ST. LOUIS-(BUSINESS WIRE) - July 21, 2016 - Cass Information Systems, Inc. (NASDAQ: CASS), the nation's leading provider of transportation, energy, telecom and waste invoice payment and information services, reported second quarter 2016 earnings of $.52 per diluted share, an increase of 8% from the $.48 per diluted share it earned in the second quarter of 2015. Net income for the period was $5.9 million, compared to $5.5 million in 2015.
*Includes Energy, Telecom and Waste
2016 2nd Quarter Recap
The growth in revenue and net income of 3% and 6%, respectively, was propelled by uncovering strong business opportunities that increased sales from new customers and broadened services offerings. This success was achieved despite a persistently challenging economic environment. The facility expense group led the way to the solid quarterly performance with double-digit growth in transaction volume compared to the second quarter of 2015, the result of highly focused and successful marketing efforts that generated a number of new customers. Facility expense dollar volume was also up for the quarter.
In the transportation group, new accounts boosted transaction volume, but multiple factors offset the benefits of that growth. The foremost impediment was declining activity from existing customers, especially those involved in oil and gas production. Transportation dollar volume was also retarded by lower fuel prices which reduced average invoice amounts. The decrease in dollar volume generated smaller investable balances that reduced investment income, and more significantly, lowered fees from carrier services.
Consolidated operating expenses saw a $400,000 (2%) increase due to strategic investment in staff and technology to win and support new business and annual merit increases.
“We are pleased with how the company is executing its business strategy over the first half of 2016,” said Eric H. Brunngraber, Cass chairman and chief executive officer. “Although we continue to contend with economic challenges, including ongoing low interest rates, our ability to win and grow new business leaves us confident that our strategy is sound.”
Six-Month 2016 Recap
For the six-month period ended June 30, 2016 the company earned $1.03 per diluted share, an increase of 7% from the $.96 per diluted share it earned in the same period in 2015. Net income was $11.7 million, compared to $11.1 million in 2015. Revenues rose 3%, from $59.9 million in 2015 to $61.7 million in 2016.
Consolidated operating expenses were up 2%, or $1.0 million, due to the cost of investing in staff and technology, as noted above.
Cash Dividend Declared
On July 18, 2016, the company’s board of directors declared a third quarter dividend of $.22 per share payable September 15, 2016 to shareholders of record September 2, 2016. Cass has continuously paid regularly scheduled cash dividends since 1934.
“Our history of dividend payments combined with the return of almost $14 million to our shareholders through share repurchase activity over the last 12 months reflects our strong operating performance and solid capital base. It also testifies to the board’s optimism about the company’s long-term prospects,” added Brunngraber.
About Cass Information Systems
Cass Information Systems, Inc. is a leading provider of integrated information and payment management solutions. Cass enables enterprises to achieve visibility, control and efficiency in their supply chains, communications networks, facilities and other operations. Disbursing $40 billion annually on behalf of clients, and with total assets of $1.5 billion, Cass is uniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly owned subsidiary, Cass Bank provides sophisticated financial exchange services to the parent organization and its clients. Cass is part of the Russell 2000®.
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 Securities and Exchange Commission including the company’s annual report on Form 10-K for the year ended December 31, 2014.