CASY
$115.09
Casey's General Stor
($1.06)
(.91%)
Earnings Details
1st Quarter July 2016
Tuesday, September 06, 2016 4:15:00 PM
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Summary

Casey's General Stor (CASY) Recent Earnings

Casey's General Stor (CASY) reported 1st Quarter July 2016 earnings of $1.70 per share on revenue of $2.0 billion. The consensus earnings estimate was $1.79 per share on revenue of $2.0 billion. Revenue fell 3.8% compared to the same quarter a year ago.

Casey' General Stores Inc, together with its subsidiaries, operates convenience stores under the Caseys General Store name in 14 Midwestern states. Its stores offers a selection of food, beverage, and tobacco products, as well as other nonfood items.

Results
Reported Earnings
$1.70
Earnings Whisper
-
Consensus Estimate
$1.79
Reported Revenue
$1.97 Bil
Revenue Estimate
$2.00 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Casey’s Posts Record First Quarter Earnings

Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.70 for the first quarter of fiscal 2017 ended July 31, 2016, compared to $1.57 per share for the same quarter a year ago. "Fuel gross profit dollars increased 19.1% for the quarter as both same-store gallons and margin exceeded goal," stated Terry Handley, President and CEO. "We were pleased with the performance inside our stores as gross profit dollars excluding fuel increased 6.7%, despite the recent weaknesses reported in the broader convenience and food service industries."

Fuel - The Company’s annual goal for fiscal 2017 is to increase same-store gallons sold 2% with an average margin of 18.4 cents per gallon. For the quarter, same-store gallons sold were up 3.1% with an average margin of 19.5 cents per gallon. The Company sold 17.9 million renewable fuel credits for $14.7 million during the first quarter. "Fuel margins finished above goal for the quarter due to elevated RIN values as well as a declining wholesale fuel cost environment experienced throughout the quarter," said Handley. "Same-store gallons sold continue to benefit from lower retail fuel prices and increased miles driven throughout our operating territory." Total gallons sold for the quarter were up 6.9% to 536 million gallons.

Grocery and Other Merchandise - Casey’s annual goal for fiscal 2017 is to increase same-store sales 6.2% with an average margin of 32%. For the quarter, same-store sales were up 4.7% with an average margin of 31.6%. "Same-store sales for the grocery and other merchandise category fell below goal due in part to a deceleration of cigarette sales from prior year," said Handley. Total grocery and other merchandise sales were up 7.5% to $566.2 million while total gross profit dollars increased 4.4% to $179.1 million.

Prepared Food and Fountain - The goal for fiscal 2017 is to increase same-store sales 10.2% with an average margin of 62.5%. Same-store sales for the quarter were up 5.1% with an average margin of 62.8%. "Although many retailers in the food service industry have reported a recent softening in traffic, we continue to see strong sales lifts from stores that recently implemented one or more of our growth programs. We will continue our disciplined rollout of these programs," said Handley. "The first quarter margin was above goal primarily due to lower commodity costs driven by the favorable cheese price locked in through December 2016." Total prepared food and fountain sales were up 9.1% to $243.7 million, and total gross profit dollars were up 9.6% to $153.1 million.

Operating Expenses - For the quarter, operating expenses were up 10.8% to $292.1 million. "The increase was in line with our expectations, and primarily driven by operating more stores this year compared to the same period one year ago, as well as the continued rollout of the various growth programs," said Handley. Store-level operating expenses for the quarter were up 5.4% at stores not impacted by growth programs.

Expansion - The Company’s annual goal for fiscal 2017 is to build or acquire 77 to 116 stores, replace 35 existing locations, and complete 100 major remodels. The Company currently has 39 new stores under construction, including its first store in the state of Ohio, and did not open any new store constructions during the first quarter. The Company also acquired three stores during the first quarter. In addition, the Company has 72 sites under contract for future new builds, and eight acquisition stores under contract to purchase. The Company also has 22 replacement stores under construction, and completed three replacements during the first quarter. Finally, the Company has 15 major remodels under construction, and completed six major remodels during the first quarter. "Our second distribution center in Terre Haute, Indiana, which became operational in February of 2016, opens new territory for future expansion. The state of Ohio will mark the Company’s 15th state of operation. We are excited about our future growth opportunities in both existing and new markets," said Handley.

Dividend - At its September meeting, the Board of Directors declared a quarterly dividend of $0.24 per share. The dividend is payable November 15, 2016 to shareholders of record on November 1, 2016.

