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8-K - FORM 8-K - CASEYS GENERAL STORES INCd500381d8k.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 Opens 28 Stores in the Quarter, Positioned Well for Future Growth

Ankeny, IA, March 11, 2013—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.40 in diluted earnings per share for the third quarter of fiscal 2013 ended January 31, 2013 compared to $0.43 for the same period a year ago. Year-to-date diluted earnings per share was $2.26 versus $2.44 for the same period last year. “The quarter was adversely impacted by a challenging cigarette environment,” said Chairman and CEO Robert J. Myers. “However we did experience improved cigarette sales throughout the third quarter and continue to drive prepared food sales with several operational initiatives being implemented within our store base.”

Gasoline—The Company’s annual goal is to increase same-store gallons sold 1% with an average margin of 14.0 cents per gallon. For the third quarter, same-store gallons sold were up 0.6% with an average margin of 13.8 cents per gallon. “The retail price of fuel was in-line with the prior year’s third quarter, which helped improve same-store gallons sold,” said Myers. For the first nine months of the fiscal year, total gallons sold were up 3.6% with an average margin of 14.6 cents per gallon. Year-to-date same-store gallons sold were flat compared to prior year.

Grocery and Other Merchandise—Casey’s annual goal is to increase same-store sales 6.2% with an average margin of 32.7%. For the quarter, same-store sales were up 3.2% with an average margin of 31.7%. “Cigarette sales stabilized in the third quarter due to retail price adjustments made throughout the fiscal year,” stated Myers. “Although these adjustments adversely impacted our overall margin, the margin decline was partially offset by a more favorable product mix within the grocery and other merchandise category.” For the nine months ended January 31, 2013, same-store sales were up 1.3% with an average margin of 32.9%. Total sales for the year are up 4.3% and gross profit increased 6.2% to $354.7 million.

Prepared Food and Fountain—The goal for fiscal 2013 is to increase same-store sales 11% with an average margin of 61.1%. For the quarter, same-store sales were up 11.6% with an average margin of 60.6%. “An increase in cheese prices coupled with some other input cost increases pulled the margin back this quarter,” said Myers. “Fortunately same-store sales continue to perform well due in part to expanded 24-hour operations, pizza delivery, and major remodels.” For the year, same-store sales were up 10.2% with an average margin of 62.2%. Year-to-date, total sales were up 14.8% and gross profit rose 17.7% to $265.1 million.


Operating Expenses—Year to date, operating expenses increased 11.1% to $569.3 million. For the third quarter, operating expenses were up 12.2%. Included in the third quarter results was a $1.1 million impairment charge stemming from the planned closure of several stores in a recent acquisition. “The majority of the operating expense increase for both the quarter and year were from newly built, acquired and replaced stores over the past two fiscal years, along with the continued roll-out of 24-hour stores, pizza delivery, and major remodels,” stated Myers. Store-level operating expenses for locations not impacted by the initiatives were up approximately 3.8% for the quarter and 4% for the first nine months.

Expansion—The annual goal is to increase the total number of stores 4-6%. Through the first nine months of the fiscal year, the Company opened 18 newly constructed stores and 21 acquired stores. The Company also replaced 22 stores. “We will continue to update and improve our existing store base while maintaining our steady growth of new and acquired stores,” said Myers. Casey’s currently has 21 new stores and 12 replacement stores under construction, as well as 10 stores under written agreement to acquire. The Company also has 50 new sites and 25 replacement sites under contract to purchase.

Dividend—At its March meeting, the Board of Directors declared a quarterly dividend of $0.165 per share. The dividend is payable May 15, 2013 to shareholders of record on May 1, 2013.

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Casey’s General Stores, Inc.

Condensed Consolidated Statements

of Comprehensive Income

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

(Unaudited)

 

     Three months ended January 31,      Nine months ended January 31,  
     2013      2012      2013      2012  

Total revenue

   $ 1,662,365         1,578,950       $ 5,442,311         5,235,300   

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

     1,412,679         1,350,200         4,626,338         4,476,850   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     249,686         228,750         815,973         758,450   

Operating expenses

     189,872         169,231         569,311         512,479   

Depreciation and amortization

     28,229         24,616         81,913         70,943   

Interest, net

     8,764         8,730         26,305         26,441   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     22,821         26,173         138,444         148,587   

Federal and state income taxes

     7,358         9,474         51,091         54,865   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     15,463         16,699         87,353         93,722   

Other comprehensive income

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Comprehensive income

     $15,463         16,699         $87,353         93,722   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per common share

           

Basic

   $ .40         .44       $ 2.28         2.46   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ .40         .43       $ 2.26         2.44   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average shares outstanding

