Jack Henry & Associates - Earnings Call - Q1 2020

Transcript

Operator (participant)

Good morning, ladies and gentlemen, and welcome to the Jack Henry & Associates first quarter fiscal year 2020 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star zero on your touch-tone telephone. As a reminder, this conference call is being recorded. I will now turn the conference over to your host, Mr. Williams. Please go ahead.

Kevin Williams (CFO and Treasurer)

Thanks, Whitney. Good morning. Thank you all for joining us for the Jack Henry & Associates' first quarter fiscal year 2020 earnings call. I'm Kevin Williams, CFO and Treasurer, and on the call with me today is David Foss, our President and CEO. In just a minute, I'll turn the call over to David to provide some of his thoughts about the state of our 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, update our guidance for FY2020, and then we will open the lines up for Q&A. First, I need to remind you the 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. I'll now turn the call over to Dave.

David Foss (CEO)

Thank you, Kevin, and good morning, everyone. We're pleased to report another quarter with record revenue and earnings. As always, I'd like to begin today by thanking our associates for all the hard work that went into producing those results for our first fiscal quarter. For Q1 of fiscal 2020, total revenue increased 12% for the quarter and increased 9% on a non-GAAP basis. Deconversion fees were up about $7 million over the prior year quarter, which accounts for a portion of the significant revenue increase over last year. But even excluding deconversion fees, this was a very strong quarter. As a reminder, we generally receive deconversion fees when one of our clients, with a long-term contract in place, is acquired by another institution and buys out the remaining obligation in their agreement.

Turning to the segments, we again had an extremely solid quarter in the core segment of our business. Revenue increased by 12% for the quarter and increased by 10% on a non-GAAP basis. Our payments segment also performed very well, posting a 12% increase in revenue this quarter and a 10% increase on a non-GAAP basis. We also had a strong quarter in our complementary solutions businesses with an 11% increase in revenue this quarter and an 8% increase on a non-GAAP basis. Our sales teams, again, had a solid quarter with two of our three brands exceeding their sales quota. We booked five competitive core takeaways and five deals to move existing in-house customers to our private cloud environment. We also saw very strong bookings in our payments and complementary solution segments.

Several of our newer solutions, including our Banno Digital Suite, our new card processing solution, and Treasury Management, saw strong demand. Regarding our new Debit and Credit Processing Solution, we now have 604 customers live on the new platform. This count includes 63 customers installed as new debit clients rather than as migrations and 11 new full-service credit clients. We have approximately 370 of our debit clients yet to migrate, but we've hit a comfortable stride now, and our program continues to progress very well. As we did last year, we will suspend our migrations during the holidays because banks and credit unions don't like to implement changes to their card programs during this high-volume time of the year. We expect to start the next large waves of migrations in January and remain on track to complete the migration process during calendar 2020.

You probably noticed that we distributed a press release last week in coordination with The Clearing House, announcing our plans to bring 15 clients live with the real-time payments network in the near future. We currently have 47 clients assigned to implement Zelle and 15 clients ready to implement with The Clearing House. I'm very happy with the approach our team has taken in this regard because our PayCenter solution allows us to connect clients to the real-time payments network in groups rather than one at a time. Additionally, we provide connectivity through this single platform to multiple providers, which facilitates a more logical and efficient approach for our clients than any other processor in the market today.

Since our last earnings call, we have completed our two largest client conferences of the year: our SEC conference for our Symitar Core clients and our JAC conference for our Jack Henry Banking and ProfitStars clients. We had many prospects at each conference, and as I mentioned in the press release, our customers continue to be happy with our performance and extremely engaged with our prospective clients. Additionally, they continue to be optimistic about the coming year and their prospects for success. In addition to all the exciting developments with sales and our newer product offerings, you should also note that we've announced a few organizational changes recently. Several weeks ago, Mark Forbis, our longtime Chief Technology Officer, announced publicly that he will retire effective on November 15th.

Mark and I have been working for some time with Ted Bilke, our current Symitar President, to position Ted to move away from the day-to-day responsibilities running our credit union division and back to his technical roots in the technology area. Ted will assume the role of Chief Technology Officer upon Mark's departure. Shanon McLachlan, a well-known industry veteran and a current member of the Jack Henry leadership team, will move into the role as President of Symitar. Unrelated to the move with Mark and Ted, I announced that we're promoting Greg Adelson to become our new Chief Operating Officer. Greg and I have been working on positioning him to make this transition for many months. Greg has demonstrated outstanding leadership qualities and an ability to handle more responsibility, so he will be leading the primary operating units of our company going forward as a direct report to me.

