Jack Henry & Associates, Inc. Reports Fourth Quarter and Full Year Fiscal 2024 Results

Current

GAAP

Low

High

Revenue

$2,369

$2,391

Operating margin

23.0 %

23.2 %

EPS

$5.78

$5.87

Non-GAAP3

Adjusted revenue

$2,353

$2,375

Adjusted operating margin

22.7 %

22.8 %

According to Greg Adelson, President and CEO, “We are very pleased to report overall strong financial performance results for the fourth quarter and full 2024 fiscal year. We produced record revenue and operating income in fiscal year 2024 along with our highest-ever sales bookings in both the fourth quarter and fiscal year. Technology spending remains robust with significant demand for our innovative solutions. Even with record sales bookings, we continued to replenish and keep our sales pipeline near its all-time high. We are well positioned for future growth as we continue to invest in innovation, execute on our strategy, and deliver for our clients and shareholders.”

Revenue

(Unaudited, In Thousands)

Three Months Ended

June 30,

%
Change

Year Ended

June 30,

%
Change

2024

2023

2024

2023

Revenue

Services and Support

$       316,739

$          311,931

1.5 %

$   1,275,954

$       1,214,701

5.0 %

 Percentage of Total Revenue

56.6 %

58.3 %

57.6 %

58.5 %

Processing

243,173

222,703

9.2 %

939,589

863,001

8.9 %

 Percentage of Total Revenue

43.4 %

41.7 %

42.4 %

41.5 %

REVENUE

$      559,912

$      534,634

4.7 %

$   2,215,543

$    2,077,702

6.6 %

Operating Expenses and Operating Income

(Unaudited, In Thousands)

Three Months Ended

June 30,

%
Change

Year Ended

June 30,

%
Change

2024

2023

2024

2023

Cost of Revenue

$      327,272

$      308,868

6.0 %

$    1,299,477

$      1,219,062

6.6 %

Percentage of Total Revenue5

58.5 %

57.8 %

58.7 %

58.7 %

Research and Development

39,892

38,498

3.6 %

148,256

142,678

3.9 %

Percentage of Total Revenue5

7.1 %

7.2 %

6.7 %

6.9 %

Selling, General, and Administrative

67,122

63,069

6.4 %

278,419

235,274

18.3 %

Percentage of Total Revenue5

12.0 %

11.8 %

12.6 %

11.3 %

OPERATING EXPENSES

434,286

410,435

5.8 %

1,726,152

1,597,014

8.1 %

OPERATING INCOME

$      125,626

$        124,199

1.2 %

$      489,391

$      480,688

1.8 %

Operating Margin5

22.4 %

23.2 %

22.1 %

23.1 %

(Unaudited, In Thousands,

Except Per Share Data)

Three Months Ended

June 30,

%
Change

Year Ended

June 30,

%
Change

2024

2023

2024

2023

Income Before Income Taxes

$         130,384

$          123,950

5.2 %

$         498,019

$         474,574

4.9 %

Provision for Income Taxes

29,311

26,177

12.0 %

116,203

107,928

7.7 %

NET INCOME

$          101,073

$            97,773

3.4 %

$          381,816

$         366,646

4.1 %

Diluted earnings per share

$                 1.38

$                 1.34

3.3 %

$                5.23

$                5.02

4.2 %

According to Mimi Carsley, CFO and Treasurer, “For both the fourth quarter and the fiscal year, our private cloud and processing services continued to drive robust revenue growth.  These key areas of revenue had strong, organic revenue growth of 9%, while overall revenue grew over 7% on a non-GAAP basis and non-GAAP operating income grew over 10%.”

