ANKENY, Iowa--(BUSINESS WIRE)--Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.05 for the fourth quarter of fiscal year ended April 30, 2015 compared to $0.54 for the same period a year ago. For the year, diluted earnings per share were $4.62 versus $3.26 for the same period last year. “Fiscal 2015 was a tremendous year for Casey’s,” said Chairman and CEO Robert J. Myers. “Sales were strong throughout all of our categories, and the Company is poised to grow the business in fiscal 2016 with a variety of initiatives to improve the existing store base, while at the same time building and acquiring more stores.”
Fuel - The Company’s annual goal for fiscal 2015 was to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. Annual same-store gallons sold were up 2.6% with an average margin of 19.3 cents per gallon. For the quarter, same-store gallons rose 3.5% with an average margin of 16.9 cents per gallon. The Company sold 13.9 million renewable fuel credits for $9.7 million in the fourth quarter. “Same-store gallons sold are benefiting from lower retail fuel prices,” said Myers. “The steady fall in wholesale cost midyear along with favorable renewable fuel credits contributed to a record high fuel margin for the year.” For fiscal 2015, total gallons sold were up 9.1% to 1.8 billion, while gross profit dollars rose 31.1% to $351.2 million.
Grocery and Other Merchandise - Casey’s goal was to increase same-store sales 5.3% with an average margin of 32.1%. For the year, same-store sales were up 7.8% with an average margin of 32.1%. For the fourth quarter, same-store sales were up 9.7% with an average margin of 32.1%. “Sales were strong throughout the entire category during the fiscal year, and we are especially pleased with the build in momentum during the fourth quarter,” stated Myers. “We are encouraged by recent premium cigarette sales gains, while beer and beverage sales continue their strong performance as we expand our initiatives throughout the chain, particularly 24-hour conversions and major store remodels.” For the year, total sales were up 13.4% to $1.8 billion, and gross profit dollars rose 13.3% to $575.5 million.
Prepared Food and Fountain - Casey’s annual goal was to increase same-store sales 9.5% with an average margin of 60%. For the year, same-store sales were up 12.4% with an average margin of 59.7%. For the quarter, same-store sales were up 13.5% with an average margin of 60.9%. “Prepared food margin was under pressure for most of the fiscal year due to high input costs,” said Myers. “Fortunately we experienced some relief towards the end of the third quarter and have locked in favorable cheese costs through the end of December 2015 and coffee through December 2016. Same-store sales continue to be favorably impacted by several initiatives, and we are particularly excited about rolling out our online pizza ordering system during fiscal 2016.” For fiscal 2015, total sales were up 18.5% to $780.9 million, and gross profit dollars were up 15.6% to $466.1 million.
Operating Expenses - For the fiscal year, operating expenses increased 12.0% to $960.4 million. For the fourth quarter, operating expenses were up 10.7%. “The majority of our operating expense increase is related to new and acquired stores, as well as store replacements and the various operational initiatives in place throughout this fiscal year as well as the prior year,” said Myers. Operating expenses for stores that have not been impacted by the initiatives were up 3.7% for the year.
Expansion - The Company’s annual goal was to build or acquire 72 to 108 stores and replace 25 existing locations. For the fiscal year, the Company opened 45 new stores and acquired 36, for a total of 81 stores. The Company also completed 27 replacements and 27 major remodels. “The Company believes it is important to grow the business through new and acquired stores while at the same time enhancing the performance of our existing store base,” said Myers. “Our prudent approach to acquisitions and our ability to execute on the integration of newly constructed and acquired stores will enable us to deliver shareholder value for many years to come.”
Fiscal 2016 goals - The corporate performance goals for fiscal 2016 are as follows:
- Increase same-store fuel gallons sold 2% with an average margin of 16.7 cents per gallon
- Increase same-store grocery and other merchandise sales 6.2% with an average margin of 32.1%
- Increase same-store prepared food and fountain sales 10.4% with an average margin of 60.8%
- Build or acquire 75 to 113 stores, replace 10 existing locations and complete 100 major remodels.
