CASY Caseys General Stores Inc

Casey�s General Stores, Inc. (Nasdaq: CASY) today reported earnings for the fourth quarter and the fiscal year ended April 30, 2009. For the quarter, basic earnings per share from continuing operations were $0.31 compared to $0.28 a year ago. For the year, basic earnings per share were $1.69, up from $1.68 in fiscal 2008. The results include a $9.1 million pre-tax charge related to the previously disclosed settlement of two wage and hour lawsuits. Without the effect of the settlement, earnings would have been approximately $1.80 for the year. �Despite this charge and a very challenging economy, we were able to achieve record earnings and we anticipate continuing our strong performance in fiscal 2010,� said President and CEO Robert J. Myers.

Gasoline�Casey�s annual goal in fiscal 2009 was to increase same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon. For the year, same-store gallons were up 1% with an average margin of 12.9 cents per gallon. �The high retail price environment held same-store gallons in check during the first half of the fiscal year,� said Myers. �However, same-store gallons improved during the second half of the year as retail prices declined.� Same-store gallons sold were up 1.2% for the fourth quarter with an average margin of 12.1 cents.

Grocery and Other Merchandise�The Company�s goal was to increase same-store sales 7% with an average margin of 33.2%. For the fiscal year, same-store sales rose 5.9% with an average margin of 33.5%; up 40 basis points from a year ago. Gains made in the cigarette area and the continued popularity of high-margin beverages were significant contributors to the growth. �We are pleased with this category�s performance over the past several years and remain encouraged about future growth opportunities,� stated Myers. For the quarter, same-store sales increased 8% with an average margin of 32.9%.

Prepared Food and Fountain�Casey�s annual goal was to increase same-store sales 6.8% with a margin of 61.2%. Same-store sales increased 9.1% during fiscal 2009, with an average margin of 61.4%. �The Company benefited from strategic price increases implemented early in the year and was successful in negotiating a forward buy that locked in our cheese cost through October 2009,� said Myers. �In fiscal 2010 we intend to maintain the momentum by expanding our coffee and fountain selections, introducing new menu items and continuing the roll-out of our made-to-order sub sandwich program.� Total sales for the year were up 11.2% to $335.6 million. Same-store sales in the fourth quarter rose 7.2%, with a margin of 62.7%; up 180 basis points from the fourth quarter a year ago.

Operating Expenses�For the fiscal year, operating expenses increased 6.2%. In the fourth quarter, operating expenses were up 7.1%. Without the effect of the lawsuit settlement, operating expenses would have been up only 4.3% for the year and down 0.6% in the quarter. �Lower fuel prices during the second half of the year helped reduce our transportation costs and credit card fees,� stated Myers.

Expansion�The goal for fiscal 2009 was to increase the total number of stores 4%. For the year, the Company increased the store count by approximately 2%, with 16 new store constructions and 16 acquired stores. �In addition to unit growth, we continue to replace and remodel existing locations to meet the changing needs of our customers,� stated Myers. �During fiscal 2009 we replaced 14 stores and completed 2 remodels utilizing the features of our new store design.�

Fiscal 2010 Goals�Myers shared four corporate performance goals for fiscal 2010:

• Increase same-store gasoline gallons sold 2% with an average margin of 11 cents per gallon.
• Increase same-store grocery and other merchandise sales 8.9% with an average margin of 33.9%.
• Increase same-store prepared food and fountain sales 7.5% with an average margin of 62%.
• Increase the total number of stores by 4%.

Dividends�At its June meeting, the Board of Directors increased the quarterly dividend to $0.085 per share. The dividend is payable August 17, 2009 to shareholders of record on August 3, 2009.

