QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | Emerging growth company |
Class | Outstanding at February 27, 2023 | |||||||
Common stock, no par value per share |
Page | |||||||||||
PART I | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2 | |||||||||||
Item 6. | |||||||||||
January 31, 2023 | April 30, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables | |||||||||||
Inventories | |||||||||||
Prepaid expenses | |||||||||||
Income taxes receivable | |||||||||||
Total current assets | |||||||||||
Other assets, net of amortization | |||||||||||
Goodwill | |||||||||||
Property and equipment, net of accumulated depreciation of $ | |||||||||||
Total assets | $ | $ |
Liabilities and Shareholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Current maturities of long-term debt and finance lease obligations | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Total current liabilities | |||||||||||
Long-term debt and finance lease obligations, net of current maturities | |||||||||||
Deferred income taxes | |||||||||||
Deferred compensation | |||||||||||
Insurance accruals, net of current portion | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, no par value | |||||||||||
Common stock, no par value | |||||||||||
Retained earnings | |||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Interest, net | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Federal and state income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Plus effect of stock compensation | |||||||||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||||||||
Dividends declared per share | $ | $ | $ | $ |
Shares Outstanding | Common Stock | Retained Earnings | Shareholders' Equity | ||||||||||||||||||||
Balance at April 30, 2022 | $ | $ | $ | ||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Dividends declared ( | — | — | ( | ( | |||||||||||||||||||
Share-based compensation (net of tax withholding on employee share-based awards) | — | ||||||||||||||||||||||
Balance at July 31, 2022 | |||||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Dividends declared ( | — | — | ( | ( | |||||||||||||||||||
Share-based compensation (net of tax withholding on employee share-based awards) | — | ||||||||||||||||||||||
Balance at October 31, 2022 | |||||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Dividends declared ( | — | — | ( | ( | |||||||||||||||||||
Share-based compensation (net of tax withholding on employee share-based awards) | — | ||||||||||||||||||||||
Balance at January 31, 2023 | $ | $ | $ | ||||||||||||||||||||
Shares Outstanding | Common Stock | Retained Earnings | Shareholders' Equity | ||||||||||||||||||||
Balance at April 30, 2021 | $ | $ | $ | ||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Dividends declared ( | — | — | ( | ( | |||||||||||||||||||
Exercise of stock options | — | ||||||||||||||||||||||
Share-based compensation (net of tax withholding on employee share-based awards) | ( | — | ( | ||||||||||||||||||||
Balance at July 31, 2021 | |||||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Dividends declared ( | — | — | ( | ( | |||||||||||||||||||
Share-based compensation (net of tax withholding on employee share-based awards) | — | ||||||||||||||||||||||
Balance at October 31, 2021 | |||||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Dividends declared ( | — | — | ( | ( | |||||||||||||||||||
Share-based compensation (net of tax withholding on employee share-based awards) | — | ||||||||||||||||||||||
Balance at January 31, 2022 | $ | $ | $ |
