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JACK HENRY & ASSOCIATES PRESENTED MARCH 10, 2011 Cece Li| Jack Hainline | Shoaib JACK HENRY & ASSOCIATES PRESENTED MARCH 10, 2011 Cece Li| Jack Hainline | Shoaib Haroon | Alex Stepien INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

EXECUTIVE SUMMARY Company Overview Recent Financial Results & Company Background Sources of Revenue & EXECUTIVE SUMMARY Company Overview Recent Financial Results & Company Background Sources of Revenue & Industry Outlook Porter’s Five Forces & SWOT Analysis Competitor Overview & Multiple Valuation Discounted Cash Flow Valuation Final Recommendation 2 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

RCMP POSITION SUMMARY 12/10/1999: Purchased 200 shares at $36 per share 3/2/2000: 2: 1 RCMP POSITION SUMMARY 12/10/1999: Purchased 200 shares at $36 per share 3/2/2000: 2: 1 split which took the holding to 400 shares at $18 per share 3/4/2001: 2: 1 split which took the holding to 800 shares at $9 per share 1/15/2007: Sold 400 shares at $22. 53 for a realized gain of $5, 412 3/9/2011: Hold 400 shares at $32. 31 Current share price = $32. 31 Current holding value = $12, 924 Constitutes 11% of invested holdings Unrealized gain: $9, 324 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

HISTORICAL DIVIDEND Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 HISTORICAL DIVIDEND Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total 4 Dividend 0. 12 0. 14 0. 16 0. 18 0. 22 0. 26 0. 34 0. 38 0. 42 Growth Rate 20. 00% 16. 67% 0. 00% 14. 29% 12. 50% 22. 22% 18. 18% 15. 38% 13. 33% 11. 76% 10. 53% Our Position 17. 5 42 56 56 64 72 88 104 120 136 152 42 949. 5 INTRODUCTION |BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

RCMP POSITION SUMMARY Purchase Price Current Holding Value % of the Total Portfolio Unrealized RCMP POSITION SUMMARY Purchase Price Current Holding Value % of the Total Portfolio Unrealized Gain from Price Change Realized Gain from Dividend Total Gain 9 32. 31 12, 924 11% 9, 324 950 10, 274 http: //finance. yahoo. com/q/hp? s=JKHY&a=02&b=26&c=1990&d=02&e=10&f=2011&g=v 5 INTRODUCTION |BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

STOCK OVERVIEW JKHY Industry Sector Market Cap 2. 78 B 696. 1 B 38335. STOCK OVERVIEW JKHY Industry Sector Market Cap 2. 78 B 696. 1 B 38335. 4 B P/E (TTM) 21. 4 38. 55 22. 09 EPS 1. 51 EPS 5 Yr Growth 11. 20% 25. 06% 20. 44% 9. 86% Beta 0. 73 1. 21 1. 19 1. 00 Dividend Yield 1. 30% 1. 14% 1. 65% 2. 26% 19. 68 Source: onesource. com 6 S&P 500 INTRODUCTION |BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

COMPANY OVERVIEW Founded and headquartered in Monett, Missouri in 1976 by Jerry Hall and COMPANY OVERVIEW Founded and headquartered in Monett, Missouri in 1976 by Jerry Hall and Jack Henry Initial public offering on October 29, 1985 Jack Henry provides integrated computer systems and services for in-house and outsourced data processing The Company provides these technology driven products to commercial banks, credit unions and other financial institutions The products include transaction processing and information management to more than 11, 200 institutions Jack Henry & Associates 2010 Annual Report 7 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