(Unaudited, In Thousands)

Three Months Ended June 30,

%
Change

Year Ended June 30,

%
Change

2024

2023

2024

2023

GAAP Revenue**

$         559,912

$        534,634

4.7 %

$    2,215,543

$     2,077,702

6.6 %

Adjustments:

Deconversion revenue

(6,693)

(14,733)

(16,554)

(31,775)

Revenue from acquisition

—

—

(1,945)

—

NON-GAAP ADJUSTED REVENUE**

$         553,219

$          519,901

6.4 %

$    2,197,044

$    2,045,927

7.4 %

GAAP Operating Income

$         125,626

$          124,199

1.2 %

$       489,391

$      480,688

1.8 %

Adjustments:

Operating income from deconversions

(5,594)

(13,054)

(13,146)

(27,513)

VEDIP program expense*

—

—

16,443

—

Operating loss from acquisition

—

—

2,237

—

(Gain)/loss on sale of assets, net

—

2,816

—

(4,567)

NON-GAAP ADJUSTED OPERATING INCOME

$         120,032

$           113,961

5.3 %

$      494,925

$      448,608

10.3 %

Non-GAAP Adjusted Operating Margin***

21.7 %

21.9 %

22.5 %

21.9 %

GAAP Net Income

$          101,073

$            97,773

3.4 %

$        381,816

$       366,646

4.1 %

*The VEDIP program expense for the fiscal year ended June 30, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.

**GAAP revenue is comprised of services and support and processing revenues (see page 2). Reducing services and support revenue by deconversion revenue for the three months ended June 30, 2024, and 2023 which was $6,693 for the current fiscal year quarter and $14,733 for the prior fiscal year quarter, results in non-GAAP adjusted services and support revenue growth of 4.3% quarter over quarter. There were no non-GAAP adjustments to processing revenue for the three months ended June 30, 2024, or 2023 .

Reducing services and support revenue by deconversion revenue for the year ended June 30, 2024, and 2023, which was $16,554 for the current fiscal year and $31,775 for the prior fiscal year, and by $2 of revenue from the acquisition in the current fiscal year, results in non-GAAP adjusted services and support revenue growth of 6.5% year over year. Reducing processing revenue by revenue from the acquisition for the year ended June 30, 2024, which was $1,943, results in non-GAAP adjusted processing revenue growth of 8.6% year over year.

***Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.

(Unaudited, In Thousands)

Three Months Ended June 30,

%
Change

Year Ended June 30,

%
Change

2024

2023

2024

2023

GAAP Net Income

$             101,073

$              97,773

3.4 %

$           381,816

$         366,646

4.1 %

Adjustments:

Net income from deconversions

(5,594)

(13,054)

(13,146)

(27,513)

VEDIP program expense*

—

—

16,443

—

Net loss from acquisition

—

—

4,656

—

(Gain)/loss on sale of assets, net

—

2,816

—

(4,567)

Tax impact of adjustments**

1,343

2,456

(1,909)

7,699

NON-GAAP ADJUSTED NET INCOME

$              96,822

$             89,991

7.6 %

$          387,860

$          342,265

13.3 %

*The VEDIP program expense for the fiscal year ended June 30, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.

**The tax impact of adjustments is calculated using a tax rate of 24% for the three months ended June 30, 2024, and 2023, and for the fiscal year ended June 30, 2024, and 2023. The tax rate for non-GAAP adjustment items takes a broad look at our recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.

Three Months Ended June 30, 2024

(Unaudited, In Thousands)

Core

Payments

Complementary

Corporate
and Other

Total

GAAP REVENUE

$  172,040

$  212,593

$                 155,149

$      20,130

$  559,912

Non-GAAP adjustments*

(2,407)

(2,367)

(1,777)

(142)

(6,693)

NON-GAAP ADJUSTED REVENUE

169,633

210,226

153,372

19,988

553,219

GAAP COST OF REVENUE

69,900

111,787

64,295

81,290

327,272

Non-GAAP adjustments*

(415)

(66)

(188)

—

(669)

NON-GAAP ADJUSTED COST OF REVENUE

69,485

111,721

64,107

81,290

326,603

GAAP SEGMENT INCOME

$   102,140

$  100,806

$                90,854

$     (61,160)

Segment Income Margin**

59.4 %

47.4 %

58.6 %

(303.8) %

NON-GAAP ADJUSTED SEGMENT INCOME

$  100,148

$   98,505

$                 89,265

$    (61,302)

Non-GAAP Adjusted Segment Income Margin**

59.0 %

46.9 %

58.2 %

(306.7) %

Research and Development

39,892

Selling, General, and Administrative

67,122

Non-GAAP adjustments unassigned to a segment***

(430)

NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES

433,187

NON-GAAP ADJUSTED OPERATING INCOME

$  120,032

*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.

