Summary
Casey's General Stores, Inc. (CASY) reported its fiscal year 2019 results, showcasing continued expansion and operational performance. The company operates a vast network of convenience stores primarily in Midwestern states, with a strategic focus on smaller communities. During fiscal year 2019, Casey's continued its growth trajectory by constructing 56 new stores, acquiring 24 additional stores, and opening five previously acquired locations, while closing 10 underperforming ones, resulting in a total of 2,146 stores by April 30, 2019. Financially, the company demonstrated revenue growth, driven significantly by fuel sales, which constituted approximately 63% of total revenue. While fuel remains a core revenue driver, the company is also emphasizing higher-margin prepared food and beverage offerings, which contributed substantially to gross profit. Despite a decrease in net income year-over-year, this was largely attributed to a one-time benefit from the Tax Cuts and Jobs Act in the prior year, with underlying operational improvements such as increased fuel margins and positive same-store sales in grocery and prepared foods categories. The company also continued its investment in store remodels and technology, signaling a commitment to enhancing customer experience and operational efficiency.
Financial Highlights
48 data points| Revenue | $9.35B |
| Gross Profit | $1.95B |
| Operating Expenses | $1.39B |
| Interest Expense | $55.66M |
| Net Income | $203.89M |
| EPS (Basic) | $5.55 |
| EPS (Diluted) | $5.51 |
| Shares Outstanding (Basic) | 36.71M |
| Shares Outstanding (Diluted) | 36.98M |
Key Highlights
- 1Expansion through new store construction (56), acquisitions (24), and integration of previously acquired stores, bringing the total store count to 2,146 by April 30, 2019.
- 2Total revenue increased by 11.5% to $9.35 billion, largely driven by a 13.7% increase in retail fuel sales, which represented 62.5% of total revenue.
- 3Revenue less cost of goods sold (excluding depreciation and amortization) increased across all categories: Fuel (up to 20.3 cents/gallon), Grocery & other merchandise (32.1%), and Prepared food & fountain (62.2%), indicating improved profitability on sales.
- 4Same-store sales showed positive trends in inside sales, with Grocery & other merchandise up 3.6% and Prepared food & fountain up 1.9%, although fuel gallons sold decreased by 1.7%.
- 5Investments were made in capital expenditures, totaling $462.9 million, primarily for store construction, acquisition, and remodeling, with an anticipated $516 million for fiscal 2020.
- 6The company maintained a strong balance sheet with total assets of $3.73 billion and shareholders' equity of $1.41 billion, supported by a $300 million revolving credit facility.
- 7Net income decreased from $317.9 million in FY18 to $203.9 million in FY19, primarily due to the absence of the prior year's significant tax benefit from the Tax Cuts and Jobs Act.