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): October 18, 2007
CASS INFORMATION SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
| Missouri | 2-80070 | 43-1265338 | ||
| (State or other jurisdiction of incorporation or organization) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
| 13001 Hollenberg Drive Bridgeton, Missouri |
63044 | |
| (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 October 18, 2007, Cass Information Systems, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter of fiscal year 2007. 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 8.01. | Other Events. |
On October 22, 2007, the Company issued a press release announcing a 10% stock dividend payable December 17, 2007 to shareholders of record at the close of trading on December 3, 2007. In addition, the Company declared a regular quarterly cash dividend of $0.12 per share payable December 17, 2007 to shareholders of record on December 3, 2007. The cash pay-out will apply to all shares held after the 10% stock dividend is completed. A copy of this press release is attached hereto as Exhibit 99.2 and incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit |
Description | |
| 99.1 |
Press release issued by Cass Information Systems, Inc. dated October 18, 2007 regarding third quarter 2007 earnings. | |
| 99.2 |
Press release issued by Cass Information Systems, Inc. dated October 22, 2007 regarding stock and cash dividends. | |
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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: October 22, 2007
| CASS INFORMATION SYSTEMS, INC. | ||
| By: | /s/ Lawrence A. Collett | |
| Name: | Lawrence A. Collett | |
| Title: | Chairman and Chief Executive Officer | |
| By: | /s/ P. Stephen Appelbaum | |
| P. Stephen Appelbaum | ||
| Title: | Chief Financial Officer | |
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Exhibit Index
| Exhibit |
Description | |
| 99.1 |
Press release issued by Cass Information Systems, Inc. dated October 18, 2007 regarding third quarter 2007 earnings. | |
| 99.2 |
Press release issued by Cass Information Systems, Inc. dated October 22, 2007 regarding stock and cash dividends. | |
4
Exhibit 99.1
Contact: Contact Kenn Entringer at Casey Communications, Inc., (314) 721-2828 kentringer@caseycomm.com
October 18, 2007
Cass Information Systems, Inc. Posts
20% Increase in 3rd Quarter 2007 Earnings
ST. LOUIS – Cass Information Systems, Inc. (NASDAQ: CASS), the nation’s leading provider of transportation, utility and telecom invoice payment and information services, reported third quarter 2007 earnings of $.55 per fully diluted share, a 20% increase over the $.46 per fully diluted share it earned in the third quarter of 2006. Net income for the current period was $4,677,000 compared to $3,884,000 in 2006.
2007 3rd Quarter Recap
Payment and processing fees increased 10% or $1,082,000 compared to the year-earlier period, as utility transaction volume was up 39% and dollar volume rose 35% due to new business and heightened activity from existing customers.
Net investment income increased 2% or $180,000 due to the growth in funds generated from processing activities.
Operating expenses were up 4%, or $643,000, as a result of higher employee costs related to transaction growth.
“Our utility invoice processing operation continues to produce results that reflect its ability to penetrate new markets and to grow its customer base,” stated Lawrence A. Collett, chief executive officer and chairman of the board. “From a broader perspective, it is gratifying that the Company produced another solid result for our shareholders in this reporting period. We remain optimistic about our prospects as we approach 2008.”
Nine-Month 2007 Results
For the nine months ended September 30, 2007, the company earned $1.53 per fully diluted share, a 14% increase from the $1.34 per fully diluted share reported for the same period in 2006. Net income was $13,055,000, 15% higher than the $11,371,000 earned in 2006. Revenue increased $4,995,000 or 8% compared to the first nine months of 2006 primarily due to increased processing volumes and higher fee revenues.
Operating expenses were up 9%, or $3,755,000, in the nine-month year-over-year period, mainly due to the increase in salaries and benefits required to support growth in processing activity.