Of course, I'm sad to see Mark leave, but if anyone has earned the right to kick back and relax a bit, it's Mark. I want to extend my heartfelt thanks to him for his years of service and congratulations to Ted, Greg, and Shanon as they move into their new roles. With that, I'll turn it over to Kevin for some detail on the numbers.

Kevin Williams (CFO and Treasurer)

Thanks, Dave. The services portion line of revenue increased 13% compared to the prior year, with licensed hardware and maintenance revenues up a little this quarter, but it was really due to some nice hardware deliveries during the quarter, which obviously has lower margins than licensed maintenance. We continue to have headwinds from decreased license and on-prem implementation revenue due to almost all of our core installs electing our private cloud model, which is actually good for us and our shareholders long-term. Our outsourcing and cloud services were up nicely again this quarter at an increase of 12% compared to last year. However, as Dave mentioned, deconversion fees were up $7 million compared to a year ago, but we still had nice overall growth considering that. The processing line of revenue, which is all transaction remittance, card, and digital, grew 9% compared to the prior year.

Total revenue up 12%, and on a non-GAAP basis, excluding deconversion fees and the impact of acquisitions, was up 9% for the quarter. Our reported consolidated operating margins were up from 26% last year to 27% this year due primarily to the increased deconversion fees. And on a non-GAAP basis, our margins were flat, with last year's first quarter just under 25%. We will continue to see some operating margin headwinds this year, coming from continued decrease in licensed revenue, as almost all of our new customers elect to go into our private cloud. And just a reminder, licensed revenue is our highest margin deliverable. Also, the additional cost of processing our debit card customers' transactions until we can get them all migrated to the new platform and eliminate a lot of the additional costs that we have in processing.

Our segment's operating margins continue to be extremely solid with small fluctuations. Our payment segment will continue to have increased margin headwinds going forward, again, as the additional cost continues to increase as we migrate our existing customers to the new payment platform. The effective tax rate for the quarter was 24.6% this year compared to 19.2% last year, which the entire difference in these two rates was related to stock-based compensation deductions that we had last year that we did not get the same impact in this year's first quarter. For cash flow included in total amortization, which was disclosed in the press release yesterday, amortization and tangibles related to acquisitions increased to $5.5 million this year to date compared to $5.1 million last year.

Depreciation was also up for the quarter, primarily due to the data center CapEx we did in Q1 last year, which is now all in production. And non-acquisition amortization was up due to more of our internally developed products and software being placed into production. Our operating cash flow was $123.1 million for the quarter, which was down compared to last year. But that's very explainable. It's all due to timing and working cap items. First, AR was up quite a bit and offset a little bit by deferred revenue, which this is caused by the shift from our in-house customers to outsourcing, so we have more monthly billings than we have historically. That's going to continue to shift. But the biggest difference here was last year we did not pay Q1 dividends in Q1. We actually paid those on October 1st.

Our accruals were about $30 million higher last year because of the accrued dividends. If you take that out, our operating cash flow would have actually been up from last year, and so would have free cash flow. By the end of next quarter, that should all balance out, and we'll be back to a nice conversion of net income to free cash flow. During the quarter, we invested $44 million back into our company through CapEx and developing products, which is down from $52.3 million a year ago, which much of that decrease is CapEx related to the data center upgrades in Q1 last year. Now we'll update guidance for FY2020. Currently, we are projecting deconversion revenue to be up slightly in FY2020, but again, those are totally unknown.

It depends on when the dates are when they actually deconvert, and we get the check, and we have no control or very little control over the timing of that. Revenue from all processing customers will continue to grow nicely. Therefore, total GAAP revenue continues to be projected to grow at around or slightly above 7% in FY2020. With projected decreased licensed revenue and additional cost headwinds from our payments platform migration, we project operating income will grow a little above 6% on a GAAP basis and around 5-5.5% on a non-GAAP basis. We will continue to experience revenue and operating income fluctuations between our fiscal quarters due to licensed implementation, payment platform migrations, and software subscription usage. Operating income and margins were the highest in Q1 due to software subscription revenue being recognized, and then will drop off for the next three quarters, very similar to FY19.

