Cass Information Systems, Inc. Reports 18% Increase in 4th Quarter 2004 Earnings.ST. LOUIS -- Cass Information Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CASS), the nation's leading provider of freight and utility invoice An itemized statement or written account of goods sent to a purchaser or consignee by a vendor that indicates the quantity and price of each piece of merchandise shipped. A consular invoice is one used in foreign trade. payment, rating, auditing and information services See Information Systems. , reports that it earned 67 cents per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in the fourth quarter of 2004, an 18% increase over 2003 fourth quarter earnings of 57 cents per fully diluted share. Net income for the period was $2,485,000, a 17% increase over the $2,123,000 reported in the fourth quarter of 2003. 4th Quarter 2004 Contributing to the higher quarterly earnings was a 7% increase in overall processing fees, driven primarily by the PROFITLAB, INC. acquisition. Completed in August 2004, the acquisition is expanding the company's processing capabilities in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. arena. A marked increase in freight processing fees also enhanced income. Investment income was up a strong 13% due primarily to higher balances generated by a 14% increase in freight invoice dollars processed and continued growth in bank deposits. Higher interest rates also contributed to the growth in net investment income. Finally, the company recorded a $604,000 gain on the sale of securities in the quarter. No securities were sold in the fourth quarter of 2003. These positive outcomes were partially offset by the results at the company's software subsidiary, which suffered a $414,000 revenue decline compared to the fourth quarter of 2003. The PROFITLAB acquisition and expenses related to the bank's expansion into southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, also impacted quarterly earnings by boosting company-wide operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by 8%. 2004 Summary For the year ending Dec. 31, 2004, Cass posted earnings of $2.15 per fully diluted share, compared with the $2.13 per fully diluted share it earned in 2003. Net income was $8,005,000 in 2004, compared to $7,902,000 in 2003. Highlighting 2004 was the on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" ability of Cass to steadily grow its utility invoice processing operation by registering a 13% increase in the number of items processed and an 11% increase in their dollar value compared to 2003. Company-wide fees from invoice processing grew 8%, while investment income was up 3% owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de higher account balances and rising interest rates. Operating expenses were also held in check, with Cass posting a less than 1% increase. Overall, gains on the sale of securities were $409,000 less in 2004 than the previous year. Selected Consolidated Financial Data The following table presents selected unaudited consolidated financial data (in thousands, except share and per share data) for the periods ended December December: see month. 31, 2004 and 2003.
Quarter Quarter Year Year
Ended Ended Ended Ended
12/31/04 12/31/03 12/31/04 12/31/03
Transportation Invoice
Volume 6,072 6,001 23,526 23,359
Transportation Dollar
Volume $2,578,590 $ 2,256,947 $9,752,203 $8,673,993
Utility Transaction
Volume 1,324 1,251 5,198 4,618
Utility Dollar Volume $ 885,203 $ 847,302 $3,700,665 $3,340,375
Payment and Processing
Fees $ 7,822 $ 7,293 $ 30,695 $ 28,440
Software Revenue 1,411 1,825 5,157 7,696
Net Investment Income 7,494 6,604 27,088 26,192
Gain on Sale of Debt
Securities 604 -- 1,045 1,454
Other 632 642 2,307 2,477
--------- ---------- --------- ---------
Total Revenues $ 17,963 $ 16,364 $ 66,292 $ 66,259
Salaries and Benefits $ 10,161 $ 9,126 $ 38,198 $ 37,152
Occupancy 486 442 1,840 1,782
Equipment 804 1,128 3,692 4,478
Other 2,983 2,660 11,295 11,492
--------- ---------- --------- ---------
Total Operating
Expenses $ 14,434 $ 13,356 $ 55,025 $ 54,904
Income before Income
Taxes $ 3,529 $ 3,008 $ 11,267 $ 11,355
Provision for Income
Taxes $ 1,044 $ 885 $ 3,262 $ 3,453
Net Income $ 2,485 $ 2,123 $ 8,005 $ 7,902
Average Earning Assets $ 682,937 $ 606,189 $ 643,847 $ 563,071
Net Interest Margin 4.59% 4.57% 4.48% 4.85%
Allowance for Loan
Losses to Loans 1.21% 1.17% 1.21% 1.17%
Non-performing Loans to
Total Loans .11% .94% .11% .94%
--------- ---------- --------- ---------
Net Loan Charge-offs to
Average Loans -- -- -- --
Provision for Loan
Losses $ 50 $ 100 $ 550 $ 190
Non-performing Loans $ 538 $ 4,393 $ 538 $ 4,393
Basic Earnings per Share $ .68 $ .57 $ 2.18 $ 2.15
Diluted Earnings per
Share $ .67 $ .57 $ 2.15 $ 2.13
About Cass Information Systems Cass has been a leading provider of payables Payables Related: Accounts payable services and information support systems to companies throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. since 1956. The company pays over $13 billion annually in freight and utility invoices on behalf of its customers from processing centers in St. Louis, Mo., Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. and Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. , Mass. The support of its bank subsidiary, Cass Commercial Bank, founded in 1906, makes the company unique in the industry. Note to Investors Certain matters set forth in this news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 referenced 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 annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2003. |
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