UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): April 15, 2013
CASS INFORMATION SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
| Missouri | 000-20827 | 43-1265338 | ||
| (State or other jurisdiction of | (Commission | (I.R.S. Employer | ||
| incorporation or organization) | File Number) | Identification No.) |
| 12444 Powerscourt Drive, Suite 550 | ||
| St. Louis, Missouri | 63131 | |
| (Address of principal executive offices) | (Zip Code) |
(314) 506-5500
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act. |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act. |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. |
| Item 2.02. | Results of Operations and Financial Condition. |
On April 15, 2013, Cass Information Systems, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter of fiscal 2013. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information reported under this Item 2.02 of Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit |
Description | |
| 99.1 | Press release issued by Cass Information Systems, Inc. dated April 15, 2013. | |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 15, 2013
| CASS INFORMATION SYSTEMS, INC. | ||
| By: | /s/ Eric H. Brunngraber | |
| Name: | Eric H. Brunngraber | |
| Title: | President and Chief Executive Officer | |
| By: | /s/ P. Stephen Appelbaum | |
| Name: | P. Stephen Appelbaum | |
| Title: | Executive Vice President and Chief Financial Officer | |
3
Exhibit 99.1
Contact: Contact Kenn Entringer at Casey Communications, Inc., (314) 721-2828
kentringer@caseycomm.com
April 15, 2013
Cass Information Systems, Inc. Reports 1st Quarter 2013 Earnings
Net Income Up 2% Compared to 1st Quarter of 2012
ST. LOUIS – Cass Information Systems, Inc. (NASDAQ: CASS), the nation’s leading provider of transportation, energy, telecom and environmental invoice payment and information services, reported first quarter 2013 earnings of $.52 per diluted share, a 2% increase over the $.51 per diluted share it earned in the first quarter of 2012. Net income for the period was $6.0 million, 2% higher than the $5.9 million reported in 2012.
2013 1st Quarter Recap
| March 31, 2013 | March 31, 2012 | % Change |
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| Transportation Dollar Volume |
$ | 5.4 billion | $ | 5.4 billion | .6 | % | ||||||
| Facility Expense Dollar Volume* |
$ | 2.6 billion | $ | 2.7 billion | (3.8 | %) | ||||||
| Revenues |
$ | 28.4 million | $ | 28.4 million | 0 | % | ||||||
| Net Income |
$ | 6.0 million | $ | 5.9 million | 2.1 | % | ||||||
| Diluted Earnings per Share |
$ | .52 | $ | .51 | 2.0 | % | ||||||
| * | Includes Energy, Telecom and Environmental |
The positive result was achieved in the face of strong headwinds. Transaction volume, which generates fee income, increased in the transportation, telecom and environmental sectors despite an anemic economy. That growth, however, was partially offset by lower volumes in the energy marketplace, where recent merger and acquisition activity is affecting customer retention, even as new sales remain strong.
A primary impediment to earnings growth remains a historically low interest rate environment that continues to erode the company’s net interest margin. In the first quarter, Cass net investment income declined by $.6 million, or 5.5%.
Operating expenses were basically unchanged from year-earlier levels.
“Considering that today’s low interest rate and slow growth environment continues to undermine profitability, we are pleased to have posted a modest increase in earnings in the first quarter,” said Eric H. Brunngraber, Cass president and chief executive officer. “Our focus remains on efficiently fostering the growth of our business units as we support their initiatives to make our services of even greater value to customers.”
About Cass Information Systems
Cass Information Systems is the leading provider of transportation, utility, telecom and environmental invoice payment and information services. The company, which has been involved in the payables services and information support business since 1956, disburses $33 billion annually on behalf of customers from locations in St. Louis, Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C., Wellington, Kansas, and Jacksonville, Fla. The support of Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry. Cass is part of the Russell 2000® Index.
Note to Investors
Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the company’s actual results, see the company’s reports filed from time to time with the Securities and Exchange Commission including the company’s annual report on Form 10-K for the year ended December 31, 2012.
Selected Consolidated Financial Data
The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended March 31, 2013 and 2012:
| Quarter Ended March 31, 2013 |
Quarter Ended March 31, 2012 |
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| Transportation Invoice Volume |
7,344 | 6,873 | ||||||
| Transportation Dollar Volume |
$ | 5,415,365 | $ | 5,382,091 | ||||
| Facility Expense Transaction Volume |
4,618 | 4,577 | ||||||
| Facility Expense Dollar Volume |
$ | 2,640,243 | $ | 2,743,528 | ||||
| Payment and Processing Fees |
$ | 16,576 | $ | 16,487 | ||||
| Net Investment Income |
9,969 | 10,551 | ||||||
| Gains on Sales of Securities |
1,453 | 966 | ||||||
| Other |
436 | 430 | ||||||
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| Total Revenues |
$ | 28,434 | $ | 28,434 | ||||
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| Salaries and Benefits |
$ | 16,258 | $ | 15,561 | ||||
| Occupancy |
609 | 532 | ||||||
| Equipment |
908 | 863 | ||||||
| Other |
2,614 | 3,385 | ||||||
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| Total Operating Expenses |
$ | 20,389 | $ | 20,341 | ||||
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| Income from Operations before Income Tax Expense |
$ | 8,045 | $ | 8,093 | ||||
| Income Tax Expense |
2,013 | 2,185 | ||||||
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| Net Income |
$ | 6,032 | $ | 5,908 | ||||
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| Basic Earnings per Share |
$ | .53 | $ | .52 | ||||
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| Diluted Earnings per Share |
$ | .52 | $ | .51 | ||||
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| Average Earning Assets |
$ | 1,165,993 | $ | 1,193,752 | ||||
| Net Interest Margin |
3.96 | % | 4.08 | % | ||||
| Allowance for Loan Losses to Loans |
1.62 | % | 1.88 | % | ||||
| Non-performing Loans to Total Loans |
.13 | % | 1.11 | % | ||||
| Net Loan Charge-offs to Loans |
.22 | % | .03 | % | ||||
| Provision for Loan Losses |
$ | 200 | $ | 200 | ||||