And all this is due to the new ASC 606 revenue recognition rules that were put in place last year. We anticipate GAAP operating margins for the year to be mostly in line with FY19 at approximately 22% for the year, as we feel like we can get some margin improvement to help offset the margin headwinds of the migrations. Our effective tax rate for the year will be 23%-23.5%. We project Q2 EPS to be in the $0.88-$0.92 range, and our projected full year FY2020 EPS continues to be in the range of $3.60-$3.64. Therefore, in summary, on a non-GAAP basis, revenue should grow approximately 7%. Operating income will grow in the 5%-6% range, and EPS for the year will be in the range of $3.60-$3.64, pretty much in line with consensus estimates today.

As Dave mentioned, we are still on plan to have all of our core customers that we process their debit payments on our systems to be migrated by June 2020, and all non-core customers to be moved by November 2020. There have been no changes to plans. We are on course to get that done, and therefore, there are no changes to the reduction costs or timing of cost reductions from what we provided on the last call. This concludes our opening comments, and with that, we're now ready to take questions. Whitney, will you please open the lines up for questions?

Operator (participant)

Ladies and gentlemen, if you have a question at this time, please press the star and then the number one key on your touch-tone telephone. If your question has been answered or you wish to remove yourself from the queue, press the pound key. Your first question is from Peter Heckman.

Peter Heckman (Analyst)

Hey, good morning, everyone. Thanks for taking my question. Can you talk a little bit about your implementation capacity, any change in the relative timing of the backlog of some of these new core implementations?

David Foss (CEO)

Morning, Pete. No, I wouldn't say there's any significant change. We did add a team last year, I think it was, to help customers, our core customers who were acquiring other institutions because there was a good bit of volume last year as far as our customers adding banks on the banking side, not on the credit union side, but on the banking side. So we did add a team last year. I have not added any teams this year, don't have a need for that, and we're managing the backlog well. We've been running at a pretty consistent pace as far as core conversions for quite some time on the banking side.

On the credit union side, we did recently add a team to help with in-house customers migrating to the private cloud environment, and they can also help with new core customers that are coming into the private cloud environment. So we did add a team recently on the credit union side, but we're positioned well to manage that backlog and don't see a push there right now.

Peter Heckman (Analyst)

Good. Good. Good to hear. And then as you've gotten continued success with the credit-issuing product 11 live, can you talk about your backlog there and then thoughts about, of your core customers, what percentage of those are currently in that market or would be interested in the credit-issuing product?

David Foss (CEO)

Yeah, so we don't have a huge backlog on the credit side. We've been managing that as we go here, so we have several that are in the queue, but the challenge for both new debit and credit deals is virtually any bank or credit union is in a long-term agreement today. If they're a debit, almost everybody has debit, so they have a long-term debit contract. Those that are in credit programs have some kind of a long-term credit program if they're offering those services already, so there's a timing issue there with almost every customer where you have to work it out to make sure that your deal kicks in when their existing agreement is up for renewal.

On the credit side, as we talked about on previous calls, there are a number of customers out there, however, who don't have their own credit portfolios, and so those customers, it's a matter of working with them to determine whether or not they want to get into the credit business. We saw a lot of demand a couple of three years ago. That's why we decided that's part of the reason why we decided to do this deal that we have recently rolled out. But for those customers that don't currently have a credit offering, they have to go through the process of justifying it and make sure they have the internal staff to manage the program. So we're working both sides of that coin with customers who are looking to move and those who are looking to start or bring their program in-house.

But not a current backlog concern. I would say, I don't know what percentage of our customers are active with us right now, but we have a number of deals in the sales pipeline right now for both debit and credit.

Kevin Williams (CFO and Treasurer)

And Pete, this is also kind of a slow roll because obviously our focus was to get all of our debit customers migrated over to the new platform. We wanted to make sure that plan was solid in place, so we met our obligations to our customers and to our shareholders. And then also with this credit card offering being a new offering, you kind of have to prove yourself. And now that we have 11 live, we've got referenceable customers, and it makes it a whole lot easier to sign additional customers when you have referenceable customers.

