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Casey's General Stores, Inc. Reports Strong Fourth Quarter and Annual Results

Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq symbol CASY) today reported diluted earnings per share of $1.67 for the fourth quarter of its fiscal year ended April 30, 2020, compared to $0.68 for the same period a year ago. Diluted earnings per share was $7.10 for the year, compared to $5.51 last year. “The COVID-19 pandemic has created unprecedented challenges globally. I am exceptionally proud of our team members, who have risen to the challenge to safely serve our guests throughout this period,” said Darren Rebelez, President and Chief Executive Officer. "While it is difficult to predict the future impact of this crisis, we are confident that our adaptive business model, the agility of our team members, and our financial strength provides us the resiliency to operate in the current environment," stated Rebelez.

Fuel - For the quarter, the average margin was 40.8 cents per gallon, compared to 18.6 cents per gallon for the same quarter a year ago. Same-store gallons sold in the quarter decreased 14.7%. Total gross profit dollars for the quarter increased over 96% to $198.8 million, while total gallons sold for the quarter decreased 10.7% to 487.7 million. “Same-store gallons sold for the first half of the quarter were strong. Shelter in place restrictions for the back half of the quarter significantly affected quarterly gallon volume," said Rebelez. “At the same time, macro-economic factors led to declining wholesale fuel costs which contributed to unprecedented fuel margins.” For fiscal 2020, total gross profit dollars were up 31.9% to $614.8 million, while total gallons sold were steady at 2.3 billion. For the year, same-store gallons sold were down 5.1% with an average margin of 26.8 cents per gallon. “We continue to believe our procurement and retail price optimization strategies will provide strong benefit for us moving forward, as we look to grow our fuel business and its capabilities,” added Rebelez.

Grocery and Other Merchandise - For the fourth quarter, same-store sales were down 2.0% with an average margin of 30.4%. Same-store sales for the fiscal year were up 1.9% with an average margin of 32.0%. "We had significant momentum for the first half of the quarter inside the store, but slowing customer traffic related to COVID-19 contributed to overall volume declines,” said Rebelez. "Stronger sales of lower margin products relative to other categories led to a reduction in the average margin for the quarter. However, we remain optimistic about our strategic initiatives that we believe will drive future results." Total sales for the quarter were up 1.0% to $568.1 million while total gross profit dollars decreased 2.4% to $172.9 million. For the year, total sales were up 5.5% to $2.5 billion and gross profit dollars increased 5.3% to $800.1 million.

Prepared Food and Fountain - For the fourth quarter, same-store sales were down 13.5% with an average margin of 60.0%. "Same-store sales in this category were also strong for the first half of the quarter. COVID-19 related traffic declines in the last half of the quarter combined with regulations prohibiting self-serve food service adversely affected quarterly results," said Rebelez. “However, the continued expansion of our digital programs and an increased focus on providing value to our guests helped drive double-digit growth in whole-pie sales for the quarter.” The average margin was adversely impacted by higher commodity costs, along with increased promotional activity in the back half of the quarter. Total gross profit dollars for the quarter were down 12.8% to $137.8 million while total sales decreased 9.5% to $229.9 million. For fiscal 2020, total gross profit dollars were effectively flat at $668.1 million, and total sales increased 2.1% to $1.1 billion.

Operating Expenses - For the fourth quarter, operating expenses were up 6.2% to $367.5 million. For the fiscal year, operating expenses increased 7.7% to $1.5 billion. Fourth quarter results were positively impacted by wage expense reductions related to a reduction in hours at the stores and lower credit card fees, offset by higher hourly wage rates and increased costs of cleaning and other pandemic-related supplies. The increase in total operating expenses for fourth quarter and year-to-date was primarily attributable to operating 61 more stores than the same quarter in the prior year. Same-store operating expenses were down 2.0% for the quarter and up 2.2% for the full year. "We adjusted our operating expense spending to address the changing circumstances and shifting needs of our guests. While we incurred significant additional costs related to the COVID-19 crisis, the safety of our team members and guests is our top priority," noted Rebelez.

Expansion - The following table represents the roll forward of store growth through the fourth quarter of fiscal 2020:

Store Count

Stores at 4/30/19

2,146

New Store Construction

60

Acquisitions

18

Acquisitions not opened

(7)

Prior Acquisitions opened

3

Closed

(13)

Stores at 4/30/20

2,207

As of April 30, 2020, the Company had 2 acquisition stores under agreement to purchase and a new store pipeline of 93 sites, including 24 under construction. "We temporarily deferred some spending related to new store construction as a result of COVID-19. We believe we are well positioned to continue our growth through a combination of reaccelerating organic development and a disciplined acquisition strategy," said Rebelez.

Share Repurchase Program - The Company has $300 million remaining under its existing share repurchase program. There were no repurchases made against that authorization in the fourth quarter.

Dividend - At its June meeting, the Board of Directors declared a quarterly dividend of $0.32 per share. The dividend is payable August 17, 2020 to shareholders of record on August 3, 2020.

Fiscal 2021 Guidance - Due to the continued uncertainty of COVID-19, guidance for the fiscal year ending April 30, 2021 will not be provided at this time. This will be reevaluated as conditions warrant.

Casey’s General Stores, Inc.