Nine months ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of debt issuance costs | |||||||||||
Share-based compensation | |||||||||||
Loss (gain) on disposal of assets and impairment charges | ( | ||||||||||
Deferred income taxes | |||||||||||
Changes in assets and liabilities: | |||||||||||
Receivables | ( | ( | |||||||||
Inventories | ( | ||||||||||
Prepaid expenses | ( | ( | |||||||||
Accounts payable | ( | ( | |||||||||
Accrued expenses | |||||||||||
Income taxes | |||||||||||
Other, net | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | ( | ( | |||||||||
Payments for acquisition of businesses, net of cash acquired | ( | ( | |||||||||
Proceeds from sales of assets | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from long-term debt | |||||||||||
Payments of long-term debt | ( | ( | |||||||||
Payments of debt issuance costs | ( | ||||||||||
Proceeds from exercise of stock options | |||||||||||
Payments of cash dividends | ( | ( | |||||||||
Tax withholdings on employee share-based awards | ( | ( | |||||||||
Net cash (used in) provided by financing activities | ( |
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of the period | |||||||||||
Cash and cash equivalents at end of the period | $ | $ |
Nine months ended January 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash paid during the period for: | |||||||||||
Interest, net of amount capitalized | $ | $ | |||||||||
Income taxes, net | |||||||||||
Noncash investing and financing activities: | |||||||||||
Purchased property and equipment in accounts payable | |||||||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | |||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | |||||||||||
Unvested at April 30, 2022 | |||||
Granted | |||||
Vested | ( | ||||
Forfeited | ( | ||||
Performance Award Adjustments | |||||
Unvested at January 31, 2023 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations (Dollars in Thousands). |
Store Count | |||||
Total stores at April 30, 2022 | 2,452 | ||||
New store construction | 16 | ||||
Acquisitions | 12 | ||||
Acquisitions not opened | (4) | ||||
Prior acquisitions opened | 2 | ||||
Closed | (6) | ||||
Total stores at January 31, 2023 | 2,472 |
Three Months Ended January 31, 2023 | Fuel | Grocery & General Merchandise | Prepared Food & Dispensed Beverage | Other | Total | ||||||||||||||||||||||||
Revenue | $ | 2,157,233 | $ | 795,699 | $ | 313,524 | $ | 66,099 | $ | 3,332,555 | |||||||||||||||||||
Revenue less cost of goods sold (excluding depreciation and amortization) | $ | 262,573 | $ | 270,925 | $ | 179,647 | $ | 24,317 | $ | 737,462 | |||||||||||||||||||
12.2 | % | 34.0 | % | 57.3 | % | 36.8 | % | 22.1 | % | ||||||||||||||||||||
Fuel gallons | 644,940 | ||||||||||||||||||||||||||||
Three Months Ended January 31, 2022 | Fuel | Grocery & General Merchandise | Prepared Food & Dispensed Beverage | Other | Total | ||||||||||||||||||||||||
Revenue | $ | 1,951,422 | $ | 732,514 | $ | 292,884 | $ | 71,897 | $ | 3,048,717 | |||||||||||||||||||
Revenue less cost of goods sold (excluding depreciation and amortization) | $ | 237,873 | $ | 234,064 | $ | 169,773 | $ | 22,785 | $ | 664,495 | |||||||||||||||||||
12.2 | % | 32.0 | % | 58.0 | % | 31.7 | % | 21.8 | % | ||||||||||||||||||||
Fuel gallons | 621,770 |
Nine Months Ended January 31, 2023 | Fuel | Grocery & General Merchandise | Prepared Food & Dispensed Beverage | Other | Total | ||||||||||||||||||||||||
Revenue | $ | 7,889,495 | 2,635,939 | 1,008,338 | 232,002 | 11,765,774 | |||||||||||||||||||||||
