3rd Quarter 2016 Earnings Up 8% at Cass Information Systems, Inc.
Raises Dividend by 5%; Restores Share Buyback Program Capacity to 500,000
3rd Quarter | YTD | |||||||||||||||||||||||||||||||
2016 | 2015 |
% |
2016 | 2015 |
% |
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Transportation Dollar Volume | $5.9 billion | $6.1 billion | (4.5) | $17.1 billion | $18.7 billion | (8.7) | ||||||||||||||||||||||||||
Facility Expense Dollar Volume* |
$3.3 billion | $3.2 billion | 4.4 | $8.9 billion | $8.9 billion | (0.2) | ||||||||||||||||||||||||||
Revenues | $31.6 million | $30.6 million | 3.4 | $93.4 million | $90.5 million | 3.1 | ||||||||||||||||||||||||||
Net Income | $6.2 million | $5.9 million | 5.8 | $17.9 million | $17.0 million | 5.6 | ||||||||||||||||||||||||||
Diluted Earnings per Share | $.55 | $.51 | 7.8 | $1.58 | $1.47 | 7.5 | ||||||||||||||||||||||||||
*Includes Energy, Telecom and Waste |
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2016 3rd Quarter Recap
The increase in revenue and net income of 3% and 6%, respectively, was primarily the result of the continued growth of the company’s customer list in each of its markets along with the development and expansion of new revenue-generating services. These successes overcame persistent economic headwinds and a significant investment in technology and infrastructure required to support this expansion.
A particularly bright spot of Cass’ third quarter performance was the substantial increase in facility related transactions (electricity, gas, waste and telecom expense management), which grew 16%. New customer acquisition, including several large accounts that switched from competitors, was the primary driver of the increase. Facility expense dollar volume was also up for the quarter.
In the transportation market, new accounts boosted transaction volume, but multiple factors continued to challenge dollar volume growth. A continuing impediment was declining activity from existing customers, especially those involved in oil and gas production. Transportation sector dollar volume was also retarded by lower fuel prices which reduced average invoice amounts. The decrease in dollar volume generated smaller investable balances that reduced investment income, and more significantly, lowered fees from carrier services.
Consolidated operating expenses were up
“Although economic challenges, in particular low interest rates and
depressed volume from existing transportation sector clients continue to
persist, our ability to add new accounts and expand our service lines
demonstrates the value of our services,” said
Nine-Month 2016 Recap
For the nine-month period ended
Consolidated operating expenses were up 3%, or
5% Increase in Cash Dividend
On
Additionally, after repurchasing more than 210,000 shares of common stock in the past 12 months, the board voted to restore the capacity of the company’s stock repurchase program to 500,000 shares.
“Our history of dividend payments combined with the return of nearly
About
Note to Investors
Certain matters set forth in this news release may contain
forward-looking statements that are provided to assist in the
understanding of anticipated future financial performance. However,
such performance involves risks and uncertainties that may cause actual
results to differ materially from those in such statements. For a
discussion of certain factors that may cause such forward-looking
statements to differ materially from the company’s actual results, see
the company’s reports filed from time to time with the
Selected Consolidated Financial Data |
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The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended September 30, 2016 and 2015: |
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Quarter |
Quarter |
Nine Months |
Nine Months |
|||||||||||||
Transportation Invoice Volume | 8,898 | 8,626 | 25,786 | 25,720 | ||||||||||||
Transportation Dollar Volume | $ | 5,864,716 | $ | 6,140,747 | $ | 17,107,723 | $ | 18,739,375 | ||||||||
Facility Expense Transaction Volume | 6,034 | 5,202 | 16,989 | 15,264 | ||||||||||||
Facility Expense Dollar Volume | $ | 3,301,049 | $ | 3,162,787 | $ | 8,882,181 | $ | 8,901,907 | ||||||||
Payment and Processing Fees | $ | 21,737 | $ | 19,781 | $ | 62,162 | $ | 58,898 | ||||||||
Net Investment Income | 9,480 | 9,083 | 29,250 | 27,326 | ||||||||||||
Gain on Sales of Securities |
-- |
1,271 | 387 | 2,910 | ||||||||||||
Other | 411 | 462 | 1,561 | 1,376 | ||||||||||||
Total Revenues | $ | 31,628 | $ | 30,597 | $ | 93,360 | $ | 90,510 | ||||||||
Salaries and Benefits | $ | 18,319 | $ | 17,761 | $ | 54,267 | $ | 52,630 | ||||||||
Occupancy | 860 | 872 | 2,560 | 2,565 | ||||||||||||
Equipment | 1,124 | 1,067 | 3,289 | 3,208 | ||||||||||||
Other | 3,248 | 2,934 | 9,410 | 9,179 | ||||||||||||
Total Operating Expenses |
$ | 23,551 | $ | 22,634 | $ | 69,526 | $ | 67,582 | ||||||||
Income from Operations before Income Taxes | $ | 8,077 | $ | 7,963 | $ | 23,834 | $ | 22,928 | ||||||||
Income Tax Expense | 1,855 | 2,083 | 5,910 | 5,961 | ||||||||||||
Net Income | $ | 6,222 | $ | 5,880 | $ | 17,924 | $ | 16,967 | ||||||||
Basic Earnings per Share | $ | .56 | $ | .52 | $ | 1.61 | $ | 1.49 | ||||||||
Diluted Earnings per Share | $ | .55 | $ | .51 | $ | 1.58 | $ | 1.47 | ||||||||
Average Earning Assets | $ | 1,351,638 | $ | 1,234,469 | $ | 1,301,279 | $ | 1,235,403 | ||||||||
Net Interest Margin | 3.19% | 3.36% | 3.32% | 3.39% | ||||||||||||
Allowance for Loan Losses to Loans | 1.56% | 1.77% | 1.56% | 1.77% | ||||||||||||
Non-performing Loans to Total Loans | .19% | .47% | .19% | .47% | ||||||||||||
Net Loan (Recoveries) / Charge-offs to Loans |
-- |
-- |
(.01%) |
-- |
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Provision for Loan Losses |
$ |
-- |
$ |
-- |
$ | (1,000) |
$ |
-- |
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View source version on businesswire.com: http://www.businesswire.com/news/home/20161020005192/en/
Source:
Casey Communications, Inc.
Kenn Entringer, 314-721-2828
kentringer@caseycomm.com