Good day, ladies and gentlemen, and thank you for standing by. Welcome to Jack Henry & Associates' Third Quarter FY 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session; instructions will follow at that time. As a reminder, this conference is being recorded. I'll now turn the conference over to your host, Mr. Kevin Williams. You may begin. Kevin D. Williams - Jack Henry & Associates, Inc.: Thanks, Lydia (00:38). Good morning. Thank you for joining us for the Jack & Associates (sic) [Jack Henry & Associates] (00:40) third quarter fiscal 2018 earnings call. I am Kevin Williams, CFO and Treasurer, and on the call with me today is David Foss, our President and CEO. The agenda for this morning will be opening comments by me, then I'll turn the call over to Dave to provide some of his thoughts about the state of the business and the performance for the quarter. And then, I will provide some additional thoughts and comments regarding the press release we put out yesterday after market closed. And then, we will open the line up for Q&A. I need to remind you that remarks and responses to questions concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements or deal with expectations about the future. Like any statement about the future, these are subject to a number of factors, which could cause actual results or events to differ materially from those which we anticipate, due to a number of risks and uncertainties. And the company undertakes no obligation to update or revise these statements. For a summary of these risk factors and additional information, please refer to yesterday's press release and the sections in our 10-K entitled Risk Factors and Forward-Looking…

Our first question coming from the line of Brett Huff with Stephens. Your line is open.

Good morning, guys. David B. Foss - Jack Henry & Associates, Inc.: Good morning, Brett. Kevin D. Williams - Jack Henry & Associates, Inc.: Good morning.

Two questions. Number one, can you talk a little bit about the demand environment? Dave, you touched on it, but your two peers have been – last couple of days have talked a little bit more enthusiastically about acceleration of demand, particularly sales over the last couple of quarters. And just wondered how that matched with what you all are seeing if there's a meaningful difference here in the last six months? David B. Foss - Jack Henry & Associates, Inc.: No, we're seeing the same thing. I think on the last call, if I remember right, I pointed out that our pipeline was larger than it's ever been in the history of the company. And so I would say we're seeing the same things. In fact, I have a couple of charts that I'm going to show you guys at the Analyst Conference next week from a recent study that came out on that very topic. But I would echo that. I think demand is strong. The sales pipeline is solid. The sales team has exceeded quota every quarter so far this year, which is remarkable as far as I'm concerned. So, things are good on the sales front.

That's helpful. And then the other question is, we're pretty focused and intrigued by the new card issuing processing product that you guys are developing. Two questions on that. One, is it still about a year-and-a-half out before we start getting some margin sort of moderate – a margin impact moderation as we kind of close down some of the other two switches, number one? And then number two, I think you said 34 live. Can you give us a sense, are the banks bigger than you thought? Is the volume coming on faster than you thought and kind of how are the economics playing out relative to what you expected? David B. Foss - Jack Henry & Associates, Inc.: Yeah. I think so, 34 live. We have, I think, 19 more that will be live by the time we get together next Monday. So, I can give you another update at the Analyst Conference on Monday, but it's a broad mix. So as with any project like this, it's probably logical to you that we wouldn't start with our largest customers. We would start with a few smaller ones. But so far, other than the first four, after that, it's been a good mix as far as volume, a good mix as far as number of cardholders. And these conversions, I should knock on wood when I say it, but they really have gone flawlessly and I think a big reason for that is because the consumer, there's no impact to the consumer. They don't have to issue new cards. It's really a seamless conversion for the consumer, so progress will continue. We'll continue to give you updates on progress and a little more information on volumes as we get farther down the road. But so far, it's been extremely successful and the timeline at the beginning of your question, it's still in the ballpark. We'll see again as we start to ramp up how quickly can we ramp, can we do more than we thought every month, will we end up doing fewer than we thought, so we'll give you more guidance on that as time goes by as well. But right now, it's progressing extremely well and I'm very optimistic about the future of that project.

