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8-K - FORM 8-K - CASEYS GENERAL STORES INC | d8k.htm |
EX-99.2 - AMENDMENT NO. 1 TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT - CASEYS GENERAL STORES INC | dex992.htm |
Exhibit 99.1
Caseys General Stores, Inc. One Convenience Blvd. Ankeny, IA 50021 |
Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505 |
Caseys Reports Strong Second Quarter Sales
Ankeny, IA, December 7, 2010 Caseys 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 Companys 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 Companys 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 Caseys 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.
****
Caseys 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 | ||||||||||||
Caseys 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 |
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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. Caseys 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 |
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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 |
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.