Summary
Casey's General Stores, Inc. reported its third quarter and nine-month results for fiscal year 2013, ending January 31, 2013. For the third quarter, total revenue increased 5.3% to $1.66 billion, driven by a 3.9% rise in gasoline sales and strong growth in prepared food and fountain sales (+15.4%). However, net income saw a decrease of 7.4% compared to the prior year, primarily due to higher operating expenses and depreciation and amortization, although an improvement in gasoline gross profit margin provided some offset. The nine-month period also showed revenue growth of 4.0% to $5.44 billion, with a similar trend of increasing operating expenses and depreciation impacting net income, which decreased by 6.8%. The company continues to invest heavily in expanding its store base, acquiring 24 stores and opening 10 new-builds and 8 replacement stores during the quarter, alongside ongoing remodels and conversions to 24-hour operations. Financially, the company reported total assets of $1.93 billion and total liabilities of $1.35 billion as of January 31, 2013. Current liabilities outpaced current assets, resulting in a current ratio of 0.71, a decrease from the prior year's comparable period. Notably, there was a significant increase in short-term debt with $58.6 million outstanding. Despite the decrease in net income and the lower current ratio, management expressed confidence in the company's liquidity, citing operating cash flow and its aggregate $125 million bank line of credit as sufficient to meet working capital needs.
Financial Highlights
45 data points| Revenue | $1.66B |
| Cost of Revenue | $1.41B |
| Gross Profit | $246.87M |
| Operating Expenses | $189.87M |
| Interest Expense | $8.76M |
| Net Income | $13.76M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 38.32M |
| Shares Outstanding (Diluted) | 38.62M |
Key Highlights
- 1Total revenue for the third quarter increased by 5.3% to $1.66 billion, compared to the prior year, driven by higher gasoline sales and strong prepared food and fountain sales.
- 2Despite revenue growth, net income for the third quarter decreased by 7.4% to $15.46 million, attributed to increased operating expenses and depreciation and amortization.
- 3The company continues aggressive expansion, acquiring 24 stores and opening 10 new and 8 replacement stores in the third quarter, contributing to a 12.2% increase in operating expenses.
- 4Gross profit margin on gasoline improved slightly in the third quarter, while margins for grocery/merchandise and prepared foods saw slight decreases.
- 5Total assets grew to $1.93 billion and total liabilities to $1.35 billion, with a notable increase in short-term borrowings and a decline in the current ratio to 0.71.
- 6Capital expenditures remain significant, with $266.3 million spent in the nine-month period for store construction, acquisition, and remodeling.
- 7The effective tax rate decreased to 32.2% in the third quarter due to the retroactive extension of work opportunity tax credits.