Attached files

file filename
8-K - FORM 8-K - CASEYS GENERAL STORES INCd266156d8k.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 Strong Sales Performance Continues through the 2nd Quarter

Ankeny, IA, December 6, 2011—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.99 in basic earnings per share for the second quarter of fiscal 2012 ended October 31, 2011 compared to $0.51 for the same period a year ago. Year to date, basic earnings per share were $2.02 versus $1.27 for the same period last year. After adjusting for costs associated with the hostile takeover attempt by Alimentation Couche-Tard, Inc., basic earnings per share last year would have been $0.81 for the quarter and $1.62 year to date. We are pleased with the second quarter results, despite the continued challenges impacting our industry,” stated President and CEO Robert J. Myers. “We experienced a favorable gas margin and strong inside sales, resulting in a 15.6% increase in total gross profit.”

Gasoline—The Company’s annual goal is to increase same-store gasoline gallons sold 1% with an average margin of 13.5 cents per gallon. For the second quarter, same-store gallons sold were down 2.9%, adversely impacted by a 30.9% increase in retail gas prices from the same period a year ago. The favorable gasoline margin environment continued in the second quarter resulting in an average margin of 16.7 cents per gallon. “The average gasoline margin for the trailing four years is 14.2 cents per gallon,” said Myers. For the year, total gallons sold were up 6.1% to 755.9 million with an average margin of 16.9 cents, while gross profit rose 14.6%. Same-store gallons for the year were down 2.8%.

Grocery & Other Merchandise—Casey’s annual goal is to increase same-store sales 5.8% with an average margin of 32.8%. For the quarter, same-store sales rose 5.8% with an average margin of 32.5%. For the fourth consecutive quarter, the Company experienced double digit sales increases across all major areas of this category. As a result, total sales were up 15.8%. “Competitive cigarette pricing continued to impact the margin in the second quarter compared to the second quarter a year ago,” stated Myers. “However, our cigarette margin began to stabilize in the second quarter as we start to cycle against the more competitive landscape that began about a year ago.” Despite the margin pressure from cigarettes, gross profit dollars increased 14.3% for the quarter. For the six months ended October 31, 2011, same-store sales were up 6.0% with an average margin of 32.5%. Total sales for the year are up 15.5% to $723 million.

Prepared Food & Fountain—The goal for fiscal 2012 is to increase same-store sales 7.7% with an average margin of 61.8%. Same-store sales were up 14.2% for the quarter and 14.8% year to date. The average margin for the quarter was 59.5%, down from the same period a year ago, primarily due to a rise in commodity prices. “It is essential to have high quality prepared food offerings at competitive prices to meet the needs of our value oriented customer base,” said Myers. “This focus on our customers enabled us to increase sales by 20.2% and


gross profit by 14.1% for the quarter, despite a decline in the margin,” said Myers. Year to date, total sales were up 20.6% to $252.7 million compared to the first six months last year, with an average margin of 60.4%.

Operating Expenses—Year to date, operating expenses increased 12.3% to $343.2 million. For the quarter, operating expenses were up 12.1%. After adjusting for the expenses associated with the unsolicited offer by Couche-Tard in the prior year, expenses increased 18.4% in the quarter and 17.8% at the six month mark. “The increase was driven primarily by operating 128 more stores this quarter and a $5.2 million increase in credit card fees compared to the same period a year ago,” stated Myers.

Expansion—The annual goal is to increase the total number of stores 4-6%. At the mid-year point, the Company had acquired 33 stores and completed 8 new-store constructions. “We are on pace to build approximately 30 stores by the end of the fiscal year,” said Myers. “The acquisition environment continues to be active, and we remain optimistic about our long-term opportunities.”

Dividend—At its December meeting, the Board of Directors declared a quarterly dividend of $0.15 per share. The dividend is payable February15, 2012 to shareholders of record on February1, 2012.

****

 

                     LOGO

  

Casey’s General Stores, Inc.

Condensed Consolidated Statements of Earnings

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

(Unaudited)

  

 

     Three months ended October 31,      Six months ended October 31,  
     2011      2010      2011      2010  

Total revenue

   $ 1,782,518         1,349,519       $ 3,656,350         2,711,546   

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

     1,519,600         1,122,142         3,126,650         2,250,198   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     262,918         227,377         529,700         461,348   

Operating expenses

     171,832         153,263         343,248         305,649   

Depreciation and amortization

     23,432         20,041         46,327         39,604   

Interest, net

     8,777         8,195         17,711         10,722   

Loss on early retirement of debt

     —           11,350         —           11,350   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings before income taxes

     58,877         34,528         122,414         94,023   

Federal and state income taxes

     21,245         12,836         45,391         35,045   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net earnings

