Casey General Stores : Posts 56% Increase in Second Quarter Diluted Earnings per Share
December 09, 2015 at 08:21 am EST
Share
29832016-4623-433f-97de-21f8792165d1.pdf
NEWS RELEASE FOR IMMEDIATE RELEASE
Casey's General Stores, Inc. One Convenience Blvd.
Ankeny, IA 50021
Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505
Casey's Posts 56% Increase In Second Quarter Diluted Earnings Per Share
Exhibit 99.1
Ankeny, IA, December 7, 2015 - Casey's General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $2.00 for the second quarter of fiscal 2016 ended October 31, 2015, compared to $1.28 per share for the same quarter a year ago. Year to date, diluted earnings per share were $3.57 versus $2.56 a year ago. 'Casey's experienced significant sales growth in all major areas of our business, especially inside our stores,' stated Chairman and CEO Robert J. Myers. 'Second quarter inside sales were up 11.6% while total fuel gallons sold were up 7.7%. The positive sales performance, along with a strong prepared food and fuel margin, drove gross profit dollars up 19.3% for the quarter.
Fuel - The Company's annual goal for fiscal 2016 is to increase same-store gallons sold 2% with an average margin of 16.7 cents per gallon. For the second quarter, same-store gallons sold were up 3.3% with an average margin of
24.7 cents per gallon. The Company sold 13.6 million renewable fuel credits for $4.7 million during the second quarter. 'Same-store gallons during the quarter continued to benefit from lower fuel prices,' said Myers. 'We also experienced a fuel margin well ahead of our annual goal due primarily to volatile wholesale costs during the quarter.' For the year, total gallons sold were up 7.8% to 997.4 million gallons with an average margin of 21.1 cents per gallon, while gross profit dollars rose 18.5%. Same-store gallons for the year were up 3.3%.
Grocery and Other Merchandise - Casey's annual goal for fiscal 2016 is to increase same-store sales 6.2% with an average margin of 32.1%. For the second quarter, same-store sales were up 7.5% with an average margin of 31.5%. The Company experienced double-digit sales increases across nearly all major areas of this category, resulting in a 10.6% increase in total sales in the second quarter. 'Packaged beverage and tobacco sales continued their solid performance as we expand our cooler capacity throughout our store base and customers trade up to premium brands,' stated Myers. For the six months ended October 31, 2015, same-store sales were up 7.2% with an average margin of 32.1%. Total sales for the year were up 10.3% to $1.04 billion, while gross profit dollars rose 9.0%.
Prepared Food and Fountain - The goal for fiscal 2016 is to increase same-store sales 10.4% with an average margin of 60.8%. Same-store sales for the quarter were up 9.4% with an average margin of 63.4%. The margin was up 410 basis points primarily due to lower commodity costs compared to the same time a year ago. 'Same- store sales benefited from the continued rollout of our primary store initiatives,' said Myers. 'We are optimistic about the future growth in this category especially as we complete the implementation of online ordering later this month in all of our stores. The online ordering service will give our customers the ability to conveniently order pizza, made-to-order sub sandwiches, and appetizers.' Year to date, total sales were up 14.4% to $452.8 million compared to the first six months last year, and gross profit dollars were up 20.9% to $285.2 million. Year to date, same-store sales were up 9.8%.
Operating Expenses - Year to date, operating expenses increased 8.7% to $531.6 million. For the quarter, operating expenses were up 9.5%. 'The increase was primarily due to operating 48 more stores this year compared to a year ago in the same period and the continued rollout of various operational initiatives,' said Myers. 'These increases were offset by a $1.3 million decrease in the quarter for transportation costs due to lower fuel prices.'
Expansion - The Company's annual goal is to build or acquire 75 to 113 stores, replace 10 existing locations and perform 100 major remodels. At the mid-year point, the Company had acquired 1 store and completed 25 new-store constructions. The Company has also completed 11 replacements and 24 major remodels. 'We are on pace to build approximately 50 stores and remodel 100 stores by the end of the fiscal year,' said Myers. 'We will continue to remain patient with acquisitions and remain optimistic about our long-term growth opportunities as our second distribution center becomes operational in February 2016.'
Dividend - At its December meeting, the Board of Directors declared a quarterly dividend of $0.22 per share. The dividend is payable February 15, 2016 to shareholders of record on February 1, 2016.
