Cass Information Systems Reports 43% Increase in 1st Quarter 2006 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 transportation, utility and telecom 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 and information services See Information Systems. , reported first quarter 2006 earnings of $.70 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 43% increase over the $.49 per fully diluted share it earned in the first quarter of 2005. Net income was $3,952,000 in 2006 compared to $2,767,000 in 2005. Earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $.70 per fully diluted share in the first quarter, a 35% increase over the $.52 per fully diluted share earned from continuing operations in the first quarter of 2005. Net income from continuing operations was $3,952,000 and $2,951,000 in the first quarters of 2006 and 2005, respectively. (The company sold the business and assets of a wholly-owned subsidiary, Government e-Management Solutions (GEMS), during the fourth quarter of 2005. GEMS' assets, liabilities and results of operations are shown as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. .) Driving the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. first quarter results were higher transaction volumes, which boosted processing fees and an increase in dollars processed, combined with an increase in net interest margin that raised investment income. "Sustaining the trend that emerged in 2005, all segments of our business continue to contribute to our growth," said Lawrence Lawrence. 1 City (1990 pop. 26,763), Marion co., central Ind., a residential suburb of Indianapolis, on the West Fork of the White River. It has light manufacturing. 2 City (1990 pop. 65,608), seat of Douglas co., NE Kans. A. Collett, chief executive officer and chairman of the board. "New business and solid economic activity are helping our invoice payment and information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. operations post profitable gains in volume, while higher yields on invested assets raise our bottom line." Revenues from first quarter 2006 continuing operations were $19,957,000, a 17% increase over the same period last year. Payment and processing fees for the quarter were up 13% over the prior year at $9,688,000. That increase was attributable to a rise in transaction volume related mainly to new business. Net investment income was $9,491,000, a 30% increase over the prior year. The increase stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. from an increase in dollars processed, along with the general rise in the level of interest rates. There were no gains from the sale of securities in the opening quarter of 2006. In the first quarter of 2005, CASS recorded a $547,000 gain on the sale of securities. Total 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. from continuing operations were $13,869,000, 10% higher than the year-earlier period and primarily attributable to the growth in processing activity. Salaries and benefits were up 12% to $10,270,000, as CASS hired more people to service new business.
Selected Consolidated Financial Data
The following table presents selected unaudited consolidated financial
data (in thousands, except per share data) for the periods ended March
31, 2006 and 2005.
Quarter Quarter
Ended Ended
3/31/06 3/31/05
Transportation Core Invoice Volume 5,994 5,155
Transportation Dollar Volume $3,450,076 $2,568,090
Utility Transaction Volume 1,503 1,403
Utility Dollar Volume $1,374,215 $1,029,235
Payment and Processing Fees $ 9,688 $ 8,592
Net Investment Income 9,491 7,326
Gains on Sales of Investment Securities - 547
Other 778 542
---------- ----------
Total Revenues $ 19,957 $ 17,007
---------- ----------
Salaries and Benefits $ 10,270 $ 9,195
Occupancy 455 436
Equipment 653 714
Other 2,491 2,242
---------- ----------
Total Operating Expenses $ 13,869 $ 12,587
---------- ----------
Income from Continuing Operations before
Income Taxes $ 6,088 $ 4,420
Provision for Income Taxes 2,136 1,469
---------- ----------
Income from Continuing Operations $ 3,952 $ 2,951
Income (loss) from Discontinued Operations net
of Income Taxes $ - $ (184)
---------- ----------
Net Income $ 3,952 $ 2,767
========== ==========
Average Earning Assets $ 743,472 $ 664,590
Net Interest Margin 5.46% 4.73%
Allowance for Loan Losses to Loans 1.18% 1.14%
Non-performing Loans to Total Loans .26% .13%
Net Loan Charge-offs to Loans .04% .08%
Provision for Loan Losses $ 150 $ 200
Non-performing Loans $ 1,385 $ 669
Basic Earnings per Share from Continuing
Operations $ .71 $ .53
Basic Earnings per Share from Discontinued
Operations - (.03)
----------- ----------
Basic Earnings Per Share $ .71 $ .50
========== ==========
Diluted Earnings per Share from Continuing
Operations $ .70 $ .52
Diluted Earnings per Share from Discontinued
Operations - (.03)
----------- ----------
Diluted Earnings per Share $ .70 $ .49
========== ==========
About Cass Information Systems Cass Information Systems is the leading provider of transportation, utility and telecom invoice payment and information services. The company, which has been involved in the payables Payables Related: Accounts payable services and information support business since 1956, disburses over $15 billion annually on behalf of 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. , 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. and Greenville Greenville. 1 City (1990 pop. 45,226), seat of Washington co., W Miss., on Lake Ferguson, a deepwater harbor adjoining the Mississippi River; inc. 1886. , S.C. The support of 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 reports filed from time to time with the Securities and Exchange Commission including 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 December: see month. 31, 2005. |
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