Cass Information Systems, Inc. Reports 2nd Quarter 2013 Earnings
2nd Quarter |
YTD | |||||||||||||||||||||||||||||||
2013 | 2012 |
% |
2013 | 2012 |
% |
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Transportation Dollar Volume | $5.9 billion | $5.7 billion | 3.6% | $11.3 billion | $11.0 billion | 2.1% | ||||||||||||||||||||||||||
Facility Expense Dollar Volume* |
$2.8 billion | $2.6 billion | 5.7% | $5.4 billion | $5.4 billion | .9% | ||||||||||||||||||||||||||
Revenues | $29.2 million | $28.4 million | 2.8% | $57.6 million | $56.8 million | 1.4% | ||||||||||||||||||||||||||
Net Income | $6.1 million | $6.0 million | 1.9% | $12.1 million | $11.9 million | 2.0% | ||||||||||||||||||||||||||
Diluted Earnings per Share | $.52 | $.52 |
-- |
$1.04 | $1.03 | 1.0% | ||||||||||||||||||||||||||
*Includes Energy, Telecom and Environmental |
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2013 2nd Quarter Recap
The primary impediment to earnings growth remained a historically low
interest rate environment that continues to erode the company’s net
interest margin. In the second quarter, Cass net investment income
declined by
Conversely, transaction volume, which generates fee income, increased in the transportation, telecom and environmental sectors despite an idling economy. Partially offsetting growth in those sectors were lower volumes in the energy marketplace, where recent competitor consolidation is affecting customer retention, even as new sales remain strong.
Operating expenses were up for the quarter due to higher salary and benefit expenses.
“Factoring the sizable drag that low interest rates and lackluster
economic growth exert on profitability, we are satisfied to post second
quarter earnings consistent with year-ago results,” said
Six-Month 2013 Recap
For the six-month period ended
Operating expenses were up 2%, or
Cash Dividend Declared
On
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 June 30, 2013 and 2012: |
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Quarter
Ended June 30, 2013 |
Quarter
Ended June 30, 2012 |
Six Months
Ended June 30, 2013 |
Six Months
Ended June 30, 2012 |
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Transportation Invoice Volume | 7,935 | 7,295 | 15,279 | 14,168 | ||||||||||||||||
Transportation Dollar Volume | $ | 5,869,694 | $ | 5,665,600 | $ | 11,285,059 | $ | 11,047,691 | ||||||||||||
Facility Expense Transaction Volume | 4,800 | 4,556 | 9,418 | 9,133 | ||||||||||||||||
Facility Expense Dollar Volume | $ | 2,762,513 | $ | 2,613,459 | $ | 5,402,756 | $ | 5,356,987 | ||||||||||||
Payment and Processing Fees | $ | 17,448 | $ | 16,625 | $ | 34,024 | $ | 33,112 | ||||||||||||
Net Investment Income | 9,629 | 10,170 | 19,598 | 20,721 | ||||||||||||||||
Gain on Sales of Securities | 1,684 | 1,168 | 3,137 | 2,134 | ||||||||||||||||
Other | 435 | 444 | 871 | 874 | ||||||||||||||||
Total Revenues | $ | 29,196 | $ | 28,407 | $ | 57,630 | $ | 56,841 | ||||||||||||
Salaries and Benefits | $ | 16,280 | $ | 15,498 | $ | 32,538 | $ | 31,059 | ||||||||||||
Occupancy | 735 | 559 | 1,344 | 1,091 | ||||||||||||||||
Equipment | 923 | 884 | 1,831 | 1,747 | ||||||||||||||||
Other | 3,079 | 3,299 | 5,693 | 6,684 | ||||||||||||||||
Total Operating Expenses |
$ | 21,017 | $ | 20,240 | $ | 41,406 | $ | 40,581 | ||||||||||||
Income from Operations before Income Taxes | $ | 8,179 | $ | 8,167 | $ | 16,224 | $ | 16,260 | ||||||||||||
Income Tax Expense | 2,106 | 2,205 | 4,119 | 4,390 | ||||||||||||||||
Net Income | $ | 6,073 | $ | 5,962 | $ | 12,105 | $ | 11,870 | ||||||||||||
Basic Earnings per Share | $ | .53 | $ | .53 | $ | 1.06 | $ | 1.05 | ||||||||||||
Diluted Earnings per Share | $ | .52 | $ | .52 | $ | 1.04 | $ | 1.03 | ||||||||||||
Average Earning Assets | $ | 1,176,943 | $ | 1,176,084 | $ | 1,171,498 | $ | 1,184,918 | ||||||||||||
Net Interest Margin | 3.77 | % | 4.13 | % | 3.86 | % | 4.11 | % | ||||||||||||
Allowance for Loan Losses to Loans | 1.69 | % | 1.82 | % | 1.69 | % | 1.82 | % | ||||||||||||
Non-performing Loans to Total Loans | .13 | % | .86 | % | .13 | % | .86 | % | ||||||||||||
Net Loan (Recoveries) Charge-offs to Loans |
-- |
.13 | % | .22 | % | .16 | % | |||||||||||||
Provision for Loan Losses | $ | 300 | $ | 600 | $ | 500 | $ | 800 | ||||||||||||
Source:
Casey Communications, Inc.
Kenn Entringer, 314-721-2828
kentringer@caseycomm.com