Summary
Casey's General Stores, Inc. (CASY) reported its fiscal third-quarter and nine-month results for the period ending January 31, 2017. The company demonstrated revenue growth driven by increased fuel gallons sold and higher sales in grocery, merchandise, and prepared food and fountain categories. Despite revenue increases, net income for both the quarter and the nine-month period saw a decline compared to the prior year. This was attributed to higher operating expenses, increased depreciation and amortization, and lower fuel margins per gallon, alongside slight decreases in inside sales margins. Operationally, Casey's continued its expansion strategy, with new store constructions, replacements, major remodels, and acquisitions. The company also highlighted its continued investment in growth programs and store infrastructure. While overall profitability decreased, the balance sheet shows a healthy increase in cash and cash equivalents and a strengthening current ratio. Management remains confident in its liquidity and ability to fund future growth and operations through operating cash flow, existing credit lines, and potential debt issuances.
Financial Highlights
46 data points| Revenue | $1.77B |
| Cost of Revenue | $1.38B |
| Gross Profit | $389.63M |
| Operating Expenses | $292.32M |
| Interest Expense | $10.56M |
| Net Income | $22.84M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 39.19M |
| Shares Outstanding (Diluted) | 39.66M |
Key Highlights
- 1Total revenue increased by 13.0% for the third quarter and 2.2% for the first nine months of fiscal 2017 compared to the prior year periods.
- 2Net income decreased by 40.1% for the third quarter and 17.6% for the nine months ended January 31, 2017, year-over-year.
- 3Fuel gallons sold increased by 5.5% in the third quarter, while fuel gross profit margin per gallon decreased slightly.
- 4Same-store sales for grocery and other merchandise increased by 3.0% and prepared food and fountain increased by 5.8% in the third quarter.
- 5Operating expenses increased significantly by 12.6% in the third quarter and 11.2% in the nine-month period, driven by wage increases and growth program expansion.
- 6Depreciation and amortization expense rose by 16.7% for the quarter and 16.5% for the nine-month period due to capital expenditures.
- 7Cash and cash equivalents increased substantially to $115.7 million as of January 31, 2017, from $75.8 million at the beginning of the fiscal year.