Revenue Analysis
Total and Operating Revenue: JKHY’s total revenue shows a positive trend from 2023-03-31 to 2023-12-31. The figures increased from $508,552,000 in March 2023 to $545,701,000 by December 2023. Operating Revenue mirrored Total Revenue, maintaining consistency across all quarters.
Gross Profit Margins: Gross profit has similarly increased, starting at $201,207,000 in the first quarter and rising to $224,722,000 by the end of December. This growth highlights effective revenue management and potentially increased market demand.
Cost Management
Cost of Revenue: The cost of revenue slightly decreased from $307,345,000 in March 2023 to $320,979,000 in December 2023. This aligns with the increase in revenue, implicating scale benefits.
Operating Expense: Operating Expense has escalated from $92,817,000 in March 2023 to $105,755,000 by December, indicating higher operational activity or investment in operations.
Total Expenses: Total expenses showed a rising trend from $400,162,000 in March to $426,734,000 by December 2023, paralleling revenue growth, and supporting the increased operational activities observed.
Profitability Analysis
EBITDA: EBITDA observed a slight decrease from $177,751,000 in the third quarter to $173,984,000 by the end of the year 2023, despite an overall yearly increase.
Operating Income: Operating income moved upwards from $108,390,000 in March to $118,967,000 in December, reflecting improvements in operational efficiency and possibly cost management.
Pretax Income: Pretax income grew from $106,115,000 in March to $120,223,000 by the end of December, indicating greater profitability before tax considerations.
Net Income: Net Income has been increasing, concluding at $91,965,000 in December 2023 up from $81,549,000 in March of the same year, showing substantial return on investments and operations.
Cash Flow Indicators
Reconciled Depreciation: This cost increased from $48,637,000 in March to $49,896,000 by December, which suggests ongoing investment in assets or potentially higher asset turnover.
Interest Expense: Consistent growth in interest expenses from $4,666,000 in March to $3,865,000 in December could be indicative of higher debt levels or refinancing older debts at higher rates.
Taxation
Tax Rate For Calcs: The tax rate observed minor fluctuations moving from 23.2% in March to 23.5% in December. Such variations affect net income after taxes.
Tax Provision: Tax provision mirrored these changes, escalating from $24,566,000 in March to $28,258,000 in December, consistent with the improvements in pre-tax income.
Tax Effect of Unusual Items: There has been no recorded impact from unusual items, which simplifies taxation analysis.
Shareholder Metrics
Diluted and Basic EPS: Earnings Per Share (EPS) observed improvements with Diluted EPS increasing from 1.12 in March to 1.26 in December and Basic EPS from 1.12 to 1.26 in the same period.
Average Shares: There has been a stable share count, mildly increasing which shows stability in share management.
Net Income Available to Common Stockholders: This value continues to increase, aligning with net income trends and demonstrating shareholder value enhancement.
Conclusion
JKHY’s financial performance over the past fiscal year has shown robust growth in revenues and profitability metrics. Effective cost management and operational efficiencies have been key drivers. The increases in total expenses and interest expenses warrant monitoring to manage debt levels and operational costs effectively. Growth in revenues and net income suggests positive prospects for the future. Considering the stable and growing EPS and net income available to common shareholders, JKHY appears to be strategically positioned for sustained growth.