UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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 19, 2005 (April 18, 2005)
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Cass Information Systems, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Missouri
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(State or Other Jurisdiction of Incorporation)
2-80070 43-1265338
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(Commission File Number) (IRS Employer Identification No.)
13001 Hollenberg Drive, Bridgeton, Missouri 63044
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(Address of Principal Executive Offices) (Zip Code)
(314) 506-5500
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(Registrant's Telephone Number, Including Area Code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
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 (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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CASS INFORMATION SYSTEMS, INC.
FORM 8-K
Item 2.02. Results of Operations and Financial Condition.
On April 18, 2005, Cass Information Systems, Inc. issued a press release
announcing its preliminary results of operations for the first quarter of fiscal
year 2005, which ended March 31, 2005. A copy of the press release is attached
hereto as Exhibit 99.1 and hereby incorporated by reference. The information in
this Form 8-K, including Exhibit 99.1, is being furnished under Item 2.02 and
shall not be deemed to be "filed" for the purposes of Section 18 of the
Securities Exchange Act of 1934 (the "Exchange Act"), as amended, 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 or the
Exchange Act, as amended, except as shall be expressly set forth by specific
reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description
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99.1 Press Release dated April 18, 2005, issued by Cass
Information Systems, Inc.
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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.
Cass Information Systems, Inc.
April 19, 2005 By: /s/ Lawrence A. Collett
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Lawrence A. Collett
Chairman and Chief Executive Officer
April 19, 2005 By: /s/ Eric H. Brunngraber
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Eric H. Brunngraber
Vice President-Secretary
(Chief Financial and Accounting Officer)
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EXHIBIT INDEX
Exhibit
Number Description
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99.1 Press Release dated April 18, 2005.
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Exhibit 99.1
April 18, 2005
Cass Information Systems Reports
50% Increase in 1st Quarter 2005 Net Income
Earns All-Time High of 74 Cents Per Share, 48% Increase Over 2004
ST. LOUIS - Cass Information Systems, Inc. (NASDAQ: CASS), the nation's
leading provider of freight, utility and telecom invoice payment, auditing and
information services, set a new all-time high for per-share earnings in the
first quarter of 2005.
The company reported first quarter earnings of 74 cents per fully diluted
share for the period, a 48% increase over the 50 cents per fully diluted share
it earned in the first quarter of 2004. Total net income was $2,767,000, a 50%
increase over the $1,847,000 reported in the comparable period last year.
The first quarter results were driven by a combination of higher
processing volumes, fee revenues, software sales and investment income.
"While our approach to business and investment decisions is long-term
oriented, it is gratifying when events converge in a given period to produce
such an encouraging result for our shareholders," said Lawrence A. Collett,
chief executive officer and chairman of the board. "As always, we remain
optimistic in our outlook and confident in our abilities to grow the company in
the year ahead."
A 31% increase in freight processing volume and a 9% increase in utility
invoice processing volume, combined with 16% and 10% increases in dollars
processed respectively, fueled a $994,000 or 13% rise in processing fees. A
growing customer base, aided by the August 2004 acquisition of PROFITLAB, Inc.,
contributed to the processing growth.
The company's Government e-Management Solutions, Inc. subsidiary also
posted sharply stronger results, generating a $501,000 increase in software
revenues, a 42% improvement over the first quarter of 2004.
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Net investment income advanced $953,000, a 15% increase over the first
quarter of 2004. A gradual rise in prevailing interest rates, coupled with a
higher base of earning assets, were responsible for the outcome.
Finally, CASS recorded a gain of $547,000 in the sale of securities during
the period, compared to the $441,000 gain it posted last year.
Meanwhile, operating expenses increased 8% ($1,060,000) year-to-year due
to the PROFITLAB acquisition and 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 March 31, 2005 and 2004.
Quarter Quarter
Ended Ended
3/31/05 3/31/04
Transportation Invoice Volume 7,132 5,429
Transportation Dollar Volume $2,568,090 $2,221,646
Utility Transaction Volume 1,403 1,284
Utility Dollar Volume $1,029,235 $ 934,361
Payment and Processing Fees $ 8,592 $ 7,598
Software Revenue 1,680 1,179
Net Investment Income 7,326 6,373
Gains on Sales of Investment Securities 547 441
Other 542 549
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Total Revenues $ 18,687 $ 16,140
Salaries and Benefits $ 10,344 $ 9,157
Occupancy 500 458
Equipment 837 1,025
Other 2,861 2,842
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Total Operating Expenses $ 14,542 $ 13,482
Income before Income Taxes $ 4,145 $ 2,658
Provision for Income Taxes $ 1,378 $ 811
Net Income $ 2,767 $ 1,847
Average Earning Assets $ 664,590 $ 599,227
Net Interest Margin 4.73% 4.58%
Allowance for Loan Losses to Loans 1.14% 1.24%
Non-performing Loans to Total Loans .13% .75%
Net Loan Charge-offs to Loans .08% --
Provision for Loan Losses $ 200 $ 200
Non-performing Loans $ 669 $ 3,451
Basic Earnings per Share $ .75 $ .50
Diluted Earnings per Share $ .74 $ .50
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About Cass Information Systems
Cass has been a leading provider of payables services and information
support systems to companies throughout North America since 1956. The company
pays over $14 billion annually in freight and utility invoices on behalf of its
customers from processing centers in St. Louis, Mo., Columbus, Ohio, Boston,
Mass. and Greenville, S.C. The support of its bank subsidiary, Cass Commercial
Bank, founded in 1906, makes Cass Information Systems unique in the industry.
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, 2004.
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