“We are delighted to reportall-time high record earnings for the third consecutive year. Achieving 21% growthyear-to-year and surpassing $30 million in net income represent milestone accomplishments,” statedEric H.Brunngraber, Cass chairman and chief executive officer. “We continue to take advantage of both the improved economic conditions and recent tax reform to make internal investments that will position the company to capitalize on future growth opportunities.”
2018 4th Quarter Recap
The increases in revenue and net income of 9% and 32%, respectively, were driven by new customer wins; increased business from existing customers; the development and deployment of new revenue generating services; and higher interest rates. Additionally, the growth in net income was enhanced by the 2017one-time,non-cash charge of $1,824,000 due to tax reform. The double-digit bottom-line advances were attained even as Cass continued to invest in personnel, technology and infrastructure to support future service growth.
Highlighting fourth quarter performance was a 12% increase in transportation dollar volume. Higher carrier and fuel prices in concert with higher volume from current accounts produced the positive result. Transportation invoice volume for the period was up 3%.
Facility-related (electricity, gas, waste and telecom expense management) dollar volume was up 11% with facility expense transaction volume up 2%. Again, new customer wins plus increased volume from current accounts generated the favorable outcome.
Consolidated operating expenses increased $3.6 million (14%) due mainly toon-going strategic investment in the technology and staff required to win new business and support service growth with existing clients.
Cash Dividend Declared
On January 29, 2019, the company’s board of directors declared a first quarter dividend of $.26 per share payable March 15, 2019 to shareholders of record March 5, 2019. Cass has continuously paid regularly scheduled cash dividends since 1934.
