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