Casey's General Stores (CASY) 8-K Results of Operations and Financial Condition

Exhibit 99.1

NEWS RELEASEFOR IMMEDIATE RELEASE
Casey’s General Stores, Inc. One Convenience Blvd. Ankeny, IA 50021	Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505

Casey’s Second Quarter Earnings Rise 26%

Ankeny, IA, December 10, 2014 — Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.28 for the second quarter of fiscal 2015 ended October 31, 2014, compared to $1.01 for the same quarter a year ago. Year to date, diluted earnings per share were $2.56 compared to $2.40 a year ago. “Total inside sales were up 13.6% and total fuel gallons sold were up 8.7% for the quarter,” said Chairman and CEO Robert J. Myers. “The positive sales performance, along with strong fuel margins, helped offset food commodity pressures the Company has experienced throughout the year.”

Fuel – The Company’s annual goal is to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. For the second quarter, same-store gallons sold were up 2.3% with an average margin of 19.5 cents per gallon. The Company sold 13 million renewable fuel credits for $6.3 million during the second quarter. “We believe same-store fuel sales have benefited from the lower retail prices as well as our fuel saver program,” said Myers. “Fuel margins remained strong through the second quarter due in part to a steady decline in wholesale costs.” Total gallons sold for the year were up 8.8% with an average margin of 19.2 cents per gallon. Year to date, same-store gallons were up 2.6%.

Grocery and Other Merchandise – Casey’s annual goal is to increase same-store sales 5.3% with an average margin of 32.1%. For the quarter, same-store sales were up 6.6% with an average margin of 32.3%. Myers stated, “The entire category continued to perform well through the second quarter. Packaged beverages are performing especially well, due in large part to our expanded cooler set in new, remodeled, and replaced stores.” Year to date, total sales for the category were $945.5 million and total gross profit was up 12.3% to $306.7 million. Same-store sales for the six months ended were up 7.2%.

Prepared Food & Fountain –The goal for fiscal 2015 is to increase same-store sales 9.5% with an average margin of 60%. For the second quarter, same-store sales were up 11.1% with an average margin of 59.3%. “Our operational initiatives continue to drive sales in the category, and we were able to implement strategic price adjustments at the beginning of the fiscal year,” said Myers. “While the margin has been impacted by high commodity costs, we have experienced a reduction in cheese costs since the end of the quarter.” Total sales for the category were up 17.1% to $395.8 million year-to-date while gross profit rose 12.9% to $235.8 million. Year to date, same store sales are up 11.1%.

Operating Expenses –Year to date, operating expenses increased 13.1% to $489.1 million. For the second quarter, operating expenses were up 13% to $244.8 million. “Operating expenses are up primarily due to newly built, acquired and replaced stores, along with the operational initiatives we have implemented to drive inside sales,” said Myers. “Store level operating expenses for locations that have not been impacted by the initiatives were up 4.2% for the quarter.”

Expansion – The Company’s annual goal is to build or acquire 72 to 108 stores and replace 25 existing stores. As of the end of the second quarter, the Company opened 21 new stores and acquired 29 stores. The Company also completed 13 replacements. “The Company is in excellent position to meet our expansion goal,” stated Myers. “We are pleased with the initial performance of our recently acquired chain of stores in the Fargo, North Dakota area, and our pipeline of new store construction sites is very full.” The Company currently has 26 new and 14 replacement stores under construction, as well as nine store acquisitions, 44 new sites, and 31 replacement sites under contract to purchase.

Dividend – At its December meeting, the Board of Directors declared a quarterly dividend of $0.20 per share. The dividend is payable February 16, 2015 to shareholders of record on February 2, 2015.

****

Casey’s General Stores, Inc. Condensed Consolidated Statements of Income (Dollars in thousands, except share and per share amounts) (Unaudited)

	Three months ended October 31,				Six months ended October 31,
	2014		2013		2014		2013
Total revenue	$	2,150,211		2,015,885	$	4,441,397		4,130,634
Cost of goods sold (exclusive of depreciation and amortization, shown separately below)		1,778,929		1,696,600		3,699,201		3,468,928
Gross profit		371,282		319,285		742,196		661,706
Operating expenses		244,781		216,529		489,099		432,503
Depreciation and amortization		37,275		32,416		73,524		62,917
Interest, net		10,360		9,896		20,866		19,472
Income before income taxes		78,866		60,444		158,707		146,814
Federal and state income taxes		28,997		21,014		58,741		53,589
Net Income	$	49,869		39,430	$	99,966		93,225
Net income per common share
Basic	$	1.29		1.03	$	2.59		2.43
Diluted	$	1.28		1.01	$	2.56		2.40
Basic weighted average shares		38,706,611		38,455,216		38,668,453		38,424,146
Plus effect of stock compensation		352,056		432,697		348,522		408,634
Diluted weighted average shares		39,058,667		38,887,913		39,016,975		38,832,780

Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

	October 31,		April 30,
	2014		2014
Assets
Current assets
Cash and cash equivalents	$	71,550	$	121,641
Receivables		31,034		25,841
Inventories		199,710		204,833
Prepaid expenses		2,674		1,478
Deferred income taxes		19,296		23,292
Income tax receivable		—		12,473
Total current assets		324,264		389,558
Other assets, net of amortization		16,847		15,947
Goodwill		127,031		120,406
Property and equipment, net of accumulated depreciation of $1,119,932 at October 31, 2014, and of $1,062,278 at April 30, 2014		1,933,766		1,778,965
Total assets	$	2,401,908	$	2,304,876
Liabilities and Shareholders’ Equity
Current liabilities
Notes payable to bank	$	—	$	—
Current maturities of long-term debt		7,888		553
Accounts payable		234,706		250,807
Accrued expenses		144,277		139,529
Income taxes payable		13,301
Total current liabilities		400,172		390,889
Long-term debt, net of current maturities		845,946		853,642
Deferred income taxes		318,478		318,023
Deferred compensation		17,193		16,558
Other long-term liabilities		20,017		22,500
Total liabilities		1,601,806		1,601,612
Total shareholders’ equity		800,102		703,264
Total liabilities and shareholders’ equity	$	2,401,908	$	2,304,876

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.

The previously announced revisions to our financial results for the fiscal 2015 first quarter and fiscal 2014 are reflected in year-to-date results and comparisons to prior periods.

Sales and Gross Profit by Product(Amounts in thousands)
Three months ended 10/31/14	Fuel			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Sales	$	1,470,768		$	466,934		$	201,196		$	11,313		$	2,150,211
Gross profit	$	89,637		$	151,025		$	119,322		$	11,298		$	371,282
Margin		6.1	%		32.3	%		59.3	%		99.9	%		17.3	%
Fuel gallons		460,740
Three months ended 10/31/13
Sales	$	1,416,980		$	416,552		$	171,751		$	10,602		$	2,015,885
Gross profit	$	67,816		$	134,708		$	106,171		$	10,590		$	319,285
Margin		4.8	%		32.3	%		61.8	%		99.9	%		15.8	%
Fuel gallons		423,895

Sales and Gross Profit by Product(Amounts in thousands)
Six months ended 10/31/14	Fuel			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Sales	$	3,077,895		$	945,520		$	395,807		$	22,175		$	4,441,397
Gross profit	$	177,506		$	306,710		$	235,834		$	22,146		$	742,196
Margin		5.8	%		32.4	%		59.6	%		99.9	%		16.7	%
Fuel gallons		924,954
Six months ended 10/31/13
Sales	$	2,931,854		$	840,137		$	337,999		$	20,644		$	4,130,634
Gross profit	$	159,044		$	273,119		$	208,925		$	20,618		$	661,706
Margin		5.4	%		32.5	%		61.8	%		99.9	%		16.0	%
Fuel gallons		850,444

Fuel Gallons
Same-store Sales Growth
	Q1			Q2			Q3			Q4			Fiscal Year
F2015		3.0	%		2.3	%
F2014		3.2			4.2			3.8	%		1.8	%		3.1	%
F2013		-0.2			-0.4			0.6			1.0			0.1

Grocery & Other Merchandise
Same-store Sales Growth
	Q1			Q2			Q3			Q4			Fiscal Year
F2015		7.7	%		6.6	%
F2014		6.1			10.2			6.5	%		7.2	%		7.4	%
F2013		2.6			-0.7			3.2			-0.2			0.8

Prepared Food & Fountain
Same-store Sales Growth
	Q1			Q2			Q3			Q4			Fiscal Year
F2015		11.1	%		11.1	%
F2014		11.9			12.3			10.7	%		12.1	%		11.8	%
F2013		10.6			10.1			11.6			4.4			8.6

Fuel Margin
(Cents per gallon, excluding credit card fees)
	Q1			Q2			Q3			Q4			Fiscal Year
F2015		18.9	¢		19.5	¢
F2014		21.4			16.0			13.6	¢		13.1	¢		16.1	¢
F2013		14.2			14.2			13.1			16.3			14.4

Grocery & Other Merchandise
Margin
	Q1			Q2			Q3			Q4			Fiscal Year
F2015		32.5	%		32.3	%
F2014		32.7			32.3			31.1	%		32.1	%		32.1	%
F2013		33.4			33.4			31.7			31.7			32.6

Prepared Food & Fountain
Margin
	Q1			Q2			Q3			Q4			Fiscal Year
F2015		59.9	%		59.3	%
F2014		61.8			61.8			60.8	%		60.1	%		61.1	%
F2013		63.5			62.5			60.6			60.5			61.8

Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on December 11, 2014. 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.