Casey's Reports Record Quarter with Strong Gas and Inside Sales

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Casey's Reports Record Quarter with Strong Gas and Inside Sales

ANKENY, Iowa--(BUSINESS WIRE)-- Casey's General Stores, Inc. (NAS: CASY) today reported diluted earnings per share of $1.43 for the first quarter of fiscal 2014 ended July 31, 2013, compared to $1.01 for the same quarter a year ago. "We are off to an excellent start of the fiscal year driven by strong sales throughout all categories," said President and CEO Robert J. Myers. "The gasoline category of our business is performing exceptionally well in both sales and margin."

Gasoline - The Company's annual goal is to increase same-store gallons sold 1.5% with an average margin of 15 cents per gallon. For the first quarter, same-store gallons sold were up 3.2% with an average margin of 22.1 cents per gallon. "The Company sold 12.6 million renewable fuel credits for $12.9 million during the first three months of the year," said Myers. "That, along with the sales lift we are experiencing due to our fuel saver program, helped us achieve a 60% increase in gasoline gross profit for the first quarter." Total gallons sold for the quarter were up 8.2% to 426.5 million gallons.


Grocery and Other Merchandise - Casey's annual goal is to increase same-store sales 5% with an average margin of 32.3%. For the quarter, same-store sales were up 6.1% with an average margin of 32.7%. "Due to the retail price adjustments made last fiscal year, Casey's made great strides in increasing our market share for cigarettes compared to the first quarter a year ago," stated Myers. "Despite the significant price reductions in cigarettes, gross profit increased 7.4% for the total category in the first quarter." Total sales for the quarter were $423.6 million and gross profit was $138.4 million.

Prepared Food & Fountain - The goal for fiscal 2014 is to increase same-store sales 9% with an average margin of 62.0%. For the first quarter, same-store sales were up 11.9% with an average margin of 61.8%. "The same-store sales increase is primarily due to the continued roll out of pizza delivery, major remodels and 24-hour expansion, along with some retail price increases implemented at the start of the fiscal year," said Myers. "We did experience a rise in the cost of several input costs, primarily cheese, which adversely impacted the margin relative to the prior year." Total sales for the category were up 16.5% to $166.2 million, and gross profit increased 13.5% to $102.8 million.

Operating Expenses - For the first quarter, operating expenses were $216 million compared to $189.4 million for the first quarter a year ago, up 14%. "Operating expenses are up primarily due to the various operational initiatives Casey's has been implementing to drive inside sales, along with the new construction and acquisition activity," said Myers. "Store-level operating expenses for locations not impacted by the initiatives were up 4.9% for the first quarter."

Expansion - The Company's annual goal is to build or acquire 70 to 105 stores and replace 20 existing locations. As of the end of the quarter, the Company opened four new stores and acquired three stores. The Company also completed five replacement stores. "Our pipeline of new store constructions and potential acquisitions is as full as it has been in recent history," stated Myers. "Our balance sheet remains very strong and we are well positioned to take advantage of opportunities." The Company currently has 31 new stores and 18 replacement stores under construction, as well as 19 stores under written agreement to acquire.

Dividend - At its September meeting, the Board of Directors declared a quarterly dividend of $0.18 per share. The dividend is payable November 15, 2013 to shareholders of record on November 1, 2013.

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

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

(Unaudited)

 

 

Three months ended July 31,

2013 2012
Total revenue$2,114,749$1,868,302

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

1,769,239

1,581,328

Gross profit345,510286,974
Operating expenses215,974189,399
Depreciation and amortization30,50126,536
Interest, net9,4568,904
Income before income taxes89,57962,135
Federal and state income taxes33,86923,104
Net income$55,710$39,031
 
Net income per common share
 
Basic$1.45$1.02
 
Diluted$1.43$1.01
 
 
Basic weighted average shares outstanding38,393,07638,224,608
Plus effect of stock options and restricted stock434,809345,690
Diluted weighted average shares outstanding38,827,88538,570,298
 

Casey's General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

  

July 31,

April 30,

20132013
Assets
Current assets
Cash and cash equivalents$190,947$41,271
Receivables25,91820,900
Inventories205,674189,514
Prepaid expenses2,8291,396
Deferred income taxes12,2699,916
Income taxes receivable--------9,820
Total current assets  437,637  272,817
Other assets, net of amortization14,79614,485
Goodwill114,791114,791

Property and equipment, net of accumulated depreciation of $975,829 at July 31, 2013, and of $952,286 at April 30, 2013

1,625,2101,581,925
Total assets $2,192,434 $1,984,018
 
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank$--------$59,100
Current maturities of long-term debt15,88015,810
Accounts payable252,544232,913
Accrued expenses109,94289,925
Income taxes payable18,449--------
Total current liabilities  396,815  397,748
Long-term debt, net of current maturities803,971653,081
Deferred income taxes299,183293,708
Deferred compensation15,99915,787
Other long-term liabilities22,99221,399
Total liabilities1,538,9601,381,723
 
Total shareholders' equity653,474602,295
  
Total liabilities and shareholders' equity $2,192,434 $1,984,018
 

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 & OtherPrepared Food

 

 

7/31/13

Gasoline

Merchandise& Fountain

Other

Total

 
Sales$1,514,874$423,585$166,248$10,042$2,114,749
Gross profit$94,316$138,412$102,754$10,028$345,510
Margin6.2%32.7%61.8%99.9%16.3%
Gasoline gallons426,549
 
Three months ended
7/31/12
 
Sales$1,330,670$386,129$142,709$8,794$1,868,302
Gross profit$58,795$128,834$90,565$8,780$286,974
Margin4.4%33.4%63.5%99.8%15.4%
Gasoline gallons  394,055        
 
    
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

F20143.2%F2014

22.1

¢

F2013-0.2-0.4%0.6%1.0%0.1%F201314.9

14.9

¢

13.8

¢

17.0

¢

15.2

¢

F2012 -2.7  -2.9% -2.4% 2.5% -1.5%F2012 17.2  

16.7

¢

 

13.6

¢

 

13.7

¢

 

15.3

¢

       
Grocery & Other MerchandiseGrocery & Other Merchandise
Same-store Sales GrowthMargin
FiscalFiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

F20146.1%F201432.7%
F20132.6-0.7%3.2%-0.2%0.8%F201333.433.4%31.7%31.7%32.6%
F2012 6.2  5.8% 6.3% 8.5% 6.7%F2012 32.5  32.5% 31.8% 33.0% 32.5%
       
Prepared Food & FountainPrepared Food & Fountain
Same-store Sales GrowthMargin
FiscalFiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

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