**Segment income margin is calculated by dividing segment income by revenue. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue.

***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.

Three Months Ended June 30, 2023

(Unaudited, In Thousands)

Core

Payments

Complementary

Corporate
and Other

Total

GAAP REVENUE

$  167,085

$   197,466

$                 151,059

$      19,024

$   534,634

Non-GAAP adjustments*

(4,676)

(3,510)

(6,330)

(217)

(14,733)

NON-GAAP ADJUSTED REVENUE

162,409

193,956

144,729

18,807

519,901

GAAP COST OF REVENUE

69,554

106,699

59,673

72,942

308,868

Non-GAAP adjustments*

(256)

(82)

(269)

(3)

(610)

NON-GAAP ADJUSTED COST OF REVENUE

69,298

106,617

59,404

72,939

308,258

GAAP SEGMENT INCOME

$     97,531

$    90,767

$                  91,386

$    (53,918)

Segment Income Margin

58.4 %

46.0 %

60.5 %

(283.4) %

NON-GAAP ADJUSTED SEGMENT INCOME

$       93,111

$    87,339

$                 85,325

$    (54,132)

Non-GAAP Adjusted Segment Income Margin

57.3 %

45.0 %

59.0 %

(287.8) %

Research and Development

38,498

Selling, General, and Administrative

63,069

Non-GAAP adjustments unassigned to a segment**

(3,885)

NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES

405,940

NON-GAAP ADJUSTED OPERATING INCOME

$       113,961

*Revenue non-GAAP adjustments for all segments were deconversion revenues. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.

**Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs of $(1,068) and loss on sale of assets, net, of $(2,817).

Year Ended June 30, 2024

(Unaudited, In Thousands)

Core

Payments

Complementary

Corporate
and Other

Total

GAAP REVENUE

$ 690,738

$   817,708

$                  618,211

$     88,886

$ 2,215,543

Non-GAAP adjustments*

(7,292)

(7,781)

(3,217)

(209)

(18,499)

NON-GAAP ADJUSTED REVENUE

683,446

809,927

614,994

88,677

2,197,044

GAAP COST OF REVENUE

287,349

442,084

256,007

314,037

1,299,477

Non-GAAP adjustments*

(1,065)

(3,573)

(903)

(24)

(5,565)

NON-GAAP ADJUSTED COST OF REVENUE

286,284

438,511

255,104

314,013

1,293,912

GAAP SEGMENT INCOME

$ 403,389

$  375,624

$              362,204

$   (225,151)

Segment Income Margin

58.4 %

45.9 %

58.6 %

(253.3) %

NON-GAAP ADJUSTED SEGMENT INCOME

$   397,162

$    371,416

$              359,890

$ (225,336)

Non-GAAP Adjusted Segment Income Margin

58.1 %

45.9 %

58.5 %

(254.1) %

Research and Development

148,256

Selling, General, and Administrative

278,419

Non-GAAP adjustments unassigned to a segment**

(18,468)

NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES

1,702,119

NON-GAAP ADJUSTED OPERATING INCOME

$  494,925

*Revenue non-GAAP adjustments for the Core, Complementary, and Corporate and Other segments were deconversion revenue. Revenue non-GAAP adjustments for the Payments segment were deconversion revenue of $(5,836) and acquisition revenue of $(1,945). Cost of revenue non-GAAP adjustments for the Core and Complementary segments were deconversion costs. Cost of revenue non-GAAP adjustments for the Payments and Corporate and Other segments were deconversion costs of $(259) and $(4), respectively, and acquisition costs of $(3,314) and $(20), respectively.

**Non-GAAP adjustments unassigned to a segment were selling, general, and administrative VEDIP expenses, deconversion costs, and acquisition costs of $(16,443), $(1,177), and $(192), respectively, and research and development acquisition costs of $(656).

