CSI Reports Record Second Quarter Revenues and Profits; Cash Dividend Paid.Business Editors PADUCAH, Ky.--(BUSINESS WIRE)--Sept. 27, 2000 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 and net income for the second quarter ended August 31, 2000. The Company also announced it paid a cash dividend of $0.19 per share on September 25, 2000, to stockholders of record as of September 6, 2000. "CSI posted record revenues and profits for the thirteenth consecutive quarter," stated President and Chief Executive, Officer Steven A. Powless. "Revenues increased to $13.9 million as a result of strong sales of check imaging and EFT eft: see newt. (Electronic Funds Transfer) The transfer of money from one account to another by computer. See ACH. EFT - electronic funds transfer services. Net income grew 13.6% to $1.4 million, or $0.63 per share, as a result of CSI's higher revenue base, higher margin sales and continued expense control. "At the end of August, we completed the acquisition of First Commerce Technologies ("FCT FCT Faculdade de Ciências e Tecnologia (Portuguese University) FCT Fundamentals of Computation Theory FCT Fundação para a Ciência e a Tecnologia (Portuguese Science and Technology Foundation) "). We anticipate that FCT will add approximately $13 million in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue to CSI and will be accretive to CSI's earnings following an initial transition period. Since the acquisition was treated as a purchase for accounting purposes, FCT's results were not included in our second quarter operations." Second Quarter Results Second quarter consolidated revenues were $13.9 million, an increase of 5.0% from $13.2 million reported for the second quarter ended August 31, 1999. CSI had strong gains in imaging and EFT revenues for the second quarter. Check imaging revenues increased $405,000, or 76%, to $941,000 compared to the same period last year. CSI opened an imaging center in Chicago in August, for a total of seven imaging centers open at the end of the quarter. Two additional imaging centers are scheduled to open later this year. CSI also opened a service center in Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). in early June. EFT revenues increased $340,000, or 20%, over the second quarter 1999 to $2 million. The Company's newly launched eBusiness division added $160,000 in new revenues during the second quarter. The strong growth in imaging and EFT was somewhat offset by lower other revenues, equipment and supply sales and software revenues. Second 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 9.2% to $2.3 million compared with $2.1 million for the same period last year. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern margins improved to 17.7% compared with 16.4% for the same quarter last year. 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. was $2.5 million, an increase of 13.6% from $2.2 million reported for the second quarter last year. FCT Acquisition On August 31, CSI completed its acquisition of First Commerce Technologies. The transaction was accounted for as a purchase. CSI utilized substantially all of its cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. to acquire FCT; as a result, interest income is expected to be minimal for the remainder of fiscal 2001. CSI reported $307,000 in net interest income for the first six months of fiscal 2001. Although the Company's cash position was reduced by the FCT acquisition, CSI's cash flow remains strong; the Company does not expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. any long-term borrowings as a result of the acquisition. Year-to-Date Results Year-to-date consolidated revenues were $27.5 million, an increase of 7.7% from $25.5 million reported for the six months ended August 31, 1999. Operating income was up 28% to $5.0 million compared with $3.9 million for the same period last year. Pretax income was $5.3 million, an increase of 32% from $4.0 million for the first six months of fiscal 2000. Pretax margins improved to 19.1% compared with 15.6% for the same period last year. Mr. Powless continued, "Year-to-date banking revenues increased 8.9% to $24.2 million, primarily due to strong gains in imaging and EFT revenues. Imaging revenues, showing some moderation from the fast pace set through the first quarter of the year, increased $904,000, or 102%, from the same period last year. EFT revenues posted a $731,000 increase, or 23% ahead of a year ago. The eBusiness division, which did not exist a year ago, added $217,000 in new revenues for the six months ended August 31, 2000. "We continue to hold the line on operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. growth. Year-to-date operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $22.5 million, up 4.1% compared with last year. Approximately one-quarter of the increase was due to raising the current year profit-sharing accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for the inclusion of the former Computer Bank, Inc. ("CBI CBI abbr. cumulative book index CBI Confederation of British Industry CBI n abbr (= Confederation of British Industry) → C.E.O.E. ") employees in the CSI Profit Sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of Plan. Operating expenses before recognizing the accrual increased $641,000, or 3.0%, compared with the six months ended July 31, 1999," concluded Mr. Powless. CSI, the nation's premier community bank processor, serves nearly 600 community banks that have combined assets of over $40 billion in the states of Arkansas, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Michigan, Nebraska, New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , Ohio, Oklahoma, Tennessee, Texas, West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. and Wyoming. CSI's address on the World Wide Web is http://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)
Second Quarter
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Aug. 31, Aug. 31,
2000 1999
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Revenues $13,683 $13,204
Expenses 11,556 11,092
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Operating income 2,307 2,112
Other income (expense) 145 47
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Income before taxes 2,452 2,159
Provision for income taxes 990 872
------- -------
Net income $1,462 $1,287
======= =======
Net income per share:
Diluted (a) $0.63 $0.56
======= =======
Weighted average number of common
shares outstanding:
Diluted 2,310 2,312
Six Months Ended
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Aug. 31, Aug. 31,
2000 1999
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Revenues $27,463 $25,495
Expenses 22,489 21,612
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Operating income 4,974 3,883
Other income (expense) 280 85
------- -------
Income before taxes 5,254 3,968
Provision for income taxes 2,119 1,604
------- -------
Net income $3,135 $2,364
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Net income per share:
Diluted (a) $1.36 $1.02
======= =======
Weighted average number of common
shares outstanding:
Diluted 2,308 2,312
(a) Per share amounts adjusted for a 5% stock dividend issued on
December 13, 1999.
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