Casey’s General Stores, Inc. (“Casey’s” or the “Company”) (Nasdaq symbol CASY) today reported diluted earnings per share of $0.91 for the third quarter of fiscal year 2020 ended January 31, 2020, compared to $1.13 per share for the same quarter a year ago. An unfavorable pricing environment compared to the same period a year ago led to lower growth in fuel gross profit dollars. "We are optimistic about the January launch of the Casey's Rewards program. With strong initial membership growth, we look forward to further developing the connection with our guests through this platform," said Darren Rebelez, President and Chief Executive Officer. "We are excited to begin executing on the strategic plan we unveiled in January, which we believe will continue to generate shareholder value," stated Rebelez.
Fuel - For the quarter, average fuel margin was 21.7 cents per gallon, while same-store gallons sold were down 2.0%. Third quarter gross profit dollars increased 1.4% to $124.3 million, and total gallons sold were up 3.3% to 572.7 million gallons. “Despite a challenging demand environment, and comparing against the strongest fuel margin quarter from the prior year, we were able to leverage a more robust price optimization and supply capability to better control the impact of unfavorable market conditions," said Rebelez. For the nine months ended January 31, 2020, total gallons sold were up 3.2% to 1.8 billion. Same-store gallons sold year to date were down 2.0% with an average margin of 23.0 cents per gallon. In that same period, gross profit dollars increased 14.1% to $416.0 million.
Grocery and Other Merchandise - For the quarter, same-store sales were up 3.5% with average margin of 32.9%. “Third quarter average margin benefited from a favorable product mix shift to higher margin items,” said Rebelez. "Given the changes in the regulatory environment impacting this category, we are pleased with the acceleration in same-store sales." For the third quarter, total grocery and other merchandise revenue increased 7.1% to $582.4 million, and gross profit dollars increased 10.5% to $191.7 million. Total revenue for the first nine months was up 6.9% to $1.9 billion, while total gross profit dollars grew 7.7% to $627.3 million. Year-to-date same-store sales were up 3.2% with an average margin of 32.5%.
Prepared Food and Fountain - Same-store sales for the quarter were up 2.8% with average margin of 60.2%. "Our same-store sales grew throughout the quarter, and were the strongest results in the last ten quarters. The new technology implemented in the last nine months has allowed us to better reach our guests with attractive promotional offers, which will only be enhanced by the launch of our rewards program, where early results have been encouraging," said Rebelez. Same-store sales were up 3.0% without the impact of the deferral of revenue from the Casey's Rewards program. The average margin was adversely impacted by higher commodity costs compared to prior year and increased promotional activity. Total prepared food and fountain revenue increased 6.8% to $273.6 million in the third quarter while gross profit dollars grew to $164.8 million. For the first nine months, total revenue increased 5.7% to $867.4 million while total gross profit dollars grew 3.9% to $530.3 million. Year to date, same-store sales were up 2.1% with an average margin of 61.1%.
Operating Expenses - For the third quarter, total operating expenses increased 10.5% to $377.3 million. Increases in credit card fees and the timing of incentive compensation costs drove 1.9% of the quarterly increase. Year to date, operating expenses were up 8.2%. The increase in total operating expenses for third quarter and year-to-date was primarily attributable to operating 70 more stores than the same quarter in the prior year, and increases in technology costs. Same-store operating expenses excluding credit card fees were up 5.4% for the quarter. "Same-store operating expenses were in line with our expectations as we cycled over several expense reduction initiatives. On a two-year stacked basis, same-store operating expenses excluding credit card fees were up 3.3%. We will continue to be focused on controlling operating expenses as we begin to integrate new capabilities related to our strategic plan," noted Rebelez.
Expansion - The following table represents the roll forward of store growth through the third quarter of fiscal 2020:
Store Count | |
Stores at 4/30/19 | 2,146 |
New store construction | 50 |
Acquisitions | 10 |
Acquisitions not opened | (4) |
Prior acquisitions opened | 3 |
Closed | (12) |
Stores at 1/31/20 | 2,193 |
The Company has 11 acquisition stores under agreement to purchase and a new store pipeline of 88 sites, including 15 under construction as of January 31, 2020. "We are excited about the significant addressable market in our current geographic footprint, and are in a strong financial position to accelerate growth over the next few years, both organically and through acquisitions," said Rebelez.
Share Repurchase Program - The Company has $300 million remaining under its existing share repurchase program. On March 6, 2020, the program's authorization was extended through the end of the Company's 2022 fiscal year. There were no repurchases made against the authorization in the third quarter.
Dividend - At its March meeting, the Board of Directors declared a quarterly dividend of $0.32 per share. The dividend is payable May 15, 2020 to shareholders of record on May 1, 2020.
