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Casey's Announces Fourth Quarter Results

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ANKENY, Iowa, June 07, 2022--(BUSINESS WIRE)--Casey’s General Stores, Inc., ("Casey's" or the "Company") (Nasdaq symbol CASY) one of the leading convenience store chains in the United States, today announced financial results for the three months and year ended April 30, 2022.

Fourth Quarter 2022 Key Highlights

  • Diluted EPS of $1.60, up 43% from the same period a year ago.

  • Inside same-store sales up 5.2% with an inside margin of 39.4%.

  • Fuel same-store gallons sold up 1.5% with a fuel margin of 36.2 cents per gallon.

  • Casey's increased the quarterly dividend 9% to $0.38 per share, marking the 23rd consecutive annual increase.

Fiscal Year 2022 Key Highlights

  • Diluted EPS of $9.10, an all-time high.

  • Casey's Rewards members of approximately 5 million at year-end, adding over 1.3 million in the fiscal year.

  • Total store growth of 228 stores, including 207 acquired locations, marking the largest unit growth year in the Company's history.

  • Strong performance led the Company to prepay $168 million in variable rate debt.

"Casey's delivered another record fiscal year to its shareholders with inside sales up 6.6%," said Darren Rebelez, President and CEO. "Inside same-store sales were driven by strong prepared food and dispensed beverages, most notably pizza slices and our new breakfast offering. Private label's tremendous progress resulted in exiting the quarter at 5% sales penetration of the grocery and general merchandise category. Despite all-time high fuel costs and challenging macro-economic conditions, fuel volume and margins remained strong. We had the most acquisitive year in our Company's history, finishing the year with 2,452 stores. Thanks to the hard work and commitment of the Casey's team, we are well positioned to deliver on our long-term strategic plan commitments in fiscal 2023."

Earnings

Three Months Ended April 30,

Twelve Months Ended April 30,

2022

2021

2022

2021

Net income (in thousands)

$

59,777

$

41,698

$

339,790

$

312,900

Diluted earnings per share

$

1.60

$

1.12

$

9.10

$

8.38

Adjusted EBITDA (in thousands)

$

165,506

$

140,556

$

800,040

$

728,924

Fourth quarter net income, Diluted EPS, and Adjusted EBITDA (reconciled later in the document) were up compared to the same period a year ago due to higher profitability both inside the store and in fuel, partially offset by higher operating expenses. Net income and Diluted EPS were also positively affected by a lower tax rate, and negatively affected by higher interest expense and higher depreciation expense.

Inside

Three Months Ended April 30,

Twelve Months Ended April 30,

2022

2021

2022

2021

Inside sales (in thousands)

$

1,037,315

$

913,364

$

4,345,627

$

3,811,521

Inside same-store sales

5.2

%

12.8

%

6.6

%

4.0

%

Grocery and general merchandise same-store sales

4.3

%

12.5

%

6.3

%

6.6

%

Prepared food and dispensed beverage same-store sales

7.6

%

13.4

%

7.4

%

(2.1

) %

Inside gross profit (in thousands)

$

409,040

$

364,872

$

1,739,829

$

1,526,262

Inside margin

39.4

%

39.9

%

40.0

%

40.0

%

Grocery and general merchandise margin

32.5

%

31.8

%

32.7

%

32.0

%

Prepared food and dispensed beverage margin

56.9

%

60.1

%

59.2

%

60.1

%

Total inside sales were up 14% for the quarter and total inside gross profit was up 12%. Inside same-store sales were driven by strong sales in pizza slices and breakfast sandwiches, along with non-alcoholic and alcoholic beverages. Inside margin was down 50 basis points for the quarter primarily due to inflationary pressures in the prepared food and dispensed beverage category, partially offset by pricing actions and an increase in single-serve and smaller package sized non-alcoholic and alcoholic beverages in the grocery and general merchandise category.