I guess one – sorry. Sorry. Go ahead, Kevin. Kevin D. Williams - Jack Henry & Associates, Inc.: Yeah. On the margin side, the other thing that I've talked about before is the timing of when we can get all the customers off one of the platforms because obviously when that happens, we'll be able to take a significant amount of cost out and that's not going to happen at the same time. So, we're not going to get all the customers off both platforms at the same time. So, there is going to be one quarter that's going to get a nice bump in margins because we're going to be able to take a significant amount of cost out for that one and then when we get all of the customers off of the other one, you're going to see a very nice bump in the margin. So, as Dave said, the timing is still about the same. We've been doing pretty good at maintaining our margins in the payments side because I will tell you, we've taken on a lot of costs for the additional labor to help with these migrations. And so far, we've managed to kind of offset those margins. We haven't seen quite the deprivation that I thought, but we got more cost coming on. And again, it comes down to the timing of when can we start getting new credit card customers on the new platform because that's new revenue that we've never sold before, so the faster we can start getting some of that and seeing that, which I'm not giving you any guidance there, but that will help also offset those margins as we move forward over the next 18 months or so.

And I guess one more question while I have you, the other interesting product that you guys, I think, have rolling out or you have a bunch of them, but the other one that we're focused on is the enterprise fraud product with the corporation SAS. I think that's targeted at larger banks and I'm wondering how are those conversations going, anything live there and are you seeing anything surprising in terms of – if the medium- and smaller-sized banks are also perking up on that. David B. Foss - Jack Henry & Associates, Inc.: Yeah. It's a good question because you're exactly right. So, we have a handful live. I think we have two or three live right now, but you're exactly right. We originally thought this was only going to be appealing to the largest banks in our core base. Knew there might be some interest in the credit union side of the house, but really no interest among smaller, either banks or credit unions, and it's been very different from that. There is a lot of demand around midsized and larger banks and a number of our credit unions. So that one I think is going to turn into a broader success than what we maybe originally thought. So, we've already signed 10 so far. We have two or three lives and we're pretty optimistic about that opportunity in the future.

Great. That's all I had, appreciate it. David B. Foss - Jack Henry & Associates, Inc.: Thanks, Brett.

Thank you. Our next question coming from the line of Joseph Foresi with Cantor Fitzgerald. Your line is open.

Hi. Can you talk about the deceleration in 4Q? What's causing the slowdown? And any color on termination fees and I guess some other color on 4Q? Kevin D. Williams - Jack Henry & Associates, Inc.: Well, term fees we expect to be flat in Q4. The slight deceleration in total revenue is just kind of comparable to Q4 last year. We try to be cautious with our guidance and we feel pretty solid. That 5% to 6% growth in Q4 is pretty much in line and we'll probably right on over into FY 2019, Joe.

Okay. And then just as we talk about FY 2019, I know you gave some color on the cash flows in I think 4Q and 1Q, but maybe could talk about your expectations for cash flows versus net income next year and also on the DSO side? Kevin D. Williams - Jack Henry & Associates, Inc.: Well, as far as cash flows, we have – we peaked in our cap software a year ago, we saw that came down a little bit last year. It's going to be – if we're on track, could be down a little bit this year. I think it's going to probably come down a little bit more next year. We don't have huge internal software developments going on. So, those are going to contribute to increased free cash flow. And then, obviously, the impact of the lower tax rates is going to drop straight to free cash flow as well. So, I think in FY 2019, tentatively, again, there's still a lot of moving parts, but I think in FY 2019 our free cash flow should get back up above our net income.

Got it. Okay. And then the last one for me, you mentioned the pickup in demand. Where we would most likely be able to see that? Would that come through your digital products, standard products or both, whether it be the insourcing to outsourcing move? I'm just wondering if there was an area where you thought you're most likely to see some upside, which area would that be in? Thanks. David B. Foss - Jack Henry & Associates, Inc.: Yeah, that's a good question. And it really is across the board. I will tell you so, for sure, digital, and we've talked about that a lot. We have an outstanding digital offering and the strategy that the customers are really zoning in on. So, digital is an opportunity. We do have – we've talked for many years about the in-to-out opportunities, customers moving from in-house to outsourcing. That's been a steady performer for us on the banking side for many years, but the credit union side there wasn't that much demand in the past. We've seen an uptick there. I highlighted it in my opening comments and then several of these new products that we rolled out. There was a reason why we focused on some of these new solutions like treasury management and like the card offering and certainly demand in those areas as well. So I'd say it's across the board as far as ongoing demand.

Great. Thank you. David B. Foss - Jack Henry & Associates, Inc.: Yeah.

