Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including without limitation, in Management's Discussion and Analysis of Financial Condition and Results of Operations. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements are identified at “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended June 30, 2017.2018. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

The condensed consolidated financial statements include the accounts of JHA and all of its subsidiaries, which are wholly-owned, and all intercompany accounts and transactions have been eliminated.

Comprehensive income for the three months ended September 30, 20172018 and 20162017 equals the Company’s net income.

The Company enters into contracts with customers that may include multiple types of goods and services. At contract inception, the Company assesses the solutions and services promised in its income statement,contracts with customers and identifies a performance obligation for each promise to transfer to the customer a solution or service (or bundle of solutions or services) that is distinct - that is, if the solution or service is separately identifiable from other items in the arrangement and if the customer can benefit from the solution or service on its own or together with other resources that are readily available. The Company recognizes revenue when or as it satisfies each performance obligation by transferring control of a solution or service to the customer.

Product delivery and services revenue is generated primarily from software licensing and related professional services and hardware delivery. Software licenses, along with any professional services from which they are not considered distinct, are recognized as they are delivered to the customer. Hardware revenue is recognized upon delivery. Professional services that are distinct are recognized as the services are performed. Deconversion fees are also included within Product delivery and services, and are considered a changecontract modification. Therefore, the Company recognizes these fees over the remaining modified contract term.

In-house support revenue is generated from software maintenance for ongoing client support and software usage, which includes a license and ongoing client support. The Company’s arrangements for these services typically require the Company to “stand-ready” to provide specific services on a when and if needed basis. The fees for these services may be fixed or variable (based upon performing an unspecified quantity of services). Software maintenance fees are typically billed to the customer annually in advance and recognized ratably over the segment structure (see Note 9),maintenance term. Software usage is typically billed annually in order to more clearly alignadvance, with the way management manageslicense delivered and recognized at the outset, and the maintenance fee recognized ratably over the maintenance term. Accordingly, the Company utilizes the practical expedient which allows entities to disregard the effects of a financing component when the contract period is one year or less.

The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 9, Reportable Segment Information, for disaggregated revenue by type and evaluates performance. Amountsreportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue.

Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets.  Accumulated depreciation at September 30, 20172018 totaled $356,559$372,059 and at June 30, 20172018 totaled $345,014.$364,153.

Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years.  Accumulated amortization of intangible assets totaled $527,487$630,161 and $503,653$602,479 at September 30, 20172018 and June 30, 2017,2018, respectively.

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At September 30, 2017,2018, there were 25,96226,108 shares in treasury stock and the Company had the remaining authority to repurchase up to 4,0293,883 additional shares. The total cost of treasury shares at September 30, 20172018 is $1,036,292.$1,055,260. During the first three months of fiscal 2018,2019, the Company repurchased 302no treasury shares for $30,018.shares. At June 30, 2017,2018, there were 25,66026,108 shares in treasury stock and the Company had authority to repurchase up to 4,3303,883 additional shares.

The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission ("SEC") and in accordance with accounting principles generally accepted in the United States of America applicable to interim condensed consolidated financial statements, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes, which are included in its Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended June 30, 2017.2018. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements included in its Form 10-K for the fiscal year ended June 30, 2017.2018, with updates to certain policies included in this Note 1.

In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly the financial position of the Company as of September 30, 2017,2018, the results of its operations for the three months ending September 30, 20172018 and 2016,2017, and its cash flows for the three months ending September 30, 20172018 and 2016.2017. The condensed consolidated balance sheet at June 30, 20172018 was derived from audited annual financial statements, but does not contain all of the footnote disclosures from the annual financial statements.

The results of operations for the periodthree months ended September 30, 20172018 are not necessarily indicative of the results to be expected for the entire year.

NOTE 2.    FAIR VALUE OF FINANCIAL INSTRUMENTS2: RECENT ACCOUNTING PRONOUNCEMENTS

The Company previously recognized software license and short-term borrowings,related services within the scope of ASC Topic 985-605, which required the establishment of vendor-specific objective evidence (“VSOE”) of fair values approximate carrying value basedin order to separately recognize revenue for each software-related good or service. Due to the inability to establish VSOE, the Company had previously deferred all revenue on software-related goods and services on a master contract until all the goods and services had been delivered. Under ASC 606, VSOE is no longer required for separation of otherwise distinct performance obligations within a revenue arrangement. This change has resulted in earlier recognition of revenue for the Company’s software-related goods and services, leading to a decrease in deferred revenue balances within our adjusted condensed consolidated balance sheets.

