Attached files

file filename
8-K - 8-K - CASEYS GENERAL STORES INCd740706d8k.htm
EX-99.2 - EX-99.2 - CASEYS GENERAL STORES INCd740706dex992.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 Posts Strong Revenue Growth for Fiscal 2014

Ankeny, IA, June 9, 2014—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $0.59 for the fourth quarter of fiscal year ended April 30, 2014 compared to $0.60 for the same period a year ago. For the year, diluted earnings per share were $3.46 versus $2.86 for the same period last year. “Inside sales were up over 13% for the fiscal year, and total fuel gallons sold increased by over 8%,” said Chairman and CEO Robert J. Myers. “We were able to add new stores and acquisitions in a disciplined manner while at the same time enhance the performance of our existing store base.”

Fuel—The Company’s annual goal for fiscal 2014 was to increase same-store gallons sold 1.5% with an average margin of 15 cents per gallon. Annual same-store gallons sold were up 3.1% with an average margin of 16.8 cents per gallon. For the quarter, same-store gallons rose 1.8% with an average margin of 13.8 cents per gallon. The Company sold 12.1 million renewable fuel credits for $5.7 million in the fourth quarter. “Fuel margins tightened in the fourth quarter primarily due to less volatility of wholesale costs,” said Myers. “The fuel saver program provided a boost to same-store gallons for both the fourth quarter and the year.” For fiscal 2014, total gallons sold were up 8.5% to 1.7 billion, while gross profit dollars rose 20% to $280.1 million.

Grocery and Other Merchandise—Casey’s fiscal 2014 goal was to increase same-store sales 5% with an average margin of 32.3%. For the year, same-store sales were up 7.4% with an average margin of 32.1%. For the quarter, same-store sales were up 7.2% with an average margin of 32.1%. “Sales throughout the entire category performed well during the fourth quarter despite the unseasonably cold weather,” stated Myers. “Although cigarettes pressured margin in this category throughout the year, we believe the competitive environment has stabilized resulting in a slight improvement in cigarette profitability in the fourth quarter.” For fiscal 2014, total sales were up 11.6% to $1.6 billion, while gross profit dollars rose 9.8% to $507.9 million.

Prepared Food and Fountain—Casey’s annual goal was to increase same-store sales 9% with an average margin of 62%. For the year, same-store sales were up 11.8% with an average margin of 61.1%. Same-store sales for the fourth quarter increased 12.1% with an average margin of 60.1%. “Even though rising cheese and meat costs adversely impacted the margin, we were still able to grow gross profit dollars by over 16% in the fourth quarter compared to the same period last year,” said Myers. “Our sales continue to benefit from expanding operations to 24-hours a day, adding pizza delivery, and completing major remodels. We also implemented strategic price increases at the start of fiscal 2015 to partially offset rising input costs.” For fiscal 2014, total sales were up 16.7% to $659.2 million, while gross profit dollars rose 15.5% to $403 million.


Operating Expenses—For the fiscal year, operating expenses increased 12.7% to $857.3 million. For the fourth quarter, operating expenses were up 10.0%. “Both the annual and quarter expenses were up primarily due to new, acquired and replaced stores, along with the various operating initiatives that have been implemented in existing stores,” stated Myers.

Expansion—The annual goal was to build or acquire 70 to 105 (4-6%) stores and replace 20 existing locations. For the fiscal year, the Company built 44 new stores, acquired 28 stores, and also completed 20 replacements as well as 25 major remodels. “We continue to execute our prudent growth strategy of blending new store growth with acquisitions, and reached a milestone in the fourth quarter as we now operate over 1,800 stores,” said Myers. “Casey’s is off to a great start to fiscal 2015 as we completed the 24-store Stop-n-Go acquisition in May.” The Company currently has 27 new stores and 23 replacement stores under construction, as well as 38 new sites, 28 replacement sites, and 5 acquisition stores under contract to purchase. The Company recently announced plans to build a second distribution center in Terre Haute, Indiana to facilitate store growth as well as provide a more efficient distribution system to the existing chain.

Fiscal 2015 Goals—The corporate performance goals for fiscal 2015 are as follows:

 

    Increase same-store fuel gallons sold 1% with an average margin of 15.3 cents per gallon

 

    Increase same-store grocery & other merchandise sales 5.3% with an average margin of 32.1%

 

    Increase same-store prepared food & fountain sales 9.5% with an average margin of 60%

 

    Build or acquire 72 to 108 stores and replace 25 existing locations

Dividend—At its June meeting, the Board of Directors increased the quarterly dividend to $0.20 per share. The dividend is payable August 15th to shareholders of record on August 1st, 2014.

 

LOGO

    

 

 

 

 

Casey’s General Stores, Inc.

