Exhibit 99.1
NEWS RELEASE FOR IMMEDIATE RELEASE | ||
Casey’s General Stores, Inc. One Convenience Blvd. Ankeny, IA 50021 | Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505 |
Casey’s Posts 28% Increase on Year-To-Date Net Income
Ankeny, IA, March 7, 2016 - Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $0.97 for the third quarter of fiscal 2016 ended January 31, 2016, compared to $1.01 per share for the same quarter a year ago. Year to date, diluted earnings per share were $4.54 versus $3.57 a year ago. “Total inside gross profit was up over 13% in the third quarter, driven primarily by improved margin performance in our prepared food category,” stated Chairman and CEO Robert J. Myers. “Our fuel margin per gallon was above our annual goal but still below prior year’s strong results, which impacted diluted earnings per share by approximately 30 cents compared to prior year’s third quarter.”
Fuel - The Company's annual goal for fiscal 2016 is to increase same-store gallons sold 2% with an average margin of 16.7 cents per gallon. For the third quarter, same-store gallons sold were up 1.6% with an average margin of 18.1 cents per gallon. The Company sold 15.2 million renewable fuel credits for $9.2 million during the third quarter. “Fuel margins finished above goal for the third quarter due to elevated RIN values as well as a decline in wholesale fuel costs towards the end of the quarter,” said Myers. “Same-store gallons sold dipped slightly below our goal in the third quarter; however year-to-date same store gallons are up 2.7%.” Total gallons sold were up 7.1% with an average margin of 20.1 cents per gallon year to date.
Grocery and Other Merchandise - Casey's annual goal for fiscal 2016 is to increase same-store sales 6.2% with an average margin of 32.1%. For the third quarter, same-store sales were up 7.1% with an average margin of 31.2%. “Cigarette sales continue to benefit from lower retail fuel prices, and sales in the entire category performed well in the third quarter,” said Myers. “Margin has been slightly impacted by the increased contribution of cigarettes, and performed in line with prior year's third quarter." For the year, total sales were up 10.2% with an average margin of 31.8%. Year to date, same-store sales were up 7.1%.
Prepared Food and Fountain - The goal for fiscal 2016 is to increase same-store sales 10.4% with an average margin of 60.8%. Same-store sales for the third quarter were up 6.0% with an average margin of 62.0%. “The 330 basis point increase in margin from prior year’s third quarter was primarily due to lower commodity costs, and we have taken advantage of this favorable environment to lock in cheese costs through December 31, 2016,” said Myers. “Challenging weather and strong prior year sales comparisons resulted in same-store sales falling below goal in this quarter. However, gross profit dollars were up over 16% for the category. We remain optimistic about future growth in this category, as we plan to implement pizza delivery in an additional 45 stores and complete 40 major remodels in the fourth quarter.” Year to date, total sales were up 13.0% to $662.4 million compared to the first nine months last year, and gross profit dollars were up 19.5% to $415.2 million. Year to date, same-store sales were up 8.5% with an average margin of 62.7%.
Operating Expenses - For the third quarter, operating expenses were up 8.7% to $259.6 million. Year to date, operating expenses also increased 8.7% to $791.2 million.“Both the quarter-to-date and year-to-date increases were primarily driven by operating more stores this year compared to the same periods one year ago, and the continued rollout of 24-hour conversions, pizza delivery service, and major remodels,” said Myers. “The Company continued
to benefit from lower fuel prices during the quarter as the increase in operating expenses was partially offset by a $1.1 million decrease in transportation costs due to lower fuel prices."
Expansion - The Company’s annual goal is to build or acquire 75 to 113 stores, replace 10 existing locations and complete 100 major remodels. As of the end of the third fiscal quarter, the Company completed 31 new-store constructions and acquired three stores. The Company also completed 11 replacements and 60 major remodels. The Company currently has 22 new stores under construction and another 59 sites under contract for future new builds. “We continue to remain patient with acquisitions, and are excited about our future expansion opportunities as our second distribution center in Terre Haute, Indiana is now operational,” said Myers.
Dividend - At its March meeting, the Board of Directors declared a quarterly dividend of $0.22 per share. The dividend is payable May 16, 2016 to shareholders of record on May 2, 2016.
