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TheStreet Open House

Casey’s Reports Record Quarter With Strong Gas And Inside Sales

Stocks in this article: CASY

Casey’s General Stores, Inc. (Nasdaq:CASY) today reported diluted earnings per share of $1.43 for the first quarter of fiscal 2014 ended July 31, 2013, compared to $1.01 for the same quarter a year ago. “We are off to an excellent start of the fiscal year driven by strong sales throughout all categories,” said President and CEO Robert J. Myers. “The gasoline category of our business is performing exceptionally well in both sales and margin.”

Gasoline – The Company’s annual goal is to increase same-store gallons sold 1.5% with an average margin of 15 cents per gallon. For the first quarter, same-store gallons sold were up 3.2% with an average margin of 22.1 cents per gallon. “The Company sold 12.6 million renewable fuel credits for $12.9 million during the first three months of the year,” said Myers. “That, along with the sales lift we are experiencing due to our fuel saver program, helped us achieve a 60% increase in gasoline gross profit for the first quarter.” Total gallons sold for the quarter were up 8.2% to 426.5 million gallons.

Grocery and Other Merchandise – Casey’s annual goal is to increase same-store sales 5% with an average margin of 32.3%. For the quarter, same-store sales were up 6.1% with an average margin of 32.7%. “Due to the retail price adjustments made last fiscal year, Casey’s made great strides in increasing our market share for cigarettes compared to the first quarter a year ago,” stated Myers. “Despite the significant price reductions in cigarettes, gross profit increased 7.4% for the total category in the first quarter.” Total sales for the quarter were $423.6 million and gross profit was $138.4 million.

Prepared Food & Fountain – The goal for fiscal 2014 is to increase same-store sales 9% with an average margin of 62.0%. For the first quarter, same-store sales were up 11.9% with an average margin of 61.8%. “The same-store sales increase is primarily due to the continued roll out of pizza delivery, major remodels and 24-hour expansion, along with some retail price increases implemented at the start of the fiscal year,” said Myers. “We did experience a rise in the cost of several input costs, primarily cheese, which adversely impacted the margin relative to the prior year.” Total sales for the category were up 16.5% to $166.2 million, and gross profit increased 13.5% to $102.8 million.

Operating Expenses – For the first quarter, operating expenses were $216 million compared to $189.4 million for the first quarter a year ago, up 14%. “Operating expenses are up primarily due to the various operational initiatives Casey’s has been implementing to drive inside sales, along with the new construction and acquisition activity,” said Myers. “Store-level operating expenses for locations not impacted by the initiatives were up 4.9% for the first quarter.”

Expansion – The Company’s annual goal is to build or acquire 70 to 105 stores and replace 20 existing locations. As of the end of the quarter, the Company opened four new stores and acquired three stores. The Company also completed five replacement stores. “Our pipeline of new store constructions and potential acquisitions is as full as it has been in recent history,” stated Myers. “Our balance sheet remains very strong and we are well positioned to take advantage of opportunities.” The Company currently has 31 new stores and 18 replacement stores under construction, as well as 19 stores under written agreement to acquire.

Dividend – At its September meeting, the Board of Directors declared a quarterly dividend of $0.18 per share. The dividend is payable November 15, 2013 to shareholders of record on November 1, 2013.

 
Casey’s General Stores, Inc.
Condensed Consolidated Statements
of Income

(Dollars in thousands, except share and per share amounts)

(Unaudited)

 

 

Three months ended July 31,

2013   2012
Total revenue $ 2,114,749 $ 1,868,302

Cost of goods sold (exclusive of depreciation and amortization, shown separately below)

1,769,239

1,581,328

Gross profit 345,510 286,974
Operating expenses 215,974 189,399
Depreciation and amortization 30,501 26,536
Interest, net 9,456 8,904
Income before income taxes 89,579 62,135
Federal and state income taxes 33,869 23,104
Net income $ 55,710 $ 39,031
 
Net income per common share
 
Basic $ 1.45 $ 1.02
 
Diluted $ 1.43 $ 1.01
 
 
Basic weighted average shares outstanding 38,393,076 38,224,608
Plus effect of stock options and restricted stock 434,809 345,690
Diluted weighted average shares outstanding 38,827,885 38,570,298
 

Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

   

July 31,

April 30,

2013 2013
Assets
Current assets
Cash and cash equivalents $ 190,947 $ 41,271
Receivables 25,918 20,900
Inventories 205,674 189,514
Prepaid expenses 2,829 1,396
Deferred income taxes 12,269 9,916
Income taxes receivable -------- 9,820
Total current assets     437,637     272,817
Other assets, net of amortization 14,796 14,485
Goodwill 114,791 114,791

Property and equipment, net of accumulated depreciation of $975,829 at July 31, 2013, and of $952,286 at April 30, 2013

1,625,210 1,581,925
Total assets   $ 2,192,434   $ 1,984,018
 
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank $ -------- $ 59,100
Current maturities of long-term debt 15,880 15,810
Accounts payable 252,544 232,913
Accrued expenses 109,942 89,925
Income taxes payable 18,449 --------
Total current liabilities     396,815     397,748
Long-term debt, net of current maturities 803,971 653,081
Deferred income taxes 299,183 293,708
Deferred compensation 15,999 15,787
Other long-term liabilities 22,992 21,399
Total liabilities 1,538,960 1,381,723
 
Total shareholders' equity 653,474 602,295
   
Total liabilities and shareholders' equity   $ 2,192,434   $ 1,984,018
 

Certain statements in this news release, including any discussion of management expectations for future periods, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied by those statements. Casey’s disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

 
Sales and Gross Profit by Product

(Amounts in thousands)

         
Three months ended

 

Grocery & Other Prepared Food

 

 

7/31/13

Gasoline

Merchandise & Fountain

Other

Total

 
Sales $ 1,514,874 $ 423,585 $ 166,248 $ 10,042 $ 2,114,749
Gross profit $ 94,316 $ 138,412 $ 102,754 $ 10,028 $ 345,510
Margin 6.2% 32.7% 61.8% 99.9% 16.3%
Gasoline gallons 426,549
 
Three months ended
7/31/12
 
Sales $ 1,330,670 $ 386,129 $ 142,709 $ 8,794 $ 1,868,302
Gross profit $ 58,795 $ 128,834 $ 90,565 $ 8,780 $ 286,974
Margin 4.4% 33.4% 63.5% 99.8% 15.4%
Gasoline gallons     394,055                
 
       
Gasoline Gallons Gasoline Margin
Same-store Sales Growth (Cents per gallon, excluding credit card fees)
          Fiscal           Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

F2014 3.2 % F2014

22.1

¢

F2013 -0.2 -0.4 % 0.6 % 1.0 % 0.1 % F2013 14.9

14.9

¢

13.8

¢

17.0

¢

15.2

¢

F2012   -2.7     -2.9 %   -2.4 %   2.5 %   -1.5 % F2012   17.2    

16.7

¢

 

13.6

¢

 

13.7

¢

 

15.3

¢

             
Grocery & Other Merchandise Grocery & Other Merchandise
Same-store Sales Growth Margin
Fiscal Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

F2014 6.1 % F2014 32.7 %
F2013 2.6 -0.7 % 3.2 % -0.2 % 0.8 % F2013 33.4 33.4 % 31.7 % 31.7 % 32.6 %
F2012   6.2     5.8 %   6.3 %   8.5 %   6.7 % F2012   32.5     32.5 %   31.8 %   33.0 %   32.5 %
             
Prepared Food & Fountain Prepared Food & Fountain
Same-store Sales Growth Margin
Fiscal Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

F2014 11.9 % F2014 61.8 %
F2013 10.6 10.1 % 11.6 % 4.4 % 8.6 % F2013 63.5 62.5 % 60.6 % 60.5 % 61.8 %
F2012   15.3     14.2 %   12.6 %   16.8 %   14.3 % F2012   61.2     59.5 %   61.2 %   60.8 %   60.7 %
 

Corporate information is available at this Web site: http://www.caseys.com . Earnings will be reported during a conference call on September 10, 2013. The call will be broadcast live over the Internet at 9:30 a.m. CDT via the Investor Relations section of our Web site and will be available in an archived format.

Copyright Business Wire 2010

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