CASY Caseys General Stores Inc

Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq: CASY) one of the leading convenience store chains in the United States, today announced financial results for the three months ended July 31, 2024.

First Quarter Key Highlights

• Diluted EPS of $4.83, up 7% from the same period a year ago. Net income was $180 million, up 6%, and EBITDA1 was $346 million, up 9%, from the same period a year ago.
• Inside same-store sales increased 2.3% compared to prior year, and 7.9% on a two-year stack basis, with an inside margin of 41.7%. Total inside gross profit increased 10.4% to $614.3 million compared to the prior year.
• Same-store fuel gallons were up 0.7% compared to prior year with a fuel margin of 40.7 cents per gallon. Total fuel gross profit increased 5.9% to $314.5 million compared to the prior year.
• Same-store operating expenses excluding credit card fees were up 0.7%, favorably impacted by a 2% reduction in same-store labor hours.
• The previously announced Fikes Wholesale, Inc. ("Fikes") acquisition, with its 198 CEFCO convenience stores, is expected to close in calendar 2024.

"Casey's started the fiscal year off on the right foot and delivered another solid quarter highlighted by strong inside gross profit growth,” said Darren Rebelez, Chairman, President and CEO. “Inside same-store sales were driven by prepared food and dispensed beverage, with hot sandwiches and bakery performing exceptionally well. Our fuel team continues to balance volume and margin as they delivered positive same-store fuel gallons while also achieving over 40 cents per gallon fuel margin. The operations team continues to find efficiencies as we reduced same-store labor hours for the ninth consecutive quarter. Finally, we continue to work on closing the highly strategic Fikes acquisition, and look forward to welcoming their team to the Casey’s family."

Earnings

 

Three Months Ended July 31,

 

2024

 

2023

Net income (in thousands)

$

180,198

 

$

169,237

Diluted earnings per share

$

4.83

 

$

4.52

EBITDA (in thousands)

$

345,782

 

$

316,899

For the quarter, net income, diluted EPS, and EBITDA were up compared to the same period a year ago primarily due to a strong inside margin and fuel margin, partially offset by higher operating expenses due to operating 138 additional stores.

_________________

1 EBITDA is reconciled to net income below.

Inside

 

Three Months Ended July 31,

 

2024

 

2023

Inside sales (in thousands)

$

1,474,107

 

 

$

1,369,749

 

Inside same-store sales

 

2.3

%

 

 

5.4

%

Grocery and general merchandise same-store sales

 

1.6

%

 

 

5.2

%

Prepared food and dispensed beverage same-store sales

 

4.4

%

 

 

5.9

%

Inside gross profit (in thousands)

$

614,322

 

 

$

556,434

 

Inside margin

 

41.7

%

 

 

40.6

%

Grocery and general merchandise margin

 

35.4

%

 

 

34.1

%

Prepared food and dispensed beverage margin

 

58.3

%

 

 

58.2

%

Total inside sales were up 7.6% for the quarter driven by strong performance in the prepared food and dispensed beverage category, including hot sandwiches and bakery as well as non-alcoholic and alcoholic beverages in the grocery and general merchandise category. Inside margin was up 110 basis points compared to the same quarter a year ago, driven primarily by proactive cost of goods management and product mix.

Fuel2

 

Three Months Ended July 31,

 

2024

 

2023

Fuel gallons sold (in thousands)

 

772,536

 

 

 

713,991

 

Same-store gallons sold

 

0.7

%

 

 

0.4

%

Fuel gross profit (in thousands)

$

314,548

 

 

$

296,978

 

Fuel margin (cents per gallon, excluding credit card fees)

 

40.7

¢

 

 

41.6

¢

For the quarter, total fuel gallons sold increased 8.2% compared to the prior year primarily due to the store count increase, while same-store gallons were up 0.7% versus the prior year. The Company’s total fuel gross profit was up 5.9% versus the prior year. The Company sold $4.8 million in renewable fuel credits (RINs) in the first quarter, a decrease of $15.4 million from the same quarter in the prior year.

