Casey's General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.05 for the fourth quarter of fiscal year ended April 30, 2015 compared to $0.54 for the same period a year ago. For the year, diluted earnings per share were $4.62 versus $3.26 for the same period last year. "Fiscal 2015 was a tremendous year for Casey's," said Chairman and CEO Robert J. Myers. "Sales were strong throughout all of our categories, and the Company is poised to grow the business in fiscal 2016 with a variety of initiatives to improve the existing store base, while at the same time building and acquiring more stores."

Fuel - The Company's annual goal for fiscal 2015 was to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. Annual same-store gallons sold were up 2.6% with an average margin of 19.3 cents per gallon. For the quarter, same-store gallons rose 3.5% with an average margin of 16.9 cents per gallon. The Company sold 13.9 million renewable fuel credits for $9.7 million in the fourth quarter. "Same-store gallons sold are benefiting from lower retail fuel prices," said Myers. "The steady fall in wholesale cost midyear along with favorable renewable fuel credits contributed to a record high fuel margin for the year." For fiscal 2015, total gallons sold were up 9.1% to 1.8 billion, while gross profit dollars rose 31.1% to $351.2 million.

Grocery and Other Merchandise - Casey's goal was to increase same-store sales 5.3% with an average margin of 32.1%. For the year, same-store sales were up 7.8% with an average margin of 32.1%. For the fourth quarter, same-store sales were up 9.7% with an average margin of 32.1%. "Sales were strong throughout the entire category during the fiscal year, and we are especially pleased with the build in momentum during the fourth quarter," stated Myers. "We are encouraged by recent premium cigarette sales gains, while beer and beverage sales continue their strong performance as we expand our initiatives throughout the chain, particularly 24-hour conversions and major store remodels." For the year, total sales were up 13.4% to $1.8 billion, and gross profit dollars rose 13.3% to $575.5 million.

Prepared Food and Fountain - Casey's annual goal was to increase same-store sales 9.5% with an average margin of 60%. For the year, same-store sales were up 12.4% with an average margin of 59.7%. For the quarter, same-store sales were up 13.5% with an average margin of 60.9%. "Prepared food margin was under pressure for most of the fiscal year due to high input costs," said Myers. "Fortunately we experienced some relief towards the end of the third quarter and have locked in favorable cheese costs through the end of December 2015 and coffee through December 2016. Same-store sales continue to be favorably impacted by several initiatives, and we are particularly excited about rolling out our online pizza ordering system during fiscal 2016." For fiscal 2015, total sales were up 18.5% to $780.9 million, and gross profit dollars were up 15.6% to $466.1 million.

Operating Expenses - For the fiscal year, operating expenses increased 12.0% to $960.4 million. For the fourth quarter, operating expenses were up 10.7%. "The majority of our operating expense increase is related to new and acquired stores, as well as store replacements and the various operational initiatives in place throughout this fiscal year as well as the prior year," said Myers. Operating expenses for stores that have not been impacted by the initiatives were up 3.7% for the year.

Expansion - The Company's annual goal was to build or acquire 72 to 108 stores and replace 25 existing locations. For the fiscal year, the Company opened 45 new stores and acquired 36, for a total of 81 stores. The Company also completed 27 replacements and 27 major remodels. "The Company believes it is important to grow the business through new and acquired stores while at the same time enhancing the performance of our existing store base," said Myers. "Our prudent approach to acquisitions and our ability to execute on the integration of newly constructed and acquired stores will enable us to deliver shareholder value for many years to come."

Fiscal 2016 goals - The corporate performance goals for fiscal 2016 are as follows:
  • Increase same-store fuel gallons sold 2% with an average margin of 16.7 cents per gallon
  • Increase same-store grocery and other merchandise sales 6.2% with an average margin of 32.1%
  • Increase same-store prepared food and fountain sales 10.4% with an average margin of 60.8%
  • Build or acquire 75 to 113 stores, replace 10 existing locations and complete 100 major remodels.

Dividend - At its June meeting, the Board of Directors increased the quarterly dividend to $0.22 per share. The dividend is payable August 17 th to shareholders of record on August 3 rd, 2015.
 