Dividend - At its June meeting, the Board of Directors increased the quarterly dividend to $0.22 per share. The dividend is payable August 17th to shareholders of record on August 3rd, 2015.
| 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, | Twelve Months Ended April 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Total revenue | $ | 1,653,858 | 1,919,566 | $ | 7,767,216 | 7,840,255 | ||||||||
| Cost of goods sold (exclusive of depreciation and amortization, shown separately below) | 1,307,315 | 1,635,946 | 6,327,431 | 6,618,239 | ||||||||||
| Gross profit | 346,543 | 283,620 | 1,439,785 | 1,222,016 | ||||||||||
| Operating expenses | 232,543 | 210,123 | 960,424 | 857,297 | ||||||||||
| Depreciation and amortization | 42,156 | 35,556 | 156,111 | 131,160 | ||||||||||
| Interest, net | 10,168 | 10,320 | 41,225 | 39,915 | ||||||||||
| Income before income taxes | 61,676 | 27,621 | 282,025 | 193,644 | ||||||||||
| Federal and state income taxes | 20,333 | 6,679 | 101,397 | 66,824 | ||||||||||
| Net income | $ | 41,343 | 20,942 | $ | 180,628 | 126,820 | ||||||||
| Net income per common share | ||||||||||||||
| Basic | $ | 1.06 | 0.54 | $ | 4.66 | 3.30 | ||||||||
| Diluted | $ | 1.05 | 0.54 | $ | 4.62 | 3.26 | ||||||||
| Basic weighted average shares | 38,868,593 | 38,499,270 | 38,743,227 | 38,457,680 | ||||||||||
| Plus effect of stock compensation | 369,888 | 424,984 | 360,606 | 410,726 | ||||||||||
| Diluted weighted average shares | 39,238,481 | 38,924,254 | 39,103,833 | 38,868,406 | ||||||||||
| Casey’s General Stores, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
|
(Dollars in thousands) |
||||||||
|
(Unaudited) |
||||||||
| April 30, 2015 | April 30, 2014 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 48,541 | $ | 121,641 | ||||
| Receivables | 22,609 | 25,841 | ||||||
| Inventories | 197,331 | 204,833 | ||||||
| Prepaid expenses | 2,025 | 1,478 | ||||||
| Deferred income taxes | 15,531 | 23,292 | ||||||
| Income tax receivable | 19,223 | 12,473 | ||||||
| Total current assets | 305,260 | 389,558 | ||||||
| Other assets, net of amortization | 18,295 | 15,947 | ||||||
| Goodwill | 127,046 | 120,406 | ||||||
| Property and equipment, net of accumulated depreciation of $1,185,246 at April 30, 2015 and $1,062,278 at April 30, 2014 | 2,019,364 | 1,778,965 | ||||||
| Total assets | $ | 2,469,965 | $ | 2,304,876 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Notes payable to bank | $ | — | $ | — | ||||
| Current maturities of long-term debt | 15,398 | 553 | ||||||
| Accounts payable | 226,577 | 250,807 | ||||||
| Accrued expenses | 122,914 | 139,529 | ||||||
| Total current liabilities | 364,889 | 390,889 | ||||||
| Long-term debt, net of current maturities | 838,245 | 853,642 | ||||||
| Deferred income taxes | 354,973 | 318,023 | ||||||
| Deferred compensation | 17,645 | 16,558 | ||||||
| Other long-term liabilities | 18,984 | 22,500 | ||||||
| Total liabilities | 1,594,736 | 1,601,612 | ||||||
| Total shareholders’ equity | 875,229 | 703,264 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,469,965 | $ | 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 regarding an immaterial correction of an error for the fiscal 2015 first quarter and fiscal 2014 are reflected in year-to-date results and comparisons to prior periods.
| Revenue and Gross Profit by Category (Amounts in thousands) | |||||||||||||||||||||||||
| Grocery & Other | Prepared Food | ||||||||||||||||||||||||
| Three months ended 4/30/2015 | Fuel | Merchandise | & Fountain | Other | Total | ||||||||||||||||||||
| Revenue | $ | 1,010,033 | $ | 436,591 | $ | 194,688 | $ | 12,546 | $ | 1,653,858 | |||||||||||||||