David Foss (CEO)

Just to give you a feel, so we signed 16 new debit customers just in this quarter. There is continuing to be interest and demand, and those are not migrations. Those are people who have not done debit with us in the past that signed in the quarter.

Peter Heckman (Analyst)

Nice. Okay. Thank you.

David Foss (CEO)

Thanks, Pete.

Operator (participant)

Our next question is from David Togut.

John Pancari (Analyst)

Hi. Thank you. Good morning. John on behalf of David Togut. So the first question is, in the September quarter, research and development only grew 2% year over year compared to 9% organic revenue growth, excluding contracted conversion fees. Were there any unusual factors slowing the rate of R&D growth that will persist through FY2020? For example, what was the year-over-year growth in software capitalization during the September quarter? For FY2020, what are you budgeting for R&D growth on the income statement?

Kevin Williams (CFO and Treasurer)

We're obviously, we don't disclose our budget, but our R&D is going to stay pretty much in line with total revenues as a percentage as it has in prior years. From quarter to quarter, what you're going to see is some flopping around because as we roll major projects that are in development being capitalized and we roll those projects off or into production, then our R&D expense will go up in that quarter, or it could be that a lot of these products, we actually have contractors come in to do a lot of work for us, and it could be timing of shifting between development of different products, so you really can't base R&D expense growth on a given quarter. You almost have to look at the trailing 12 months to get a real feel for it.

John Pancari (Analyst)

Got it. And the second question is, among the new contract wins for the September quarter, what were the top three drivers of new bookings growth from a product standpoint?

David Foss (CEO)

Are you talking about for core customers who signed, what drove that, or are you talking about which products

John Pancari (Analyst)

signed them? Core customers?

Or both.

David Foss (CEO)

So yeah, generally, core customer signings are, first off, they're looking for a new technology solution provider. They're probably running on an old core solution with whoever their provider is today, so they're looking for new technology. Secondly, oftentimes, they will say to us that the relationship is broken with whoever it is that they're working with currently. And so that encompasses customer service and then encompasses just the overall confidence in the direction of that organization or that product. And then thirdly, the digital strategy is becoming a big part of the conversation with almost every new core customer. And so we get a lot of great feedback from prospects about the digital strategy that Jack Henry has in place.

You've seen us do a good bit of investment in the past few years, not only in our Banno Digital Platform, but when we acquired Banno and we acquired Geezeo. Those were both acquisitions to help round out that digital strategy, that digital story. I've talked about it on several calls in the past. Jack Henry today is live with innovative technology as far as digital banking that nobody else in our space is doing, and we're getting a lot of recognition for that, and that helps win core deals because every customer, every bank and credit union out there knows that for them to be successful in the future, they have to have a really solid digital experience for their customers.

Kevin Williams (CFO and Treasurer)

Yeah.

And as Dave mentioned in his opening comments, we are a little different because we had a number of core prospects at both of our national education conferences, and we literally turn those prospects loose. They go to any track, any breakout session, they talk to any customers. And we even had a special breakout. We invited the industry consultants to come into our JAC and actually had a separate track for them, a separate four-day track to help them understand better who we are and how we approach the world. So I think all of those helped contribute to establish our culture and how we take care of our customers and that we're just a little bit different.

John Pancari (Analyst)

Thank you.

Operator (participant)

Your next question is from Karthik Mehta.

Kartik Mehta (Analyst)

Hey, good morning, Kevin and Dave. I looked at your revenue growth, and the revenue growth was excellent this quarter. And Kevin, your guidance still, you're looking for around 7% revenue growth. And Dave, I was wondering, how much of that do you think is just strength in the marketplace and bank spending versus Jack Henry taking market share?

David Foss (CEO)

That's a good question, Karthik, because I think, as you know, for Jack Henry, it's both. We are certainly taking share. We've talked about it many times in the past. On the core side, we're taking share. And when we do lose a customer to acquisition, normally it's a smaller customer. So if you compare the ones we're taking on as compared to the ones that we lose because they've been acquired, the ratio is in Jack Henry's favor significantly. So not only are we taking share, but there is this continued focus on spending in our space, a lot of it around digital, which I just emphasized, a lot of it around people kind of repositioning their payments infrastructure to make sure that they can facilitate the needs of their customers going forward. And then just looking for solutions that help them with efficiency.