Revenue less cost of goods sold (excluding depreciation and amortization) | 855,167 | 889,482 | 569,825 | 70,180 | 2,384,654 | ||||||||||||||||||||||||
10.8 | % | 33.7 | % | 56.5 | % | 30.2 | % | 20.3 | % | ||||||||||||||||||||
Fuel gallons | 2,036,450 | ||||||||||||||||||||||||||||
Nine Months Ended January 31, 2022 | Fuel | Grocery & General Merchandise | Prepared Food & Dispensed Beverage | Other | Total | ||||||||||||||||||||||||
Revenue | $ | 5,967,408 | $ | 2,397,483 | $ | 910,828 | $ | 217,933 | $ | 9,493,652 | |||||||||||||||||||
Revenue less cost of goods sold (excluding depreciation and amortization) | $ | 704,231 | $ | 785,412 | $ | 545,377 | $ | 70,952 | $ | 2,105,972 | |||||||||||||||||||
11.8 | % | 32.8 | % | 59.9 | % | 32.6 | % | 22.2 | % | ||||||||||||||||||||
Fuel gallons | 1,958,061 |
Three months ended | Nine months ended | ||||||||||||||||||||||
January 31, 2023 | January 31, 2022 | January 31, 2023 | January 31, 2022 | ||||||||||||||||||||
Net income | $ | 100,112 | $ | 64,024 | $ | 390,599 | $ | 280,014 | |||||||||||||||
Interest, net | 11,697 | 14,431 | 39,015 | 41,681 | |||||||||||||||||||
Federal and state income taxes | 31,830 | 19,514 | 124,327 | 88,033 | |||||||||||||||||||
Depreciation and amortization | 78,088 | 75,529 | 232,500 | 225,675 | |||||||||||||||||||
EBITDA | $ | 221,727 | $ | 173,498 | $ | 786,441 | $ | 635,403 | |||||||||||||||
Loss (gain) on disposal of assets and impairment charges | 1,186 | 838 | 5,977 | (869) | |||||||||||||||||||
Adjusted EBITDA | $ | 222,913 | $ | 174,336 | $ | 792,418 | $ | 634,534 |
Finance lease liabilities | $ | 78,222 | |||
3.67% Senior notes (Series A) due in 7 installments beginning June 17, 2022, and ending June 15, 2028 | 135,000 | ||||
3.75% Senior notes (Series B) due in 7 installments beginning December 17, 2022 and ending December 18, 2028 | 45,000 | ||||
3.65% Senior notes (Series C) due in 7 installments beginning May 2, 2025 and ending May 2, 2031 | 50,000 | ||||
3.72% Senior notes (Series D) due in 7 installments beginning October 28, 2025 and ending October 28, 2031 | 50,000 | ||||
3.51% Senior notes (Series E) due June 13, 2025 | 150,000 | ||||
3.77% Senior notes (Series F) due August 22, 2028 | 250,000 | ||||
2.85% Senior notes (Series G) due August 7, 2030 | 325,000 | ||||
2.96% Senior notes (Series H) due August 6, 2032 | 325,000 | ||||
Variable rate term loan facility, due January 6, 2026 | 265,625 | ||||
Less debt issuance costs | (1,620) | ||||
1,672,227 | |||||
Less current maturities | (37,727) | ||||
$ | 1,634,500 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
Third Quarter | |||||||||||||||||||||||
November 1 - November 30, 2022 | — | $ | — | — | $ | 400,000,000 | |||||||||||||||||
December 1 - December 31, 2022 | — | — | — | 400,000,000 | |||||||||||||||||||
January 1 - January 31, 2023 | — | — | — | 400,000,000 | |||||||||||||||||||
Total | — | $ | — | — | $ | 400,000,000 | |||||||||||||||||
Exhibit No. | Description | ||||
3.1 | |||||
3.2 | |||||
31.1* | |||||
31.2* | |||||
32.1* | |||||
32.2* | |||||
101.INS | XBRL Instance Document | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101. DEF | XBRL Taxonomy Extension Definition Linkbase Document |
CASEY’S GENERAL STORES, INC. | ||||||||
Date: March 7, 2023 | By: | /s/ Stephen P. Bramlage Jr. | ||||||
Stephen P. Bramlage Jr. | ||||||||
Its: | Chief Financial Officer | |||||||
(Authorized Officer and Principal Financial and Accounting Officer) |
Dated: March 7, 2023 | /s/ Darren M. Rebelez | |||||||
