Cass Information Systems, Inc. Reports 3rd Quarter 2015 Earnings
Increases Dividend by 5%; Restores Stock Buyback Program Capacity to 500,000 Shares
3rd Quarter | YTD | |||||||||||
% | % | |||||||||||
2015 | 2014 | Change | 2015 | 2014 | Change | |||||||
Transportation Dollar Volume | $6.1 billion |
|
$6.7 billion | (8.7) | $18.7 billion | $19.3 billion | (2.8) | |||||
Facility Expense Dollar Volume* |
$3.2 billion | $3.3 billion | (2.7) | $8.9 billion | $9.6 billion | (7.1) | ||||||
Revenue | $30.6 million | $29.6 million | 3.3 | $90.5 million | $87.6 million | 3.3 | ||||||
Net Income | $5.9 million | $6.4 million | (8.1) | $17.0 million | $18.2 million | (7.0) | ||||||
Diluted Earnings per Share | $.51 | $.55 | (7.3) | $1.47 | $1.57 | (6.4) | ||||||
*Includes Energy, Telecom and Waste |
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2015 3rd Quarter Recap
Despite generating revenue growth of 3.3% from new customers and services, continuing adverse economic conditions led Cass to post lower third quarter earnings. In the transportation group, transaction volume increased due to new business but the benefits of that growth were more than off-set by a decline in activity from existing customers, especially those involved in oil and gas production. In addition, transportation dollar volume declined as lower fuel prices reduced average invoice amounts. The decrease in dollar volume generated smaller investable balances that reduced net investment income and more significantly, lowered fees from carrier services. Finally, facility expense dollar volume declined as competitor consolidation in the market offset the company’s success in growing new accounts.
Internally, multiple factors contributed to a
“We remain firmly committed to our core strategies and are confident in
the ability of our businesses to successfully compete over the
long-term,” stated
Nine-Month 2015 Recap
For the nine-month period ended
Operating expenses were up
Cash Dividend Declared
On
Additionally, after repurchasing more than 220,000 common shares in the past 12 months, the board voted to restore the capacity of the firm’s stock repurchase program to 500,000 shares.
“These actions reflect our strong capital base, continuing revenue growth and the confidence of our directors in the company’s future,” said Brunngraber.
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, 2015 and 2014: |
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Quarter | Quarter | Nine Months | Nine Months | |||||||||
Ended | Ended | Ended | Ended | |||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Transportation Invoice Volume | 8,626 | 8,856 | 25,720 | 25,489 | ||||||||
Transportation Dollar Volume | $ | 6,140,747 | $ | 6,725,524 | $ | 18,739,375 | $ | 19,283,017 | ||||
Facility Expense Transaction Volume | 5,202 | 5,188 | 15,264 | 15,464 | ||||||||
Facility Expense Dollar Volume | $ | 3,162,787 | $ | 3,250,130 | $ | 8,901,907 | $ | 9,585,101 | ||||
Payment and Processing Fees | $ | 19,781 | $ | 19,743 | $ | 58,898 | $ | 57,694 | ||||
Net Investment Income | 9,083 | 9,387 | 27,326 | 27,881 | ||||||||
Gain on Sales of Securities | 1,271 | 23 | 2,910 | 23 | ||||||||
Other | 462 | 457 | 1,376 | 2,033 | ||||||||
Total Revenues | $ | 30,597 | $ | 29,610 | $ | 90,510 | $ | 87,631 | ||||
Salaries and Benefits | $ | 17,761 | $ | 16,515 | $ | 52,630 | $ | 49,166 | ||||
Occupancy | 872 | 783 | 2,565 | 2,345 | ||||||||
Equipment | 1,067 | 945 | 3,208 | 3,092 | ||||||||
Other | 2,934 | 2,953 | 9,179 | 8,924 | ||||||||
Total Operating Expenses
|
$ | 22,634 | $ | 21,196 | $ | 67,582 | $ | 63,527 | ||||
Income from Operations before Income Taxes | $ | 7,963 | $ | 8,414 | $ | 22,928 | $ | 24,104 | ||||
Income Tax Expense | 2,083 | 2,013 | 5,961 | 5,857 | ||||||||
Net Income | $ | 5,880 | $ | 6,401 | $ | 16,967 | $ | 18,247 | ||||
Basic Earnings per Share | $ | .52 | $ | .56 | $ | 1.49 | $ | 1.59 | ||||
Diluted Earnings per Share | $ | .51 | $ | .55 | $ | 1.47 | $ | 1.57 | ||||
Average Earning Assets | $ | 1,234,469 | $ | 1,243,375 | $ | 1,235,403 | $ | 1,233,136 | ||||
Net Interest Margin | 3.36% | 3.43% | 3.39% | 3.45% | ||||||||
Allowance for Loan Losses to Loans | 1.77% | 1.75% | 1.77% | 1.75% | ||||||||
Non-performing Loans to Total Loans | .47% | .22% | .47% | .22% | ||||||||
Net Loan (Recoveries) Charge-offs to Loans |
-- |
-- |
-- |
(.03%) | ||||||||
Provision for Loan Losses | $ |
-- |
$ |
-- |
$ |
-- |
$ |
-- |
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View source version on businesswire.com: http://www.businesswire.com/news/home/20151022005218/en/
Source:
Casey Communications
Kenn Entringer, 314-721-2828
kentringer@caseycomm.com