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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 Second Quarter Earnings Rise 26%

Ankeny, IA, December 10, 2014 — Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.28 for the second quarter of fiscal 2015 ended October 31, 2014, compared to $1.01 for the same quarter a year ago. Year to date, diluted earnings per share were $2.56 compared to $2.40 a year ago. “Total inside sales were up 13.6% and total fuel gallons sold were up 8.7% for the quarter,” said Chairman and CEO Robert J. Myers. “The positive sales performance, along with strong fuel margins, helped offset food commodity pressures the Company has experienced throughout the year.”

Fuel – The Company’s annual goal is to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. For the second quarter, same-store gallons sold were up 2.3% with an average margin of 19.5 cents per gallon. The Company sold 13 million renewable fuel credits for $6.3 million during the second quarter. “We believe same-store fuel sales have benefited from the lower retail prices as well as our fuel saver program,” said Myers. “Fuel margins remained strong through the second quarter due in part to a steady decline in wholesale costs.” Total gallons sold for the year were up 8.8% with an average margin of 19.2 cents per gallon. Year to date, same-store gallons were up 2.6%.

Grocery and Other Merchandise – Casey’s annual goal is to increase same-store sales 5.3% with an average margin of 32.1%. For the quarter, same-store sales were up 6.6% with an average margin of 32.3%. Myers stated, “The entire category continued to perform well through the second quarter. Packaged beverages are performing especially well, due in large part to our expanded cooler set in new, remodeled, and replaced stores.” Year to date, total sales for the category were $945.5 million and total gross profit was up 12.3% to $306.7 million. Same-store sales for the six months ended were up 7.2%.

Prepared Food & Fountain – The goal for fiscal 2015 is to increase same-store sales 9.5% with an average margin of 60%. For the second quarter, same-store sales were up 11.1% with an average margin of 59.3%. “Our operational initiatives continue to drive sales in the category, and we were able to implement strategic price adjustments at the beginning of the fiscal year,” said Myers. “While the margin has been impacted by high commodity costs, we have experienced a reduction in cheese costs since the end of the quarter.” Total sales for the category were up 17.1% to $395.8 million year-to-date while gross profit rose 12.9% to $235.8 million. Year to date, same store sales are up 11.1%.


Operating Expenses – Year to date, operating expenses increased 13.1% to $489.1 million. For the second quarter, operating expenses were up 13% to $244.8 million. “Operating expenses are up primarily due to newly built, acquired and replaced stores, along with the operational initiatives we have implemented to drive inside sales,” said Myers. “Store level operating expenses for locations that have not been impacted by the initiatives were up 4.2% for the quarter.”

Expansion – The Company’s annual goal is to build or acquire 72 to 108 stores and replace 25 existing stores. As of the end of the second quarter, the Company opened 21 new stores and acquired 29 stores. The Company also completed 13 replacements. “The Company is in excellent position to meet our expansion goal,” stated Myers. “We are pleased with the initial performance of our recently acquired chain of stores in the Fargo, North Dakota area, and our pipeline of new store construction sites is very full.” The Company currently has 26 new and 14 replacement stores under construction, as well as nine store acquisitions, 44 new sites, and 31 replacement sites under contract to purchase.

Dividend – At its December meeting, the Board of Directors declared a quarterly dividend of $0.20 per share. The dividend is payable February 16, 2015 to shareholders of record on February 2, 2015.

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Casey’s General Stores, Inc.

Condensed Consolidated

Statements of Income

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

(Unaudited)

 

 

     Three months ended October 31,      Six months ended October 31,  
     2014      2013      2014      2013  

Total revenue

   $ 2,150,211         2,015,885       $ 4,441,397         4,130,634   

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

     1,778,929         1,696,600         3,699,201         3,468,928   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     371,282         319,285         742,196         661,706   

Operating expenses

     244,781         216,529         489,099         432,503   

Depreciation and amortization

     37,275         32,416         73,524         62,917   

Interest, net

     10,360         9,896         20,866         19,472   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     78,866         60,444         158,707         146,814   

Federal and state income taxes

     28,997         21,014         58,741         53,589   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Income

   $ 49,869         39,430       $ 99,966         93,225   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per common share

     

Basic

   $ 1.29         1.03       $ 2.59         2.43   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 1.28         1.01       $ 2.56         2.40   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic weighted average shares

     38,706,611         38,455,216         38,668,453         38,424,146   

Plus effect of stock compensation

     352,056         432,697         348,522         408,634   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted weighted average shares

     39,058,667         38,887,913         39,016,975         38,832,780   
  

 

 

    

 

 

    

 

 

    

 

 

 


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     October 31,      April 30,  
     2014      2014  

Assets

     

Current assets

     

