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8-K - FORM 8-K - CASEYS GENERAL STORES INCd553324d8k.htm
EX-99.2 - EX-99.2 - CASEYS GENERAL STORES INCd553324dex992.htm

Exhibit 99.1

 

NEWS RELEASE FOR IMMEDIATE RELEASE    LOGO
Casey’s General Stores, Inc.    Nasdaq Symbol CASY
One Convenience Blvd.    CONTACT Bill Walljasper
Ankeny, IA 50021    (515) 965-6505

Casey’s Finishes the Year Strong and Remains Optimistic for Fiscal 2014

Ankeny, IA, June 13, 2013—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.60 in diluted earnings per share for the fourth quarter of fiscal year ended April 30, 2013 compared to $0.60 for the same period a year ago. For the year, diluted earnings per share were $2.86 versus $3.04 for the same period last year. The Company incurred approximately $3.5 million in non-cash charges in the 4th quarter related to the write-down of an unrecoverable accounts receivable balance, as well as charges pertaining to accelerated depreciation and impairment for replaced, closed, and seven underperforming stores.

“A difficult cigarette environment and challenging weather comparisons adversely impacted sales during fiscal 2013,” said Chairman and CEO Robert J. Myers. “However, in the fourth quarter we saw strong sales gains with the recent implementation of a “fuel saver” program in partnership with Hy-Vee grocery stores and competitive cigarette pricing adjustments made earlier in the fiscal year. We expect this momentum will continue into fiscal 2014.”

Gasoline—The Company’s annual goal for fiscal 2013 was to increase same-store gasoline gallons sold 1% with an average margin of 14.0 cents per gallon. For the quarter, same-store gallons sold rose 1.0% with an average margin of 17.0 cents per gallon. “The fourth quarter gas margin benefited from our ability to sell 10.3 million renewable fuel credits for $4.8 million.” said Myers. For the fiscal year, total gallons sold were up 4% to 1.5 billion with an average margin of 15.2 cents, while gross profit rose 2.7%. Same-store gallons for the year were relatively flat compared to a year ago.

Grocery & Other Merchandise—Casey’s fiscal 2013 goal was to increase same-store sales 6.2% with an average margin of 32.7%. For the quarter, same-store sales were down 0.2% from the same period a year ago with an average margin of 31.7%. For the year, same-store sales finished up 0.8% with an average margin of 32.6%. “Challenging weather comparisons throughout the entire quarter hindered sales while cigarette price adjustments adversely impacted margins,” stated Myers. “However we are encouraged by the recent stabilization in cigarette sales and expect continued growth in beer and beverage sales during fiscal 2014.” Total annual sales for the category were up 3.9% compared to the prior year, and gross profit rose 4.4% to $462.7 million.

Prepared Food & Fountain—The goal for fiscal 2013 was to increase same-store sales 11% with an average margin of 61.1%. Same-store sales for the fourth quarter increased 4.4% with an average margin of 60.5%. For the year, same-store sales were up 8.6% with an average margin of 61.8%. “Unfavorable weather and higher input costs impacted fourth quarter results,” said Myers. “Looking ahead to fiscal 2014, we will continue to grow this category by implementing major remodels, 24-hour conversions, and pizza delivery where appropriate.” Year to date, total sales were up 13% to $564.9 million, and gross profit rose 15.1% to $349 million.

Operating Expenses—For the fiscal year, operating expenses increased 10.4% to $760.4 million. For the quarter, operating expenses were up 8.6%. In the fourth quarter, the Company wrote-off an accounts receivable balance of $1.5 million from a check collecting service that went out of business. The Company also incurred an impairment charge of approximately $0.7 million for seven underperforming stores that are expected to be closed in fiscal 2014. “The majority of the operating expense increase was due to various initiatives implemented to grow the business, particularly newly constructed, acquired, and replaced stores along with expanded hours, pizza delivery, and major remodels,” said Myers. For the year, store level operating expenses increased less than 4% for the remaining unchanged base of stores.


Expansion—The fiscal 2013 goal was to increase the total number of stores 4-6%. For the fiscal year, the Company opened 26 acquired stores and completed 31 new-store constructions, bringing the year-end store count to 1,749. In addition to this activity, the Company also replaced 26 stores during the year. “We currently have 15 new stores and 16 replacement stores under construction, as well as 20 stores under contract to acquire,” said Myers. “We have entered into several new markets this past year and we are excited about our growth opportunities in fiscal 2014.” The Company has over 70 locations under contract for both new store and replacement store construction.

Fiscal 2014 Goals—The corporate performance goals for fiscal 2014 are as follows:

 

   

Increase same-store gasoline gallons sold 1.5% with an average margin of 15 cents per gallon.

 

   

Increase same-store grocery and other merchandise sales 5% with an average margin of 32.3%.

 

   

Increase same-store prepared food and fountain sales 9% with an average margin of 62.0%.

 

   

Build or acquire 70 – 105 stores (4-6%) and replace 20 existing locations.

Dividend— At its June meeting, the Board of Directors increased the quarterly dividend to $0.18 per share. The dividend is payable August 15, 2013 to shareholders of record on August 1, 2013.

****

 

LOGO   

Casey’s General Stores, Inc.

