Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported
diluted earnings per share of $8.34 (inclusive of the one-time
impact of $4.53 per share related to the adoption of the Tax Cuts
and Jobs Act) for the year ended April 30, 2018 compared to $4.48
for the same period last year. For the fourth quarter of fiscal
2018, diluted earnings per share were $0.51 versus $0.76 for the
same period a year ago. "A suppressed fuel margin and challenging
weather had an adverse impact on fourth quarter results, however we
believe we are taking market share in most categories. The 53 new
stores we opened in the fourth quarter, combined with increased
promotional activity and normalized weather throughout our region
has us off to an encouraging start to fiscal 2019," said Terry
Handley, President and CEO.
Value Creation Plan Update - The Company has completed or
made progress on the following value creation plan activities:
- Hired a Chief Marketing Officer
- Completed the initial $300 million
share repurchase authorization
- Increased quarterly dividend 12%, which
represents the 18th straight year of increase
- Finalized a contract with a partner for
our fleet card program
- Enhancing fuel margin through product
optimization
- Identified platforms for fuel and
inside price optimization
- Completed startup and design phase of
digital transformation
- Streamlined current mobile app and
online ordering capabilities
- Generating store level profit
improvements from strategic reductions of 24-hour and pizza
delivery locations
Fuel - For the year, same-store gallons sold were up 2.3%
with an average margin of 18.5 cents per gallon. For the quarter,
same-store gallons increased 2.0% with an average margin of 16.3
cents per gallon. "Same-store gallons sold remained strong in the
fourth quarter, outpacing miles driven trends in our region
signaling an increase in our market share," stated Handley.
"However, a rising wholesale cost environment in the fourth quarter
resulted in the lowest quarterly fuel margin since fiscal 2014."
For fiscal 2018, total gallons sold were up 6.6% to 2.2 billion.
Gross profit dollars for the year were up 7.5% to $406.8 million,
primarily due to an increase in gallons sold.
Grocery and Other Merchandise - For the year, same-store
sales were up 1.9% with an average margin of 31.8%. For the fourth
quarter, same-store sales were down 0.4% with an average margin of
31.2%. "The combination of weather and a management decision to
reduce 24 hour locations unfavorably impacted the quarterly
same-store sales in the fourth quarter," said Handley. "Even with
these factors in play, industry data shows that we continue to gain
market share in this category." For the year, total sales were up
4.6% to $2.2 billion and gross profit dollars increased 5.5% to
$693.6 million.
Prepared Food and Fountain - For the year, same-store
sales were up 1.7% with an average margin of 61.0%. For the fourth
quarter, same-store sales were down 1.3% with an average margin of
59.7%. "We strategically reduced the number of pizza delivery
nights across our chain in the fourth quarter," stated Handley.
"The combination of weather, and the 24-hour and pizza delivery
adjustments negatively impacted same-store sales. However, the
decrease in overall hours at these stores positively impacted store
level profits through the reduction in operating expense." For
fiscal 2018, total sales increased 5.5% to $1.0 billion, and gross
profit dollars rose 3.3% to $613.7 million.
Operating Expenses - For the fiscal year, operating
expenses increased 9.4% to $1.3 billion. For the fourth quarter,
operating expenses were up 7.9% from the same time period a year
ago. Fourth quarter operating expenses were impacted by the
following items:
- Health insurance expense increased $4.5
million, primarily due to an increase in the number and severity of
claims.
- Credit card fees and fuel expense
combined increased $4.4 million, primarily due to a 12.1% increase
in retail fuel prices.
- The Company incurred $1.6 million in
consulting fees related to the execution of the value creation
plan.
- Snow removal costs increased $1.2
million, due to inclement weather.
Remaining operating expenses were up 4.7%, primarily due to an
increase in the number of stores in operation from the same time
period a year ago.
Expansion - For the fiscal year, the Company built and
opened 85 new stores, acquired 26 stores, completed 30
replacements, and remodeled 74 stores. As of April 30, 2018, there
were 31 new stores, four replacement stores, and three major
remodel stores under construction. "We are excited to have opened
our first store in the state of Michigan in April," stated Handley.
"We're also encouraged by the number of conversations we're having
on potential acquisitions. Currently, we have 11 acquisition stores
under agreement to purchase, and are actively pursuing additional
acquisition opportunities in a disciplined manner."