Darren M. Rebelez | ||||||||
President and Chief Executive Officer |
Dated: March 7, 2023 | /s/ Stephen P. Bramlage Jr. | |||||||
Stephen P. Bramlage Jr. | ||||||||
Chief Financial Officer |
Dated: March 7, 2023 | /s/ Darren M. Rebelez | |||||||
Darren M. Rebelez | ||||||||
President and Chief Executive Officer |
Dated: March 7, 2023 | /s/ Stephen P. Bramlage Jr. | |||||||
Stephen P. Bramlage Jr. | ||||||||
Chief Financial Officer |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jan. 31, 2023 |
Apr. 30, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 2,597,268 | $ 2,425,709 |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2023 |
Jan. 31, 2022 |
Jan. 31, 2023 |
Jan. 31, 2022 |
|
Income Statement [Abstract] | ||||
Total revenue | $ 3,332,555 | $ 3,048,717 | $ 11,765,774 | $ 9,493,652 |
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) | 2,595,093 | 2,384,222 | 9,381,120 | 7,387,680 |
Operating expenses | 515,735 | 490,997 | 1,598,213 | 1,470,569 |
Depreciation and amortization | 78,088 | 75,529 | 232,500 | 225,675 |
Interest, net | 11,697 | 14,431 | 39,015 | 41,681 |
Income before income taxes | 131,942 | 83,538 | 514,926 | 368,047 |
Federal and state income taxes | 31,830 | 19,514 | 124,327 | 88,033 |
Net income | $ 100,112 | $ 64,024 | $ 390,599 | $ 280,014 |
Net income per common share | ||||
Basic (in dollars per share) | $ 2.69 | $ 1.72 | $ 10.48 | $ 7.54 |
Diluted (in dollars per share) | $ 2.67 | $ 1.71 | $ 10.42 | $ 7.50 |
Basic weighted average shares outstanding (in shares) | 37,281,103 | 37,169,213 | 37,261,049 | 37,154,883 |
Plus effect of stock compensation (in shares) | 283,448 | 197,370 | 240,459 | 197,370 |
Diluted weighted average shares outstanding (in shares) | 37,564,551 | 37,366,583 | 37,501,508 | 37,352,253 |
Dividends declared per share (in dollars per share) | $ 0.38 | $ 0.35 | $ 1.14 | $ 1.04 |
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jan. 31, 2023 |
Oct. 31, 2022 |
Jul. 31, 2022 |
Jan. 31, 2022 |
Oct. 31, 2021 |
Jul. 31, 2021 |
|
Retained Earnings | ||||||
Payment of dividends per share (in Dollars per share) | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.35 | $ 0.35 | $ 0.34 |
Presentation of Financial Statements |
9 Months Ended |
---|---|
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation of Financial Statements | Presentation of Financial Statements Casey’s General Stores, Inc. and its subsidiaries (hereinafter referred to as the "Company" or "Casey’s") operate 2,472 convenience stores in 16 states, primarily in the Midwest. Many of the stores are located in smaller communities, often with populations of less than 5,000. The accompanying condensed consolidated financial statements include the accounts and transactions of Casey's General Stores, Inc. and its direct and indirect wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.
|
Basis of Presentation |
9 Months Ended |
---|---|
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position as of January 31, 2023 and April 30, 2022, the results of operations for the three and nine months ended January 31, 2023 and 2022, and shareholders' equity and cash flows for the nine months ended January 31, 2023 and 2022. Although management believes that the disclosures are adequate to make the information presented not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s most recent audited financial statements and notes thereto. Additionally, see the Form 10-K for the year ended April 30, 2022 for our consideration of new accounting pronouncements.
