8-KRegulation FD

CASEYS GENERAL STORES INC 8-K Report, Regulation FD Disclosure (Jan 14, 2010)

Filed January 14, 2010For Securities:CASY

Summary

This Form 8-K filing from Casey's General Stores, Inc. on January 14, 2010, provides an update on their December 2009 same-store sales performance. While gasoline gallons sold experienced a slight decrease of 0.8% compared to the prior year, the company reported a gasoline margin that exceeded their fiscal 2010 goal of 11.0 cents per gallon. This indicates a positive trend in fuel profitability despite softer volume. In contrast to the gasoline segment, the prepared food and fountain category showed robust growth, with same-store sales increasing by 4.4%. Additionally, grocery and other merchandise sales saw a modest increase of 1.6%. Investors should note that the reported grocery and other merchandise sales were impacted by a recent federal excise tax increase on cigarettes, which accounted for approximately 3.0% of these sales. Overall, the results suggest a mixed performance, with strengths in prepared foods and fuel margins offsetting slight weakness in fuel volume.

Key Highlights

  • 1Reported December 2009 same-store sales results.
  • 2Same-store gasoline gallons sold decreased by 0.8% compared to December 2008.
  • 3Gasoline margin in December 2009 exceeded the fiscal 2010 goal of 11.0 cents per gallon.
  • 4Average retail price of gasoline sold in December 2009 was $2.47 per gallon.
  • 5Same-store sales for prepared food and fountain increased by 4.4% in December 2009.
  • 6Same-store sales for grocery and other merchandise increased by 1.6% in December 2009.
  • 7A federal excise tax increase on cigarettes impacted grocery and other merchandise sales by approximately 3.0%.

Frequently Asked Questions

In December 2009, Casey's General Stores reported a 0.8% decrease in same-store gasoline gallons sold year-over-year. However, the gasoline margin surpassed the company's fiscal 2010 goal of 11.0 cents per gallon. Prepared food and fountain same-store sales grew by 4.4%, and grocery and other merchandise same-store sales increased by 1.6%.

The recent federal excise tax increase on cigarettes had an approximate 3.0% impact on Casey's grocery and other merchandise sales for December 2009. This means that without this tax increase, the reported growth in this category would have been higher.

The filing indicates that the gasoline margin in December 2009 exceeded the fiscal 2010 goal. While this is a positive indicator for profitability, the sustainability of this margin will depend on various market factors and the company's ongoing operational strategies. Investors may want to monitor future reports for continued margin performance.

The 'Regulation FD Disclosure' means that the information provided in this Item 7.01 is being publicly disseminated to avoid selective disclosure of material non-public information. Importantly, this information is furnished and not deemed 'filed' for purposes of Section 18 of the Exchange Act, meaning it doesn't automatically trigger liability under that section nor is it automatically incorporated into future SEC filings unless expressly referenced.