ANKENY, Iowa--(BUSINESS WIRE)--
Casey’s General Stores, Inc. ("Casey's", or the "Company") (Nasdaq
symbol CASY) today reported diluted earnings per share of $0.68 for the
fourth quarter of its fiscal year ended April 30, 2019, compared to
$0.51 for the same period a year ago. Diluted earnings per share was
$5.51 for the year, compared to $3.81 last year, or $8.34 when including
the one-time benefit of the adoption of the Tax Cuts and Jobs Act.
Income before income taxes grew nearly 58% and 23% for the fourth
quarter and fiscal year, respectively. “The combination of gross profit
dollar margin expansion, a focus on controlling operating expense
growth, and opening more stores were the primary drivers of that
growth,” stated Terry Handley, President and Chief Executive Officer.
“We are pleased with our fiscal 2019 results. The entire team
demonstrated a focused effort to drive the business forward while
working diligently to build out new capabilities that will support
future earnings growth, including completing several value creation plan
milestones in the fourth quarter.”
Value Creation Plan Update - The Company has completed or made
progress on the following value creation plan activities:
-
Successfully launched the new Caseys.com e-commerce website
-
Launched fuel price optimization platform in all stores
-
At fiscal year end, the new fleet card program has over 2,000 active
cards and 500 new accounts
-
Completed inside price optimization store test with planned rollout in
fiscal 2020
-
Piloting new in-store order management system with expected launch in
first half of fiscal 2020
-
Expecting launch of enhanced mobile app in first quarter of fiscal 2020
Fuel
- For the quarter, the average margin was 18.6 cents
per gallon, compared to 16.3 cents per gallon for the same quarter a
year ago. Same-store gallons sold in the quarter decreased 2.8%. “The
Company experienced a challenging wholesale cost environment throughout
the quarter,” stated Handley. “However, our balanced approach to retail
fuel pricing resulted in a considerable increase in gross profit when
compared to the fourth quarter a year ago.” Total gross profit dollars
for the quarter increased over 17% to $101.4 million, while total
gallons sold for the quarter increased 2.6% to 546.0 million. For fiscal
2019, total gross profit dollars were up 14.6% to $466.1 million, while
total gallons sold were up 4.4% to 2.3 billion. For the year, same-store
gallons sold were down 1.7% with an average margin of 20.3 cents per
gallon. “Moving forward, we remain confident the newly-implemented
capabilities in retail fuel pricing and fuel procurement will further
enhance fuel profitability,” added Handley.
Grocery and Other Merchandise - For the fourth quarter,
same-store sales were up 5.7% with an average margin of 31.5%.
Same-store sales for the fiscal year were up 3.6% with an average margin
of 32.1%. “Refinements in product offerings and promotional strategies
in higher margin items contributed to increased same-store sales growth
and margin expansion comparatively for the fourth quarter and fiscal
year,” said Handley. Total sales for the quarter were up nearly 10% to
$562.7 million while total gross profit dollars increased 10.8% to
$177.2 million. For the year, total sales were up 8.5% to $2.4 billion
and gross profit dollars increased 9.6% to $759.8 million. “The
successful inside price optimization store test and eminent rollout will
provide our diverse store base dynamic pricing capabilities to meet
today’s ever-changing competitive landscape, and will further support
ongoing growth in gross profit dollars to the category,” said Handley.
Prepared Food and Fountain - For the fourth quarter, same-store
sales were up 2.0% with an average margin of 62.2%. “Continued benefits
from strategic price increases, favorable commodity costs and changes in
promotional campaigns resulted in considerable margin expansion in the
fourth quarter compared to the same time period a year ago,” said
Handley. Total gross profit dollars for the quarter were up nearly 10%
to $158.1 million while total sales increased 5.4% to $254.1 million.
For fiscal 2019, total gross profit dollars rose 8.9% to $668.6 million,
and total sales increased 6.8% to $1.1 billion. Same-store sales for
fiscal 2019 were up 1.9% with an average margin of 62.2%. “The recent
launch of the new Caseys.com e-commerce website marked a key milestone
in our digital transformation journey,” said Handley. “We are confident
these digital capabilities, combined with our new price optimization
platform, will improve our competitive position and increase gross
profit dollars to the category.”
Operating Expenses - For the fourth quarter, operating expenses
were up 9.6% to $346.2 million. For the fiscal year, operating expenses
increased 8.4% to $1.4 billion. “Both the quarter and full year increase
in operating expenses was primarily due to operating more stores than
the same time a year ago offset by a reduction in employee costs at
same-stores,” said Handley. Fourth quarter operating expenses were also
impacted by lapping the reduction in 24-hour and pizza delivery formats
from prior year, along with increases in technology expenses and credit
card fees. Same-store operating expenses excluding credit card fees were
down 1.1% and 0.6% for the quarter and full year, respectively. “A focus
on aligning labor with customer trends throughout the fiscal year
contributed to the Company’s strong earnings growth,” added Handley.
“Process improvements and new capabilities are under way across the
business focused on driving efficiencies and enhancing future earnings
growth.”
