Cass Information Systems Reports 3rd Quarter 2002 Earnings.Business Editors ST. LOUIS--(BUSINESS WIRE)--Oct. 16, 2002 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. , reported third quarter earnings of 55 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, a 7% decrease from 2001 third quarter earnings of 59 cents per fully diluted share. Total net income for the quarter was $1,774,000, compared to $1,896,000 in 2001. For the nine-month period ended September September: see month. 30, 2002, the company generated $1.66 fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , a 1% increase over the $1.65 fully diluted earnings per share reported over the first nine-months of 2001. Net income was $5,351,000, compared to $5,421,000 in 2001. Despite unfavorable economic conditions, payment and processing fees increased 16% during the third quarter over the same period last year. This gain was the result of a 15% increase in freight processing fees and a 53% increase in utility processing fees. The increase in freight processing fees was attributable to the addition of new customers and services and to increased volume from existing accounts. The sharp increase in utility processing fees reflects the continued growth of this new segment. These increases were partially offset by decreases in other processing services fees and discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: services. Net investment income decreased $951,000 or 12% during the third quarter compared to 2001 due to the decline in the general level of interest rates. 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. increased $393,000 or 4% during the third quarter compared to the prior year due mainly to increases in production-related salaries and benefits and heightened investment in marketing resources. 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 September 30, 2002 and 2001.
Nine Nine
Quarter Quarter Months Months
Ended Ended Ended Ended
9/30/02 9/30/01 9/30/02 9/30/01
Payment and Processing
Fees $ 6,279 $ 5,429 $ 17,952 $ 15,895
Net Investment Income 7,194 8,145 21,906 24,246
Gain (Loss) on Sale
of Debt Securities (2) -- 942 --
Other 479 457 1,368 1,386
---------- ---------- ---------- ----------
Total Revenues $ 13,950 $ 14,031 $ 42,168 $ 41,527
Salaries and Benefits $ 7,847 $ 7,514 $ 23,350 $ 22,899
Occupancy 367 420 1,115 1,308
Equipment 1,037 960 3,241 2,678
Other 2,242 2,206 6,824 6,340
---------- ---------- ---------- ----------
Total Operating
Expenses $ 11,493 $ 11,100 $ 34,530 $ 33,225
Income before Income
Taxes $ 2,457 $ 2,931 $ 7,638 $ 8,302
Provision for Income
Taxes $ 683 $ 1,035 $ 2,287 $ 2,881
Net Income $ 1,774 $ 1,896 $ 5,351 $ 5,421
Average Earning Assets $ 542,929 $ 519,270 $ 540,941 $ 510,455
Net Interest Margin 5.55% 6.39% 5.71% 6.45%
Allowance for Loan
Losses to Loans 1.25% 1.32% 1.25% 1.32%
Non-performing Loans to
Total Loans .57% .23% .57% .23%
Net Loan Charge-offs
to Loans -- .03% .01% .02%
Provision for Loan
Losses $ 90 $ 60 $ 360 $ 60
Average Shares
Outstanding 3,202,022 3,184,804 3,201,458 3,245,577
Basic Earnings
per Share $ .55 $ .60 $ 1.67 $ 1.67
Diluted Shares
Outstanding 3,221,897 3,222,443 3,222,026 3,286,284
Diluted Earnings
per Share $ .55 $ .59 1.66 $ 1.65
Transportation
Invoice Volume 5,639 4,969 15,914 14,967
Transportation
Dollar Volume $1,989,867 $1,808,261 $5,717,571 $5,475,427
Utility Transaction
Volume 870 669 2,477 2,024
Utility Dollar Volume $ 725,695 $ 673,646 $1,919,357 $1,832,717
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 $9 billion annually in freight and utility invoices on behalf of its customers from processing centers in St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. , 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, Mass. The support of its bank subsidiary, Cass Commercial Bank, founded in 1906, makes Cass Information Systems 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 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, 2001. |
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