EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

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Casey’s General Stores, Inc.

One Convenience Blvd.

Ankeny, IA 50021

  

Nasdaq Symbol CASY

CONTACT Bill Walljasper

(515) 965-6505

Casey’s Reports Record Third Quarter

Ankeny, Iowa, March 9, 2009—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.28 in earnings per share from continuing operations for the third quarter of fiscal 2009 ended January 31, 2009 compared with $0.26 for the same quarter a year ago. Year to date earnings from continuing operations were $1.38 per share compared with $1.39 for the same period of fiscal 2008. “We are pleased with the execution of our strategy,” said President and CEO Robert J. Myers. “We were able to exceed third quarter earnings from a year ago despite a gas margin decline of over 3.5 cents per gallon.”

Gasoline—Casey’s annual goal is to increase same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon. In the quarter, same-store gallons sold were up 2.1% with an average margin of 9.9 cents per gallon. “Retail prices were very responsive to the downward movement of wholesale cost, which put pressure on our gasoline margin,” Myers stated. “However, as costs stabilized toward the end of the quarter the margin improved.” For the nine months, total gallons sold rose 2% to 942.5 million. Same-store gallons sold were up nearly 1% with an average margin of 13.1 cents per gallon.

Grocery & Other Merchandise—The Company’s goal is to increase same-store sales 7% with an average margin of 33.2%. “For the twentieth consecutive quarter we increased same store sales,” said Myers. Same-store sales were up 6.5% for the third quarter and up 5.3% year to date. Total sales for the quarter were $231.3 million with an average margin of 32.9%, up over 100 basis points from the third quarter a year ago. Gross profit in the quarter rose 11.1% to $76.1million. Myers stated, “All areas in this category are performing well, lead by solid gains in beer and beverages.” For the nine months, total sales were $770.8 million with an average margin of 33.6%.

Prepared Food & Fountain—The goal is to increase same-store sales 6.8% with an average margin of 61.2%. Same store sales were up 8.1% for the quarter and 9.9% year to date. Total sales in the quarter rose 10.4% to $81 million, with an average margin of 61.8%. Myers stated, “We have taken advantage of a recent decrease in commodity costs to lock in the price of cheese through October 2009.” For the nine months, total sales were up 11.6% with an average margin of 60.9%.

Operating Expenses—In the third quarter, operating expenses decreased 1.4% to $118.9 million. “We experienced nearly a 19% decrease in credit card fees due to lower gasoline prices and had a significant decline in our fleet fuel expense,” said Myers. “We expect these favorable conditions to continue into our fourth quarter.” For the year, operating expenses were up 5.9%.

Expansion—The goal for fiscal 2009 is to increase the total number of Casey’s stores 4%. At the end of the third quarter, the Company had acquired 14 stores and completed 7 new store constructions. “We expect to have a total of 17 new store constructions open by the end of our fiscal year,” Myers stated. “The company is positioned very well and we remain optimistic about long-term acquisition opportunities.”


Dividend—At its March meeting, the Board of Directors declared a quarterly dividend of $0.075 per share. The dividend is payable May 15, 2009 to shareholders of record on May 1, 2009.

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Casey’s General Stores, Inc.

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share amounts)

(Unaudited)

  

 

     Three months ended January 31,    Nine months ended January 31,  
     2009     2008    2009     2008  

Total revenue

   $ 848,832     $ 1,154,500    $ 3,804,880     $ 3,624,070  

Cost of goods sold (exclusive of depreciation and amortization, shown separately below)

     687,714       994,432      3,253,654       3,096,414  
                               

Gross profit

     161,118       160,068      551,226       527,656  

Operating expenses

     118,886       120,587      378,856       357,819  

Depreciation and amortization

     17,148       17,029      52,037       50,678  

Interest, net

     2,757       2,317      7,734       7,012  
                               

Earnings from continuing operations before income taxes and gain (loss) on discontinued operations

     22,327       20,135      112,599       112,147  

Federal and state income taxes

     8,292       7,248      42,428       41,630  
                               

Earnings from continuing operations before gain (loss) on discontinued operations

     14,035       12,887      70,171       70,517  

Gain (loss) on discontinued operations, net of taxes (tax benefit) of $(9), $94, $(23) and $(20)

     (14 )     146      (36 )     (32 )
                               

Net earnings

   $ 14,021     $ 13,033    $ 70,135     $ 70,485  
                               

Basic

         

Earnings from continuing operations before loss on discontinued operations

   $ .28     $ .26    $ 1.38     $ 1.39  

Loss on discontinued operations

     —         —        —         —    
                               

Net earnings

   $ .28     $ .26    $ 1.38     $ 1.39  
                               

Diluted

         