|
Revenue and Cost of Goods Sold |
9 Months Ended |
---|---|
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Cost of Goods Sold | Revenue and Cost of Goods Sold The Company recognizes retail sales of fuel, grocery and general merchandise, prepared food and dispensed beverage and other revenue at the time of the sale to the guest. Sales taxes collected from guests and remitted to the government are recorded on a net basis in the condensed consolidated statements of income. A portion of revenue from sales that include a redeemable digital box top coupon or points under our Casey’s Rewards program is deferred. The deferred portion of the sale represents the value of the estimated future redemption of the digital box top coupon or points. The amounts related to digital box top coupons and points are deferred until their redemption or expiration. Revenue related to the digital box top coupons and points issued is expected to be recognized less than one year from the original sale to the guest. As of January 31, 2023 and April 30, 2022, the Company recognized a contract liability of $52,558 and $41,577, respectively, related to the outstanding digital box top coupons and Casey's Rewards points, which is included in accrued expenses on the condensed consolidated balance sheets. Gift card related revenue is recognized as the gift cards are used by the guest. Gift card breakage revenue is recognized based on the estimated gift card breakage rate over the pro rata usage of the card. As of January 31, 2023 and April 30, 2022, the Company recognized a liability of $19,662 and $15,509, respectively, related to outstanding gift cards, which is included in accrued expenses on the condensed consolidated balance sheets. The Company often receives vendor allowances on the basis of quantitative contract terms that vary by product and vendor or directly on the basis of purchases made. Vendor allowances include rebates and other funds received from vendors to promote their products. These amounts are recognized in the period earned based on the applicable rebate agreement. Reimbursements of an operating expense (e.g., advertising) are recorded as reductions of the related expense. Renewable identification numbers ("RINs") are assigned to gallons of renewable fuels produced and are used to track compliance with the renewable fuel standard. At times, we purchase fuel components (ethanol, gasoline, biodiesel or diesel) and blend those components into a finished product in a fuel truck. This process enables the Company to take title to the RIN assigned to each gallon of ethanol or biodiesel produced. RINs are recorded as a reduction in cost of goods sold in the period when the Company transfers the RIN. The Company does not record inventories on the balance sheet related to RINs, as they are acquired at no cost to the Company. The Company includes in cost of goods sold the costs incurred to acquire fuel and merchandise, including excise taxes, less vendor allowances, vendor rebates, and RINs. Warehousing costs are recorded within operating expenses on the condensed consolidated statements of income.
|
Long-term Debt and Finance Lease Obligations, Lines of Credit and Fair Value Disclosure |
9 Months Ended |
---|---|
Jan. 31, 2023 | |
Long-Term Debt and Fair Value Disclosure [Abstract] | |
Long-term Debt and Finance Lease Obligations, Lines of Credit and Fair Value Disclosure | Long-Term Debt and Finance Lease Obligations, Lines of Credit and Fair Value Disclosure The fair value of the Company’s long-term debt (including current maturities) is estimated based on the current rates offered to the Company for debt of the same or similar issuances. The fair value of the Company’s long-term debt was approximately $1,460,000 and $1,508,000 at January 31, 2023 and April 30, 2022, respectively. The fair value calculated excludes finance lease obligations of $78,222 and $74,234 outstanding at January 31, 2023 and April 30, 2022, respectively, which are grouped with long-term debt on the condensed consolidated balance sheets. Revolving Facility The Company has a committed unsecured revolving credit facility in the aggregate principal amount of $450,000 (the "Revolving Facility"). The $450,000 availability under the Revolving Facility is encumbered by letters of credits totaling $11,940. The maturity date for the Revolving Facility is January 11, 2024. Amounts borrowed under the Revolving Facility bear interest at variable rates based upon, at the Company’s option, either: (a) the LIBO Rate adjusted for statutory reserve requirements (but no less than 0.50%), plus a margin ranging from 1.05% to 1.85%; or (b) an alternate base rate, which is the higher of (i) the prime rate announced by the Administrative Agent, (ii) the federal funds rate plus 1/2 of 1.00%, and (iii) the one-month LIBO Rate plus 1.00%, plus a margin ranging from 0.05% to 0.85%. The Revolving Facility also carries a facility fee of 0.20% to 0.40% per annum. The applicable margins and facility fee are dependent upon the Company’s Consolidated Leverage Ratio, as calculated as set forth in the Revolving Facility's underlying credit agreement. The Company had $0 outstanding under the Revolving Facility at January 31, 2023 and April 30, 2022. Bank Line The Company has an additional unsecured bank line of credit (the "Bank Line") with availability up to $25,000. The $25,000 availability under the Bank Line is encumbered by letters of credits totaling $432. The Bank Line bears interest at a variable rate subject to change from time to time based on changes in an independent index referred to in the Bank Line as the Federal Funds Offered Rate (the “Index”). There was $0 outstanding under the Bank Line at January 31, 2023 and April 30, 2022. The Bank Line is due upon demand
