Cass Information Systems, Inc. Reports 2nd Quarter 2012 Earnings
ST. LOUIS, July 19, 2012 (BUSINESS WIRE) - Cass Information Systems, Inc. (NASDAQ:CASS), the nation's leading provider of transportation, utility, telecom and environmental invoice payment and information services, reported record second quarter 2012 earnings of $.57 per diluted share, a 4% increase over the $.55 per diluted share it earned in the second quarter of 2011. Net income for the period was $6.0 million, a 4% increase over the $5.7 million reported in 2011.
2012 2nd Quarter Recap
Transportation dollar volume increased more than 7%. Utility dollar volume was down 4% primarily due to generally mild weather across most of North America which decreased consumption. Overall, revenues for the quarter grew to $28.4 million, a 7% increase over the $26.6 million posted in 2011.
Net investment income decreased $.7 million, or 6%, primarily due to historically low interest rates.
Overall operating expenses were up $1.6 million, or 9%, primarily due to costs related to the integration of the company’s new environmental expense service line following its acquisition of Jacksonville, Fla.-based Waste Reduction Consultants, Inc. in January.
Six-Month 2012 Recap
For the six-month period ended June 30, 2012, the company earned $1.13 per diluted share, a 3% increase over the $1.10 per diluted share earned in the first half of 2011. Net income was $11.9 million, 4% higher than the $11.5 million earned in 2011. Revenues rose 8%, from $52.7 million in 2011 to $56.8 million in 2012.
Operating expenses were up 10%, or $3.8 million, for the reasons previously cited.
“Although sluggish economic activity and historically low interest rates present a difficult operating environment,” said Eric H. Brunngraber, Cass president and chief executive officer, “it is rewarding to see our progress on those things that we can control, such as initiatives that promise revenue growth over the long term. Our recent investment in Waste Reduction Consultants, which diversifies the Cass service portfolio, is a good example. Our strong balance sheet and ability to generate positive earnings results, despite the low interest rates, is encouraging.”
Cash Dividend Declared
On July 16, 2012, the company’s board of directors declared a third quarter dividend of $.17 per share payable September 14, 2012 to shareholders of record September 5, 2012. Cass has continuously paid regularly scheduled cash dividends since 1934.
About Cass Information Systems
Cass Information Systems is the leading provider of transportation, utility, telecom and environmental invoice payment and information services. The company, which has been involved in the payables services and information support business since 1956, disburses $32 billion annually on behalf of customers from locations in St. Louis, Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C., Wellington, Kansas, and Jacksonville, Fla. 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.
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, 2011.
For additional Q2 financial data, click here.