<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 11, 2000
JACK HENRY & ASSOCIATES, INC.
----------------------------------------------------------
(Exact name of Registrant as specified in its Charter)
Delaware 0-14112 43-1128385
------------------------ ----------------------- ------------------------
(State or Other (Commission File Number) (IRS Employer
Jurisdiction Identification No.)
of Incorporation)
663 Highway 60, P.O. Box 807, Monett, MO 65708
--------------------------------------------------
(Address of principal executive offices)(zip code)
Registrant's telephone number, including area code: (417) 235-6652
<PAGE> 2
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Item 7 of the Company's Current Report on Form 8-K dated June 7, 2000, is hereby
amended as set forth below. The exhibits referenced therein are not amended
hereby.
As previously reported on a Current Report on Form 8-K dated June 7, 2000, the
Company acquired 100% of the outstanding common stock of Symitar in exchange
for $44,000,000. As a result of the transaction, Symitar became a wholly owned
subsidiary of the Company.
(a) Audited financial statements of business acquired
Independent Auditors' Report
Balance Sheet as of December 31, 1999
Statement of Income for the year ended December 31, 1999
Statement of Stockholders' Equity for the year ended December 31, 1999
Statement of Cash Flows for the year ended December 31, 1999
Notes to Financial Statements
(b) Pro Forma Unaudited Financial Information
Combined Statement of Income, Year Ended June 30, 1999
Combined Statement of Income, Nine Months Ended March 31, 2000
(c) Exhibits
Independent Auditors' Consent
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: August 11, 2000 JACK HENRY & ASSOCIATES, INC.
(Registrant)
By: /s/ Terry W. Thompson
-----------------------
Terry W. Thompson
Chief Financial Officer
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of
Symitar Systems, Inc.:
We have audited the accompanying balance sheet of Symitar Systems, Inc.
(the "Company") as of December 31, 1999 and the related statements of income,
stockholders' equity, and cash flows for the year then ended. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 1999 and the
results of its operations and its cash flows for the year then ended in
conformity with accounting principles generally accepted in the United States of
America.
/S/ DELOITTE & TOUCHE LLP
San Diego, California
March 15, 2000
<PAGE> 5
SYMITAR SYSTEMS, INC.
BALANCE SHEET
<TABLE>
<CAPTION>
DECEMBER 31, 1999
-----------------
<S> <C>
ASSETS
Current Assets:
Cash and cash equivalents................................. $5,026,927
Accounts receivable....................................... 2,417,906
Inventories............................................... 346,425
Prepaid expenses.......................................... 139,777
----------
Total current assets................................... 7,931,035
Property -- net............................................. 1,460,215
Other assets................................................ 74,189
----------
Total assets................................................ $9,465,439
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable.......................................... $ 248,100
Accrued and other liabilities............................. 1,167,279
Deferred revenue.......................................... 4,407,765
----------
Total current liabilities.............................. 5,823,144
----------
Commitments (See Note 3 and 4)
Stockholders' Equity:
Common stock, no par, 10,000 shares authorized, 900 shares
issued and outstanding................................. 30,000
Retained earnings......................................... 3,612,295
----------
Total stockholders' equity............................. 3,642,295
----------
Total....................................................... $9,465,439
==========
</TABLE>
See Notes to Financial Statements.
<PAGE> 6
SYMITAR SYSTEMS, INC.
STATEMENT OF INCOME
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, 1999
-----------------
<S> <C>
Revenues:
Software and installations............................ $15,660,963
Hardware.............................................. 9,262,607
Maintenance and support............................... 7,881,235
-----------
Total revenues..................................... 32,804,805
-----------
Cost of Revenues:
Cost of hardware...................................... 6,116,108
Cost of services...................................... 8,387,360
-----------
Total cost of revenues............................. 14,503,468
-----------
Gross Profit............................................ 18,301,337
-----------
Operating Expenses:
Salaries and benefits................................. 9,467,877
General and administrative............................ 2,573,054
Marketing and travel.................................. 758,941
Depreciation and amortization......................... 479,163
-----------
Total operating expenses........................... 13,279,035
-----------
Income from operations.................................. 5,022,302
-----------
Other Income (Expense):
Interest income....................................... 322,985
Loss on disposal of assets............................ (170)
-----------
Total other income -- net.......................... 322,815
-----------
Income before income taxes.............................. 5,345,117
Provision for income taxes.............................. 82,826
-----------
Net income.............................................. $ 5,262,291
===========
</TABLE>
See Notes to Financial Statements.
<PAGE> 7
SYMITAR SYSTEMS, INC.