|
Compensation Related Costs and Share Based Payments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Related Costs and Share Based Payments | Compensation Related Costs and Share Based Payments The 2018 Stock Incentive Plan (the “2018 Plan”), was approved by the Company's shareholders on September 5, 2018. Awards under the 2018 Plan may take the form of stock options, stock appreciation rights, restricted stock, restricted stock units and other equity-based and equity-related awards. Each share issued pursuant to a stock option and each share with respect to which a stock-settled stock appreciation right is exercised (regardless of the number of shares actually delivered) is counted as one share against the maximum limit under the 2018 Plan, and each share issued pursuant to an award of restricted stock or restricted stock units is counted as two shares against the maximum limit. Restricted stock is transferred immediately upon grant (and may be subject to a holding period), whereas restricted stock units have a vesting period that must expire, and in some cases performance or market conditions that must be satisfied before the stock is transferred. At January 31, 2023, there were 1,638,934 shares available for grant under the 2018 Plan. We account for share-based compensation by estimating the fair value of time-based and performance-based restricted stock unit awards using the closing price of a share of our common stock on the date of grant. For market-based awards we use a Monte Carlo approach to estimate the value of the awards, which simulates the prices of the Company’s and each member of the performance peer groups' common stock price at the end of the relevant performance period, taking into account volatility and the specifics surrounding each total shareholder return metric under the relevant plan. We recognize these amounts as an operating expense in our condensed consolidated statements of income ratably over the requisite service period using the straight-line method, as adjusted for certain retirement provisions, and updated estimates of performance-based awards. All awards have been granted at no cost to the grantee and/or non-employee member of the Board. Information concerning the unvested restricted stock units under the 2018 Plan is presented in the following table:
The above unvested awards reflect (a) long-term incentive compensation program grants for fiscal 2021 through 2023, which include a mix of time-based restricted stock units and performance-based restricted stock units (subject to three-year cumulative net income before net interest expense, income taxes, depreciation and amortization ("EBITDA") and three-year average return on invested capital ("ROIC"), with further potential adjustments for three-year relative total shareholder return ("TSR")) (b) certain “make-whole” and sign-on grants, which include a mix of time-based restricted stock units and performance-based restricted stock units subject to EBITDA and ROIC, with further potential adjustments for TSR, (c) special performance grants which include time-based restricted stock units, and (d) non-employee director equity awards, which include time-based restricted stock units. Total compensation costs recorded for employees and non-employee directors for the nine months ended January 31, 2023 and 2022, respectively, were $34,741 and $29,382, related entirely to restricted stock unit awards. As of January 31, 2023, there was $40,715 of unrecognized compensation costs related to restricted stock units which are expected to be recognized through fiscal 2026. No stock option awards have been granted under the 2018 Plan.
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Commitments and Contingencies |
9 Months Ended |
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Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time we may be involved in legal or administrative proceedings or investigations arising from the conduct of our business operations, including, but not limited to, contractual or other general business disputes; employment, personnel, or accessibility matters; personal injury and property damage claims; claims by federal, state, and local regulatory authorities relating to the sale of products pursuant to licenses and permits issued by those authorities; and, other claims or proceedings. Claims for damages in those actions may be substantial. While the outcome of such litigation, proceedings, investigations, or claims is never certain, it is our opinion, after taking into consideration legal counsel’s assessment and the availability of insurance proceeds and other collateral sources to cover potential losses, that the ultimate disposition of such matters currently pending or threatened, individually or cumulatively, will not have a material adverse effect on our consolidated financial position and results of operations. The Company is named as a defendant in a lawsuit filed in the United States District Court