     38,317,140         38,071,742         38,282,196         38,050,676   

Plus effect of stock compensation

     304,948         383,394         331,934         342,826   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average shares outstanding

     38,622,088         38,455,136         38,614,130         38,393,502   
  

 

 

    

 

 

    

 

 

    

 

 

 


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     January 31,
2013
     April 30,
2012
 

Assets

     

Current assets

     

Cash and cash equivalents

   $ 26,521       $ 55,919   

Receivables

     19,790         21,700   

Inventories

     185,126         170,794   

Prepaid expenses

     1,953         1,298   

Deferred income taxes

     10,603         13,143   

Income tax receivable

     16,563         16,424   
  

 

 

    

 

 

 

Total current assets

     260,556         279,278   
  

 

 

    

 

 

 

Other assets, net of amortization

     13,931         12,403   

Goodwill

     114,661         104,385   

Property and equipment, net of accumulated depreciation of $926,087 at January 31, 2013, and $860,998 at April 30, 2012

     1,545,312         1,378,749   
  

 

 

    

 

 

 

Total assets

   $ 1,934,460       $ 1,774,815   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Notes payable to bank

   $ 58,600       $ —     

Current maturities of long-term debt

     13,307         10,737   

Accounts payable

     197,245         211,165   

Accrued expenses

     97,005         84,739   
  

 

 

    

 

 

 

Total current liabilities

     366,157         306,641   
  

 

 

    

 

 

 

Long-term debt, net of current maturities

     660,779         667,930   

Deferred income taxes

     286,963         260,405   

Deferred compensation

     15,326         14,698   

Other long-term liabilities

     21,749         19,100   
  

 

 

    

 

 

 

Total liabilities

     1,350,974         1,268,774   
  

 

 

    

 

 

 

Total shareholders’ equity

     583,486         506,041   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 1,934,460       $ 1,774,815   
  

 

 

    

 

 

 

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)

 

     Gasoline    

Grocery & Other

Merchandise

   

Prepared Food

& Fountain

    Other     Total  

Nine months ended

1/31/13

          

Sales

   $ 3,909,787      $ 1,078,448      $ 426,282      $ 27,794      $ 5,442,311   

Gross profit

   $ 168,431      $ 354,700      $ 265,091      $ 27,751      $ 815,973   

Margin

     4.3     32.9     62.2     99.8     15.0

Gasoline gallons

     1,157,077           

Nine months ended

1/31/12

          

Sales

   $ 3,807,642      $ 1,034,187      $ 371,431      $ 22,040      $ 5,235,300   

Gross profit

   $ 177,189      $ 334,049      $ 225,215      $ 21,997      $ 758,450   

Margin

     4.7     32.3     60.6     99.8     14.5

Gasoline gallons

     1,116,684           

 

Gasoline Gallons     Gasoline Margin  
Same-store Sales Growth      (Cents per gallon, excluding credit card fees)   
     Q1     Q2     Q3     Q4     Fiscal
Year
         Q1     Q2     Q3     Q4     Fiscal
Year
 

F2013

     -0.2     -0.4     0.6               F2013      14.9 ¢      14.9 ¢      13.8 ¢     

F2012

     -2.7        -2.9        -2.4        2.5     -1.5           F2012      17.2        16.7        13.6        13.7 ¢      15.3 ¢ 

F2011

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

 

Grocery & Other Merchandise     Grocery & Other Merchandise  
Same-store Sales Growth     Margin  
     Q1     Q2     Q3     Q4     Fiscal
Year
         Q1     Q2     Q3     Q4     Fiscal
Year
 

F2013

     2.6     -0.7     3.2               F2013      33.4     33.4     31.7    

F2012

     6.2        5.8        6.3        8.5     6.7           F2012      32.5        32.5        31.8        33.0     32.5

F2011

     2.0        6.9        5.8        4.8        4.6              F2011      32.8        32.9        30.9        32.1        32.2   

 

Prepared Food & Fountain     Prepared Food & Fountain  
Same-store Sales Growth     Margin  
     Q1     Q2     Q3     Q4     Fiscal
Year
         Q1     Q2     Q3     Q4     Fiscal
Year
 

F2013

     10.6     10.1     11.6               F2013      63.5     62.5     60.6    

F2012

     15.3        14.2        12.6        16.8     14.3           F2012      61.2        59.5        61.2        60.8     60.7

F2011

     2.4        7.2        10.5        11.8        7.7              F2011      63.8        62.7        62.1        60.2        62.2   

 

LOGO

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

a conference call on March 12, 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.