STATEMENT OF STOCKHOLDERS' EQUITY
YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK
----------------- RETAINED
SHARES AMOUNT EARNINGS TOTAL
------ ------- ----------- -----------
<S> <C> <C> <C> <C>
BALANCE, JANUARY 1, 1998..................... 900 $30,000 $ 4,621,756 $ 4,651,756
Distributions to stockholders.............. (6,271,752) (6,271,752)
Net income................................. 5,262,291 5,262,291
--- ------- ----------- -----------
BALANCE, DECEMBER 31, 1999................... 900 $30,000 $ 3,612,295 $ 3,642,295
=== ======= =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE> 8
SYMITAR SYSTEMS, INC.
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
1999
------------
<S> <C>
Operating Activities:
Net income.................................................. $ 5,262,291
Adjustments to Reconcile Net Income to Net Cash from
Operating Activities:
Depreciation and amortization............................. 479,163
Loss on disposal of assets................................ 170
Changes in Assets and Liabilities:
Accounts receivable.................................... 1,277,639
Inventories............................................ 381,555
Prepaid expenses....................................... 28,674
Other assets........................................... (7,984)
Accounts payable....................................... (975,494)
Accrued and other liabilities.......................... 75,995
Deferred revenue....................................... (4,163,407)
-----------
Net cash from operating activities................... 2,358,602
-----------
Investing activities -- Acquisition of property............. (344,640)
-----------
Financing activities -- Distribution to stockholders........ (6,271,752)
-----------
Net increase (decrease) in cash and cash equivalents........ (4,257,790)
Cash and cash equivalents at beginning of period.......... 9,284,717
-----------
Cash and cash equivalents at end of period.................. $ 5,026,927
===========
Supplemental Disclosure of Cash Flow Information
Income taxes paid......................................... $ 125,617
===========
</TABLE>
See Notes to Financial Statements.
<PAGE> 9
SYMITAR SYSTEMS, INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS -- Symitar Systems, Inc. (the "Company") is a
California corporation engaged in the design and development of data processing
software systems primarily for the credit union industry, which it sells
together with related hardware, program maintenance and software developed by
third parties. The Company's customers are primarily located throughout the
United States.
ACCOUNTING ESTIMATES -- The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results may differ
from those estimates.
REVENUE AND COST RECOGNITION -- Revenue is recognized under the provisions
of Statement of Position ("SOP") 97-2, "Software Revenue Recognition". Revenues
include sales of hardware, third-party software, proprietary software,
conversion services and software maintenance. Revenues and costs from hardware
and third-party software sales are recognized upon shipment. Revenues and costs
from sales of proprietary software and conversion services are recognized over
the period of conversion. Revenues and costs from software maintenance are
recognized ratably over the maintenance period.
CASH EQUIVALENTS -- Cash equivalents consist of investment instruments
purchased with an original maturity of three months or less.
ACCOUNTS RECEIVABLE -- Based upon past experience, management anticipates
that all receivables are collectible, therefore no allowance for doubtful
accounts has been established.
INVENTORIES -- Inventories consist of various types of hardware and
third-party software and are stated at the lower of cost or market. Cost is
generally determined on the first-in, first-out method.
PROPERTY -- Property is stated at cost. Depreciation on computer equipment,
furniture and software is provided using the straight-line method over the
estimated useful lives of the assets (generally three to ten years). Leasehold
improvements are amortized, using the straight-line method, over the shorter of
the life of the improvement or the remaining lease term.
DEFERRED REVENUE -- Deferred revenue represents amounts billed to customers
in advance of revenue earned.
INCOME TAXES -- The Company has elected to be taxed as a Subchapter S
corporation for federal and state purposes. Under this election, the Company is
not liable for federal taxes on income and is liable for only 1.5% of state
taxable income. Accordingly, the earnings of the Company are reported on the
stockholders' federal and state income tax returns.
CONCENTRATION OF CREDIT RISK -- The Company invests its excess cash in
money market accounts. At December 31, 1999 the Company had deposits in excess
of federally insured limits of approximately $4,526,627.
The Company sells its products to credit unions throughout the United
States and generally does not require collateral. Adequate reserves (which are
insignificant at December 31, 1999) are maintained for potential credit losses.
<PAGE> 10
SYMITAR SYSTEMS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
2. BALANCE SHEET DETAILS AT DECEMBER 31, 1999
<TABLE>
<S> <C>
Property -- At Cost:
Computer equipment.......................................... $ 1,723,304
Furniture................................................... 999,079
Leasehold improvements...................................... 316,440
Software.................................................... 341,201
-----------
3,380,024
Less accumulated depreciation and amortization.............. (1,919,809)
-----------
Total....................................................... $ 1,460,215
===========
</TABLE>
3. COMMITMENTS
EMPLOYEE BENEFIT PLAN -- The Company has an employee profit sharing plan
with a 401(k) deferred compensation provision. The plan covers employees over 21
years old who have completed one year of service. The Company's contributions
are based upon the employees' compensation and voluntary employee deferrals.
