ANKENY, Iowa--(BUSINESS WIRE)--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.
| Casey’s General Stores, Inc. | ||||||||||||||
| Condensed Consolidated Statements | ||||||||||||||
| of Comprehensive Income | ||||||||||||||
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(Dollars in thousands, except share and per share amounts) |
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(Unaudited) |
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Three months ended January 31, |
Nine months ended January 31, |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||
| Total revenue | $ | 1,662,365 | 1,578,950 | $ | 5,442,311 | 5,235,300 | ||||||||
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Cost of goods sold (exclusive of
depreciation and amortization, shown separately below) |
1,412,679 |
1,350,200 |
4,626,338 |
4,476,850 |
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| 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 | ||||||||
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Basic weighted average shares
outstanding |
38,317,140 |
38,071,742 |
38,282,196 |
38,050,676 |
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| Plus effect of stock compensation | 304,948 | 383,394 | 331,934 | 342,826 | ||||||||||
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Diluted weighted average shares
outstanding |
38,622,088 |
38,455,136 |
38,614,130 |
38,393,502 |
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| Casey’s General Stores, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
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(Dollars in thousands) |
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(Unaudited) |
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January 31, |
April 30, |
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| 2013 | 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 | |||||||||||||||||||
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(Amounts in thousands) |
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| Nine months ended | Grocery & Other | Prepared Food | |||||||||||||||||
| 1/31/13 | Gasoline | Merchandise | & Fountain | Other | Total | ||||||||||||||
| 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) | |||||||||||||||||||||||||||||||||
| Fiscal | Fiscal | |||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||||||||||||||||
| F2013 | -0.2 | % | -0.4 | % | 0.6 | % | F2013 |
14.9 |
¢ |
14.9 |
¢ |
13.8 |
¢ |
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| F2012 | -2.7 | -2.9 | -2.4 | 2.5 | % | -1.5 | % | F2012 | 17.2 | 16.7 | 13.6 |
13.7 |
¢ |
15.3 |
¢ |
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| 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 | |||||||||||||||||||||||||||||||||
| Fiscal | Fiscal | |||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | 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 | |||||||||||||||||||||||||||||||||
| Fiscal | Fiscal | |||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | 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 | |||||||||||||||||||||||
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.