Casey�s General Stores, Inc.Condensed Consolidated Statements of Earnings(Dollars in thousands, except per share amounts)

� �

�

Three months ended April 30,

�

Year ended April 30,

�

2009

�

�

2008

�

2009

�

�

2008

Total revenue $ 883,015 $ 1,204,723 $ 4,687,895 $ 4,828,793

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

�

710,859

�

1,046,139

�

3,964,513

�

4,142,552

Gross profit 172,156 158,584 723,382 686,241 Operating expenses 125,325 116,975 504,181 474,794 Depreciation and amortization 17,369 16,973 69,406 67,651 Interest, net 2,892 2,780 10,626 9,792

Earnings from continuing operations�before income taxes

26,570

21,856

139,169

134,004

Federal and state income taxes 10,997 7,401 53,425 49,031

Earnings from continuing operations

15,573 14,455 85,744 84,973

Loss on discontinued operations,�net of tax benefit of $12, $32,�$35 and $52

�

18

�

49

�

54

�

82

Net earnings $ 15,555 $ 14,406 $ 85,690 $ 84,891 Basic Earnings from continuing operations $ .31 $ .28 $ 1.69 $ 1.68

Loss on discontinued operations, net of�tax benefit

---- ---- ---- ---- Net earnings per common share $ .31 $ .28 $ 1.69 $ 1.68 Diluted Earnings from continuing operations $ .31 $ .28 $ 1.68 $ 1.67

Loss on discontinued operations, net of�tax benefit

---- ---- ---- ---- Net earnings per common share $ .31 $ .28 $ 1.68 $ 1.67

Casey�s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

� �

April 30,

April 30,

2009 2008 Assets Current assets Cash and cash equivalents $ 145,695 $ 154,523 Receivables 10,888 16,662 Inventories 106,528 124,503 Prepaid expenses 1,394 1,419 Deferred income taxes 11,895 8,398 Income taxes receivable 8,327 7,751 Total current assets � � 284,727 � � 313,256 Property and equipment, at cost Land 273,406 249,842 Buildings and leasehold improvements 568,366 523,748 Machinery and equipment 711,090 655,270 Leasehold interest in property and equipment 17,924 15,194 1,570,786 1,444,054 Less accumulated depreciation and amortization 652,376 595,316 Net property and equipment 918,410 848,738 Other assets, net of amortization 8,582 8,898 Goodwill 50,976 48,308 Total assets � $ 1,262,695 � $ 1,219,200 � Liabilities and Shareholders' Equity Current liabilities Current maturities of long-term debt $ 28,442 $ 34,383 Accounts payable 115,436 163,343 Accrued expenses Wages and related taxes 23,155 13,816 Property taxes 14,156 13,877 Insurance 19,111 18,265 Other 20,943 15,415 Total current liabilities � � 221,243 � � 259,099 Long-term debt, net of current maturities 167,887 181,443 Deferred income taxes 125,536 105,959 Deferred compensation 11,085 10,201 Other long-term liabilities 15,914 15,026 Total liabilities 541,665 571,728 � Total shareholders' equity 721,030 647,472 � � Total liabilities and shareholders' equity � $ 1,262,695 � $ 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)

� � � � � Year ended

4/30/09

Gasoline

Grocery & Other

Merchandise

Prepared Food

& Fountain

Other

Total

� Sales $ 3,321,549 $ 1,010,018 $ 335,587 $ 20,741 $ 4,687,895 Gross profit $ 159,787 $ 338,135 $ 205,954 $ 19,506 $ 723,382 Margin 4.8% 33.5% 61.4% 94.0% 15.4% � Gasoline gallons 1,241,502 � Year ended

4/30/08

� Sales $ 3,559,245 $ 943,118 $ 301,702 $ 24,728 $ 4,828,793 Gross profit $ 168,934 $ 311,959 $ 188,002 $ 17,346 $ 686,241 Margin 4.7% 33.1% 62.3% 70.1% 14.2% � Gasoline gallons � � 1,214,932 � � � � � � � � � � � � Gasoline Gallons Gasoline Margin Same-store Sales Growth (Cents per gallon, excluding credit card fees) � � � � � Fiscal � � � � � Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

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 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 Grocery & Other Merchandise Same-store Sales Growth Margin Fiscal Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

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 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 Prepared Food & Fountain Same-store Sales Growth Margin Fiscal Fiscal

Q1

Q2

Q3

Q4

Year

Q1

Q2

Q3

Q4

Year

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 F2007 � 9.5 � � 13.7 � � 11.9 � � 8.5 � � 11.0 � F2007 � 62.9 � � 61.6 � � 62.1 � � 61.6 � � 62.0 �

Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on June 16, 2009. The call will be broadcast live over the Internet at 9:30 a.m. CDT via the Investor Relations section of our Web site and will be available in an archived format.