Casey’s General Stores, Inc.
Condensed Consolidated
Statements of Income
(Dollars in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
July 31,
2016
2015
Total revenue
$
1,970,079
$
2,048,592
Cost of goods sold (exclusive of depreciation and amortization,
1,520,284
1,637,350
shown separately below)
Gross profit
449,795
411,242
Operating expenses
292,128
263,582
Depreciation and amortization
45,855
39,399
Interest, net
10,540
10,084
Income before income taxes
101,272
98,177
Federal and state income taxes
33,880
36,371
Net income
$
67,392
$
61,806
Net income per common share
Basic
$
1.72
$
1.59
Diluted
$
1.70
$
1.57
Basic weighted average shares
39,156,462
38,964,765
Plus effect of stock compensation
474,677
420,727
Diluted weighted average shares
39,631,139
39,385,492
Casey’s General Stores, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
July 31, 2016
April 30, 2016
Assets
Current assets
Cash and cash equivalents
$
189,490
$
75,775
Receivables
32,093
27,701
Inventories
205,773
204,988
Prepaid expenses
5,532
3,008
Income tax receivable
2,441
14,413
Total current assets
435,329
325,885
Other assets, net of amortization
19,382
18,981
Goodwill
128,791
128,566
Property and equipment, net of accumulated depreciation of
2,302,577
2,252,475
$1,378,006 at July 31, 2016 and $1,340,249 at April 30, 2016
Total assets
$
2,886,079
$
2,725,907
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt
15,404
15,375
Accounts payable
269,847
241,207
Accrued expenses
134,861
130,989
Total current liabilities
420,112
387,571
Long-term debt, net of current maturities
872,427
822,628
Deferred income taxes
406,774
394,934
Deferred compensation
17,872
17,813
Other long-term liabilities
19,851
19,498
Total liabilities
1,737,036
1,642,444
Total shareholders’ equity
1,149,043
1,083,463
Total liabilities and shareholders’ equity
$
2,886,079
$
2,725,907

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.

Revenue and Gross Profit by Product (Amounts in thousands)
Three months ended 7/31/2016
Fuel
Grocery & Other
Prepared Food
Other
Total
Merchandise
& Fountain
Revenue
$ 1,147,044
$
566,174
$
243,655
$ 13,206
$
1,970,079
Gross profit
$
104,429
$
179,127
$
153,052
$ 13,187
$
449,795
Margin
9.1 %
31.6 %
62.8 %
99.9 %
22.8 %
Fuel gallons
535,964
Three months ended 7/31/2015
Revenue
$ 1,286,241
$
526,620
$
223,382
$ 12,349
$
2,048,592
Gross profit
$
87,681
$
171,549
$
139,680
$ 12,332
$
411,242
Margin
6.8 %
32.6 %
62.5 %
99.9 %
20.1 %
Fuel gallons
501,169
Fuel Gallons
Fuel Margin
Same-store Sales Growth
Q1
Q2
Q3
Q4
Fiscal
Q1
Q2
Q3
Q4
Fiscal
Year
Year
F2017
3.1 %
19.5 ?
F2016
3.4
3.3 %
1.6 %
4.6 %
3.0 %
17.5
24.7 ?
18.1 ?
17.8 ?
19.6 ?
F2015
3.0
2.3
2.2
3.5
2.6
18.9
19.5
22.0
16.9
19.3
Grocery & Other Merchandise
Grocery & Other Merchandise
Same-store Sales Growth
Q1
Q2
Q3
Q4
Fiscal
Q1
Q2
Q3
Q4
Fiscal
Year
Year
F2017
4.7 %
31.6 %
F2016
7.0
7.5 %
7.1 %
7.4 %
7.1 %
32.6
31.5 %
31.2 %
32.1 %
31.9 %
F2015
7.7
6.6
7.7
9.7
7.8
32.5
32.3
31.2
32.1
32.1
Prepared Food & Fountain
Prepared Food & Fountain
Same-store Sales Growth
Q1
Q2
Q3
Q4
Fiscal
Q1
Q2
Q3
Q4
Fiscal
Year
Year
F2017
5.1 %
62.8 %
F2016
10.3
9.4 %
6.0 %
8.2 %
8.4 %
62.5
63.4 %
62.0 %
61.9 %
62.5 %
F2015
11.1
11.1
14.1
13.5
12.4
59.9
59.3
58.7
60.9
59.7

Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on September 7, 2016. The call will be broadcast live over the Internet at 9:30 a.m. CST via the Investor Relations section of our Web site and will be available in an archived format.

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SOURCE: Casey’s General Stores, Inc.

Casey’s General Stores, Inc.
Bill Walljasper, 515-965-6505