Casey’s General Stores, Inc. (“Casey’s” or the “Company”)
(Nasdaq symbol CASY) today reported diluted earnings per share of
$2.31 for the first quarter of fiscal year 2020 ended July 31,
2019, compared to $1.90 per share for the same quarter a year ago,
representing 22% growth compared to last year. "Quarterly results
were positively impacted by our fuel price optimization initiative,
store growth, and a continued focus on controlling operating
expenses," said Darren Rebelez, President and Chief Executive
Officer. "As we look ahead, we remain optimistic our long-term
strategy, including the value creation plan initiatives, will
generate additional shareholder value."
Fuel - For the quarter, average fuel margin was 24.4
cents per gallon, while same-store gallons sold were down 2.0%.
"The combination of our price optimization efforts along with a
favorable fuel margin environment allowed us to grow gross profit
dollars by over 22% for the quarter," said Rebelez. "We are excited
about the advancements made with the fuel price optimization tool.
We have gained significant agility to capture additional fuel
margin while maintaining a competitive pricing structure." Total
gallons sold for the quarter were up 2.9% to 619.1 million gallons
while gross profit dollars increased to $151.0 million.
Grocery and Other Merchandise - For the quarter,
same-store sales were up 3.2% with average margin of 31.3%. Average
margin was adversely impacted by a $6.6 million out-of-period
inventory adjustment, which, if excluded, would have resulted in
average margin of 32.3%. "We are encouraged by the momentum in this
category and are optimistic about the expected impact of our
current roll out of the inside store price optimization tool," said
Rebelez. For the first quarter, total grocery and other merchandise
revenue increased 6.7% to $687.9 million, and gross profit dollars
increased to $215.5 million.
Prepared Food and Fountain - Same-store sales for the
quarter were up 1.6% with average margin of 62.2%. "As we continue
our digital transformation journey, we are highly focused on the
pricing and promotional capabilities we are adding," said Rebelez.
"We believe the previously launched e-commerce website and new
mobile app, when combined with our future loyalty program, will
significantly enhance the overall guest experience." Total prepared
food and fountain revenue increased 5.3% to $295.9 million in the
first quarter while gross profit dollars grew to $184.0
million.
Operating Expenses - For the first quarter, total
operating expenses increased 5.7% to $379.8 million. The increase
in total operating expenses was primarily attributable to operating
76 more stores than the same quarter in the prior year. Same-store
operating expenses excluding credit card fees were up 2.5% for the
quarter. "We continue to emphasize at all levels of the company the
importance of maintaining strong discipline over operating
expenses," noted Rebelez. "We will remain focused on identifying
additional opportunities to improve expense management throughout
the fiscal year."
Depreciation for the quarter was up 1.6%, which was
significantly lower than our annual guidance, due to an adjustment
related to the useful lives of our underground storage tanks.
Without the adjustment, depreciation would have been up 8.6%.
Expansion - The following table represents the roll
forward of store growth through the first quarter of fiscal
2020:
Store Count
Stores at 4/30/19
2,146
New Store Construction
15
Acquisitions
4
Acquisitions not opened
—
Prior Acquisitions opened
2
Closed
(6)
Stores at 7/31/19
2,161
The Company has 11 acquisition stores under agreement to
purchase and a new store pipeline of 107 sites, including 35 under
construction as of July 31, 2019. "Development plans are underway
for a third distribution center, which is scheduled to break ground
in the southwest part of our territory later this year," said
Rebelez. "Upon completion, this will provide immediate cost savings
and support our future expansion strategy."
Share Repurchase Program- The Company has $300 million
remaining on its authorization from March 2018. There were no
repurchases made against that authorization in the first
quarter.
Dividend - At its September meeting, the Board of
Directors declared a quarterly dividend of $0.32 per share. The
dividend is payable November 15, 2019 to shareholders of record on
November 1, 2019.
Fiscal 2020 Guidance - No changes have been made to the
current fiscal 2020 guidance:
Same-store Sales
Margin
Fuel (Gallons and CPG)
(.5%) - 1.0%
20.5 - 22.5
Grocery and Other Merchandise
2.5 - 4.0%
32.0 - 33.0%
Prepared Food and Fountain
3.0 - 6.0%
61.0 - 63.0%
Operating Expenses
7.0 - 9.0%
Depreciation and Amortization
11.0 - 13.0%
New Store Construction
60 stores
Acquisitions
25 stores
Casey’s General Stores,
Inc.
Condensed Consolidated
Statements of Income
(Dollars in thousands, except
share and per share amounts) (Unaudited)
Three Months Ended
July 31,
2019
2018
Total revenue
$
2,626,629
$
2,588,432
Cost of goods sold (exclusive of
depreciation and amortization, shown separately below)
2,060,943
2,066,664
Operating expenses
379,841
359,392
Depreciation and amortization
59,808
58,840
Interest, net
13,721
14,406
Income before income taxes
112,316
89,130
Federal and state income taxes
26,501
18,906
Net income
$
85,815
$
70,224
Net income per common share
Basic
$
2.33
$
1.92
Diluted
$
2.31
$
1.90
Basic weighted average shares
36,864,070
36,669,021
Plus effect of stock compensation
221,852
311,387
Diluted weighted average shares
37,085,922
36,980,408
Casey’s General Stores,
Inc.
