Casey's General Stores, Inc. (Nasdaq: CASY) today reported diluted earnings per share of $1.28 for the second quarter of fiscal 2015 ended October 31, 2014, compared to $1.01 for the same quarter a year ago. Year to date, diluted earnings per share were $2.56 compared to $2.40 a year ago. "Total inside sales were up 13.6% and total fuel gallons sold were up 8.7% for the quarter," said Chairman and CEO Robert J. Myers. "The positive sales performance, along with strong fuel margins, helped offset food commodity pressures the Company has experienced throughout the year."

Fuel - The Company's annual goal is to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. For the second quarter, same-store gallons sold were up 2.3% with an average margin of 19.5 cents per gallon. The Company sold 13 million renewable fuel credits for $6.3 million during the second quarter. "We believe same-store fuel sales have benefited from the lower retail prices as well as our fuel saver program," said Myers. "Fuel margins remained strong through the second quarter due in part to a steady decline in wholesale costs." Total gallons sold for the year were up 8.8% with an average margin of 19.2 cents per gallon. Year to date, same-store gallons were up 2.6%.

Grocery and Other Merchandise - Casey's annual goal is to increase same-store sales 5.3% with an average margin of 32.1%. For the quarter, same-store sales were up 6.6% with an average margin of 32.3%. Myers stated, "The entire category continued to perform well through the second quarter. Packaged beverages are performing especially well, due in large part to our expanded cooler set in new, remodeled, and replaced stores." Year to date, total sales for the category were $945.5 million and total gross profit was up 12.3% to $306.7 million. Same-store sales for the six months ended were up 7.2%.

Prepared Food & Fountain - The goal for fiscal 2015 is to increase same-store sales 9.5% with an average margin of 60%. For the second quarter, same-store sales were up 11.1% with an average margin of 59.3%. "Our operational initiatives continue to drive sales in the category, and we were able to implement strategic price adjustments at the beginning of the fiscal year," said Myers. "While the margin has been impacted by high commodity costs, we have experienced a reduction in cheese costs since the end of the quarter." Total sales for the category were up 17.1% to $395.8 million year-to-date while gross profit rose 12.9% to $235.8 million. Year to date, same store sales are up 11.1%.

Operating Expenses - Year to date, operating expenses increased 13.1% to $489.1 million. For the second quarter, operating expenses were up 13% to $244.8 million. "Operating expenses are up primarily due to newly built, acquired and replaced stores, along with the operational initiatives we have implemented to drive inside sales," said Myers. "Store level operating expenses for locations that have not been impacted by the initiatives were up 4.2% for the quarter."

Expansion - The Company's annual goal is to build or acquire 72 to 108 stores and replace 25 existing stores. As of the end of the second quarter, the Company opened 21 new stores and acquired 29 stores. The Company also completed 13 replacements. "The Company is in excellent position to meet our expansion goal," stated Myers. "We are pleased with the initial performance of our recently acquired chain of stores in the Fargo, North Dakota area, and our pipeline of new store construction sites is very full." The Company currently has 26 new and 14 replacement stores under construction, as well as nine store acquisitions, 44 new sites, and 31 replacement sites under contract to purchase.

Dividend - At its December meeting, the Board of Directors declared a quarterly dividend of $0.20 per share. The dividend is payable February 16, 2015 to shareholders of record on February 2, 2015.
 

 

 

Casey's General Stores, Inc.

Condensed Consolidated
Statements of Income

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

(Unaudited)
 

Three months ended October 31,
 

Six months ended October 31,
  2014   2013 2014   2013
Total revenue $ 2,150,211 2,015,885 $ 4,441,397 4,130,634

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

 

1,778,929

 

1,696,600

 

3,699,201

 

3,468,928
Gross profit 371,282 319,285 742,196 661,706
Operating expenses 244,781 216,529 489,099 432,503
Depreciation and amortization 37,275 32,416 73,524 62,917
Interest, net 10,360 9,896 20,866 19,472
Income before income taxes 78,866 60,444 158,707 146,814
Federal and state income taxes 28,997 21,014 58,741 53,589
Net Income $ 49,869 39,430 $ 99,966 93,225
 
Net income per common share
Basic $ 1.29 1.03 $ 2.59 2.43
Diluted $ 1.28 1.01 $ 2.56 2.40
Basic weighted average shares 38,706,611 38,455,216 38,668,453 38,424,146
Plus effect of stock compensation 352,056 432,697 348,522 408,634
Diluted weighted average shares 39,058,667 38,887,913 39,016,975 38,832,780
 
       
Casey's General Stores, Inc.
Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)
 

