10-KPeriod: FY2011

CASEYS GENERAL STORES INC Annual Report, Year Ended Apr 30, 2011

Filed June 28, 2011For Securities:CASY

Summary

Casey's General Stores, Inc. (CASY) operates a significant network of convenience stores primarily in smaller Midwestern communities. For the fiscal year ending April 30, 2011, the company reported total revenue of $5.64 billion, with approximately 71% derived from gasoline sales and the remaining 29% from inside sales (grocery, merchandise, and prepared foods). Despite a challenging economic environment and increased operating expenses, the company demonstrated resilience. While net earnings saw a decrease compared to the prior year, this was largely attributed to one-time expenses related to corporate recapitalization and responses to unsolicited offers. The company continues to invest in growth through new store construction and acquisitions, expanding its store base to 1,637 locations. The core business model, focusing on high-margin prepared foods and beverages in underserved markets, remains a key driver of profitability, with prepared food and fountain items contributing significantly to gross profits.

Financial Highlights

49 data points
Beta

Revenue

$5.64B

15.6% Gross Margin

Net Income

$94.62M

1.7% Net Margin

EPS (Diluted)

$2.22

Total Assets

$1.61B

Cash & Equivalents

$59.57M

Free Cash Flow

$46.87M

Financial Statements
Beta
Revenue$5.64B
Cost of Revenue$4.75B
Gross Profit$881.07M
Operating Expenses$607.63M
Interest Expense$28.50M
Net Income$94.62M
EPS (Basic)$2.24
EPS (Diluted)$2.22
Shares Outstanding (Basic)42.28M
Shares Outstanding (Diluted)42.57M

Key Highlights

  • 1Total revenue reached $5.635 billion for the fiscal year ended April 30, 2011, a notable increase driven by higher gasoline prices and increased gallons sold, as well as growth in inside sales.
  • 2Gasoline sales constituted 71% of total revenue, highlighting its primary contribution to top-line performance, though gross profit margins on gasoline remained relatively thin (around 5.3%).
  • 3Inside sales (grocery, merchandise, and prepared food & fountain) represented 29% of revenue but were responsible for approximately 74% of total retail gross profits, underscoring the importance of high-margin offerings.
  • 4Prepared food and fountain items, such as pizza and donuts, showed strong gross profit margins averaging around 62%, a key strategic advantage for the company.
  • 5The company expanded its store footprint to 1,637 locations, with 20 new store constructions and the acquisition of 89 additional stores during the fiscal year.
  • 6Net earnings decreased to $94.6 million from $116.9 million in the prior year, impacted by approximately $27.4 million in expenses related to recapitalization and unsolicited offers, as well as increased operating expenses and interest costs.

Frequently Asked Questions

Casey's General Stores operates convenience stores, primarily in smaller Midwestern communities with populations under 5,000. Its strategy focuses on offering a broader selection of products than typical convenience stores, including a strong emphasis on high-margin prepared foods like pizza and donuts, alongside gasoline sales. This approach aims to serve the needs of residents in smaller towns, often underserved by national chains.

In FY2011, Casey's General Stores generated $5.635 billion in total revenue, an increase driven by higher gasoline prices and sales volume, along with growth in inside sales. However, net earnings decreased to $94.6 million from $116.9 million in the prior year. This decline was primarily due to significant expenses incurred related to corporate recapitalization and responses to unsolicited takeover offers, as well as increased operating expenses.

Gasoline sales are the largest revenue driver, accounting for 71% of total revenue in FY2011. However, the profit margins on gasoline are relatively low (around 5.3%). The company's core profitability is heavily reliant on its inside sales, which comprise 29% of revenue but contribute approximately 74% of gross profits. Particularly, prepared food and fountain items like pizza and donuts yield high gross profit margins (around 62%), making them a critical component of the company's financial success.

Casey's growth strategy involves both organic expansion through new store construction and strategic acquisitions. In FY2011, the company added 20 new stores and acquired 89 existing convenience stores, increasing its total store count to 1,637. The company also invests in remodeling and upgrading existing stores to incorporate new offerings and improve customer experience.