Year Ended June 30, 2023

(Unaudited, In Thousands)

Core

Payments

Complementary

Corporate
and Other

Total

GAAP REVENUE

$ 649,045

$  767,309

$              583,586

$      77,762

$ 2,077,702

Non-GAAP adjustments*

(10,924)

(7,924)

(12,649)

(278)

(31,775)

NON-GAAP ADJUSTED REVENUE

638,121

759,385

570,937

77,484

2,045,927

GAAP COST OF REVENUE

276,818

420,880

237,758

283,606

1,219,062

Non-GAAP adjustments*

(913)

(303)

(807)

(23)

(2,046)

NON-GAAP ADJUSTED COST OF REVENUE

275,905

420,577

236,951

283,583

1,217,016

GAAP SEGMENT INCOME

$  372,227

$ 346,429

$              345,828

$ (205,844)

Segment Income Margin

57.3 %

45.1 %

59.3 %

(264.7) %

NON-GAAP ADJUSTED SEGMENT INCOME

$  362,216

$ 338,808

$              333,986

$ (206,099)

Non-GAAP Adjusted Segment Income Margin

56.8 %

44.6 %

58.5 %

(266.0) %

Research and Development

142,678

Selling, General, and Administrative

235,274

Non-GAAP adjustments unassigned to a segment**

2,351

NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES

1,597,319

NON-GAAP ADJUSTED OPERATING INCOME

$  448,608

*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.

**Non-GAAP adjustments unassigned to a segment were the selling, general, and administrative gain on sale of assets, net, and deconversion costs of $4,567 and $(2,216), respectively.

GAAP to Non-GAAP GUIDANCE (In Millions,
except per share data)

Annual FY25

Adjusted for
FY25
Comparison

Reported

Acquisition
Activity**

Low

High

FY24

FY24

FY24

GAAP REVENUE

$   2,369

$   2,391

$             2,216

$     2,216

$                 —

     Growth

6.9 %

7.9 %

Deconversions*

$        16

$        16

$                  17

$          17

$                 —

Acquisition**

$            2

$                 (2)

NON-GAAP ADJUSTED REVENUE***

$   2,353

$   2,375

$             2,199

$     2,197

$                  2

     Non-GAAP Adjusted Growth

7.0 %

8.0 %

GAAP OPERATING EXPENSES

$   1,823

$   1,836

$             1,726

$     1,726

$                —

     Growth

5.6 %

6.4 %

Deconversion costs*

$          3

$          3

$                    3

$            3

$                —

Acquisition costs**

—

—

$                  —

$            4

$                 (4)

VEDIP Program****

—

—

$                  16

$          16

$                —

NON-GAAP ADJUSTED OPERATING EXPENSES***

$   1,820

$   1,833

$             1,706

$     1,702

$                  4

     Non-GAAP Adjusted Growth

6.7 %

7.4 %

GAAP OPERATING INCOME

$     546

$     555

$               489

$       489

$                —

     Growth

11.6 %

13.3 %

GAAP OPERATING MARGIN

23.0 %

23.2 %

22.1 %

22.1 %

NON-GAAP ADJUSTED OPERATING INCOME***

$     533

$     542

$               493

$       495

$                (2)

     Non-GAAP Adjusted Growth

8.2 %

9.9 %

NON-GAAP ADJUSTED OPERATING MARGIN

22.7 %

22.8 %

22.4 %

22.5 %

GAAP EPS*****

$     5.78

$     5.87

$              5.23

$      5.23

$                —

     Growth

10.6 %

12.3 %

Non-GAAP EPS*****

$     5.65

$     5.74

$              5.26

$       5.31

$           (0.05)

Growth

7.3 %

9.0 %

*Deconversion revenue and related operating expenses are based on estimates for the year ended June 30, 2025, based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on August 12, 2024.

**Excluded acquisition revenue and costs are for the first two months of fiscal year ended June 30, 2024 only (see “Impact of Non-GAAP Adjustments” on page 4).

***GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding.

****This cost relates to the group of employees who participated in a Company VEDIP program offered in July 2023 to certain employees of a specified minimum age who had reached a specified minimum number of years of service with the Company.