Operating Expenses

 

Three Months Ended July 31,

 

2024

 

2023

Operating expenses (in thousands)

$

609,474

 

 

$

560,855

 

Credit card fees (in thousands)

$

63,809

 

 

$

60,985

 

Same-store operating expenses excluding credit card fees

 

0.7

%

 

 

3.4

%

Operating expenses increased approximately 9% during the first quarter. Operating 138 more stores than prior year accounted for approximately 5% of the increase. The impact of one-time deal costs related to pending acquisitions was approximately 1% of the increase. Total same-store employee expense contributed to approximately 1% of the increase, as the increases in labor rates were partially offset by a reduction in same-store labor hours.

Expansion

 

Store Count

April 30, 2024

2,658

 

New store construction

10

 

Acquisitions

9

 

Closed

(3

)

July 31, 2024

2,674

 

____________________

2 Fuel category does not include wholesale fuel activity, which is included in Other.

Liquidity

At July 31, 2024, the Company had approximately $1.2 billion in available liquidity, consisting of approximately $305 million in cash and cash equivalents on hand and approximately $900 million in available borrowing capacity on existing lines of credit.

Share Repurchase

During the first quarter, the Company did not repurchase any shares. The Company has approximately $295 million remaining under its existing share repurchase authorization.

Dividend

At its August meeting, the Board of Directors approved a quarterly dividend of $0.50 per share. The dividend is payable November 15, 2024, to shareholders of record on November 1, 2024.

Fiscal 2025 Outlook

The Company is not updating its previously communicated fiscal 2025 outlook until after the closing of the Fikes transaction, with the exception of store growth, which is now expected to be approximately 270 units in fiscal 2025.

Under its previously communicated fiscal 2025 outlook, the Company expects EBITDA to increase at least 8%. The Company expects inside same-store sales to increase 3% to 5% and inside margin comparable to fiscal 2024. The Company expects same-store fuel gallons sold to be between negative 1% to positive 1%. Total operating expenses are expected to increase approximately 6% to 8%. Net interest expense is expected to be approximately $56 million. Depreciation and amortization is expected to be approximately $390 million and the purchase of property and equipment is expected to be approximately $575 million. The tax rate is expected to be approximately 24% to 26% for the year.

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

Three Months Ended July 31,

 

2024

 

2023

Total revenue

$

4,097,737

 

$

3,869,251

Cost of goods sold (exclusive of depreciation and amortization, shown separately below)

 

3,142,481

 

 

2,991,497

Operating expenses

 

609,474

 

 

560,855

Depreciation and amortization

 

94,409

 

 

82,905

Interest, net

 

14,067

 

 

12,495

Income before income taxes

 

237,306

 

 

221,499

Federal and state income taxes

 

57,108

 

 

52,262

Net income

$

180,198

 

$

169,237

Net income per common share

 

 

 

Basic

$

4.86

 

$

4.54

Diluted

$

4.83

 

$

4.52

Basic weighted average shares

 

37,087,231

 

 

37,300,952

Plus effect of stock compensation

 

190,463

 

 

155,187

Diluted weighted average shares

 

37,277,694

 

 

37,456,139

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

 

July 31, 2024

 

April 30, 2024

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

304,988

 

$

206,482

Receivables

 

164,926

 

 

151,793

Inventories

 

452,017

 

 

428,722

Prepaid and other current assets

 

33,071

 

 

25,791

Income taxes receivable

 

—

 

 

17,066

Total current assets

 

955,002

 

 

829,854

Other assets, net of amortization

 

193,314

 

 

195,559

Goodwill

 

652,823

 

 

652,663

Property and equipment, net of accumulated depreciation of $2,943,154 at July 31, 2024 and $2,883,925 at April 30, 2024

 

4,695,286

 

 

4,669,357

Total assets

$

6,496,425

 

$

6,347,433

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities

 

 

 

Current maturities of long-term debt and finance lease obligations

$

208,209

 

$

53,181

Accounts payable

 

