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Sep 30, 2021
Cass Q3 2021 Earnings Report
Cass reported a strong third quarter with increased diluted EPS and net income, driven by growth in transportation and facility-related volumes.
Key Takeaways
Cass Information Systems reported a 20% increase in third quarter diluted EPS to $0.48, up from $0.40 in the same period last year. Net income rose by 18% to $6.8 million. The company experienced growth in transportation and facility-related volumes, contributing to an 8% increase in revenues.
Third quarter revenue increased by 8% compared to the previous year.
Net income for the quarter rose by 18% year-over-year.
Transportation volumes for invoices and dollars increased by 8% and 40%, respectively.
Facility-related dollar volumes grew by 17% due to fewer pandemic-related restrictions and rising energy prices.
Cass
Cass
Forward Guidance
The board of directors authorized the repurchase of up to an additional 750,000 shares of common stock in future periods.
Positive Outlook
- Company's board of directors declared a fourth quarter dividend of $.28 per share
- Dividend is 4% higher than the previous rate of $.27 per share
- Company has continuously paid regularly scheduled cash dividends since 1934
- Company repurchased 435,000 shares of common stock for a total of $19.0 million over the first nine months of 2021
- Board's continued optimism about the company’s long-term prospects
Challenges Ahead
- The scope, duration and ultimate impact of the COVID-19 pandemic
- Economic and market conditions
- Risks of credit deterioration
- Interest rate changes
- Governmental actions