Condensed Consolidated Balance
Sheets
(Dollars in thousands)
(Unaudited)
July 31,
April 30,
2019
2019
Assets
Current assets
Cash and cash equivalents
$
96,733
$
63,296
Receivables
39,554
37,856
Inventories
273,755
273,040
Prepaid expenses
12,969
7,493
Income tax receivable
15,059
28,895
Total current assets
438,070
410,580
Other assets, net of amortization
43,146
41,154
Goodwill
157,223
157,223
Property and equipment, net of accumulated
depreciation of $1,878,705 at July 31, 2019 and $1,826,936 at April
30, 2019
3,198,307
3,122,419
Total assets
$
3,836,746
$
3,731,376
Liabilities and Shareholders’
Equity
Current liabilities
Lines of credit
$
50,000
$
75,000
Current maturities of long-term debt
18,846
17,205
Accounts payable
347,181
335,240
Accrued expenses
159,001
163,487
Total current liabilities
575,028
590,932
Long-term debt, net of current
maturities
1,303,429
1,283,275
Deferred income taxes
402,840
385,788
Deferred compensation
16,027
15,881
Insurance accruals, net of current
portion
21,531
22,663
Other long-term liabilities
28,677
24,068
Total liabilities
2,347,532
2,322,607
Total shareholders’ equity
1,489,214
1,408,769
Total liabilities and shareholders’
equity
$
3,836,746
$
3,731,376
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, including our ability to execute our value creation
plan or to realize benefits therefrom. 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.
Summary by Category
(Amounts in thousands)
Three months ended 7/31/2019
Fuel
Grocery & Other
Merchandise
Prepared Food
& Fountain
Other
Total
Revenue
$
1,627,568
$
687,918
$
295,877
$
15,266
$
2,626,629
Revenue less cost of goods sold
(exclusive of depreciation and amortization)
$
150,989
$
215,453
$
184,012
$
15,232
$
565,686
9.3
%
31.3
%
62.2
%
99.8
%
21.5
%
Fuel gallons
619,084
Three months ended 7/31/2018
Revenue
$
1,647,417
$
644,800
$
281,003
$
15,212
$
2,588,432
Revenue less cost of goods sold (exclusive
of depreciation and amortization)
$
123,476
$
208,925
$
174,184
$
15,183
$
521,768
7.5
%
32.4
%
62.0
%
99.8
%
20.2
%
Fuel gallons
601,795
Fuel Gallons
Fuel Margin
Same-store Sales
(Cents per gallon, excluding
credit card fees)
Q1
Q2
Q3
Q4
Fiscal
Year
Q1
Q2
Q3
Q4
Fiscal
Year
F2020
(2.0
)%
F2020
24.4
¢
F2019
0.5
(1.1
)%
(3.4
)%
(2.8
)%
(1.7
)%
F2019
20.5
20.0
¢
22.1
¢
18.6
¢
20.3
¢
F2018
1.7
1.9
3.8
2.0
2.3
F2018
19.3
19.7
18.6
16.3
18.5
Grocery & Other
Merchandise
Grocery & Other
Merchandise
Same-store Sales
Margin
Q1
Q2
Q3
Q4
Fiscal
Year
Q1
Q2
Q3
Q4
Fiscal
Year
F2020
3.2
%
F2020
31.3
%
F2019
3.2
2.7
%
3.4
%
5.7
%
3.6
%
F2019
32.4
32.4
%
31.9
%
31.5
%
32.1
%
F2018
3.1
2.5
2.5
(0.4
)
1.9
F2018
31.9
32.0
31.9
31.2
31.8
Prepared Food &
Fountain
Prepared Food &
Fountain
Same-store Sales
Margin
Q1
Q2
Q3
Q4
Fiscal
Year
Q1
Q2
Q3
Q4
Fiscal
Year
F2020
1.6
%
F2020
62.2
%
F2019
1.7
2.2
%
1.5
%
2.0
%
1.9
%
F2019
62.0
62.4
%
62.3
%
62.2
%
62.2
%
F2018
3.7
2.1
1.7
(1.3
)
1.7
F2018
62.5
61.3
60.5
59.7
61.0
Corporate information is available at this website: https://www.caseys.com. Earnings will be reported
during a conference call on September 10, 2019. The call will be
broadcast live over the Internet at 9:30 a.m. CDT. To access the
call, go to the Events and Presentations section of our website at
https://investor.caseys.com/events-and-presentations/default.aspx.
No access code is required. A webcast replay of the call will
remain available in an archived format on the Events and
Presentations section of our website at
https://investor.caseys.com/events-and-presentations/default.aspx
for one year after the call.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190909005914/en/
Bill Walljasper (515) 965-6505
Caseys General Stores (NASDAQ:CASY)
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