Cass Reports 20% Increase in Third Quarter Diluted EPS

30 October 2021

Boosts Dividend by 4%; Augments Share Repurchase Program

ST. LOUIS--(BUSINESS WIRE)--Oct. 21, 2021-- Cass Information Systems, Inc. (Nasdaq: CASS), the leading provider of transportation, energy, telecom and waste invoice payment and information services, reported third quarter 2021 earnings of $.48 per diluted share, an increase of 20% from the $.40 per diluted share it earned in the third quarter of 2020. Net income for the period was $6.8 million, an increase of 18% from the $5.8 million earned in the same period in 2020.

  3rd Quarter Year-to-date



% Change



% Change
Transportation Invoice Volume 9.3 million 8.7 million 7.8 27.6 million 24.2 million 13.8
Transportation Dollar Volume $9.5 billion $6.8 billion 39.8 $26.4 billion $19.0 billion 39
Facility-related Transaction Volume* 6.7 million 7.1 million (6.2) 20.5 million 20.3 million 0.8
Facility-related Dollar Volume* $4.2 billion $3.6 billion 17.2 $11.6 billion $10.1 billion 14.5
Revenues $38.7 million $35.7 million 8.2 $114.2 million $107.8 million 5.9
Net Income $6.8 million $5.8 million 17.7 $20.9 million $18.8 million 11.4
Diluted Earnings Per Share $.48 $.40 20.0 $1.45 $1.29 12.4

*Includes Energy, Telecom and Waste


2021 3rd Quarter Recap

Third quarter revenue and net income increased 8% and 18%, respectively, compared to the third quarter of 2020 when the negative economic impact of the pandemic was more significantly impacting Cass and its customers.

Transportation volumes for invoices and dollars rose 8% and 40%, respectively. The increases were driven by the stronger performance of the manufacturing sector in addition to organic new customer growth. Also contributing to the dramatic increase in dollar volume was scarcity in carrier supply, which continues to drive prices higher.

Facility-related (electricity, gas, waste and telecom expense management) dollar volumes grew 17% primarily due to significantly fewer pandemic-related restrictions in the restaurant, retail and hospitality sectors, creating higher utility usage in addition to rising energy prices.

Revenues increased 8% primarily due to the aforementioned increase in dollar volumes. The increase in dollar volumes boosted payment and processing financial fees in addition to assisting in the increase in average interest-earning assets of 17%, which had the result of increasing net interest income. These positive factors were partially offset by the negative impact of the prevailing interest rate environment which has led to the decline in Cass net interest margin from 2.59% to 2.32%.

Consolidated operating expenses increased 7% due to the increase in transportation transaction volumes and strategic investment in various technology initiatives.

“We are delighted with the significant improvement in our profitability compared to the prior year primarily attributed to a robust increase in transportation dollar volumes,” noted Eric H. Brunngraber, Cass chairman and chief executive officer. “As a leader in the freight audit and payment space, we have been fortunate to experience growing demand for these important services which are even more vital amidst a backdrop of supply chain challenges.”

2021 Nine-Month Recap

For the nine-month period ended September 30, 2021, Cass earned $1.45 per diluted share, an increase of 12% from the $1.29 per diluted share it earned in the same period in 2020. Net income increased 11% to $20.9 million, compared to $18.8 million in 2020. Revenues rose to $114.2 million, 6% higher than the $107.8 million produced in 2020.

4% Increase in Cash Dividend

On October 19, 2021, the company’s board of directors declared a fourth quarter dividend of $.28 per share payable December 15, 2021 to shareholders of record December 3, 2021. The new quarterly dividend is one cent, or 4%, higher than the previous rate of $.27 per share. Cass has continuously paid regularly scheduled cash dividends since 1934.

Stock Repurchases

Over the first nine months of 2021, the company repurchased 435,000 shares of common stock for a total of $19.0 million. In addition, on October 19, 2021, the company’s board of directors authorized the repurchase of up to an additional 750,000 shares of common stock in future periods.

“The increase in our dividend combined with the return of more than $20 million to shareholders through stock repurchase activity over the past 12 months reflects our solid operating performance, strong capital base and the board’s continued optimism about the company’s long-term prospects,” said 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 over $60 billion annually on behalf of clients, and with total assets of $2 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®. More information is available at