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| 8-K - 8-K - CASEYS GENERAL STORES INC | a8-kq210x15pressrelease.htm |
Exhibit 99.1
NEWS RELEASE FOR IMMEDIATE RELEASE | ||
Casey’s General Stores, Inc. One Convenience Blvd. Ankeny, IA 50021 | Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505 | |
Casey’s Posts 56% Increase In Second Quarter Diluted Earnings Per Share
Ankeny, IA, December 7, 2015 - Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $2.00 for the second quarter of fiscal 2016 ended October 31, 2015, compared to $1.28 per share for the same quarter a year ago. Year to date, diluted earnings per share were $3.57 versus $2.56 a year ago. “Casey’s experienced significant sales growth in all major areas of our business, especially inside our stores,” stated Chairman and CEO Robert J. Myers. “Second quarter inside sales were up 11.6% while total fuel gallons sold were up 7.7%. The positive sales performance, along with a strong prepared food and fuel margin, drove gross profit dollars up 19.3% for the quarter.
Fuel - The Company's annual goal for fiscal 2016 is to increase same-store gallons sold 2% with an average margin of 16.7 cents per gallon. For the second quarter, same-store gallons sold were up 3.3% with an average margin of 24.7 cents per gallon. The Company sold 13.6 million renewable fuel credits for $4.7 million during the second quarter. “Same-store gallons during the quarter continued to benefit from lower fuel prices,” said Myers. “We also experienced a fuel margin well ahead of our annual goal due primarily to volatile wholesale costs during the quarter.” For the year, total gallons sold were up 7.8% to 997.4 million gallons with an average margin of 21.1 cents per gallon, while gross profit dollars rose 18.5%. Same-store gallons for the year were up 3.3%.
Grocery and Other Merchandise - Casey's annual goal for fiscal 2016 is to increase same-store sales 6.2% with an average margin of 32.1%. For the second quarter, same-store sales were up 7.5% with an average margin of 31.5%. The Company experienced double-digit sales increases across nearly all major areas of this category, resulting in a 10.6% increase in total sales in the second quarter. “Packaged beverage and tobacco sales continued their solid performance as we expand our cooler capacity throughout our store base and customers trade up to premium brands,” stated Myers. For the six months ended October 31, 2015, same-store sales were up 7.2% with an average margin of 32.1%. Total sales for the year were up 10.3% to $1.04 billion, while gross profit dollars rose 9.0%.
Prepared Food and Fountain - The goal for fiscal 2016 is to increase same-store sales 10.4% with an average margin of 60.8%. Same-store sales for the quarter were up 9.4% with an average margin of 63.4%. The margin was up 410 basis points primarily due to lower commodity costs compared to the same time a year ago. “Same-store sales benefited from the continued rollout of our primary store initiatives,” said Myers. “We are optimistic about the future growth in this category especially as we complete the implementation of online ordering later this month in all of our stores. The online ordering service will give our customers the ability to conveniently order pizza, made-to-order sub sandwiches, and appetizers.” Year to date, total sales were up 14.4% to $452.8 million compared to the first six months last year, and gross profit dollars were up 20.9% to $285.2 million. Year to date, same-store sales were up 9.8%.
Operating Expenses - Year to date, operating expenses increased 8.7% to $531.6 million. For the quarter, operating expenses were up 9.5%. “The increase was primarily due to operating 48 more stores this year compared to a year ago in the same period and the continued rollout of various operational initiatives,” said Myers. “These increases were offset by a $1.3 million decrease in the quarter for transportation costs due to lower fuel prices."
Expansion - The Company’s annual goal is to build or acquire 75 to 113 stores, replace 10 existing locations and perform 100 major remodels. At the mid-year point, the Company had acquired 1 store and completed 25 new-store constructions. The Company has also completed 11 replacements and 24 major remodels. “We are on pace to build approximately 50 stores and remodel 100 stores by the end of the fiscal year,” said Myers. “We will continue to remain patient with acquisitions and remain optimistic about our long-term growth opportunities as our second distribution center becomes operational in February 2016.”
Dividend - At its December meeting, the Board of Directors declared a quarterly dividend of $0.22 per share. The dividend is payable February 15, 2016 to shareholders of record on February 1, 2016.
