Cass Information Systems, Inc. Reports 3rd Quarter 2013 Earnings
Boosts Cash Dividend by More Than 11%
3rd Quarter | YTD | |||||||||||||||||||||||||||||||
2013 | 2012 |
% |
2013 | 2012 |
% |
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Transportation Dollar Volume | $6.1 billion | $5.6 billion | 9.2% | $17.4 billion | $16.6 billion | 4.5% | ||||||||||||||||||||||||||
Facility Expense Dollar Volume* |
$3.2 billion | $3.0 billion | 8.8% | $8.6 billion | $8.3 billion | 3.7% | ||||||||||||||||||||||||||
Revenues | $29.1 million | $27.9 million | 4.1% | $86.7 million | $84.8 million | 2.3% | ||||||||||||||||||||||||||
Net Income | $6.1 million | $6.1 million | .8% | $18.2 million | $18.0 million | 1.6% | ||||||||||||||||||||||||||
Diluted Earnings per Share | $.53 | $.53 |
-- |
$1.57 | $1.56 | .6% | ||||||||||||||||||||||||||
*Includes Energy, Telecom and Environmental |
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2013 3rd Quarter Recap
Transaction volume, which generates fee income, increased in the transportation, telecom and environmental sectors despite a tepid economy. In the energy sector, even as new sales remain strong, recent competitor consolidation is affecting customer retention resulting in flat transaction volumes.
The detrimental effects of a historically low interest rate environment
that continues to erode the company’s net interest margin and undermine
earnings growth were evident in the period as Cass net investment income
declined
Operating expenses were up for the quarter due to increases in
processing volumes plus additional new business which resulted in higher
payroll expenses. Occupancy expenses increased due to the expansion of
the company’s processing facilities and new headquarters for
“As previously noted, while interest rates have been historically low
for five years, the impact on Cass is becoming more pronounced as
longer-term, higher-yielding assets re-price, mature or are sold,” said
Nine-Month 2013 Recap
For the nine-month period ended
Operating expenses were up 4%, or
Increases Cash Dividend by 11%
On
“This action of the board reflects the company’s strong capital base and solid performance,” said Brunngraber. Cass has continuously paid regularly scheduled cash dividends since 1934.
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, 2013 and 2012: |
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Quarter |
Quarter |
Nine Months |
Nine Months |
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Transportation Invoice Volume | 8,389 | 7,302 | 23,668 | 21,470 | |||||||||||||||||||||
Transportation Dollar Volume | $ | 6,113,332 | $ | 5,599,551 | $ | 17,398,391 | $ | 16,647,242 | |||||||||||||||||
Facility Expense Transaction Volume | 4,978 | 4,533 | 14,396 | 13,666 | |||||||||||||||||||||
Facility Expense Dollar Volume | $ | 3,213,889 | $ | 2,954,816 | $ | 8,616,645 | $ | 8,311,803 | |||||||||||||||||
Payment and Processing Fees | $ | 18,398 | $ | 16,600 | $ | 52,422 | $ | 49,712 | |||||||||||||||||
Net Investment Income | 9,360 | 10,610 | 28,958 | 31,331 | |||||||||||||||||||||
Gain on Sales of Securities | 866 | 267 | 4,003 | 2,401 | |||||||||||||||||||||
Other | 431 | 434 | 1,302 | 1,308 | |||||||||||||||||||||
Total Revenues | $ | 29,055 | $ | 27,911 | $ | 86,685 | $ | 84,752 | |||||||||||||||||
Salaries and Benefits | $ | 16,460 | $ | 15,919 | $ | 48,998 | $ | 46,978 | |||||||||||||||||
Occupancy | 765 | 497 | 2,109 | 1,588 | |||||||||||||||||||||
Equipment | 970 | 879 | 2,801 | 2,626 | |||||||||||||||||||||
Other | 3,189 | 2,634 | 8,882 | 9,318 | |||||||||||||||||||||
Total Operating Expenses |
$ | 21,384 | $ | 19,929 | $ | 62,790 | $ | 60,510 | |||||||||||||||||
Income from Operations before Income Taxes | $ | 7,671 | $ | 7,982 | $ | 23,895 | $ | 24,242 | |||||||||||||||||
Income Tax Expense | 1,533 | 1,890 | 5,652 | 6,280 | |||||||||||||||||||||
Net Income | $ | 6,138 | $ | 6,092 | $ | 18,243 | $ | 17,962 | |||||||||||||||||
Basic Earnings per Share | $ | .54 | $ | .53 | $ | 1.60 | $ | 1.58 | |||||||||||||||||
Diluted Earnings per Share | $ | .53 | $ | .53 | $ | 1.57 | $ | 1.56 | |||||||||||||||||
Average Earning Assets | $ | 1,210,560 | $ | 1,229,687 | $ | 1,184,662 | $ | 1,199,950 | |||||||||||||||||
Net Interest Margin | 3.45 | % | 3.86 | % | 3.72 | % | 4.02 | % | |||||||||||||||||
Allowance for Loan Losses to Loans | 1.84 | % | 1.81 | % | 1.84 | % | 1.81 | % | |||||||||||||||||
Non-performing Loans to Total Loans | .30 | % | .72 | % | .30 | % | .72 | % | |||||||||||||||||
Net Loan (Recoveries) Charge-offs to Loans | (.05 | %) | .04 | % | .19 | % | .21 | % | |||||||||||||||||
Provision for Loan Losses | $ |
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$ |
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$ | 500 | $ | 800 |
Source:
Casey Communications, Inc.
Kenn Entringer, 314-721-2828
kentringer@caseycomm.com