Cass Information Systems, Inc. Reports 2nd Quarter 2015 Earnings
2nd Quarter | YTD | ||||||||||||
2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||
Transportation Dollar Volume |
$6.5 billion | $6.7 billion | (1.8) | $12.6 billion | $12.6 billion | .3 | |||||||
Facility Expense Dollar Volume*
|
$2.8 billion | $3.1 billion | (9.9) | $5.7 billion | $6.3 billion | (9.4) | |||||||
Revenues | $30.1 million | $29.3 million | 2.8 | $59.9 million | $58.0 million | 3.3 | |||||||
Net Income | $5.5 million | $6.0 million | (8.1) | $11.1 million | $11.8 million | (6.4) | |||||||
Diluted Earnings per Share | $.48 | $.52 | (7.7) | $.96 | $1.02 | (5.9) | |||||||
*Includes Energy, Telecom and Waste |
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2015 2nd Quarter Recap
Cass posted modestly lower second quarter earnings as growth in revenue from new customers and services was offset by economic headwinds. In particular, the transportation group was impacted by a decline in activity from existing accounts. Although transaction volume increased due to new business, the growth was significantly reduced by a decline in activity from existing customers, especially those in the oil and gas production sector. In addition, transportation dollar volume declined as lower fuel prices led to lower average invoice amounts. The decrease in dollar volume generated lower investable balances which resulted in both lower net investment income and more significantly, lower fees from carrier services. Finally, facility expense dollar volume declined as on-going competitor consolidation in the energy sector affected client retention.
Internally, higher health insurance costs, an increase in retirement
plan expense tied to the use of new mortality tables and a decline in
the discount rate, annual merit salary increases and strategic
investment in staff and technology to win and support new business
produced a
“While we currently face a number of challenges including an uneven
economic recovery, low oil prices and an unfavorable interest rate
environment, our on-going ability to grow our customer base leads us to
believe that we are well positioned for future growth,” said
Six-Month 2015 Recap
For the six-month period ended
Operating expenses were up
Cash Dividend Declared
On
“This strong history of dividends combined with the return of almost
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
Quarter | Quarter | Six Months | Six Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||
Transportation Invoice Volume |
8,969 | 8,874 | 17,094 | 16,633 | ||||||||||||
Transportation Dollar Volume | $ | 6,541,917 | $ | 6,664,922 | $ | 12,598,628 | $ | 12,557,493 | ||||||||
Facility Expense Transaction Volume | 5,021 | 5,181 | 10,062 | 10,276 | ||||||||||||
Facility Expense Dollar Volume | $ | 2,755,930 | $ | 3,060,418 | $ | 5,739,120 | $ | 6,334,971 | ||||||||
Payment and Processing Fees |
$ | 19,699 | $ | 19,554 | $ | 39,117 | $ | 37,951 | ||||||||
Net Investment Income | 9,282 | 9,347 | 18,243 | 18,494 | ||||||||||||
Gain on Sales of Securities | 690 |
-- |
1,639 |
-- |
||||||||||||
Other | 449 | 398 | 914 | 1,576 | ||||||||||||
Total Revenues | $ | 30,120 | $ | 29,299 | $ | 59,913 | $ | 58,021 | ||||||||
Salaries and Benefits | $ | 17,543 | $ | 16,464 | $ | 34,869 | $ | 32,651 | ||||||||
Occupancy | 856 | 756 | 1,693 | 1,562 | ||||||||||||
Equipment | 1,070 | 1,121 | 2,141 | 2,147 | ||||||||||||
Other | 3,171 | 2,965 | 6,245 | 5,971 | ||||||||||||
Total Operating Expenses |
$ | 22,640 | $ | 21,306 | $ | 44,948 | $ | 42,331 | ||||||||
Income from Operations before Income Taxes | $ | 7,480 | $ | 7,993 | $ | 14,965 | $ | 15,690 | ||||||||
Income Tax Expense | 1,932 | 1,958 |
3,878 |
3,844 | ||||||||||||
Net Income | $ | 5,548 | $ | 6,035 | $ | 11,087 | $ | 11,846 | ||||||||
Basic Earnings per Share | $ | .49 | $ | .52 | $ | .97 | $ | 1.03 | ||||||||
Diluted Earnings per Share | $ | .48 | $ | .52 | $ | .96 | $ | 1.02 | ||||||||
Average Earning Assets | $ | 1,209,958 | $ | 1,220,326 | $ | 1,235,877 | $ | 1,227,932 | ||||||||
Net Interest Margin | 3.52 | % | 3.50 | % | 3.41 | % | 3.46 | % | ||||||||
Allowance for Loan Losses to Loans | 1.76 | % | 1.78 | % | 1.76 | % | 1.78 | % | ||||||||
Non-performing Loans to Total Loans | .47 | % | .23 | % | .47 | % | .23 | % | ||||||||
Net Loan Recoveries to Loans |
-- |
% |
|
-- |
% |
-- |
% | (.03 | %) | |||||||
Provision for Loan Losses | $ |
-- |
$ |
-- |
$ |
-- |
$ |
-- |
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View source version on businesswire.com: http://www.businesswire.com/news/home/20150723005179/en/
Source:
Casey Communications
Kenn Entringer, 314-721-2828
kentringer@caseycomm.com