Expansion - The following table represents the roll forward of
store growth through the fourth quarter of fiscal 2019:
|
|
|
|
|
|
|
Store Count
|
Stores at 4/30/18
|
|
|
2,073
|
New Store Construction
|
|
|
56
|
Acquisitions
|
|
|
24
|
Acquisitions not opened
|
|
|
(2)
|
Prior Acquisitions opened
|
|
|
5
|
Closed
|
|
|
(10)
|
Stores at 4/30/19
|
|
|
2,146
|
|
|
|
|
As of April 30, 2019, the Company had 8 acquisition stores under
agreement to purchase and a new store pipeline of 81 sites, including 41
under construction.
Share Repurchase Program - The Company has $300 million remaining
on its authorization from March 2018. There were no repurchases made
against that authorization in the fourth quarter.
Fiscal 2020 Guidance - The corporate performance guidance for
fiscal 2020 is as follows:
|
|
|
|
|
|
|
Same-store Sales
|
|
Average Margin
|
Fuel (Gallons and CPG)
|
|
(.5%) - 1.0%
|
|
20.5 - 22.5
|
Grocery and Other Merchandise
|
|
2.5 - 4.0%
|
|
32.0 - 33.0%
|
Prepared Food and Fountain
|
|
3.0 - 6.0%
|
|
61.0 - 63.0%
|
|
|
|
|
|
|
|
Other Guidance
|
|
|
Operating Expenses (including expenses from value creation plan)
|
|
7.0 - 9.0%
|
|
|
Depreciation and Amortization
|
|
11.0 - 13.0%
|
|
|
New Store Construction
|
|
60 stores
|
|
|
Acquisitions
|
|
25 stores
|
|
|
|
|
|
|
|
Dividend - For the last 19 years, the Company has increased its
annual dividend to shareholders. At its June meeting, the Board of
Directors increased the quarterly dividend from $0.29 to $0.32 per
share. The dividend is payable August 15, 2019 to shareholders of record
on August 1, 2019.
|
|
|
|
|
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,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Total revenue
|
|
$
|
2,178,397
|
|
|
2,089,037
|
|
|
$
|
9,352,910
|
|
|
8,391,124
|
|
Cost of goods sold (exclusive of depreciation and amortization,
shown separately below)
|
|
|
1,726,027
|
|
|
1,683,922
|
|
|
|
7,398,186
|
|
|
6,621,731
|
|
Operating expenses
|
|
|
346,165
|
|
|
315,809
|
|
|
|
1,391,279
|
|
|
1,283,046
|
|
Depreciation and amortization
|
|
|
62,867
|
|
|
57,402
|
|
|
|
244,387
|
|
|
220,970
|
|
Interest, net
|
|
|
13,749
|
|
|
13,119
|
|
|
|
55,656
|
|
|
50,940
|
|
Income before income taxes
|
|
|
29,589
|
|
|
18,785
|
|
|
|
263,402
|
|
|
214,437
|
|
Federal and state income taxes
|
|
|
4,377
|
|
|
(477
|
)
|
|
|
59,516
|
|
|
(103,466
|
)
|
Net income
|
|
$
|
25,212
|
|
|
19,262
|
|
|
$
|
203,886
|
|
|
317,903
|
|
Net income per common share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.69
|
|
|
0.52
|
|
|
$
|
5.55
|
|
|
8.41
|
|
Diluted
|
|
$
|
0.68
|
|
|
0.51
|
|
|
$
|
5.51
|
|
|
8.34
|
|
Basic weighted average shares
|
|
|
36,752,152
|
|
|
37,298,281
|
|
|
|
36,709,940
|
|
|
37,778,304
|
|
Plus effect of stock compensation
|
|
|
268,779
|
|
|
353,010
|
|
|
|
265,447
|
|
|
353,795
|
|
Diluted weighted average shares
|
|
|
37,020,931
|
|
|
37,651,291
|
|
|
|
36,975,387
|
|
|
38,132,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casey’s General Stores, Inc.