Cash and cash equivalents

   $ 71,550       $ 121,641   

Receivables

     31,034         25,841   

Inventories

     199,710         204,833   

Prepaid expenses

     2,674         1,478   

Deferred income taxes

     19,296         23,292   

Income tax receivable

     —           12,473   
  

 

 

    

 

 

 

Total current assets

     324,264         389,558   
  

 

 

    

 

 

 

Other assets, net of amortization

     16,847         15,947   

Goodwill

     127,031         120,406   

Property and equipment, net of accumulated depreciation of $1,119,932 at October 31, 2014, and of $1,062,278 at April 30, 2014

     1,933,766         1,778,965   
  

 

 

    

 

 

 

Total assets

   $ 2,401,908       $ 2,304,876   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Notes payable to bank

   $ —         $ —     

Current maturities of long-term debt

     7,888         553   

Accounts payable

     234,706         250,807   

Accrued expenses

     144,277         139,529   

Income taxes payable

     13,301      
  

 

 

    

 

 

 

Total current liabilities

     400,172         390,889   
  

 

 

    

 

 

 

Long-term debt, net of current maturities

     845,946         853,642   

Deferred income taxes

     318,478         318,023   

Deferred compensation

     17,193         16,558   

Other long-term liabilities

     20,017         22,500   
  

 

 

    

 

 

 

Total liabilities

     1,601,806         1,601,612   
  

 

 

    

 

 

 

Total shareholders’ equity

     800,102         703,264   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 2,401,908       $ 2,304,876   
  

 

 

    

 

 

 

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.

The previously announced revisions to our financial results for the fiscal 2015 first quarter and fiscal 2014 are reflected in year-to-date results and comparisons to prior periods.


Sales and Gross Profit by Product (Amounts in thousands)  
Three months ended 10/31/14    Fuel     Grocery & Other
Merchandise
    Prepared Food
& Fountain
    Other     Total  

Sales

   $ 1,470,768      $ 466,934      $ 201,196      $ 11,313      $ 2,150,211   

Gross profit

   $ 89,637      $ 151,025      $ 119,322      $ 11,298      $ 371,282   

Margin

     6.1     32.3     59.3     99.9     17.3

Fuel gallons

     460,740           

Three months ended 10/31/13

          

Sales

   $ 1,416,980      $ 416,552      $ 171,751      $ 10,602      $ 2,015,885   

Gross profit

   $ 67,816      $ 134,708      $ 106,171      $ 10,590      $ 319,285   

Margin

     4.8     32.3     61.8     99.9     15.8

Fuel gallons

     423,895       

 

Sales and Gross Profit by Product (Amounts in thousands)  
Six months ended 10/31/14    Fuel     Grocery & Other
Merchandise
    Prepared Food
& Fountain
    Other     Total  

Sales

   $ 3,077,895      $ 945,520      $ 395,807      $ 22,175      $ 4,441,397   

Gross profit

   $ 177,506      $ 306,710      $ 235,834      $ 22,146      $ 742,196   

Margin

     5.8     32.4     59.6     99.9     16.7

Fuel gallons

     924,954           

Six months ended 10/31/13

          

Sales

   $ 2,931,854      $ 840,137      $ 337,999      $ 20,644      $ 4,130,634   

Gross profit

   $ 159,044      $ 273,119      $ 208,925      $ 20,618      $ 661,706   

Margin

     5.4     32.5     61.8     99.9     16.0

Fuel gallons

     850,444       
Fuel Gallons  
Same-store Sales Growth   
     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2015

     3.0 %      2.3 %       

F2014

     3.2        4.2        3.8     1.8     3.1

F2013

     -0.2        -0.4        0.6        1.0        0.1   

 

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

F2015

     7.7 %      6.6 %       

F2014

     6.1        10.2        6.5     7.2     7.4

F2013

     2.6        -0.7        3.2        -0.2        0.8   

 

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

F2015

     11.1 %      11.1 %       

F2014

     11.9        12.3        10.7     12.1     11.8

F2013

     10.6        10.1        11.6        4.4        8.6   
Fuel Margin  
(Cents per gallon, excluding credit card fees)   
     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2015

     18.9 ¢      19.5 ¢       

F2014

     21.4        16.0        13.6 ¢      13.1 ¢      16.1 ¢ 

F2013

     14.2        14.2        13.1        16.3        14.4   

 

Grocery & Other Merchandise  
Margin   
     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2015

     32.5 %      32.3 %       

F2014

     32.7        32.3        31.1     32.1     32.1

F2013

     33.4        33.4        31.7        31.7        32.6   

 

Prepared Food & Fountain  
Margin   
     Q1     Q2     Q3     Q4     Fiscal
Year
 

F2015

     59.9 %      59.3 %       

F2014

     61.8        61.8        60.8     60.1     61.1

F2013

     63.5        62.5        60.6        60.5        61.8   
 


Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on December 11, 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.