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8-K - FORM 8-K - CASEYS GENERAL STORES INCd639795d8k.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 Earnings Up Over 24%

Ankeny, IA, December 9, 2013—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.06 for the second quarter of fiscal 2014 ended October 31, 2013, compared to $0.85 for the same quarter a year ago. Year to date, diluted earnings per share were $2.50 compared to $1.86 a year ago. “For the second quarter, total inside sales were up 15.5%, and total gasoline gallons sold increased 9.8% compared to the same quarter a year ago,” said Chairman and CEO Robert J. Myers. “The Company is pleased with the growth and customer count lift associated with the various initiatives we have put in place.”

Gasoline—The goal for fiscal 2014 is to increase same-store gallons sold 1.5% with an average margin of 15 cents per gallon. For the second quarter, same-store gallons sold were up 4.2% with an average margin of 16.7 cents per gallon. “The Company sold 11.7 million renewable fuel credits for $7.6 million in the second quarter, which enabled us to exceed our gas margin goal,” stated Myers. “The fuel saver program implemented in December 2012 continues to drive new customers to our stores which was the primary reason we significantly exceeded our sales goal this quarter.” Total gallons sold for the year were up 9% with an average margin of 19.4 cents per gallon. Year-to-date same-store gallons were up 3.6%.

Grocery and Other Merchandise—The Company’s annual goal is to increase same-store sales 5% with an average margin of 32.3%. For the quarter, same-store sales were up 10.2% with an average margin of 32.3%. “The Company experienced strong lifts in beer and beverage sales, and believe we have gained significant market share with our cigarette retail price adjustments made last fiscal year,” said Myers. “Although the cigarette adjustments adversely impacted our margin compared to the same quarter a year ago, we were still able to increase gross profit 11.1%.” For the six months ended October 31, 2013, same-store sales were up 8% with an average margin of 32.5%. Total sales for the year were up 12.2% and gross profit increased 9.2% to $273.1 million.

Prepared Food and Fountain—Casey’s annual goal is to increase same-store sales 9% with an average margin of 62%. For the second quarter, same-store sales were up 12.3% with an average margin of 61.8%. “Our prepared food sales continue to benefit from various growth initiatives such as 24-hour expansion, pizza delivery, and major remodels,” said Myers. “The margin is slightly below goal due to increased input costs such as meat and supplies.” Total sales for the category were up 16.9% year to date, and gross profit increased 14.7% to $208.9 million.


Operating Expenses—Year to date, operating expenses increased 14% to $433 million. For the second quarter, operating expenses were up 13.9% to $217 million. “The various growth initiatives being implemented, including new store construction, acquisition and replacement activity, are the primary reasons for the lift in operating expenses,” said Myers. “Store level operating expenses for locations that have not been impacted by the initiatives were up 4.9% for the quarter.”

Expansion—The annual goal is to build or acquire 70 to 105 (4 – 6%) stores and replace 20 existing locations. Through the first six months, the Company has built 14 new stores and acquired an additional 22. The Company also completed 14 replacement stores as well as 19 major remodels. “We are pleased with the pace of our new store construction and replacement efforts, and continue to have active dialogue with multiple acquisition candidates,” stated Myers. “As we look ahead to the second half of fiscal 2014, we believe there will be ample opportunities to grow our business in both new and existing markets.” The Company currently has 34 new stores and 14 replacement stores under construction, as well as five stores under written agreement to acquire.

Dividend—At its December meeting, the Board of Directors declared a quarterly dividend of $0.18 per share. The dividend is payable February 17, 2014 to shareholders of record on February 3, 2014.

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LOGO   

Casey’s General Stores, Inc.

Condensed Consolidated

Statements of Income

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

(Unaudited)

 

     Three months ended October 31,      Six months ended October 31,  
     2013      2012      2013      2012  

Total revenue

   $ 2,015,885         1,911,644       $ 4,130,634         3,779,946   

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

     1,693,584         1,632,331         3,462,823         3,213,659   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     322,301         279,313         667,811         566,287   

Operating expenses

     216,529         190,040         432,503         379,439   

Depreciation and amortization

     32,416         27,148         62,917         53,684   

Interest, net

     9,748         8,637         19,204         17,541   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     63,608         53,488         153,187         115,623   

Federal and state income taxes

     22,289         20,629         56,158         43,733   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Income

   $ 41,319         32,859       $ 97,029         71,890   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per common share

