Cass Information Systems, Inc. Posts 3.8% Increase in 3rd Quarter 2014 Earnings; Raises Dividend by 5% and Increases Share Buyback Program to 500,000 Shares
3rd Quarter | YTD | |||||||||||||||||
2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||
Transportation Dollar Volume | $6.7 billion | $6.1 billion | 10.0 | % | $19.3 billion | $17.4 billion | 10.8 | % | ||||||||||
Facility Expense Dollar Volume* |
$3.3 billion | $3.2 billion | 1.1 | % | $9.6 billion | $8.6 billion | 11.2 | % | ||||||||||
Revenues | $29.6 million | $29.1 million | 1.9 | % | $87.6 million | $86.7 million | 1.1 | % | ||||||||||
Net Income | $6.4 million | $6.1 million | 4.3 | % | $18.2 million | $18.2 million |
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Diluted Earnings per Share | $ | .55 | $ | .53 | 3.8 | % | $ | 1.57 | $ | 1.57 |
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*Includes Energy, Telecom and Environmental
2014 3rd Quarter Recap
A 10% increase in transportation volume, mainly attributed to a large number of new customers and heightened activity from core transportation clients, fueled the quarterly upturn. Even as new sales remained strong, facility expense dollar volume was muted as recent competitor consolidation in the energy sector affected customer retention.
Operating expenses decreased by
“For the second consecutive quarter, our transportation payment
processing group posted a double-digit gain in processing volume which
enabled the company to post record earnings for the quarter,” said
Nine-Month 2014 Recap
For the nine-month period ended
Operating expenses were up 1.2%, or
Cash Dividend and Buyback Program
On
The board of directors also authorized the repurchase of up to 500,000 shares of the company’s common stock.
“These actions reflect the company’s strong capital base, solid growth in transaction fees and the confidence of our board of directors in the company’s future,” 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, 2014 and 2013. |
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Quarter
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Quarter
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Nine Months
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Nine Months
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Transportation Invoice Volume | 8,856 | 8,389 | 25,489 | 23,668 | ||||||||
Transportation Dollar Volume | $ | 6,725,524 | $ | 6,113,332 | $ | 19,283,017 | $ | 17,398,391 | ||||
Facility Expense Transaction Volume | 5,188 | 4,978 | 15,464 | 14,396 | ||||||||
Facility Expense Dollar Volume | $ | 3,250,130 | $ | 3,213,889 | $ | 9,585,101 | $ | 8,616,645 | ||||
Payment and Processing Fees | $ | 19,743 | $ | 18,398 | $ | 57,694 | $ | 52,422 | ||||
Net Investment Income | 9,387 | 9,360 | 27,881 | 28,958 | ||||||||
Gain on Sales of Securities | 23 | 866 | 23 | 4,003 | ||||||||
Other | 457 | 431 | 2,033 | 1,302 | ||||||||
Total Revenues | $ | 29,610 | $ | 29,055 | $ | 87,631 | $ | 86,685 | ||||
Salaries and Benefits | $ | 16,515 | $ | 16,460 | $ | 49,166 | $ | 48,998 | ||||
Occupancy | 783 | 765 | 2,345 | 2,109 | ||||||||
Equipment | 945 | 970 | 3,092 | 2,801 | ||||||||
Other | 2,953 | 3,189 | 8,924 | 8,882 | ||||||||
Total Operating Expenses |
$ | 21,196 | $ | 21,384 | $ | 63,527 | $ | 62,790 | ||||
Income from Operations before Income Taxes | $ | 8,414 | $ | 7,671 | $ | 24,104 | $ | 23,895 | ||||
Income Tax Expense | 2,013 | 1,533 | 5,857 | 5,652 | ||||||||
Net Income | $ | 6,401 | $ | 6,138 | $ | 18,247 | $ | 18,243 | ||||
Basic Earnings per Share | $ | .56 | $ | .54 | $ | 1.59 | $ | 1.60 | ||||
Diluted Earnings per Share | $ | .55 | $ | .53 | $ | 1.57 | $ | 1.57 | ||||
Average Earning Assets | $ | 1,243,375 | $ | 1,210,560 | $ | 1,233,136 | $ | 1,184,662 | ||||
Net Interest Margin | 3.43% | 3.45% | 3.45% | 3.72% | ||||||||
Allowance for Loan Losses to Loans | 1.75% | 1.84% | 1.75% | 1.84% | ||||||||
Non-performing Loans to Total Loans | .22% | .30% | .22% | .30% | ||||||||
Net Loan (Recoveries) Charge-offs to Loans |
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(.05%) | (.03%) | .19% | ||||||||
Provision for Loan Losses | $ |
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$ |
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$ |
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$ | 500 |
Source:
Casey Communications,
Kenn Entringer, 314-721-2828
kentringer@caseycomm.com