The following tables summarize the impacts of ASC 606 adoption on the short-termCompany’s Condensed Consolidated Financial Statements:

In August of 2018, the FASB issued ASU No. 2018-15, Intangibles, Goodwill and Other - Internal-Use Software (Subtopic 350-40), which broadens the scope of Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The costs are capitalized or expensed depending on the nature of the assets and liabilities.

The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers in May 2014. This standard is part of an effort to create a common revenue standard for U.S. generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). The new standard will supersede muchCompany's estimates of the existing authoritative literaturefair value for revenue recognition.financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The new model enacts a five-step process for achievingframework is based on the core principle, which isinputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that an entity should recognize revenue to depictobservable inputs be used in the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB also issued ASU No. 2015-14 which deferred the effective datevaluations when available. The three levels of the new standard by one year, but allows early application as of the original effective date. We do not intend to adopt the provisions of the new standard early, so the standard and related amendments will be effective for the Company for its annual reporting period beginning July 1, 2018, including interim periods within that reporting period. In March 2016, the FASB issued ASU No. 2016-08, which addresses principal versus agent considerations under the new revenue standard. Additional guidance, including ASU No. 2016-10, ASU No. 2016-12, and ASU No. 2016-20, also addresses specific aspects of the new standard and are being considered. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect as of the beginning of the period of adoption.

Fair value of financial assets, included in cash and implementation revenue on our multi-element arrangements. Under the current standard, licensecash equivalents, and implementation revenue on these arrangementsfinancial liabilities is often recognized over the maintenance periodas follows:

The effective tax rate was 31.2%19.2% of income before income taxes for the quarter ended September 30, 2017,2018, compared to 31.9%31.1% for the same quarter in fiscal 2017.2018. The significant decrease to the Company's tax rate was primarily due to the reduction in the U.S. federal income tax rate from 35% to 21% due to tax reform enacted December 22, 2017, as well as the increase in excess tax benefits from share-based payments in the first quarter of fiscal 2019.

The Company has recognized provisional amounts for tax reform items in its annual and interim financial statements for each reporting period since the enactment of the Tax Cuts and Jobs Act ("TCJA") on December 22, 2017, in accordance with Staff Accounting Bulletin 118 ("SAB 118"). The staff of the U.S. SEC has recognized the complexity of reflecting the impacts of the TCJA and on December 22, 2017, issued guidance in SAB 118. The guidance clarifies accounting for income taxes under ASC 740 if information is not available or complete and provides for up to a one-year period in which to complete the required analyses and accounting.  As the amounts are finalized during the measurement period, the required adjustments, if any, will be recorded in the quarter when the final amount is determined. No adjustments were recorded in the three months ended September 30, 2018.

The Company paid income taxes of $388 and received refunds of $679 for the three months ended September 30, 2018. For the three months ended September 30, 2017, the Company paid income taxes, net of refunds, of $747 and $1,446 in the three months ended September 30, 2017 and 2016, respectively.$747.

At September 30, 2017,2018, the Company had $5,660$11,065 of gross unrecognized tax benefits, $4,188$10,188 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,051$1,413 and $1,304$1,051 related to uncertain tax positions at September 30, 20172018 and 2016,2017, respectively.

The U.S. federal and state income tax returns for fiscal year 20142015 and all subsequent years remain subject to examination as of September 30, 20172018 under statute of limitations rules. We anticipate potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $500 - $1,500 within twelve months of September 30, 2017.2018.

Our operating income for the three months ended September 30, 2018 and 2017 included $1,771 and 2016 included $1,513 and $1,197 of stock-based compensation costs, respectively.

On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its employees and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000. For stock options, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant.

The Company previously issued options to outside directors under the 2005 Non-Qualified Stock Option Plan (“2005 NSOP”). No additional stock options may be issued under this plan.

The Company issues both share awards and unit awards under the 2015 EIP, and previously issued these awards through the 2005 Restricted Stock Plan. The following table summarizes non-vested share awards as of September 30, 2017,2018, as well as activity for the three months then ended:

The Company utilized a Monte Carlo pricing model customized to the specific provisions of the Company’s plan design to value unit awards subject to performance targets on the grant dates. The weighted average assumptions used in this model to estimate fair value at the measurement date and resulting values for 8139 unit awards granted in fiscal 20182019 are as follows:

The following table reflects the reconciliation between basic and diluted earnings per share.