for the Northern District of Indiana, titled McColley v. Casey’s General Stores, Inc., in which the plaintiff alleges that the Company misclassified its Store Managers as exempt employees under the Fair Labor Standards Act (FLSA). The complaint seeks unpaid wages, liquidated damages and attorneys’ fees for the plaintiff and all similarly situated Store Managers who worked at the Company from February 16, 2015 to the present. On March 31, 2021, the Court granted conditional certification, and to-date, approximately 1,500 current and/or former Store Managers (representing less than 1/4 of those eligible) remain opted-in to participate in the lawsuit. The Company believes that adequate provisions have been made for probable losses related to this matter, and that those, and the reasonably possible losses in excess of amounts accrued, where such range of loss can be estimated, are not material to the Company’s financial position, results of operations or cash flows. The Company believes that its Store Managers are properly classified as exempt employees under the FLSA and it intends to continue to vigorously defend the matter. During the quarter, the Company received a $15,297 one-time payment from the resolution of a legal matter. These proceeds were recognized as a reduction to operating expenses in the condensed consolidated statements of income. We have entered into various purchase agreements related to our fuel supply, which include varying volume commitments. Prices included in the purchase agreements are indexed to market prices. While volume commitments are included in the contracts, we do not have a history of incurring material penalties related to these provisions. These contracts are not accounted for as derivatives as they meet the normal purchases exclusion under derivative accounting. We have entered into forward contracts for cheese in order to fix the price per pound for a portion of our expected supply. As of January 31, 2023, the forward contracts run through April 2023. The commitment under these contracts is approximately $14,500. These contracts are not accounted for as derivatives as they meet the normal purchases exclusion under derivative accounting.
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Unrecognized Tax Benefits |
9 Months Ended |
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Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | Unrecognized Tax Benefits The total amount of gross unrecognized tax benefits was $10,259 at April 30, 2022. At January 31, 2023, gross unrecognized tax benefits were $12,639. If this unrecognized tax benefit were ultimately recognized, $9,985 is the amount that would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $550 at January 31, 2023, and $371 at April 30, 2022. Net interest and penalties included in income tax expense for the nine months ended January 31, 2023, was a net expense of $179 and a net expense of $184 for the same period in 2022. A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. The Company has no ongoing federal or state income tax examinations. At this time, the Company’s best estimate of the reasonably possible change in the amount of the gross unrecognized tax benefits is a decrease of $2,100 during the next twelve months mainly due to the expiration of certain statute of limitations. The federal statute of limitations remains open for the tax years 2019 and forward. Tax years 2013 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.
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Segment Reporting |
9 Months Ended |
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Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingAs of January 31, 2023, we operated 2,472 stores in 16 states. Our convenience stores offer a broad selection of merchandise, fuel and other products and services designed to appeal to the convenience needs of our guests. We manage the business on the basis of one operating segment. Our stores sell similar products and services, and use similar processes to sell those products and services directly to the general public. We make specific disclosures concerning the three broad merchandise categories of fuel, grocery and general merchandise, and prepared food and dispensed beverage because it allows us to more effectively discuss trends and operational programs within our business and industry. Although we can separate revenues and cost of goods sold within these categories (and further sub-categories), the operating expenses associated with operating a store that sells these products are not separable by these categories. |
Basis of Presentation (Policies) |
9 Months Ended |
