Cass Reports 30% Increase in Diluted EPS in Q2 2021

23 July 2021

ST. LOUIS – Cass Information Systems, Inc. (Nasdaq: CASS), the leading provider of transportation, energy, telecom and waste invoice payment and information services, reported second quarter 2021 earnings of $.48 per diluted share, an increase of 30% from the $.37 per diluted share it earned in the second quarter of 2020. Net income for the period was $7.0 million, an increase of 29% from the $5.4 million earned in the same period in 2020.

  2nd Quarter Year-to-date



% Change



% Change
Transportation Invoice Volume 9.5 million 7.3 million 29.7 18.2 million 15.6 million 17.2
Transportation Dollar Volume $8.9 billion $5.7 billion 56.9 $16.8 billion $12.2 billion 38.5
Facility-related Transaction Volume* 6.8 million 6.7 million 1.8 13.8 million 13.2 million 4.6
Facility-related Dollar Volume* $3.7 billion $3.1 billion 19.4 $7.4 billion $6.5 billion 13.1
Revenues $38.4 million $33.9 million 13.2 $75.5 million $72.1 million 4.8
Net Income $7.0 million $5.4 million 29.2 $14.1 million $13.0 million 8.6
Diluted Earnings Per Share $.48 $.37 29.7 $.97 $.89 9.0

*Includes Energy, Telecom and Waste


2021 2nd Quarter Recap

Second quarter revenue and net income increased 13% and 29%, respectively, compared to the second quarter of 2020 when the negative economic impact of the pandemic was most pronounced on Cass and its customers.

Transportation volumes for invoices and dollars rose 30% and 57%, respectively. The increases were driven by the stronger performance of the manufacturing sector plus new customer wins. A factor contributing to the dramatic increase in dollar volume was scarcity in carrier supply, which drove prices higher.

Facility-related (electricity, gas, waste, and telecom expense management) invoice and dollar volume grew 2% and 19%, respectively, with the increases attributable in part to new business wins in the telecom division. Dollar volumes also improved due to significantly fewer pandemic-related restrictions in the restaurant, retail, and hospitality sectors, creating higher utility usage.

Revenues increased 13% due to the aforementioned increase in invoice and dollar volumes and a positive change in the provision for credit losses of $1.0 million reflecting excellent credit quality and improved economic conditions, partially offset by the negative impact of the prevailing market interest rate environment which has led to the decline in our net interest margin from 2.88% to 2.30%.

Consolidated operating expenses were $2.4 million (9%) higher as personnel expense increased due to the increases in transportation and facility-related transaction volumes.

“While we continue to contend with historically low interest rates which suppress our ability to earn interest income on record dollar volumes in transportation, it is exciting to see transaction and dollar volumes rise throughout our business,” noted Eric H. Brunngraber, Cass chairman and chief executive officer. “While the volume increases are somewhat tied to a recovering economy, they also reflect our ability to generate new customer wins and expand our revenue base through strategic investments in payment platforms.”

2021 First Half Recap

For the six-month period ended June 30, 2021, Cass earned $.97 per diluted share, an increase of 9% from the $.89 per diluted share it earned in the same period in 2020. Net income also increased 9% to $14.1 million, compared to $13.0 million in 2020. Revenues rose to $75.5 million, 5% higher than the $72.1 million produced in 2020.

Cash Dividend Declared

On July 20, 2021, the company’s board of directors declared a third quarter dividend of $.27 per share payable September 15, 2021 to shareholders of record September 3, 2021. Cass has continuously paid regularly scheduled cash dividends since 1934.

“Our history of dividend payments combined with the return of more than $5 million to shareholders through share repurchase activity this year 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®. 


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