Condensed Consolidated Statements

of Comprehensive Income

(Amounts in thousands, except income per share)

(Unaudited)

 

     Three months ended April 30,      Year ended April 30,  
     2013      2012      2013      2012  

Total revenue

   $ 1,808,529         1,752,504       $ 7,250,840         6,987,804   

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

     1,542,137         1,507,264         6,168,475         5,984,114   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     266,392         245,240         1,082,365         1,003,690   

Operating expenses

     191,054         175,952         760,365         688,431   

Depreciation and amortization

     29,910         25,609         111,823         96,552   

Interest, net

     8,743         8,751         35,048         35,192   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     36,685         34,928         175,129         183,515   

Federal and state income taxes

     13,413         11,859         64,504         66,724   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     23,272         23,069         110,625         116,791   

Other comprehensive income

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Comprehensive income

   $ 23,272         23,069       $ 110,625         116,791   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per common share

           

Basic

   $ .61         .61       $ 2.89         3.07   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ .60         .60       $ 2.86         3.04   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average shares outstanding

     38,342         38,120         38,297         38,068   

Plus effect of stock compensation

     353         361         323         324   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average shares outstanding

     38,695         38,481         38,620         38,392   
  

 

 

    

 

 

    

 

 

    

 

 

 


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     April 30,      April 30,  
     2013      2012  

Assets

     

Current assets

     

Cash and cash equivalents

   $ 41,271       $ 55,919   

Receivables

     20,900         21,700   

Inventories

     189,514         170,794   

Prepaid expenses

     1,396         1,298   

Deferred income taxes

     9,916         13,143   

Income tax receivable

     9,820         16,424   
  

 

 

    

 

 

 

Total current assets

     272,817         279,278   
  

 

 

    

 

 

 

Other assets, net of amortization

     14,485         12,403   

Goodwill

     114,791         104,385   

Property and equipment, net of accumulated depreciation of $952,286 at April 30, 2013, and $860,998 at April 30, 2012

     1,581,925         1,378,749   
  

 

 

    

 

 

 

Total assets

   $ 1,984,018       $ 1,774,815   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Notes payable to bank

   $ 59,100       $ —     

Current maturities of long-term debt

     15,810         10,737   

Accounts payable

     232,913         211,165   

Accrued expenses

     89,925         84,739   
  

 

 

    

 

 

 

Total current liabilities

     397,748         306,641   
  

 

 

    

 

 

 

Long-term debt, net of current maturities

     653,081         667,930   

Deferred income taxes

     293,708         260,405   

Deferred compensation

     15,787         14,698   

Other long-term liabilities

     21,399         19,100   
  

 

 

    

 

 

 

Total liabilities

     1,381,723         1,268,774   
  

 

 

    

 

 

 

Total shareholders’ equity

     602,295         506,041   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 1,984,018       $ 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  
Year ended 4/30/13           

Sales

   $  5,229,157      $  1,418,711      $  564,924      $  38,048      $ 7,250,840   

Gross profit

   $ 232,718      $ 462,663      $ 348,993      $ 37,991      $ 1,082,365   

Margin

     4.5     32.6     61.8     99.8     14.9

Gasoline gallons

     1,535,140           

Year ended 4/30/12

          

Sales

   $ 5,092,311      $ 1,364,995      $ 499,712      $ 30,786      $ 6,987,804   

Gross profit

   $ 226,559      $ 443,245      $ 303,159      $ 30,727      $ 1,003,690   

Margin

     4.4     32.5     60.7     99.8     14.4

Gasoline gallons

     1,476,154           

 

Gasoline Gallons

Same-store Sales Growth

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  

F2013

     -0.2     -0.4     0.6     1.0     0.1

F2012

     -2.7        -2.9        -2.4        2.5        -1.5   

F2011

     1.5        3.6        3.5        -1.9        1.6   

Grocery & Other Merchandise

Same-store Sales Growth

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  

F2013

     2.6     -0.7     3.2     -0.2     0.8

F2012

     6.2        5.8        6.3        8.5        6.7   

F2011

     2.0        6.9        5.8        4.8        4.6   

Prepared Food & Fountain

Same-store Sales Growth

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  

F2013

     10.6     10.1     11.6     4.4     8.6

F2012

     15.3        14.2        12.6        16.8        14.3   

F2011

     2.4        7.2        10.5        11.8        7.7   

Gasoline Margin

(Cents per gallon, excluding credit card fees)

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  
F2013      14.9 ¢      14.9 ¢      13.8 ¢      17.0 ¢      15.2 ¢ 
F2012      17.2        16.7        13.6        13.7        15.3   
F2011      16.4        14.9        13.9        15.6        15.2   

Grocery & Other Merchandise

Margin

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  
F2013      33.4     33.4     31.7     31.7     32.6
F2012      32.5        32.5        31.8        33.0        32.5   
F2011      32.8        32.9        30.9        32.1        32.2   

Prepared Food & Fountain

Margin

 

                             Fiscal  
     Q1     Q2     Q3     Q4     Year  
F2013      63.5     62.5     60.6     60.5     61.8
F2012      61.2        59.5        61.2        60.8        60.7   
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 June 14, 2013. The call will be broadcast live over the Internet at 9:30 a.m. CDT via the

Investor Relations section of our Web site and will be available in an archived format.