1st Quarter 2016 Earnings Up 6% at Cass Information Systems, Inc.
2016 1st Quarter Recap
March 31, 2016 | March 31, 2015 | % Change | ||||||||||||||||
Transportation Dollar Volume | $5.4 billion | $ 6.1 billion | (10.1)% | |||||||||||||||
Facility Expense Dollar Volume* |
$2.8 billion | $ 3.0 billion | (6.0)% | |||||||||||||||
Revenues | $30.8 million | $ 29.8 million | 3.3% | |||||||||||||||
Net Income | $5.8 million | $ 5.5 million | 5.3% | |||||||||||||||
Diluted Earnings per Share | $.51 | $ .48 | 6.3% | |||||||||||||||
*Includes Energy, Telecom and Waste |
||||||||||||||||||
Sales growth generated by new customers and broadened service offerings helped offset the headwinds created by a challenging economic environment. This, combined with an increase in net investment income due mainly to an improvement in the overall quality of the company’s loan portfolio, led to growth in revenue and net income of 3.3% and 5.3%, respectively.
Overall, lingering adverse economic factors including low interest rates, low energy prices and slow growth in U.S. manufacturing output continued to restrain results. In the transportation group, new accounts boosted transaction volume, but that growth was offset by declining activity from existing customers, especially those involved in oil and gas production. Transportation 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. Facility expense transaction volume increased as a result of new business; however, dollar volume decreased due to both a change in the mix of customers and the impact of lower energy prices which reduced the average invoice amounts.
Strategic investment in staff and technology to win and support new
business and annual merit increases were the key contributors to a
“We are pleased with the solid start to 2016. However, the macro
economic factors that have stunted earnings in recent years remain
present. Our ability to continue to win and grow new business combined
with strong asset management performance leaves us confident that our
strategy is sound,” said
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 |
|||||||||
The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended March 31, 2016 and 2015: |
|||||||||
Quarter Ended March 31, 2016 |
Quarter Ended March 31, 2015 |
||||||||
Transportation Invoice Volume | 8,112 | 8,125 | |||||||
Transportation Dollar Volume | $ | 5,442,332 | $ | 6,056,711 | |||||
Facility Expense Transaction Volume | 5,288 | 5,041 | |||||||
Facility Expense Dollar Volume | $ | 2,805,493 | $ | 2,983,190 | |||||
Payment and Processing Fees | $ | 19,545 | $ | 19,418 | |||||
Net Investment Income | 10,264 | 8,961 | |||||||
Gains on Sales of Securities | 308 | 949 | |||||||
Other | 652 | 465 | |||||||
Total Revenues | $ | 30,769 | $ | 29,793 | |||||
Salaries and Benefits | $ | 17,846 | $ | 17,326 | |||||
Occupancy | 834 | 837 | |||||||
Equipment | 1,055 | 1,071 | |||||||
Other | 3,181 | 3,074 | |||||||
Total Operating Expenses | $ | 22,916 | $ | 22,308 | |||||
Income from Operations before Income Tax Expense | $ | 7,853 | $ | 7,485 | |||||
Income Tax Expense | 2,020 | 1,946 | |||||||
Net Income | $ | 5,833 | $ | 5,539 | |||||
Basic Earnings per Share | $ | .52 | $ | .48 | |||||
Diluted Earnings per Share | $ | .51 | $ | .48 | |||||
Average Earning Assets | $ | 1,262,308 | $ | 1,262,085 | |||||
Net Interest Margin | 3.39 | % | 3.31 | % | |||||
Allowance for Loan Losses to Loans | 1.55 | % | 1.74 | % | |||||
Non-performing Loans to Total Loans | .06 | % | .48 | % | |||||
Net Loan (Recoveries) / Charge-offs to Loans |
-- |
-- |
|||||||
Provision for Loan Losses | $ | (1,000 | ) | $ |
-- |
||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160418005170/en/
Source:
Casey Communications, Inc.
Kenn Entringer, 314-721-2828
kentringer@caseycomm.com