Casey’s General Stores, Inc. (Nasdaq:CASY) yesterday reported results for the second quarter ended October 31, 2000 and for the fiscal year to date. Basic earnings for the quarter were $0.28 per share, up 16.7% from those for the same quarter of the prior year; year to date, basic earnings came to $0.60 per share, an increase of 15.4%. Chairman Donald F. Lamberti said, “Our second quarter was a good one despite the impact of high gasoline prices on sales overall.”
“In its 2000 annual report, the Company published four performance goals for fiscal year 2001. The first is to increase gasoline gallons sold 10-12% with an average margin of 10.5 cents per gallon. In the second quarter Casey’s sold 203.6 million gallons of gasoline, a 3% increase, at an average margin of 11.7 cents; year to date the Company sold 415.3 million gallons, a 5.7% increase, at an average margin of 12.4 cents. President & CEO Ronald M. Lamb gave this perspective: “High gas prices reduced demand, an occurrence throughout the industry, but our margins more than compensated.” Gasoline gross profit was up 21.9% to $23.9 million for the second quarter and up 32.7% to $51.6 million for the year to date.
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The second annual goal is to increase inside (nongas) sales 15%; the third is to increase the average margin on inside sales 100 basis points to 38.7%. Inside sales were up 11.3% for the quarter and up 13.4% for the year to date. The second-quarter average margin was 40.3%; the year-to-date average margin was 39.3%. Lamb explained, “Inside sales were adversely affected by the reduced demand for gasoline, but growth in our prepared food & fountain category contributed to improvement in average margin. Prepared food & fountain grew faster than either our gasoline or grocery & other merchandise categories.”
The fourth annual goal is to keep operating expenses under 14% of sales. Operating expenses came to 13.1% of sales for the second quarter and to 12.6% for the year to date. “Though midyear operating expenses were below 14% of sales, keeping expenses in check will be an ongoing challenge,” said Lamb, “especially if wages and bank charges continue to rise.” Year to date, wages were up 18.7% and bank charges resulting from customers’ credit card use were up 43.7%.
The Company is on target for reaching its two-year goal of adding 180 corporate stores from both new construction and franchise purchases. In the first half of fiscal year 2001, Casey’s built 32 stores and purchased 19 franchise stores.
“Expansion is obviously one means of increasing sales,” said Lamberti, “but so is using the lure of electronics to draw customers inside our existing stores.” Casey’s is in the process of installing video advertising systems at the gasoline pump stands of 300 stores and testing Internet kiosks in 10 locations. The Company currently has ATMs in 383 stores and expects to increase that number to 800 stores by next summer.
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At its meeting held November 28, 2000, the Board of Directors declared a regular quarterly dividend of $0.02 per share. The dividend will be paid February 15, 2001 to shareholders of record on February 1, 2001.
Casey's General Stores, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
3 months ended 6 months ended
October 31, October 31,
2000 1999 2000 1999
-------- -------- ---------- --------
Net sales $495,708 $412,752 $1,024,599 $799,946
Franchise revenue 981 1,431 2,126 2,945
-------- -------- ---------- --------
Total revenue $496,689 $414,183 $1,026,725 $802,891
-------- -------- ---------- --------
Cost of goods sold $396,570 $327,769 $ 824,632 $630,471
Operating expenses 64,890 54,857 128,782 106,437
Depreciation and
amortization 10,321 9,406 20,392 18,501
Interest, net 2,890 1,988 5,861 3,990
-------- -------- ---------- --------
$474,671 $394,020 $ 979,667 $759,399
-------- -------- ---------- --------
Income before income taxes $ 22,018 $ 20,163 $ 47,058 $ 43,492
Federal and state income
taxes 8,190 7,501 17,505 16,179
-------- -------- ---------- --------
Net income $ 13,828 $ 12,662 $ 29,553 $ 27,313
======== ======== ========== ========
Basic earnings per share $ .28 $ .24 $ .60 $ .52
Weighted average shares
outstanding $ 49,471 52,737 49,462 52,728
Diluted earnings per share $ .28 $ .24 $ .60 $ .52
Weighted average shares
outstanding 49,630 52,973 49,599 52,976
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
Oct. 31, April 30,
2000 2000
--------- ---------
Assets
Current assets
Cash and cash equivalents $ 18,418 $ 15,917
Short-term investments 30,361 7,925
Receivables 4,155 4,111
Inventories 55,410 41,363
Prepaid expenses 6,200 5,745
--------- ---------
Total current assets $114,544 $ 75,061
----------------------------------------------------------------------
Long-term investments $ 7,542 $ ------
Other assets, net of amortization 1,479 1,513
Property and equipment, net of
accumulated depreciation
October 31, 2000 $265,042 572,520 546,991
April 30, 2000 $245,858
--------- ---------
Total assets $696,085 $623,565
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $ 3,400 $ 45,950
Current maturities of long-term debt 9,765 9,703
Accounts payable 59,515 60,959
Accrued expenses 25,059 21,948
Income taxes payable 7,075 2,091
--------- ---------
Total current liabilities $104,814 $140,651
----------------------------------------------------------------------
Long-term debt, net of
current maturities $189,921 $112,896
Deferred income taxes 60,650 57,650
Deferred compensation 3,908 3,606
--------- ---------
Total liabilities $359,293 $314,803
--------- ---------
Total shareholders' equity 336,792 308,762
--------- ---------
Total liabilities and shareholders' equity $696,085 $623,565
======================================================================
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
(Dollars in thousands)
Grocery Prepared
Six months ended & other food &
10/31/00 Gasoline merchandise fountain Other Total
Sales $618,060 $285,278 $72,919 $48,342 $1,024,599
Gross profit $ 51,569 $ 99,192 $41,640 $ 7,566 $ 199,967
Margin 8.3% 34.8% 57.1% 15.7% 19.5%
Six months ended
10/31/99
Sales $434,687 $252,090 $63,725 $49,444 $ 799,946
Gross profit $ 38,858 $ 86,077 $36,351 $ 8,189 $ 169,475
Margin 8.9% 34.1% 57.0% 16.6% 21.2%
----------------------------------------------------------------------
----------------------------------------------------------------------
Diluted Earnings per Share
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
1996 $0.15 $0.17 $0.13 $0.06 $0.51
1997 0.17 0.17 0.10 0.07 0.51
1998 0.20 0.21 0.14 0.09 0.64
1999 0.24 0.24 0.17 0.12 0.76
2000 0.28 0.24 0.10 0.14 0.76
2001 0.32 0.28
----------------------------------------------------------------------
----------------------------------------------------------------------
Gasoline Operations
(In thousands, except margins)
Six months ended Fiscal year
10/31/00 10/31/99 2000 1999 1998 1997
Gallons sold 415,316 393,079 783,250 692,770 608,977 542,610
Margin per
gallon $0.124 $ 0.099 $ 0.098 $ 0.105 $ 0.106 $ 0.102
Gross profit $51,569 $38,858 $77,080 $72,949 $ 64,795 $55,183
----------------------------------------------------------------------
----------------------------------------------------------------------
Same Store Sales Growth
(Stores open for at least one full year)
Six months ended Fiscal Year
10/31/00 2000 1999 1998 1997
Gas gallons sold -3.6% 3.5% 6.3% 3.0% 1.6%
Grocery & other
merchandise 2.7% 14.5% 9.0% 2.7% 3.5%
Prepared food &
fountain 2.9% -0.1% 3.7% 11.3% 9.6%
----------------------------------------------------------------------
Corporate information is available at this web site: http://www.caseys.com
