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

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

2012

2013

2012

Total revenue

$

1,808,529

1,752,504

$

7,250,840

6,987,804

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 profit

266,392

245,240

1,082,365

1,003,690

Operating expenses

191,054

175,952

760,365

688,431

Depreciation and amortization

29,910

25,609

111,823

96,552

Interest, net

8,743

8,751

35,048

35,192

Income before income taxes

36,685

34,928

175,129

183,515

Federal and state income taxes

13,413

11,859

64,504

66,724

Net income

23,272

23,069

110,625

116,791

Other comprehensive income

-----

-----

-----

-----

Comprehensive income

$

23,272

23,069

$

110,625

116,791

Net income per common share

Basic

$

.61

.61

$

2.89

3.07

Diluted

$

.60

.60

$

2.86

3.04

Basic weighted average shares outstanding

38,342

38,120

38,297

38,068

Plus effect of stock compensation

353

361

323

324

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,

2013

2012

Assets

Current assets

Cash and cash equivalents

$

41,271

$

55,919

Receivables

20,900

21,700

Inventories

189,514

170,794

Prepaid expenses

1,396

1,298

Deferred income taxes

9,916

13,143

Income tax receivable

9,820

16,424

Total current assets

272,817

279,278

Other assets, net of amortization

14,485

12,403

Goodwill

114,791

104,385

Property and equipment, net of

accumulated depreciation of $952,286 at

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

1,581,925

1,378,749

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 debt

15,810

10,737

Accounts payable

232,913

211,165

Accrued expenses

89,925

84,739

Total current liabilities

397,748

306,641

Long-term debt, net of current maturities

653,081

667,930

Deferred income taxes

293,708

260,405

Deferred compensation

15,787

14,698

Other long-term liabilities

21,399

19,100

Total liabilities

1,381,723

1,268,774

Total shareholders' equity

602,295

506,041

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 & Other

Prepared Food

4/30/13

Gasoline

Merchandise

& Fountain

Other

Total

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

Margin

4.5%

32.6%

61.8%

99.8%

14.9%

Gasoline gallons

1,535,140

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

Margin

4.4%

32.5%

60.7%

99.8%

14.4%

Gasoline gallons

1,476,154

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

%

1.0

%

0.1

%

F2013

14.9

¢

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

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

%

3.2

%

-0.2

%

0.8

%

F2013

33.4

%

33.4