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Casey’s General Stores, Inc.
Condensed Consolidated
Statements of Income
(Dollars in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenue | $ | 1,565,940 | $ | 1,671,961 | $ | 5,539,132 | $ | 6,113,358 | |||||||
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) | 1,194,771 | 1,320,915 | 4,313,731 | 5,020,116 | |||||||||||
Gross profit | 371,169 | 351,046 | 1,225,401 | 1,093,242 | |||||||||||
Operating expenses | 259,625 | 238,782 | 791,185 | 727,881 | |||||||||||
Depreciation and amortization | 43,822 | 40,431 | 125,028 | 113,955 | |||||||||||
Interest, net | 10,132 | 10,191 | 30,225 | 31,057 | |||||||||||
Income before income taxes | 57,590 | 61,642 | 278,963 | 220,349 | |||||||||||
Federal and state income taxes | 19,491 | 22,323 | 100,025 | 81,064 | |||||||||||
Net income | $ | 38,099 | $ | 39,319 | $ | 178,938 | $ | 139,285 | |||||||
Net income per common share | |||||||||||||||
Basic | $ | 0.98 | $ | 1.01 | $ | 4.59 | $ | 3.60 | |||||||
Diluted | $ | 0.97 | $ | 1.01 | $ | 4.54 | $ | 3.57 | |||||||
Basic weighted average shares | 39,033,987 | 38,795,477 | 39,003,820 | 38,701,232 | |||||||||||
Plus effect of stock compensation | 403,421 | 322,674 | 397,551 | 309,125 | |||||||||||
Diluted weighted average shares | 39,437,408 | 39,118,151 | 39,401,371 | 39,010,357 |
The previously announced revisions to our financial results regarding an immaterial correction of an error for the fiscal 2015 first quarter are reflected in prior period year-to-date results.
Casey’s General Stores, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
January 31, 2016 | April 30, 2015 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 53,563 | $ | 48,541 | |||
Receivables | 23,940 | 22,609 | |||||
Inventories | 189,722 | 197,331 | |||||
Prepaid expenses | 3,669 | 2,025 | |||||
Deferred income taxes | 18,831 | 15,531 | |||||
Income tax receivable | 15,001 | 19,223 | |||||
Total current assets | 304,726 | 305,260 | |||||
Other assets, net of amortization | 18,290 | 18,295 | |||||
Goodwill | 127,981 | 127,046 | |||||
Property and equipment, net of accumulated depreciation of $1,297,852 at January 31, 2016 and $1,185,246 at April 30, 2015 | 2,219,552 | 2,019,364 | |||||
Total assets | $ | 2,670,549 | $ | 2,469,965 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Notes payable to bank | $ | 2,800 | $ | — | |||
Current maturities of long-term debt | 15,380 | 15,398 | |||||
Accounts payable | 206,639 | 226,577 | |||||
Accrued expenses | 134,933 | 122,914 | |||||
Total current liabilities | 359,752 | 364,889 | |||||
Long-term debt, net of current maturities | 830,466 | 838,245 | |||||
Deferred income taxes | 399,824 | 354,973 | |||||
Deferred compensation | 17,102 | 17,645 | |||||
Other long-term liabilities | 20,275 | 18,984 | |||||
Total liabilities | 1,627,419 | 1,594,736 | |||||
Total shareholders’ equity | 1,043,130 | 875,229 | |||||
Total liabilities and shareholders’ equity | $ | 2,670,549 | $ | 2,469,965 |
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 1/31/2016 | Fuel | Grocery & Other Merchandise | Prepared Food & Fountain | Other | Total | ||||||||||||||
