May 02, 2018 • 08:45 am ET



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Good day, ladies and gentlemen, and welcome to the Jack Henry & Associates Third Quarter FY 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we conduct the question-and-answer session and instructions will follow at that time. (Operator instructions) As a reminder, this call will be recorded.

I would like to introduce your host for today's conference, Kevin Williams, Chief Financial Officer. Sir, you may begin.

Kevin D. Williams

Thanks, Justin. Good morning. Thank you all for joining us today for the Jack Henry & Associates third quarter fiscal 2019 earnings call. I'm Kevin Williams, CFO and treasurer, and on the call with me today is Dave Foss, our president and CEO.

The agenda for this morning will be my opening comments from me then I will turn the call over to Dave to provide some of his thoughts about the state of our business and performance for the quarter, and then I will get back on and provide some additional thoughts and comments regarding the press release we put out yesterday after market close, and then provide some guidance and then open the lines for Q&A.

I need to remind you that remarks or responses to questions concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements or deal with expectation about the future. Like any statement about the future these are subject to a number of factors which could cause actual results or events to differ materially from those which we anticipate due to a number of risks and uncertainties, and the company undertakes no obligation to update or revise these statements. For a summary of these risk factors and additional information, please refer to yesterday's press release and the sections in our 10-K entitled risk factors and forward-looking statements.

With that, I will now turn the call over to Dave.

David B. Foss

Thank you, Kevin. Good morning, everyone. We are pleased to report another strong quarter of revenue and operating income growth. As always I would like to begin today by thanking our associates for all the hard work that went into producing those results for our third fiscal quarter.

On our last quarterly call we highlighted the fact that we expect the deconversion revenue to be down significantly, in the third fiscal quarter, and that expectation was realized. As we have discussed previously, in many respects this is a good problem to have because, although we experienced a short-term revenue impact, it indicates that far fewer customers are deconverting and their long-term revenue contribution stays in place. As you now know, deconversion revenue is largely outside our control, and very difficult to forecast but we'll continue to do our best to set proper expectation on this topic when we expect the revenue variances to be significant.

For the third quarter, total revenue increased 2% for the quarter, and increased 5% excluding the impact of deconversion fees from both quarters. Year-to-date revenue is up 6% and is up 8% year-to-date if you exclude the impact