Condensed Consolidated
Balance Sheets
(Dollars in thousands) (Unaudited)
|
|
|
|
|
|
|
|
April 30, 2019
|
|
April 30, 2018
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
63,296
|
|
|
$
|
53,679
|
|
Receivables
|
|
|
37,856
|
|
|
|
45,045
|
|
Inventories
|
|
|
273,040
|
|
|
|
241,668
|
|
Prepaid expenses
|
|
|
7,493
|
|
|
|
5,766
|
|
Income tax receivable
|
|
|
28,895
|
|
|
|
50,682
|
|
Total current assets
|
|
|
410,580
|
|
|
|
396,840
|
|
Other assets, net of amortization
|
|
|
52,947
|
|
|
|
29,909
|
|
Goodwill
|
|
|
157,223
|
|
|
|
140,258
|
|
Property and equipment, net of accumulated depreciation
|
|
|
3,110,626
|
|
|
|
2,902,920
|
|
Total assets
|
|
$
|
3,731,376
|
|
|
$
|
3,469,927
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Notes payable to bank
|
|
$
|
75,000
|
|
|
$
|
39,600
|
|
Current maturities of long-term debt
|
|
|
17,205
|
|
|
|
15,374
|
|
Accounts payable
|
|
|
335,240
|
|
|
|
321,419
|
|
Accrued expenses
|
|
|
163,487
|
|
|
|
131,457
|
|
Total current liabilities
|
|
|
590,932
|
|
|
|
507,850
|
|
Long-term debt, net of current maturities
|
|
|
1,283,275
|
|
|
|
1,291,725
|
|
Deferred income taxes
|
|
|
385,788
|
|
|
|
341,946
|
|
Deferred compensation
|
|
|
15,881
|
|
|
|
15,928
|
|
Insurance accruals, net of current portion
|
|
|
22,663
|
|
|
|
19,748
|
|
Other long-term liabilities
|
|
|
24,068
|
|
|
|
21,589
|
|
Total liabilities
|
|
|
2,322,607
|
|
|
|
2,198,786
|
|
Total shareholders’ equity
|
|
|
1,408,769
|
|
|
|
1,271,141
|
|
Total liabilities and shareholders’ equity
|
|
$
|
3,731,376
|
|
|
$
|
3,469,927
|
|
|
|
|
|
|
|
|
|
|
|
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 value creation
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 4/30/2019
|
|
Fuel
|
|
Grocery & Other Merchandise
|
|
Prepared Food & Fountain
|
|
Other
|
|
Total
|
Revenue
|
|
$
|
1,345,866
|
|
|
$
|
562,699
|
|
|
$
|
254,086
|
|
|
$
|
15,746
|
|
|
$
|
2,178,397
|
|
Revenue less cost of goods sold (exclusive of depreciation and
amortization)
|
|
$
|
101,417
|
|
|
$
|
177,188
|
|
|
$
|
158,057
|
|
|
$
|
15,708
|
|
|
$
|
452,370
|
|
Margin
|
|
|
7.5
|
%
|
|
|
31.5
|
%
|
|
|
62.2
|
%
|
|
|
99.8
|
%
|
|
|
20.8
|
%
|
Fuel gallons
|
|
|
546,006
|
|
|
|
|
|
|
|
|
|
Three months ended 4/30/2018
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
Summary by Category (Amounts in thousands)
|
Twelve months ended 4/30/2019
|
|
Fuel
|
|
Grocery & Other Merchandise
|
|
Prepared Food & Fountain
|
|
Other
|
|
Total
|
Revenue
|
|
$
|
5,848,770
|
|
|
$
|
2,369,521
|
|
|
$
|
1,074,294
|
|
|
$
|
60,325
|
|
|
$
|
9,352,910
|
|
Revenue less cost of goods sold (exclusive of depreciation and
amortization)
|
|
$
|
466,107
|
|
|
$
|
759,817
|
|
|
$
|
668,598
|
|
|
$
|
60,202
|
|
|
$
|
1,954,724
|
|
Margin
|
|
|
8.0
|
%
|
|
|
32.1
|
%
|
|
|
62.2
|
%
|
|
|
99.8
|
%
|
|
|
20.9
|
%
|
Fuel gallons
|
|
|
2,296,030
|
|
|
|
|
|
|
|
|
|
Twelve months ended 4/30/2018
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel Gallons
|
|
|
Fuel Margin
|
Same-store Sales
|
|
|
(Cents per gallon, excluding credit card fees)
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Fiscal Year
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Fiscal Year
|
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
|
|
F2017
|
|
3.1
|
|
|
3.7
|
|
|
2.6
|
|
|
(0.5
|
)
|
|
2.1
|
|
|
|
F2017
|
|
19.5
|
|
|
18.6
|
|
|
17.9
|
|
|
17.2
|
|
|
18.4
|
|
|
|
|
|
|
|
|
|
|
|
Grocery & Other Merchandise
|
|
|
Grocery & Other Merchandise
|
Same-store Sales
|
|
Margin
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Fiscal Year
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Fiscal Year
|
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
|
|
F2017
|
|
4.7
|
|
|
3.1
|
|
|
3.0
|
|
|
1.5
|
|
|
2.9
|
|
|
F2017
|
|
31.6
|
|
|
32.0
|
|
|
31.1
|
|
|
31.1
|
|
|
31.5
|
|
|
|
|
|
|
|
|
|
|
|
Prepared Food & Fountain
|
|
|
Prepared Food & Fountain
|
Same-store Sales
|
|
Margin
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Fiscal Year
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Fiscal Year
|
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
|
|
F2017
|
|
5.1
|
|
|
5.1
|
|
|
5.8
|
|
|
3.2
|
|
|
4.8
|
|
|
F2017
|
|
62.8
|
|
|
62.9
|
|
|
61.7
|
|
|
61.7
|
|
|
62.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate information is available at this website:
https://www.caseys.com
.
Earnings will be reported during a conference call on June 11, 2019. 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 Press Releases and
Webcasts 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/20190610005737/en/
Bill Walljasper
(515) 965-6505
Source: Casey’s General Stores, Inc.