ANKENY, Iowa--(BUSINESS WIRE)--
Casey’s General Stores, Inc. ("Casey's", or the "Company") (Nasdaq symbol CASY) today reported diluted earnings per share of $0.68 for the fourth quarter of its fiscal year ended April 30, 2019, compared to $0.51 for the same period a year ago. Diluted earnings per share was $5.51 for the year, compared to $3.81 last year, or $8.34 when including the one-time benefit of the adoption of the Tax Cuts and Jobs Act. Income before income taxes grew nearly 58% and 23% for the fourth quarter and fiscal year, respectively. “The combination of gross profit dollar margin expansion, a focus on controlling operating expense growth, and opening more stores were the primary drivers of that growth,” stated Terry Handley, President and Chief Executive Officer. “We are pleased with our fiscal 2019 results. The entire team demonstrated a focused effort to drive the business forward while working diligently to build out new capabilities that will support future earnings growth, including completing several value creation plan milestones in the fourth quarter.”
Value Creation Plan Update - The Company has completed or made progress on the following value creation plan activities:
- Successfully launched the new Caseys.com e-commerce website
- Launched fuel price optimization platform in all stores
- At fiscal year end, the new fleet card program has over 2,000 active cards and 500 new accounts
- Completed inside price optimization store test with planned rollout in fiscal 2020
- Piloting new in-store order management system with expected launch in first half of fiscal 2020
- Expecting launch of enhanced mobile app in first quarter of fiscal 2020
Fuel - For the quarter, the average margin was 18.6 cents per gallon, compared to 16.3 cents per gallon for the same quarter a year ago. Same-store gallons sold in the quarter decreased 2.8%. “The Company experienced a challenging wholesale cost environment throughout the quarter,” stated Handley. “However, our balanced approach to retail fuel pricing resulted in a considerable increase in gross profit when compared to the fourth quarter a year ago.” Total gross profit dollars for the quarter increased over 17% to $101.4 million, while total gallons sold for the quarter increased 2.6% to 546.0 million. For fiscal 2019, total gross profit dollars were up 14.6% to $466.1 million, while total gallons sold were up 4.4% to 2.3 billion. For the year, same-store gallons sold were down 1.7% with an average margin of 20.3 cents per gallon. “Moving forward, we remain confident the newly-implemented capabilities in retail fuel pricing and fuel procurement will further enhance fuel profitability,” added Handley.
Grocery and Other Merchandise - For the fourth quarter, same-store sales were up 5.7% with an average margin of 31.5%. Same-store sales for the fiscal year were up 3.6% with an average margin of 32.1%. “Refinements in product offerings and promotional strategies in higher margin items contributed to increased same-store sales growth and margin expansion comparatively for the fourth quarter and fiscal year,” said Handley. Total sales for the quarter were up nearly 10% to $562.7 million while total gross profit dollars increased 10.8% to $177.2 million. For the year, total sales were up 8.5% to $2.4 billion and gross profit dollars increased 9.6% to $759.8 million. “The successful inside price optimization store test and eminent rollout will provide our diverse store base dynamic pricing capabilities to meet today’s ever-changing competitive landscape, and will further support ongoing growth in gross profit dollars to the category,” said Handley.
Prepared Food and Fountain - For the fourth quarter, same-store sales were up 2.0% with an average margin of 62.2%. “Continued benefits from strategic price increases, favorable commodity costs and changes in promotional campaigns resulted in considerable margin expansion in the fourth quarter compared to the same time period a year ago,” said Handley. Total gross profit dollars for the quarter were up nearly 10% to $158.1 million while total sales increased 5.4% to $254.1 million. For fiscal 2019, total gross profit dollars rose 8.9% to $668.6 million, and total sales increased 6.8% to $1.1 billion. Same-store sales for fiscal 2019 were up 1.9% with an average margin of 62.2%. “The recent launch of the new Caseys.com e-commerce website marked a key milestone in our digital transformation journey,” said Handley. “We are confident these digital capabilities, combined with our new price optimization platform, will improve our competitive position and increase gross profit dollars to the category.”
Operating Expenses - For the fourth quarter, operating expenses were up 9.6% to $346.2 million. For the fiscal year, operating expenses increased 8.4% to $1.4 billion. “Both the quarter and full year increase in operating expenses was primarily due to operating more stores than the same time a year ago offset by a reduction in employee costs at same-stores,” said Handley. Fourth quarter operating expenses were also impacted by lapping the reduction in 24-hour and pizza delivery formats from prior year, along with increases in technology expenses and credit card fees. Same-store operating expenses excluding credit card fees were down 1.1% and 0.6% for the quarter and full year, respectively. “A focus on aligning labor with customer trends throughout the fiscal year contributed to the Company’s strong earnings growth,” added Handley. “Process improvements and new capabilities are under way across the business focused on driving efficiencies and enhancing future earnings growth.”
