
)
Recast 606 revenue
$
361,284

$
357,209

$
374,048

$
378,256

 
$
1,470,797

$
1,388,290






JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
RECAST CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)


 
 
As Reported
Three Months Ended
September 30, 2017
 
Topic 606 Adjustments
 
GAAP Recast
Three Months Ended
September 30, 2017
REVENUE
 
$
359,934

 
$
1,350

 
$
361,284

 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
  Cost of Revenue
 
204,715

 
(800
)
 
203,915

  Research and Development
 
20,929

 
—

 
20,929

  Selling, General and Administrative
 
43,733

 
(2,645
)
 
41,088

  Gain on Disposal of a Business
 
(1,705
)
 
—

 
(1,705
)
    Total Expenses
 
267,672

 
(3,445
)
 
264,227

 
 
 
 
 
 
 
OPERATING INCOME
 
92,262

 
4,795

 
97,057

 
 
 
 
 
 
 
INTEREST INCOME (EXPENSE)
 
 
 
 
 
 
  Interest Income
 
147

 
—

 
147

  Interest Expense
 
(189
)
 
—

 
(189
)
    Total Interest Income (Expense)
 
(42
)
 
—

 
(42
)
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
92,220

 
4,795

 
97,015

 
 
 
 
 
 
 
PROVISION/(BENEFIT) FOR INCOME TAXES
 
28,809

 
1,336

 
30,145

 
 
 
 
 
 
 
NET INCOME
 
$
63,411

 
$
3,459

 
$
66,870

 
 
 
 
 
 
 
Basic earnings per share
 
$
0.82

 
 
 
$
0.87

Basic weighted average shares outstanding
 
77,283

 
 
 
77,283

 
 
 
 
 
 
 
Diluted earnings per share
 
$
0.82

 
 
 
$
0.86

Diluted weighted average shares outstanding
 
77,646

 
 
 
77,646





JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
RECAST CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)

 
 
As Reported
Three Months Ended
December 31, 2017
 
Topic 606 Adjustments
 
GAAP Recast
Three Months Ended
December 31, 2017
REVENUE
 
$
374,756

 
$
(17,547
)
 
$
357,209

 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
  Cost of Revenue
 
211,653

 
(4,553
)
 
207,100

  Research and Development
 
22,414

 
—

 
22,414

  Selling, General and Administrative
 
45,613

 
(2,519
)
 
43,094

  Gain on Disposal of a Business
 
(189
)
 
—

 
(189
)
    Total Expenses
 
279,491

 
(7,072
)
 
272,419

 
 
 
 
 
 
 
OPERATING INCOME
 
95,265

 
(10,475
)
 
84,790

 
 
 
 
 
 
 
INTEREST INCOME (EXPENSE)
 
 
 
 
 
 
  Interest Income
 
146

 
—

 
146

  Interest Expense
 
(250
)
 
—

 
(250
)
    Total Interest Income (Expense)
 
(104
)
 
—

 
(104
)
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
95,161

 
(10,475
)
 
84,686

 
 
 
 
 
 
 
PROVISION/(BENEFIT) FOR INCOME TAXES
 
(60,413
)
 
(16,144
)
 
(76,557
)
 
 
 
 
 
 
 
NET INCOME
 
$
155,574

 
$
5,669

 
$
161,243

 
 
 
 
 
 
 
Basic earnings per share
 
$
2.01

 
 
 
$
2.09

Basic weighted average shares outstanding
 
77,218

 
 
 
77,218

 
 
 
 
 
 
 
Diluted earnings per share
 
$
2.01

 
 
 
$
2.08

Diluted weighted average shares outstanding
 
77,565

 
 
 
77,565





JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
RECAST CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)

 
 
As Reported
Three Months Ended
March 31, 2018
 
Topic 606 Adjustments
 
GAAP Recast
Three Months Ended
March 31, 2018
REVENUE
 
$
384,684

 
$
(10,636
)
 
$
374,048

 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
  Cost of Revenue
 
221,592

 
(3,075
)
 
218,517

  Research and Development
 
22,591

 
—

 
22,591

  Selling, General and Administrative
 
44,185

 
(1,952
)
 
42,233

  Gain on Disposal of a Business
 
—

 
—

 
—

    Total Expenses
 
288,368

 
(5,027
)
 
283,341

 
 
 
 
 
 
 
OPERATING INCOME
 
96,316

 
(5,609
)
 
90,707

 
 
 
 
 
 
 
INTEREST INCOME (EXPENSE)
 
 
 
 
 
 
  Interest Income
 
130

 
—

 
130

  Interest Expense
 
(734
)
 
—

 
(734
)
    Total Interest Income (Expense)
 
(604
)
 
—

 
(604
)
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
95,712

 
(5,609
)
 
90,103

 
 
 
 
 
 
 
PROVISION/(BENEFIT) FOR INCOME TAXES
 
23,317

 
(2,300
)
 
21,017

 
 
 
 
 
 
 
NET INCOME
 
$
72,395

 
$
(3,309
)
 
$
69,086

 
 
 
 
 
 
 
Basic earnings per share
 
$
0.94

 
 
 
$
0.89

Basic weighted average shares outstanding
 
77,247

 
 
 
77,247

 
 
 
 
 
 
 
Diluted earnings per share
 
$
0.93

 
 
 
$
0.89

Diluted weighted average shares outstanding
 
77,546

 
 
