Casey's General Stores' fiscal Q3 earnings fell 5.1% versus a year ago to US$14.7M as revenue climbed 7.7% to US$1.79B; Q3 sales strong across all categories despite severe winter weather, CEO says
Cindy Allen
ANKENY, Iowa
,
March 11, 2014
(press release)
–
Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $0.38 for the third quarter of fiscal 2014 ended January 31, 2014, compared to $0.40 for the same quarter a year ago. Year to date, diluted earnings per share were $2.87 compared to $2.26 a year ago. “Third quarter sales were strong throughout all of our categories despite challenging weather during the quarter,” stated Chairman and CEO Robert J. Myers. “Our same-store fuel sales are exceeding industry-wide trends and gross profit from inside the store was up over 11% for both the quarter and year.” Gasoline – The goal for fiscal 2014 is to increase same-store gallons sold 1.5% with an average margin of 15 cents per gallon. For the third quarter, same-store gallons sold were up 3.8% with an average margin of 14.4 cents per gallon. The Company sold 12.2 million renewable fuel credits for $3.4 million in the quarter. “The fuel saver program is in its second year and continues to significantly impact our fuel sales,” said Myers. “Fuel margins dipped below goal in the third quarter due to a less volatile wholesale cost environment as well as the seasonal decline we usually experience this time of year.” Total gallons sold for the year were up 9.1% with an average margin of 17.8 cents per gallon. Year to date, same-store gallons were up 3.7%. Prepared Food and Fountain – Casey’s annual goal is to increase same-store sales 9% with an average margin of 62%. For the third quarter, same-store sales were up 10.7% with an average margin of 60.8%. “In addition to the operating initiatives such as 24-hour expansion, pizza delivery, and major remodels contributing to sales, we also experienced strong prepared food sales in our unchanged group of stores,” said Myers. “Our margin benefited from a favorable product mix shift, as pizza sales increased as a percentage of the total category. This offset higher input costs of meat, cheese and supplies when compared to prior year’s third quarter.” Total sales for the category were up 16.4% year to date, and gross profit increased 15.1% to $305.1 million. Operating Expenses – Year to date, operating expenses increased 13.7% to $647.2 million. For the third quarter, operating expenses were up 13.1%. “The majority of the operating expense increase for both the quarter and year was due to new, acquired, and replaced stores, along with the various operating initiatives that have been rolled out to existing stores,” stated Myers. “Included in the results was approximately $1.6 million combined for additional snow removal and a loss from a store that was destroyed by a fire.” Expansion – The annual goal is to build or acquire 70 to 105 (4-6%) stores and replace 20 existing locations. Through the first nine months, the Company has built 26 new stores and acquired an additional 24. The Company also completed 19 replacement stores as well as 25 major remodels. “Casey’s recently announced it signed a purchase agreement to acquire 24 Stop-n-Go stores located in North Dakota and Minnesota,” said Myers. “Although this transaction is expected to close in the next fiscal year, we believe it is indicative of an active acquisition environment right now, and we are excited about the opportunities to build and buy new stores.” The Company currently has 25 new stores and 15 replacement stores under construction, as well as 32 stores under contract to acquire, including the Stop-n-Go chain. The Company also has 43 new sites and 33 replacement sites under contract to purchase. Dividend – At its March meeting, the Board of Directors declared a quarterly dividend of $0.18 per share. The dividend is payable May 15th, 2014 to shareholders of record on May 1st, 2014. (Dollars in thousands, except share and per share amounts) (Unaudited) Three months ended January 31, Nine months ended January 31, 1,662,365 Cost of goods sold (exclusive of depreciation and amortization, shown separately below) 1,510,182 1,412,679 4,973,005 4,626,338 (Dollars in thousands) (Unaudited) January 31, April 30, Property and equipment, net of accumulated depreciation of $1,029,303 at January 31, 2014, and of $952,286 at April 30, 2013 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. Three months ended 01/31/14 Gasoline Grocery & Other Prepared Food Other Total Nine months ended 1/31/14 Gasoline Grocery & Other Prepared Food Other Total Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on March 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.