Expense related to the plan was $983,253 for the year ended December 31, 1999.
OPERATING LEASE -- The Company leases office space under an operating lease
that expires in August 2004. The Company has an option to renew the lease for an
additional five years. Rent expense for the years ended December 31, 1999 was
$933,314. Payments under the lease are personally guaranteed by the Company's
stockholders. Future annual minimum lease payments are as follows:
<TABLE>
<S> <C>
2000........................................................ $ 745,643
2001........................................................ 799,033
2002........................................................ 874,119
2003........................................................ 948,336
2004........................................................ 572,486
----------
Total....................................................... $3,939,617
==========
</TABLE>
4. SUBSEQUENT EVENTS
DIVIDEND -- The Board of Directors approved the distribution of $900,000 in
dividends to stockholders of record as of January 14, 2000.
SALE OF THE COMPANY (UNAUDITED) -- On June 7, 2000, the stockholders of the
Company consummated the sale of the Company to Jack Henry & Associates, Inc. for
$44,000,000 in cash.
DIVIDENDS -- The Board of Directors approved distributions of $1,500,000
and $1,212,294 to stockholders of record as of April 14, 2000 and April 28,
2000, respectively.
<PAGE> 11
(b) Pro Forma Unaudited Financial Information
JACK HENRY & ASSOCIATES, INC.
SYMITAR SYSTEMS, INC.
PROFORMA COMBINED STATEMENT OF INCOME
FOR THE YEAR ENDED JUNE 30, 1999
(Unaudited)
(in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
PROFORMA
JKHY SYMITAR ADJUSTMENTS COMBINED
---------- --------- ----------- --------
<S> <C> <C> <C> <C>
Revenues:
Software licensing &
installation...................... $ 47,181 $15,294 $ 62,475
Maintenance/support & service....... 71,278 6,104 77,382
Hardware sales ..................... 75,068 19,593 94,661
-------- ------- ------- --------
Total revenues.................... 193,527 40,991 234,518
Cost of sales:
Cost of hardware.................... 54,661 12,935 67,596
Cost of services.................... 52,582 14,032 2,271 68,885
-------- ------- ------- --------
Total cost of sales............... $107,243 $26,967 $136,481
-------- ------- ------- --------
Gross profit.......................... $ 86,284 $14,024 $ 98,037
Operating Expenses:
Selling & marketing................. 14,030 2,152 16,182
Research & development.............. 5,183 788 5,971
General & administrative............ 17,347 644 17,991
-------- ------- ------- --------
Total Operating Expenses.......... $ 36,560 $ 3,584 $ 40,144
-------- ------- ------- --------
Operating income from continuing
operations........................ $ 49,724 $10,440 $ 57,893
Other Income (Expense):
Interest income .................... 1,619 324 1,943
Interest expense.................... (93) (3,357) (3,450)
Other, net.......................... 363 (9) 354
-------- ------- ------- --------
Total other income (expense)...... $ 1,889 $ 315 $ (1,153)
Income from continuing operations
before income taxes .............. $ 51,613 $10,755 $ 56,740
Provision for income taxes............ 18,887 128 1,718 20,733
-------- ------- ------- --------
Income from continuing
operations........................ $ 32,726 $10,627 $ 36,007
Net loss from discontinued
operations........................ (758) (758)
-------- ------- ------- --------
Net income............................ $ 31,968 $10,627 $ 35,249
======== ======= ======= ========
Diluted earnings per share from
continuing operations:
Income from continuing operations..... $ 0.77 $ 0.84
Loss from discontinued
operations.......................... $ (0.02) $ (0.02)
-------- --------
Net income per share.................. $ 0.75 $ 0.83
======== ========
Diluted weighted average shares
outstanding......................... 42,641 42,641
======== ========
Basic earnings per share:
Income from continuing operations..... $ 0.81 $ 0.89
Loss from discontinued
operations.......................... $ (0.02) $ (0.02)
-------- --------
Net income per share.................. $ 0.79 $ 0.87
======== ========
Basic weighted average shares
outstanding......................... 40,337 40,337
======== ========
</TABLE>
<PAGE> 12
JACK HENRY & ASSOCIATES, INC.
SYMITAR SYSTEMS, INC.
