Jack Henry & Associates Inc. (NASDAQ:JKHY) Q3 2018 Earnings Conference Call - Final Transcript

May 02, 2018 • 08:45 am ET


Jack Henry & Associates Inc. (NASDAQ:JKHY) Q3 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and thank you for standing by. And welcome to Jack Henry & Associates' Third Quarter FY 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. Instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded.

I'll now turn the conference over to our host, Mr. Kevin Williams. You may begin.

Kevin D. Williams

Thanks, Lydia. Good morning. Thank you for joining us for the Jack & Associates' [Phonetic] third quarter fiscal 2018 earnings call. I am Kevin Williams, CFO and Treasurer, and on the call with me today is David Foss, our President and CEO.

The agenda for this morning will be opening comments by me, then I'll turn the call over to Dave to provide some of his thoughts about the state of the business and the performance for the quarter. And then, I will provide some additional thoughts and comments regarding the press release we put out yesterday after market closed. And then, we will open the line up for Q&A.

I need to remind you that remarks and responses to questions concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements or deal with expectations 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'll now turn the call over to Dave.

David B. Foss

Thank you, Kevin, and good morning, everyone. We're pleased to report another quarter with record revenue and earnings. As in the past, I'd like to begin today by thanking our associates for all the hard work that went into producing those results for our third fiscal quarter. Total revenue increased 9% for the quarter and increased 8% excluding the impact of deconversion fees from both quarters. Organic revenue growth was 7% for the quarter. We again had a very solid quarter in the core segment of our business. Revenue increased by 7% for the quarter and also increased by 7% if you exclude the impact of deconversion fees from both quarters.

Our Payments segment performed extremely well, posting a 12% increase in revenue this quarter and an 11% increase excluding the impact of deconversion fees. Of course, Ensenta is a contributor to this growth. But even if we exclude Ensenta, we saw more than a 5% increase in revenue through our traditional offerings.

We also had a very strong quarter in our complementary solutions businesses, posting an 11% increase in revenue this quarter and a 10% increase excluding the impact of deconversion fees. Our combined sales team had another nice quarter, again