Casey’s General Stores, Inc.
Condensed Consolidated
Statements of Income
2014
2013
2014
2013
Total revenue
$
1,790,055
$
$
5,920,689
$
5,442,311
Gross profit
279,873
249,686
947,684
815,973
Operating expenses
214,671
189,872
647,174
569,311
Depreciation and amortization
32,687
28,229
95,604
81,913
Interest, net
9,947
8,764
29,151
26,305
Income before income taxes
22,568
22,821
175,755
138,444
Federal and state income taxes
7,899
7,358
64,057
51,091
Net Income
$
14,669
$
15,463
$
111,698
$
87,353
Net income per common share
Basic
$
0.38
$
0.40
$
2.91
$
2.28
Diluted
$
0.38
$
0.40
$
2.87
$
2.26
Basic weighted average shares
38,482,970
38,317,140
38,443,816
38,282,196
Plus effect of stock compensation
444,061
304,948
418,025
331,934
Diluted weighted average shares
38,927,031
38,622,088
38,861,841
38,614,130
Casey’s General Stores, Inc.
Condensed Consolidated Balance Sheets
2014
2013
Assets
Current assets
Cash and cash equivalents
$
102,160
$
41,271
Receivables
25,067
20,900
Inventories
190,839
189,514
Prepaid expenses
2,092
1,396
Deferred income taxes
12,096
9,916
Income tax receivable
13,403
9,820
Total current assets
345,657
272,817
Other assets, net of amortization
15,453
14,485
Goodwill
120,081
114,791
1,745,011
1,581,925
Total assets
$
2,226,202
$
1,984,018
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank
$
--------
$
59,100
Current maturities of long-term debt
8,177
15,810
Accounts payable
201,812
232,913
Accrued expenses
109,568
89,925
Total current liabilities
319,557
397,748
Long-term debt, net of current maturities
853,739
653,081
Deferred income taxes
309,918
293,708
Deferred compensation
16,440
15,787
Other long-term liabilities
24,795
21,399
Total liabilities
1,524,449
1,381,723
Total shareholders' equity
701,753
602,295
Total liabilities and shareholders' equity
$
2,226,202
$
1,984,018
Sales and Gross Profit by Product (Amounts in thousands)
Merchandise
& Fountain
Sales
$
1,255,774
$
364,846
$
158,200
$
11,235
$
1,790,055
Gross profit
$
59,075
$
113,429
$
96,147
$
11,222
$
279,873
Margin
4.7
%
31.1
%
60.8
%
99.9
%
15.6
%
Gasoline gallons
411,389
Three months ended 01/31/13
Sales
$
1,185,640
$
329,657
$
137,033
$
10,035
$
1,662,365
Gross profit
$
52,002
$
104,660
$
83,011
$
10,013
$
249,686
Margin
4.4
%
31.7
%
60.6
%
99.8
%
15.0
%
Gasoline gallons
376,809
Sales and Gross Profit by Product (Amounts in thousands)
Merchandise
& Fountain
Sales
$
4,187,629
$
1,204,983
$
496,199
$
31,878
$
5,920,689
Gross profit
$
224,224
$
386,548
$
305,072
$
31,840
$
947,684
Margin
5.4
%
32.1
%
61.5
%
99.9
%
16.0
%
Gasoline gallons
1,261,833
Nine months ended 1/31/13
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
Gasoline Gallons
Gasoline Margin
Same-store Sales Growth
(Cents per gallon, excluding credit card fees)
F2014
3.2
%
4.2
%
3.8
%
3.7
%
F2014
22.1¢
16.7¢
14.4¢
17.8¢
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 Merchandise
Grocery & Other Merchandise
Same-store Sales Growth
Margin
F2014
6.1
%
10.2
%
6.5
%
7.5
%
F2014
32.7
%
32.3
%
31.1
%
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 & Fountain
Prepared Food & Fountain
Same-store Sales Growth
Margin
F2014
11.9
%
12.3
%
10.7
%
11.7
%
F2014
61.8
%
61.8
%
60.8
%
61.5
%
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
Bill Walljasper, 515-965-6505
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