So mobile-first and efficiency are big topics for our customers. So it really is a combination of the two. The easy answer for me would be to say 50/50. Half of it is us taking share. Half of it is the fact that there's so much continued good news in the market. But I would say it's more heavily weighted toward us taking share because when we win a core customer, they tend to surround that with a lot of other Jack Henry products. And as I mentioned earlier, when we are taking share, we tend to take larger customers than those that are being acquired out from under us.

Kevin Williams (CFO and Treasurer)

But I will also add, Karthik, I mean, with us being at 85% or 86% recurring revenue, I mean, it's not like we're going out and just adding on a whole brand new bunch of customers because we have to add the same number of customers this quarter that we did a year ago just to maintain growth. So the growth is really all the cross-sell of all the products that we've rolled out. As Dave mentioned, the 60-plus new debit card customers that are on the system, the 11 new credit cards, that's all new revenue growth.

All the Banno platform customers that we're selling, the Treasury Management customers, I mean, there's just an enormous amount of cross-sell, which now we're starting to reap the rewards of the fruits of our labor of the CapEx software that we've been doing for the last four or five years as these new products are really starting to get traction. I think that's what you're going to see continue to help drive revenue growth as we layer that revenue on top.

Kartik Mehta (Analyst)

And then, Kevin, just as an add-on to that, if you look at, I know you said a long time ago you have a backlog number, and that became a little bit more difficult. But kind of as you look at your backlog or implementation schedules, what kind of revenue visibility do you have? I realize 85% recurring, but you still have that other 15% to kind of add. So I'm just wondering how far you're seeing visibility for your revenue.

Kevin Williams (CFO and Treasurer)

So, Karthik, I mean, we've got install backlog on the vast majority of our products. And most of those go almost 12 months out or longer. So going into a given quarter, we're 98% visible on what that quarter is going to be for revenue. I mean, obviously, you can have some fluctuations. You can have transaction changes within the debit cards or different things. Or you could actually have a customer delay a delivery, which under the new revenue recognition rules, if that happens or to delay a final conversion, then that could push all the software recognition and implementation revenues out into the next quarter. So you're going to still have a little lumpiness there. But we have 98-plus% going into any given quarter. And it's not far from that going into a given year anymore, Karthik.

I mean, because with all the backlog that we have and, again, 85% recurring revenue, we've got a lot of visibility. It's a whole lot easier to forecast and give guidance than it was 10 years ago. I can assure you that.

Kartik Mehta (Analyst)

Well, thank you, guys. I really appreciate it.

David Foss (CEO)

Sure.

Operator (participant)

Your next question is from John Davis.

John Kimbrough Davis (Analyst)

Hey, good morning, guys. Kevin, just wanted to dig in a little bit on the EPS guide. I guess I was a little bit surprised not to see you flow through at least the upside from deconversion fees into the full-year guide. Is that just conservatism given it's the first quarter of the year, or are there any kind of offsets that we're not thinking about? And then also just how should we think about the cadence of revenue growth? Obviously, really strong in the first quarter, similar to last year. Should we see a similar cadence in revenue growth as we did last year that kind of decelerate throughout the year?

Kevin Williams (CFO and Treasurer)

Yeah. I mean, it's going to decelerate a little bit through the year because of all the software subscriptions and everything we take in the first quarter. But the other thing, John, is there was actually some of that deconversion revenue that got pulled in from Q2 that we thought was going to happen in Q2. It actually happened in Q1. So we think so I'm not sure exactly where deconversion fees are going to fall out for the next quarter or the year, to be quite honest. So is there a little conservatism built into that guidance? Absolutely. I mean, I've been doing this a long time, but I'd much rather underpromise and overdeliver than the other way around.

John Pancari (Analyst)

No, that makes sense. And then, Dave, just obviously, the accounting changes we've now lapped. So the 11% core growth, ex-deconversion Fees, I think, was probably better than most people expected, if not everyone. Maybe just talk about what's driving that. Obviously, talk a little bit about the market share gains. Is that the result of kind of the last year plus of record new wins? And we're finally starting to see that hit the revenue and just trying to understand why that would, outside of subscription, start decelerating throughout the rest of the year for the core business specifically.

