Cass Information Systems Reports 50% Increase in 1st Quarter 2005 Net Income; Earns All-Time High of 74 Cents Per Share, 48% Increase Over 2004.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, 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, auditing and information services See Information Systems. , set a new all-time high for per-share earnings in the first quarter of 2005. The company reported first quarter earnings of 74 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 for the period, a 48% increase over the 50 cents per fully diluted share it earned in the first quarter of 2004. Total net income was $2,767,000, a 50% increase over the $1,847,000 reported in the comparable period last year. The first quarter results were driven by a combination of higher processing volumes, fee revenues, software sales and investment income. "While our approach to business and investment decisions is long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. , it is gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. when events converge con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. in a given period to produce such an encouraging result for our shareholders," said Lawrence A. Collett, chief executive officer and chairman of the board. "As always, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op in our outlook and confident in our abilities to grow the company in the year ahead." A 31% increase in freight processing volume and a 9% increase in utility invoice processing volume, combined with 16% and 10% increases in dollars processed respectively, fueled a $994,000 or 13% rise in processing fees. A growing customer base, aided by the August 2004 acquisition of PROFITLAB, Inc., contributed to the processing growth. The company's Government e-Management Solutions, Inc. subsidiary also posted sharply stronger results, generating a $501,000 increase in software revenues, a 42% improvement over the first quarter of 2004. Net investment income advanced $953,000, a 15% increase over the first quarter of 2004. A gradual rise in prevailing interest rates, coupled with a higher base of earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , were responsible for the outcome. Finally, Cass recorded a gain of $547,000 in the sale of securities during the period, compared to the $441,000 gain it posted last year. Meanwhile, 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 8% ($1,060,000) year-to-year due to the PROFITLAB acquisition and growth in processing activity.
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, 2005 and 2004.
Quarter Quarter
Ended Ended
3/31/05 3/31/04
Transportation Invoice Volume 7,132 5,429
Transportation Dollar Volume $2,568,090 $2,221,646
Utility Transaction Volume 1,403 1,284
Utility Dollar Volume $1,029,235 $ 934,361
Payment and Processing Fees $ 8,592 $ 7,598
Software Revenue 1,680 1,179
Net Investment Income 7,326 6,373
Gains on Sales of Investment
Securities 547 441
Other 542 549
---------- -----------
Total Revenues $ 18,687 $ 16,140
Salaries and Benefits $ 10,344 $ 9,157
Occupancy 500 458
Equipment 837 1,025
Other 2,861 2,842
---------- ----------
Total Operating Expenses $ 14,542 $ 13,482
Income before Income Taxes $ 4,145 $ 2,658
Provision for Income Taxes $ 1,378 $ 811
Net Income $ 2,767 $ 1,847
Average Earning Assets $ 664,590 $ 599,227
Net Interest Margin 4.73% 4.58%
Allowance for Loan Losses to
Loans 1.14% 1.24%
Non-performing Loans to Total
Loans .13% .75%
Net Loan Charge-offs to Loans .08% --
Provision for Loan Losses $ 200 $ 200
Non-performing Loans $ 669 $ 3,451
Basic Earnings per Share $ .75 $ .50
Diluted Earnings per Share $ .74 $ .50
About Cass Information Systems Cass has been a leading provider of payables 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 $14 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. , Boston, Mass. and Greenville, S.C. 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 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 31, 2004. |
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