Casey’s General Stores, Inc. (Nasdaq: CASY) today reported earnings for the fourth quarter and the fiscal year ended April 30, 2011. For the quarter, basic earnings per share were $0.60 compared to $0.43 for the same quarter a year ago. Year to date, basic earnings per share were $2.24 versus $2.30 for the same period last year. The year-end results include approximately $27.4 million in expenses pertaining to the Company’s recapitalization plan completed in the second quarter as well as the unsolicited hostile offer and related actions by Alimentation Couche-Tard Inc. Excluding this activity from both fiscal years, basic earnings per share would have been $2.65 and $2.38 for fiscal 2011 and 2010 respectively, and $0.60 and $0.51 for the 4 th quarter of fiscal 2011 and 2010 respectively. “We are pleased with our ability to drive double digit gross profit increases across all of our major categories during the fourth quarter,” stated President and CEO Robert J. Myers. “Despite the challenges impacting our industry, we are optimistic about our ability to continue to drive shareholder value next fiscal year.”

Gasoline—The Company’s annual goal was to increase same-store gasoline gallons sold 1% with an average margin of 13.5 cents per gallon. For the quarter, same-store gallons sold were down 1.9%, adversely impacted by a 30% increase in retail gas prices during the same period. However, the strong gas margin environment continued in the fourth quarter resulting in an average margin of 15.6 cents per gallon. Same-store gallons sold for the year increased 1.6% with an average margin of 15.2 cents. “The favorable gasoline margin environment continued in the fourth quarter, resulting in a record gas margin for the fiscal year. We anticipate this favorable environment continuing into the first quarter of fiscal 2012,” said Myers. For the year, total gallons sold were up 8.6% to 1.4 billion, while gross profit dollars rose 19% from the prior year.

Grocery & Other Merchandise—Casey’s annual goal was to increase same-store sales 6% with an average margin of 33.9%. For the quarter, same-store sales rose 4.8% with an average margin of 32.1%. For the second consecutive quarter, the Company experienced double digit sales growth across all major areas of this category. As a result, total sales in the category were up 14% during the fourth quarter. “The margin was impacted by a competitive cigarette pricing environment and indirect commodity pressures,” said Myers. “Despite these adversities, we were able to drive gross profit 10.7% in this category during the quarter.” Total sales for the year are up 11.4% to $1.2 billion. Same-store sales for the year were up 4.6% with an average margin of 32.2%.

Prepared Food & Fountain—The goal for fiscal 2011 was to increase same-store sales 8% with an average margin of 63.1%. For the quarter, same-store sales were up 11.8% with an average margin of 60.2%, down in the same period a year ago primarily due to a rise in commodity costs throughout the category. Gross profit rose over 10% during the quarter primarily due to an increase in total sales of 17.5%. “The retail price increases taken earlier in the quarter along with the new store design and continued promotional activity are driving sales,” stated Myers. “Over the last five years same store sales increases have averaged 8.5% and we expect this strong performance to continue.” Same store sales for the year were up 7.7% with an average margin of 62.2%. Year to date, total sales were up 13.5% to $415.2 million compared to $365.8 million.

Operating Expenses—For the fiscal year, operating expenses increased 15.5% to $607.6 million. Excluding approximately $16 million in expenses related to the unsolicited hostile offer by Couche-Tard, expenses would have increased 12.4%. For the quarter, operating expenses were up 11.4% driven by a combined increase in credit card fees and fuel expense as well as operating more stores this quarter compared to the same period a year ago. “The higher retail gas price environment drove credit card fees to a record quarterly amount of over $18 million,” said Myers.

Expansion—The goal for fiscal 2011 was to increase the total number of stores 4-6%. For the year, the Company increased the store count nearly 7%, with 20 new store constructions and 89 acquired stores. “We are pleased with the recent acquisition environment and we have written agreements for an additional 33 locations,” said Myers. “In addition to unit growth, we replaced 15 stores and completed 120 major remodels.

Fiscal 2012 Goals—The corporate performance goals for fiscal 2012 are as follows:
  • Increase same-store gasoline gallons sold 1% with an average margin of 13.5 cents per gallon.
  • Increase same-store grocery and other merchandise sales 5.8% with an average margin of 32.8%.
  • Increase same-store prepared food and fountain sales 7.7% with an average margin of 61.8%.
  • Increase the total number of stores 4-6%.

Dividends—At its June meeting, the Board of Directors declared a quarterly dividend of $0.15 per share. The dividend is payable August 15, 2011 to shareholders of record on August 1, 2011.
           
 

Casey’s General Stores, Inc.

