CASEYS GENERAL STORES INC Annual Report, Year Ended Apr 30, 2009

Casey's General Stores, Inc. operates a network of convenience stores primarily in Midwestern states, focusing on smaller communities. As of April 30, 2009, the company operated 1,478 stores, offering a broad selection of groceries, prepared foods like pizza and donuts, and gasoline. The business model thrives on providing a wider product range than typical convenience stores, catering to residents in smaller towns often underserved by national chains. Revenue is significantly driven by gasoline sales, which accounted for approximately 71% of total revenue in fiscal year 2009, though inside sales of higher-margin merchandise and prepared foods are crucial for profitability, contributing approximately 75% of gross profits. The company's strategy emphasizes high-margin prepared food items, demonstrating a successful effort to diversify revenue streams beyond gasoline. Financially, Casey's demonstrated resilience in fiscal year 2009, with a slight increase in net earnings from continuing operations to $85.7 million, despite a 2.9% decrease in total revenue primarily due to lower gasoline prices. This performance was supported by an 8.1% increase in inside sales and an improved gasoline margin. The company maintained a strong liquidity position, with a current ratio of 1.29:1 and adequate cash flow from operations. Capital expenditures remain a significant focus, with substantial investments planned for store acquisitions, construction, and remodeling to drive future growth and competitiveness.