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8-K - FORM 8-K - CASEYS GENERAL STORES INCd8k.htm
EX-99.2 - DESCRIPTION OF FY2012 SALARY AND BONUS ARRANGEMENTS FOR EXECUTIVE OFFICERS - CASEYS GENERAL STORES INCdex992.htm

Exhibit 99.1

 

NEWS RELEASE FOR IMMEDIATE RELEASE  

LOGO

Casey’s General Stores, Inc.

One Convenience Blvd.

Ankeny, IA 50021

 

Nasdaq Symbol CASY

CONTACT Bill Walljasper

(515) 965-6505

Casey’s Ends Year with Strong Fourth Quarter and

Remains Optimistic for Fiscal 2012

Ankeny, IA, June 13, 2011—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported earnings for the fourth quarter and the fiscal year ended April 30, 2011. For the quarter, basic earnings per share were $0.60 compared to $0.43 for the same quarter a year ago. Year to date, basic earnings per share were $2.24 versus $2.30 for the same period last year. The year-end results include approximately $27.4 million in expenses pertaining to the Company’s recapitalization plan completed in the second quarter as well as the unsolicited hostile offer and related actions by Alimentation Couche-Tard Inc. Excluding this activity from both fiscal years, basic earnings per share would have been $2.65 and $2.38 for fiscal 2011 and 2010 respectively, and $0.60 and $0.51 for the 4th quarter of fiscal 2011 and 2010 respectively. “We are pleased with our ability to drive double digit gross profit increases across all of our major categories during the fourth quarter,” stated President and CEO Robert J. Myers. “Despite the challenges impacting our industry, we are optimistic about our ability to continue to drive shareholder value next fiscal year.”

Gasoline—The Company’s annual goal was to increase same-store gasoline gallons sold 1% with an average margin of 13.5 cents per gallon. For the quarter, same-store gallons sold were down 1.9%, adversely impacted by a 30% increase in retail gas prices during the same period. However, the strong gas margin environment continued in the fourth quarter resulting in an average margin of 15.6 cents per gallon. Same-store gallons sold for the year increased 1.6% with an average margin of 15.2 cents. “The favorable gasoline margin environment continued in the fourth quarter, resulting in a record gas margin for the fiscal year. We anticipate this favorable environment continuing into the first quarter of fiscal 2012,” said Myers. For the year, total gallons sold were up 8.6% to 1.4 billion, while gross profit dollars rose 19% from the prior year.

Grocery & Other Merchandise—Casey’s annual goal was to increase same-store sales 6% with an average margin of 33.9%. For the quarter, same-store sales rose 4.8% with an average margin of 32.1%. For the second consecutive quarter, the Company experienced double digit sales growth across all major areas of this category. As a result, total sales in the category were up 14% during the fourth quarter. “The margin was impacted by a competitive cigarette pricing environment and indirect commodity pressures,” said Myers. “Despite these adversities, we were able to drive gross profit 10.7% in this category during the quarter.” Total sales for the year are up 11.4% to $1.2 billion. Same-store sales for the year were up 4.6% with an average margin of 32.2%.

Prepared Food & Fountain—The goal for fiscal 2011 was to increase same-store sales 8% with an average margin of 63.1%. For the quarter, same-store sales were up 11.8% with an average margin of 60.2%, down in the same period a year ago primarily due to a rise in commodity costs throughout the category. Gross profit rose over 10% during the quarter primarily due to an increase in total sales of 17.5%. “The retail price increases taken earlier in the quarter along with the new store design and continued promotional activity are driving sales,” stated Myers. “Over the last five years same store sales increases have averaged 8.5% and we expect this strong performance to continue.” Same store sales for the year were up 7.7% with an average margin of 62.2%. Year to date, total sales were up 13.5% to $415.2 million compared to $365.8 million.


Operating Expenses—For the fiscal year, operating expenses increased 15.5% to $607.6 million. Excluding approximately $16 million in expenses related to the unsolicited hostile offer by Couche-Tard, expenses would have increased 12.4%. For the quarter, operating expenses were up 11.4% driven by a combined increase in credit card fees and fuel expense as well as operating more stores this quarter compared to the same period a year ago. “The higher retail gas price environment drove credit card fees to a record quarterly amount of over $18 million,” said Myers.

Expansion—The goal for fiscal 2011 was to increase the total number of stores 4-6%. For the year, the Company increased the store count nearly 7%, with 20 new store constructions and 89 acquired stores. “We are pleased with the recent acquisition environment and we have written agreements for an additional 33 locations,” said Myers. “In addition to unit growth, we replaced 15 stores and completed 120 major remodels.

Fiscal 2012 Goals—The corporate performance goals for fiscal 2012 are as follows:

 

   

Increase same-store gasoline gallons sold 1% with an average margin of 13.5 cents per gallon.

 

   

Increase same-store grocery and other merchandise sales 5.8% with an average margin of 32.8%.

 

   

Increase same-store prepared food and fountain sales 7.7% with an average margin of 61.8%.

 

   

Increase the total number of stores 4-6%.

Dividends—At its June meeting, the Board of Directors declared a quarterly dividend of $0.15 per share. The dividend is payable August 15, 2011 to shareholders of record on August 1, 2011.

