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): July 19, 2012
CASS INFORMATION SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
| Missouri | 000-20827 | 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 July 19, 2012, Cass Information Systems, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2012. 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 Matters.
On July 19, 2012, the Company also announced that its board of directors declared a third quarter cash dividend of $0.17 per share, payable September 14, 2012 to shareholders of record on September 5, 2012.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. |
| Exhibit Number |
Description | |
| 99.1 | Press release issued by Cass Information Systems, Inc. dated July 19, 2012. |
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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: July 19, 2012
| 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: | Chief Financial Officer | |
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Exhibit 99.1
Contact: Contact Kenn Entringer at Casey Communications, Inc., (314) 721-2828 kentringer@caseycomm.com
July 19, 2012
Cass Information Systems, Inc. Reports 2nd Quarter 2012 Earnings
Declares Regular Quarterly Dividend
ST. LOUIS – Cass Information Systems, Inc. (NASDAQ:CASS), the nation’s leading provider of transportation, utility, telecom and environmental invoice payment and information services, reported record second quarter 2012 earnings of $.57 per diluted share, a 4% increase over the $.55 per diluted share it earned in the second quarter of 2011. Net income for the period was $6.0 million, a 4% increase over the $5.7 million reported in 2011.
| 2nd Quarter | % Change |
YTD | % Change |
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| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
| Transportation Dollar Volume |
$ | 5.7 billion | $ | 5.3 billion | 7.7 | $ | 11.0 billion | $ | 9.8 billion | 12.4 | ||||||||||||||
| Utility Dollar Volume |
$ | 2.5 billion | $ | 2.6 billion | (4.1 | ) | $ | 5.0 billion | $ | 5.2 billion | (3.9 | ) | ||||||||||||
| Revenues |
$ | 28.4 million | $ | 26.6 million | 6.8 | $ | 56.8 million | $ | 52.7 million | 7.9 | ||||||||||||||
| Net Income |
$ | 6.0 million | $ | 5.7 million | 3.9 | $ | 11.9 million | $ | 11.5 million | 3.6 | ||||||||||||||
| Diluted Earnings per Share |
$ | .57 | $ | .55 | 3.6 | $ | 1.13 | $ | 1.10 | 2.7 | ||||||||||||||
2012 2nd Quarter Recap
Transportation dollar volume increased more than 7%. Utility dollar volume was down 4% primarily due to generally mild weather across most of North America which decreased consumption. Overall, revenues for the quarter grew to $28.4 million, a 7% increase over the $26.6 million posted in 2011.
Net investment income decreased $.7 million, or 6%, primarily due to historically low interest rates.
Overall operating expenses were up $1.6 million, or 9%, primarily due to costs related to the integration of the company’s new environmental expense service line following its acquisition of Jacksonville, Fla.-based Waste Reduction Consultants, Inc. in January.
Six-Month 2012 Recap
For the six-month period ended June 30, 2012, the company earned $1.13 per diluted share, a 3% increase over the $1.10 per diluted share earned in the first half of 2011. Net income was $11.9 million, 4% higher than the $11.5 million earned in 2011. Revenues rose 8%, from $52.7 million in 2011 to $56.8 million in 2012.
Operating expenses were up 10%, or $3.8 million, for the reasons previously cited.
“Although sluggish economic activity and historically low interest rates present a difficult operating environment,” said Eric H. Brunngraber, Cass president and chief executive officer, “it is rewarding to see our progress on those things that we can control, such as initiatives that promise revenue growth over the long term. Our recent investment in Waste Reduction Consultants, which diversifies the Cass service portfolio, is a good example. Our strong balance sheet and ability to generate positive earnings results, despite the low interest rates, is encouraging.”
Cash Dividend Declared
On July 16, 2012, the company’s board of directors declared a third quarter dividend of $.17 per share payable September 14, 2012 to shareholders of record September 5, 2012. Cass has continuously paid regularly scheduled cash dividends since 1934.
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 $32 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, 2011.
Selected Consolidated Financial Data
The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended June 30, 2012 and 2011:
| Quarter Ended June 30, 2012 |
Quarter Ended June 30, 2011 |
Six Months Ended June 30, 2012 |
Six Months Ended June 30, 2011 |
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| Transportation Invoice Volume |
7,295 | 7,288 | 14,168 | 13,799 | ||||||||||||
| Transportation Dollar Volume |
$ | 5,665,600 | $ | 5,260,144 | $ | 11,047,691 | $ | 9,829,074 | ||||||||
| Utility Transaction Volume |
3,422 | 3,340 | 7,029 | 6,698 | ||||||||||||
| Utility Dollar Volume |
$ | 2,453,245 | $ | 2,559,095 | $ | 5,045,731 | $ | 5,248,330 | ||||||||
| Payment and Processing Fees |
$ | 16,625 | $ | 15,219 | $ | 33,112 | $ | 29,566 | ||||||||
| Net Investment Income |
10,170 | 10,820 | 20,721 | 22,068 | ||||||||||||
| Gain on Sales of Securities |
1,168 | 48 | 2,134 | 48 | ||||||||||||
| Other |
444 | 516 | 874 | 1,001 | ||||||||||||
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| Total Revenues |
$ | 28,407 | $ | 26,603 | $ | 56,841 | $ | 52,683 | ||||||||
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| Salaries and Benefits |
$ | 15,498 | $ | 14,146 | $ | 31,059 | $ | 27,852 | ||||||||
| Occupancy |
559 | 557 | 1,091 | 1,205 | ||||||||||||
| Equipment |
884 | 848 | 1,747 | 1,695 | ||||||||||||
| Other |
3,299 | 3,084 | 6,684 | 6,017 | ||||||||||||
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| Total Operating Expenses |
$ | 20,240 | $ | 18,635 | $ | 40,581 | $ | 36,769 | ||||||||
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| Income from Operations before Income Taxes |
$ | 8,167 | $ | 7,968 | $ | 16,260 | $ | 15,914 | ||||||||
| Income Tax Expense |
2,205 | 2,229 | 4,390 | 4,456 | ||||||||||||
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| Net Income |
$ | 5,962 | $ | 5,739 | $ | 11,870 | $ | 11,458 | ||||||||
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| Basic Earnings per Share |
$ | .58 | $ | .56 | $ | 1.15 | $ | 1.11 | ||||||||
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| Diluted Earnings per Share |
$ | .57 | $ | .55 | $ | 1.13 | $ | 1.10 | ||||||||
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| Average Earning Assets |
$ | 1,176,084 | $ | 1,146,708 | $ | 1,184,918 | $ | 1,148,130 | ||||||||
| Net Interest Margin |
4.13 | % | 4.55 | % | 4.11 | % | 4.58 | % | ||||||||
| Allowance for Loan Losses to Loans |
1.82 | % | 1.84 | % | 1.82 | % | 1.84 | % | ||||||||
| Non-performing Loans to Total Loans |
.86 | % | 1.09 | % | .86 | % | 1.09 | % | ||||||||
| Net Loan (Recoveries) Charge-offs to Loans |
.13 | % | — | .16 | % | (.01 | )% | |||||||||
| Provision for Loan Losses |
$ | 600 | $ | 850 | $ | 800 | $ | 1,300 | ||||||||