Cass Information Systems (CASS) Q4 2003 earnings summary

Executive summary

• 2003 net income was $7.902M; payment and processing fees rose 16% as transaction volume increased 12% to 27.977M.ocument-source]2[/document-source]

• Growth in processing and software revenue was offset by lower net interest income amid declining rates; 2004 priorities include expanding services and maintaining loan quality and liquidity.ocument-source]2[/document-source]

Financial highlights

• Fee revenue and other income reached $40.067M in 2003; payment and processing revenue rose $3.818M to $28.440M.ocument-source]2[/document-source]

• Net interest income after loan-loss provision was $26.192M, down 9% YoY; net income was $7.902M versus $7.312M in 2002.ocument-source]2ocument-source]11[/document-source]

• Operating expenses were $54.904M; excluding GEMS consolidation effects, expenses increased 2% to $47.571M.ocument-source]2[/document-source]

• Basic EPS was $2.15 and diluted EPS $2.13 for FY 2003, restated for the 10% stock dividend declared in February 2004.ocument-source]11[/document-source]

Outlook and guidance

• Management expected payment and information processing expansion to continue in 2004, supported by technology and integrated payment controls.ocument-source]2[/document-source]

• Low interest rates were expected to persist near term; management viewed the balance sheet as positioned to benefit when rates rise.ocument-source]2[/document-source]

• Cash, maturing investments and operating cash flow were expected to fund 2004 operations and capital expenditures.ocument-source]6[/document-source]

• Additional investment in GEMS and continued refinement of risk management and loan portfolio oversight were planned.ocument-source]2[/document-source]