CSI Board Authorizes $10 Million Addition to Share Repurchase Program

Rhea-AI Summary

Computer Services, Inc. (CSI) (OTCQX: CSVI) has authorized a $10 million increase to its share repurchase program, bringing the total to $120 million since its inception in 2004. The decision reflects the Board's confidence in the company's future, supported by strong earnings growth and cash flow. Additionally, CSI declared a special dividend of $1.00 per share, underscoring its commitment to shareholder value. CSI plans to utilize its robust cash flow to enhance its infrastructure, technology, and pursue strategic acquisitions.

Positive

• Authorized a $10 million increase in the share repurchase program, totaling $120 million.
• Declared a special dividend of $1.00 per share, enhancing shareholder value.
• Strong cash flow supports future infrastructure and technology investments.

Negative

• None.

Computer Services, Inc. (CSI) (OTCQX: CSVI), a provider of end-to-end fintech and regtech solutions, announced that its Board of Directors authorized a $10.0 million increase in the Company’s share repurchase program.

“CSI’s Board of Directors approved a $10.0 million increase in our share repurchase program, highlighting their confidence in the future of the Company,” said Steve Powless, CSI’s chairman and CEO. “We believe CSI’s stock represents an attractive investment at current prices in light of our earnings growth, solid cash flow from operations and strong capital position.”

The $10.0 million increase in the share repurchase program brings the total to $120.0 million since CSI’s share repurchase program was initially announced in March 2004. CSI has repurchased approximately $106.0 million of the Company’s shares as of the close of its second fiscal quarter, ended August 31, 2020. The Company had approximately $4.0 million remaining under existing stock purchase authorizations as of August 31, 2020. The share repurchase program may be carried out through open market purchases, block trades and in negotiated private transactions.

“Our Board of Directors recently declared a $1.00 per share special dividend and believe our cash dividend and stock repurchase programs are important to building long-term shareholder value. We also remain focused on using our strong cash flow and financial position to invest in CSI’s infrastructure, technology and people, and make strategic acquisitions to support our long-term growth strategy,” concluded Powless.

About Computer Services, Inc.

Computer Services, Inc. (CSI) delivers innovative financial technology and regulatory compliance solutions to financial institutions and corporate customers across the nation. Through a combination of expert service, cutting-edge technology and a customer-first mentality, CSI excels at driving businesses forward in a rapidly changing industry. CSI’s expertise and commitment to authentic alliances has resulted in the company’s inclusion in such top industry-wide rankings as the FinTech 100, American Banker’s Best Fintechs to Work For 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; (iii) risk factors affecting the United States economy generally including without limitation acts of terrorism, military actions including war, and viral epidemics and pandemics that alter human behaviors, including the COVID-19 pandemic and its effect on our business operations and financial results; (iv) increasing domestic and international regulation imposing burdensome requirements regarding the privacy of consumer data especially consumer financial transaction data of which CSI possesses substantial quantities; and (v) other factors discussed in CSI's Annual Reports, Quarterly Reports, news releases and other documents posted from time to time on the OTCQX website (www.otcmarkets.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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201215005253/en/

FAQ

What is the total amount authorized for CSI's share repurchase program?

The total amount authorized for CSI's share repurchase program is now $120 million.

What was the recent special dividend declared by Computer Services, Inc.?

CSI declared a special dividend of $1.00 per share.

Why did CSI increase its share repurchase program by $10 million?

CSI increased its share repurchase program by $10 million to demonstrate confidence in the company's future and recognize the attractiveness of its stock at current prices.

How much of CSI's shares have been repurchased as of August 31, 2020?

As of August 31, 2020, CSI has repurchased approximately $106 million of its shares.

What is the purpose of CSI's share repurchase and dividend programs?

CSI's share repurchase and dividend programs aim to build long-term shareholder value.