MAJOR BUSINESS UNITS Jack Henry Banking – Provides banking solutions and the integrated data MAJOR BUSINESS UNITS Jack Henry Banking – Provides banking solutions and the integrated data processing banks need to process financial transactions, automate business processes, and manage information. Serves as the primary technology partner for 1, 500 banks ranging from de novo institutions to mid-tier banks. The customer base is comprised of 20% mid-tier banks with assets ranging from $1 B - $15 B. The three functionally distinct core solutions are CIF 20/20, Silver. Lake System, and Core. Director. Symitar – Performs the same functions as Jack Henry Banking for credit unions. In the 10 years since it was acquired, it has more than doubled its customer base. Supports more than 700 credit unions of all asset size, including 35% of credit unions with over $1 billion in assets. The two functionally distinct core solutions are Episys and Cruise. Symitar has a 98% customer retention rate. Jack Henry & Associates 2010 Annual Report 8 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

PRIMARY BUSINESS UNITS (CONT. ) Profit. Stars - Provides specialized products and services to PRIMARY BUSINESS UNITS (CONT. ) Profit. Stars - Provides specialized products and services to financial services organizations of all sizes. Established as part of Jack Henry in 2006 as part of a focused diversification acquisition. Supports more than 8, 800 domestic and international financial services organizations, including 42 of the 50 largest domestic banks. They also provide their services to businesses outside the financial industry. i. Pay – Acquired in June 2010, it is the largest independent provider of electronic bill pay in the U. S. i. Pay’s platform supports 40% of the nation’s community banks and more than half of its credit unions that offer online bill pay services. It services more than 1, 700 financial institutions with its easily configurable software. Jack Henry & Associates 2010 Annual Report 9 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

BUSINESS STRATEGY Growth through 1. Expand Product and Service Offerings ü 2. Expand Existing BUSINESS STRATEGY Growth through 1. Expand Product and Service Offerings ü 2. Expand Existing Customer Relationships ü ü 3. Recurring Revenue Utilize full range of products and services Extend Markets ü 4. Upgrade core software applications and expand complementary product and service offerings Provide complementary products to financial institutions regardless of what their core processing solution is utilized Expand Customer Base ü 10 Establish long-term relationships with new customers through sales and marketing efforts and selected acquisitions INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

SIZE OF CUSTOMER BASE Size Jack Henry Bank systems Customer # Banking Primary Market SIZE OF CUSTOMER BASE Size Jack Henry Bank systems Customer # Banking Primary Market % of Market Symitar Profit. Stars Customer # Primary Credit Union Market % of Market Financial Customer # Institutions Financial Customer # i. Pay Institutions Technologies 2006 2007 2008 2009 2010 Less than Less than $30. 0 $20. 0 $30. 0 billion in billion in assets assets 1, 600 1, 500 8, 800 8, 600 8, 400 8, 200 7, 900 - 18. 60% 19. 05% 18. 29% 18. 99% - 650 700 700 8, 600 8, 200 8, 100 7, 800 - 7. 56% 8. 54% 8. 64% 8. 97% - 6, 400 8, 200 7, 500 9, 600 - - 3, 600 9, 000 Jack Henry & Associates 2006 -2010 10 -K 11 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

ACQUISITION STRATEGY To capitalize on its focused diversification acquisition strategy Pros 1. Expand customer ACQUISITION STRATEGY To capitalize on its focused diversification acquisition strategy Pros 1. Expand customer base 2. Enable entry into adjacent markets 3. Generate additional revenue and growth opportunities 4. Increase security and mitigate operational risks 5. Inter-company capital market 6. Economics of scale 7. Synergy 1. 2. 3. Cons May lead to little organic growth Pressure working capital, increase borrowing or selling equity or debt securities to the public Costly and difficult to integrate Example: On June 30, 2008, the Company sold its insurance agency outsourcing business, Banc Insurance Services, resulting in a pre-tax loss of $2. 7 B 12 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