****
Casey's General Stores, Inc. Condensed Consolidated Statements of Income
(Dollars in thousands, except share and per share amounts) (Unaudited)
Three Months Ended October 31,
Six Months Ended October 31,
2015 2014 2015 2014
Total revenue $ 1,924,600 $ 2,150,211 $ 3,973,192 $ 4,441,397
Depreciation and amortization 41,807
37,275
81,206
73,524
Cost of goods sold (exclusive of depreciation and amortization,
shown separately below)
1,481,610
1,778,929
3,118,960
3,699,201
Gross profit
442,990
371,282
854,232
742,196
Operating expenses
267,978
244,781
531,560
489,099
Interest, net
10,009
10,360
20,093
20,866
Income before income taxes
123,196
78,866
221,373
158,707
Federal and state income taxes
44,163
28,997
80,534
58,741
Net income
$ 79,033
$ 49,869
$ 140,839
$ 99,966
Net income per common share
Diluted
$ 2.00
$ 1.28
$ 3.57
$ 2.56
Plus effect of stock compensation
423,747
352,056
419,687
348,522
Diluted weighted average shares
39,426,293
39,058,667
39,407,217
39,016,975
Basic $ 2.03
$ 1.29
$ 3.61
$ 2.59
Basic weighted average shares 39,002,546
38,706,611
38,987,530
38,668,453
The previously announced revisions to our financial results regarding an immaterial correction of an error for the fiscal 2015 first quarter are reflected in prior period year-to-date results.
Casey's General Stores, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands) (Unaudited)
October 31, 2015
April 30, 2015
Assets
Current assets
Cash and cash equivalents
$
65,580
$
48,541
Receivables
31,925
22,609
Inventories
204,277
197,331
Prepaid expenses
2,863
2,025
Deferred income taxes
17,704
15,531
Income tax receivable
-
19,223
Total current assets
322,349
305,260
Other assets, net of amortization
18,549
18,295
Goodwill
127,046
127,046
Property and equipment, net of accumulated depreciation of $1,255,658 at October 31, 2015 and $1,185,246 at April 30, 2015
2,162,869
2,019,364
Total assets
$
2,630,813
$
2,469,965
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank
$
-
$
-
Current maturities of long-term debt
15,393
15,398
Accounts payable
246,055
226,577
Accrued expenses
125,207
122,914
Income taxes payable
12,721
-
Total current liabilities
399,376
364,889
Long-term debt, net of current maturities
830,553
838,245
Deferred income taxes
353,955
354,973
Deferred compensation
17,639
17,645
Other long-term liabilities
19,882
18,984
Total liabilities
1,621,405
1,594,736
Total shareholders' equity
1,009,408
875,229
Total liabilities and shareholders' equity
$
2,630,813
$
2,469,965
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.
Margin 10.5%
31.5%
63.4%
99.9%
23.0%
Revenue and Gross Profit by Product (Amounts in thousands)
Three months ended 10/31/2015
Fuel
Grocery & Other Merchandise
Prepared Food
& Fountain
Other
Total
Revenue
$ 1,166,736
$ 516,578
$ 229,388
$ 11,898
$ 1,924,600
Gross profit
$ 122,690
$ 162,904
$ 145,513
$ 11,883
$ 442,990
Fuel gallons
496,226
Revenue
$ 1,470,768
$ 466,934
$ 201,196
$ 11,313
$ 2,150,211
Margin
6.1 %
32.3 %
59.3 %
99.9 %
17.3 %
Three months ended 10/31/2014
Gross profit $ 89,637
$ 151,025
$ 119,322
$ 11,298
$ 371,282
Fuel gallons 460,740
Revenue and Gross Profit by Product (Amounts in thousands)
Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on December 8, 2015. 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., through its subsidiaries, operates convenience stores under the names Casey's and Caseys General Store in 16 states, primarily in Iowa, Illinois, and Missouri. Its convenience stores carry a range of food items, including freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches, beverages, tobacco and nicotine products, health and beauty aids, automotive products, and other non-food items. In addition, all but four offer fuel for sale on a self-service basis. Its GoodStop brand offers fuel for sale on a self-serve basis, and a range of selection of snacks, beverages, tobacco products, and other essentials. It also operates two stores selling primarily tobacco and nicotine products, one liquor-only store, and one grocery store. The Company operates approximately 2,521 stores. The Company operates three distribution centers. It has a fleet of approximately 397 tractors used for distribution.
CASEY'S GENERAL STORES, INC. 
