PADUCAH, Ky., Jan. 7, 2015 /PRNewswire/ -- Computer Services,
Inc. (CSI) (OTCQX: CSVI) today reported record revenues and
net income for the third quarter and nine months ended
November 30, 2014.
Logo- http://photos.prnewswire.com/prnh/20080418/CSILOGO
CSI's revenues grew 5.5% to $55.9
million for the third quarter of fiscal 2015 compared with
$53.1 million for the third
quarter of fiscal 2014. Net income rose 7.4% to $7.2 million for the third quarter of fiscal 2015
compared with $6.7 million in the
third quarter of fiscal 2014. Net income per share increased 8.5%
to $0.51 for the third quarter
of fiscal 2015 compared with $0.47
for the prior year's third quarter.
"CSI reported its 42nd consecutive quarterly growth
in revenues based on new customer activity, as well as on increased
sales and volumes from existing customers," stated Chief Executive
Officer Steven A. Powless. "We
also continued to benefit from high contract renewal rates from
existing customers that provide CSI with a solid base of recurring
revenues.
"We expect that fiscal 2015 will be another record year for
revenues and net income based on our expectations for the fourth
quarter. We believe CSI is positioned well to drive future
growth through our expanded sales and marketing programs. We
also invested $10.2 million in new
hardware and software during the first nine months of fiscal 2015
and expect these investments to support strongly our continued
growth next year," Powless continued.
During the third quarter, CSI's Board of Directors declared a
cash dividend of $0.22 per
share. The dividend was paid on December 26, 2014, to shareholders of record as
of the close of business on December 1, 2014.
Third Quarter Results
Consolidated revenues rose 5.5% to $55.9
million for the third quarter of fiscal 2015 compared with
$53.1 million in the third
quarter of fiscal 2014. Processing revenues rose 7.5% to
$35.5 million compared with
$33.1 million for the third
quarter of fiscal 2014. The growth in processing revenues was
driven primarily by the addition of new customers, cross-sales to
existing customers and increases in transaction volumes from
existing customers, partially offset by the effect of lost
business. Processing revenues included early contract
termination fees of $525,000 for the
third quarter and $2.2 million for
the first nine months of fiscal 2015 compared with $957,000 for the third quarter and $2.7 million for the first nine months of fiscal
2014.
"We are beginning to see increased rates of merger and
acquisition activity among community banks due to improved bank
earnings," stated Powless. "We expect our bank customers to
be active in this market in the coming year, resulting in both
increased fees as our customers acquire other banks and higher
early contract termination fees as customers are acquired by
non-CSI customer banks."
Other revenues rose 2.1% to $20.4
million compared with the third quarter of fiscal
2014. Other revenues benefited from growth in mobile and
Internet banking services, growth in homeland security and fraud
prevention services, higher eBusiness group revenues, and higher
forms and envelope revenue.
Operating income rose 7.7% to $11.9
million for the third quarter of fiscal 2015 compared with
$11.1 million for the third
quarter of fiscal 2014. Operating margin increased to 21.3%
in the third quarter of fiscal 2015 compared with 20.9% for the
third quarter of fiscal 2014. The increase in operating
margin was due primarily to increased sales and improved sales
mix.
Net income for the third quarter of fiscal 2015 rose 7.4% to
$7.2 million compared with
$6.7 million for the third quarter of
fiscal 2014. Net income per share increased 8.5% to
$0.51 for the third quarter of fiscal
2015 on 14.1 million weighted average shares outstanding compared
with $0.47 for the third quarter
of fiscal 2014 on 14.4 million weighted average shares outstanding.
Nine Months Results
Consolidated revenues for the first nine months of fiscal 2015
rose 4.6% to $166.1 million compared
with $158.8 million for the
first nine months of fiscal 2014. CSI's increase in revenues
benefited from a 4.4% increase in processing revenues and a 5.0%
increase in other revenues compared with the first nine months of
fiscal 2014.
Operating income rose 10.3% to $35.1
million for the first nine months of fiscal 2015 compared
with $31.8 million for the first
nine months of fiscal 2014. Operating margin increased to
21.1% in the first nine months of fiscal 2015 compared with 20.0%
in the first nine months of fiscal 2014.
Net income for the first nine months of fiscal 2015 rose 10.0%
to $21.1 million compared with
$19.2 million in the first nine
months of fiscal 2014. Net income per share increased 12% to
$1.49 for the first nine months
of fiscal 2015 compared with $1.33 for the first nine months of fiscal
2014.
"We continue to use our strong financial position and cash flow
to return a portion of our earnings to shareholders through our
cash dividend program and repurchases of CSI stock," Powless
said. "During the first nine months of fiscal 2015, we
returned $7.7 million to shareholders
in cash dividends and $5.1 million in
stock repurchases and redemptions. At the end of the third quarter,
CSI had $6.1 million available under
existing stock repurchase authorizations.
"CSI's cash flow from operations rose 4.1% to $31.0 million in the first nine months of fiscal
2015, and our cash position has more than doubled since last year
to $9.0 million. In addition,
we had no long-term debt at November 30,
2014," Powless concluded.
About Computer Services, Inc.
Computer Services, Inc. delivers core processing, managed
services, mobile and Internet solutions, payments processing, print
and electronic distribution, and regulatory compliance solutions to
financial institutions and corporate customers across the
nation. Exceptional service, dynamic solutions and superior
results are the foundation of CSI's reputation, and have resulted
in the company's inclusion in such top industry-wide rankings as
the FinTech 100, Talkin' Cloud 100 and MSPmentor Top 501 Global
Managed Service Providers List. CSI's stock is traded on
OTCQX under the symbol CSVI. For more information about CSI,
visit www.csiweb.com.