597,112

 

 

569,527

Accrued expenses

 

294,233

 

 

330,758

Income taxes payable

 

32,589

 

 

—

Total current liabilities

 

1,132,143

 

 

953,466

Long-term debt and finance lease obligations, net of current maturities

 

1,398,712

 

 

1,582,758

Deferred income taxes

 

603,964

 

 

596,850

Insurance accruals, net of current portion

 

29,724

 

 

30,046

Other long-term liabilities

 

168,962

 

 

168,932

Total liabilities

 

3,333,505

 

 

3,332,052

Total shareholders’ equity

 

3,162,920

 

 

3,015,381

Total liabilities and shareholders’ equity

$

6,496,425

 

$

6,347,433

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

 

 

Three months ended July 31,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net income

$

180,198

 

 

$

169,237

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

94,409

 

 

 

82,905

 

Amortization of debt issuance costs

 

278

 

 

 

278

 

Change in excess replacement cost over LIFO inventory valuation

 

2,431

 

 

 

4,500

 

Share-based compensation

 

11,036

 

 

 

10,468

 

Loss (gain) on disposal of assets and impairment charges

 

2,475

 

 

 

(1,448

)

Deferred income taxes

 

7,114

 

 

 

15,895

 

Changes in assets and liabilities:

 

 

 

Receivables

 

(13,133

)

 

 

(13,179

)

Inventories

 

(25,378

)

 

 

(52,756

)

Prepaid and other current assets

 

(7,280

)

 

 

(2,518

)

Accounts payable

 

17,431

 

 

 

(4,344

)

Accrued expenses

 

(38,750

)

 

 

(20,150

)

Income taxes

 

49,994

 

 

 

39,139

 

Other, net

 

529

 

 

 

1,104

 

Net cash provided by operating activities

 

281,354

 

 

 

229,131

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

 

(100,564

)

 

 

(68,903

)

Payments for acquisition of businesses, net of cash acquired

 

(18,113

)

 

 

(13,297

)

Proceeds from sales of assets

 

6,688

 

 

 

5,784

 

Net cash used in investing activities

 

(111,989

)

 

 

(76,416

)

Cash flows from financing activities:

 

 

 

Payments of long-term debt and finance lease obligations

 

(29,316

)

 

 

(29,665

)

Payments of cash dividends

 

(16,611

)

 

 

(14,945

)

Repurchase of common stock

 

—

 

 

 

(29,893

)

Tax withholdings on employee share-based awards

 

(24,932

)

 

 

(17,969

)

Net cash used in financing activities

 

(70,859

)

 

 

(92,472

)

 

Net increase in cash and cash equivalents

 

98,506

 

 

 

60,243

 

Cash and cash equivalents at beginning of the period

 

206,482

 

 

 

378,869

 

Cash and cash equivalents at end of the period

$

304,988

 

 

$

439,112

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION

 

 

Three months ended July 31,

 

2024

 

2023

Cash paid during the period for:

 

 

 

Interest, net of amount capitalized

$

11,845

 

$

10,701

Income taxes, net

 

—

 

 

—

Noncash investing and financing activities:

 

 

 

Purchased property and equipment in accounts payable

 

55,768

 

 

42,188

Right-of-use assets obtained in exchange for new finance lease liabilities

 

221

 

 

8,345

Right-of-use assets obtained in exchange for new operating lease liabilities

 

—

 

 

2,214

Summary by Category (Amounts in thousands)

Three months ended July 31, 2024

Prepared Food & Dispensed Beverage

 

Grocery & General Merchandise

 

Fuel

 

Other

 

Total

Revenue

$

405,129

 

 

$

1,068,978

 

 

$

2,555,642

 

 

$

67,988

 

 

$

4,097,737

 

Gross profit

$

236,041

 

 

$

378,281

 

 

$

314,548

 

 

$

26,386

 

 

$

955,256

 

 

 

58.3

%

 

 

35.4

%

 

 

12.3

%

 

 

38.8

%

 

 