Condensed Consolidated

Statements of Income

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

(Unaudited)

  

  

  

  

  

     Three months ended April 30,      Year ended April 30,  
     2014      2013      2014      2013  

Total revenue

   $ 1,919,566       $ 1,808,529       $ 7,840,255       $ 7,250,840   

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

     1,632,991         1,542,137         6,605,996         6,168,475   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     286,575         266,392         1,234,259         1,082,365   

Operating expenses

     210,123         191,054         857,297         760,365   

Depreciation and amortization

     35,556         29,910         131,160         111,823   

Interest, net

     10,119         8,743         39,270         35,048   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     30,777         36,685         206,532         175,129   

Federal and state income taxes

     7,961         13,413         72,018         64,504   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Income

   $ 22,816       $ 23,272       $ 134,514       $ 110,625   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per common share

           

Basic

   $ .59       $ .61       $ 3.50       $ 2.89   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ .59       $ .60       $ 3.46       $ 2.86   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average shares

     38,499         38,342         38,458         38,297   

Plus effect of stock compensation

     425         353         410         323   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average shares

     38,924         38,695         38,868         38,620   
  

 

 

    

 

 

    

 

 

    

 

 

 


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     April 30,      April 30,  
     2014      2013  

Assets

     

Current assets

     

Cash and cash equivalents

   $ 121,641       $ 41,271   

Receivables

     25,841         20,900   

Inventories

     204,833         189,514   

Prepaid expenses

     1,478         1,396   

Deferred income taxes

     11,878         9,916   

Income tax receivable

     12,473         9,820   
  

 

 

    

 

 

 

Total current assets

     378,144         272,817   
  

 

 

    

 

 

 

Other assets, net of amortization

     15,947         14,485   

Goodwill

     120,406         114,791   

Property and equipment, net of accumulated depreciation of $1,062,278 at April 30, 2014, and of $952,286 at April 30, 2013

     1,778,965         1,581,925   
  

 

 

    

 

 

 

Total assets

   $ 2,293,462       $ 1,984,018   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Notes payable to bank

   $ —         $ 59,100   

Current maturities of long-term debt

     553         15,810   

Accounts payable

     250,807         232,913   

Accrued expenses

     111,583         89,925   
  

 

 

    

 

 

 

Total current liabilities

     362,943         397,748   
  

 

 

    

 

 

 

Long-term debt, net of current maturities

     853,642         653,081   

Deferred income taxes

     317,953         293,708   

Deferred compensation

     16,558         15,787   

Other long-term liabilities

     22,500         21,399   
  

 

 

    

 

 

 

Total liabilities

     1,573,596         1,381,723   
  

 

 

    

 

 

 

Total shareholders’ equity

     719,866         602,295   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 2,293,462       $ 1,984,018   
  

 

 

    

 

 

 

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)

 

Three months ended 04/30/14    Fuel     Grocery & Other
Merchandise
    Prepared Food
& Fountain
    Other     Total  

Sales

   $ 1,366,951      $ 378,251      $ 162,977      $ 11,387      $ 1,919,566   

Gross profit

   $ 55,891      $ 121,388      $ 97,924      $ 11,372      $ 286,575   

Margin

     4.1     32.1     60.1     99.9     14.9

Fuel gallons

     403,767           
Three months ended 04/30/13                               

Sales

   $ 1,319,371      $ 340,263      $ 138,642      $ 10,253      $ 1,808,529   

Gross profit

   $ 64,287      $ 107,963      $ 83,902      $ 10,240      $ 266,392   

Margin

     4.9     31.7     60.5     99.9     14.7

Fuel gallons

     378,062           

Sales and Gross Profit by Product (Amounts in thousands)

 

Year ended 04/30/14    Fuel     Grocery & Other
Merchandise
    Prepared Food
& Fountain
    Other     Total  

Sales

   $ 5,554,580      $ 1,583,234      $ 659,176      $ 43,265      $ 7,840,255   

Gross profit

   $ 280,115      $ 507,936      $ 402,996      $ 43,212      $ 1,234,259   

Margin

     5.0     32.1     61.1     99.9     15.7

Fuel gallons

     1,665,600           
Year ended 04/30/13                               

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     99.9     14.9

Fuel gallons

     1,535,140           

 

Fuel Gallons

Same-store Sales Growth

 

     Q1     Q2     Q3     Q4     FY  

F2014

     3.2     4.2     3.8     1.8     3.1

F2013

     -0.2        -0.4        0.6        1.0        0.1   

F2012

     -2.7        -2.9        -2.4        2.5        -1.5   

Grocery & Other Merchandise

Same-store Sales Growth

 

     Q1     Q2     Q3     Q4     FY  

F2014

     6.1     10.2     6.5     7.2     7.4

F2013

     2.6        -0.7        3.2        -0.2        0.8   

F2012

     6.2        5.8        6.3        8.5        6.7   

Prepared Food & Fountain

Same-store Sales Growth

 

     Q1     Q2     Q3     Q4     FY  

F2014

     11.9     12.3     10.7     12.1     11.8

F2013

     10.6        10.1        11.6        4.4        8.6   

F2012

     15.3        14.2        12.6        16.8        14.3   

 

Fuel Margin

(Cents pergallon, excluding credit card fees)

 

     Q1     Q2     Q3     Q4     FY  

F2014

     22.1 ¢      16.7 ¢      14.4 ¢      13.8 ¢      16.8 ¢ 

F2013

     14.9        14.9        13.8        17.0        15.2   

F2012

     17.2        16.7        13.6        13.7        15.3   

Grocery & Other Merchandise

Margin

 

     Q1     Q2     Q3     Q4     FY  

F2014

     32.7     32.3     31.1     32.1     32.1

F2013

     33.4        33.4        31.7        31.7        32.6   

F2012

     32.5        32.5        31.8        33.0        32.5   

Prepared Food & Fountain

Margin

 

     Q1     Q2     Q3     Q4     FY  

F2014

     61.8     61.8     60.8     60.1     61.1

F2013

     63.5        62.5        60.6        60.5        61.8   

F2012

     61.2        59.5        61.2        60.8        60.7   
 

 

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

a conference call on June 10, 2014. 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.