 
77,546





JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
RECAST CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)

 
 
As reported
Three Months Ended
June 30, 2018
 
Topic 606 Adjustments
 
GAAP Recast
Three Months Ended
June 30, 2018
REVENUE
 
$
417,229

 
$
(38,973
)
 
$
378,256

 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
  Cost of Revenue
 
235,682

 
(12,076
)
 
223,606

  Research and Development
 
24,406

 
—

 
24,406

  Selling, General and Administrative
 
48,615

 
(3,320
)
 
45,295

  Gain on Disposal of a Business
 
—

 
—

 
—

    Total Expenses
 
308,703

 
(15,396
)
 
293,307

 
 
 
 
 
 
 
OPERATING INCOME
 
108,526

 
(23,577
)
 
84,949

 
 
 
 
 
 
 
INTEREST INCOME (EXPENSE)
 
 
 
 
 
 
  Interest Income
 
152

 
—

 
152

  Interest Expense
 
(747
)
 
—

 
(747
)
    Total Interest Income (Expense)
 
(595
)
 
—

 
(595
)
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
107,931

 
(23,577
)
 
84,354

 
 
 
 
 
 
 
PROVISION/(BENEFIT) FOR INCOME TAXES
 
22,651

 
(6,132
)
 
16,519

 
 
 
 
 
 
 
NET INCOME
 
$
85,280

 
$
(17,445
)
 
$
67,835

 
 
 
 
 
 
 
Basic earnings per share
 
$
1.10

 
 
 
$
0.88

Basic weighted average shares outstanding
 
77,261

 
 
 
77,261

 
 
 
 
 
 
 
Diluted earnings per share
 
$
1.10

 
 
 
$
0.87

Diluted weighted average shares outstanding
 
77,585

 
 
 
77,585






JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
RECAST CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)

 
 
As Reported
Year Ended
June 30, 2018
 
Topic 606 Adjustments
 
GAAP Recast
Year Ended
June 30, 2018
REVENUE
 
$
1,536,603

 
$
(65,806
)
 
$
1,470,797

 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
  Cost of Revenue
 
873,642

 
(20,504
)
 
853,138

  Research and Development
 
90,340

 
—

 
90,340

  Selling, General and Administrative
 
182,146

 
(10,436
)
 
171,710

  Gain on Disposal of a Business
 
(1,894
)
 
—

 
(1,894
)
    Total Expenses
 
1,144,234

 
(30,940
)
 
1,113,294

 
 
 
 
 
 
 
OPERATING INCOME
 
392,369

 
(34,866
)
 
357,503

 
 
 
 
 
 
 
INTEREST INCOME (EXPENSE)
 
 
 
 
 
 
  Interest Income
 
575

 
—

 
575

  Interest Expense
 
(1,920
)
 
—

 
(1,920
)
    Total Interest Income (Expense)
 
(1,345
)
 
—

 
(1,345
)
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
391,024

 
(34,866
)
 
356,158

 
 
 
 
 
 
 
PROVISION/(BENEFIT) FOR INCOME TAXES
 
14,364

 
(23,240
)
 
(8,876
)
 
 
 
 
 
 
 
NET INCOME
 
$
376,660

 
$
(11,626
)
 
$
365,034

 
 
 
 
 
 
 
Basic earnings per share
 
$
4.88

 
 
 
$
4.73

Basic weighted average shares outstanding
 
77,252

 
 
 
77,252

 
 
 
 
 
 
 
Diluted earnings per share
 
$
4.85

 
 
 
$
4.70

Diluted weighted average shares outstanding
 
77,585

 
 
 
77,585





JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
RECAST CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)

 
 
As reported
Year Ended
June 30, 2017
 
Topic 606 Adjustments
 
GAAP Recast
Year Ended
June 30, 2017
REVENUE
 
$
1,431,117

 
$
(42,827
)
 
$
1,388,290

 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
  Cost of Revenue
 
819,034

 
(13,179
)
 
805,855

  Research and Development
 
84,753

 
—

 
84,753

  Selling, General and Administrative
 
162,898

 
(3,663
)
 
159,235

  Gain on Disposal of a Business
 
(3,270
)
 
—

 
(3,270
)
    Total Expenses
 
1,063,415

 
(16,842
)
 
1,046,573

 
 
 
 
 
 
 
OPERATING INCOME
 
367,702

 
(25,985
)
 
341,717

 
 
 
 
 
 
 
INTEREST INCOME (EXPENSE)
 
 
 
 
 
 
  Interest Income
 
248

 
—

 
248

  Interest Expense
 
(996
)
 
—

 
(996
)
    Total Interest Income (Expense)
 
(748
)
 
—

 
(748
)
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
366,954

 
(25,985
)
 
340,969

 
 
 
 
 
 
 
PROVISION/(BENEFIT) FOR INCOME TAXES
 
121,161

 
(9,753
)
 
111,408

 
 
 
 
 
 
 
NET INCOME
 
$
245,793

 
$
(16,232
)
 
$
229,561

 
 
 
 
 
 
 
Basic earnings per share
 
$
3.16

 
 
 
$
2.95

Basic weighted average shares outstanding
 
77,856

 
 
 
77,856

 
 
 
 
 
 
 
Diluted earnings per share
 
$
3.14

 
 
 
$
2.93

Diluted weighted average shares outstanding
 
78,255

 
 
 
78,255