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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, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Total revenue | $ | 1,924,600 | $ | 2,150,211 | $ | 3,973,192 | $ | 4,441,397 | |||||||
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) | 1,481,610 | 1,778,929 | 3,118,960 | 3,699,201 | |||||||||||
Gross profit | 442,990 | 371,282 | 854,232 | 742,196 | |||||||||||
Operating expenses | 267,978 | 244,781 | 531,560 | 489,099 | |||||||||||
Depreciation and amortization | 41,807 | 37,275 | 81,206 | 73,524 | |||||||||||
Interest, net | 10,009 | 10,360 | 20,093 | 20,866 | |||||||||||
Income before income taxes | 123,196 | 78,866 | 221,373 | 158,707 | |||||||||||
Federal and state income taxes | 44,163 | 28,997 | 80,534 | 58,741 | |||||||||||
Net income | $ | 79,033 | $ | 49,869 | $ | 140,839 | $ | 99,966 | |||||||
Net income per common share | |||||||||||||||
Basic | $ | 2.03 | $ | 1.29 | $ | 3.61 | $ | 2.59 | |||||||
Diluted | $ | 2.00 | $ | 1.28 | $ | 3.57 | $ | 2.56 | |||||||
Basic weighted average shares | 39,002,546 | 38,706,611 | 38,987,530 | 38,668,453 | |||||||||||
Plus effect of stock compensation | 423,747 | 352,056 | 419,687 | 348,522 | |||||||||||
Diluted weighted average shares | 39,426,293 | 39,058,667 | 39,407,217 | 39,016,975 | |||||||||||
The previously announced revisions to our financial results regarding an immaterial correction of an error for the fiscal 2015 first quarter are reflected in prior period year-to-date results.
Casey’s General Stores, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
October 31, 2015 | April 30, 2015 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 65,580 | $ | 48,541 | |||
Receivables | 31,925 | 22,609 | |||||
Inventories | 204,277 | 197,331 | |||||
Prepaid expenses | 2,863 | 2,025 | |||||
Deferred income taxes | 17,704 | 15,531 | |||||
Income tax receivable | — | 19,223 | |||||
Total current assets | 322,349 | 305,260 | |||||
Other assets, net of amortization | 18,549 | 18,295 | |||||
Goodwill | 127,046 | 127,046 | |||||
Property and equipment, net of accumulated depreciation of $1,255,658 at October 31, 2015 and $1,185,246 at April 30, 2015 | 2,162,869 | 2,019,364 | |||||
Total assets | $ | 2,630,813 | $ | 2,469,965 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Notes payable to bank | $ | — | $ | — | |||
Current maturities of long-term debt | 15,393 | 15,398 | |||||
Accounts payable | 246,055 | 226,577 | |||||
Accrued expenses | 125,207 | 122,914 | |||||
Income taxes payable | 12,721 | — | |||||
Total current liabilities | 399,376 | 364,889 | |||||
Long-term debt, net of current maturities | 830,553 | 838,245 | |||||
Deferred income taxes | 353,955 | 354,973 | |||||
Deferred compensation | 17,639 | 17,645 | |||||
Other long-term liabilities | 19,882 | 18,984 | |||||
Total liabilities | 1,621,405 | 1,594,736 | |||||
Total shareholders’ equity | 1,009,408 | 875,229 | |||||
Total liabilities and shareholders’ equity | $ | 2,630,813 | $ | 2,469,965 | |||
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.
