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8-K - FORM 8-K - CASEYS GENERAL STORES INCd8k.htm
EX-99.2 - AMENDMENT NO. 1 TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT - CASEYS GENERAL STORES INCdex992.htm

Exhibit 99.1

 

LOGO

Casey’s General Stores, Inc.

One Convenience Blvd.

Ankeny, IA 50021

  

Nasdaq Symbol CASY

CONTACT Bill Walljasper

(515) 965-6505

Casey’s Reports Strong Second Quarter Sales

Ankeny, IA, December 7, 2010 – Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.51 in basic earnings per share for the second quarter of fiscal 2011 ended October 31, 2010. The results include approximately $19.4 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. Without those expenses, basic earnings per share would have been $.81 compared to $0.66 for the same quarter a year ago, up 22.7%. Year to date, basic earnings per share were $1.27 versus $1.53 for the same period last year. Excluding expenses related to the hostile offer and recapitalization plan, mid-year basic earnings per share would have been $1.62. “We are pleased with the second quarter results driven by strong sales increases across all categories,” stated President and CEO Robert J. Myers. “We expect additional revenue growth as we close on more acquisitions during the third quarter.”

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 up 3.6% with an average margin of 14.9 cents per gallon. “We anticipate the favorable gasoline environment to continue throughout the 3rd quarter,” said Myers. Same-store gallons sold for the year increased 2.5% with an average margin of 15.7 cents, while gross profit rose nearly 13%. For the year, total gallons sold were up 8% to 712.1 million.

Grocery & Other Merchandise – Casey’s annual goal is to increase same-store sales 6% with an average margin of 33.9%. For the quarter, same-store sales rose 6.9% with an average margin of 32.9%. For the six months ended October 31, 2010, same-store sales were up 4.2% with an average margin of 32.9%. “More favorable weather and increased promotional initiatives helped drive sales during the second quarter,” stated Myers. “Competitive cigarette pricing continued in the second quarter, putting pressure on the margin. However, we were pleased with the overall gain in gross profit dollars.” Total sales for the year are up 9.2% to $626.1 million.

Prepared Food & Fountain – The goal for fiscal 2011 is to increase same-store sales 8.9% with an average margin of 63.1%. Same-store sales were up 7.2% for the quarter and 4.8% year to date. The average margin for the quarter was 62.7%; down from a record high margin in the same period a year ago primarily due to a rise in commodity prices. “We benefited from value-oriented promotions throughout the quarter driving total sales by 13% and increasing gross profit 9.6%,” said Myers. “Despite the challenging economy, we are encouraged by the continued strong performance of this category.” Year to date, total sales were up 10.3% to $209.6 million compared to $190 million with an average margin of 63.2%.


Operating Expenses – For the quarter, operating expenses increased 17% to $153.3 million. Excluding expenses associated with the unsolicited hostile offer by Couche-Tard, expenses increased 10.8%. “The increase was driven by a $2.5 million increase in credit card fees and expenses associated with operating more stores this quarter 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 10 stores and completed 8 new-store constructions. “We anticipate completing 74 more acquisitions during the third fiscal quarter and remain optimistic about our long-term opportunities,” said Myers. “In addition to acquisitions, we are on pace to build a total of 20 new stores and replace 15 stores by the end of the fiscal year.” The Company also completed 12 major remodels during the first six months of the year.

Dividend – At its December meeting, the Board of Directors declared a quarterly dividend of $0.135 per share. The dividend is payable February 15, 2011 to shareholders of record on February 1, 2011.

****

 

LOGO   

Casey’s General Stores, Inc.

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)

(Unaudited)

  

 

     Three months ended October 31,      Six months ended October 31,  
   2010      2009      2010      2009  

Total revenue

   $ 1,349,519       $ 1,154,964       $ 2,711,546       $ 2,342,904   

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

     1,122,142         948,600         2,250,198         1,916,415   
                                   

Gross profit

     227,377         206,364         461,348         426,489   

Operating expenses

     153,263         131,013         305,649         263,371   

Depreciation and amortization

     20,041         18,527         39,604         36,478   

Interest, net

     8,195         2,707         10,722         5,411   

Loss on early retirement of debt

     11,350         —           11,350         —     
                                   

Earnings before income taxes

     34,528         54,117         94,023         121,229   

Federal and state income taxes

     12,836         20,525         35,045         43,444   
                                   

Net earnings

   $ 21,692       $ 33,592       $ 58,978       $ 77,785   
                                   

Earnings per common share

           

Basic

   $ .51       $ .66       $ 1.27       $ 1.53   
                                   

Diluted

   $ .51       $ .66       $ 1.26       $ 1.52   
                                   

Basic weighted average shares outstanding

     42,283,525         50,899,179         46,622,176         50,881,379   

Plus effect of stock options

     287,678         155,107         263,899         137,702   
                                   

Diluted weighted average shares outstanding

     42,571,203         51,054,286         46,886,075         51,019,081   
                                   


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     October 31,
2010
     April 30,
2010
 

Assets

     

Current assets

     

Cash and cash equivalents

   $ 188,267       $ 151,676   

Receivables

     15,329         12,111   

Inventories

     122,348         124,951   

Prepaid expenses

     1,739         1,129   

Deferred income taxes

     10,977         9,417   

Income taxes receivable

     10,425         10,801   
                 

Total current assets

     349,085         310,085   
                 

Other assets, net of amortization

     10,794         10,232   

Goodwill

     68,260         57,547   

Property and equipment, net of accumulated depreciation of $743,560 at October 31, 2010, and of $706,994 at April 30, 2010

     1,075,364         1,010,911   
                 

Total assets

   $ 1,503,503       $ 1,388,775   
                 

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Current maturities of long-term debt

   $ 5,274       $ 24,577   

Accounts payable

     174,232         145,334   

Accrued expenses

     80,481         70,975   
                 

Total current liabilities

     259,987         240,886   
                 

Long-term debt, net of current maturities

     679,159         154,754   

Deferred income taxes

     158,440         141,229   

Deferred compensation

     13,309         12,788   

Other long-term liabilities

     15,887         14,799   
                 

Total liabilities

     1,126,782         564,456   
                 

Total shareholders’ equity

     376,721         824,319   
                 

Total liabilities and shareholders’ equity

   $ 1,503,503       $ 1,388,775   
                 

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

10/31/10

   Gasoline    

Grocery & Other

Merchandise

   

Prepared Food

& Fountain

    Other     Total  

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           

Six months ended

10/31/09

                              

Sales

   $ 1,569,749      $ 573,530      $ 190,037      $ 9,588      $ 2,342,904   

Gross profit

   $ 98,873      $ 196,101      $ 121,957      $ 9,558      $ 426,489   

Margin

     6.3     34.2     64.2     99.7     18.2

Gasoline gallons

     659,521           

 

 

Gasoline Gallons

Same-store Sales Growth

 
     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2011

     1.5     3.6      

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      

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      

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 ¢       

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      

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
 
F2010      63.8     62.7      
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 December 8, 2010. 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.