Fuel1

Three Months Ended April 30,

Twelve Months Ended April 30,

2022

2021

2022

2021

Fuel gallons sold (in thousands)

621,118

535,274

2,579,179

2,180,772

Same-store gallons sold

1.5

%

6.4

%

4.4

%

(8.1

) %

Fuel gross profit (in thousands)

$

224,637

$

176,664

$

928,868

$

761,247

Fuel margin (cents per gallon, excluding credit card fees)

36.2

¢

33.0

¢

36.0

¢

34.9

¢

1 Fuel category does not include wholesale fuel activity, which is included in Other.

Same-store gallons sold were up 1.5% for the quarter, and up 8% on a two-year stacked basis. Fuel gross profit was up 27% due to an increase of 3.2 cents per gallon in fuel margin coupled with a 16% increase in total fuel gallons sold, despite a significant increase in fuel cost experienced at the end of the quarter. The Company sold $1.1 million in renewable fuel credits (RINs) in the fourth quarter, while no RINs were sold in the same period last year.

Operating Expenses

Three Months Ended April 30,

Twelve Months Ended April 30,

2022

2021

2022

2021

Operating expenses (in thousands)

$

490,904

$

426,308

$

1,961,473

$

1,637,191

Credit card fees (in thousands)

$

53,208

$

38,981

$

202,584

$

147,366

Same-store operating expense excluding credit card fees

8.0

%

6.5

%

8.9

%

3.0

%

Operating expenses increased 15.2% for the fourth quarter. Approximately 9% of the increase is due to operating 209 more stores than a year ago. Additionally, approximately 4% was related to same-store employee expense. Finally, approximately 2% of the change was related to same-store credit card fees due to the higher price of retail fuel.

Expansion

Store Count

Stores at April 30, 2021

2,243

New store construction

21

Acquisitions

207

Acquisitions not opened

(3)

Prior acquisitions opened

4

Closed

(20)

Stores at April 30, 2022

2,452

Liquidity

At April 30, the Company had approximately $634 million in available liquidity, consisting of approximately $159 million in cash and cash equivalents on hand and $475 million in undrawn borrowing capacity on existing lines of credit. The Company prepaid variable rate debt by approximately $168 million in the quarter.

Share Repurchase

The Company has $400 million remaining under its existing share repurchase authorization. There were no repurchases made against that authorization in the fourth quarter.

Dividend

At its June meeting, the Board of Directors voted to increase the quarterly dividend by 9% to $0.38 per share, which is the 23rd consecutive year increasing the dividend. The dividend is payable August 15, 2022 to shareholders of record on August 1, 2022.

Fiscal 2023 Outlook

Casey's expects the following performance during fiscal 2023. The Company expects same-store inside sales to increase 4% to 6% and maintain an inside margin of approximately 40%. The Company expects same-store fuel gallons to be flat to 2% higher. Total operating expenses are expected to increase approximately 9% to 10%. The Company expects to add approximately 80 stores in fiscal 2023, and expects to exceed our stated three year commitment of 345 units. Interest expense is expected to be approximately $55 million. Depreciation and amortization is expected to be approximately $320 million and the purchase of property plant and equipment is expected to be approximately $450 to $500 million, including approximately $135 million in one-time store remodel costs for recently acquired stores. The tax rate is expected to be approximately 24% to 26% for the year.

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Dollars in thousands, except share and per share amounts)

(Unaudited)

Three Months Ended April 30,

Twelve Months Ended April 30,

2022

2021

2022

2021

Total revenue

$

3,458,942

$

2,378,236

$

12,952,594

$

8,707,189

Cost of goods sold (exclusive of depreciation and amortization, shown separately below)

2,802,199

1,817,244

10,189,880

6,350,754

Operating expenses

490,904

426,308

1,961,473

1,637,191

Depreciation and amortization

77,866

69,897

303,541

265,195

Interest, net

15,291

11,168

56,972

46,679

Income before income taxes

72,682

53,619

440,728

407,370

Federal and state income taxes

12,905

11,921

100,938

94,470

Net income

$

59,777

$

41,698

$

339,790

$

312,900

Net income per common share

Basic

$

1.61

$

1.12

$

9.14

$

8.44

Diluted

$

1.60

$

1.12

$

9.10

$

8.38

Basic weighted average shares

37,170,941

37,117,504

37,158,898

37,092,273

Plus effect of stock compensation

197,800

263,969

197,800

263,865

Diluted weighted average shares

37,368,741

37,381,473

37,356,698

37,356,138

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

April 30, 2022

April 30, 2021

Assets

Current assets

Cash and cash equivalents

$

158,878

$

336,545

Receivables

108,028

79,698

Inventories

396,199

286,598

Prepaid expenses

17,859

11,214

Income taxes receivable

44,071

9,578

Total current assets

725,035

723,633

Other assets, net of amortization

187,219

82,147

Goodwill

612,934

161,075

Property and equipment, net of accumulated depreciation of $2,425,709 at April 30, 2022 and $2,206,405 at April 30, 2021