Fiscal 2020 Guidance - The following represents our current fiscal 2020 guidance:
Same-store Sales | Margin | ||||||
Previous | Current | Previous | Current | ||||
Fuel (Gallons and Cents Per Gallon) | (1.0%) - .5% | (1.0%) - .5% | 21.0 - 23.0 | 21.0 - 23.0 | |||
Grocery and Other Merchandise | 2.5 - 4.0% | 2.5 - 4.0% | 32.0 - 33.0% | 32.0 - 33.0% | |||
Prepared Food and Fountain | 1.5 - 4.0% | 1.5 - 4.0% | 61.0 - 63.0% | 61.0 - 63.0% | |||
Operating Expenses | 7.0 - 9.0% | 7.0 - 9.0% | |||||
Depreciation and Amortization | 6.0 - 8.0% | 3.0 - 5.0% | |||||
New Store Construction | 60 stores | 60 stores | |||||
Acquisitions | 25 stores | 20 stores | |||||
Casey’s General Stores, Inc.
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Three Months Ended
|
Nine Months Ended
| ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Total revenue | $ | 2,248,198 | $ | 2,048,076 | $ | 7,362,413 | $ | 7,174,513 | |||||||
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) | 1,751,335 | 1,577,811 | 5,742,799 | 5,672,159 | |||||||||||
Operating expenses | 377,330 | 341,536 | 1,130,554 | 1,045,114 | |||||||||||
Depreciation and amortization | 63,285 | 61,324 | 185,981 | 181,520 | |||||||||||
Interest, net | 13,209 | 13,310 | 39,613 | 41,907 | |||||||||||
Income before income taxes | 43,039 | 54,095 | 263,466 | 233,813 | |||||||||||
Federal and state income taxes | 9,080 | 12,260 | 61,711 | 55,139 | |||||||||||
Net income | $ | 33,959 | $ | 41,835 | $ | 201,755 | $ | 178,674 | |||||||
Net income per common share | |||||||||||||||
Basic | $ | 0.92 | $ | 1.14 | $ | 5.47 | $ | 4.87 | |||||||
Diluted | $ | 0.91 | $ | 1.13 | $ | 5.43 | $ | 4.83 | |||||||
Basic weighted average shares | 36,920,960 | 36,717,415 | 36,901,338 | 36,694,308 | |||||||||||
Plus effect of stock compensation | 221,917 | 296,411 | 221,187 | 291,783 | |||||||||||
Diluted weighted average shares | 37,142,877 | 37,013,826 | 37,122,525 | 36,986,091 | |||||||||||
Casey’s General Stores, Inc.
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January 31, 2020 | April 30, 2019 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 43,539 | $ | 63,296 | |||
Receivables | 46,383 | 37,856 | |||||
Inventories | 263,185 | 273,040 | |||||
Prepaid expenses | 14,430 | 7,493 | |||||
Income tax receivable | 22,091 | 28,895 | |||||
Total current assets | 389,628 | 410,580 | |||||
Other assets, net of amortization | 70,815 | 41,154 | |||||
Goodwill | 157,648 | 157,223 | |||||
Property and equipment, net of accumulated depreciation of $1,983,258 at January 31, 2020 and $1,826,936 at April 30, 2019 | 3,303,943 | 3,122,419 | |||||
Total assets | $ | 3,922,034 | $ | 3,731,376 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Lines of credit | $ | 76,000 | $ | 75,000 | |||
Current maturities of long-term debt | 577,743 | 17,205 | |||||
Accounts payable | 275,903 | 335,240 | |||||
Accrued expenses | 175,176 | 163,487 | |||||
Total current liabilities | 1,104,822 | 590,932 | |||||
Long-term debt, net of current maturities | 715,121 | 1,283,275 | |||||
Deferred income taxes | 425,242 | 385,788 | |||||
Deferred compensation | 15,892 | 15,881 | |||||
Insurance accruals, net of current portion | 22,673 | 22,663 | |||||
Other long-term liabilities | 49,694 | 24,068 | |||||
Total liabilities | 2,333,444 | 2,322,607 | |||||
Total shareholders’ equity | 1,588,590 | 1,408,769 | |||||
Total liabilities and shareholders’ equity | $ | 3,922,034 | $ | 3,731,376 | |||
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, including our ability to execute our strategic plan or to realize benefits therefrom. 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 1/31/2020 | Fuel |
Grocery &
|
Prepared Food
| Other | Total | ||||||||||||||
Revenue | $ | 1,376,018 | $ | 582,407 | $ | 273,630 | $ | 16,143 | $ | 2,248,198 | |||||||||
