Summary
Casey's General Stores, Inc. (CASY) reported its third-quarter and nine-month results for the fiscal year ending January 31, 2016. While total revenue saw a decrease primarily due to lower fuel prices, the company demonstrated resilience with strong growth in same-store sales for grocery/merchandise and prepared food/fountain categories. Net income for the nine months increased by a significant 28.5%, driven by increased fuel gallons sold, improved margins in prepared foods, and effective cost containment, alongside strategic store expansion. The company continues its aggressive growth strategy, with significant investments in new store construction, replacements, and remodels. Despite ongoing capital expenditures and a substantial debt load, Casey's maintains sufficient liquidity through operating cash flow and its credit line, indicating a positive outlook for continued expansion and operational efficiency. Investors should note the company's focus on diversifying revenue streams beyond fuel and managing operational costs effectively.
Financial Highlights
45 data points| Revenue | $1.57B |
| Cost of Revenue | $1.19B |
| Gross Profit | $371.17M |
| Operating Expenses | $259.63M |
| Interest Expense | $10.13M |
| Net Income | $38.10M |
| EPS (Basic) | $0.98 |
| EPS (Diluted) | $0.97 |
| Shares Outstanding (Basic) | 39.03M |
| Shares Outstanding (Diluted) | 39.44M |
Key Highlights
- 1Total revenue decreased by 6.3% for the third quarter and 9.4% for the nine months, largely driven by a significant decrease in average retail fuel prices (20.4% in Q3 and 24.6% year-to-date).
- 2Same-store sales for grocery and other merchandise increased by 7.1% in Q3 and 10.2% year-to-date, while prepared food and fountain sales increased by 6.0% in Q3 and 13.0% year-to-date.
- 3Gross profit margin improved to 23.7% in Q3 (vs. 21.0% prior year) and 22.1% year-to-date (vs. 17.9% prior year), with notable increases in fuel and prepared food margins.
- 4Net income increased by 28.5% for the nine months ended January 31, 2016, reaching $178.9 million, compared to $139.3 million in the prior year.
- 5The company is actively expanding, with 31 new-store constructions, 11 replacement stores, and 60 major remodels completed in the first nine months. They have 22 new stores under construction and 59 sites under contract.
- 6Capital expenditures remained significant, with $316.8 million spent in the first nine months, primarily on property and equipment for store expansion and improvements.
- 7Operating expenses increased by 8.7% year-to-date, partly due to operating more stores and expanding programs, but were partially offset by lower transportation costs.