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,

2020

2019

2020

2019

Total revenue

$

1,812,883

2,178,397

$

9,175,296

9,352,910

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

1,287,813

1,726,027

7,030,612

7,398,186

Operating expenses

367,489

346,165

1,498,043

1,391,279

Depreciation and amortization

65,193

62,867

251,174

244,387

Interest, net

13,806

13,749

53,419

55,656

Income before income taxes

78,582

29,589

342,048

263,402

Federal and state income taxes

16,491

4,377

78,202

59,516

Net income

$

62,091

25,212

$

263,846

203,886

Net income per common share

Basic

$

1.68

0.69

$

7.14

5.55

Diluted

$

1.67

0.68

$

7.10

5.51

Basic weighted average shares

36,978,032

36,752,152

36,956,115

36,709,940

Plus effect of stock compensation

229,229

268,779

229,713

265,447

Diluted weighted average shares

37,207,261

37,020,931

37,185,828

36,975,387

Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

April 30, 2020

April 30, 2019

Assets

Current assets

Cash and cash equivalents

$

78,275

$

63,296

Receivables

48,500

37,856

Inventories

236,007

273,040

Prepaid expenses

9,801

7,493

Income tax receivable

14,667

28,895

Total current assets

387,250

410,580

Other assets, net of amortization

71,766

41,154

Goodwill

161,075

157,223

Property and equipment, net of accumulated depreciation

3,323,801

3,122,419

Total assets

$

3,943,892

$

3,731,376

Liabilities and Shareholders’ Equity

Current liabilities

Notes payable to bank

$

120,000

$

75,000

Current maturities of long-term debt

570,280

17,205

Accounts payable

184,800

335,240

Accrued expenses

188,348

163,487

Total current liabilities

1,063,428

590,932

Long-term debt, net of current maturities

714,502

1,283,275

Deferred income taxes

435,598

385,788

Deferred compensation

13,604

15,881

Insurance accruals, net of current portion

22,862

22,663

Other long-term liabilities

50,693

24,068

Total liabilities

2,300,687

2,322,607

Total shareholders’ equity

1,643,205

1,408,769

Total liabilities and shareholders’ equity

$

3,943,892

$

3,731,376

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 needs, the Company’s supply chain, business strategies, growth opportunities, performance at our stores, and the potential effects of COVID-19. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any future results expressed or implied by those forward-looking statements, including but not limited to the impact and duration of COVID-19 and related governmental actions, 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 whether as a result of new information, future events, or otherwise.

Summary by Category (Amounts in thousands)

Three months ended 4/30/2020

Fuel

Grocery & Other
Merchandise

Prepared Food
& Fountain

Other

Total

Revenue

$

999,352

$

568,080

$

229,853

$

15,598

$

1,812,883

Revenue less cost of goods sold (exclusive of depreciation and amortization)

$

198,803

$

172,862

$

137,833

$

15,572

$

525,070

Margin

19.9

%

30.4

%

60.0

%

99.8

%

29.0

%

Fuel gallons

487,708

Three months ended 4/30/2019

Revenue

$

1,345,866

$

562,699

$

254,086

$

15,746

$

2,178,397

Revenue less cost of goods sold (exclusive of depreciation and amortization)

$

101,417

$

177,188

$

158,057

$

15,708

$

452,370

Margin

7.5

%

31.5

%

62.2

%

99.8

%

20.8

%

Fuel gallons

546,006

Summary by Category (Amounts in thousands)

Twelve months ended 4/30/2020

Fuel

Grocery & Other
Merchandise

Prepared Food
& Fountain

Other

Total

Revenue

$

5,517,412

$

2,498,966

$

1,097,207

$

61,711

$

9,175,296

Revenue less cost of goods sold (exclusive of depreciation and amortization)

$

614,847

$

800,140

$

668,092

$

61,605

$

2,144,684

Margin

11.1

%

32.0

%

60.9

%

99.8

%

23.4

%

Fuel gallons

2,293,609

Twelve months ended 4/30/2019

Revenue

$

5,848,770

$

2,369,521

$

1,074,294

$

60,325

$

9,352,910

Revenue less cost of goods sold (exclusive of depreciation and amortization)

$

466,107

$

759,817

$

668,598

$

60,202

$

1,954,724

Margin

8.0

%

32.1

%

62.2

%

99.8

%

20.9

%

Fuel gallons

2,296,030

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

F2020

(2.0

)%

(1.8

)%

(2.0

)%

(14.7

)%

(5.1

)%

F2020

24.4

¢

22.9

¢

21.7

¢

40.8

¢

26.8

¢

F2019

0.5

(1.1

)

(3.4

)

(2.8

)

(1.7

)

F2019

20.5

20.0

22.1

18.6

20.3

F2018

1.7

1.9

3.8

2.0

2.3

F2018

19.3

19.7

18.6

16.3

18.5

Grocery & Other Merchandise

Grocery & Other Merchandise

Same-store Sales

Margin

Q1

Q2

Q3

Q4

Fiscal
Year

Q1

Q2

Q3

Q4

Fiscal
Year

F2020

3.2

%

3.2

%

3.5

%

(2.0

)%

1.9

%

F2020

31.3

%

33.3

%

32.9

%

30.4

%

32.0

%

F2019

3.2

2.7

3.4

5.7

3.6

F2019

32.4

32.4

31.9

31.5

32.1

F2018

3.1

2.5

2.5

(0.4

)

1.9

F2018

31.9

32.0

31.9

31.2

31.8

Prepared Food & Fountain

Prepared Food & Fountain

Same-store Sales

Margin

Q1

Q2

Q3

Q4

Fiscal
Year

Q1

Q2

Q3

Q4

Fiscal
Year

F2020

1.6

%

1.9

%

2.8

%

(13.5

)%

(1.5

)%

F2020

62.2

%

60.9

%

60.2

%

60.0

%

60.9

%

F2019

1.7

2.2

1.5

2.0

1.9

F2019

62.0

62.4

62.3

62.2

62.2

F2018

3.7

2.1

1.7

(1.3

)

1.7

F2018

62.5

61.3

60.5

59.7

61.0

Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on June 9, 2020. 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.

Contacts:

Bill Walljasper
(515) 965-6505

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