News Column

Casey’s Posts Strong Revenue Growth for Fiscal 2014

June 9, 2014

ANKENY, Iowa--(BUSINESS WIRE)-- Casey’s General Stores, Inc. (Nasdaq: 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.

     
    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 liabilities1,573,596   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)
     
     

     

      Grocery & Other   Prepared Food  

     

     

     

    Three months ended 04/30/14

    Fuel

    Merchandise

    & 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
    Margin4.1%32.1%60.1%99.9%14.9%
    Fuel gallons403,767
     
    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)
     

     

    Grocery & Other Prepared Food

     

     

    Year ended 04/30/14

    Fuel

    Merchandise

    & 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
    Margin5.0%32.1%61.1%99.9%15.7%
    Fuel gallons1,665,600
     
    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 GallonsFuel Margin
    Same-store Sales Growth (Cents per gallon, excluding credit card fees)
                     

    Q1

    Q2

    Q3

    Q4

    FY

    Q1

    Q2

    Q3

    Q4

    FY

    F2014

    3.2

    %

    4.2

    %

    3.8

    %

    1.8



    3.1

    %

    F2014

    22.1

    ˘

    16.7

    ˘

    14.4

    ˘

    13.8

    ˘

    16.8

    ˘

    F2013 -0.2 -0.4 0.6 1.0 0.1 F2013 14.9 14.9 13.8 17.0 15.2
    F2012   -2.7     -2.9     -2.4     2.5   -1.5   F2012   17.2     16.7     13.6     13.7     15.3  
       
    Grocery & Other MerchandiseGrocery & Other Merchandise
    Same-store Sales GrowthMargin
     

    Q1

    Q2

    Q3

    Q4

    FY

    Q1

    Q2

    Q3

    Q4

    FY

    F20146.1%10.2%6.5%7.2



    7.4%F201432.7%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
    F2012   6.2     5.8     6.3     8.5   6.7   F2012   32.5     32.5     31.8     33.0     32.5  
       
    Prepared Food & FountainPrepared Food & Fountain
    Same-store Sales GrowthMargin
     

    Q1

    Q2

    Q3

    Q4

    FY

    Q1

    Q2

    Q3

    Q4

    FY

    F201411.9%12.3%10.7%12.1



    11.8%F201461.8%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
    F2012   15.3     14.2     12.6     16.8   14.3   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.



    Casey’s General Stores, Inc.

    Bill Walljasper, 515-965-6505

    Source: Casey’s General Stores, Inc.


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