Cass Information Systems, Inc · NASDAQ:CASS
Cass Information Systems — Q1 2021 Earnings Presentation
25 slides from Cass Information Systems's earnings presentation, 2021
Slide 1: The Power to Deliver Solutions
The Power to Deliver Solutions Around the world, leading enterprises rely on Cass for our vertical expertise, processing power, and global payment network to execute critical financial transactions while driving greater control and efficiency across critical business expenses. FIRST QUARTER 2021 INV
Slide 2: Contents
Contents Forward-Looking Statements 3 Cass at a Glance 4 Financial Highlights 6 Interest Rate Trends 7 Key Earnings Growth Strategies 8 Growth and Performance Trends 9 How Cass Creates Value 13 Shareholder Information 23 Board of Directors 24 Executive Officers 25 www.cassinfo.com | © 2021 Cass Info
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “poten
Slide 4: Cass At A Glance
Cass At A Glance TOTAL ASSETS MARKET CAP $2.2B $660M As of 3/31/21 As of 3/31/21 TOTAL REVENUE GLOBAL OPERATIONS $145M Global service locations For year ended 12/31/20 www.cassinfo.com | © 2021 Cass Infor mation Systems 4
Slide 5: About Cass
About Cass Cass is a leading provider of integrated information THE CASS MISSION and payment management solutions. Cass enables enterprises to achieve visibility, control, To be a strong, and efficiency in their supply chains, communications networks, facilities, and other operations. Disbursing mor
Slide 6: Five-Quarter Financial Highlights
Five-Quarter Financial Highlights Net Revenue Net Income Diluted Earnings/Share (in millions of dollars) (in millions of dollars) (in dollars) 7.5 7.1 0.52 0.49 38.1 6.4 33.9 35.7 37.1 37.1 5.4 5.8 0.40 0.44 Key Points: 0.37 Pandemic impacts were clearly felt in 2Q20, though performance has improved
Slide 7: 10-Year UST and Federal Funds Rate
10-Year UST and Federal Funds Rate 4.00 3.50 Key Points: 3.00 UST Rate A decline in interest 2.50 rates and/or an extended period of low rates has Percent 2.00 a negative impact on our revenue, as less interest income is earned on 1.50 our payables and deposit balances. 1.00 0.50 Federal Funds Rate
Slide 8: Key Earnings Growth Strategies
Key Earnings Growth Strategies Improve Achieve Improve Return on Organic Efficiency and Funding Core Growth Effectiveness Improve return on funding Achieve organic growth in Continue to evaluate options despite the persistent low our core business lines of to become more efficient and interest rate
Slide 9: Five-Quarter Transaction Growth
Five-Quarter Transaction Growth Key Points: Transportation Invoice Expense Management Payment and Processing Transaction Volume Invoice Transaction Fee Revenue Transportation volumes (in millions) Volume (in millions) (in millions of dollars) bottomed during 2Q20 8.95 8.78 7.12 6.96 7.00 and have si
Slide 10: Five-Year EPS Trend
Five-Year EPS Trend (diluted) Earnings per share (diluted) Dividends declared per share $0.60 Key Points: The pandemic caused $0.50 EPS to contract in 2020. $0.40 EPS has steadily improved from a low point in 2Q20 as volumes accelerated $0.30 from the height of the pandemic. $0.20 Dividends have inc
Slide 11: 10-Year CASS Stock Performance
10-Year CASS Stock Performance 70.00 60.00 Key Points: 50.00 While Cass stock price declined as a result of the negative impact the Share Price 40.00 pandemic had on our revenue and overall 30.00 profitability, recovery has been strong and steady starting in 2Q20. 20.00 10.00 - 2011 2012 2013 2014 2
Slide 12: Regulatory Capital
Regulatory Capital Key Points: Cass Commercial Bank Cass Information Systems Basel III Requirement All regulatory capital 21.22% levels are strong Common Equity Tier 1 Risk-Based at March 31, 2021 and 20.17% well above Basel III requirements. 21.22% Tier 1 Risk-Based Cass Information 20.17% Systems
Slide 13: How Cass Creates Value
How Cass Creates Value At Cass, we provide the means to accept We are the trusted third party, validating highly diverse inputs spanning paper, digitized pricing and contractual agreements. documents, digital data, and data feeds in We are recognized by the high level of multiple formats. service we
Slide 14: Freight Audit and Payment
Freight Audit and Payment Description of Business Value Proposition Multi-national corporations rely on Cass to We empower our customers to understand, control, provide increasingly sophisticated solutions and optimize their transportation costs. Clients that enable best practices in transportation
Slide 15: Shippers Who Trust Cass
FREIGHT AUDIT AND PAYMENT Shippers Who Trust Cass www.cassinfo.com | © 2021 Cass Infor mation Systems 15
Slide 16: Facility Expense Management Services
Facility Expense Management Services Description of Business Value Proposition Cass processes and pays customers’ invoices Clients rely on accurate utility usage and cost data to for electricity, gas, water, and waste, plus make informed risk management and expense more than 50 other facility-relate
Slide 17: Telecom, Mobility, and Cloud Expense Management
Telecom, Mobility, and Cloud Expense Management Description of Business Value Proposition Cass delivers outsourced, value-added Clients choose Cass’s telecom and cloud management solutions for telecom expense management solutions to achieve multiple cross-functional objectives. (TEM), managed mobili
Slide 18: Major Customers
TELECOM, MOBILITY, and CLOUD EXPENSE MANAGEMENT Major Customers www.cassinfo.com | © 2021 Cass Infor mation Systems 18
Slide 19: Integrated Financial Solutions
Integrated Financial Solutions Description of Business Value Proposition The Cass Integrated Financial Solutions (IFS) Our clients leverage the combination of our sophisticated group develops and markets solutions for platform and payment processing abilities to achieve companies who initiate or rec
Slide 20: Major Customers
INTEGRATED FINANCIAL SOLUTIONS Major Customers www.cassinfo.com | © 2021 Cass Infor mation Systems 20
Slide 21: Cass Commercial Bank
Cass Commercial Bank Description of Business Value Proposition Cass Commercial Bank provides customized Cass Bank clients rely on our value-added approach to financial services products, on a national level banking partnerships that leads to trusted advisor to faith-based ministries and McDonald’s r
Slide 22: Gyve Generosity Services
Gyve Generosity Services Description of Business Value Proposition Gyve Generosity Services provides the Using the Gyve platform, faith-based organizations can resources, tools, vision, and coaching that offer their members six new, modern methods for enable faith-based organizations to increase cha
Slide 23: Shareholder Information
Shareholder Information CORPORATE HEADQUARTERS INVESTOR RELATIONS TRANSFER AGENT Cass Information Systems, Inc. Security analysts, investment Shareholder correspondence 12444 Powerscourt Drive, Suite 550 managers, and others seeking should be mailed to: Saint Louis, Missouri 63131 financial informat
Slide 24: Board of Directors
Board of Directors Eric H. Brunngraber Benjamin F. (Tad) Edwards, IV Joseph D. Rupp Chairman, President, and Chairman, Chief Executive Lead Director and Retired Chairman, Chief Executive Officer Officer, and President, President, and Chief Executive Officer, Benjamin F. Edwards & Company Olin Corpor
Slide 25: Executive Officers
Executive Officers Eric H. Brunngraber Dwight D. Erdbruegger Martin H. Resch Chairman, President, and President, Cass Executive Vice President Chief Executive Officer Commercial Bank and Chief Operating Officer Mark A. Campbell Gary B. Langfitt Matthew S. Schuckman President, Transportation Presiden
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