8-KRegulation FDOther Events

CASEYS GENERAL STORES INC 8-K Report, Regulation FD Disclosure (Apr 16, 2012)

Filed April 16, 2012For Securities:CASY

Summary

This 8-K filing from Casey's General Stores, Inc. (CASY) provides an update on March 2012 sales performance and a significant development regarding ongoing litigation. The company reported strong same-store sales growth, particularly in prepared food and fountain, and a healthy increase in grocery and other merchandise. Gasoline gallons sold also saw a modest increase, with margins meeting fiscal year goals and the average retail price remaining stable. Furthermore, Casey's has reached an agreement in principle to settle the "hot fuels" multidistrict litigation. While the terms require court approval and are expected to take several months to finalize, the agreement, if approved, will result in the dismissal of all claims against the company. The financial impact of this settlement is not anticipated to be material, offering potential resolution to a significant legal overhang.

Key Highlights

  • 1Strong March 2012 same-store sales growth: Prepared food and fountain increased by 17.7%, and grocery and other merchandise by 12.2%.
  • 2Positive gasoline sales performance: Same-store gallons sold increased by 2.8% in March 2012 compared to March 2011.
  • 3Gasoline margins met expectations: The gasoline margin was in line with the company's fiscal 2012 goal of 13.5 cents per gallon.
  • 4Stable average gasoline price: The average retail price of gasoline sold in March 2012 was $3.68 per gallon.
  • 5Agreement in principle to settle "hot fuels" litigation: Casey's has reached a settlement agreement for the multidistrict litigation.
  • 6Litigation claims to be dismissed if settlement approved: The agreement, upon court approval, will result in the dismissal of all claims against Casey's.
  • 7Immaterial financial impact expected from settlement: The company does not anticipate a material financial impact from the litigation settlement.

Frequently Asked Questions

Casey's General Stores experienced strong same-store sales growth in March 2012, with prepared food and fountain sales increasing by 17.7% and grocery and other merchandise sales up 12.2% compared to the prior year. Gasoline gallons sold also saw a modest 2.8% increase.

Casey's General Stores has reached an agreement in principle with plaintiffs' counsel to settle the "hot fuels" multidistrict litigation. The settlement requires court approval, which is expected to take several months, and if approved, will result in the dismissal of all claims against the company.

The company anticipates that the financial impact of the settlement on Casey's General Stores will not be material.

In March 2012, Casey's reported a 2.8% increase in same-store gasoline gallons sold compared to March 2011. The gasoline margin was 13.5 cents per gallon, meeting the company's fiscal 2012 goal, and the average retail price of gasoline was $3.68 per gallon.