Revenue and Gross Profit by Product (Amounts in thousands) | |||||||||||||||||||
Three months ended 10/31/2015 | Fuel | Grocery & Other Merchandise | Prepared Food & Fountain | Other | Total | ||||||||||||||
Revenue | $ | 1,166,736 | $ | 516,578 | $ | 229,388 | $ | 11,898 | $ | 1,924,600 | |||||||||
Gross profit | $ | 122,690 | $ | 162,904 | $ | 145,513 | $ | 11,883 | $ | 442,990 | |||||||||
Margin | 10.5 | % | 31.5 | % | 63.4 | % | 99.9 | % | 23.0 | % | |||||||||
Fuel gallons | 496,226 | ||||||||||||||||||
Three months ended 10/31/2014 | |||||||||||||||||||
Revenue | $ | 1,470,768 | $ | 466,934 | $ | 201,196 | $ | 11,313 | $ | 2,150,211 | |||||||||
Gross profit | $ | 89,637 | $ | 151,025 | $ | 119,322 | $ | 11,298 | $ | 371,282 | |||||||||
Margin | 6.1 | % | 32.3 | % | 59.3 | % | 99.9 | % | 17.3 | % | |||||||||
Fuel gallons | 460,740 | ||||||||||||||||||
Revenue and Gross Profit by Product (Amounts in thousands) | |||||||||||||||||||
Six months ended 10/31/2015 | Fuel | Grocery & Other Merchandise | Prepared Food & Fountain | Other | Total | ||||||||||||||
Revenue | $ | 2,452,977 | $ | 1,043,198 | $ | 452,770 | $ | 24,247 | $ | 3,973,192 | |||||||||
Gross profit | $ | 210,371 | $ | 334,453 | $ | 285,193 | $ | 24,215 | $ | 854,232 | |||||||||
Margin | 8.6 | % | 32.1 | % | 63.0 | % | 99.9 | % | 21.5 | % | |||||||||
Fuel gallons | 997,395 | ||||||||||||||||||
Six months ended 10/31/2014 | |||||||||||||||||||
Revenue | $ | 3,077,895 | $ | 945,520 | $ | 395,807 | $ | 22,175 | $ | 4,441,397 | |||||||||
Gross profit | $ | 177,506 | $ | 306,710 | $ | 235,834 | $ | 22,146 | $ | 742,196 | |||||||||
Margin | 5.8 | % | 32.4 | % | 59.6 | % | 99.9 | % | 16.7 | % | |||||||||
Fuel gallons | 924,954 | ||||||||||||||||||
Fuel Gallons | Fuel Margin | ||||||||||||||||||||||||||||||||||
Same-store Sales Growth | (Cents per gallon, excluding credit card fees) | ||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | ||||||||||||||||||||||||||
F2016 | 3.4 | % | 3.3 | % | F2016 | 17.5 | ¢ | 24.7 | ¢ | ||||||||||||||||||||||||||
F2015 | 3.0 | 2.3 | 2.2 | % | 3.5 | % | 2.6 | % | F2015 | 18.9 | 19.5 | 22.0 | ¢ | 16.9 | ¢ | 19.3 | ¢ | ||||||||||||||||||
F2014 | 3.2 | 4.2 | 3.8 | 1.8 | 3.1 | F2014 | 21.4 | 16.0 | 13.6 | 13.1 | 16.1 | ||||||||||||||||||||||||
Grocery & Other Merchandise | Grocery & Other Merchandise | |||||||||||||||||||||||||||||
Same-store Sales Growth | Margin | |||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | |||||||||||||||||||||
F2016 | 7.0 | % | 7.5 | % | F2016 | 32.6 | % | 31.5 | % | |||||||||||||||||||||
F2015 | 7.7 | 6.6 | 7.7 | % | 9.7 | % | 7.8 | % | F2015 | 32.5 | 32.3 | 31.2 | % | 32.1 | % | 32.1 | % | |||||||||||||
F2014 | 6.1 | 10.2 | 6.5 | 7.2 | 7.4 | F2014 | 32.7 | 32.3 | 31.1 | 32.1 | 32.1 | |||||||||||||||||||
Prepared Food & Fountain | Prepared Food & Fountain | |||||||||||||||||||||||||||||
Same-store Sales Growth | Margin | |||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | |||||||||||||||||||||
F2016 | 10.3 | % | 9.4 | % | F2016 | 62.5 | % | 63.4 | % | |||||||||||||||||||||
F2015 | 11.1 | 11.1 | 14.1 | % | 13.5 | % | 12.4 | % | F2015 | 59.9 | 59.3 | 58.7 | % | 60.9 | % | 59.7 | % | |||||||||||||
F2014 | 11.9 | 12.3 | 10.7 | 12.1 | 11.8 | F2014 | 61.8 | 61.8 | 60.8 | 60.1 | 61.1 | |||||||||||||||||||