RECENT ACQUISITIONS All numbers in thousands except ratios Target Segment 2006 Profit. Star Banking RECENT ACQUISITIONS All numbers in thousands except ratios Target Segment 2006 Profit. Star Banking System 2007 Margin Maximizer Banking System Gladiator Technology 2008 Services Audio. Tel Corporation Amount Paid 19, 317 % of B/S 34, 006 28, 864 % of B/S 7, 220 69 11. 60% 4. 81% 0. 03% 799 WC Banking System 17, 425 12, 496 4, 859 Banking System 32, 092 26, 799 11, 745 13. 58% 10. 19% 0. 33% WC % of B/S 2009 Goldleaf Financial Solutions, Inc. Identifiable Long-term Financing intangible Assets assets 19, 698 3, 291 WC 9. 27% 2. 43% Goodwill WC WC i. Pay Technologies 67, 617 33, 081 39, 845 7, 466 Credit Union 61, 841 19, 831 34, 912 1, 222 Borrowing Banking & Credit Union 301, 143 192, 345 116, 286 6, 362 Borrowing % of B/S PEMCO Technology 2010 Services Credit Union 45. 66% 53. 18% Jack Henry & Associates 2010 10 -K 13 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION 5. 48%

ACQUISITION STRATEGY Next Move? There is not much discussion in the 2010 annual report ACQUISITION STRATEGY Next Move? There is not much discussion in the 2010 annual report and 2011 quarterly report: “We will continue to refine our strategy as appropriate, while maintaining our focus on product and service quality, and providing the innovative solutions diverse financial institutions and businesses need to prosper in their competitive and evolving markets. “ 14 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

SOURCES OF REVENUE Hardware Sales – Generates revenue through selling computer hardware, hardware maintenance SOURCES OF REVENUE Hardware Sales – Generates revenue through selling computer hardware, hardware maintenance and related services to customers. Revenue is recognized when the hardware is shipped. Software License Fees – Generates revenue through the delivery of application software systems contracted with customers. License allows for product to be used on a single computer at a single location. Support & Service – Generates revenue from implementation services, annual support to assist the customer in operating their systems and to enhance and update the software, outsourced data processing services and EFT support services. Jack Henry & Associates 2010 Annual Report 15 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

SOURCES OF REVENUE Jack Henry & Associates 2011 Q 2 16 INTRODUCTION | BACKGROUND| SOURCES OF REVENUE Jack Henry & Associates 2011 Q 2 16 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

INDUSTRY OUTLOOK Slow recovery from the US financial crisis remains a going concern as INDUSTRY OUTLOOK Slow recovery from the US financial crisis remains a going concern as it threatens a bank’s discretionary spending Reduction in profits has decreased demand for new products and services Bank failures have been somewhat offset by JKHY’s acquisitions of other companies The number of banks and credit unions has declined by 11% and 16%, respectively, from 2005 to 2009 The Company reports that 49% of financial institutions and 26% of credit unions outsource information processing Jack Henry & Associates 2010 Annual Report 17 INTRODUCTION | BACKGROUND| ANALYSIS VALUATION| RECOMMENDATION |

MANAGEMENT ASSESSMENT Consolidation in the financial industry can positively affect JKHY if the combined MANAGEMENT ASSESSMENT Consolidation in the financial industry can positively affect JKHY if the combined institution uses JKHY’s platform JKHY remains “cautiously optimistic” because increasing portions of the business come from recurring revenue, increases in backlog and an encouraging sales pipeline Customers will continue to face regulatory changes which will increase demand for JKHY’s products, which directly address efficiency and profitability JKHY made 3 of its largest acquisitions during FY’ 10 and these acquisitions allow the Company to extend its customer base and produce returns for its shareholders Jack Henry & Associates 2010 Annual Report 18 INTRODUCTION | BACKGROUND| ANALYSIS VALUATION| RECOMMENDATION |