PROFORMA COMBINED STATEMENT OF INCOME
NINE MONTHS ENDED MARCH 31, 2000
(Unaudited)
(In Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
PROFORMA
JKHY SYMITAR ADJUSTMENTS COMBINED
---------- ------- ----------- ---------
<S> <C> <C> <C> <C>
Revenues:
Software licensing &
installation...................... $ 35,888 $ 6,734 $ 42,622
Maintenance/support & service....... 69,812 5,766 75,578
Hardware sales ..................... 50,231 6,969 57,200
-------- ------- ------- --------
Total revenues.................... 155,931 19,469 175,400
Cost of sales:
Cost of hardware.................... 35,920 4,043 39,963
Cost of services.................... 54,865 9,924 1,703 66,492
-------- ------- ------- --------
Total cost of sales............... $ 90,785 $13,967 $106,455
-------- ------- ------- --------
Gross profit.......................... $ 65,146 $ 5,502 $ 68,945
39%
Operating Expenses:
Selling & marketing................. 12,514 1,587 14,101
Research & development.............. 5,780 782 6,562
General & administrative............ 13,692 510 - 14,202
-------- ------- ------- --------
Total Operating Expenses.......... $ 31,986 $ 2,879 $ 34,865
-------- ------- ------- --------
Operating income from continuing
operations......................... $ 33,160 $ 2,623 $ 34,080
Other Income (Expense):
Interest income..................... 738 284 1,022
Interest expense.................... (1,143) -- (2,518) (3,661)
Other, net.......................... 1,629 (1) 1,628
-------- ------- ------- --------
Total other income (expense)...... $ 1,224 $ 283 $ (1,011)
Income from continuing operations
before income taxes ............... $ 34,384 $ 2,906 $ 33,069
Provision for income taxes............ 11,468 22 (495) 10,995
-------- ------- ------- --------
Income from continuing
operations......................... $ 22,916 $ 2,884 $ 22,075
Net loss from discontinued
operations......................... (332) (332)
-------- ------- ------- --------
Net income............................ $ 22,584 $ 2,884 $ 21,743
======== ======= ======= ========
Diluted earnings per share from
continuing operations:
Income from continuing operations..... $ 0.54 $ 0.52
Loss from discontinued
operations......................... $ (0.01) $ (0.01)
-------- --------
Net income per share.................. $ 0.53 $ 0.51
======== ========
Diluted weighted average shares
outstanding......................... 42,343 42,343
======== ========
Basic earnings per share:
Income from continuing operations..... $ 0.56 $ 0.54
Loss from discontinued
operations.......................... $ (0.01) $ (0.01)
-------- --------
Net income per share.................. $ 0.55 $ 0.53
======== ========
Basic weighted average shares
outstanding......................... 40,771 40,771
======== ========
</TABLE>
<PAGE> 13
JACK HENRY & ASSOCIATES, INC.
SYMITAR SYSTEMS, INC.
NOTES TO UNAUDITED PROFORMA FINANCIAL STATEMENTS
DESCRIPTION OF THE COMPANY
Jack Henry & Associates, Inc. ("JKHY") is a computer software company which has
developed several banking software systems. The Company's revenues are
predominantly earned by marketing those systems to financial institutions
nationwide along with the computer (hardware) and by providing the conversion
and software customization services necessary for a financial institution to
install JKHY software systems. JKHY also provides continuing support and
maintenance services to customers using the system. JKHY also processes ATM
transactions for financial institutions in the United States.
Symitar Systems, Inc. ("Symitar") is a California corporation engaged in the
design and development of data processing software systems primarily for the
credit union industry, which it sells together with related hardware, program
maintenance and software developed by third parties. Symitar's customers are
primarily located throughout the United States.
OTHER SIGNIFICANT ACCOUNTING POLICIES
The Accounting policies followed by JKHY are set forth in Note 1 to the
Company's consolidated financial statements included in its Annual Report on
Form 10-K for the fiscal year ended June 30, 1999.
The accounting policies followed by Symitar are set forth in the audited
financial statements as part of this Form 8-K filing, under Item 7, part (a).
PROFORMA ADJUSTMENTS
The Unaudited Pro Forma Combined Statements of Income combine JKHY consolidated
historical results of operations for the year ended June 30, 1999 and the nine
months ended March 31, 2000 with Symitar's historical results for the same
periods. Adjustments include amortization expense for the acquired goodwill of
Symitar and the interest expense has been adjusted to reflect the debt incurred
at the interest rate of 7.63% (the current interest rate), as if the acquisition
had occurred as of the beginning of the earliest period reported. Income taxes
have been adjusted to reflect the effective tax rate as if the acquisition had
occurred as of the beginning of the earliest period reported.
<PAGE> 14
(c) EXHIBIT
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statements No.
33-65231, 33-65251, 33-69299 and 33-16989 of Jack Henry & Associates, Inc.,
on Form S-8, of our report dated March 15, 2000, related to the financial
statements of Symitar Systems, Inc. for the year ended December 31, 1999,
appearing in the Current Report on Form 8K/A of Jack Henry & Associates,
Inc., dated August 11, 2000.
/s/ Deloitte & Touche LLP
San Diego, California
August 11, 2000
