Page 4 - 2020 CU Solutions Group Annual Shareholder Report

CEO’S REPORT, DAVE ADAMS

While we can briefly celebrate another successful year for CU Solutions
Group in 2019, our focus in this report is on how CUSG is doing a strategic
reset in light of the COVID-19 economy, as well as on changes to the CUSG
Sprint partnership.
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In 2019, CUSG grew total revenue by 11.6 percent strong dividends. The CUSG audited financial state-
and reduced operating expenses by 9 percent. This ments show the company’s balance sheet is strong
allowed the company to take a one-time impair- as well. Shareholders’ equity grew by 7.9 percent
ment of goodwill associated with prior acquisition to $73.9 million. Assets are highly liquid with over
of a company called CU Wallet. These factors put $55 million in marketable securities. This has en-
net operating income at $295,763, well below the abled CUSG to invest in businesses such as HRN,
$4.4 million recorded in 2018. However, due to CUTS Performance Marketing, MemberXP, CU
unrealized gains on the company’s stock and bond Training and CU Risk Intelligence for the benefit of
portfolio, the company achieved net pre-tax in- shareholders and customers. Private company in-
come of $6.59 million, up 1.5 percent from 2018. vestments continue as a high priority.
After-tax income of $5.2 million allowed the com-
pany to pay a strong dividend of $209 per share, More important than the numbers, though, is the
making 2019 the ninth consecutive year for paying work of offering great solutions to credit unions in