Share Repurchase Program - From its inception on March 9,
2017, through the end of the fourth quarter of fiscal 2018, the
Company repurchased 2,441,600 shares of its common stock under its
open market share repurchase program for approximately $264.8
million, or an average price of $108.46 per share. As of April 30,
2018, the Company had a total remaining authorized amount for share
repurchases of $35.2 million on its initial $300 million
authorization, which was completed in May 2018. In addition, in
March 2018, the Board of Directors authorized a new $300 million
share repurchase program through fiscal year 2020.
Fiscal 2019 Guidance - The corporate performance guidance
for fiscal 2019 is as follows:
Same-store Sales Average Margin Fuel (Gallons
and CPG) 1.5 - 3.0% 18.5 - 20.5 Grocery and Other
Merchandise 1.5 - 3.0% 31.5 - 32.5% Prepared Food and Fountain 1.5
- 3.5% 60.0 - 62.0%
Other Guidance Operating Expenses
(including expenses from value creation plan) 8.5% - 10.5%
Depreciation and Amortization 14.0 - 16.0% New Store Construction
60 stores Acquisitions 20+ stores
Dividend - For the last 18 years, the Company has
increased its annual dividend to shareholders. At its June meeting,
the Board of Directors increased the quarterly dividend from $.26
to $.29 per share. The dividend is payable August 15th to
shareholders of record on August 1st, 2018.
Casey’s General Stores, Inc.
Condensed Consolidated
Statements of Income
(Dollars in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended April 30, Twelve Months Ended April 30,
2018 2017
2018 2017 Total revenue
$ 2,089,037 1,846,460
$ 8,391,124
7,506,587 Cost of goods sold (exclusive of depreciation and
amortization, shown separately below)
1,683,922 1,448,241
6,621,731 5,825,426 Operating expenses
315,809
292,590
1,283,046 1,172,328 Depreciation and amortization
57,402 51,947
220,970 197,629 Interest, net
13,119 10,362
50,940 41,536
Income before income taxes
18,785 43,320
214,437
269,668 Federal and state income taxes
(477 ) 13,242
(103,466 ) 92,183 Net income
$
19,262 30,078
$ 317,903
177,485 Net income per common share Basic
$ 0.52
0.77
$ 8.41 4.54 Diluted
$ 0.51 0.76
$ 8.34
4.48 Basic weighted average shares
37,298,281 38,985,738
37,778,304 39,124,665 Plus effect of stock compensation
353,010 450,073
353,795 454,333
Diluted weighted average shares
37,651,291 39,435,811
38,132,099 39,578,998
Casey’s General Stores, Inc.
Condensed Consolidated Balance
Sheets
(Dollars in thousands)
(Unaudited)
April 30, 2018 April 30, 2017
Assets Current
assets Cash and cash equivalents
$ 53,679 $ 76,717
Receivables
45,045 43,244 Inventories
241,668 201,644 Prepaid
expenses
5,766 9,179 Income tax receivable
43,776
19,901 Total current assets
389,934 350,685
Other assets, net of amortization
29,909 23,453 Goodwill
140,258 132,806 Property and equipment, net of accumulated
depreciation
2,902,920 2,513,158 Total assets
$ 3,463,021 $ 3,020,102
Liabilities and
Shareholders’ Equity Current liabilities Notes payable to bank
$ 39,600 $ 900 Current maturities of long-term debt
15,374 15,421 Accounts payable
321,419 293,903
Accrued expenses
151,205 136,322 Total current
liabilities
527,598 446,546 Long-term debt, net of
current maturities
1,291,725 907,356 Deferred income taxes
335,040 440,124 Deferred compensation
15,928 15,784
Other long-term liabilities
21,589 19,672 Total
liabilities
2,191,880 1,829,482 Total shareholders’
equity
1,271,141 1,190,620 Total liabilities and
shareholders’ equity
$ 3,463,021 $ 3,020,102
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.