Revenue | $ | 888,744 | $ | 453,388 | $ | 209,595 | $ | 14,213 | $ | 1,565,940 | |||||||||
Gross profit | $ | 85,460 | $ | 141,482 | $ | 130,027 | $ | 14,200 | $ | 371,169 | |||||||||
Margin | 9.6 | % | 31.2 | % | 62.0 | % | 99.9 | % | 23.7 | % | |||||||||
Fuel gallons | 472,259 | ||||||||||||||||||
Three months ended 1/31/2015 | |||||||||||||||||||
Revenue | $ | 1,056,458 | $ | 412,711 | $ | 190,393 | $ | 12,399 | $ | 1,671,961 | |||||||||
Gross profit | $ | 98,418 | $ | 128,572 | $ | 111,672 | $ | 12,384 | $ | 351,046 | |||||||||
Margin | 9.3 | % | 31.2 | % | 58.7 | % | 99.9 | % | 21.0 | % | |||||||||
Fuel gallons | 446,842 |
Revenue and Gross Profit by Product (Amounts in thousands) | |||||||||||||||||||
Nine months ended 1/31/2016 | Fuel | Grocery & Other Merchandise | Prepared Food & Fountain | Other | Total | ||||||||||||||
Revenue | $ | 3,341,721 | $ | 1,496,586 | $ | 662,364 | $ | 38,461 | $ | 5,539,132 | |||||||||
Gross profit | $ | 295,830 | $ | 475,935 | $ | 415,220 | $ | 38,416 | $ | 1,225,401 | |||||||||
Margin | 8.9 | % | 31.8 | % | 62.7 | % | 99.9 | % | 22.1 | % | |||||||||
Fuel gallons | 1,469,654 | ||||||||||||||||||
Nine months ended 1/31/2015 | |||||||||||||||||||
Revenue | $ | 4,134,353 | $ | 1,358,231 | $ | 586,199 | $ | 34,575 | $ | 6,113,358 | |||||||||
Gross profit | $ | 275,923 | $ | 435,282 | $ | 347,506 | $ | 34,531 | $ | 1,093,242 | |||||||||
Margin | 6.7 | % | 32.0 | % | 59.3 | % | 99.9 | % | 17.9 | % | |||||||||
Fuel gallons | 1,371,796 |
Fuel Gallons | Fuel Margin | ||||||||||||||||||||||||||||||||||
Same-store Sales Growth | (Cents per gallon, excluding credit card fees) | ||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | ||||||||||||||||||||||||||
F2016 | 3.4 | % | 3.3 | % | 1.6 | % | F2016 | 17.5 | ¢ | 24.7 | ¢ | 18.1 | ¢ | ||||||||||||||||||||||
F2015 | 3.0 | 2.3 | 2.2 | 3.5 | % | 2.6 | % | F2015 | 18.9 | 19.5 | 22.0 | 16.9 | ¢ | 19.3 | ¢ | ||||||||||||||||||||
F2014 | 3.2 | 4.2 | 3.8 | 1.8 | 3.1 | F2014 | 21.4 | 16.0 | 13.6 | 13.1 | 16.1 |
Grocery & Other Merchandise | Grocery & Other Merchandise | |||||||||||||||||||||||||||||
Same-store Sales Growth | Margin | |||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | |||||||||||||||||||||
F2016 | 7.0 | % | 7.5 | % | 7.1 | % | F2016 | 32.6 | % | 31.5 | % | 31.2 | % | |||||||||||||||||
F2015 | 7.7 | 6.6 | 7.7 | 9.7 | % | 7.8 | % | F2015 | 32.5 | 32.3 | 31.2 | 32.1 | % | 32.1 | % | |||||||||||||||
F2014 | 6.1 | 10.2 | 6.5 | 7.2 | 7.4 | F2014 | 32.7 | 32.3 | 31.1 | 32.1 | 32.1 |
Prepared Food & Fountain | Prepared Food & Fountain | |||||||||||||||||||||||||||||
Same-store Sales Growth | Margin | |||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | |||||||||||||||||||||
F2016 | 10.3 | % | 9.4 | % | 6.0 | % | F2016 | 62.5 | % | 63.4 | % | 62.0 | % | |||||||||||||||||
F2015 | 11.1 | 11.1 | 14.1 | 13.5 | % | 12.4 | % | F2015 | 59.9 | 59.3 | 58.7 | 60.9 | % | 59.7 | % | |||||||||||||||
F2014 | 11.9 | 12.3 | 10.7 | 12.1 | 11.8 | F2014 | 61.8 | 61.8 | 60.8 | 60.1 | 61.1 |