10-QPeriod: Q3 FY2023

CASEYS GENERAL STORES INC Quarterly Report for Q3 Ended Jan 31, 2023

Filed March 7, 2023For Securities:CASY

Summary

Casey's General Stores, Inc. reported strong financial performance for the nine months ended January 31, 2023, with total revenue increasing by 23.9% to $11.8 billion and net income rising by 39.5% to $390.6 million compared to the prior year period. This growth was driven by a combination of factors, including the expansion of its store footprint by 41 locations, elevated retail fuel prices, and strategic price adjustments across all product categories. The company demonstrated robust operating income growth, with EBITDA and Adjusted EBITDA increasing by 24.9% and 23.8% respectively for the nine-month period, showcasing effective cost management despite increased operational scale. The company's strategic initiatives, such as the integration of acquired businesses and continued focus on prepared food and beverage offerings, contributed to the improved financial results. Despite ongoing supply chain challenges and labor market pressures, Casey's has maintained its operational resilience. The company also continues to invest in future growth, including the expansion of electric vehicle charging stations and renewable fuel options, positioning itself for evolving consumer demands.

Financial Highlights

45 data points
Beta

Revenue

$3.33B

Net Income

$100.11M

3.0% Net Margin

EPS (Diluted)

$2.67

Total Assets

$5.84B

Cash & Equivalents

$413.20M

Free Cash Flow

$26.52M

Financial Statements
Beta
Revenue$3.33B
Operating Expenses$515.74M
Interest Expense$11.70M
Net Income$100.11M
EPS (Basic)$2.69
EPS (Diluted)$2.67
Shares Outstanding (Basic)37.28M
Shares Outstanding (Diluted)37.56M

Key Highlights

  • 1Total revenue for the nine months ended January 31, 2023, increased by 23.9% to $11.8 billion.
  • 2Net income for the nine months ended January 31, 2023, rose by 39.5% to $390.6 million.
  • 3Diluted earnings per share (EPS) for the third quarter increased to $2.67 from $1.71 in the prior year.
  • 4EBITDA and Adjusted EBITDA showed significant year-over-year growth of 23.8% and 24.9% respectively for the nine-month period.
  • 5The company expanded its store count by 41 locations, contributing to revenue growth.
  • 6Same-store sales in grocery/general merchandise increased by 5.8% and in prepared food/beverages by 5.0% for the quarter.
  • 7Cash and cash equivalents significantly increased to $413.2 million as of January 31, 2023, from $158.9 million at April 30, 2022, leading to an improved current ratio.

Frequently Asked Questions

Casey's General Stores demonstrated strong financial performance for the nine months ended January 31, 2023. Total revenue saw a significant increase of 23.9% to $11.8 billion, and net income grew by 39.5% to $390.6 million compared to the same period last year. This growth was fueled by an expanded store base, higher fuel prices, and increased sales in grocery, general merchandise, and prepared food categories.

Fuel revenue increased by 32.2% for the nine months ended January 31, 2023, driven by a 27.1% increase in the average retail price per gallon and a 4.0% rise in gallons sold. Inside store sales also performed well, with grocery and general merchandise same-store sales increasing by 5.8% and prepared food and dispensed beverage same-store sales growing by 5.0% for the third quarter.

Casey's acknowledges ongoing challenges such as labor shortages and supply chain disruptions but believes its business model is resilient. The company is strategically investing in areas like electric vehicle charging stations and renewable fuel options. They also continue to focus on acquisitions and reinvesting in stores to enhance operational efficiency and respond to competitive pressures.

The company's liquidity has strengthened, with cash and cash equivalents more than doubling to $413.2 million as of January 31, 2023, compared to $158.9 million at April 30, 2022. This is attributed to strong operating cash flows. The current ratio improved to 1.10:1, indicating a healthier short-term financial position. The company believes it has sufficient liquidity to meet its working capital needs and finance future growth.