Expansion - The following table represents the roll forward of store growth through the fourth quarter of fiscal 2019:
|Stores at 4/30/18||2,073|
|New Store Construction||56|
|Acquisitions not opened||(2)|
|Prior Acquisitions opened||5|
|Stores at 4/30/19||2,146|
As of April 30, 2019, the Company had 8 acquisition stores under agreement to purchase and a new store pipeline of 81 sites, including 41 under construction.
Share Repurchase Program - The Company has $300 million remaining on its authorization from March 2018. There were no repurchases made against that authorization in the fourth quarter.
Fiscal 2020 Guidance - The corporate performance guidance for fiscal 2020 is as follows:
|Fuel (Gallons and CPG)||(.5%) - 1.0%||20.5 - 22.5|
|Grocery and Other Merchandise||2.5 - 4.0%||32.0 - 33.0%|
|Prepared Food and Fountain||3.0 - 6.0%||61.0 - 63.0%|
|Operating Expenses (including expenses from value creation plan)||7.0 - 9.0%|
|Depreciation and Amortization||11.0 - 13.0%|
|New Store Construction||60 stores|
Dividend - For the last 19 years, the Company has increased its annual dividend to shareholders. At its June meeting, the Board of Directors increased the quarterly dividend from $0.29 to $0.32 per share. The dividend is payable August 15, 2019 to shareholders of record on August 1, 2019.
Casey’s General Stores, Inc.
|Three Months Ended April 30,||Twelve Months Ended April 30,|
|Cost of goods sold (exclusive of depreciation and amortization, shown separately below)||1,726,027||1,683,922||7,398,186||6,621,731|
|Depreciation and amortization||62,867||57,402||244,387||220,970|
|Income before income taxes||29,589||18,785||263,402||214,437|
|Federal and state income taxes||4,377||(477||)||59,516||(103,466||)|
|Net income per common share|
|Basic weighted average shares||36,752,152||37,298,281||36,709,940||37,778,304|
|Plus effect of stock compensation||268,779||353,010||265,447||353,795|
|Diluted weighted average shares||37,020,931||37,651,291||36,975,387||38,132,099|
Casey’s General Stores, Inc.
|April 30, 2019||April 30, 2018|
|Cash and cash equivalents||$||63,296||$||53,679|
|Income tax receivable||28,895||50,682|
|Total current assets||410,580||396,840|
|Other assets, net of amortization||52,947||29,909|
|Property and equipment, net of accumulated depreciation||3,110,626||2,902,920|
|Liabilities and Shareholders’ Equity|
|Notes payable to bank||$||75,000||$||39,600|
|Current maturities of long-term debt||17,205||15,374|
|Total current liabilities||590,932||507,850|
|Long-term debt, net of current maturities||1,283,275||1,291,725|
|Deferred income taxes||385,788||341,946|
|Insurance accruals, net of current portion||22,663||19,748|
|Other long-term liabilities||24,068||21,589|
|Total shareholders’ equity||1,408,769||1,271,141|
|Total liabilities and shareholders’ equity||$||3,731,376||$||3,469,927|
Certain statements in this news release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied by those statements, including our ability to execute our value creation plan or to realize benefits therefrom. Casey’s disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
|Summary by Category (Amounts in thousands)|
|Three months ended 4/30/2019||Fuel|| |
Grocery & Other
|Revenue less cost of goods sold (exclusive of depreciation and amortization)||$||101,417||$||177,188||$||158,057||$||15,708||$||452,370|
|Three months ended 4/30/2018|
|Revenue less cost of goods sold (exclusive of depreciation and amortization)||$||86,640||$||159,929||$||143,949||$||14,597||$||405,115|
|Summary by Category (Amounts in thousands)|
|Twelve months ended 4/30/2019||Fuel|| |
Grocery & Other
|Revenue less cost of goods sold (exclusive of depreciation and amortization)||$||466,107||$||759,817||$||668,598||$||60,202||$||1,954,724|
|Twelve months ended 4/30/2018|
|Revenue less cost of goods sold (exclusive of depreciation and amortization)||$||406,811||$||693,576||$||613,736||$||55,270||$||1,769,393|
|Fuel Gallons||Fuel Margin|
|Same-store Sales||(Cents per gallon, excluding credit card fees)|
|Grocery & Other Merchandise||Grocery & Other Merchandise|
|Prepared Food & Fountain||Prepared Food & Fountain|
Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on June 11, 2019. The call will be broadcast live over the Internet at 9:30 a.m. CST. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx. No access code is required. A webcast replay of the call will remain available in an archived format on the Press Releases and Webcasts section of our website at https://investor.caseys.com/events-and-presentations/default.aspx for one year after the call.