-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FeaJeTKXKPOYeH6DM28CSDIgWvaq4N7BGD+XrY4Af/zBRyrCag2NLwqi5CLpDwIR f1dNSw5iEhz8gaWOeawyww== 0001193805-06-002510.txt : 20061019 0001193805-06-002510.hdr.sgml : 20061019 20061019124829 ACCESSION NUMBER: 0001193805-06-002510 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061019 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061019 DATE AS OF CHANGE: 20061019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASS INFORMATION SYSTEMS INC CENTRAL INDEX KEY: 0000708781 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 431265338 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-44497 FILM NUMBER: 061152747 BUSINESS ADDRESS: STREET 1: 13001 HOLLENBERG DR. CITY: BRIDGETON STATE: MO ZIP: 63044 BUSINESS PHONE: 3145055500 MAIL ADDRESS: STREET 1: 13001 HOLLENBERG DR. CITY: BRIDGETON STATE: MO ZIP: 63044 FORMER COMPANY: FORMER CONFORMED NAME: CASS COMMERCIAL CORP DATE OF NAME CHANGE: 19950518 8-K 1 e601119_8k-cass.txt CURRENT REPORT ================================================================================ 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 19, 2006 (October 19, 2006) CASS INFORMATION SYSTEMS, INC. (Exact name of registrant as specified in its charter) Missouri 2-80070 43-1265338 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) 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 19, 2006, Cass Information Systems, Inc. (the "Company") issued a press release announcing its financial results for the third quarter of fiscal year 2006. 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 (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 filing. Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description -------------- ----------------------------------------------------- 99.1 Press release issued by Cass Information Systems, Inc. dated October 19, 2006 regarding third quarter 2006 earnings. 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: October 19, 2006 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 3 Exhibit Index Exhibit Number Description -------------- ----------------------------------------------------- 99.1 Press release issued by Cass Information Systems, Inc. dated October 19, 2006 regarding third quarter 2006 earnings. 4 EX-99.1 2 e601119_ex99-1.txt PRESS RELEASE DATED OCTOBER 19, 2006 [LOGO] Contact: Contact Kenn Entringer at Casey Communications, Inc., (314) 721-2828 kentringer@caseycomm.com October 19, 2006 Cass Information Systems, Inc. Posts 24% Increase in 3rd Quarter 2006 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 2006 earnings of $.46 per fully diluted share, a 24% increase over the $.37 per fully diluted share (adjusted for a September 15, 2006 50% stock dividend) reported for the third quarter of 2005. Net income for the period was $3,884,000 compared to $3,093,000 in 2005. Earnings from continuing operations were $.47 per fully diluted share, a 24% increase over the $.38 per fully diluted share earned from continuing operations in the same period of 2005. Net income from continuing operations was $3,972,000 and $3,265,000 respectively. (The assets, liabilities and results of a wholly-owned subsidiary sold by Cass in the fourth quarter of 2005 are shown as discontinued operations.) Payment and processing fees increased 13% or $1,202,000 compared to the year-earlier period, as transportation invoices were up 6% and dollar volume rose 17% due to new business and heightened activity from existing accounts. Utility invoices processed were up 20%. Net investment income increased 23% or $1,911,000 due mainly to growth in funds generated from processing activities and to the rise in prevailing interest rates. Operating expenses were up 14% or $1,877,000 largely as a result of higher employee costs related to transaction growth. 5 Nine-Month 2006 Results For the nine months ended September 30, 2006, the company earned $1.37 per fully diluted share from continuing operations, a 32% increase from the $1.04 per fully diluted share reported for the same period in 2005. Net income from continuing operations was $11,648,000, 32% higher than the $8,826,000 earned in 2005. Revenue rose $9,077,000 or 17% compared to the first nine months of 2005 due to increased processing volumes, fee revenues and investment income. Operating expenses were up 11% or $4,404,000 in the nine-month year-over-year period, mainly due to the increase in salaries and benefits required to support processing growth. 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, 2006 and 2005:
Quarter Quarter Nine Months Nine Months Ended Ended Ended Ended 9/30/06 9/30/05 9/30/06 9/30/05 ------------ ------------ ------------ ------------ Transportation Invoice Volume 6,154 5,815 18,311 16,488 Transportation Dollar Volume $ 3,648,694 $ 3,111,175 $ 10,722,994 $ 8,548,554 Utility Transaction Volume 1,701 1,421 4,797 4,225 Utility Dollar Volume $ 1,538,628 $ 1,148,438 $ 4,188,578 $ 3,166,853 Payment and Processing Fees $ 10,359 $ 9,157 $ 29,853 $ 26,486 Net Investment Income 10,270 8,359 29,471 23,458 Gain on Sales of Debt Securities __ __ __ 547 Other 569 563 1,895 1,651 ------------ ------------ ------------ ------------ Total Revenues $ 21,198 $ 18,079 $ 61,219 $ 52,142 ------------ ------------ ------------ ------------ Salaries and Benefits $ 11,136 $ 9,600 $ 31,673 $ 28,280 Occupancy 522 499 1,462 1,443 Equipment 732 716 2,128 2,146 Other 2,631 2,329 7,911 6,901 ------------ ------------ ------------ ------------ Total Operating Expenses $ 15,021 $ 13,144 $ 43,174 $ 38,770 ------------ ------------ ------------ ------------
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Quarter Quarter Nine Months Nine Months Ended Ended Ended Ended 9/30/06 9/30/05 9/30/06 9/30/05 ------------ ------------ ------------ ------------ Income from Continuing Operations before Income Taxes $ 6,177 $ 4,935 $ 18,045 $ 13,372 Provision for Income Taxes $ 2,205 $ 1,670 $ 6,397 $ 4,546 ------------ ------------ ------------ ------------ Net Income from Continuing Operations $ 3,972 $ 3,265 $ 11,648 $ 8,826 Loss from Discontinued Operations net of Income Taxes (88) (172) (277) (382) ------------ ------------ ------------ ------------ Net Income $ 3,884 $ 3,093 $ 11,371 $ 8,444 ============ ============ ============ ============ Average Earning Assets $ 774,293 $ 700,442 $ 751,769 $ 682,092 Net Interest Margin 5.56% 4.98% 5.53% 4.85% Allowance for Loan Losses to Loans 1.14% 1.20% 1.14% 1.20% Non-performing Loans to Total Loans .18% .22% .18% .22% Net Loan Charge-offs to Loans .11% __ .16% .08% Provision for Loan Losses $ 200 $ 225 $ 500 $ 625 Non-performing Loans $ 954 $ 1,134 $ 954 $ 1,134 Basic Earnings per Share (EPS) from Continuing Operations $ .48 $ .39 $ 1.40 $ 1.07 Basic EPS from Discontinued Operations (.01) (.02) (.03) (.05) ------------ ------------ ------------ ------------ Basic Earnings per Share $ .47 $ .37 $ 1.37 $ 1.02 ============ ============ ============ ============ Diluted EPS from Continuing Operations $ .47 $ .38 $ 1.37 $ 1.04 Diluted EPS from Discontinued Operations (.01) (.01) (.03) (.04) ------------ ------------ ------------ ------------ Diluted Earnings per Share $ .46 $ .37 $ 1.34 $ 1.00 ============ ============ ============ ============
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 $16 billion annually on behalf of customers from 7 processing centers in St. Louis, Mo., Columbus, Ohio, Boston, Mass. and Greenville, S.C. The support of Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry. Cass is part of the Russell 2000(R) 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, 2005. -----END PRIVACY-ENHANCED MESSAGE-----