October 31,

April 30,
2014 2014
Assets
Current assets
Cash and cash equivalents $ 71,550 $ 121,641
Receivables 31,034 25,841
Inventories 199,710 204,833
Prepaid expenses 2,674 1,478
Deferred income taxes 19,296 23,292
Income tax receivable -------- 12,473
Total current assets       324,264       389,558
Other assets, net of amortization 16,847 15,947
Goodwill 127,031 120,406

Property and equipment, net of accumulated depreciation of $1,119,932 at October 31, 2014, and of $1,062,278 at April 30, 2014
1,933,766 1,778,965
Total assets     $ 2,401,908     $ 2,304,876
 
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank $ -------- $ --------
Current maturities of long-term debt 7,888 553
Accounts payable 234,706 250,807
Accrued expenses 144,277 139,529
Income taxes payable 13,301 --------
Total current liabilities       400,172       390,889
Long-term debt, net of current maturities 845,946 853,642
Deferred income taxes 318,478 318,023
Deferred compensation 17,193 16,558
Other long-term liabilities 20,017 22,500
Total liabilities 1,601,806 1,601,612
 
Total shareholders' equity 800,102 703,264
   
Total liabilities and shareholders' equity     $ 2,401,908     $ 2,304,876
 

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.

The previously announced revisions to our financial results for the fiscal 2015 first quarter and fiscal 2014 are reflected in year-to-date results and comparisons to prior periods.
 

Sales and Gross Profit by Product (Amounts in thousands)

Three months ended 10/31/14
               
Grocery & Other Prepared Food

Fuel

Merchandise

& Fountain

Other

Total
Sales $ 1,470,768 $ 466,934 $ 201,196 $ 11,313 $ 2,150,211
Gross profit $ 89,637 $ 151,025 $ 119,322 $ 11,298 $ 371,282
Margin 6.1 % 32.3 % 59.3 % 99.9 % 17.3 %
 
Fuel gallons 460,740
 
Three months ended 10/31/13
Sales $ 1,416,980 $ 416,552 $ 171,751 $ 10,602 $ 2,015,885
Gross profit $ 67,816 $ 134,708 $ 106,171 $ 10,590 $ 319,285
Margin 4.8 % 32.3 % 61.8 % 99.9 % 15.8 %
 
Fuel gallons       423,895                  
 
 

Sales and Gross Profit by Product (Amounts in thousands)
 

Six months ended 10/31/14
Grocery & Other Prepared Food

Fuel

Merchandise

& Fountain

Other

Total
Sales $ 3,077,895 $ 945,520 $ 395,807 $ 22,175 $ 4,441,397
Gross profit $ 177,506 $ 306,710 $ 235,834 $ 22,146 $ 742,196
Margin 5.8 % 32.4 % 59.6 % 99.9 % 16.7 %
 
Fuel gallons 924,954
 
Six months ended 10/31/13
Sales $ 2,931,854 $ 840,137 $ 337,999 $ 20,644 $ 4,130,634
Gross profit $ 159,044 $ 273,119 $ 208,925 $ 20,618 $ 661,706
Margin 5.4 % 32.5 % 61.8 % 99.9 % 16.0 %
 
Fuel gallons       850,444                  
                   
Fuel Gallons Fuel Margin
Same-store Sales Growth (Cents per gallon, excluding credit card fees)
          Fiscal           Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year
F2015 3.0 % 2.3 % F2015

18.9

¢

19.5

¢
F2014 3.2 4.2 3.8 % 1.8 % 3.1 % F2014 21.4 16.0

13.6

¢

13.1

¢

16.1

¢
F2013   -0.2     -0.4     0.6     1.0     0.1   F2013   14.2     14.2     13.1     16.3     14.4  
           
Grocery & Other Merchandise Grocery & Other Merchandise
Same-store Sales Growth Margin
  Fiscal Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year
F2015 7.7 % 6.6 % F2015 32.5 % 32.3 %
F2014 6.1 10.2 6.5 % 7.2 % 7.4 % F2014 32.7 32.3 31.1 % 32.1 % 32.1 %
F2013   2.6     -0.7     3.2     -0.2     0.8   F2013   33.4     33.4     31.7     31.7     32.6  
           
Prepared Food & Fountain Prepared Food & Fountain
Same-store Sales Growth Margin
Fiscal Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year
F2015 11.1 % 11.1 % F2015 59.9 % 59.3 %
F2014 11.9 12.3 10.7 % 12.1 % 11.8 % F2014 61.8 61.8 60.8 % 60.1 % 61.1 %
F2013   10.6     10.1     11.6     4.4     8.6   F2013   63.5     62.5     60.6     60.5     61.8  
 

Corporate information is available at this Web site: http://www.caseys.com . Earnings will be reported during a conference call on December 11, 2014. The call will be broadcast live over the Internet at 9:30 a.m. CST via the Investor Relations section of our Web site and will be available in an archived format.

Copyright Business Wire 2010