*****The GAAP to Non-GAAP EPS reconciliation table is below on page 15.

*See table below for Net Cash Provided by Operating Activities and on page 14 for Return on Average Shareholders’ Equity. Tables reconciling the non-GAAP measures Free Cash Flow and Return on Invested Capital (ROIC) to GAAP measures are also on page 14. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and ROIC.

(Unaudited, In Thousands)

Year Ended June 30,

2024

2023

Net income

$                       381,816

$                      366,646

Depreciation

46,342

48,720

Amortization

153,562

142,006

Change in deferred income taxes

(909)

(48,199)

Other non-cash expenses

32,714

24,094

Change in receivables

28,219

(12,067)

Change in deferred revenue

(10,797)

(10,547)

Change in other assets and liabilities*

(62,906)

(129,094)

NET CASH FROM OPERATING ACTIVITIES

$                      568,041

$                       381,559

*For the year ended June 30, 2024, includes the change in prepaid expenses, prepaid cost of product and other of $(115,558) and change in accrued expenses of $37,292. For the year ended June 30, 2023, includes the change in prepaid expenses, prepaid cost of product and other of $(112,316).

(Unaudited, In Thousands)

Year Ended June 30,

2024

2023

Payment for acquisitions, net of cash acquired*

$                                  —

$                    (229,628)

Capital expenditures

(58,118)

(39,179)

Proceeds from dispositions

904

27,939

Purchased software

(7,130)

(1,685)

Computer software developed

(167,175)

(166,120)

Purchase of investments

(8,646)

(1,000)

NET CASH FROM INVESTING ACTIVITIES

$                    (240,165)

$                    (409,673)

*During first quarter fiscal 2023, the Company completed its acquisition of Payrailz.

(Unaudited, In Thousands)

Year Ended June 30,

2024

2023

Borrowings on credit facilities*

$                   475,000

$                     810,000

Repayments on credit facilities and financing leases

(600,000)

(650,060)

Purchase of treasury stock

(28,055)

(25,000)

Dividends paid

(155,877)

(147,237)

Net cash from issuance of stock and tax related to stock-based compensation

7,097

3,867

NET CASH FROM FINANCING ACTIVITIES

$                  (301,835)

$                       (8,430)

*The Company’s acquisition of Payrailz during first quarter fiscal 2023 was primarily funded by new borrowings under the Company’s credit facilities.

Condensed Consolidated Statements of Income (Unaudited)

(In Thousands, except per share data)

Three Months Ended June 30,

%
Change

Year Ended June 30,

%
Change

2024

2023

2024

2023

REVENUE

$            559,912

$           534,634

4.7 %

$      2,215,543

$        2,077,702

6.6 %

Cost of Revenue

327,272

308,868

6.0 %

1,299,477

1,219,062

6.6 %

Research and Development

39,892

38,498

3.6 %

148,256

142,678

3.9 %

Selling, General, and Administrative

67,122

63,069

6.4 %

278,419

235,274

18.3 %

EXPENSES

434,286

410,435

5.8 %

1,726,152

1,597,014

8.1 %

OPERATING INCOME

125,626

124,199

1.2 %

489,391

480,688

1.8 %

Interest income

8,647

5,176

67.1 %

25,012

8,959

179.2 %

Interest expense

(3,889)

(5,425)

(28.3) %

(16,384)

(15,073)

8.7 %

Interest Income (Expense), net

4,758

(249)

(2,010.8) %

8,628

(6,114)

(241.1) %

INCOME BEFORE INCOME TAXES

130,384

123,950

5.2 %

498,019

474,574

4.9 %

Provision for Income Taxes

29,311

26,177

12.0 %

116,203

107,928

7.7 %

NET INCOME

$             101,073

$               97,773

3.4 %

$           381,816

$          366,646

4.1 %

Diluted net income per share

$                   1.38

$                    1.34

$                5.23

$                 5.02

Diluted weighted average shares outstanding

73,069

73,027

73,025

73,096

Consolidated Balance Sheet Highlights (Unaudited)

(In Thousands)