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Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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Revenue Recognition | The Company recognizes retail sales of fuel, grocery and general merchandise, prepared food and dispensed beverage and other revenue at the time of the sale to the guest. Sales taxes collected from guests and remitted to the government are recorded on a net basis in the condensed consolidated statements of income. A portion of revenue from sales that include a redeemable digital box top coupon or points under our Casey’s Rewards program is deferred. The deferred portion of the sale represents the value of the estimated future redemption of the digital box top coupon or points. The amounts related to digital box top coupons and points are deferred until their redemption or expiration. Revenue related to the digital box top coupons and points issued is expected to be recognized less than one year from the original sale to the guest. As of January 31, 2023 and April 30, 2022, the Company recognized a contract liability of $52,558 and $41,577, respectively, related to the outstanding digital box top coupons and Casey's Rewards points, which is included in accrued expenses on the condensed consolidated balance sheets. Gift card related revenue is recognized as the gift cards are used by the guest. Gift card breakage revenue is recognized based on the estimated gift card breakage rate over the pro rata usage of the card. As of January 31, 2023 and April 30, 2022, the Company recognized a liability of $19,662 and $15,509, respectively, related to outstanding gift cards, which is included in accrued expenses on the condensed consolidated balance sheets. The Company often receives vendor allowances on the basis of quantitative contract terms that vary by product and vendor or directly on the basis of purchases made. Vendor allowances include rebates and other funds received from vendors to promote their products. These amounts are recognized in the period earned based on the applicable rebate agreement. Reimbursements of an operating expense (e.g., advertising) are recorded as reductions of the related expense. Renewable identification numbers ("RINs") are assigned to gallons of renewable fuels produced and are used to track compliance with the renewable fuel standard. At times, we purchase fuel components (ethanol, gasoline, biodiesel or diesel) and blend those components into a finished product in a fuel truck. This process enables the Company to take title to the RIN assigned to each gallon of ethanol or biodiesel produced. RINs are recorded as a reduction in cost of goods sold in the period when the Company transfers the RIN. The Company does not record inventories on the balance sheet related to RINs, as they are acquired at no cost to the Company. The Company includes in cost of goods sold the costs incurred to acquire fuel and merchandise, including excise taxes, less vendor allowances, vendor rebates, and RINs. Warehousing costs are recorded within operating expenses on the condensed consolidated statements of income.
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Compensation Related Costs and Share Based Payments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Units Award Activity | Information concerning the unvested restricted stock units under the 2018 Plan is presented in the following table:
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Presentation of Financial Statements - Narrative (Details) people in Thousands |
Jan. 31, 2023
state
store
people
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores | store | 2,472 |
Number of states in which entity operates | state | 16 |
Population of communities | people | 5 |
Revenue and Cost of Goods Sold - Narrative (Details) - USD ($) $ in Thousands |
Jan. 31, 2023 |
Apr. 30, 2022 |
---|---|---|
Coupons And Rewards Points | ||
Disaggregation of Revenue [Line Items] | ||
Contract liability | $ 52,558 | $ 41,577 |
Gift Cards | ||
Disaggregation of Revenue [Line Items] | ||
Contract liability | $ 19,662 | $ 15,509 |
Compensation Related Costs and Share Based Payments - Schedule of Restricted Stock Units Activity (Details) - Stock Incentive Plans - Restricted Stock Units |
9 Months Ended |
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Jan. 31, 2023
shares
| |
Number of Restricted Stock Units | |
Unvested at the beginning of the period (in shares) | 526,394 |
Granted (in shares) | 162,443 |
Vested (in shares) | (232,290) |
Forfeited (in shares) | (21,678) |
Performance Award Adjustments (in shares) | 62,028 |
Unvested at the end of the period (in shares) | 496,897 |
Commitments and Contingencies - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Jan. 31, 2023
USD ($)
|
Jan. 31, 2023
USD ($)
employee
|
|
Other Commitments [Line Items] | ||
Proceeds from legal matter | $ 15,297 | |
Contract commitment | $ 14,500 | $ 14,500 |
McColley V. Casey's General Stores, Inc. | Pending Litigation | ||
Other Commitments [Line Items] | ||
Number of participants | employee | 1,500 |
Unrecognized Tax Benefits - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Jan. 31, 2023 |
Jan. 31, 2022 |
Apr. 30, 2022 |
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Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 12,639 | $ 10,259 | |
Unrecognized tax benefits that would impact effective tax rate | 9,985 | ||
Accrued interest and penalties related to unrecognized tax benefits | 550 | $ 371 | |
Net interest and penalties included in income tax expense | 179 | $ 184 | |
Expected decrease in unrecognized tax benefits | $ 2,100 |
Segment Reporting - Narrative (Details) |
9 Months Ended |
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Jan. 31, 2023
state
store
merchandise_category
segment
| |
Segment Reporting [Abstract] | |
Number of stores | store | 2,472 |
Number of states in which entity operates | state | 16 |
Number of operating segments | segment | 1 |
Number of merchandise categories | merchandise_category | 3 |
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