Hurricane Sandy Flooding Hits Jack Henry Bottom Line
Hurricane Sandy’s flooding at a Lyndhurst, N.J., item processing center prevented Jack Henry & Associates from having a record quarter in terms of operating income, the technology provider to banks and credit unions said this week.
The Monett, Mo.-based company said the late October storm caused $13.7 million in expenses at the New Jersey site. That boosted its operating expenses by 19% to $111.2 million for the first six months of its 2013 fiscal year compared to the $93.3 million of the year-ago period, the company said.
"We continue to have a very good fiscal 2013 with both the quarter and first six months providing record revenue and gross profit compared to any respective periods in our history. We also would have had record operating income for the quarter if not for the expenses related to Lyndhurst,” said company President Tony Wormington.
“Support and services revenue was once again the primary driver of our total revenue growth with 11% growth within that revenue line for the quarter compared to last year. We continue to see strong growth in every component within this line with the primary driver again being our electronic payments,” Wormington said.
Operating income decreased 2% to $59.4 million, or 21% of second quarter revenue, compared to $60.8 million, or 24% of revenue in the second quarter of fiscal 2012, the company said.
Operating income increased 7% to $126.9 million for the first six months of fiscal 2013 compared to $118.6 million for the same period a year ago.
Jack Henry & Associates said it now serves more than 11,900 customers through its Jack Henry Banking, Symitar and ProfitStars brands.