     

Basic

   $ 1.07         .86       $ 2.53         1.88   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 1.06         .85       $ 2.50         1.86   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average shares

     38,455,216         38,304,840         38,424,146         38,264,724   

Plus effect of stock compensation

     432,697         353,690         408,634         354,434   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average shares

     38,887,913         38,658,530         38,832,780         38,619,158   
  

 

 

    

 

 

    

 

 

    

 

 

 


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     October 31,      April 30,  
     2013      2013  

Assets

     

Current assets

     

Cash and cash equivalents

   $ 113,268       $ 41,271   

Receivables

     25,556         20,900   

Inventories

     199,802         189,514   

Prepaid expenses

     2,195         1,396   

Deferred income taxes

     11,891         9,916   

Income tax receivable

     —           9,820   
  

 

 

    

 

 

 

Total current assets

     352,712         272,817   
  

 

 

    

 

 

 

Other assets, net of amortization

     15,169         14,485   

Goodwill

     119,756         114,791   

Property and equipment, net of accumulated depreciation of $1,002,366 at October 31, 2013, and of $952,286 at April 30, 2013

     1,698,698         1,581,925   
  

 

 

    

 

 

 

Total assets

   $ 2,186,335       $ 1,984,018   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Notes payable to bank

   $ —         $ 59,100   

Current maturities of long-term debt

     8,315         15,810   

Accounts payable

     230,286         232,913   

Accrued expenses

     102,931         89,925   

Income taxes payable

     1,469         —     
  

 

 

    

 

 

 

Total current liabilities

     343,001         397,748   
  

 

 

    

 

 

 

Long-term debt, net of current maturities

     803,820         653,081   

Deferred income taxes

     306,885         293,708   

Deferred compensation

     16,257         15,787   

Other long-term liabilities

     24,224         21,399   
  

 

 

    

 

 

 

Total liabilities

     1,494,187         1,381,723   
  

 

 

    

 

 

 

Total shareholders’ equity

     692,148         602,295   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 2,186,335       $ 1,984,018   
  

 

 

    

 

 

 

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

10/31/13

   Gasoline    

Grocery & Other

Merchandise

   

Prepared Food

& Fountain

    Other     Total  

Sales

   $ 2,931,854      $ 840,137      $ 337,999      $ 20,644      $ 4,130,634   

Gross profit

   $ 165,149      $ 273,119      $ 208,925      $ 20,618      $ 667,811   

Margin

     5.6     32.5     61.8     99.9     16.2

Gasoline gallons

     850,444           

Six months ended

10/31/12

                              

Sales

   $ 2,724,146      $ 748,791      $ 289,248      $ 17,761      $ 3,779,946   

Gross profit

   $ 116,429      $ 250,040      $ 182,080      $ 17,738      $ 566,287   

Margin

     4.3     33.4     62.9     99.9     15.0

Gasoline gallons

     780,268           

 

Gasoline Gallons

Same-store Sales Growth

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2014

     3.2     4.2      

F2013

     -0.2        -0.4        0.6     1.0     0.1

F2012

     -2.7        -2.9        -2.4        2.5        -1.5   

Grocery & Other Merchandise

Same-store Sales Growth

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  

F2014

     6.1     10.2      

F2013

     2.6        -0.7        3.2     -0.2     0.8

F2012

     6.2        5.8        6.3        8.5        6.7   

Prepared Food & Fountain

Same-store Sales Growth

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  

F2014

     11.9     12.3      

F2013

     10.6        10.1        11.6     4.4     8.6

F2012

     15.3        14.2        12.6        16.8        14.3   

 

Gasoline Margin

(Cents per gallon, excluding credit card fees)

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  

F2014

     22.1 ¢      16.7 ¢       

F2013

     14.9        14.9        13.8 ¢      17.0 ¢      15.2 ¢ 

F2012

     17.2        16.7        13.6        13.7        15.3   

Grocery & Other Merchandise

Margin

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2014

     32.7     32.3      

F2013

     33.4        33.4        31.7     31.7     32.6

F2012

     32.5        32.5        31.8        33.0        32.5   

Prepared Food & Fountain

Margin

 

     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2014

     61.8     61.8      

F2013

     63.5        62.5        60.6     60.5     61.8

F2012

     61.2        59.5        61.2        60.8        60.7   
 

 

LOGO

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

a conference call on December 10, 2013. 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.