David Foss (CEO)

No, you've nailed it right there. That's exactly it. So we've talked about it before on the call. When we sign a customer, it's generally nine to 12 months before you start to see that revenue coming in on the core side because there's a lot of work that goes into preparing for that conversion. And once you lay that customer in, again, almost every customer we sign these days is signed as a private cloud-hosted customer. So once you start to layer that revenue in, then it starts to continue to be additive to the numbers you've seen in the past. And so for this quarter, this is a quarter that reflects not only the bank customers that we've added in from last year, but now credit union customers that are being added in more on the private cloud side than in-house.

Whereas in the past, we would sign them usually as an in-house customer. You'd see the revenue pop more quickly because we were selling a license fee rather than the hosting model. But now most of the credit unions we sign are also on the hosted model. So once you get them layered in, that revenue just starts to build. And you're really seeing that result now in this quarter, strong.

Kevin Williams (CFO and Treasurer)

And John, let me just, I mean, and I know you're familiar with it, the revenue build slide that I got in my investor presentation I put together a few years ago, that slide has not changed. And so if you think about it, our outsourcing of cloud, just like that slide shows, is about 25 or 26% of our revenue. It is continuously growing at a roughly 12% rate.

That's what it's done on average for the last three or four years. I don't see that changing. You've got our payments business, which is basically 35% of our revenue that's growing. It's 7 or 8% this year. I think that could accelerate. So you've got 60% of your business, which is all very nice margin business that's growing basically double digits. So you cross-sell some additional products and add on some additional products. It's pretty easy to get to that 7-8% growth that we've been guided to.

John Pancari (Analyst)

Okay. And then last one for me. Dave, maybe just talk a little bit about the macro backdrop, both from a bank tech spending, any impact or changing behavior from now that we've kind of had a few months and I think lower rates have kind of set into people's mindsets. Have you seen any impact there? And then also any noticeable change, competitive landscape, good or bad. I would assume it's probably potentially a positive from the recent kind of big deals now that those are closed and some of your peers are in integration mode with these bigger deals.

David Foss (CEO)

Sure. So first off, for the first part of your question, and I mentioned it briefly in my opening comments, one of the good bellwethers for us is every year in the fall when we host our Symitar client conference and our JAC conference, which is banks and credit unions. At both conferences, I host a CEO breakout. So only CEOs and presidents are invited to a two-day session where we kind of talk about what's going on in the industry. And we get a good opportunity one-on-one to get feedback from them regarding what they're seeing and how they're feeling and so on. And it was very uplifting coming out of both of those conferences how there's no hand-wringing, there's no major concerns that the banking industry is in trouble or anything like that, or a recession is on the horizon. In fact, it was the opposite.

A lot of interest in new technology solutions, what can we do to either improve the end customer experience or introduce efficiency into the bank or credit union? So I don't see any slowdown as far as interest in technology, Jack Henry technology solutions, or the willingness to spend for those things that can help the institution. So nothing changing there, still very solid. As far as the competitive environment, you're right, major acquisitions have been happening in our space. Nothing significant changing as far as the competitive environment for us on a day-to-day basis. In fact, several of you have speculated on this call in the past about will this create opportunities for Jack Henry in the long term. I'm still not ready to say that, but it's feeling that way.

There are a number of customers out there, prospects who were at our client conferences this fall that we mentioned earlier, who were expressing that they're interested in Jack Henry because they can see that we're very focused on them as banks and credit unions providing outstanding technology solutions to banks and credit unions and ensuring that their underlying core infrastructure is solid and best of breed, so as far as the competitive environment, no negatives for us so far, but it's early days since these major acquisitions, and we'll continue to keep an eye on it.

John Kimbrough Davis (Analyst)

Okay. Thanks, guys.

Operator (participant)

Again, to ask a question, press star one on your telephone keypad. At this time, there are no further questions.

David Foss (CEO)

Thanks, Whitney. We are pleased with the results from our ongoing operations and efforts of all of our associates to take care of our customers. Our executive managers and all of our associates continue to focus on what is best for our customers and shareholders. With that, I want to thank you again for joining us today, and Whitney, would you please now provide the replay number for the call?

Operator (participant)

Thank you for participating in today's Jack Henry & Associates conference call.