Summary by Category (Amounts in thousands)
Three
months ended 4/30/2018 Fuel
Grocery & OtherMerchandise
Prepared Food& Fountain
Other Total
Revenue $ 1,321,417
$ 511,834 $ 241,163 $
14,623 $ 2,089,037 Revenue less cost of
goods sold (exclusive of depreciation and amortization)
$ 86,640 $ 159,929 $
143,949 $ 14,597 $ 405,115
Margin 6.6 % 31.2 % 59.7
% 99.8 % 19.4 % Fuel
gallons 532,196 Three months ended 4/30/2017 Revenue $
1,099,743 $ 500,068 $ 233,150 $ 13,499 $ 1,846,460 Gross profit $
85,592 $ 155,374 $ 143,774 $ 13,479 $ 398,219 Margin 7.8 % 31.1 %
61.7 % 99.9 % 21.6 % Fuel gallons 496,492
Summary by
Category (Amounts in thousands)
Twelve months ended
4/30/2018 Fuel
Grocery & OtherMerchandise
Prepared Food& Fountain
Other Total
Revenue $ 5,145,988 $
2,184,147 $ 1,005,621 $ 55,368
$ 8,391,124 Revenue less cost of goods sold
(exclusive of depreciation and amortization) $
406,811 $ 693,576 $ 613,736
$ 55,270 $ 1,769,393 Margin
7.9 % 31.8 % 61.0 %
99.8 % 21.1 % Fuel gallons
2,198,600 Twelve months ended 4/30/2017 Revenue $ 4,414,128
$ 2,087,349 $ 953,430 $ 51,680 $ 7,506,587 Gross profit $ 378,347 $
657,190 $ 594,024 $ 51,600 $ 1,681,161 Margin 8.6 % 31.5 % 62.3 %
99.8 % 22.4 % Fuel gallons 2,061,794
Fuel Gallons
Fuel Margin Same-store Sales Growth (Cents per
gallon, excluding credit card fees) Q1 Q2 Q3
Q4
FiscalYear
Q1 Q2 Q3 Q4
FiscalYear
F2018 1.7 % 1.9 % 3.8
% 2.0 % 2.3 % F2018
19.3 ¢ 19.7 ¢ 18.6 ¢
16.3 ¢ 18.5
¢
F2017 3.1 3.7 2.6 (0.5 ) 2.1 F2017 19.5 18.6 17.9 17.2 18.4 F2016
3.4 3.3 1.6 4.6 3.0 F2016 17.5 24.7 18.1 17.8 19.6
Grocery & Other Merchandise
Grocery & Other Merchandise
Same-store Sales Growth Margin Q1 Q2 Q3 Q4
FiscalYear
Q1 Q2 Q3 Q4
FiscalYear
F2018 3.1 % 2.5 % 2.5
% (0.4 )% 1.9 % F2018
31.9 % 32.0 % 31.9 %
31.2 % 31.8 % F2017 4.7 3.1 3.0 1.5 2.9
F2017 31.6 32.0 31.1 31.1 31.5 F2016 7.0 7.5 7.1 7.4 7.1 F2016 32.6
31.5 31.2 32.1 31.9
Prepared Food & Fountain
Prepared Food & Fountain Same-store Sales Growth
Margin Q1 Q2 Q3 Q4
FiscalYear
Q1 Q2 Q3 Q4
FiscalYear
F2018 3.7 % 2.1 % 1.7
% (1.3 )% 1.7 % F2018
62.5 % 61.3 % 60.5 %
59.7 % 61.0 % F2017 5.1 5.1 5.8 3.2 4.8
F2017 62.8 62.9 61.7 61.7 62.3 F2016 10.3 9.4 6.0 8.2 8.4 F2016
62.5 63.4 62.0 61.9 62.5
Corporate information is available at this website:
https://www.caseys.com. Earnings will be reported during a
conference call on June 12, 2018. The call will be broadcast
live over the Internet at 9:30 a.m. CST. To access the call, go to
the Press Releases and Webcasts section of our website at
https://www.caseys.com/investor-relations/press-releases-and-webcasts.
No access code is required. A webcast replay of the call will
remain available in an archived format on the Press Releases and
Webcasts section of our website at
https://www.caseys.com/investor-relations/press-releases-and-webcasts
until June 12, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180612005836/en/
Casey’s General Stores, Inc.Bill Walljasper, (515) 965-6505
Caseys General Stores (NASDAQ:CASY)
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