Selected Consolidated Financial Data
The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended September 30, 2007 and 2006:
| Quarter Ended 9/30/07 |
Quarter Ended 9/30/06 |
Nine Months 9/30/07 |
Nine Months 9/30/06 |
|||||||||||||
| Transportation Invoice Volume |
6,470 | 6,154 | 18,996 | 18,311 | ||||||||||||
| Transportation Dollar Volume |
$ | 3,669,117 | $ | 3,648,694 | $ | 10,764,558 | $ | 10,722,994 | ||||||||
| Utility Transaction Volume |
2,361 | 1,701 | 6,872 | 4,797 | ||||||||||||
| Utility Dollar Volume |
$ | 2,081,529 | $ | 1,538,628 | $ | 5,687,627 | $ | 4,188,578 | ||||||||
| Payment and Processing Fees |
$ | 11,441 | $ | 10,359 | $ | 34,089 | $ | 29,853 | ||||||||
| Net Investment Income |
10,450 | 10,270 | 30,230 | 29,471 | ||||||||||||
| Other |
629 | 569 | 1,895 | 1,895 | ||||||||||||
| Total Revenues |
$ | 22,520 | $ | 21,198 | $ | 66,214 | $ | 61,219 | ||||||||
| Salaries and Benefits |
$ | 11,700 | $ | 11,136 | $ | 35,135 | $ | 31,673 | ||||||||
| Occupancy |
550 | 522 | 1,572 | 1,462 | ||||||||||||
| Equipment |
876 | 732 | 2,565 | 2,128 | ||||||||||||
| Other |
2,538 | 2,631 | 7,657 | 7,911 | ||||||||||||
| Total Operating Expenses |
$ | 15,664 | $ | 15,021 | $ | 46,929 | $ | 43,174 | ||||||||
| Income from Continuing Operations before Income Taxes |
$ | 6,856 | $ | 6,177 | $ | 19,285 | $ | 18,045 | ||||||||
| Provision for Income Taxes |
2,179 | 2,205 | 6,230 | 6,397 | ||||||||||||
| Net Income from Continuing Operations |
$ | 4,677 | $ | 3,972 | $ | 13,055 | $ | 11,648 | ||||||||
| Loss from Discontinued Operations net of Income Taxes |
— | (88 | ) | — | (277 | ) | ||||||||||
| Net Income |
$ | 4,677 | $ | 3,884 | $ | 13,055 | $ | 11,371 | ||||||||
| Average Earning Assets |
$ | 827,757 | $ | 774,293 | $ | 799,144 | $ | 751,769 | ||||||||
| Net Interest Margin |
5.46 | % | 5.56 | % | 5.48 | % | 5.53 | % | ||||||||
| Allowance for Loan Losses to Loans |
1.18 | % | 1.14 | % | 1.18 | % | 1.14 | % | ||||||||
| Non-performing Loans to Total Loans |
.06 | % | .18 | % | .06 | % | .18 | % | ||||||||
| Net Loan Charge-offs to Loans |
.20 | % | .11 | % | .24 | % | .16 | % | ||||||||
| Provision for Loan Losses |
$ | 225 | $ | 200 | $ | 675 | $ | 500 | ||||||||
| Non-performing Loans |
$ | 310 | $ | 954 | $ | 310 | $ | 954 | ||||||||
| Basic Earnings per Share (EPS) from Continuing Operations |
$ | .56 | $ | .48 | $ | 1.57 | $ | 1.40 | ||||||||
| Basic EPS from Discontinued Operations |
— | (.01 | ) | — | (.03 | ) | ||||||||||
| Basic Earnings per Share |
$ | .56 | $ | .47 | $ | 1.57 | $ | 1.37 | ||||||||
| Diluted EPS from Continuing Operations |
$ | .55 | $ | .47 | $ | 1.53 | $ | 1.37 | ||||||||
| Diluted EPS from Discontinued Operations |
— | (.01 | ) | — | (.03 | ) | ||||||||||
| Diluted Earnings per Share |
$ | .55 | $ | .46 | $ | 1.53 | $ | 1.34 | ||||||||
About Cass Information Systems
Cass Information Systems is the leading provider of transportation, utility and telecom invoice payment and information services. The company, which has been involved in the payables services and information support business since 1956, disburses over $20 billion annually on behalf of customers from processing centers in St. Louis, Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C. and Wellington, Kansas. 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, 2006.
Exhibit 99.2
Contact: Kenn Entringer at Casey Communications, Inc., (314) 721-2828 kentringer@caseycomm.com
October 22, 2007
Cass Information Systems, Inc. Declares 10% Stock Dividend;
Fifth Stock Dividend Since 2002
ST. LOUIS – Cass Information Systems, Inc. (NASDAQ: CASS), the nation’s leading provider of freight, utility and telecom invoice payment, rating, auditing and information services, announced a 10% stock dividend payable December 17, 2007 to shareholders of record at the close of trading December 3, 2007.
Shareholders will receive one additional share of CASS stock for each 10 shares owned. No fractional shares will be issued. Shareholders will receive cash for any fractional shares owned based on the share price reported by NASDAQ at the close of trading December 3, 2007.
The stock dividend is the fifth declared by Cass Information Systems in the past five years. The company previously paid 50% stock dividends in both 2006 and 2005, a 10% stock dividend in 2004 and a 5% stock dividend in 2002.
Additionally, Cass declared a regular quarterly cash dividend of $0.12 per share payable December 17, 2007 to shareholders of record December 3, 2007. The upcoming cash pay-out will apply to all shares held after the 10% stock dividend is completed, effectively increasing the fourth quarter dividend by 10%. Cass has continuously paid regularly scheduled cash dividends since 1934.
“The company continues to perform well and future prospects remain bright,” said Lawrence A. Collett, Cass chief executive officer and chairman. “The board of directors is pleased to provide continuing increases in dividends to our shareholders.”
About Cass Information Systems
Cass Information Systems is the leading provider of transportation, utility and telecom invoice payment and information services. The company, which has been involved in the payables services and information support business since 1956, disburses over $20 billion annually on behalf of customers from processing centers in St. Louis, MO., Columbus, OH., Boston, MA., Greenville, S.C. and Wellington, KS. 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, 2006.