Exhibit 99.1
Casey’s Reports Another Record Year
Ankeny, Iowa, June 11, 2008—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported earnings for the fourth quarter and the fiscal year ended April 30, 2008. For the quarter, earnings per share from continuing operations were $0.28; for the year, they totaled $1.68. President and CEO Robert J. Myers stated, “We ended fiscal 2008 with a 17.6% increase in total gross profit and a 37.2% increase in net earnings. These results show the value of adhering to our long-term strategic plan and at the same time having the flexibility to adapt to a changing business environment.”
Gasoline—Casey’s annual goal was to increase same-store gasoline gallons sold 2% with an average margin of 10.7 cents per gallon. “Our longstanding policy of pricing with local competition has won us customer loyalty over the years,” said Myers. “High retail prices meant customers bought fewer gallons per visit in fiscal 2008, but same-store customer counts remained positive. Same-store gallons sold were down 2% from a year ago with an average margin of 13.9 cents per gallon.” Total gallons sold were up 1.8%, and gasoline gross profit rose to $168.9 million.
Grocery & Other Merchandise—The Company’s goal was to increase same-store sales 4.3% with an average margin of 32.2%. For the fiscal year, same-store sales were up 7.3% with a margin of 33.1%. Total sales rose 10.5% to $942.7 million, and gross profit was up 11.9% to $311.9 million. The growing popularity of high-margin beverages was a significant contributor to the gains. “The gross profit improvement is even more impressive in light of the previous year’s total reflecting a one-time benefit related to cigarettes that came to $4.8 million,” Myers added.
Prepared Food & Fountain—The annual goal was to increase same-store sales 8.4% with an average margin of 62%. Fiscal 2008 same-store sales grew 9.8%, and the average margin was 62.3%. Total sales were up 12.8% to $301.6 million, and gross profit grew 13.4% to $187.9 million. “This category continues to perform exceptionally well,” said Myers. “The strategic price increases we were able to take throughout the year and refinements to each store’s daily food production plans helped us extend our positive trends.”
Operating Expenses— Casey’s goal was to hold the percentage increase in operating expenses to less than the percentage increase in gross profit. Though operating expenses were outpaced by gross profit growth, they grew 15.6% mainly due to a rise in credit card fees, wages, and insurance claims. “The Company and the industry felt the impact of customers’ more frequent use of credit cards to pay for gasoline and the higher fees that resulted from rising retail prices,” Myers stated. “We are encouraged that our rate of increase in operating expenses slowed in the fourth quarter.”
Expansion—The goal was to acquire 50 stores and build 10 new stores. The Company acquired 12 stores and built none. “Acquisition activity was constrained by inflated seller expectations,” Myers explained.
“We will continue to seek attractive properties at reasonable prices and will resume building stores in the coming months. Senior Vice President Sam Billmeyer, a sixteen-year veteran of the Company, recently assumed leadership of store development and will oversee the rollout of our new store design.”
Fiscal 2009 Goals—Myers shared four corporate performance goals for fiscal 2009:
• | Increase same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon. |
• | Increase same-store grocery & other merchandise sales 7% with an average margin of 33.2%. |
• | Increase same-store prepared food & fountain sales 6.8% with an average margin of 61.6%. |
• | Increase the total number of stores 4%. |
Dividend—At its June meeting, the Board of Directors increased the quarterly dividend to $0.075 per share. The dividend is payable August 15, 2008 to shareholders of record on August 1, 2008.