Forward-Looking Statements
This news release contains "forward-looking statements" as that
term is defined in the Private Securities Litigation Reform Act of
1995. All statements except historical statements contained
herein constitute "forward-looking statements." Forward-looking
statements are inherently uncertain and are based only on current
expectations and assumptions that are subject to future
developments that may cause results to differ materially.
Readers should carefully consider: (i) economic, competitive,
technological and governmental factors affecting CSI's operations,
customers, markets, services, products and prices; (ii) risk
factors affecting the financial services information technology
industry generally including, but not limited to, cybersecurity
risks that may result in increased costs for us to protect against
the risks, as well as liability or reputational damage to CSI in
the event of a breach of our security; and (iii) other factors
discussed in CSI's Annual Reports, Quarterly Reports, Information
and Disclosure Statements and other documents posted from time to
time on the OTCQX website (available either at www.otcmarkets.com
or www.otcqx.com), including without limitation, the
description of the nature of CSI's business and its management
discussion and analysis of financial condition and results of
operations for reported periods. Except as required by law or
OTC Markets Group, Inc., CSI undertakes no obligation to update,
and is not responsible for updating, the information contained or
incorporated by reference in this report beyond the publication
date, whether as a result of new information or future events, or
to conform this document to actual results or changes in CSI's
expectations, or for changes made to this document by wire services
or Internet services or otherwise.
COMPUTER SERVICES,
INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Income
|
(Unaudited)
|
(in thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
November 30,
|
|
Nine Months Ended
November 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Processing
revenues
|
$
35,525
|
|
$
33,050
|
|
$
105,119
|
|
$
100,677
|
Other
revenues
|
20,423
|
|
20,000
|
|
61,006
|
|
58,123
|
|
Total
revenues
|
55,948
|
|
53,050
|
|
166,125
|
|
158,800
|
Operating
expenses
|
44,016
|
|
41,973
|
|
131,066
|
|
127,013
|
|
Operating
income
|
11,932
|
|
11,077
|
|
35,059
|
|
31,787
|
Interest income
(expense), net
|
4
|
|
(7)
|
|
9
|
|
(30)
|
|
Income before income
taxes
|
11,936
|
|
11,070
|
|
35,068
|
|
31,757
|
Provision for income
taxes
|
4,745
|
|
4,373
|
|
13,940
|
|
12,544
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
7,191
|
|
$
6,697
|
|
$
21,128
|
|
$
19,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
$
0.51
|
|
$
0.47
|
|
$
1.49
|
|
$
1.33
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings per
|
|
|
|
|
|
|
|
|
common and common
equivalent share
|
14,123,737
|
|
14,365,593
|
|
14,174,986
|
|
14,498,017
|
COMPUTER SERVICES,
INC. AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11/30/2014
|
|
02/28/2014
|
|
11/30/2013
|
|
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 9,012
|
|
$ 1,078
|
|
$ 3,830
|
|
|
Accounts
receivable
|
24,822
|
|
25,962
|
|
23,035
|
|
|
Income tax
receivable
|
755
|
|
538
|
|
236
|
|
|
Prepaid expenses and
other current assets
|
11,238
|
|
9,628
|
|
7,812
|
|
|
|
Total current
assets
|
45,827
|
|
37,206
|
|
34,913
|
|
Property and
equipment, net
|
34,340
|
|
35,252
|
|
35,256
|
|
Software and software
licenses, net
|
18,676
|
|
17,963
|
|
17,270
|
|
Goodwill
|
|
60,115
|
|
60,115
|
|
60,115
|
|
Intangible
assets
|
7,309
|
|
8,264
|
|
8,592
|
|
Other
assets
|
18,000
|
|
16,120
|
|
10,792
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 184,267
|
|
$ 174,920
|
|
$ 166,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$ 23,222
|
|
$ 18,536
|
|
$ 17,527
|
|
|
Deferred
revenue
|
7,445
|
|
9,430
|
|
8,259
|
|
|
Notes
payable
|
-
|
|
7
|
|
16
|
|
|
|
Total current
liabilities
|
30,667
|
|
27,973
|
|
25,802
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
Deferred income
taxes
|
14,418
|
|
14,418
|
|
13,193
|
|
|
Other long-term
liabilities
|
1,158
|
|
1,198
|
|
1,145
|
|
|
|
Total long-term
liabilities
|
15,576
|
|
15,616
|
|
14,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
46,243
|
|
43,589
|
|
40,140
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Preferred stock;
shares authorized, 5,000,000; none issued
|
-
|
|
-
|
|
-
|
|
|
Common stock, no par;
shares authorized, 20,000,000 in fiscal 2015 and
|
|
|
|
|
|
|
|
|
2014; shares issued
and outstanding, 14,121,432 at November 30, 2014,
|
|
|
|
|
|
|
|
|
14,227,951 at
February 28, 2014, and 14,314,731 at November 30, 2013
|
21,415
|
|
20,316
|
|
20,389
|
|
|
Retained
earnings
|
116,609
|
|
111,015
|
|
106,409
|
|
|
|
Total shareholders'
equity
|
138,024
|
|
131,331
|
|
126,798
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 184,267
|
|
$ 174,920
|
|
$ 166,938
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/csi-reports-record-third-quarter-revenues-and-net-income-300016847.html
SOURCE Computer Services, Inc.