On August 31, 2017, the Company acquired all of the equity interest of Vanguard Software Group, a Florida-based company specializing in the underwriting, spreading, and online decisioning of commercial loans, for $10,744 paid in cash. This

Company's ProfitStars® Lending Solutions Group expands functionality offered to clients, allowing for near-real-time communication with Jack Henry and Associates'JHA's core processing and ancillary solutions, and also enhances cross-sell opportunities.

Management has completed a preliminary purchase price allocation of Vanguard Software Group and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their preliminary fair values as of August 31, 2017 are set forth below:

The goodwill of $6,499 arising from this acquisition consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of Vanguard Software Group, together with the value of Vanguard Software Group's assembled workforce. The goodwill from this acquisition has been allocated to our Complementary segment and is expected to be deductible for income tax purposes.

Identifiable intangible assets from this acquisition consist of customer relationships of $2,234, computer software of $1,426, and other intangible assets of $535.$540. The weighted average amortization periodperiods for acquired customer relationships, computer software, and other intangible assets isare 15 years, 10 years, and 10 years, respectively.

Current assets were inclusive of cash acquired of $289. The fair value of current assets acquired included accounts receivable of $847. The gross amount of receivables was $847, none of which waswere expected to be uncollectible.

Costs incurred related to the acquisition of Vanguard Software Group were immaterial for the periods presented.

The Company's consolidated statements of income for the first quarter of fiscal 2019 included revenue of $525 and an after-tax net loss of $180 resulting from Vanguard Software Group's operations. For the first quarter of fiscal 2018, includedVanguard Software Group contributed revenue of $99 and an after-tax net loss of $115 resulting from Vanguard Software Group's operations.$127 to the Company's consolidated statements of income.

The accompanying consolidated statements of income for the three months ended September 30, 2018 and 2017 do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided.

The Company is a provider of integrated computer systems that perform data processing (available for in-house installations or outsourced services) for banks and credit unions. Beginning in the first quarter of fiscal 2018, JHA changed its reportable segment structure from two customer-centric segments, Bank and Credit Union, to four product-centric segments. The change was made based on the view of our Chief Executive Officer, who is also our Chief Operating Decision Maker, that the Company could be more effectively managed using a product-centric approach and was driven by the first budgetary process under his administration. He requested changes in reports he regularly reviews for the purposes of allocating resources and assessing performance.

The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast. Only revenue and costs of revenue are considered in the evaluation for each segment.

NOTE 10: SUBSEQUENT EVENTS

This discussion and analysis should be read in conjunction with the condensed consolidated financial statements and the accompanying notes to the condensed consolidated financial statements included in this Form 10-Q for the quarter ended September 30, 2017.2018.

Jack Henry & Associates, Inc. (JHA)("JHA") is a leading provider of technology solutions and payment processing services primarily for financial services organizations. Its solutions are marketed and supported through three primary brands. Jack Henry Banking® is a top provider of information and transaction processing solutions to USU.S. banks ranging from community banks to multi-billion dollar asset institutions.  Symitar® is a leading provider of information and transaction processing solutions for credit unions of all sizes.  ProfitStars® provides specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. JHA's integrated solutions are available for in-house installation and outsourced delivery.

In the first quarter of fiscal 2018,2019, total revenue increased 4%9%, or $14,906$31,259, compared to the same quarter in the prior year, despiteyear. Excluding a $5,789 decrease of $2,883 in deconversion fees. Excluding deconversion fees quarter-over-quarter, total revenue increased 6%.10% for the quarter.

Operating expenses increased 6%9% compared to the first quarter of fiscal 2018. Headcount increased 6% at September 30, 2018 compared to September 30, 2017, mainly dueleading to a 3% increase in headcount and increased salaries and benefits. ProvisionThis was partially due to the Ensenta acquisition, which occurred during the second quarter of fiscal 2018. Other reasons for the increase include: bonuses provided by the Company in response to the lower tax rate resulting from the Tax Cuts and Jobs Act ("TCJA"); increased amortization of capitalized software; higher direct cost of product, including costs related to our new card payment processing platform and faster payments incentives.

The TCJA lowered our effective income tax rate, which is the primary reason for the decrease in our provision for income taxes decreased 1%by 34% compared to the prior year quarter.

The increased revenue and above changes resulted in a 2%led to an increase in net income of 25% for the first quarter of fiscal 20182019 compared to the first quarter in fiscal 2017. Excluding deconversion fees from each period, net income increased 9%.2018.