PORTER’S 5 FORCES Threat of Substitutes: Low/Medium Barriers to Entry: High Hardware represents insignificant PORTER’S 5 FORCES Threat of Substitutes: Low/Medium Barriers to Entry: High Hardware represents insignificant portion of revenue Power of Buyers: Low/Medium Very high switching costs & regulation compliance Power of Suppliers: Low Large costs associated with switching technology platforms High switching costs associated with learning Rivalry: High 19 Competition against big firms & industry consolidation INTRODUCTION | BACKGROUND| ANALYSIS VALUATION| RECOMMENDATION |

SWOT ANALYSIS Strengths: Payment solutions & recent acquisitions continue to experience growth Profitability in SWOT ANALYSIS Strengths: Payment solutions & recent acquisitions continue to experience growth Profitability in tough market Increased dividend Opportunities: Economic environment improving means greater discretionary spending by banks Debt pay-down scheduled for July, thus reducing interest expense Cross-selling Weaknesses: Loss of customers from bank failures High switching costs for customers Diminishing organic growth Threats: Tighter credit markets Bank discretionary spending has been slow to recover If economy doesn’t pick up, banks will be less likely to purchase other products such as internet banking 20 INTRODUCTION | BACKGROUND| ANALYSIS VALUATION| RECOMMENDATION |

COMPETITORS OVERVIEW Fidelity National Information Services DST Systems Inc. • Four segments • Financial COMPETITORS OVERVIEW Fidelity National Information Services DST Systems Inc. • Four segments • Financial Solutions • Payment Solutions • International Solutions • Corporate and Other • Provides services to government • Two segments • Financial Services • Output Solutions • Focus on investment transactions • Diversified with real estate in Australia Fiserv Inc. NCR Corp. • Two segments • Payments and Industry products • Financial Institution Services • International exposure • Hardware focused • Services for ATMs and cash dispensers • Imaging products 21 INTRODUCTION | BACKGROUND| ANALYSIS VALUATION| RECOMMENDATION |

COMPANY SIZE FY 2010 22 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION | COMPANY SIZE FY 2010 22 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION |

COMPS STATEMENTS FY 2010 ROE JKHY Debt to Equity Liabilities to Assets P/E 17. COMPS STATEMENTS FY 2010 ROE JKHY Debt to Equity Liabilities to Assets P/E 17. 12% 8. 80% 52. 03% 18. 56 5. 32% 80. 09% 53. 67% 28. 05 FISV 16. 18% 103. 93% 61. 01% 15. 60 NCR 15. 12% 1. 20% 79. 00% 52. 89 DST 42. 91% 143. 61% 74. 68% 9. 62 Averages 19. 33% 67. 53% 64. 07% 24. 94 Industry 18. 00% 30. 80% 53. 00% 15. 90 FIS Data from Capital IQ 23 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION |

STOCK PRICE OVER LAST YEAR Data from Yahoo! Finance 24 INTRODUCTION | BACKGROUND| ANALYSIS| STOCK PRICE OVER LAST YEAR Data from Yahoo! Finance 24 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION |

TRADING COMPS FY 2010 25 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION | TRADING COMPS FY 2010 25 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION |

TRADING COMPS VALUES 26 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION | TRADING COMPS VALUES 26 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION |

DISCOUNT RATE WACC Capital Structure Market Price Shares Outstanding 32. 31 86. 16 Market DISCOUNT RATE WACC Capital Structure Market Price Shares Outstanding 32. 31 86. 16 Market Capitalization 2, 783. 70 Total Debt Total Common Equity Total Capital 244. 932 2, 783. 70 3, 028. 63 Weight of Debt 8. 09% Weight of Equity 91. 91% WACC (ROE) 3. 01% 8. 98% 18. 92% ROE (Average) 27 10. 30% Cost of Equity Cost of Debt WACC (ROE) 0. 73 0. 68 0. 73 0. 71 10. 00% 3. 50% 6. 50% 8. 14% 3. 04% 35. 00% 7. 64% Discount Rate (Goal Post Theory) WACC (ROE) ROE (2002 -2005) ROE (2005 -2008) ROE (2008 -2011) Beta (Google) Beta (Yahoo) Beta(Reuters) Beta Average Market Return Risk-Free Rate Market Risk Premium Cost of Equity (CAPM) Cost of Debt Tax Rate Weighted Average Cost of Capital 10. 30% 3. 04% 9. 63% Discount Rate INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION | 9. 22% 3. 04% 8. 63%