3,980,542

3,493,459

Total assets

$

5,505,730

$

4,460,314

Liabilities and Shareholders’ Equity

Current liabilities

Current maturities of long-term debt and finance lease obligations

$

24,466

$

2,354

Accounts payable

588,783

355,471

Accrued expenses

291,429

254,924

Total current liabilities

904,678

612,749

Long-term debt and finance lease obligations, net of current maturities

1,663,403

1,361,395

Deferred income taxes

520,472

439,721

Deferred compensation

12,746

15,094

Insurance accruals, net of current portion

27,957

26,239

Other long-term liabilities

135,636

72,437

Total liabilities

3,264,892

2,527,635

Total shareholders’ equity

2,240,838

1,932,679

Total liabilities and shareholders’ equity

$

5,505,730

$

4,460,314

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

Twelve months ended April 30,

2022

2021

Cash flows from operating activities:

Net income

$

339,790

$

312,900

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

303,541

265,195

Amortization of debt issuance costs

2,527

1,603

Stock-based compensation

37,976

31,986

(Gain) loss on disposal of assets and impairment charges

(1,201

)

9,680

Deferred income taxes

82,721

4,123

Changes in assets and liabilities:

Receivables

(33,025

)

(26,278

)

Inventories

(76,730

)

(50,342

)

Prepaid expenses

(6,376

)

(1,413

)

Accounts payable

165,893

166,546

Accrued expenses

23,574

65,497

Income taxes

(35,716

)

5,714

Other, net

(14,233

)

18,877

Net cash provided by operating activities

788,741

804,088

Cash flows from investing activities:

Purchase of property and equipment

(326,475

)

(441,252

)

Payments for acquisitions of businesses, net of cash acquired

(901,638

)

(9,356

)

Proceeds from sales of property and equipment

70,118

6,268

Net cash used in investing activities

(1,157,995

)

(444,340

)

Cash flows from financing activities:

Proceeds from long-term debt

450,000

650,000

Repayments of long-term debt

(188,537

)

(571,661

)

Payments of debt issuance costs

(1,149

)

(5,525

)

Net payments of short-term debt

(120,000

)

Proceeds from exercise of stock options

133

1,784

Payments of cash dividends

(51,212

)

(47,971

)

Tax withholdings on employee stock-based awards

(17,648

)

(8,105

)

Net cash provided by (used in) financing activities

191,587

(101,478

)

Net (decrease) increase in cash and cash equivalents

(177,667

)

258,270

Cash and cash equivalents at beginning of the period

336,545

78,275

Cash and cash equivalents at end of the period

$

158,878

$

336,545

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION

Twelve months ended April 30,

2022

2021

Cash paid during the period for:

Interest, net of amount capitalized

$

54,499

$

48,508

Income taxes, net

49,565

80,916

Noncash investing and financing activities:

Purchased property and equipment in accounts payable

46,659

9,204

Summary by Category (Amounts in thousands)

Three months ended April 30, 2022

Fuel

Grocery &
General
Merchandise

Prepared Food
& Dispensed
Beverage

Other

Total

Revenue

$

2,344,630

$

744,043

$

293,272

$

76,997

$

3,458,942

Gross profit

$

224,637

$

242,065

$

166,975

$

23,066

$

656,743

9.6

%

32.5

%

56.9

%

30.0

%

19.0

%

Fuel gallons sold

621,118

Three months ended April 30, 2021

Revenue

$

1,445,119

$

649,822

$

263,542

$

19,753

$

2,378,236

Gross profit

$

176,664

$

206,480

$

158,392

$

19,456

$

560,992

12.2

%

31.8

%

60.1

%

98.5

%

23.6

%

Fuel gallons sold

535,274

Summary by Category (Amounts in thousands)

