Casey’s Reports Record Earnings and Projects Further Growth in Fiscal 2013

  Casey’s Reports Record Earnings and Projects Further Growth in Fiscal 2013

Business Wire

ANKENY, Iowa -- June 12, 2012

Casey’s General Stores, Inc. (Nasdaq: CASY) today reported $0.61 in basic
earnings per share for the fourth quarter of fiscal 2012 ended April 30, 2012
compared to $0.60 for the same period a year ago. For the year, basic earnings
per share were $3.07 versus $2.24. After adjusting for the $17.6 million
post-tax impact of the costs associated with the hostile takeover attempt by
Alimentation Couche-Tard, Inc., basic earnings per share last year would have
been $2.65.

“In the fourth quarter, the gas margin was down nearly 2 cents per gallon from
the same period a year ago, which reduced basic earnings per share by
approximately 12 cents,” said President and CEO Robert J Myers. “We were
pleased with our ability to offset this decline with strong sales and margin
gains inside our stores. Inside gross profit dollars for the quarter were up
nearly 19% and we are optimistic about our growth potential in fiscal 2013
with the various operational initiatives we are implementing.”

Gasoline—In the fourth quarter, same-store gallons sold rose 2.5% with an
average margin of 13.7 cents per gallon. “Same store gallons improved in the
fourth quarter as we experienced more favorable weather compared to a year
ago.” said Myers. The Company’s annual goal was to increase same-store
gasoline gallons sold 1% with an average margin of 13.5 cents per gallon. For
the fiscal year, same-store gallons sold were down 1.5% with an average margin
of 15.3 cents. Total gallons sold for the year were up 5.9% and gross profit
dollars rose 6.8%.

Grocery & Other Merchandise—For the quarter, same-store sales rose 8.5% from
the same period a year ago with an average margin of 33.0%. “We continued to
benefit from major remodels and stores converted to 24-hour operations,”
stated Myers. “These initiatives, along with favorable weather, helped
increase same store customer count 7.4% and drove total sales for the quarter
up 12.7% from a year ago.” Gross profit dollars increased 15.9% for the fourth
quarter and 15.1% for the fiscal year compared to prior periods. Casey’s
annual goal was to increase same-store sales 5.8% with an average margin of
32.8%. Same-store sales finished up 6.7% for fiscal 2012, with an average
margin of 32.5%. Fiscal 2012 total sales were $1.4 billion, up 14.2% from a
year ago.

Prepared Food & Fountain—Same-store sales for the quarter were up 16.8% from
the same period a year ago. The average margin for the quarter was 60.8%, up
60 basis points from last year’s fourth quarter, primarily due to lower
commodity costs. “The same-store sales lift in the quarter was impressive
considering it was compared to an 11.8% increase last year,” said Myers.
“Major remodels and 24-hour conversions are having a significant impact on
sales in this category, as is the expansion of our pizza delivery program.”
The goal for fiscal 2012 was to increase same-store sales 7.7% with an average
margin of 61.8%. Same-store sales for fiscal 2012 were up 14.3% with an
average margin of 60.7%. Total sales for the fiscal year were $499.7 million,
up 20.3% from the previous year.

Operating Expenses—For the fiscal year, operating expenses increased 13.3% to
$688.4 million. For the quarter, operating expenses were up 16.9%. After
adjusting for the $16 million in expenses associated with the unsolicited
offer by Couche-Tard in the prior year, expenses increased 16.4% for the
fiscal year. “Approximately $61 million of the operating expense increase for
the year resulted from stores newly constructed, acquired or replaced in the
past two fiscal years, along with the stores impacted by major remodels,
24-hour conversion, and pizza delivery,” stated Myers. “We are excited about
the profitability of all of these initiatives and we will remain disciplined
with their implementation.” Store level operating expenses for the fiscal year
increased less than 5% for the remaining store base.

Expansion—The annual goal was to increase the total number of stores 4-6%. For
the fiscal year, the Company achieved this goal by acquiring 35 stores and
completing 30 new-store constructions, bringing the year-end store count to
1,699. In addition to this activity, the Company also replaced 10 stores
during the year. “We look forward to opening our first stores in Kentucky and
Tennessee in fiscal 2013 and remain optimistic about future growth
opportunities as we expand our market,” said Myers.

Fiscal 2013 Goals—The corporate performance goals for fiscal 2013 are as
follows:

  *Increase same-store gasoline gallons sold 1% with an average margin of 14
    cents per gallon
  *Increase same-store grocery and other merchandise sales 6.2% with an
    average margin of 32.7%
  *Increase same-store prepared food and fountain sales 11% with an average
    margin of 61.1%
  *Increase the total number of stores 4-6%. In addition, replace 20 stores
    and complete 50-75 major remodels

Dividends—At its June meeting, the Board of Directors increased the quarterly
dividend to $0.165 per share. The dividend is payable August 15, 2012 to
shareholders of record on August 1, 2012.

