Summary
Casey's General Stores, Inc. (CASY) reported its third-quarter results for fiscal year 2020, ending January 31, 2020. The company experienced a notable increase in total revenue, driven primarily by higher fuel prices and expanded store count. However, net income saw a decrease compared to the prior year's quarter, largely due to lower relative fuel contributions and increased operating expenses. Despite the quarterly net income decline, the nine-month year-to-date performance shows significant growth in net income, driven by store expansion and improved fuel gross profit dollars. The company continues to invest heavily in capital expenditures, particularly for store construction and remodeling, with a clear strategy to enhance operational efficiencies and respond to competitive pressures. Management remains confident in the company's liquidity, supported by operating cash flow and existing credit facilities.
Financial Highlights
46 data points| Revenue | $2.25B |
| Cost of Revenue | $1.75B |
| Gross Profit | $496.86M |
| Operating Expenses | $377.33M |
| Interest Expense | $13.21M |
| Net Income | $33.96M |
| EPS (Basic) | $0.92 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Basic) | 36.92M |
| Shares Outstanding (Diluted) | 37.14M |
Key Highlights
- 1Total revenue for the third quarter increased by 9.8% to $2.25 billion, primarily driven by a 11.5% increase in retail fuel sales due to higher average prices.
- 2Net income for the third quarter decreased by 18.8% to $33.96 million, or $0.91 per diluted share, compared to $41.84 million, or $1.13 per diluted share, in the prior year's quarter.
- 3For the first nine months of fiscal 2020, total revenue increased by 2.6% to $7.36 billion, and net income rose by 12.9% to $201.76 million, or $5.43 per diluted share.
- 4Operating expenses increased by 10.5% in the third quarter and 8.2% for the first nine months, largely due to operating more stores and increased technology, credit card fees, and incentive compensation costs.
- 5The company's store count grew to 2,193 as of January 31, 2020, with plans for further expansion, including 11 acquisition stores under agreement and a new store pipeline of 88 sites.
- 6Capital expenditures were substantial at $376.6 million for the nine months, primarily for property and equipment related to store construction, acquisition, and remodeling, with an anticipated $516 million for fiscal 2020.
- 7The current ratio declined significantly to 0.35 from 0.69 (April 30, 2019), primarily due to the reclassification of a large senior note to current liabilities, which management intends to refinance.