EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

Contact: Contact Kenn Entringer at Casey Communications, Inc., (314) 721-2828

kentringer@caseycomm.com

July 22, 2010

Cass Information Systems, Inc. Reports Record

2nd Quarter 2010 Earnings; 33% Increase over Q2 2009

Also Declares Regular Quarterly Dividend

ST. LOUISCass Information Systems, Inc. (NASDAQ: CASS), the nation’s leading provider of transportation, utility and telecom invoice payment and information services, reported record second quarter 2010 earnings of $.52 per fully-diluted share, a 33% increase over the $.39 per fully diluted share it earned in the second quarter of 2009. Net income for the period was $4.9 million, a nearly 34% increase over the $3.7 million reported in 2009.

 

     2nd Quarter    %     YTD    %  
     2010    2009    Change     2010    2009    Change  

Transportation Dollar Volume

   $ 4.2 billion    $ 3.4 billion    23.6   $ 8.0 billion    $ 6.8 billion    17.5

Utility Dollar Volume

   $ 2.5 billion    $ 2.3 billion    8.3   $ 5.1 billion    $ 4.8 billion    6.3

Revenues

   $ 23.8 million    $ 21.7 million    9.2   $ 46.5 million    $ 43.4 million    7.1

Net Income

   $ 4.9 million    $ 3.7 million    33.8   $ 9.6 million    $ 7.6 million    27.2

Diluted Earnings per Share

   $ .52    $ .39    33.3   $ 1.02    $ .81    25.9

2010 2nd Quarter Recap

Increased activity from both base customers and new customers helped transportation transaction dollar volume surge more than 23%, with utility transaction volume up a steady 8%. Overall, revenues for the quarter grew to $23.8 million, a 9% increase over the $21.7 million posted in 2009.


Operating expenses were up less than 1%, or $53,000, as Cass continued to concentrate on cost control.

Six-Month 2010 Recap

For the six months ended June 30, 2010, the company earned $1.02 per fully diluted share, a 26% increase over the $.81 per fully diluted share earned in the first half of 2009. Net income was $9.6 million, 27% higher than the $7.6 million earned in 2009. Revenues rose 7%, from $43.4 million in 2009 to $46.5 million in 2010.

Operating expenses were essentially flat compared to 2009.

“Posting our record results in the second quarter was even more gratifying with all of our businesses – transportation, utility and telecom invoice processing plus our commercial bank subsidiary – making positive contributions,” said Eric H. Brunngraber, Cass president and chief executive officer. “We believe the company is solidly positioned to capitalize on improving economic conditions. Our continuing focus will be on strategies that promise to enhance our competitive position in the markets we serve.”

Cash Dividend Declared

On July 19, 2010, the company’s board of directors declared a third quarter dividend of $.14 per share payable September 15, 2010 to shareholders of record September 3, 2010. Cass has continuously paid regularly scheduled cash dividends since 1934.

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 services and information support business since 1956, disburses over $24 billion annually on behalf of customers from processing centers in St. Louis, Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C. and Wellington, Kansas. The support of Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry. Cass is part of the Russell 2000® Index and ranked #65 on the 2009 Fortune Small Business FSB 100 list of the fastest-growing public companies in America.


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, 2009.


Selected Consolidated Financial Data

The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended June 30, 2010 and 2009:

 

     Quarter
Ended
6/30/10
    Quarter
Ended
6/30/09
    Six Months
Ended
6/30/10
    Six Months
Ended
6/30/09
 

Transportation Invoice Volume

     6,716        5,716        12,733        11,111   

Transportation Dollar Volume

   $ 4,193,903      $ 3,391,822      $ 7,962,844      $ 6,778,562   

Utility Transaction Volume

     3,045        2,823        6,100        5,653   

Utility Dollar Volume

   $ 2,451,775      $ 2,263,404      $ 5,059,874      $ 4,759,101   

Payment and Processing Fees

   $ 13,533      $ 12,036      $ 26,278      $ 23,980   

Net Investment Income

     9,782        9,144        19,334        18,246   

Gain on Sales of Securities

     —          83        —          202   

Other

     435        479        915        1,018   
                                

Total Revenues

   $ 23,750      $ 21,742      $ 46,527      $ 43,446   
                                

Salaries and Benefits

   $ 12,683      $ 12,730      $ 25,173      $ 25,179   

Occupancy

     611        571        1,183        1,186   

Equipment

     916        833        1,814        1,674   

Other

     2,640        2,663        4,877        5,048   
                                

Total Operating Expenses

   $ 16,850      $ 16,797      $ 33,047      $ 33,087   
                                

Income from Operations before Income Taxes

   $ 6,900      $ 4,945      $ 13,480      $ 10,359   

Provision for Income Taxes

     2,000        1,284        3,831        2,775   
                                

Net Income

   $ 4,900      $ 3,661      $ 9,649      $ 7,584   
                                

Basic Earnings per Share

   $ .52      $ .40      $ 1.03      $ .83   
                                

Diluted Earnings per Share

   $ .52      $ .39      $ 1.02      $ .81   
                                

Average Earning Assets

   $ 1,017,818      $ 831,669      $ 1,001,350      $ 817,884   

Net Interest Margin

     4.77     5.02     4.77     5.16

Allowance for Loan Losses to Loans

     1.49     1.14     1.49     1.14

Non-performing Loans to Total Loans

     .22     .32     .22     .32

Net Loan (Recoveries) Charge-offs to Loans

     —          (.01 )%      .03     .03

Provision for Loan Losses

   $ 1,150      $ 300      $ 2,050      $ 700