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)
 

Three months ended April 30,

Year ended April 30,
2011 2010 2011 2010
Total revenue $ 1,549,495 $ 1,179,806 $ 5,635,240 $ 4,637,087
Cost of goods sold (exclusive of

depreciation and amortization,

shown separately below)

 

1,332,307

 

990,543

 

4,754,173

 

3,844,735
Gross profit 217,188 189,263 881,067 792,352
Operating expenses 150,473 135,037 607,628 526,291
Depreciation and amortization 21,982 18,700 82,355 73,546
Interest, net 8,867 2,774 28,497 10,933
Loss on early retirement of debt ----------- ----------- 11,350 -----------
Earnings before income taxes 35,866 32,752 151,237 181,582
Federal and state income taxes 13,096 10,817 56,614 64,620
Net earnings $ 22,770 $ 21,935 $ 94,623 $ 116,962
 
Basic earnings per share $ .60 $ .43 $ 2.24 $ 2.30
Weighted average shares

outstanding
37,956 50,920

42,285

50,899
 
Diluted earnings per share $ .60 $ .43 $ 2.22 $ 2.29
Weighted average shares

outstanding
38,257 51,120

42,567

51,053
 
     
Casey’s General Stores, Inc.
Condensed Consolidated Balance Sheets

(Dollars in thousands)
 

April 30,

April 30,
2011 2010
Assets
Current assets
Cash and cash equivalents $ 59,572 $ 151,676
Receivables 20,154 12,111
Inventories 159,200 124,951
Prepaid expenses 1,180 1,129
Deferred income taxes 10,405 9,417
Income taxes receivable 43,376 10,801
Total current assets     293,887       310,085
Other assets, net of amortization 11,721 10,232
Goodwill 88,042 57,547
Property and equipment, net of
accumulated depreciation of $777,342 at
April 30, 2011, and of $706,994 at April 30, 2010 1,217,305 1,010,911
Total assets   $ 1,610,955     $ 1,388,775
 
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank $ 600 $ -----------
Current maturities of long-term debt 1,167 24,577
Accounts payable 215,675 145,334
Accrued expenses 77,058 70,975
Total current liabilities     294,500       240,886
Long-term debt, net of current maturities 678,680 154,754
Deferred income taxes 203,078 141,229
Deferred compensation 13,858 12,788
Other long-term liabilities 16,943 14,799
Total liabilities 1,207,059 564,456
 
Total shareholders' equity 403,896 824,319
   
Total liabilities and shareholders' equity   $ 1,610,955     $ 1,388,775
 
 
Sales and Gross Profit by Product

(Amounts in thousands)
                   
Year ended Grocery & Other Prepared Food
4/30/11 Gasoline Merchandise & Fountain Other Total
 
Sales $ 3,998,702 $ 1,195,613 $ 415,240 $ 25,685 $ 5,635,240
Gross profit $ 212,038 $ 385,250 $ 258,151 $ 25,628 $ 881,067
Margin 5.3 % 32.2 % 62.2 % 99.8 % 15.6 %
 
Gasoline gallons 1,394,457
 
Year ended
4/30/10
 
Sales $ 3,177,490 $ 1,073,508 $ 365,793 $ 20,296 $ 4,637,087
Gross profit $ 178,176 $ 360,432 $ 233,507 $ 20,237 $ 792,352
Margin 5.6 % 33.6 % 63.8 % 99.7 % 17.1 %
 
Gasoline gallons       1,283,479                          
 
       
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
F2011 1.5 % 3.6 % 3.5 % -1.9 % 1.6 % F2011 16.4¢ 14.9¢ 13.9¢ 15.6¢ 15.2¢
F2010 3.2 -0.7 -2.9 0.2 -0.1 F2010 15.7 14.3 12.4 13.1 13.9
F2009   0.5       0.2       2.1       1.2       1.0   F2009   15.6     13.7     9.9     12.1     12.9
 
       
Grocery & Other Merchandise Grocery & Other Merchandise
Same-store Sales Growth Margin
                  Fiscal                   Fiscal
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
F2011 2.0 % 6.9 % 5.8 % 4.8 % 4.6 % F2011 32.8 % 32.9 % 30.9 % 32.1 % 32.2 %
F2010 6.4 1.9 1.7 3.1 3.3 F2010 34.3 34.1 32.7 33.1 33.6
F2009   4.7       4.9       6.5       8.0       5.9   F2009   34.0       33.9       32.9       33.7       33.7  
 
       
Prepared Food & Fountain Prepared Food & Fountain
Same-store Sales Growth Margin
                  Fiscal                   Fiscal
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
F2011 2.4 % 7.2 % 10.5 % 11.8 % 7.7 % F2011 63.8 % 62.7 % 62.1 % 60.2 % 62.2 %
F2010 6.6 3.4 1.4 5.3 4.2 F2010 63.8 64.6 62.8 64.1 63.8
F2009   12.3       9.3       8.1       7.2       9.1   F2009   60.5       60.6       61.8       62.7       61.4  

Corporate information is available at this Web site: http://www.caseys.com . Earnings will be reported during a conference call on June 14, 2011. 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.

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