June 30,

%
Change

2024

2023

Cash and cash equivalents

$           38,284

$              12,243

212.7 %

Receivables

333,033

361,252

(7.8) %

Total assets

2,924,481

2,773,826

5.4 %

Accounts payable and accrued expenses

$         226,084

$             191,785

17.9 %

Current and long-term debt

150,000

275,000

(45.5) %

Deferred revenue

388,932

399,729

(2.7) %

Stockholders’ equity

1,842,364

1,608,510

14.5 %

Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)

Three Months Ended June 30,

%
Change

Year Ended June 30,

%
Change

(in thousands)

2024

2023

2024

2023

Net income

$             101,073

$               97,773

$           381,816

$          366,646

Net interest

(4,758)

249

(8,628)

6,114

Taxes

29,310

26,177

116,203

107,928

Depreciation and amortization

50,690

48,377

199,904

190,726

Less: Net income before interest expense, taxes, depreciation
 and amortization attributable to eliminated one-time adjustments*

(5,594)

(10,238)

3,412

(32,081)

NON-GAAP EBITDA

$              170,721

$             162,338

5.2 %

$          692,707

$          639,333

8.3 %

*The fiscal fourth quarter 2024 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions. The fiscal year 2024 adjustments
were for deconversions, the VEDIP program expense, and the acquisition, and were $(13,146), $16,443, and $115, respectively. The fiscal fourth quarter 2023 adjustments for net
income before interest expense, taxes, depreciation and amortization were for deconversions of $(13,054) and gain on sale of assets, net, of $2,816. The fiscal year 2023 adjustments
were for deconversions and a gain on sale of assets, net, and were $(27,514) and $(4,567), respectively.

Calculation of Free Cash Flow (Non-GAAP)

Year Ended June 30,

(in thousands)

2024

2023

Net cash from operating activities

$          568,041

$          381,559

Capitalized expenditures

(58,118)

(39,179)

Internal use software

(7,130)

(1,685)

Proceeds from sale of assets

904

27,939

Capitalized software

(167,175)

(166,120)

FREE CASH FLOW

$          336,522

$          202,514

Calculation of the Return on Average Shareholders’ Equity

June 30,

(in thousands)

2024

2023

Net income (trailing four quarters)

$          381,816

$          366,646

Average stockholder’s equity (period beginning and ending balances)

1,725,437

1,495,066

RETURN ON AVERAGE SHAREHOLDERS’ EQUITY

22.1 %

24.5 %

Calculation of Return on Invested Capital (ROIC) (Non-GAAP)

June 30,

(in thousands)

2024

2023

Net income (trailing four quarters)

$          381,816

$         366,646

Average stockholder’s equity (period beginning and ending balances)

1,725,437

1,495,066

Average current maturities of long-term debt (period beginning
and ending balances)

45,000

34

Average long-term debt (period beginning and ending balances)

167,500

195,000

Average invested capital

$       1,937,937

$      1,690,100

ROIC

19.7 %

21.7 %

GAAP to Non-GAAP EPS Reconciliation Table

Actual Non-GAAP EPS

Pretax

Net of Tax

FY24
Reported

Pretax

Net of Tax

FY24 Adjusted
for FY25
comparison

GAAP EPS

$5.23

$5.23

Excluded Activity, net of Tax:

Deconversion

$0.18

$0.14

$0.18

$0.14

VEDIP*

$(0.23)

$(0.17)

$(0.23)

$(0.17)

Acquisition**

$(0.06)

$(0.05)

n/a

n/a

Non-GAAP EPS

$5.31

$5.26

FY25 Guidance

GAAP EPS

$5.78-$5.87

Excluded Activity, net of Tax:

Deconversion***

$0.13

Non-GAAP EPS

$5.65-$5.74

*This cost relates to the group of employees who participated in a Company VEDIP program offered in July 2023 to certain employees of a specified minimum age who had reached a specified minimum number of years of service with the Company.

**Excluded acquisition revenue and costs are for the first two months of fiscal year ended June 30, 2024 only (see “Impact of Non-GAAP Adjustments” on page 4).

***We are not aware of any other discreet adjustments at this time. Deconversion revenue and related operating expenses are based on estimates for the year ended June 30, 2025, based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on August 12, 2024.