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Cass Information Systems, Inc. Reports Record 3rd Quarter 2010 Earnings; Increases Dividend 14%

^{Published on 2010-10-21 05:06:31 - Market Wire}
 

ST. LOUIS--([ BUSINESS WIRE ])--[ Cass Information Systems, Inc. (NASDAQ: CASS), ]the nation's leading provider of transportation, utility and telecom invoice payment and information services, reported record third quarter 2010 earnings of $.59 per diluted share, a 28% increase over the $.46 per diluted share it earned in the third quarter of 2009. Net income for the period was $5.6 million, a 29% increase over the $4.3 million reported in 2009.

"The company remains well positioned to take advantage of improving economic conditions and we continue to focus on strengthening our competitive position in the markets we serve."

2010 3rd Quarter Recap

Increased activity from both base customers and new customers helped transportation transaction dollar volume surge more than 26%, with utility transaction dollar volume up a solid 13%. Overall, revenues for the quarter grew to $24.7 million, a 12% increase over the $22.0 million posted in 2009.

Operating expenses were up 4%, or $732,000, primarily as a response to the increase in volume along with additional incentive compensation related to the increase in pre-tax income from operations.

Nine-Month 2010 Recap

For the nine months ended September 30, 2010, the company earned $1.61 per fully diluted share, a 27% increase over the $1.27 per fully diluted share earned in the comparable period in 2009. Net income was $15.2 million, 28% higher than the $11.9 million earned in 2009. Revenues rose 9%, from $65.4 million in 2009 to $71.2 million in 2010.

Operating expenses were up 1% compared to 2009.

aOur record results in the third quarter were generated by the strong performance of each of our businesses a" transportation, utility and telecom invoice processing plus our commercial bank subsidiary,a said Eric H. Brunngraber, Cass president and chief executive officer. aThe company remains well positioned to take advantage of improving economic conditions and we continue to focus on strengthening our competitive position in the markets we serve.a

Cash Dividend Increased by 14%

On October 18, 2010, the companya™s board of directors declared a fourth quarter dividend of $.16 per share payable December 15, 2010 to shareholders of record December 3, 2010. This represents a 14% increase over the prior dividend. aThe increase reflects the companya™s solid capital base, its strong performance and the boarda™s optimism about our future,a said Brunngraber.

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 companya™s actual results, see the companya™s reports filed from time to time with the Securities and Exchange Commission including the companya™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 September 30, 2010 and 2009: