Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.01 for the third quarter of fiscal 2015 ended January 31, 2015, compared to $0.33 per share for the same quarter a year ago. Year to date, diluted earnings per share were $3.57 compared to $2.73 a year ago. “Casey’s experienced significant inside sales growth throughout the third quarter,” stated Chairman and CEO Robert J. Myers. “The steady decline in wholesale gasoline costs was favorable to fuel margins, and the low price of gasoline drove sales in all of our business categories. Total gross profit rose 26.9% for the third quarter.”
Fuel - The goal for fiscal 2015 is to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. For the third quarter, same-store gallons sold rose 2.2% with an average margin of 22.0 cents per gallon. The Company sold 14 million renewable fuel credits for $8.4 million in the quarter. “The steady fall in wholesale fuel cost throughout the quarter enabled us to achieve a record third quarter fuel margin,” said Myers. “Same-store sales benefited from mild weather and lower retail fuel prices compared to last year’s third quarter.” Total gallons sold for the year were up 8.7% with an average margin of 20.1 cents per gallon. Year to date, same-store gallons were up 2.5%.
Grocery and Other Merchandise - The Company’s annual goal is to increase same-store sales 5.3% with an average margin of 32.1%. For the quarter, same-store sales were up 7.7% with an average margin of 31.2%. “Beer and beverage sales continue to benefit from our expanded cooler capacity incorporated in our current store design,” said Myers. “We also experienced strong cigarette sales throughout the quarter, led in part by a favorable trend of customers trading up to premium brands.” For the nine months ended January 31, 2015, same-store sales were up 7.3% with an average margin of 32.0%. Total sales for the year were up 12.7% while gross profit rose 12.6% to $435.3 million.
Prepared Food and Fountain - Casey’s annual goal is to increase same-store sales 9.5% with an average margin of 60%. For the third quarter, same-store sales were up 14.1% with an average margin of 58.7%. The margin was down 210 basis points from the prior year due to higher input costs and increased stales. However, total gross profit for the category rose 16.1% to $111.7 million in the third quarter. “We have several initiatives driving prepared food sales, such as expanding stores to 24-hour operations, adding pizza delivery and major store remodels. We were also able to implement strategic price increases throughout the fiscal year,” said Myers. “Cheese costs declined throughout the quarter, and the Company recently locked in wholesale cheese costs through December 31, 2015.” Total prepared food and fountain sales for the year were up 18.1%, while gross profit rose 13.9% to $347.5 million.
Operating Expenses - Year to date, operating expenses increased 12.5% to $727.9 million. For the third quarter, operating expenses were up 11.2% to $238.8 million. “Operating expenses are up primarily due to the unit growth we have experienced since this time a year ago, along with store replacements and the various initiatives we have in place to grow sales throughout our chain,” said Myers. Store level operating expenses that have not been impacted by the initiatives were up 2.4% for the quarter.
Expansion - The Company’s annual goal is to build or acquire 72 to 108 stores and replace 25 existing stores. As of the end of the third fiscal quarter, the Company opened 33 new stores and acquired 32 stores. The Company also completed 25 replacements. In January, the Company completed the expansion of the Distribution Center in Ankeny, Iowa, and is expecting to complete the construction of a second distribution center in Terre Haute, Indiana in February 2016. “The Company is well positioned to take advantage of any acquisition opportunity that may become available,” Myers said. “We are in excellent financial shape to continue to build and acquire stores, and we will maintain our disciplined approach when evaluating potential acquisitions.” The Company currently has 26 new and 11 replacement stores under construction.
Dividend - At its March meeting, the Board of Directors declared a quarterly dividend of $0.20 per share. The dividend is payable May 15, 2015 to shareholders of record on May 1, 2015.
| Casey’s General Stores, Inc. | ||||||||||||||
| Condensed Consolidated | ||||||||||||||
Statements of Income | ||||||||||||||
(Dollars in thousands, except share and per share amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| January 31, | January 31, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Total revenue | $ | 1,671,961 | 1,790,055 | $ | 6,113,358 | 5,920,689 | ||||||||
| Cost of goods sold (exclusive of depreciation and amortization, shown separately below) | 1,320,915 | 1,513,365 | 5,020,116 | 4,982,293 | ||||||||||
| Gross profit | 351,046 | 276,690 | 1,093,242 | 938,396 | ||||||||||
| Operating expenses | 238,782 | 214,671 | 727,881 | 647,174 | ||||||||||
| Depreciation and amortization | 40,431 | 32,687 | 113,955 | 95,604 | ||||||||||
| Interest, net | 10,191 | 10,123 | 31,057 | 29,595 | ||||||||||
| Income before income taxes | 61,642 | 19,209 | 220,349 | 166,023 | ||||||||||
| Federal and state income taxes | 22,323 | 6,556 | 81,064 | 60,145 | ||||||||||
| Net income | $ | 39,319 | 12,653 | $ | 139,285 | 105,878 | ||||||||
| Net income per common share | ||||||||||||||
| Basic | $ | 1.01 | 0.33 | $ | 3.60 | 2.76 | ||||||||
| Diluted | $ | 1.01 | 0.33 | $ | 3.57 | 2.73 | ||||||||
| Basic weighted average shares | 38,795,477 | 38,482,970 | 38,701,232 | 38,443,816 | ||||||||||
| Plus effect of stock compensation | 322,674 | 444,061 | 309,125 | 418,025 | ||||||||||
| Diluted weighted average shares | 39,118,151 | 38,927,031 | 39,010,357 | 38,861,841 | ||||||||||
| Casey’s General Stores, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
| January 31, 2015 | April 30, 2014 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 43,637 | $ | 121,641 | ||||
| Receivables | 22,217 | 25,841 | ||||||
| Inventories | 168,280 | 204,833 | ||||||
| Prepaid expenses | 2,906 | 1,478 | ||||||
| Deferred income taxes | 17,722 | 23,292 | ||||||
| Income tax receivable | 1,624 | 12,473 | ||||||
| Total current assets | 256,386 | 389,558 | ||||||
| Other assets, net of amortization | 17,163 | 15,947 | ||||||
| Goodwill | 127,046 | 120,406 | ||||||
| Property and equipment, net of accumulated depreciation of $1,160,558 at January 31, 2015 and $1,062,278 at April 30, 2014 | 1,986,945 | 1,778,965 | ||||||
| Total assets | $ | 2,387,540 | $ | 2,304,876 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Notes payable to bank | $ | 18,500 | $ | — | ||||
| Current maturities of long-term debt | 7,893 | 553 | ||||||
| Accounts payable | 174,704 | 250,807 | ||||||
| Accrued expenses | 123,848 | 139,529 | ||||||
| Total current liabilities | 324,945 | 390,889 | ||||||
| Long-term debt, net of current maturities | 845,846 | 853,642 | ||||||
| Deferred income taxes | 340,084 | 318,023 | ||||||
| Deferred compensation | 17,147 | 16,558 | ||||||
| Other long-term liabilities | 20,409 | 22,500 | ||||||
| Total liabilities | 1,548,431 | 1,601,612 | ||||||
| Total shareholders’ equity | 839,109 | 703,264 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,387,540 | $ | 2,304,876 | ||||
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.
The previously announced revisions to our financial results regarding an immaterial correction of an error for the fiscal 2015 first quarter and fiscal 2014 are reflected in year-to-date results and comparisons to prior periods.
| Revenue and Gross Profit by Product (Amounts in thousands) | |||||||||||||||||||||||||
| Grocery & Other | Prepared Food | ||||||||||||||||||||||||
| Three months ended 1/31/2015 | Fuel | Merchandise | & Fountain | Other | Total | ||||||||||||||||||||
| Revenue | $ | 1,056,458 | $ | 412,711 | $ | 190,393 | $ | 12,399 | $ | 1,671,961 | |||||||||||||||
| Gross profit | $ | 98,418 | $ | 128,572 | $ | 111,672 | $ | 12,384 | $ | 351,046 | |||||||||||||||
| Margin | 9.3 | % | 31.2 | % | 58.7 | % | 99.9 | % | 21.0 | % | |||||||||||||||
| Fuel gallons | 446,842 | ||||||||||||||||||||||||
| Three months ended 1/31/2014 | |||||||||||||||||||||||||
| Revenue | $ | 1,255,774 | $ | 364,846 | $ | 158,200 | $ | 11,235 | $ | 1,790,055 | |||||||||||||||
| Gross profit | $ | 55,892 | $ | 113,429 | $ | 96,147 | $ | 11,222 | $ | 276,690 | |||||||||||||||
| Margin | 4.5 | % | 31.1 | % | 60.8 | % | 99.9 | % | 15.5 | % | |||||||||||||||
| Fuel gallons | 411,389 | ||||||||||||||||||||||||
| Revenue and Gross Profit by Product (Amounts in thousands) | |||||||||||||||||||||||||
| Grocery & Other | Prepared Food | ||||||||||||||||||||||||
| Nine months ended 1/31/2015 | Fuel | Merchandise | & Fountain | Other | Total | ||||||||||||||||||||
| Revenue | $ | 4,134,353 | $ | 1,358,231 | $ | 586,199 | $ | 34,575 | $ | 6,113,358 | |||||||||||||||
| Gross profit | 275,923 | $ | 435,282 | $ | 347,506 | $ | 34,531 | $ | 1,093,242 | ||||||||||||||||
| Margin | 6.7 | % | 32.0 | % | 59.3 | % | 99.9 | % | 17.9 | % | |||||||||||||||
| Fuel gallons | 1,371,796 | ||||||||||||||||||||||||
| Nine months ended 1/31/2014 | |||||||||||||||||||||||||
| Revenue | $ | 4,187,629 | $ | 1,204,983 | $ | 496,199 | $ | 31,878 | $ | 5,920,689 | |||||||||||||||
| Gross profit | $ | 214,937 | $ | 386,548 | $ | 305,072 | $ | 31,839 | $ | 938,396 | |||||||||||||||
| Margin | 5.1 | % | 32.1 | % | 61.5 | % | 99.9 | % | 15.8 | % | |||||||||||||||
| Fuel gallons | 1,261,833 | ||||||||||||||||||||||||
| Fuel Gallons | Fuel Margin | ||||||||||||||||||||||||||||||||||||||||||||||
| Same-store Sales Growth | (Cents per gallon, excluding credit card fees) | ||||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
Fiscal | Q1 | Q2 | Q3 | Q4 |
Fiscal | ||||||||||||||||||||||||||||||||||||||
| F2015 | 3.0 | % | 2.3 | % | 2.2 | % | F2015 | 18.9 | ¢ | 19.5 | ¢ | 22.0 | ¢ | ||||||||||||||||||||||||||||||||||
| F2014 | 3.2 | 4.2 | 3.8 | 1.8 | % | 3.1 | % | F2014 | 21.4 | 16.0 | 13.6 | 13.1 | ¢ | 16.1 | ¢ | ||||||||||||||||||||||||||||||||
| F2013 | (0.2 | ) | (0.4 | ) | 0.6 | 1.0 | 0.1 | F2013 | 14.2 | 14.2 | 13.1 | 16.3 | 14.4 | ||||||||||||||||||||||||||||||||||
| Grocery & Other Merchandise | Grocery & Other Merchandise | ||||||||||||||||||||||||||||||||||||||||||||||
| Same-store Sales Growth | Margin | ||||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
Fiscal | Q1 | Q2 | Q3 | Q4 |
Fiscal | ||||||||||||||||||||||||||||||||||||||
| F2015 | 7.7 | % | 6.6 | % | 7.7 | % | F2015 | 32.5 | % | 32.3 | % | 31.2 | % | ||||||||||||||||||||||||||||||||||
| F2014 | 6.1 | 10.2 | 6.5 | 7.2 | % | 7.4 | % | F2014 | 32.7 | 32.3 | 31.1 | 32.1 | % | 32.1 | % | ||||||||||||||||||||||||||||||||
| F2013 | 2.6 | (0.7 | ) | 3.2 | (0.2 | ) | 0.8 | F2013 | 33.4 | 33.4 | 31.7 | 31.7 | 32.6 | ||||||||||||||||||||||||||||||||||
| Prepared Food & Fountain | Prepared Food & Fountain | ||||||||||||||||||||||||||||||||||||||||||||||
| Same-store Sales Growth | Margin | ||||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
Fiscal | Q1 | Q2 | Q3 | Q4 |
Fiscal | ||||||||||||||||||||||||||||||||||||||
| F2015 | 11.1 | % | 11.1 | % | 14.1 | % | F2015 | 59.9 | % | 59.3 | % | 58.7 | % | ||||||||||||||||||||||||||||||||||
| F2014 | 11.9 | 12.3 | 10.7 | 12.1 | % | 11.8 | % | F2014 | 61.8 | 61.8 | 60.8 | 60.1 | % | 61.1 | % | ||||||||||||||||||||||||||||||||
| F2013 | 10.6 | 10.1 | 11.6 | 4.4 | 8.6 | F2013 | 63.5 | 62.5 | 60.6 | 60.5 | 61.8 | ||||||||||||||||||||||||||||||||||||
Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on March 10, 2015. The call will be broadcast live over the Internet at 9:30 a.m. CDT via the Investor Relations section of our Web site and will be available in an archived format.
Contacts:
Bill Walljasper, 515-965-6505
