NASDAQ$CASS

Cass Information Systems Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Cass reported a decrease in earnings per share and net income due to the impact of COVID-19 and lower interest rates.

Cass Information Systems reported a decrease in third quarter earnings, with earnings per share at $0.40, a 29% decrease from 2019. Net income also decreased to $5.8 million, compared to $8.2 million in the previous year. The declines were attributed to the impact of COVID-19, lower interest rates, and lower energy prices.

  • Third quarter revenue decreased by 12% compared to the same period in 2019.
  • Net income for the quarter was down 29% compared to the prior year.
  • Transportation volumes are trending towards pre-COVID levels, driven by the manufacturing sector.
  • New customer wins are setting the stage for earnings recovery as the pandemic's negative impacts subside.

Headline financials

Total Revenue

$35.7M

Previous: $40.5M-11.8%
EPS (adj)

$0.40

Previous: $0.56-28.6%
Transportation Invoices

8.7M

Previous: 9.2M-6.2%
Transportation Volume

$6.82B

Previous: $7.1B-4.0%
Facility Expense Invoices

7.1M

Previous: 7.1M-0.4%
Facility Expense Volume

$3.6B

Previous: $4.12B-12.7%
Net Interest Margin

2.6%

Previous: 3.4%-23.4%
Capital Expenditures

-$1.71M

Previous: -$1.88M+9.2%
Free Cash Flow

$4.08M

Previous: $6.31M-35.4%
Net Income

$5.78M

Previous: $8.19M-29.4%
Operating Income

$34.1M

Previous: $38M-10.2%
Gross Profit

$35.7M

Previous: $40.5M-11.8%
Cash & Equivalents

$439M

Previous: $223M+97.3%
Total Assets

$2B

Previous: $1.78B+12.3%
Stock-Based Comp

$799K

Previous: $869K-8.1%

Revenue & EPS history

Cass · Revenue · Quarterly

$35.7M

Q3 2020-11.8%vs Q3 2019

Revenue by segment

Cass · $31.5M total across 2 segments · Q3 2023

  • Processing Fees
    $19.9M+5.1%
  • Financial Fees
    $11.6M+3.1%

Forward guidance

Cass expects recovery in earnings once the negative impacts of the pandemic subside, supported by new customer wins and a flexible business model.

Tailwinds

  • Team is navigating the significant challenges.
  • Company remains profitable and financially strong.
  • Being a flexible and reliable business partner is proving to be a critical benefit to our clients.
  • Continuing new customer wins sets the stage for a recovery in our earnings.
  • The board’s confidence in the company’s long-term prospects, underpinned by its strong capital base.

Headwinds

  • Impact of COVID-19 on Cass customers
  • Commitment of the U.S. Federal Reserve to hold interest rates at near-zero levels.
  • Lower energy prices
  • COVID-related bankruptcies and location closings
  • Governmental restrictions in the restaurant, retail and hospitality sectors curtailed normal activities which were reflected in lower utility usage.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.3%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.8%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+5.9%

Q3 2022

Best reaction

-13.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-2.0%-6.0%
Q4 2025+1.6%+3.6%+4.2%
Q3 2025+0.4%-0.6%+5.5%
Q2 2025-1.4%-0.8%-0.0%
Q1 2025-1.2%-0.8%+3.5%
Q4 2024+2.7%+2.6%+6.9%
Q3 2024-6.2%-3.9%+3.6%
Q2 2024-13.8%-11.3%-9.1%
Q1 2024-6.9%-3.9%+2.1%
Q4 2023+2.4%+2.9%+10.6%
Q3 2023-1.1%+1.7%+12.0%
Q2 2023+0.2%-2.2%+0.2%
Q1 2023-12.3%-13.1%-10.2%
Q4 2022+1.7%+2.2%+7.0%
Q3 2022+5.9%+7.9%+16.5%
Q2 2022+5.1%+9.0%+14.0%
Q1 2022+3.2%+4.3%-11.0%
Q4 2021+3.6%+6.5%+5.5%
Q3 2021+0.4%+0.1%+7.1%
Q2 2021-0.4%+1.2%+8.9%
Q1 2021+0.2%-1.7%-0.9%
Q4 2020+0.7%+4.1%+6.8%
Q3 2020+3.4%-3.7%+1.8%
Q2 2020-4.3%-6.5%-2.4%
Q1 2020+2.4%+13.4%+8.1%
Q4 2019-2.5%-2.4%-15.2%
Q3 2019+2.9%+8.9%+6.4%
Q2 2019+2.9%+3.7%-1.4%
Q1 2019+3.4%+1.0%-6.3%
Q4 2018-2.9%+1.0%+2.6%
Q3 2018+4.8%+10.8%+14.3%
Q2 2018-2.8%-2.9%+6.5%
Q1 2018-1.5%-1.0%+2.2%
Q4 2017-2.5%-4.5%+4.3%
Q3 2017+1.1%-0.2%+1.5%
Q2 2017-1.2%-3.8%-9.1%
Q1 2017-1.3%-2.2%-8.0%
Q4 2016+0.5%-3.2%-0.3%
Q3 2016+0.7%+2.7%+29.2%
Q2 2016-0.0%-2.3%+1.5%
Q1 2016+0.2%
Q4 2015+4.0%
Q3 2015+2.7%
Q2 2015-8.0%
Q1 2015+4.4%
Q4 2014-8.8%
Q3 2014+5.1%
Q2 2014-0.8%
Q1 2014+2.9%
Q4 2013-8.6%
Q3 2013+1.2%
Q2 2013+3.3%
Q1 2013-0.4%
Q4 2012-4.0%
Q3 2012-2.3%
Q4 2011+4.9%
Q2 2012+4.9%
Q1 2011-1.7%
Q1 2012+0.9%
Q4 2009+2.2%
Q3 2010+1.0%
Q3 2011+1.0%
Q2 2011-1.7%
Q2 2010-1.7%
Q4 2010-1.7%
Q1 2010-4.4%

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