Casey's Finishes the Year Strong and Remains Optimistic for Fiscal 2014

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Casey's Finishes the Year Strong and Remains Optimistic for Fiscal 2014

ANKENY, Iowa--(BUSINESS WIRE)-- Casey's General Stores, Inc. (NAS: CASY) today reported $0.60 in diluted earnings per share for the fourth quarter of fiscal year ended April 30, 2013 compared to $0.60 for the same period a year ago. For the year, diluted earnings per share were $2.86 versus $3.04 for the same period last year. The Company incurred approximately $3.5 million in non-cash charges in the 4th quarter related to the write-down of an unrecoverable accounts receivable balance, as well as charges pertaining to accelerated depreciation and impairment for replaced, closed, and seven underperforming stores.

"A difficult cigarette environment and challenging weather comparisons adversely impacted sales during fiscal 2013," said Chairman and CEO Robert J. Myers. "However, in the fourth quarter we saw strong sales gains with the recent implementation of a "fuel saver" program in partnership with Hy-Vee grocery stores and competitive cigarette pricing adjustments made earlier in the fiscal year. We expect this momentum will continue into fiscal 2014."


Gasoline—The Company's annual goal for fiscal 2013 was to increase same-store gasoline gallons sold 1% with an average margin of 14.0 cents per gallon. For the quarter, same-store gallons sold rose 1.0% with an average margin of 17.0 cents per gallon. "The fourth quarter gas margin benefited from our ability to sell 10.3 million renewable fuel credits for $4.8 million." said Myers. For the fiscal year, total gallons sold were up 4% to 1.5 billion with an average margin of 15.2 cents, while gross profit rose 2.7%. Same-store gallons for the year were relatively flat compared to a year ago.

Grocery & Other Merchandise—Casey's fiscal 2013 goal was to increase same-store sales 6.2% with an average margin of 32.7%. For the quarter, same-store sales were down 0.2% from the same period a year ago with an average margin of 31.7%. For the year, same-store sales finished up 0.8% with an average margin of 32.6%. "Challenging weather comparisons throughout the entire quarter hindered sales while cigarette price adjustments adversely impacted margins," stated Myers. "However we are encouraged by the recent stabilization in cigarette sales and expect continued growth in beer and beverage sales during fiscal 2014." Total annual sales for the category were up 3.9% compared to the prior year, and gross profit rose 4.4% to $462.7 million.

Prepared Food & Fountain—The goal for fiscal 2013 was to increase same-store sales 11% with an average margin of 61.1%. Same-store sales for the fourth quarter increased 4.4% with an average margin of 60.5%. For the year, same-store sales were up 8.6% with an average margin of 61.8%. "Unfavorable weather and higher input costs impacted fourth quarter results," said Myers. "Looking ahead to fiscal 2014, we will continue to grow this category by implementing major remodels, 24-hour conversions, and pizza delivery where appropriate." Year to date, total sales were up 13% to $564.9 million, and gross profit rose 15.1% to $349 million.

Operating Expenses—For the fiscal year, operating expenses increased 10.4% to $760.4 million. For the quarter, operating expenses were up 8.6%. In the fourth quarter, the Company wrote-off an accounts receivable balance of $1.5 million from a check collecting service that went out of business. The Company also incurred an impairment charge of approximately $0.7 million for seven underperforming stores that are expected to be closed in fiscal 2014. "The majority of the operating expense increase was due to various initiatives implemented to grow the business, particularly newly constructed, acquired, and replaced stores along with expanded hours, pizza delivery, and major remodels," said Myers. For the year, store level operating expenses increased less than 4% for the remaining unchanged base of stores.

Expansion—The fiscal 2013 goal was to increase the total number of stores 4-6%. For the fiscal year, the Company opened 26 acquired stores and completed 31 new-store constructions, bringing the year-end store count to 1,749. In addition to this activity, the Company also replaced 26 stores during the year. "We currently have 15 new stores and 16 replacement stores under construction, as well as 20 stores under contract to acquire," said Myers. "We have entered into several new markets this past year and we are excited about our growth opportunities in fiscal 2014." The Company has over 70 locations under contract for both new store and replacement store construction.

