<PAGE> 1
EXHIBIT 20
Contact: T. Scott Cobb Mike J. Boling, CPA
Chief Executive Officer Executive Vice President and
901-754-6577 Chief Financial Officer
901-754-6577
SCB COMPUTER TECHNOLOGY REPORTS FIRST QUARTER RESULTS
------------------------------------
JACK R. BLAIR ELECTED CHAIRMAN OF THE BOARD
MEMPHIS, Tenn. (August 31, 2000) -- SCB Computer Technology, Inc. today
announced results for its first quarter ended July 31, 2000. Revenues for the
first quarter were $35.9 million compared with $44.0 million a year ago. Net
income for the quarter was $593,000, or $0.02 per share (diluted), compared with
$2,386,000, or $0.10 per share (diluted), in the first quarter last year. Net
income for the quarter ended July 31, 2000, included a net gain of $826,000, or
$0.03 per share (diluted), from the sale of a business unit.
Commenting on the results, T. Scott Cobb, chief executive officer,
said, "Results for the first quarter of fiscal 2001 were ahead of our plan. We
continue to take the necessary steps to position the Company for profitable
growth by focusing our efforts on SCB's core competencies. We are experiencing
good demand for professional services, with the number of billable employees
beginning to stabilize and the average hourly billing rate showing an increase
from the third and fourth quarters of fiscal 2000. We are optimistic about the
future of our company."
SCB also announced that Jack R. Blair has been elected to serve as its
non-executive Chairman of the Board. Mr. Blair replaces Ben C. Bryant, Jr. who
has retired from all of his positions with the Company, including as a director
of SCB. These actions are effective as of September 1, 2000. Mr. Bryant also
will not become a consultant to SCB as previously announced.
Mr. Blair, age 58, has been a director of SCB since December 14, 1999.
He previously was a Group President of Smith & Nephew plc (NYSE:SNN), a global
medical device company, from 1987 until his retirement in 1998, where his
responsibilities included all of the company's activities in North and South
America and Japan. He also was a member of the board of directors and continues
to serve as a consultant to Smith & Nephew plc. Mr. Blair is a director of
AdvaMed, a health industry manufacturers association; National Bank of Commerce;
and Bulab Holdings, Inc., the parent company of Buckman Laboratories, a
manufacturer of specialty industrial chemicals. He is active in several civic
organizations, including serving as a director of the Memphis Arts Council and
the Memphis/Shelby Crime Commission, a trustee of Rhodes College, and the
chairman of the board of trustees of Dixon Gallery and Gardens.
Mr. Cobb went on to say, "It has been a distinct pleasure to have known
and worked closely with Ben for over 25 years, and to have shared the vision of
building SCB. On behalf of the employees of SCB, I want to thank him for his
many years of dedicated service and wish him the very best in the future."
-MORE-
CORPORATE OFFICE
3800 Forest-Hill Irene Road, Suite 100, Memphis, TN 38125
(800) 221-1640 (901-754-6577 Fax (901) 754-8463 www.scb.com
<PAGE> 2
SCBI Reports First Quarter Results
Page 2
August 31, 2000
Mr. Blair said, "SCB's Board of Directors also extends its thanks and
appreciation to Ben for his leadership and efforts in bringing about this
management transition. Ben has made many contributions to the Company, and we
wish him well in his future endeavors."
Certain statements contained in this press release and related
statements by management may be deemed to be forward-looking statements. These
forward-looking statements involve a number of risks and uncertainties,
including those described in SCB's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to update this forward-looking
information except as required by law.
SCB Computer Technology, Inc. is a leading provider of information
technology management and technical services to Fortune 1000 companies, state
and local governments, and other large organizations. For additional
information, visit SCB=s home page at: http://www.scb.com
SCB COMPUTER TECHNOLOGY, INC.
FINANCIAL HIGHLIGHTS
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-------------------------------
7/31/00 7/31/99
------- -------
<S> <C> <C>
Revenue $ 35,946 $ 43,968
Cost of services 25,708 30,463
----------- ------------
Gross profit 10,238 13,505
SG&A expenses 9,605 8,679
----------- ------------
Income from operations 632 4,826
Total non-operating income (expense) 348 (845)
----------- ------------
Income before taxes 980 3,981
Income taxes 387 1,595
----------- ------------
Net income $ 593 $ 2,386
=========== ============
Net income per share:
Basic $ 0.02 $ 0.10
=========== ============
Diluted $ 0.02 $ 0.10
=========== ============
Weighted average of common and common
equivalent shares outstanding:
Basic 25,045,324 24,711,924
=========== ============
Diluted 25,045,324 24,762,648
=========== ============
</TABLE>
SELECTED BALANCE SHEET HIGHLIGHTS
<TABLE>
<CAPTION>
7/31/00 7/31/99
------- -------
<S> <C> <C>
Current assets $ 51,389 $ 59,101
Total assets $ 124,533 $ 146,824
Long-term debt $ 15,735 $ 44,084
Shareholders' equity $ 48,165 $ 56,944
</TABLE>
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