Cass Information Systems, Inc. Posts 20% Increase in 3rd Quarter 2007 Earnings
2007 3rd Quarter Recap
Payment and processing fees increased 10% or $1,082,000 compared to the year-earlier period, as utility transaction volume was up 39% and dollar volume rose 35% due to new business and heightened activity from existing customers.
Net investment income increased 2% or $180,000 due to the growth in funds generated from processing activities.
Operating expenses were up 4%, or $643,000, as a result of higher employee costs related to transaction growth.
"Our utility invoice processing operation continues to produce results that reflect its ability to penetrate new markets and to grow its customer base," stated Lawrence A. Collett, chief executive officer and chairman of the board. "From a broader perspective, it is gratifying that the company produced another solid result for our shareholders in this reporting period. We remain optimistic about our prospects as we approach 2008."
Nine-Month 2007 Results
For the nine months ended September 30, 2007, the company earned $1.53 per fully diluted share, a 14% increase from the $1.34 per fully diluted share reported for the same period in 2006. Net income was $13,055,000, 15% higher than the $11,371,000 earned in 2006. Revenue increased $4,995,000 or 8% compared to the first nine months of 2006 primarily due to increased processing volumes and higher fee revenues.
Operating expenses were up 9%, or $3,755,000, in the nine-month year-over-year period, mainly due to the increase in salaries and benefits required to support growth in processing activity.
Selected Consolidated Financial Data
The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended September 30, 2007 and September 30, 2006:
Nine Nine
Quarter Quarter Months Months
Ended Ended Ended Ended
9/30/07 9/30/06 9/30/07 9/30/06
--------- --------- ---------- ----------
Transportation Invoice
Volume 6,470 6,154 18,996 18,311
Transportation Dollar
Volume $3,669,117 $3,648,694 $10,764,558 $10,722,994
Utility Transaction
Volume 2,361 1,701 6,872 4,797
Utility Dollar Volume $2,081,529 $1,538,628 $ 5,687,627 $ 4,188,578
Payment and Processing
Fees $ 11,441 $ 10,359 $ 34,089 $ 29,853
Net Investment Income 10,450 10,270 30,230 29,471
Other 629 569 1,895 1,895
---------- ---------- ----------- -----------
Total Revenues $ 22,520 $ 21,198 $ 66,214 $ 61,219
---------- ---------- ----------- -----------
Salaries and Benefits $ 11,700 $ 11,136 $ 35,135 $ 31,673
Occupancy 550 522 1,572 1,462
Equipment 876 732 2,565 2,128
Other 2,538 2,631 7,657 7,911
---------- ---------- ----------- -----------
Total Operating
Expenses $ 15,664 $ 15,021 $ 46,929 $ 43,174
---------- ---------- ----------- -----------
Income from Continuing
Operations before
Income Taxes $ 6,856 $ 6,177 $ 19,285 $ 18,045
Provision for Income
Taxes 2,179 2,205 6,230 6,397
---------- ---------- ----------- -----------
Net Income from
Continuing Operations $ 4,677 $ 3,972 $ 13,055 $ 11,648
Loss from Discontinued
Operations net of
Income Taxes -- (88) -- (277)
---------- ---------- ----------- -----------
Net Income $ 4,677 $ 3,884 $ 13,055 $ 11,371
========== ========== =========== ===========
Average Earning Assets $ 827,757 $ 774,293 $ 799,144 $ 751,769
Net Interest Margin 5.46% 5.56% 5.48% 5.53%
Allowance for Loan
Losses to Loans 1.18% 1.14% 1.18% 1.14%
Non-performing Loans to
Total Loans .06% .18% .06% .18%
Net Loan Charge-offs to
Loans .20% .11% .24% .16%
Provision for Loan
Losses $ 225 $ 200 $ 675 $ 500
Non-performing Loans $ 310 $ 954 $ 310 $ 954
Basic Earnings per Share
(EPS) from Continuing
Operations $ .56 $ .48 $ 1.57 $ 1.40
Basic EPS from
Discontinued Operations -- (.01) -- (.03)
---------- ---------- ----------- -----------
Basic Earnings per
Share $ .56 $ .47 $ 1.57 $ 1.37
========== ========== =========== ===========
Diluted EPS from
Continuing Operations $ .55 $ .47 $ 1.53 $ 1.37
Diluted EPS from
Discontinued Operations -- (.01) -- (.03)
---------- ---------- ----------- -----------
Diluted Earnings per
Share $ .55 $ .46 $ 1.53 $ 1.34
========== ========== =========== ===========
About Cass Information Systems
Cass Information Systems is the leading provider of transportation, utility and telecom invoice payment and information services. The company, which has been involved in the payables services and information support business since 1956, disburses over $20 billion annually on behalf of customers from processing centers in St. Louis, Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C. and Wellington, Kansas. The support of Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry. Cass is part of the Russell 2000(R) Index.
http://www.cassinfo.com
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 Securities and Exchange Commission including the company's annual report on Form 10-K for the year ended December 31, 2006.
SOURCE: Cass Information Systems, Inc.
Casey Communications, Inc. Kenn Entringer, 314-721-2828 kentringer@caseycomm.com