Fiscal 2014 Goals—The corporate performance goals for fiscal 2014 are as follows:

  • Increase same-store gasoline gallons sold 1.5% with an average margin of 15 cents per gallon.
  • Increase same-store grocery and other merchandise sales 5% with an average margin of 32.3%.
  • Increase same-store prepared food and fountain sales 9% with an average margin of 62.0%.
  • Build or acquire 70 - 105 stores (4-6%) and replace 20 existing locations.

Dividend— At its June meeting, the Board of Directors increased the quarterly dividend to $0.18 per share. The dividend is payable August 15, 2013 to shareholders of record on August 1, 2013.

 
Casey's General Stores, Inc.
Condensed Consolidated Statements
of Comprehensive Income
(Amounts in thousands, except income per share)
(Unaudited)
 
Three months ended April 30, Year ended April 30,
 2013 20122013 2012
Total revenue$1,808,5291,752,504$7,250,8406,987,804

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

1,542,137

1,507,264

6,168,475

5,984,114

Gross profit266,392245,2401,082,3651,003,690
Operating expenses191,054175,952760,365688,431
Depreciation and amortization29,91025,609111,82396,552
Interest, net8,7438,75135,04835,192
Income before income taxes36,68534,928175,129183,515
Federal and state income taxes13,41311,85964,50466,724
Net income23,27223,069110,625116,791
Other comprehensive income--------------------
Comprehensive income$23,27223,069$110,625116,791
 
Net income per common share
Basic$.61.61$2.893.07
Diluted$.60.60$2.863.04

Basic weighted average shares outstanding

38,342

38,120

38,297

38,068

Plus effect of stock compensation353361323324

Diluted weighted average shares outstanding

38,695

38,481

38,620

38,392

 

Casey's General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

  

April 30,

April 30,

20132012
Assets
Current assets
Cash and cash equivalents$41,271$55,919
Receivables20,90021,700
Inventories189,514170,794
Prepaid expenses1,3961,298
Deferred income taxes9,91613,143
Income tax receivable9,82016,424
Total current assets  272,817  279,278
Other assets, net of amortization14,48512,403
Goodwill114,791104,385
Property and equipment, net of
accumulated depreciation of $952,286 at
April 30, 2013, and $860,998 at April 30, 20121,581,9251,378,749
Total assets $1,984,018 $1,774,815
 
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank$59,100$-----
Current maturities of long-term debt15,81010,737
Accounts payable232,913211,165
Accrued expenses

89,925

84,739
Total current liabilities  397,748  306,641
Long-term debt, net of current maturities653,081667,930
Deferred income taxes293,708260,405
Deferred compensation15,78714,698
Other long-term liabilities21,39919,100
Total liabilities

1,381,723

1,268,774
 
Total shareholders' equity602,295506,041
  
Total liabilities and shareholders' equity $1,984,018 $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)
     
Year ended

 

Grocery & OtherPrepared Food
4/30/13

Gasoline

Merchandise& FountainOtherTotal
 
Sales$5,229,157$1,418,711$564,924$38,048$7,250,840
Gross profit$232,718$462,663$348,993$37,991$1,082,365
Margin4.5%32.6%61.8%99.8%14.9%
 
Gasoline gallons1,535,140
 
Year ended
4/30/12
 
Sales$5,092,311$1,364,995$499,712$30,786$6,987,804
Gross profit$226,559$443,245$303,159$30,727$1,003,690
Margin4.4%32.5%60.7%99.8%14.4%
 
Gasoline gallons  1,476,154        
 
         
Gasoline GallonsGasoline Margin
Same-store Sales Growth(Cents per gallon, excluding credit card fees)
     Fiscal     Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

F2013-0.2%-0.4%0.6%1.0%0.1%F2013

14.9

¢

14.9

¢

13.8

¢

17.0

¢

15.2

¢

F2012-2.7-2.9-2.42.5-1.5F201217.216.713.613.715.3
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

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

F20132.6%-0.7%3.2%-0.2%0.8%F201333.4%33.4
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