Revenue less cost of goods sold (exclusive of depreciation and amortization) | $ | 124,257 | $ | 191,692 | $ | 164,795 | $ | 16,119 | $ | 496,863 | |||||||||
9.0 | % | 32.9 | % | 60.2 | % | 99.9 | % | 22.1 | % | ||||||||||
Fuel gallons | 572,746 | ||||||||||||||||||
Three months ended 1/31/2019 | |||||||||||||||||||
Revenue | $ | 1,233,620 | $ | 543,773 | $ | 256,144 | $ | 14,539 | $ | 2,048,076 | |||||||||
Revenue less cost of goods sold (exclusive of depreciation and amortization) | $ | 122,559 | $ | 173,512 | $ | 159,682 | $ | 14,512 | $ | 470,265 | |||||||||
9.9 | % | 31.9 | % | 62.3 | % | 99.8 | % | 23.0 | % | ||||||||||
Fuel gallons | 554,479 | ||||||||||||||||||
Summary by Category (Amounts in thousands) | |||||||||||||||||||
Nine months ended 1/31/2020 | Fuel |
Grocery &
|
Prepared Food
| Other | Total | ||||||||||||||
Revenue | $ | 4,518,061 | $ | 1,930,886 | $ | 867,353 | $ | 46,113 | $ | 7,362,413 | |||||||||
Revenue less cost of goods sold (excluding depreciation and amortization) | $ | 416,045 | $ | 627,278 | $ | 530,259 | $ | 46,032 | $ | 1,619,614 | |||||||||
9.2 | % | 32.5 | % | 61.1 | % | 99.8 | % | 22.0 | % | ||||||||||
Fuel gallons | 1,805,901 | ||||||||||||||||||
Nine months ended 1/31/2019 | |||||||||||||||||||
Revenue | $ | 4,502,904 | $ | 1,806,822 | $ | 820,208 | $ | 44,579 | $ | 7,174,513 | |||||||||
Revenue less cost of goods sold (excluding depreciation and amortization) | $ | 364,691 | $ | 582,629 | $ | 510,540 | $ | 44,494 | $ | 1,502,354 | |||||||||
8.1 | % | 32.2 | % | 62.2 | % | 99.8 | % | 20.9 | % | ||||||||||
Fuel gallons | 1,750,024 | ||||||||||||||||||
Fuel Gallons | Fuel Margin | |||||||||||||||||||||||||||||||||||||||
Same-store Sales | (Cents per gallon, excluding credit card fees) | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
Fiscal
| Q1 | Q2 | Q3 | Q4 |
Fiscal
| |||||||||||||||||||||||||||||||
F2020 | (2.0 | )% | (1.8 | )% | (2.0 | )% | F2020 | 24.4 | ¢ | 22.9 | ¢ | 21.7 | ¢ | |||||||||||||||||||||||||||
F2019 | 0.5 | (1.1 | ) | (3.4 | ) | (2.8 | )% | (1.7 | )% | F2019 | 20.5 | 20.0 | 22.1 | 18.6 | ¢ | 20.3 | ¢ | |||||||||||||||||||||||
F2018 | 1.7 | 1.9 | 3.8 | 2.0 | 2.3 | F2018 | 19.3 | 19.7 | 18.6 | 16.3 | 18.5 | |||||||||||||||||||||||||||||
Grocery & Other Merchandise | Grocery & Other Merchandise | |||||||||||||||||||||||||||||||||||||||
Same-store Sales | Margin | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
Fiscal
| Q1 | Q2 | Q3 | Q4 |
Fiscal
| |||||||||||||||||||||||||||||||
F2020 | 3.2 | % | 3.2 | % | 3.5 | % | F2020 | 31.3 | % | 33.3 | % | 32.9 | % | |||||||||||||||||||||||||||
F2019 | 3.2 | 2.7 | 3.4 | 5.7 | % | 3.6 | % | F2019 | 32.4 | 32.4 | 31.9 | 31.5 | % | 32.1 | % | |||||||||||||||||||||||||
F2018 | 3.1 | 2.5 | 2.5 | (0.4 | ) | 1.9 | F2018 | 31.9 | 32.0 | 31.9 | 31.2 | 31.8 | ||||||||||||||||||||||||||||
Prepared Food & Fountain | Prepared Food & Fountain | |||||||||||||||||||||||||||||||||||||||
Same-store Sales | Margin | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
Fiscal
| Q1 | Q2 | Q3 | Q4 |
Fiscal
| |||||||||||||||||||||||||||||||
F2020 | 1.6 | % | 1.9 | % | 2.8 | % | F2020 | 62.2 | % | 60.9 | % | 60.2 | % | |||||||||||||||||||||||||||
F2019 | 1.7 | 2.2 | 1.5 | 2.0 | % | 1.9 | % | F2019 | 62.0 | 62.4 | 62.3 | 62.2 | % | 62.2 | % | |||||||||||||||||||||||||
F2018 | 3.7 | 2.1 | 1.7 | (1.3 | ) | 1.7 | F2018 | 62.5 | 61.3 | 60.5 | 59.7 | 61.0 | ||||||||||||||||||||||||||||
Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on March 10, 2020. The call will be broadcast live over the Internet at 9:30 a.m. CST. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx. No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx for one year after the call.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200309005782/en/
Contacts:
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