Twelve months ended April 30, 2022

Fuel

Grocery &
General
Merchandise

Prepared Food
& Dispensed
Beverage

Other

Total

Revenue

$

8,312,038

$

3,141,527

$

1,204,100

$

294,929

$

12,952,594

Gross profit

$

928,868

$

1,027,477

$

712,352

$

94,017

$

2,762,714

11.2

%

32.7

%

59.2

%

31.9

%

21.3

%

Fuel gallons sold

2,579,179

Twelve months ended April 30, 2021

Revenue

$

4,825,466

$

2,724,374

$

1,087,147

$

70,202

$

8,707,189

Gross profit

$

761,247

$

872,573

$

653,689

$

68,926

$

2,356,435

15.8

%

32.0

%

60.1

%

98.2

%

27.1

%

Fuel gallons sold

2,180,772

Fuel Gallons

Fuel Margin

Same-store Sales

(Cents per gallon, excluding credit card fees)

Q1

Q2

Q3

Q4

Fiscal
Year

Q1

Q2

Q3

Q4

Fiscal
Year

F2022

9.0

%

2.5

%

5.7

%

1.5

%

4.4

%

F2022

35.1

¢

34.7

¢

38.3

¢

36.2

¢

36.0

¢

F2021

(14.6

)

(8.6

)

(12.1

)

6.4

(8.1

)

F2021

38.2

35.3

32.9

33.0

34.9

F2020

(2.0

)

(1.8

)

(2.0

)

(14.7

)

(5.1

)

F2020

24.4

22.9

21.7

40.8

26.8

Grocery & General Merchandise

Grocery & General Merchandise

Same-store Sales

Margin

Q1

Q2

Q3

Q4

Fiscal
Year

Q1

Q2

Q3

Q4

Fiscal
Year

F2022

7.0

%

6.8

%

7.7

%

4.3

%

6.3

%

F2022

33.0

%

33.3

%

32.0

%

32.5

%

32.7

%

F2021

3.6

6.6

5.4

12.5

6.6

F2021

32.2

33.3

30.7

31.8

32.0

F2020

3.2

3.2

3.5

(2.0

)

1.9

F2020

31.3

33.3

32.9

30.4

32.0

Prepared Food & Dispensed Beverage

Prepared Food & Dispensed Beverage

Same-store Sales

Margin

Q1

Q2

Q3

Q4

Fiscal
Year

Q1

Q2

Q3

Q4

Fiscal
Year

F2022

10.8

%

4.1

%

7.4

%

7.6

%

7.4

%

F2022

61.0

%

60.6

%

58.0

%

56.9

%

59.2

%

F2021

(9.8

)

(3.6

)

(5.0

)

13.4

(2.1

)

F2021

59.7

60.1

60.6

60.1

60.1

F2020

1.6

1.9

2.8

(13.5

)

(1.5

)

F2020

62.2

60.9

60.2

60.0

60.9

RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA

We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets as well as impairment charges. Neither EBITDA nor Adjusted EBITDA are considered GAAP measures, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. These measures have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and they are regularly used by the Company for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation.

Because non-GAAP financial measures are not standardized, EBITDA and Adjusted EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of these non-GAAP financial measures with those used by other companies.

The following table contains a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and twelve months ended April 30, 2022 and 2021:

(In thousands)

Three Months Ended April 30,

Twelve Months Ended April 30,

2022

2021

2022

2021

Net income

$

59,777

$

41,698

$

339,790

$

312,900

Interest, net

15,291

11,168

56,972

46,679

Depreciation and amortization

77,866

69,897

303,541

265,195

Federal and state income taxes

12,905

11,921

100,938

94,470

EBITDA

$

165,839

$

134,684

$

801,241

$

719,244

(Gain) loss on disposal of assets and impairment charges

(333

)

5,872

(1,201

)

9,680

Adjusted EBITDA

$

165,506

$

140,556

$

800,040

$

728,924

NOTES:

  • Gross Profit or Margin is defined as revenue less cost of goods sold (exclusive of depreciation and amortization)

  • Inside is defined as the combination of Grocery and General Merchandise and Prepared Food and Dispensed Beverage

This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of COVID-19 and related governmental actions, the impact and duration of the conflict in Ukraine or other geopolitical disruptions, as well as other risks, uncertainties and factors which are described in the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey’s disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise.

Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on June 8, 2022. The call will be broadcast live over the Internet at 7:30 a.m. CDT. 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 Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx for one year after the call.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220607006068/en/

Contacts

Investor Relations Contact:
Brian Johnson (515) 965-6587

Media Relations Contact:
Katie Petru (515) 446-6772