EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

NEWS RELEASE FOR IMMEDIATE RELEASE    LOGO

 

Casey’s General Stores, Inc.

One Convenience Blvd.

Ankeny, IA 50021

  

Nasdaq Symbol CASY

CONTACT Bill Walljasper

(515) 965-6505

Casey’s Increases Earnings over 50%

Ankeny, Iowa, September 8, 2009—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported earnings per share of $0.87 for the first quarter of fiscal 2010 ended July 31, 2009. For the same quarter a year ago, earnings per share were $0.57. “Strong gas margins and enhanced profitability inside the stores were the primary reasons for the record quarter,” said President and CEO Robert J. Myers. “Lower retail fuel prices also brought about significant relief in our operating expenses.”

Gasoline—Casey’s annual goal is to increase same-store gasoline gallons sold 2% with an average margin of 11 cents per gallon. The quarter’s same-store gallons sold were up 3.2% with an average margin of 15.7 cents per gallon. The average retail price per gallon was $2.35, down 38% from the same period a year ago. “We believe lower retail prices were a factor in exceeding our same-store sales goal,” stated Myers. “Our gasoline margin continues to benefit from a more responsive pricing environment.” Total gallons sold rose to 335.8 million from 318.2 million; gross profit was $52.7 million compared with $49.6 million.

Grocery & Other Merchandise—The Company’s goal is to increase same-store sales 8.9% with an average margin of 33.9%. Same-store sales for the quarter were up 6.4%, with an average margin of 34.3% compared to 34% last year. Gross profit rose 9.2% to $102 million. “We are pleased with this category’s performance despite experiencing one of the coldest summers on record, which particularly affected beverage and beer sales,” said Myers. “The gain in gross profit was primarily due to higher cigarette revenue attributable to the federal excise tax increase, along with an improved pack-versus-carton sales ratio.” Total sales were up 8.4% to $297.4 million.

Prepared Food & Fountain—The goal is to increase same-store sales 7.5% with an average margin of 62%. Same-store sales for the quarter were up 6.6% and the average margin was 63.8%, up approximately 330 basis points from the prior year. “Lower cheese costs, which we have locked in through October, helped increase total gross profit in this category over 17% from the same period a year ago,” Myers stated. “We expanded our coffee and fountain offerings and continue to roll out our made-to-order sub sandwich program.” Total sales for the category increased 11.1% to $95.2 million.

Operating Expenses—For the quarter, operating expenses declined 0.3% to $132.4 million. “Credit card fees and transportation costs combined were down almost $5 million compared to the first quarter a year ago.” said Myers. “We are encouraged by the great start to fiscal 2010 and will remain diligent in our efforts to control expenses throughout the year.”


Expansion—The goal for fiscal 2010 is to increase the total number of Casey’s stores 4%. By the end of the first quarter, the Company opened 5 newly constructed stores and replaced an additional 5 stores. There were no acquired stores opened during the quarter. “We have now incorporated the new store design in 61 locations, with 8 new sites and 13 replacement sites currently under construction,” said Myers.

Dividend—At its September meeting, the Board of Directors declared a quarterly dividend of $0.085 per share, reflecting the increase approved in June. The dividend is payable November 16, 2009 to shareholders of record on November 2, 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 July 31,
     2009    2008

Total revenue

   $ 1,187,940    $ 1,567,297

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

     967,815      1,368,132
             

Gross profit

     220,125      199,165

Operating expenses

     132,358      132,716

Depreciation and amortization

     17,951      17,484

Interest, net

     2,704      2,563
             

Earnings before income taxes

     67,112      46,402

Federal and state income taxes

     22,919      17,617
             

Net earnings

   $ 44,193    $ 28,785
             

Earnings per common share

     

Basic

   $ .87    $ .57
             

Diluted

   $ .87    $ .57
             

Basic weighted average shares outstanding

     50,863,579      50,753,995

Plus effect of stock options

     132,723      114,902
             

Diluted weighted average shares outstanding

     50,996,302      50,868,897
             


Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

     July 31,
2009
   April 30,
2009

Assets

     

Current assets

     

Cash and cash equivalents

   $ 170,780    $ 145,695

Receivables

     9,732      10,888

Inventories

     115,659      106,528

Prepaid expenses

     2,094      1,394

Deferred income taxes

     8,507      11,895

Income taxes receivable

     —        8,327
             

Total current assets

     306,772      284,727
             

Other assets, net of amortization

     9,194      8,582

Goodwill

     50,976      50,976

Property and equipment, net of accumulated depreciation of $666,922 at July 31, 2009, and of $652,376 at April 30, 2009

     931,677      918,410
             

Total assets

   $ 1,298,619    $ 1,262,695
             

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Current maturities of long-term debt

   $ 25,648    $ 28,442

Accounts payable

     125,754      115,436

Accrued expenses

     64,937      77,365

Income taxes payable

     7,889      —  
             

Total current liabilities

     224,228      221,243
             

Long-term debt, net of current maturities

     156,248      167,887

Deferred income taxes

     129,792      125,536

Deferred compensation

     11,697      11,085

Other long-term liabilities

     14,649      15,914
             

Total liabilities

     536,614      541,665
             

Total shareholders’ equity

     762,005      721,030
             

Total liabilities and shareholders’ equity

   $ 1,298,619    $ 1,262,695
             

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)

 

     Gasoline     Grocery & Other
Merchandise
    Prepared Food
& Fountain
    Other     Total  

Three months ended 7/31/09

  

Sales

   $ 790,629      $ 297,395      $ 95,177      $ 4,739      $ 1,187,940   

Gross profit

   $ 52,726      $ 101,980      $ 60,697      $ 4,722      $ 220,125   

Margin

     6.7     34.3     63.8     99.6     18.5

Gasoline gallons

     335,802           

Three months ended 7/31/08

  

Sales

   $ 1,201,173      $ 274,347      $ 85,631      $ 6,146      $ 1,567,297   

Gross profit

   $ 49,635      $ 93,346      $ 51,831      $ 4,353      $ 199,165   

Margin

     4.1     34.0     60.5     70.8     12.7

Gasoline gallons

     318,196           

 

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
 

F2010

   3.2            F2010    15.7 ¢         

F2009

   0.5      0.2   2.1   1.2   1.0    F2009    15.6      13.7 ¢    9.9 ¢    12.1 ¢    12.9 ¢ 

F2008

   0.3      -1.6      -3.9      -2.5      -2.0       F2008    15.8      13.6      13.5      12.6      13.9   

Grocery & Other Merchandise

Same-store Sales Growth

    

Grocery & Other Merchandise

Margin

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

F2010

   6.4            F2010    34.3        

F2009

   4.7      4.9   6.5   8.0   5.9    F2009    34.0      33.9   32.9   32.9   33.5

F2008

   9.1      11.2      5.4      3.6      7.3       F2008    34.0      33.1      31.9      33.2      33.1   

Prepared Food & Fountain

Same-store Sales Growth

    

Prepared Food & Fountain

Margin

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

F2010

   6.6            F2010    63.8        

F2009

   12.3      9.3   8.1   7.2   9.1    F2009    60.5      60.6   61.8   62.7   61.4

F2008

   9.5      10.6      8.4      11.2      9.8       F2008    61.7      63.0      63.6      60.9      62.3   

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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 September 9, 2009. The call will be broadcast live over the Internet at 9:30 a.m. CT via the

Investor Relations section of our Web site and will be available in an archived format.