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

                   Three months ended April 30,  Year ended April 30,
                    2012            2011            2012           2011
Total revenue     $ 1,752,504      $ 1,549,495     $ 6,987,804     $ 5,635,240
Cost of goods
sold (exclusive
of
depreciation
and                 1,507,264        1,332,307       5,984,114       4,754,173
amortization,
shown
separately
below)
Gross profit        245,240          217,188         1,003,690       881,067
Operating           175,952          150,473         688,431         607,628
expenses
Depreciation
and                 25,609           21,982          96,552          82,355
amortization
Interest, net       8,751            8,867           35,192          28,497
Loss on early
retirement of       -----------      -----------     -----------     11,350
debt
Earnings before     34,928           35,866          183,515         151,237
income taxes
Federal and
state income        11,859           13,096          66,724          56,614
taxes
Net earnings      $ 23,069         $ 22,770        $ 116,791       $ 94,623
                                                                     
Basic earnings    $ .61            $ .60           $ 3.07          $ 2.24
per share
Weighted
average shares      38,120           37,956          38,068          42,285
outstanding
                                                                     
Diluted
earnings per      $ .60            $ .60           $ 3.04          $ 2.22
share
Weighted
average shares      38,481           38,257          38,392          42,567
outstanding
                                                                     

Casey’s General Stores, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
                                                                
                                                    April 30,        April 30,
                                                    2012             2011
Assets
Current assets
Cash and cash equivalents                         $ 55,919         $ 59,572
Receivables                                         21,700           20,154
Inventories                                         170,794          159,200
Prepaid expenses                                    1,298            1,180
Deferred income taxes                               13,143           10,405
Income taxes receivable                             16,424           43,376
Total current assets                              279,278        293,887
Other assets, net of amortization                   12,403           11,721
Goodwill                                            104,385          88,042
Property and equipment, net of
accumulated depreciation of $860,998 at
April 30, 2012, and of $777,342 at April 30,        1,378,749        1,217,305
2011
Total assets                                     $ 1,774,815     $ 1,610,955
                                                                     
Liabilities and Shareholders' Equity
Current liabilities
Notes payable to bank                             $ ------------   $ 600
Current maturities of long-term debt                10,737           1,167
Accounts payable                                    211,165          215,675
Accrued expenses                                    84,739           77,058
Total current liabilities                         306,641        294,500
Long-term debt, net of current maturities           667,930          678,680
Deferred income taxes                               260,405          203,078
Deferred compensation                               14,698           13,858
Other long-term liabilities                         19,100           16,943
Total liabilities                                   1,268,774        1,207,059
                                                                     
Total shareholders' equity                          506,041          403,896
                                                                    
Total liabilities and shareholders' equity       $ 1,774,815     $ 1,610,955
                                                                     


Sales and Gross Profit by Product
(Amounts in thousands)
Year                      Grocery &       Prepared
ended      Gasoline     Other          Food         Other     Total
4/30/12                   Merchandise     & Fountain
                                                                   
Sales       $ 5,092,311   $  1,364,995    $  499,712    $ 30,786   $ 6,987,804
Gross       $ 226,559     $  443,245      $  303,159    $ 30,727   $ 1,003,690
profit
Margin        4.4%           32.5%           60.7%        99.8%      14.4%
                                                                   
Gasoline      1,476,154
gallons
                                                                   
Year
ended
4/30/11
                                                                   
Sales       $ 3,998,702   $  1,195,613    $  415,240    $ 25,685   $ 5,635,240
Gross       $ 212,038     $  385,250      $  258,151    $ 25,628   $ 881,067
profit
Margin        5.3%           32.2%           62.2%        99.8%      15.6%
                                                                   
Gasoline    1,394,457                                     
gallons
                                                                   

                                                                                                  
Gasoline Gallons                                       Gasoline Margin
Same-store Sales Growth                                (Cents per gallon, excluding credit card fees)
                                       Fiscal                                            Fiscal
        Q1       Q2       Q3       Q4       Year               Q1       Q2       Q3       Q4       Year
F2012   -2.7 %   -2.9 %   -2.4 %   2.5  %   -1.5 %     F2012   17.2 ¢   16.7 ¢   13.6 ¢   13.7 ¢   15.3   ¢
F2011   1.5      3.6      3.5      -1.9     1.6        F2011   16.4     14.9     13.9     15.6     15.2
F2010  3.2    -0.7   -2.9   0.2    -0.1      F2010  15.7   14.3   12.4   13.1   13.9   
                                                                                                    
Grocery & Other Merchandise                            Grocery & Other Merchandise
Same-store Sales Growth                                Margin
                                            Fiscal                                                 Fiscal
        Q1       Q2       Q3       Q4       Year               Q1       Q2       Q3       Q4       Year
F2012   6.2  %   5.8  %   6.3  %   8.5  %   6.7  %     F2012   32.5 %   32.5 %   31.8 %   33.0 %   32.5   %
F2011   2.0      6.9      5.8      4.8      4.6        F2011   32.8     32.9     30.9     32.1     32.2
F2010  6.4    1.9    1.7    3.1    3.3       F2010  34.3   34.1   32.7   33.1   33.6   
                                                                                                    
Prepared Food & Fountain                               Prepared Food & Fountain
Same-store Sales Growth                                Margin
                                            Fiscal                                                 Fiscal
        Q1       Q2       Q3       Q4       Year               Q1       Q2       Q3       Q4       Year
F2012   15.3 %   14.2 %   12.6 %   16.8 %   14.3 %     F2012   61.2 %   59.5 %   61.2 %   60.8 %   60.7   %
F2011   2.4      7.2      10.5     11.8     7.7        F2011   63.8     62.7     62.1     60.2     62.2
F2010  6.6    3.4    1.4    5.3    4.2       F2010  63.8   64.6   62.8   64.1   63.8   
                                                                                                          

 Corporate information is available at this Web site: http://www.caseys.com.
                       Earnings will be reported during
 a conference call on June 13, 2012. The call will be broadcast live over the
                      Internet at 9:30 a.m. CDT via the
    Investor Relations section of our Web site and will be available in an
                               archived format.

Contact:

Casey’s General Stores, Inc.
Bill Walljasper, 515-965-6505
 
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