ENGLEWOOD, Colo., June 2 /PRNewswire-FirstCall/ -- CSG Systems
International, Inc. (Nasdaq: CSGS), a leading provider of customer care and
billing solutions, today provided information regarding the financial impact
of its successful offering of $230 million of 2 1/2% Senior Subordinated
Convertible Contingent Debt Securities, which closed today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020627/CSGSLOGO)
"The primary purpose of our convertible debt offering was to restructure
our debt so that we can aggressively invest in our growth opportunities while
maximizing shareholder return," Peter Kalan, chief financial officer for CSG
Systems said. "In addition, as a result of lower fixed interest rates on the
new debt and the concurrent stock repurchase, this transaction is accretive to
the company's earnings per share."
The Convertible Debt Securities will reduce interest expense by
approximately $400,000 for the second quarter of 2004, and by $1.2 million for
each quarter going forward. The concurrent stock repurchase of 2.1 million
shares has the impact of reducing the weighted-average shares outstanding for
the second quarter of 2004 by approximately 700 thousand shares and by
2.1 million for each quarter going forward. As a result, for the second
quarter of 2004, the change in interest expense along with the reduction in
diluted shares outstanding is expected to be accretive by one cent and is
expected to be accretive by approximately three cents per quarter going
forward.
With the issuance of the Convertible Debt Securities, CSG Systems has paid
off and terminated its senior debt facility. CSG Systems will incur a
one-time non-cash charge of approximately $6.6 million for the write-off of
deferred financing costs associated with the terminated senior debt facility.
This will have the effect of reducing earnings per diluted share by
approximately eight cents in the second quarter of 2004.
This information is being provided solely to indicate the financial impact
associated with the convertible debt offering to the earnings per diluted
share calculations for the existing and future quarters.
Additional Information
For additional information about CSG, please visit CSG's web site at
http://www.csgsystems.com. Additional information can be found in the Investor
Relations section of the web site.
About CSG Systems International
Headquartered in Englewood, Colorado, CSG Systems International
(Nasdaq: CSGS) is a leader in next-generation billing and customer care
solutions for the cable television, direct broadcast satellite, advanced IP
services, next generation mobile, and fixed wireline markets. CSG's unique
combination of proven and future-ready solutions, delivered in both outsourced
and licensed formats, empowers its clients to deliver unparalleled customer
service, improve operational efficiencies and rapidly bring new
revenue-generating products to market. CSG is an S&P Midcap 400 company. For
more information, visit our Web site at http://www.csgsystems.com.
This news release contains forward-looking statements as defined under the
Securities Act of 1933, as amended, that are based on assumptions about a
number of important factors and involve risks and uncertainties that could
cause actual results to differ materially from what appears in this news
release. These factors include, but are not limited to: 1) CSG's ability to
continue to perform satisfactorily and maintain good customer relations with
its two largest customers, Comcast and Echostar Communications, which combined
represent approximately 30 percent of the Company's revenue; 2) the continued
acceptance of CSG CCS/BP, CSG Kenan FX and their related products and
services; 3) CSG's ability to enhance current products and develop new
technology that will retain existing clients and capture new market share;
4) significant forays into new markets, which may prove costly and
unprofitable; 5) the degree to which CSG's expectations of market penetration
and consumer acceptance of broadband, wireline and wireless services prove
true -- and even if realized, CSG's ability to meet the billing and customer
care needs of that market; 6) client consolidation, which has decreased the
number of potential buyers for many of CSG's products and services; 7) CSG's
ability to expand and effectively operate its business internationally, which
is much more complex and carries a higher collections risk; 8) CSG's ability
to renew software maintenance contracts and sell additional software products
and services to existing and new clients, both domestically and
internationally; 9) CSG's ability to successfully deliver on lengthy and/or
complex implementation projects, which by their nature, carry much more risk;
and 10) CSG's ability to realize the expected savings from its cost reductions
programs, while simultaneously not jeopardizing its revenue opportunities.
This list is not exhaustive and readers are encouraged to review the
additional risks and important factors described in CSG's reports on Forms
10-K and 10-Q and other filings made with the SEC.
SOURCE CSG Systems International, Inc.
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Related links:
http://www.csgsystems.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020627/CSGSLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Liz Bauer, Senior Vice President of CSG
Systems, +1-303-804-4065, liz_bauer@csgsystems.com
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