SEC Filing | Cass Information Systems, Inc.

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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 23, 2003 ------------------------------- Cass Information Systems, Inc. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) Missouri - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 2-80070 43-1265338 - -------------------------------------------------------------------------------- (Commission File Number) (IRS 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) N/A - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report)

CASS INFORMATION SYSTEMS, INC. FORM 8-K Item 7. Financial Statements and Exhibits. (c) Exhibits Exhibit No. Description ----------- ----------- 99.1 Press Release dated October 23, 2003, issued by Cass Information Systems, Inc. (the Registrant) Item 9. Information Furnished Under Item 12 - Results of Operations and Financial Condition The information in this report is furnished pursuant to Item 12, "Disclosure of Results of Operations and Financial Condition." On October 23, 2003, the registrant issued a press release announcing its preliminary results of operations for the quarter ended September 30, 2003. 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 is being furnished under Item 12 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (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 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. 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. Cass Information Systems, Inc. October 23, 2003 By: /s/ Lawrence A. Collett ---------------------------------------- Lawrence A. Collett Chairman and Chief Executive Officer October 23, 2003 By: /s/ Eric H. Brunngraber ---------------------------------------- Eric H. Brunngraber Vice President-Secretary (Chief Financial and Accounting Officer) 3

EXHIBIT INDEX Exhibit Number Description ------ ----------- 99.1 Press Release dated October 23, 2003. 4

Exhibit 99.1 October 23, 2003 Cass Information Systems Reports 15% Increase in 3rd Quarter 2003 Earnings ST. LOUIS - Cass Information Systems, Inc. (NASDAQ: CASS), the nation's leading provider of freight and utility invoice payment, rating, auditing and information services, reported third quarter earnings of 60 cents per fully diluted share, a 15% increase over the 52 cents earnings per fully diluted share reported for the third quarter of 2002. Total net income for the quarter was $2,022,000, compared to $1,774,000 in 2002. For the nine-month period ended Sept. 30, 2003, the company generated $1.71 fully diluted earnings per share, an 8% increase over the $1.58 fully diluted earnings per share reported for the nine-months ended September 30, 2002. Net income thus far in 2003 is $5,779,000, compared to $5,351,000 in 2002. Third quarter results included a 21%, or $2,864,000, increase in revenue. Payment and processing fee revenue increased $1,029,000 or 16%. The addition of new customers enabled Cass to boost utility transaction volume by 40% and transportation transaction volume by 4% in the quarter. Year-to-date, these levels have increased 36% and 9% respectively. Revenues also increased as a result of Cass consolidating the operating results of a software subsidiary, Government e-Management Solutions (GEMS). GEMS, which markets integrated financial, property and human resource management systems to the public sector, generated third quarter revenues of $2,221,000. Offsetting the boost in information revenue was a $680,000 decrease in net investment income. The continuing effects of a low interest rate environment caused the decrease. Partially offsetting the decrease in interest income were additional gains of $94,000 on the sale of securities compared to the third quarter of 2002. Operating expenses rose 21% in the quarter, attributable mainly to the GEMS' consolidation. Prior to Dec. 31, 2002, GEMS was accounted for as an asset held for sale and its operating results were not consolidated with those of the company. Statement of Financial Accounting Standards No.144, adopted by the company in 2002, now requires that GEMS be reclassified as an asset held and used. Consequently, Cass reclassified the entity's net assets and consolidated its operations with the parent company on Jan.1, 2003. Excluding the effect of the consolidation, third quarter operating expenses were 3% higher than those reported in the same period of 2002.

"We are excited at the growth in information processing activity, in utility processing transactions and in the increased dollar volume of both transportation and utility invoices," stated Lawrence A. Collett, chief executive officer and chairman of the board. "They clearly indicate the impact of new customer growth and improvement in the economy. The overall profit results for the third quarter are especially pleasing considering the continued low interest rate environment." Selected Consolidated Financial Data The following table presents selected unaudited consolidated financial data (in thousands, except share and per share data) for the periods ended September 30, 2003 and 2002. Nine Nine Quarter Quarter Months Months Ended Ended Ended Ended 9/30/03 9/30/02 9/30/03 9/30/02 Transportation Invoice Volume 5,882 5,639 17,358 15,914 Transportation Dollar Volume $ 2,208,878 $ 1,989,867 $ 6,417,046 $ 5,717,571 Utility Transaction Volume 1,218 870 3,367 2,477 Utility Dollar Volume $ 878,998 $ 725,695 $ 2,493,073 $ 1,919,357 Payment and Processing Fees $ 7,308 $ 6,279 $ 21,147 $ 17,952 Software Revenue 2,221 -- 5,871 -- Net Investment Income 6,514 7,194 19,588 21,906 Gain (Loss) on Sales of Debt Securities 92 (2) 1,454 942 Other 679 479 1,835 1,368 ----------- ----------- ----------- ----------- Total Revenues $ 16,814 $ 13,950 $ 49,895 $ 42,168 Salaries and Benefits $ 9,274 $ 7,847 $ 28,026 $ 23,350 Occupancy 447 367 1,340 1,115 Equipment 1,068 1,037 3,350 3,241 Other 3,068 2,242 8,832 6,824 ----------- ----------- ----------- ----------- Total Operating Expenses $ 13,857 $ 11,493 $ 41,548 $ 34,530 Income before Income Taxes $ 2,957 $ 2,457 $ 8,347 $ 7,638 Provision for Income Taxes $ 935 $ 683 $ 2,568 $ 2,287 Net Income $ 2,022 $ 1,774 $ 5,779 $ 5,351 Average Earning Assets $ 576,037 $ 542,929 $ 548,540 $ 540,941 Net Interest Margin 4.61% 5.55% 4.96% 5.71% Allowance for Loan Losses to Loans 1.20% 1.25% 1.20% 1.25% Non-performing Loans to Total Loans .43% .57% .43% .57% Net Loan Charge-offs to Loans -- -- -- .01% Provision for Loan Losses $ -- $ 90 $ 90 $ 360 Non-performing Loans $ 1,943 $ 2,533 $ 1,943 $ 2,533 Basic Earnings per Share $ .61 $ .53 $ 1.73 $ 1.60 Diluted Earnings per Share $ .60 $ .52 $ 1.71 $ 1.58

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 $10 billion annually in freight and utility invoices on behalf of its customers from processing centers in St. Louis, Mo., Columbus, Ohio and Boston, Mass. 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 annual report on Form 10-K for the year ended December 31, 2002.