****

 

LOGO

  

Casey’s General Stores, Inc.

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)

 

     Three months ended April 30,      Year ended April 30,  
     2011      2010      2011      2010  

Total revenue

   $ 1,549,495       $ 1,179,806       $ 5,635,240       $ 4,637,087   

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

     1,332,307         990,543         4,754,173         3,844,735   
                                   

Gross profit

     217,188         189,263         881,067         792,352   

Operating expenses

     150,473         135,037         607,628         526,291   

Depreciation and amortization

     21,982         18,700         82,355         73,546   

Interest, net

     8,867         2,774         28,497         10,933   

Loss on early retirement of debt

     —           —           11,350         —     
                                   

Earnings before income taxes

     35,866         32,752         151,237         181,582   

Federal and state income taxes

     13,096         10,817         56,614         64,620   
                                   

Net earnings

   $ 22,770       $ 21,935       $ 94,623       $ 116,962   
                                   

Basic earnings per share

   $ .60       $ .43       $ 2.24       $ 2.30   

Weighted average shares outstanding

     37,956         50,920         42,285         50,899   

Diluted earnings per share

   $ .60       $ .43       $ 2.22       $ 2.29   


Weighted average shares outstanding

     38,257         51,120         42,567         51,053   


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

 

      April 30,
2011
     April 30,
2010
 

Assets

     

Current assets

     

Cash and cash equivalents

   $ 59,572       $ 151,676   

Receivables

     20,154         12,111   

Inventories

     159,200         124,951   

Prepaid expenses

     1,180         1,129   

Deferred income taxes

     10,405         9,417   

Income taxes receivable

     43,376         10,801   
                 

Total current assets

     293,887         310,085   
                 

Other assets, net of amortization

     11,721         10,232   

Goodwill

     88,042         57,547   

Property and equipment, net of accumulated depreciation of $777,342 at April 30, 2011, and of $706,994 at April 30, 2010

     1,217,305         1,010,911   
                 

Total assets

   $ 1,610,955       $ 1,388,775   
                 

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Notes payable to bank

   $ 600       $ —     

Current maturities of long-term debt

     1,167         24,577   

Accounts payable

     215,675         145,334   

Accrued expenses

     77,058         70,975   
                 

Total current liabilities

     294,500         240,886   
                 

Long-term debt, net of current maturities

     678,680         154,754   

Deferred income taxes

     203,078         141,229   

Deferred compensation

     13,858         12,788   

Other long-term liabilities

     16,943         14,799   
                 

Total liabilities

     1,207,059         564,456   
                 

Total shareholders’ equity

     403,896         824,319   
                 

Total liabilities and shareholders’ equity

   $ 1,610,955       $ 1,388,775   
                 


Sales and Gross Profit by Product

(Amounts in thousands)

 

Year ended

4/30/11

   Gasoline    

Grocery & Other

Merchandise

   

Prepared Food

& Fountain

    Other     Total  

Sales

   $ 3,998,702      $ 1,195,613      $ 415,240      $ 25,685      $ 5,635,240   

Gross profit

   $ 212,038      $ 385,250      $ 258,151      $ 25,628      $ 881,067   

Margin

     5.3     32.2     62.2     99.8     15.6

Gasoline gallons

     1,394,457           

Year ended

4/30/10

                              

Sales

   $ 3,177,490      $ 1,073,508      $ 365,793      $ 20,296      $ 4,637,087   

Gross profit

   $ 178,176      $ 360,432      $ 233,507      $ 20,237      $ 792,352   

Margin

     5.6     33.6     63.8     99.7     17.1

Gasoline gallons

     1,283,479           

 

Gasoline Gallons

Same-store Sales Growth

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2011

     1.5     3.6     3.5     -1.9     1.6

F2010

     3.2        -0.7        -2.9        0.2        -0.1   

F2009

     0.5        0.2        2.1        1.2        1.0   

Grocery & Other Merchandise

Same-store Sales Growth

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2011

     2.0     6.9     5.8     4.8     4.6

F2010

     6.4        1.9        1.7        3.1        3.3   

F2009

     4.7        4.9        6.5        8.0        5.9   

Prepared Food & Fountain

Same-store Sales Growth

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2011

     2.4     7.2     10.5     11.8     7.7

F2010

     6.6        3.4        1.4        5.3        4.2   

F2009

     12.3        9.3        8.1        7.2        9.1   

Gasoline Margin

(Cents per gallon, excluding credit card fees)

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2011

     16.4 ¢      14.9 ¢      13.9 ¢      15.6 ¢      15.2 ¢ 

F2010

     15.7        14.3        12.4        13.1        13.9   

F2009

     15.6        13.7        9.9        12.1        12.9   

Grocery & Other Merchandise

Margin

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2011

     32.8     32.9     30.9     32.1     32.2

F2010

     34.3        34.1        32.7        33.1        33.6   

F2009

     34.0        33.9        32.9        33.7        33.7   

Prepared Food & Fountain

Margin

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2011

     63.8     62.7     62.1     60.2     62.2

F2010

     63.8        64.6        62.8        64.1        63.8   

F2009

     60.5        60.6        61.8        62.7        61.4   
 

 

LOGO

Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during

a conference call on June 14, 2011. 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.