A detailed discussion of the major components of the results of operations for the three months ending September 30, 20172018 follows. All dollar amounts are in thousands and discussionsDiscussions compare the current three months ending September 30, 20172018 to the prior yearyear's three months ending September 30, 2016.2017.

There was 3%9% growth in services and support revenue in the first quarter of fiscal 20182019 compared to the same quarter last year. Excluding a $2,883 reduction in deconversion fees, services and support revenue grew 11%. The increase was primarily due to increases in our outsourcing and cloud and in-house support revenue streams. The increased outsourcing and cloud revenue was partially driven by added revenue from Ensenta, supplemented by organic growth in hosting and data processing. The increased in-house support revenue was primarily due to higher software usage revenue, resulting mainly from the addition of new customers in the trailing twelve months.

Processing revenue increased 9% in the first quarter of fiscal 2019 compared to the same quarter last year, primarily due primarily to increased outsourcing and cloud revenue. Excluding deconversion fees from each period presented, services and support revenue grew 6%.

Cost of revenue for the first quarter of fiscal 20182019 increased 5%8% over the prior year, but remained consistent as a percentage of total revenue. Excluding costs related to deconversions and bonuses provided by the Company in response to the lower tax rate resulting from the TCJA, cost of revenue increased 7%. The increase was primarily due primarily to a 7% expansion in headcount at September 30, 2018 compared to September 30, 2017 driving increased salaries professional services,and benefits, partially due to the acquisition of Ensenta. Other factors contributing to the increase include higher direct costcosts of product, including spending related to our strategic partnership with First Data and PSCU to expand our credit and debit card platform, and increased amortization related to capitalized software. The Company continues to focus on cost management.

Research and development expensesexpense increased for the first quarter of fiscal 2019 primarily due to increased salary and personnel costs.costs driven by increased headcount at September 30, 2018 compared to a year ago, partially due to the acquisition of Ensenta. However, theythese expenses remained consistent with the prior year as a percentage of total revenue. Excluding the bonuses provided by the Company in response to the lower tax rate resulting from the TCJA, research and development expense increased 12%.

The 12%10% increase in selling, general and administrative expensesexpense in the current quarter was mainly due to increased commissions, benefit expenses,salaries, and professional services expenses duebenefits. Excluding bonuses provided by the Company in response to contracting with outside experts in our preparation for adoption of the new ASC 606 revenue standard.lower tax rate resulting from the TCJA, selling, general, and administrative expense increased 9%.

For the three months ended September 30, 2018, the Company did not dispose of any businesses. In the first quarter of fiscal 2018, we soldrecorded a gain totaling $1,705 related to the sale of our jhaDirect product line to Kristopher James Company, resulting in a gain of $1,705.line.

Interest income fluctuated due to changes in invested balances and yields on invested balances. Interest expense remained low for bothdecreased in the current and prior periods.

Net income increased 2%25% to $63,411,$83,551, or $0.82$1.08 per diluted share for the first quarter of fiscal 2018,2019, compared to $62,244,$66,870, or $0.79$0.86 per diluted share, in the same period of fiscal 2017,2018, resulting in a 3%25% increase in diluted earnings per share. Excluding deconversion fees from each period, net income increased 9%, and diluted earnings per share increased 12%.The lowered effective tax rate contributed to the large increase.

The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services,services; online and mobile bill pay solutions,solutions; ACH origination and remote deposit capture processing; and risk management products and services. The Complementary segment provides additional software and services that can be integrated with our Corecore solutions or used independently. The Corporate & Other segment includes hardware revenue and costs, as well as operating costs not directly attributable to the other three segments.

Revenue in the Core segment increased 10%8%, while cost of revenue increased 7%, for the three months ended September 30, 2017.2018. Excluding deconversion fees, from each period,which totaled $3,985 for the first quarter of fiscal 2019, compared to $7,080 for the first quarter of fiscal 2018, revenue in the Core segment increased 12%11%. The increased revenue increasein the Core segment was primarily relateddriven by increased in-house support revenue, resulting mainly from the addition of new software usage customers in the trailing twelve months, and higher outsourcing and cloud revenue due mostly to increased product delivery and services revenue being recognized as a result of terminations of pending products and services on certain bundled arrangements that have allowed for the release of revenue that was being deferred until contract completion. Another driver of the revenue increase was a 5% increase in Outsourcing and Cloud revenue.data processing. Cost of revenue declineddecreased 1% as a percentage of revenue.

