10-QPeriod: Q1 FY2015

CASEYS GENERAL STORES INC Quarterly Report for Q1 Ended Jul 31, 2014

Filed September 8, 2014For Securities:CASY

Summary

Casey's General Stores, Inc. (CASY) reported its first quarter fiscal year 2015 results for the period ending July 31, 2014. The company saw a total revenue increase of 8.3% to $2.29 billion, driven by growth in fuel gallons sold and strong same-store sales in grocery/merchandise and prepared foods. However, net income decreased by 6.1% to $52.3 million, or $1.34 per diluted share, compared to the prior year. This decline was primarily attributed to a decrease in renewable fuel credits and higher input costs for prepared foods, partially offset by an increased store count and improved same-store sales. Despite the dip in net income, the company demonstrated continued expansion with 88 more stores in operation compared to the previous year and completed seven new-store constructions, four replacement stores, and acquired 25 additional stores during the quarter. The company also provided guidance on its capital expenditure plans, anticipating $360 million to $410 million for fiscal year 2015 to support continued growth through construction, acquisition, and remodeling. Management expressed confidence in the company's liquidity and ability to fund operations and growth through operating cash flow and existing credit facilities.

Financial Highlights

43 data points
Beta

Revenue

$2.29B

16.2% Gross Margin

Net Income

$50.10M

2.2% Net Margin

EPS (Diluted)

$1.28

Total Assets

$2.39B

Cash & Equivalents

$71.55M

Free Cash Flow

$27.57M

Financial Statements
Beta
Revenue$2.29B
Cost of Revenue$1.92B
Gross Profit$370.91M
Operating Expenses$244.32M
Interest Expense$10.51M
Net Income$50.10M
EPS (Basic)$1.30
EPS (Diluted)$1.28
Shares Outstanding (Basic)38.62M
Shares Outstanding (Diluted)39.01M

Key Highlights

  • 1Total revenue increased by 8.3% to $2.29 billion for the first quarter of fiscal 2015 compared to the prior year.
  • 2Net income decreased by 6.1% to $52.3 million, with diluted EPS falling to $1.34 from $1.43 year-over-year.
  • 3Same-store sales showed strength with a 7.7% increase in grocery/other merchandise and an 11.1% increase in prepared foods and fountain.
  • 4The company expanded its store base, operating 1,837 stores by July 31, 2014, with plans for significant capital expenditures for future growth.
  • 5Operating expenses increased by 13.1%, largely due to the increased store count and expansion of operating initiatives.
  • 6Gross profit margin on fuel sales decreased due to lower renewable fuel credits and increased input costs in prepared foods.
  • 7The company's balance sheet shows total assets of $2.38 billion and total liabilities of $1.61 billion as of July 31, 2014.

Frequently Asked Questions

The decrease in net income was primarily due to a reduction in renewable fuel credits sold and higher input costs in the prepared foods category. These factors outweighed the benefits of increased same-store sales and a higher store count.

Casey's is investing in future growth through new store constructions, replacement stores, and acquisitions. They plan to expend between $360 million and $410 million in fiscal year 2015 for these initiatives, funded by existing cash and operational funds.

Management believes the company's current aggregate $100,000 bank line of credit, combined with existing cash and expected future cash flow from operations, will be sufficient to meet working capital needs and fund anticipated growth.

Fuel revenue increased by 6.1% due to higher gallons sold, though average price per gallon decreased. Grocery and other merchandise sales rose by 13.0%, and prepared food and fountain sales increased by 17.1%. Other revenues also saw an increase of 8.2%.