Earnings from continuing operations before loss on discontinued operations

   $ .28     $ .26    $ 1.38     $ 1.39  

Loss on discontinued operations

     —         —        —         —    
                               

Net earnings

   $ .28     $ .26    $ 1.38     $ 1.39  
                               


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     January 31,
2009
   April 30,
2008

Assets

     

Current assets

     

Cash and cash equivalents

   $ 127,459    $ 154,523

Receivables

     8,651      16,662

Inventories

     99,030      124,503

Prepaid expenses

     9,451      9,817

Income taxes receivable

     6,848      7,751
             

Total current assets

     251,439      313,256
             

Other assets, net of amortization

     8,642      8,898

Goodwill

     50,956      48,308

Property and equipment, net of accumulated depreciation of $638,177 at January 31, 2009, and of $595,316 at April 30, 2008

     898,979      848,738
             

Total assets

   $ 1,210,016    $ 1,219,200
             

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Current maturities of long-term debt

   $ 33,306    $ 34,383

Accounts payable

     97,001      163,343

Accrued expenses

     62,041      61,373
             

Total current liabilities

     192,348      259,099
             

Long-term debt, net of current maturities

     169,101      181,443

Deferred income taxes

     113,203      105,959

Deferred compensation

     10,070      10,201

Other long-term liabilities

     16,553      15,026
             

Total liabilities

     501,275      571,728
             

Total shareholders’ equity

     708,741      647,472
             

Total liabilities and shareholders’ equity

   $ 1,210,016    $ 1,219,200
             

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)

 

Nine months ended 1/31/09    Gasoline     Grocery & Other
Merchandise
    Prepared Food
& Fountain
    Other     Total  

Sales

   $ 2,763,518     $ 770,766     $ 254,533     $ 16,063     $ 3,804,880  

Gross profit

   $ 123,668     $ 259,311     $ 155,112     $ 13,135     $ 551,226  

Margin

     4.5 %     33.6 %     60.9 %     81.8 %     14.5 %

Gasoline gallons

     942,480          
Nine months ended 1/31/08                               

Sales

   $ 2,652,663     $ 725,029     $ 228,054     $ 18,324     $ 3,624,070  

Gross profit

   $ 132,257     $ 239,619     $ 143,136     $ 12,644     $ 527,656  

Margin

     5.0 %     33.0 %     62.8 %     69.0 %     14.6 %

Gasoline gallons

     924,091          

 

Gasoline Gallons

Same-store Sales Growth

        

Gasoline Margin

(Cents per gallon, excluding credit card fees)

 
     Q1     Q2     Q3     Q4     Fiscal
Year
              Q1     Q2     Q3     Q4     Fiscal
Year
 

F2009

   0.5 %   0.2 %   2.1 %          F2009    15.6 ¢   13.7 ¢   9.9 ¢    

F2008

   0.3     -1.6     -3.9     -2.5 %   -2.0 %     

F2008

   15.8     13.6     13.5     12.6 ¢   13.9 ¢

F2007

   -2.9     2.7     4.0     2.8     1.4       

F2007

   9.8     9.4     10.5     11.8     10.4  

Grocery & Other Merchandise

Same-store Sales Growth

        

Grocery & Other Merchandise

Margin

 
     Q1     Q2     Q3     Q4     Fiscal
Year
              Q1     Q2     Q3     Q4     Fiscal
Year
 

F2009

   4.7 %   4.9 %   6.5 %         

F2009

   34.0 %   33.9 %   32.9 %    

F2008

   9.1     11.2     5.4     3.6 %   7.3 %     

F2008

   34.0     33.1     31.9     33.2 %   33.1 %

F2007

   2.3     3.5     6.7     7.3     4.6       

F2007

   32.2     32.6     30.8     35.0     32.7  

Prepared Food & Fountain

Same-store Sales Growth

        

Prepared Food & Fountain

Margin

 
     Q1     Q2     Q3     Q4     Fiscal
Year
              Q1     Q2     Q3     Q4     Fiscal
Year
 

F2009

   12.3 %   9.3 %   8.1 %         

F2009

   60.5 %   60.6 %   61.8 %    

F2008

   9.5     10.6     8.4     11.2 %   9.8 %     

F2008

   61.7     63.0     63.6     60.9 %   62.3 %

F2007

   9.5     13.7     11.9     8.5     11.0       

F2007

   62.9     61.6     62.1     61.6     62.0  

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Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during

a conference call on March 10, 2009. 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.