   $ 37,632         21,692       $ 77,023         58,978   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per common share

           

Basic

   $ .99         .51       $ 2.02         1.27   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ .98         .51       $ 2.01         1.26   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average shares outstanding

     38,055,909         42,283,525         38,040,142         46,622,176   

Plus effect of stock options

     342,934         287,678         328,239         263,899   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average shares outstanding

     38,398,843         42,571,203         38,368,381         46,886,075   
  

 

 

    

 

 

    

 

 

    

 

 

 


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     October 31,      April 30,  
     2011      2011  

Assets

     

Current assets

     

Cash and cash equivalents

   $ 86,200       $ 59,572   

Receivables

     19,752         20,154   

Inventories

     159,868         159,200   

Prepaid expenses

     2,007         1,180   

Deferred income taxes

     11,393         10,405   

Income taxes receivable

     —           43,376   
  

 

 

    

 

 

 

Total current assets

     279,220         293,887   
  

 

 

    

 

 

 

Other assets, net of amortization

     11,801         11,721   

Goodwill

     104,386         88,042   

Property and equipment, net of accumulated depreciation of $818,012 at October 31, 2011, and of $777,342 at April 30, 2011

     1,302,983         1,217,305   
  

 

 

    

 

 

 

Total assets

   $ 1,698,390       $ 1,610,955   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Notes payable to bank

   $ —         $ 600   

Current maturities of long-term debt

     5,845         1,167   

Accounts payable

     203,185         215,675   

Accrued expenses

     78,523         77,058   

Income taxes payable

     1,236         —     
  

 

 

    

 

 

 

Total current liabilities

     288,789         294,500   
  

 

 

    

 

 

 

Long-term debt, net of current maturities

     673,466         678,680   

Deferred income taxes

     230,206         203,078   

Deferred compensation

     13,715         13,858   

Other long-term liabilities

     19,156         16,943   
  

 

 

    

 

 

 

Total liabilities

     1,225,332         1,207,059   
  

 

 

    

 

 

 

Total shareholders’ equity

     473,058         403,896   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 1,698,390       $ 1,610,955   
  

 

 

    

 

 

 

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)

 

Six months ended

10/31/11

   Gasoline    

Grocery & Other

Merchandise

   

Prepared Food

& Fountain

    Other     Total  

Sales

   $ 2,666,412      $ 722,987      $ 252,681      $ 14,270      $ 3,656,350   

Gross profit

   $ 128,009      $ 234,950      $ 152,501      $ 14,240      $ 529,700   

Margin

     4.8     32.5     60.4     99.8     14.5

Gasoline gallons

     755,911           

Six months ended

10/31/10

                              

Sales

   $ 1,864,270      $ 626,106      $ 209,565      $ 11,605      $ 2,711,546   

Gross profit

   $ 111,661      $ 205,680      $ 132,431      $ 11,576      $ 461,348   

Margin

     6.0     32.9     63.2     99.8     17.0

Gasoline gallons

     712,117           

 

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  

F2012

     -2.7     -2.9            F2012      17.2 ¢      16.7 ¢       

F2011

     1.5        3.6        3.5     -1.9     1.6      F2011      16.4        14.9        13.9 ¢      15.6 ¢      15.2 ¢ 

F2010

     3.2        -0.7        -2.9        0.2        0.1         F2010      15.7        14.3        12.4        13.1        13.9   
Grocery & Other Merchandise        Grocery & Other Merchandise  
Same-store Sales Growth        Margin  
                             Fiscal                                     Fiscal  
     Q1     Q2     Q3     Q4     Year             Q1     Q2     Q3     Q4     Year  

F2012

     6.2     5.8            F2012      32.5     32.5      

F2011

     2.0        6.9        5.8     4.8     4.6      F2011      32.8        32.9        30.9     32.1     32.2

F2010

     6.4        1.9        1.7        3.1        3.3         F2010      34.3        34.1        32.7        33.1        33.6   
Prepared Food & Fountain        Prepared Food & Fountain  
Same-store Sales Growth        Margin  
                             Fiscal                                     Fiscal  
     Q1     Q2     Q3     Q4     Year             Q1     Q2     Q3     Q4     Year  

F2012

     15.3     14.2            F2012      61.2     59.5      

F2011

     2.4        7.2        10.5     11.8     7.7      F2011      63.8        62.7        62.1     60.2     62.2

F2010

     6.6        3.4        1.4        5.3        4.2         F2010      63.8        64.6        62.8        64.1        63.8   

LOGO

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

a conference call on December 7, 2011. The call will be broadcast live over the Internet at 9:30 a.m. CST via the

Investor Relations section of our Web site and will be available in an archived format.