| Gross profit | $ | 75,228 | $ | 140,230 | $ | 118,551 | $ | 12,534 | $ | 346,543 | |||||||||||||||
| Margin | 7.4 | % | 32.1 | % | 60.9 | % | 99.9 | % | 21.0 | % | |||||||||||||||
| Fuel gallons | 444,800 | ||||||||||||||||||||||||
| Three months ended 4/30/2014 | |||||||||||||||||||||||||
| Revenue | $ | 1,366,951 | $ | 378,251 | $ | 162,977 | $ | 11,387 | $ | 1,919,566 | |||||||||||||||
| Gross profit | $ | 52,936 | $ | 121,388 | $ | 97,924 | $ | 11,372 | $ | 283,620 | |||||||||||||||
| Margin | 3.9 | % | 32.1 | % | 60.1 | % | 99.9 | % | 14.8 | % | |||||||||||||||
| Fuel gallons | 403,767 | ||||||||||||||||||||||||
| Revenue and Gross Profit by Category (Amounts in thousands) | |||||||||||||||||||||||||
| Grocery & Other | Prepared Food | ||||||||||||||||||||||||
| Year ended 4/30/2015 | Fuel | Merchandise | & Fountain | Other | Total | ||||||||||||||||||||
| Revenue | $ | 5,144,385 | $ | 1,794,822 | $ | 780,887 | $ | 47,122 | $ | 7,767,216 | |||||||||||||||
| Gross profit | $ | 351,155 | $ | 575,510 | $ | 466,056 | $ | 47,064 | $ | 1,439,785 | |||||||||||||||
| Margin | 6.8 | % | 32.1 | % | 59.7 | % | 99.9 | % | 18.5 | % | |||||||||||||||
| Fuel gallons | 1,816,596 | ||||||||||||||||||||||||
| Year ended 4/30/2014 | |||||||||||||||||||||||||
| Revenue | $ | 5,554,580 | $ | 1,583,234 | $ | 659,176 | $ | 43,265 | $ | 7,840,255 | |||||||||||||||
| Gross profit | $ | 267,872 | $ | 507,936 | $ | 402,996 | $ | 43,212 | $ | 1,222,016 | |||||||||||||||
| Margin | 4.8 | % | 32.1 | % | 61.1 | % | 99.9 | % | 15.6 | % | |||||||||||||||
| Fuel gallons | 1,665,600 | ||||||||||||||||||||||||
| Fuel Gallons | Fuel Margin | ||||||||||||||||||||||||||||||||||||||||||||||||
| Same-store Sales Growth | (Cents per gallon, excluding credit card fees) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
Fiscal |
Q1 | Q2 | Q3 | Q4 |
Fiscal |
||||||||||||||||||||||||||||||||||||||||
| F2015 | 3.0 | % | 2.3 | % | 2.2 | % | 3.5 | % | 2.6 | % | F2015 | 18.9 | ¢ | 19.5 | ¢ | 22.0 | ¢ | 16.9 | ¢ | 19.3 | ¢ | ||||||||||||||||||||||||||||
| F2014 | 3.2 | 4.2 | 3.8 | 1.8 | 3.1 | F2014 | 21.4 | 16.0 | 13.6 | 13.1 | 16.1 | ||||||||||||||||||||||||||||||||||||||
| F2013 | (0.2 | ) | (0.4 | ) | 0.6 | 1.0 | 0.1 | F2013 | 14.2 | 14.2 | 13.1 | 16.3 | 14.4 | ||||||||||||||||||||||||||||||||||||
| Grocery & Other Merchandise | Grocery & Other Merchandise | ||||||||||||||||||||||||||||||||||||||||||||||||
| Same-store Sales Growth | Margin | ||||||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
Fiscal |
Q1 | Q2 | Q3 | Q4 |
Fiscal |
||||||||||||||||||||||||||||||||||||||||
| F2015 | 7.7 | % | 6.6 | % | 7.7 | % | 9.7 | % | 7.8 | % | F2015 | 32.5 | % | 32.3 | % | 31.2 | % | 32.1 | % | 32.1 | % | ||||||||||||||||||||||||||||
| F2014 | 6.1 | 10.2 | 6.5 | 7.2 | 7.4 | F2014 | 32.7 | 32.3 | 31.1 | 32.1 | 32.1 | ||||||||||||||||||||||||||||||||||||||
| F2013 | 2.6 | (0.7 | ) | 3.2 | (0.2 | ) | 0.8 | F2013 | 33.4 | 33.4 | 31.7 | 31.7 | 32.6 | ||||||||||||||||||||||||||||||||||||
| Prepared Food & Fountain | Prepared Food & Fountain | ||||||||||||||||||||||||||||||||||||||||||||||||
| Same-store Sales Growth | Margin | ||||||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
Fiscal |
Q1 | Q2 | Q3 | Q4 |
Fiscal |
||||||||||||||||||||||||||||||||||||||||
| F2015 | 11.1 | % | 11.1 | % | 14.1 | % | 13.5 | % | 12.4 | % | F2015 | 59.9 | % | 59.3 | % | 58.7 | % | 60.9 | % | 59.7 | % | ||||||||||||||||||||||||||||
| F2014 | 11.9 | 12.3 | 10.7 | 12.1 | 11.8 | F2014 | 61.8 | 61.8 | 60.8 | 60.1 | 61.1 | ||||||||||||||||||||||||||||||||||||||
| F2013 | 10.6 | 10.1 | 11.6 | 4.4 | 8.6 | 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 June 9, 2015. 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.