Thank you. Our next question coming from the line of David Koning with Baird. Your line is now open. David J. Koning - Robert W. Baird & Co., Inc.: Yeah. Hey, guys. Nice job, again. David B. Foss - Jack Henry & Associates, Inc.: Thanks, Dave. David J. Koning - Robert W. Baird & Co., Inc.: Yeah. Hey, and so, I guess, on the payments side, you mentioned – I think you mentioned 11% growth ex-term and over 5% ex-term and Ensenta. I think the last couple of quarters were 4% to 5%. It was on a really tough comp last year too, so you accelerated on a tougher comp. Is there something you're doing specifically or is there something environmental? It seemed like Visa and MasterCard both accelerated really nicely in debit and maybe you're feeling some of that as well? David B. Foss - Jack Henry & Associates, Inc.: I don't know that it's – so I've talked about it before that our EPS business, which is our Enterprise Payment Solutions, the ACH origination business, as surprising as it is to me, in 2018, that business continues to grow and continues to perform well. So, obviously, that's a win. I think the growth in the card business was a little ahead of probably what might have been logical to expect and so that's continuing to perform well. Bill Pay is a steady performer for us, so there's no spike in any particular area. I wouldn't tie anything in particular to anything that's happening with debit with one of the card associations, but it's just across the board. Kevin D. Williams - Jack Henry & Associates, Inc.: The one thing I would throw out, Dave, and we talked about this a lot in the previous calls, two or three…

And our next question coming from the line of Peter Heckmann with D.A. Davidson & Company. Your line is open. Peter J. Heckmann - D. A. Davidson & Co.: Hey. Good morning, gentlemen. I had a couple of questions. This is maybe a little bit looking out a little longer term. On a theoretical basis, how do you feel about selling to FinTech disruptors, some, I'm reading a lot in American Banker as well some of the other publications about some of these new companies coming out offering a lightweight core maybe offering payment capabilities. On a theoretical basis, are you marketing to those or you view that as something that impacts negatively your target market of regular banks and credit unions? David B. Foss - Jack Henry & Associates, Inc.: Yeah. That's a good question, Pete. It's a fine line that we walk in that discussion. We're committed to the idea that we are not going to set ourselves up to be a competitor with our traditional customers. So with that in mind, where are those opportunities where we can maybe partner with a traditional customer to enable them with a FinTech. So, we are not – we are open to the idea instead of two negatives here. I'll say, we're open to the idea of working some of those partnerships. We have some of those discussions ongoing today, but we're very careful about the point of not positioning ourselves to compete with our traditional customers. And by the way, to your point about the lightweight core and being nimble and gathering online deposits, that's actually a topic in my discussion for next week because we are – we will be offering that type of solution to our customers with products that are solutions that we already have at…

Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to Mr. Kevin Williams for closing remarks. Kevin D. Williams - Jack Henry & Associates, Inc.: Thanks, Lydia (30:37). As Dave mentioned, I want to remind everyone that we are having our Annual Analyst Day next Monday afternoon at The Omni in Atlanta, which the afternoon presentations will be webcast. We're doing it just like we have in the past. We're going to have all of our Group Presidents: Greg Adelson, our GM of Payments; and our National Sales Manager, will all do presentations as well Dave and I and Mark Forbis, our CTO. There'll be open Q&A. And then in the evening, there will be a mini tech fair, where I believe we have six of our hotter products will all be shown there. So, we still got some open slots. If you want go, you can either email myself or Vance Sherard. So to wrap up, we're pleased with the results from our ongoing operations and the efforts of all of our associates to take care of our customers. I thank our associates for their hard work. Our executives, managers, and all our associates continue to focus on what is best for our customers and shareholders. I want to thank you again for joining us today. And Lydia (31:40), will you please now provide the replay number?

Yes, sir. Ladies and gentlemen, thank you again for participating in today's conference. This conference will be available for replay beginning today May 2, 2018 at 11:45 AM Eastern Standard Time until May 11, 2018 at 11:59 PM Eastern Standard Time. You may access the replay during that time by dialing the toll free number 1-800-585-8367 or the toll number 404-537-3406 and entering the access code 2578228. Again, those numbers are 1-800-585-8367 or 404-537-3406, access code 2578228. This does conclude the program and you may now disconnect. Everyone have a great day.