PADUCAH, Ky. (July 10, 2014) – Computer Services Inc. (CSI) announced that its board of directors approved a 37.5 percent increase in the quarterly cash dividend to $0.22 per share. The dividend is payable on Sept. 25, 2014, to shareholders of record as of the close of business on Sept. 2, 2014. The quarterly dividend increased from $0.16 per share and represents an indicated annual dividend rate of $0.88 per share on the new rate of $0.22 per share.
“We are pleased to announce a 37.5 percent increase in our cash dividend per share, highlighting our continued growth in revenues and net income,” said Chief Executive Officer Steven A. Powless. “This dividend marks our 43rd consecutive year of increasing our cash dividend. We are pleased with our long-term growth record and are optimistic about our future growth based on our solid base of recurring revenues, new market expansion and new product pipeline.
Board authorizes $5 million increase in stock repurchase program
CSI’s board of directors also authorized a $5 million increase in the company’s share repurchase program. The $5 million increase in the share repurchase program brings the total to $85 million since CSI’s share repurchase program initially was announced in March 2004. CSI has repurchased nearly $75 million of the company’s shares through the end of its first fiscal quarter ended May 31, 2014. The company had approximately $5.1 million remaining under existing stock purchase authorizations as of May 31, 2014. The share repurchase program may be carried out through open market purchases, block trades and in negotiated private transactions.
“We believe the board’s authorization of a $5 million increase in our share repurchase program highlights their confidence in the future of CSI. We believe CSI’s stock represents an attractive investment at current prices in light of our earnings growth, solid cash flow from operations and our strong capital position,” Powless said.
CSI, headquartered in Paducah, 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.