Casey's Opens 28 Stores in the Quarter, Positioned Well for Future Growth

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Casey's Opens 28 Stores in the Quarter, Positioned Well for Future Growth

ANKENY, Iowa--(BUSINESS WIRE)-- Casey's General Stores, Inc. (Nasdaq symbol CASY) today reported $0.40 in diluted earnings per share for the third quarter of fiscal 2013 ended January 31, 2013 compared to $0.43 for the same period a year ago. Year-to-date diluted earnings per share was $2.26 versus $2.44 for the same period last year. "The quarter was adversely impacted by a challenging cigarette environment," said Chairman and CEO Robert J. Myers. "However we did experience improved cigarette sales throughout the third quarter and continue to drive prepared food sales with several operational initiatives being implemented within our store base."

Gasoline—The Company's annual goal is to increase same-store gallons sold 1% with an average margin of 14.0 cents per gallon. For the third quarter, same-store gallons sold were up 0.6% with an average margin of 13.8 cents per gallon. "The retail price of fuel was in-line with the prior year's third quarter, which helped improve same-store gallons sold," said Myers. For the first nine months of the fiscal year, total gallons sold were up 3.6% with an average margin of 14.6 cents per gallon. Year-to-date same-store gallons sold were flat compared to prior year.


Grocery and Other Merchandise—Casey's annual goal is to increase same-store sales 6.2% with an average margin of 32.7%. For the quarter, same-store sales were up 3.2% with an average margin of 31.7%. "Cigarette sales stabilized in the third quarter due to retail price adjustments made throughout the fiscal year," stated Myers. "Although these adjustments adversely impacted our overall margin, the margin decline was partially offset by a more favorable product mix within the grocery and other merchandise category." For the nine months ended January 31, 2013, same-store sales were up 1.3% with an average margin of 32.9%. Total sales for the year are up 4.3% and gross profit increased 6.2% to $354.7 million.

Prepared Food and Fountain—The goal for fiscal 2013 is to increase same-store sales 11% with an average margin of 61.1%. For the quarter, same-store sales were up 11.6% with an average margin of 60.6%. "An increase in cheese prices coupled with some other input cost increases pulled the margin back this quarter," said Myers. "Fortunately same-store sales continue to perform well due in part to expanded 24-hour operations, pizza delivery, and major remodels." For the year, same-store sales were up 10.2% with an average margin of 62.2%. Year-to-date, total sales were up 14.8% and gross profit rose 17.7% to $265.1 million.

Operating Expenses—Year to date, operating expenses increased 11.1% to $569.3 million. For the third quarter, operating expenses were up 12.2%. Included in the third quarter results was a $1.1 million impairment charge stemming from the planned closure of several stores in a recent acquisition. "The majority of the operating expense increase for both the quarter and year were from newly built, acquired and replaced stores over the past two fiscal years, along with the continued roll-out of 24-hour stores, pizza delivery, and major remodels," stated Myers. Store-level operating expenses for locations not impacted by the initiatives were up approximately 3.8% for the quarter and 4% for the first nine months.

Expansion—The annual goal is to increase the total number of stores 4-6%. Through the first nine months of the fiscal year, the Company opened 18 newly constructed stores and 21 acquired stores. The Company also replaced 22 stores. "We will continue to update and improve our existing store base while maintaining our steady growth of new and acquired stores," said Myers. Casey's currently has 21 new stores and 12 replacement stores under construction, as well as 10 stores under written agreement to acquire. The Company also has 50 new sites and 25 replacement sites under contract to purchase.

Dividend—At its March meeting, the Board of Directors declared a quarterly dividend of $0.165 per share. The dividend is payable May 15, 2013 to shareholders of record on May 1, 2013.

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

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

(Unaudited)

        

Three months ended January 31,

Nine months ended January 31,

2013201220132012
Total revenue$1,662,3651,578,950$5,442,3115,235,300
Cost of goods sold (exclusive of

depreciation and amortization,

shown separately below)

 

1,412,679

 

1,350,200

 

4,626,338

 

4,476,850

Gross profit249,686228,750815,973758,450
Operating expenses189,872169,231569,311512,479
Depreciation and amortization28,22924,61681,91370,943
Interest, net8,7648,73026,30526,441
Income before income taxes22,82126,173138,444148,587
Federal and state income taxes7,3589,47451,09154,865
Net income15,46316,69987,35393,722
Other comprehensive income---------------------
Comprehensive income$15,46316,699$87,35393,722
 
Net income per common share
Basic$.40.44$2.282.46
Diluted$.40.43$2.262.44
Basic weighted average shares

outstanding

38,317,140

38,071,742

38,282,196

38,050,676

Plus effect of stock compensation304,948383,394331,934342,826
Diluted weighted average shares

outstanding

38,622,088

38,455,136

38,614,130

38,393,502

 
 
Casey's General Stores, Inc.
Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 
  

January 31,

  

April 30,

20132012
Assets
Current assets
Cash and cash equivalents$26,521$55,919
Receivables19,79021,700
Inventories185,126170,794
Prepaid expenses1,9531,298
Deferred income taxes10,60313,143
Income tax receivable16,56316,424
Total current assets   260,556   279,278
Other assets, net of amortization13,93112,403
Goodwill114,661104,385
Property and equipment, net of
accumulated depreciation of $926,087 at
January 31, 2013, and $860,998 at April 30, 20121,545,3121,378,749
Total assets  $1,934,460  $1,774,815
 
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank$58,600$-----
Current maturities of long-term debt13,30710,737
Accounts payable197,245211,165
Accrued expenses97,00584,739
Total current liabilities   366,157   306,641
Long-term debt, net of current maturities660,779667,930
Deferred income taxes286,963260,405
Deferred compensation15,32614,698
Other long-term liabilities21,74919,100
Total liabilities1,350,9741,268,774
 
Total shareholders' equity583,486506,041
  
Total liabilities and shareholders' equity  $1,934,460  $1,774,815
 

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)

         
Nine months endedGrocery & OtherPrepared Food
1/31/13GasolineMerchandise& FountainOtherTotal
 
Sales$3,909,787$1,078,448$426,282$27,794$5,442,311
Gross profit$168,431$354,700$265,091$27,751$815,973
Margin4.3%32.9%62.2%99.8%15.0%
 
Gasoline gallons1,157,077
 
Nine months ended
1/31/12
 
Sales$3,807,642$1,034,187$371,431$22,040$5,235,300
Gross profit$177,189$334,049$225,215$21,997$758,450
Margin4.7%32.3%60.6%99.8%14.5%
 
Gasoline gallons  1,116,684            
 
     
Gasoline GallonsGasoline Margin
Same-store Sales Growth(Cents per gallon, excluding credit card fees)
     Fiscal     Fiscal
Q1Q2Q3Q4YearQ1Q2Q3Q4Year
F2013-0.2%-0.4%0.6%F2013

14.9

¢

14.9

¢

13.8

¢

F2012-2.7-2.9-2.42.5%-1.5%F201217.216.713.6

13.7

¢

15.3

¢

F2011 1.5  3.6  3.5  -1.9  1.6 F2011 16.4  14.9  13.9  15.6  15.2 
  
Grocery & Other MerchandiseGrocery & Other Merchandise
Same-store Sales GrowthMargin
FiscalFiscal
Q1Q2Q3Q4YearQ1Q2Q3Q4Year
F20132.6%-0.7 Read Full Story

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