SENSITIVITY ANALYSIS Discount Rate 30. 47 8. 63% 9. 63% 10. 63% 11. 63% SENSITIVITY ANALYSIS Discount Rate 30. 47 8. 63% 9. 63% 10. 63% 11. 63% 12. 63% 44. 11 35. 04 28. 98 24. 67 21. 46 18. 98 17. 01 3. 00% 49. 81 38. 52 31. 30 26. 31 22. 67 19. 90 17. 73 3. 50% 57. 33 42. 84 34. 07 28. 22 24. 05 20. 94 18. 54 4. 00% 67. 71 48. 36 37. 45 30. 46 25. 64 22. 11 19. 43 4. 50% 82. 96 55. 64 41. 63 33. 15 27. 48 23. 45 20. 44 5. 00% 107. 57 65. 68 46. 97 36. 41 29. 66 24. 99 21. 57 5. 50% 28 7. 63% 2. 50% Growth Rate 6. 63% 153. 95 80. 45 54. 02 40. 47 32. 26 26. 78 22. 87 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION |

DCF AND VALUE Year Ended June 30 2006 Year Ended June 30 2008 2009 DCF AND VALUE Year Ended June 30 2006 Year Ended June 30 2008 2009 2010 89, 923 104, 681 104, 222 103, 102 117, 870 43, 774 Net Income 2007 2011 E 50, 954 62, 006 64, 147 71, 508 92, 058 109, 198 123, 132 150, 264 (76, 389) 99, 153 128 33, 228 (5, 623) Changes In NWC Capital Expenditures (37, 488) $61, 475 $54, 945 (8, 274) $54, 841 (26, 029) $56, 246 $80, 095 Free Cash Flow 2013 E 169, 644 2014 E 191, 688 2015 E Growth Rate 5 Year Discount Rate Terminal Discount Rate 4% 8. 63% 9. 63% 142, 070 Depreciation & Amortization 2012 E 229, 860 247, 954 163, 780 $93, 069 $110, 398 $124, 485 $151, 915 72, 222 138, 178 119, 661 41, 905 168, 316 157, 107 233, 831 184, 310 Terminal Value Time 0. 5 1. 5 2. 5 3. 5 40, 205 148, 654 127, 727 174, 995 PV of Terminal Value Less: Debt Equity Value 2, 964, 423 244, 932 2, 719, 491 PV of Free Cash Flow Firm Value Total PV of FCF 165, 579 185, 672 137, 032 61, 844 29 3, 405, 221 # of Shares 86, 156 Intrinsic Value 4. 5 126, 972 30. 47 +10% 33. 52 -10% 27. 42 2, 345, 868 INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION RECOMMENDATION |

RECOMMENDATION DCF Value 30. 47 +10% 33. 52 -10% 27. 42 Comps Median Value RECOMMENDATION DCF Value 30. 47 +10% 33. 52 -10% 27. 42 Comps Median Value 26. 70 Weighted Value $29. 53 Sensitivity Analysis Price Range $24. 05 - $41. 63 Price as of Close 3/9/2011 $32. 31 Currently hold 400 shares Recommendation: Stop loss on 200 shares at $26. 50 30 Constitutes 18% decline from current stock price INTRODUCTION | BACKGROUND| ANALYSIS| VALUATION| RECOMMENDATION

QUESTIONS? INTRODUCTION | PROBLEM | OBJECTIVES | ANALYSIS | SOLUTION QUESTIONS? INTRODUCTION | PROBLEM | OBJECTIVES | ANALYSIS | SOLUTION