Cass Information Systems (CASS) Q4 2001 earnings summary

Executive summary

• FY 2001 revenue rose 6.2% to $55.493M; diluted EPS increased 6.4% to $2.15, while net income declined 1.7% to $7.025M.

• Total assets reached $600.875M at year-end; processing volumes grew across business lines despite recessionary conditions and sharply lower freight activity.

Financial highlights

• Total revenue was $55.493M versus $52.244M in 2000; payment and processing revenue was $21.490M versus $19.424M.

• Net income was $7.025M versus $7.147M; basic EPS was $2.18 versus $2.05 and diluted EPS was $2.15 versus $2.02.

• Income before tax was $10.764M versus $11.008M; total expenses increased to $44.729M from $41.236M.

• Invoices paid rose 9.9% to 22.527M and dollar volume paid increased 8.5% to $9.18B.

Outlook and guidance

• 2002 priorities include expanded U.S. and Canadian freight payment coverage into Mexico and Europe, plus added parcel-shipment management capabilities.

• Utility Payables targeted significant transaction-volume growth in 2002, supported by system upgrades, expanded data capture and reseller initiatives.

• Sales and marketing activity and the sales force were expanded to pursue market share and growth, with management emphasizing protection of long-term value.

• Lower shipping activity and interest rates were expected to weigh on freight-processing volumes and yields from loan and investment portfolios.