Casey’s General Stores, Inc. (Nasdaq: CASY) today reported basic earnings per share of $1.04 for the first quarter of fiscal 2012 ended July 31, 2011 compared to $0.73 for the first quarter a year ago. Basic earnings per share were up 28.4% after adjusting prior year’s results for fees associated with the hostile takeover attempt by Alimentation Couche-Tard, Inc. “We are off to a great start for fiscal 2012 with a record quarter, due in part by operating 132 more stores this quarter versus last year’s first quarter,” said President and CEO Robert J. Myers. “The features of the new store design are proving to be very popular with our customers and are driving inside sales. We will continue to incorporate these features in our new store construction, replacements, remodels, and acquisitions.”

Gasoline – The Company’s annual goal is to increase same-store gallons 1% with an average margin of 13.5 cents per gallon. For the first quarter, same-store gallons sold were down 2.7%, however the average margin was 17.2 cents per gallon. “The average retail price of fuel increased over 39% from last year, which adversely impacted same store gallons sold,” said Myers. “Fortunately the gas margin environment continues to be strong.” Total gallons sold for the quarter were up 6% to 380.1 million gallons.

Grocery and Other Merchandise – Casey’s annual goal is to increase same-store sales 5.8% with an average margin of 32.8%. For the quarter, same store sales were up 6.2% with an average margin of 32.5%. “Operating more stores as well as favorable weather enabled us to achieve a 15.1% increase in grocery and other merchandise sales,” stated Myers. “However, margins are still being impacted by a competitive cigarette market and a shift to larger pack purchases for beer.” Total sales for the quarter were $365.2 million and gross profit rose 14.1% to $118.7 million.

Prepared Food & Fountain – The goal for fiscal 2012 is to increase same-store sales 7.7% with an average margin of 61.8%. For the first quarter, same store sales were up 15.3% with an average margin of 61.2%. Commodity pressures, particularly cheese and coffee, caused the margin shortfall. “The addition of made-to-order sub sandwiches and expanded coffee continues to enhance prepared food sales,” said Myers. “We have both of these programs in approximately 20% of our store base right now and are looking to add more.” Total sales for the category were up 21% to $123.8 million, gross profit increased over 16% to $75.8 million.

Operating Expenses – For the first quarter, operating expenses were $171.4 million compared to $152.4 million for the first quarter a year ago. Operating expenses increased 17.3% after adjusting prior year’s expenses for the $6.2 million in legal and advisory fees associated with the hostile takeover attempt. “Operating more stores along with a $7.8 million increase in credit card fees and fuel expense combined were very impactful to operating expenses,” stated Myers.

Expansion – The Company’s annual goal is to increase the number of stores 4-6%. The Company acquired 27 stores and completed 2 new store construction projects in the first quarter, bringing the store count to 1,665. “Our disciplined acquisition strategy has enhanced shareholder value over the years,” stated Myers. “We will continue this diligent approach to future store growth and are optimistic about achieving this year’s goal.” The Company also has 15 new stores under construction and 6 stores under written agreement to purchase.

Dividend – At its September meeting, the Board of Directors declared a quarterly dividend of $0.15 per share. The dividend is payable November 15, 2011 to shareholders of record on November 1, 2011.
Casey’s General Stores, Inc.
Condensed Consolidated Statements of Earnings

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

(Unaudited)
 
  Three months ended July 31,
2011   2010
Total revenue $ 1,873,832 $ 1,362,027

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

1,607,050

1,128,056
Gross profit 266,782 233,971
Operating expenses 171,416 152,386
Depreciation and amortization 22,895 19,563
Interest, net 8,934 2,527
Earnings before income taxes 63,537 59,495
Federal and state income taxes 24,146 22,209
Net earnings $ 39,391 $ 37,286
 
Earnings per common share
 
Basic $ 1.04 $ .73
 
Diluted $ 1.03 $ .73
 
 
Basic weighted average shares outstanding 38,024,376 50,946,829
Plus effect of stock options 307,838 282,287
Diluted weighted average shares outstanding 38,332,214 51,229,116
 

Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)
   

July 31,

April 30,
2011 2011
Assets
Current assets
Cash and cash equivalents $ 139,017 $ 59,572
Receivables 22,337 20,154
Inventories 163,942 159,200
Prepaid expenses 2,439 1,180
Deferred income taxes 11,195 10,405
Income taxes receivable -------- 43,376
Total current assets     338,930     293,887
Other assets, net of amortization 11,817 11,721
Goodwill 104,206 88,042

Property and equipment, net of accumulated depreciation of $797,914 at July 31, 2011, and of $777,342 at April 30, 2011
1,254,103 1,217,305
Total assets   $ 1,709,056   $ 1,610,955
 
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank $ -------- $ 600
Current maturities of long-term debt 1,002 $ 1,167
Accounts payable 245,808 215,675
Accrued expenses 92,460 77,058
Income taxes payable 5,194 --------
Total current liabilities     344,464     294,500
Long-term debt, net of current maturities 678,653 678,680
Deferred income taxes 213,502 203,078
Deferred compensation 13,857 13,858
Other long-term liabilities 18,938 16,943
Total liabilities 1,269,414 1,207,059
 
Total shareholders' equity 439,642 403,896
   
Total liabilities and shareholders' equity   $ 1,709,056   $ 1,610,955
 

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
7/31/11 Gasoline Merchandise & Fountain Other Total
 
Sales

$

1,377,914

$

365,171

$

123,843

$

6,904

$

1,873,832
Gross profit

$

65,320

$

118,729

$

75,843

$

6,890

$

266,782
Margin 4.7% 32.5% 61.2% 99.8% 14.2%
 
Gasoline gallons 380,096
 
Three months ended
7/31/10
 
Sales

$

936,654

$

317,206

$

102,382

$

5,785

$

1,362,027
Gross profit

$

58,906

$

104,025

$

65,270

$

5,770

$

233,971
Margin 6.3% 32.8% 63.8% 99.7% 17.2%
 
Gasoline gallons     358,590                                            
                         
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
F2012 -2.7 % F2012

17.2

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

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year
F2012 6.2 % F2012 32.5 %
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  
                         
Prepared Food & Fountain Prepared Food & Fountain
Same-store Sales Growth Margin
Fiscal Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year
F2012 15.3 % F2012 61.2 %
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  
 

Corporate information is available at this Web site: http://www.caseys.com . Earnings will be reported during a conference call on September 8, 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.

Copyright Business Wire 2010