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

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,

2013

2012

2013

2012

Total revenue

$

1,662,365

1,578,950

$

5,442,311

5,235,300

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 profit

249,686

228,750

815,973

758,450

Operating expenses

189,872

169,231

569,311

512,479

Depreciation and amortization

28,229

24,616

81,913

70,943

Interest, net

8,764

8,730

26,305

26,441

Income before income taxes

22,821

26,173

138,444

148,587

Federal and state income taxes

7,358

9,474

51,091

54,865

Net income

15,463

16,699

87,353

93,722

Other comprehensive income

------

-----

-----

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Comprehensive income

$

15,463

16,699

$

87,353

93,722

Net income per common share

Basic

$

.40

.44

$

2.28

2.46

Diluted

$

.40

.43

$

2.26

2.44

Basic weighted average shares

outstanding

38,317,140

38,071,742

38,282,196

38,050,676

Plus effect of stock compensation

304,948

383,394

331,934

342,826

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,

2013

2012

Assets

Current assets

Cash and cash equivalents

$

26,521

$

55,919

Receivables

19,790

21,700

Inventories

185,126

170,794

Prepaid expenses

1,953

1,298

Deferred income taxes

10,603

13,143

Income tax receivable

16,563

16,424

Total current assets

260,556

279,278

Other assets, net of amortization

13,931

12,403

Goodwill

114,661

104,385

Property and equipment, net of

accumulated depreciation of $926,087 at

January 31, 2013, and $860,998 at April 30, 2012

1,545,312

1,378,749

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 debt

13,307

10,737

Accounts payable

197,245

211,165

Accrued expenses

97,005

84,739

Total current liabilities

366,157

306,641

Long-term debt, net of current maturities

660,779

667,930

Deferred income taxes

286,963

260,405

Deferred compensation

15,326

14,698

Other long-term liabilities

21,749

19,100

Total liabilities

1,350,974

1,268,774

Total shareholders' equity

583,486

506,041

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 ended

Grocery & Other

Prepared Food

1/31/13

Gasoline

Merchandise

& Fountain

Other

Total

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

Margin

4.3%

32.9%

62.2%

99.8%

15.0%

Gasoline gallons

1,157,077

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

Margin

4.7%

32.3%

60.6%

99.8%

14.5%

Gasoline gallons

1,116,684

Gasoline Gallons

Gasoline 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

%

F2013

14.9

¢

14.9

¢

13.8

¢

F2012

-2.7

-2.9

-2.4

2.5

%

-1.5

%

F2012

17.2

16.7

13.6

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 Merchandise

Grocery & Other Merchandise

Same-store Sales Growth

Margin

Fiscal

Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

F2013

2.6

%

-0.7