Exhibit 99.1
February 4, 2005
Cass Information Systems, Inc. Reports
18% Increase in 4th Quarter 2004 Earnings
ST. LOUIS - Cass Information Systems, Inc. (NASDAQ: CASS), the nation's
leading provider of freight and utility invoice payment, rating, auditing and
information services, reports that it earned 67 cents per fully diluted share in
the fourth quarter of 2004, an 18% increase over 2003 fourth quarter earnings of
57 cents per fully diluted share. Net income for the period was $2,485,000, a
17% increase over the $2,123,000 reported in the fourth quarter of 2003.
4th Quarter 2004
Contributing to the higher quarterly earnings was a 7% increase in overall
processing fees, driven primarily by the PROFITLAB, INC. acquisition. Completed
in August 2004, the acquisition is expanding the company's processing
capabilities in the telecommunications arena. A marked increase in freight
processing fees also enhanced income.
Investment income was up a strong 13% due primarily to higher balances
generated by a 14% increase in freight invoice dollars processed and continued
growth in bank deposits. Higher interest rates also contributed to the growth in
net investment income.
Finally, the company recorded a $604,000 gain on the sale of securities in
the quarter. No securities were sold in the fourth quarter of 2003.
These positive outcomes were partially offset by the results at the
company's software subsidiary, which suffered a $414,000 revenue decline
compared to the fourth quarter of 2003.
The PROFITLAB acquisition and expenses related to the bank's expansion
into southern California also impacted quarterly earnings by boosting
company-wide operating expenses by 8%.
2004 Summary
For the year ending Dec. 31, 2004, Cass posted earnings of $2.15 per fully
diluted share, compared with the $2.13 per fully diluted share it earned in
2003. Net income was $8,005,000 in 2004, compared to $7,902,000 in 2003.
Highlighting 2004 was the on-going ability of Cass to steadily grow its
utility invoice processing operation by registering a 13% increase in the number
of items processed and an 11% increase in their dollar value compared to 2003.
Company-wide fees from invoice processing grew 8%, while investment income was
up 3% owing to higher account balances and rising interest rates. Operating
expenses were also held in check, with Cass posting a less than 1% increase.
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Overall, gains on the sale of securities were $409,000 less in 2004 than
the previous year.
Selected Consolidated Financial Data
The following table presents selected unaudited consolidated financial data (in
thousands, except share and per share data) for the periods ended December 31,
2004 and 2003.
Quarter Quarter Year Year
Ended Ended Ended Ended
12/31/04 12/31/03 12/31/04 12/31/03
Transportation Invoice Volume 6,072 6,001 23,526 23,359
Transportation Dollar Volume $2,578,590 $2,256,947 $9,752,203 $8,673,993
Utility Transaction Volume 1,324 1,251 5,198 4,618
Utility Dollar Volume $ 885,203 $ 847,302 $3,700,665 $3,340,375
Payment and Processing Fees $ 7,822 $ 7,293 $ 30,695 $ 28,440
Software Revenue 1,411 1,825 5,157 7,696
Net Investment Income 7,494 6,604 27,088 26,192
Gain on Sale of Debt Securities 604 -- 1,045 1,454
Other 632 642 2,307 2,477
---------- ---------- ---------- ----------
Total Revenues $ 17,963 $ 16,364 $ 66,292 $ 66,259
Salaries and Benefits $ 10,161 $ 9,126 $ 38,198 $ 37,152
Occupancy 486 442 1,840 1,782
Equipment 804 1,128 3,692 4,478
Other 2,983 2,660 11,295 11,492
---------- ---------- ---------- ----------
Total Operating Expenses $ 14,434 $ 13,356 $ 55,025 $ 54,904
Income before Income Taxes $ 3,529 $ 3,008 $ 11,267 $ 11,355
Provision for Income Taxes $ 1,044 $ 885 $ 3,262 $ 3,453
Net Income $ 2,485 $ 2,123 $ 8,005 $ 7,902
Average Earning Assets $ 682,937 $ 606,189 $ 643,847 $ 563,071
Net Interest Margin 4.59% 4.57% 4.48% 4.85%
Allowance for Loan Losses to Loans 1.21% 1.17% 1.21% 1.17%
Non-performing Loans to Total Loans .11% .94% .11% .94%
Net Loan Charge-offs to Average Loans -- -- -- --
Provision for Loan Losses $ 50 $ 100 $ 550 $ 190
Non-performing Loans $ 538 $ 4,393 $ 538 $ 4,393
Basic Earnings per Share $ .68 $ .57 $ 2.18 $ 2.15
Diluted Earnings per Share $ .67 $ .57 $ 2.15 $ 2.13
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About Cass Information Systems
Cass has been a leading provider of payables services and information
support systems to companies throughout North America since 1956. The company
pays over $13 billion annually in freight and utility invoices on behalf of its
customers from processing centers in St. Louis, Mo., Columbus, Ohio and Boston,
Mass. The support of its bank subsidiary, Cass Commercial Bank, founded in 1906,
makes the company unique in the industry.
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
referenced 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 annual report on Form 10-K for the year ended
December 31, 2003.