CSI Reports Higher First Quarter Revenues and Earnings Per Share.Business Editors PADUCAH, Ky.--(BUSINESS WIRE)--July 10, 2001 Computer Services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. , Inc. (CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International ) (stock symbol:CSVI) today reported record revenues for the first fiscal quarter ended May 31, 2001. "CSI's first quarter revenues rose 34.6% to $18.3 million compared with last year as result of continued growth of our core business and the contribution from CSI West (acquired effective August 31, 2000 - formerly First Commerce Technologies, Inc.)," stated President and Chief Executive Officer Steven A. Powless. "We continue to experience strong demand from our EFT eft: see newt. (Electronic Funds Transfer) The transfer of money from one account to another by computer. See ACH. EFT - electronic funds transfer and check imaging services, as well as our eBusiness products. "Pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. rose 1% to $2.8 million and net income per share was up 9% to $0.80 compared with the first quarter of last year. First quarter profitability was dampened by a slow down in new bank conversions related to the economy and higher costs associated with the consolidation of CSI West. We are focused on reducing these costs to improve our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and expect the CSI West acquisition to be accretive to earnings by the third fiscal quarter of this year." First Quarter Results First quarter consolidated revenues rose 34.6% to $18.3 million compared with $13.6 million for the first quarter ended May 31, 2000. CSI's existing operations grew approximately 10.3%, and CSI West operations added $3.3 million in first quarter revenues. First quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose 7.9% to $2.9 million compared with $2.7 million in the first quarter of fiscal 2001. Pre-tax income rose only 1% to $2.8 million as a result of increased interest costs related to short-term borrowings. CSI expects to pay off the short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. by fiscal year end as a result of strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . Net income declined 1.6% in the first quarter to $1.65 million compared with net income of $1.67 million in the first quarter of fiscal 2001 due to a higher tax rate in the latest quarter. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. income per share rose 9.0% to $0.80 in the first quarter of fiscal 2002 on 10.3% fewer average weighted shares outstanding compared with the first quarter of fiscal 2001. The decline in average weighted shares outstanding was due to the Company's repurchase of approximately 283,000 shares of its common stock in a program that closed effective December 18, 2000. About Computer Services, Inc. CSI products range from core banking products (Deposits, Loans and General Ledger General Ledger A company's accounting records. This formal ledger contains all the financial accounts and statements of a business. Notes: The ledger uses two columns: one records debits, the other has offsetting credits. ), to the CSI Passport(TM) family of products including Desktop for account inquiries and maintenance, Teller TELLER. An officer in a bank or other institution. He is said to take that name from tallier, or one who kept a tally, because it is his duty to keep the accounts between the bank or other institution and its customers, or to make their accounts tally. , Account Reconciliation, Platform for new accounts, Loan Collector, and Balancer to streamline internal balancing. CSI also provides a complete line of Imaging and EFT services. The Company's dedication to the rapidly growing Internet market is reflected not only in Internet Banking, but also in information portal solutions, secure web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. and other eBusiness products and services. For more information on CSI, visit our website: www.csiweb.com. All statements except historical statements contained herein constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ." These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside of CSI's control, which may cause actual results to differ materially from such statements. Such risks and uncertainties include, but are not limited to, economic, competitive, technological and governmental factors affecting the Company's operations, markets, services, products, prices and other factors.
COMPUTER SERVICES, INC.
Financial Highlights (Unaudited)
(In thousands, except per share amounts)
First Quarter
Ended May 31,
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2001 2000
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Revenues $ 18,305 $ 13,600
Expenses 15,434 10,940
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Operating income 2,871 2,660
Other income (42) 142
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Income before taxes 2,829 2,802
Provision for income taxes 1,183 1,129
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Net income $ 1,646 $ 1,673
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Net income per share:
Diluted $ 0.80 $ 0.73
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Weighted average number of common
shares outstanding:
Diluted 2,069 2,306
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