Casey's General Stores, Inc.
Condensed Consolidated
Statements of Income

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

(Unaudited)
 
    Three Months Ended April 30,     Twelve Months Ended April 30,
2015     2014 2015     2014
Total revenue $ 1,653,858 1,919,566 $ 7,767,216 7,840,255
Cost of goods sold (exclusive of depreciation and amortization, shown separately below)   1,307,315 1,635,946   6,327,431 6,618,239
Gross profit 346,543 283,620 1,439,785 1,222,016
Operating expenses 232,543 210,123 960,424 857,297
Depreciation and amortization 42,156 35,556 156,111 131,160
Interest, net   10,168 10,320   41,225 39,915
Income before income taxes 61,676 27,621 282,025 193,644
Federal and state income taxes   20,333 6,679   101,397 66,824
Net income $ 41,343 20,942 $ 180,628 126,820
Net income per common share
Basic $ 1.06 0.54 $ 4.66 3.30
Diluted $ 1.05 0.54 $ 4.62 3.26
Basic weighted average shares 38,868,593 38,499,270 38,743,227 38,457,680
Plus effect of stock compensation   369,888 424,984   360,606 410,726
Diluted weighted average shares   39,238,481 38,924,254   39,103,833 38,868,406
 
 
Casey's General Stores, Inc.
Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)
 
    April 30, 2015     April 30, 2014
Assets
Current assets
Cash and cash equivalents $ 48,541 $ 121,641
Receivables 22,609 25,841
Inventories 197,331 204,833
Prepaid expenses 2,025 1,478
Deferred income taxes 15,531 23,292
Income tax receivable   19,223   12,473
Total current assets   305,260   389,558
Other assets, net of amortization 18,295 15,947
Goodwill 127,046 120,406
Property and equipment, net of accumulated depreciation of $1,185,246 at April 30, 2015 and $1,062,278 at April 30, 2014   2,019,364   1,778,965
Total assets $ 2,469,965 $ 2,304,876
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank $ $
Current maturities of long-term debt 15,398 553
Accounts payable 226,577 250,807
Accrued expenses   122,914   139,529
Total current liabilities   364,889   390,889
Long-term debt, net of current maturities 838,245 853,642
Deferred income taxes 354,973 318,023
Deferred compensation 17,645 16,558
Other long-term liabilities   18,984   22,500
Total liabilities   1,594,736   1,601,612
Total shareholders' equity   875,229   703,264
Total liabilities and shareholders' equity $ 2,469,965 $ 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 regarding an immaterial correction of an error for the fiscal 2015 first quarter and fiscal 2014 are reflected in year-to-date results and comparisons to prior periods.
 
Revenue and Gross Profit by Category (Amounts in thousands)
        Grocery & Other     Prepared Food        
Three months ended 4/30/2015 Fuel Merchandise & Fountain Other Total
Revenue $ 1,010,033 $ 436,591 $ 194,688 $ 12,546 $ 1,653,858
Gross profit $ 75,228 $ 140,230 $ 118,551 $ 12,534 $ 346,543
Margin 7.4 % 32.1 % 60.9 % 99.9 % 21.0 %
Fuel gallons 444,800
Three months ended 4/30/2014
Revenue $ 1,366,951 $ 378,251 $ 162,977 $ 11,387 $ 1,919,566
Gross profit $ 52,936 $ 121,388 $ 97,924 $ 11,372 $ 283,620
Margin 3.9 % 32.1 % 60.1 % 99.9 % 14.8 %
Fuel gallons 403,767
 
Revenue and Gross Profit by Category (Amounts in thousands)
Grocery & Other Prepared Food
Year ended 4/30/2015 Fuel Merchandise & Fountain Other Total
Revenue $ 5,144,385 $ 1,794,822 $ 780,887 $ 47,122 $ 7,767,216
Gross profit $ 351,155 $ 575,510 $ 466,056 $ 47,064 $ 1,439,785
Margin 6.8 % 32.1 % 59.7 % 99.9 % 18.5 %
Fuel gallons 1,816,596
Year ended 4/30/2014
Revenue $ 5,554,580 $ 1,583,234 $ 659,176 $ 43,265 $ 7,840,255
Gross profit $ 267,872 $ 507,936 $ 402,996 $ 43,212 $ 1,222,016
Margin 4.8 % 32.1 % 61.1 % 99.9 % 15.6 %
Fuel gallons 1,665,600
 
     
Fuel Gallons Fuel Margin
Same-store Sales Growth (Cents per gallon, excluding credit card fees)
    Q1     Q2     Q3     Q4    

FiscalYear
    Q1     Q2     Q3     Q4    

FiscalYear
F2015 3.0 % 2.3 % 2.2 % 3.5 % 2.6 % F2015 18.9 ¢ 19.5 ¢ 22.0 ¢ 16.9 ¢ 19.3 ¢
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
Q1 Q2 Q3 Q4

FiscalYear
Q1 Q2 Q3 Q4

FiscalYear
F2015 7.7 % 6.6 % 7.7 % 9.7 % 7.8 % F2015 32.5 % 32.3 % 31.2 % 32.1 % 32.1 %
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
Q1 Q2 Q3 Q4

FiscalYear
Q1 Q2 Q3 Q4

FiscalYear
F2015 11.1 % 11.1 % 14.1 % 13.5 % 12.4 % F2015 59.9 % 59.3 % 58.7 % 60.9 % 59.7 %
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 June 9, 2015. 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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