CSI Reports Record Third Quarter Revenues; Cash Dividend Paid.Business Editors PADUCAH, Ky.--(BUSINESS WIRE)--Dec. 28, 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 for the third quarter ended November 30, 2000. The Company also announced it paid a cash dividend of $0.16 per share on December 26, 2000, to stockholders of record as of December 1, 2000. "CSI posted a 37% increase in third quarter revenues to $15.5 million compared with last year, our fourteenth consecutive quarter of higher revenues," stated President and Chief Executive Officer Steven A. Powless. "Our growth was due to continued demand for our 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 and the contribution from First Commerce Technologies (CSI-West) which we acquired August 31, 2000. The CSI-West transaction adds 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 and significantly expands our base of bank processing centers. "As expected, our 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. increased in the third quarter, primarily due to the CSI-West acquisition," continued Mr. Powless. "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. was $1.9 million compared with $2.2 million in the third quarter last year and reflected the higher expense levels associated with CSI-West. We are working quickly to integrate the CSI-West operations, personnel and products into CSI and expect the acquisition to be accretive to our earnings before the end of fiscal 2002." Third Quarter Results Third quarter consolidated revenues rose to $17.5 million compared with $12.8 million for the third quarter ended November 30, 1999. Internal growth from existing operations added $1.0 million in revenues, primarily from imaging and EFT services. CSI also benefited from strong growth in eBusiness services, including 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 ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). products. The CSI-West operations added $3.2 million in third quarter revenues. Third quarter operating income was down 12.6% to $1.9 million, reflecting a 46.6% increase in operating expenses to $15.6 million, the result of higher expenses related to the addition of CSI-West's operations and certain one-time expenses related to the CSI-West acquisition. Net income for the third quarter was $1.2 million, or $0.53 per 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. share, compared with net income of $1.3 million, or $0.59 per diluted share, in the third quarter of fiscal 2000. CSI's third quarter net income was down from the same quarter last year primarily due to the increased costs associated with the CSI-West acquisition. Year-to-Date Results Nine-month year-to-date consolidated revenues were $45.0 million, an increase of 17.4% from $38.3 million reported for the same period ended November 30, 1999. Operating income was up 13.5% to $6.9 million compared with $6.1 million for the same period 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 $7.3 million, an increase of 17.8% from $6.2 million for the first nine months of fiscal 2000. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern margins improved slightly to 16.3% compared with 16.2% for the same period last year. CSI's year-to-date margins declined from earlier in the year primarily due to the inclusion of CSI-West. CSI Repurchases 283,000 Shares CSI repurchased 283,000 shares of its common stock from stockholders in a redemption offer closed effective December 18, 2000. "The redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. of $30 per share highlights our Board of Directors' view that CSI's stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. in the market and represents a solid investment for the future," continued Mr. Powless. "The offer was oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. by about 70% compared with our original announcement to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 166,000 shares. Our Board elected to extend the redemption to all the shares tendered to accommodate all stockholders. We remain very enthusiastic about the prospects for continued growth with the addition of CSI-West and through our core CSI products." About Computer Services, Inc. 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)
Third Quarter
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Nov. 30, Nov. 30,
2000 1999
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Revenues $17,531 $12,839
Expenses 15,623 10,656
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Operating income 1,908 2,183
Other income (expense) 173 77
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Income before taxes 2,081 2,260
Provision for income taxes 844 913
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Net income $1,237 $1,347
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Net income per share:
Diluted (a) $0.53 $0.59
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Weighted average number of
common shares outstanding:
Diluted 2,311 2,302
Nine Months Ended
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Nov. 30, Nov. 30,
2000 1999
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Revenues $44,994 $38,334
Expenses 38,112 32,268
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Operating income 6,882 6,066
Other income (expense) 453 162
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Income before taxes 7,335 6,228
Provision for income taxes 2,963 2,517
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Net income $4,372 $3,711
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Net income per share:
Diluted (a) $1.89 $1.61
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Weighted average number of
common shares outstanding:
Diluted 2,309 2,309
(a) Per share amounts adjusted for a 5% stock dividend issued on
December 13, 1999.
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