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Casey’s General Stores, Inc. Consolidated Statements of Earnings (Dollars in thousands, except per share amounts) |
Three months ended April 30, | Year ended April 30, | |||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||
Total revenue | $ | 1,204,302 | $ | 1,002,862 | $ | 4,827,087 | $ | 4,024,010 | ||||
Cost of goods sold | 1,045,781 | 850,029 | 4,141,078 | 3,440,725 | ||||||||
Gross profit | 158,521 | 152,833 | 686,009 | 583,285 | ||||||||
Operating expenses | 116,910 | 106,398 | 474,555 | 410,459 | ||||||||
Depreciation and amortization | 16,962 | 16,847 | 67,607 | 63,895 | ||||||||
Interest, net | 2,780 | 3,224 | 9,792 | 11,184 | ||||||||
Earnings from continuing operations before income taxes and gain (loss) on discontinued operations | 21,869 | 26,364 | 134,055 | 97,747 | ||||||||
Federal and state income taxes | 7,406 | 8,337 | 49,051 | 34,205 | ||||||||
Earnings from continuing operations before loss on discontinued operations | 14,463 | 18,027 | 85,004 | 63,542 | ||||||||
Loss on discontinued operations, net of tax benefit of $37, $929, $72, and $1,055 | 57 | 1,453 | 113 | 1,651 | ||||||||
Net earnings | $ | 14,406 | $ | 16,574 | $ | 84,891 | $ | 61,891 | ||||
Basic | ||||||||||||
Earnings from continuing operations before loss on discontinued operations | $ | .28 | $ | .36 | $ | 1.68 | $ | 1.26 | ||||
Loss on discontinued operations | — | .03 | — | 0.03 | ||||||||
Net earnings per common share | $ | .28 | $ | .33 | $ | 1.68 | $ | 1.23 | ||||
Diluted | ||||||||||||
Earnings from continuing operations before loss on discontinued operations | $ | .28 | $ | .36 | $ | 1.67 | $ | 1.25 | ||||
Loss on discontinued operations | — | .03 | — | 0.03 | ||||||||
Net earnings per common share | $ | .28 | $ | .33 | $ | 1.67 | $ | 1.22 | ||||
Casey’s General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
April 30, 2008 | April 30, 2007 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 154,523 | $ | 107,067 | ||
Receivables | 16,662 | 13,432 | ||||
Inventories | 124,503 | 109,702 | ||||
Prepaid expenses | 9,817 | 7,685 | ||||
Income taxes receivable | 7,751 | 2,733 | ||||
Total current assets | 313,256 | 240,619 | ||||
Property and equipment, at cost | ||||||
Land | 249,842 | 233,887 | ||||
Buildings and leasehold improvements | 523,748 | 501,470 | ||||
Machinery and equipment | 655,270 | 620,620 | ||||
Leasehold interest in property and equipment | 15,194 | 15,452 | ||||
1,444,054 | 1,371,429 | |||||
Less accumulated depreciation and amortization | 595,316 | 538,121 | ||||
Net property and equipment | 848,738 | 833,308 | ||||
Other assets, net of amortization | 8,898 | 8,756 | ||||
Goodwill | 48,308 | 46,588 | ||||
Total assets | $ | 1,219,200 | $ | 1,129,271 | ||
Liabilities and Shareholders’ Equity | ||||||
Current liabilities | ||||||
Current maturities of long-term debt | $ | 34,383 | $ | 47,566 | ||
Accounts payable | 163,343 | 134,375 | ||||
Accrued expenses | ||||||
Property taxes | 13,877 | 13,097 | ||||
Insurance | 18,265 | 16,391 | ||||
Other | 29,231 | 22,838 | ||||
Total current liabilities | 259,099 | 234,267 | ||||
Long-term debt, net of current maturities | 181,443 | 199,504 | ||||
Deferred income taxes | 105,959 | 105,724 | ||||
Deferred compensation | 10,201 | 9,016 | ||||
Other long-term liabilities | 15,026 | 8,496 | ||||
Total liabilities | 571,728 | 557,007 | ||||
Total shareholders’ equity | 647,472 | 572,264 | ||||
Total liabilities and shareholders’ equity | $ | 1,219,200 | $ | 1,129,271 | ||
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.
