Steven A. Powless President and COO |
John A. Williams Chairmen and CEO |
This has been a great year for your company. This year's entire annual report is devoted to giving shareholders a deeper understanding of the ways in which value is being built in CSI. Our mission is to deliver state of the art technology and services to community banks. The speed of technological change and the dynamics of the banking industry bring with them the need for constant expansion of the services offered as well as expansion of the geography covered. Please read the detail narrative throughout this report to learn more about the scope of these activities during the past year and the plans for the future.
For the fiscal year ended February 28, 1998, we are pleased to report record revenues and earnings. Revenues grew in excess of 8% to $40.7 million from $37.6 million in fiscal 1997. Net income for the year was $4.7 million, or $2.23 per common share, compared to net income of $4.1 million, or $1.89 per common share, in fiscal 1997. This represents an increase of 15% and 18%, respectively.
In May of 1997, the Board of CSI approved management's recommendation to consider future expansion in non-contiguous geography. This action came after several months of studying the strengths of CSI as compared to the needs of the community banking industry. Through this study, it became evident that our long standing policy of restricting growth to contiguous geography was an inhibitor. You will see more non-contiguous growth in the future from CSI.
Another key strategic move occurred in May of 1997 when your Board authorized the repurchase of $2 million worth of CSI common stock. CSI has long been a National Quotation Bureau "Pink Sheet" listed stock, where you make an offer to buy and then obtain the shares when they are available. We are still a "Pink Sheet" listed stock, but during the past year, the brokerage firm of J.J.B. Hilliard, W.L. Lyons began making a market in CSI stock, where they are providing both the bid and ask price and making shares available at all times. You can now trade CSI shares at any time through your favorite broker by simply having your brokerage firm trader contact the trader at Hilliard Lyons who is making the market. For this system to be efficient to CSI shareholders, there must be those willing to sell as well as those willing to buy. Your Board is considering broadening the options for listing beyond the "Pink Sheets."
Your corporate staff is delighted to finally be in our new corporate headquarters. We will host a series of open house celebrations in May; one of which will be a special open house for shareholders and long-term customers on Monday evening, May 11, the night before our annual meeting. We do hope that you will make a special effort to join us for this event.
We are grateful for the support of long-term shareholders, a superb group of customers, and a talented team of CSI employees. Our thanks for the opportunity to work for and with all of you.
John A. Williams |
Steve A. Powless |