Revenue in the Payments segment increased 1%9% for the first quarter of fiscal 20182019 compared to the equivalent quarter last fiscal year, despite a drop in deconversion fees for the current period.year. Excluding deconversion feesrevenue of $2,073 from eachthe first quarter payments segmentof fiscal 2019 and $3,099 from the first quarter of fiscal 2018, revenue increased 4%.10% in the Payments segment. The improvement in the currentmost recent quarter was primarily due to increased remittance revenue within the processing line, partially due to added revenue from Ensenta, and increased outsourcing and cloud revenue in the services and support line. Card processing also increased in the first quarter of fiscal 2019 compared to the prior year first quarter. Cost of revenue increased 15%, partially due to increased headcount and amortization expenses related to Ensenta, as well as increased spending related to our strategic partnership with First Data and PSCU to expand our credit and debit card platform.

Revenue in the Complementary segment increased 13% for the quarter, or 12% after excluding deconversion revenue from each period, which totaled $1,792 and card$527 for the quarters ended September 30, 2018 and 2017, respectively. The increase was driven by increases in all three categories of services and support revenue, as well as transaction and digital processing revenue. Cost of revenue increased 2%,5% for the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018, but remained consistentdeclined as a percentage of revenue.

Revenue in the Corporate and Other segment for the three months ended September 30, 20172018 decreased 5% mainly due to decreased hardware sales as well as a loss of revenue from our jhaDirect product line, which was sold during the second monthfirst quarter of the quarter.fiscal 2018. Revenue classified in the corporateCorporate and otherOther segment includes revenue from hardware and other products not specifically attributed to any of the other three segments. Revenue within this segment is expected to be lower in fiscal 2018 compared to fiscal 2017 due to the sale of the jhaDirect product line in the first quarter of fiscal 2018. For the full fiscal year 2017, revenue from jhaDirect totaled $6,536.

Cost of revenue for the Corporate and Other segment includes operating cost not directly attributable to any of the other three segments. The increased cost of revenue is primarily related to increased salary and benefit costs and higher licenses and fees in the first quarter of fiscal 2018 compared2019 is primarily related to bonuses provided by the Company in response to the same quarter of fiscal 2017.lower tax rate resulting from the TCJA.

Cash provided by operating activities increased 4%6% compared to the same period last year. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, and for capital expenditures.

Cash used in investing activities for the first three months of fiscal 20182019 totaled $40,285$52,263 and included: $22,976$26,669 for the ongoing enhancements and development of existing and new product and service offerings; $10,455, net of cash acquired, for the purchase of Vanguard Software Group; capital expenditures on facilities and equipment of $3,708;$24,001; and $3,452$1,626 for the purchase and development of internal use software. This was partially offset by $200 of proceeds from the sale of jhaDirect, and $106$33 of proceeds from asset sales. Cash used in investing activities for the first three months of fiscal 20172018 totaled $31,901$40,285 and included $20,237$22,976 for the development of software,software; $10,455 for the acquisition of Vanguard Software Group; capital expenditures of

Financing activities used cash of $109,162$11,039 for the first three months of fiscal 2018.2019, all of which was net cash outflow from the issuance of stock and tax related to stock-based compensation. Financing activities used cash in the first three months of fiscal 2018 totaling $109,162. Cash used was $50,000 for repaymentrepayments on or our revolving credit facility,borrowings, $30,018 for the purchase of treasury shares, dividends paid to stockholders of $23,904, and $5,240 net cash outflow from the issuance of stock and tax related to stock-based compensation. Financing activities used cash in the first three months of fiscal 2017 of $87,261. Cash used was $61,338 for the purchase of treasury shares, dividends paid to stockholders of $21,857, repayments on capital leases of $200, and $3,866 net cash outflow from the issuance of stock and tax related to stock-based compensation.

The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $3,708$24,001 and $8,113$3,708 for the three months ending September 30, 20172018 and September 30, 2016,2017, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 20182019 are not expected to exceed $60,000$50,000 and will be funded from cash generated by operations.

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At September 30, 2017,2018, there were 25,96226,108 shares in treasury stock and the Company had the remaining authority to repurchase up to 4,0293,883 additional shares. The total cost of treasury shares at September 30, 20172018 is $1,036,292.$1,055,260. During the first three months of fiscal 2018,2019, the Company repurchased 302no treasury shares for $30,018.shares. At June 30, 2017,2018, there were 25,66026,108 shares in treasury stock and the Company had authority to repurchase up to 4,3303,883 additional shares.