Exhibit 99.1
Contact: Contact Kenn Entringer at Casey Communications, Inc., (314) 721-2828kentringer@caseycomm.com
April 16, 2007
Cass Information Systems Reports
1st Quarter 2007 Earnings
ST. LOUIS –Cass Information Systems, Inc. (NASDAQ: CASS),the nation's leading provider of transportation, utility and telecom invoice payment and information services, reported first quarter 2007 earnings of $ .49 per fully diluted share, a 4.3% increase over the $.47 per fully diluted share it earned in the first quarter of 2006. Net income for the period was $ 4,186,000 compared to $3,952,000 in 2006.
Higher utility transaction volume, which boosted processing fees, and an increase in dollars processed provided the first quarter results.
Revenues for first quarter 2007 were $21,623,000, an 8% increase over the year-earlier period. Payment and processing fees for the quarter were up 16% over the prior year to $11,249,000, primarily due to a rise in utility transaction volume related mainly to new business.
Net investment income was $9,760,000, a 3% increase over 2006. The increase stemmed primarily from an increase in dollars processed.
Total operating expenses were $15,333,000, 11% higher than the year-earlier period and primarily due to the growth in processing activity. Salaries and benefits were up 12%, to $11,539,000, reflecting staff growth for current and anticipated new volume.
Lawrence A. Collett, Cass chief executive officer and chairman, stated “the increase in first quarter earnings were actually slightly higher than anticipated. The first quarter results were not as
significant as we expect the remainder of the year to be primarily due to slowness in shipping activity throughout the nation. This is seen primarily in the large manufacturing segments. As the year progresses, new business being implemented will provide higher growth in the transaction activity and associated revenues.”
Selected Consolidated Financial Data
The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended March 31, 2007 and 2006.
| | | | | | | | |
| | | Quarter Ended 3/31/07 | | | Quarter Ended 3/31/06 | |
| | |
Transportation Core Invoice Volume | | | 6,064 | | | | 5,994 | |
| | |
Transportation Dollar Volume | | $ | 3,411,394 | | | $ | 3,450,076 | |
| | |
Utility Transaction Volume | | | 2,240 | | | | 1,503 | |
| | |
Utility Dollar Volume | | $ | 1,774,004 | | | $ | 1,374,215 | |
| | |
Payment and Processing Fees | | $ | 11,249 | | | $ | 9,688 | |
Net Investment Income | | | 9,760 | | | | 9,491 | |
Gains on Sales of Investment Securities | | | — | | | | — | |
Other | | | 614 | | | | 778 | |
| | | | | | | | |
Total Revenues | | $ | 21,623 | | | $ | 19,957 | |
| | | | | | | | |
Salaries and Benefits | | $ | 11,539 | | | $ | 10,270 | |
Occupancy | | | 490 | | | | 455 | |
Equipment | | | 812 | | | | 653 | |
Other | | | 2,492 | | | | 2,491 | |
| | | | | | | | |
Total Operating Expenses | | $ | 15,333 | | | $ | 13,869 | |
| | | | | | | | |
Income before Income Taxes | | $ | 6,290 | | | $ | 6,088 | |
| | |
Provision for Income Taxes | | | 2,104 | | | | 2,136 | |
| | | | | | | | |
Net Income | | $ | 4,186 | | | $ | 3,952 | |
| | | | | | | | |
Average Earning Assets | | $ | 779,623 | | | $ | 743,472 | |
| | |
Net Interest Margin | | | 5.47 | % | | | 5.46 | % |
| | |
Allowance for Loan Losses to Loans | | | 1.29 | % | | | 1.18 | % |
| | |
Non-performing Loans to Total Loans | | | .14 | % | | | .26 | % |
| | |
Net Loan Charge-offs to Loans | | | — | | | | .04 | % |
| | |
Provision for Loan Losses | | $ | 225 | | | $ | 150 | |
| | |
Non-performing Loans | | $ | 764 | | | $ | 1,385 | |
| | |
Basic Earnings per Share | | $ | .50 | | | $ | .47 | |
| | |
Diluted Earnings per Share | | $ | .49 | | | $ | .47 | |
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 $19 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 ofCass Commercial Bank,founded in 1906, makes Cass Information Systems unique in the industry. Cass is part of theRussell 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, 2006.