Sales and Gross Profit by Product
(Amounts in thousands)
Year ended 4/30/08 | Gasoline | Grocery & Other Merchandise | Prepared Food & Fountain | Other | Total | |||||||||||||||
Sales | $ | 3,558,108 | $ | 942,659 | $ | 301,598 | $ | 24,722 | $ | 4,827,087 | ||||||||||
Gross profit | $ | 168,859 | $ | 311,863 | $ | 187,947 | $ | 17,340 | $ | 686,009 | ||||||||||
Margin | 4.7 | % | 33.1 | % | 62.3 | % | 70.1 | % | 14.2 | % | ||||||||||
Gasoline gallons | 1,214,547 | |||||||||||||||||||
Year ended 4/30/07 | ||||||||||||||||||||
Sales | $ | 2,881,054 | $ | 852,812 | $ | 267,273 | $ | 22,871 | $ | 4,024,010 | ||||||||||
Gross profit | $ | 124,094 | $ | 278,650 | $ | 165,764 | $ | 14,777 | $ | 583,285 | ||||||||||
Margin | 4.3 | % | 32.7 | % | 62.0 | % | 64.6 | % | 14.5 | % | ||||||||||
Gasoline gallons | 1,193,554 |
Gasoline Gallons Same-store Sales Growth |
| Gasoline Margin (Cents per gallon, excluding credit card fees) |
| |||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | |||||||||||||||||||||||||
F2008 | 0.3 | % | -1.6 | % | -3.9 | % | -2.5 | % | -2.0 | % | F2008 | 15.8 | ¢ | 13.6 | ¢ | 13.5 | ¢ | 12.6 | ¢ | 13.9 | ¢ | |||||||||||||
F2007 | -2.9 | 2.7 | 4.0 | 2.8 | 1.4 | F2007 | 9.8 | 9.4 | 10.5 | 11.8 | 10.4 | |||||||||||||||||||||||
F2006 | 7.7 | 4.3 | 4.2 | 0.5 | 4.4 | F2006 | 11.8 | 14.1 | 9.2 | 10.6 | 11.5 | |||||||||||||||||||||||
Grocery & Other Merchandise Same-store Sales Growth |
| Grocery & Other Merchandise Margin |
| |||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | |||||||||||||||||||||||||
F2008 | 9.1 | % | 11.2 | % | 5.4 | % | 3.6 | % | 7.3 | % | F2008 | 34.0 | % | 33.1 | % | 31.9 | % | 33.2 | % | 33.1 | % | |||||||||||||
F2007 | 2.3 | 3.5 | 6.7 | 7.3 | 4.6 | F2007 | 32.2 | 32.6 | 30.8 | 35.0 | 32.7 | |||||||||||||||||||||||
F2006 | 7.4 | 4.5 | 5.3 | 4.2 | 5.7 | F2006 | 32.1 | 33.5 | 31.3 | 31.7 | 32.2 | |||||||||||||||||||||||
Prepared Food & Fountain Same-store Sales Growth |
| Prepared Food & Fountain Margin |
| |||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Fiscal Year | Q1 | Q2 | Q3 | Q4 | Fiscal Year | |||||||||||||||||||||||||
F2008 | 9.5 | % | 10.6 | % | 8.4 | % | 11.2 | % | 9.8 | % | F2008 | 61.7 | % | 63.0 | % | 63.6 | % | 60.9 | % | 62.3 | % | |||||||||||||
F2007 | 9.5 | 13.7 | 11.9 | 8.5 | 11.0 | F2007 | 62.9 | 61.6 | 62.1 | 61.6 | 62.0 | |||||||||||||||||||||||
F2006 | 7.2 | 4.5 | 9.9 | 7.4 | 7.4 | F2006 | 64.0 | 64.6 | 62.6 | 60.9 | 63.0 |
Corporate information is available at this Web site:http://www.caseys.com. Earnings will be reported during
a conference call on June 12, 2008. The call will be broadcast live over the Internet at 9:30 a.m. CT via the
Investor Relations section of our Web site and will be available in an archived format.