23.3

%

Fuel gallons sold

 

 

 

 

 

772,536

 

 

 

 

 

Three months ended July 31, 2023

 

 

 

 

 

 

 

 

 

Revenue

$

372,813

 

 

$

996,936

 

 

$

2,427,333

 

 

$

72,169

 

 

$

3,869,251

 

Gross profit

$

216,861

 

 

$

339,573

 

 

$

296,978

 

 

$

24,342

 

 

$

877,754

 

 

 

58.2

%

 

 

34.1

%

 

 

12.2

%

 

 

33.7

%

 

 

22.7

%

Fuel gallons sold

 

 

 

 

 

713,991

 

 

 

 

 

Prepared Food & Dispensed Beverage

 

Prepared Food & Dispensed Beverage

Same-store Sales

Margin

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal

Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal

Year

F2025

4.4

%

 

 

 

 

 

 

 

 

F2025

58.3

%

 

 

 

 

 

 

 

 

F2024

5.9

 

 

6.1

%

 

7.5

%

 

8.8

%

 

6.8

%

F2024

58.2

 

 

59.0

%

 

59.6

%

 

58.1

%

 

58.7

%

F2023

8.4

 

 

10.5

 

 

5.0

 

 

4.9

 

 

7.1

 

F2023

55.6

 

 

56.7

 

 

57.3

 

 

56.8

 

 

56.6

 

Grocery & General Merchandise

 

Grocery & General Merchandise

Same-store Sales

Margin

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal

Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal

Year

F2025

1.6

%

 

 

 

 

 

 

 

 

F2025

35.4

%

 

 

 

 

 

 

 

 

F2024

5.2

 

 

1.7

%

 

2.8

%

 

4.3

%

 

3.5

%

F2024

34.1

 

 

34.0

%

 

33.9

%

 

34.4

%

 

34.1

%

F2023

5.5

 

 

6.9

 

 

5.8

 

 

7.1

 

 

6.3

 

F2023

33.9

 

 

33.3

 

 

34.0

 

 

33.0

 

 

33.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel Gallons

 

Fuel Margin

Same-store Sales

(Cents per gallon, excluding credit card fees)

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal

Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal

Year

F2025

0.7

%

 

 

 

 

 

 

 

 

F2025

40.7

¢

 

 

 

 

 

 

 

 

F2024

0.4

 

 

—

%

 

(0.4

)%

 

0.9

%

 

0.1

%

F2024

41.6

 

 

42.3

¢

 

37.3

¢

 

36.5

¢

 

39.5

¢

F2023

(2.3

)

 

0.3

 

 

(0.5

)

 

—

 

 

(0.8

)

F2023

44.7

 

 

40.5

 

 

40.7

 

 

34.6

 

 

40.2

 

RECONCILIATION OF NET INCOME TO EBITDA

We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. EBITDA is not considered to be a GAAP measure, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. This measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We believe EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use this calculation as a measure of financial performance and debt service capabilities, and it is regularly used by management for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation.

Because non-GAAP financial measures are not standardized, EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of this non-GAAP financial measure with those used by other companies.

The following table contains a reconciliation of net income to EBITDA for the three months ended July 31, 2024 and 2023:

(in thousands)

Three Months Ended July 31,

 

2024

 

2023

Net income

$

180,198

 

$

169,237

Interest, net

 

14,067

 

 

12,495

Federal and state income taxes

 

57,108

 

 

52,262

Depreciation and amortization

 

94,409

 

 

82,905

EBITDA

$

345,782

 

$

316,899

NOTES:

• Gross Profit is defined as revenue less cost of goods sold (exclusive of depreciation and amortization)
• Inside is defined as the combination of grocery and general merchandise and prepared food and dispensed beverage

This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to the ability to consummate the Fikes transaction, the potential impact of consummation of the Fikes transaction on relationships with third parties, expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of the conflict in Ukraine or other geopolitical disruptions, as well as other risks, uncertainties and factors which are described in the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey’s disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise.

Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on September 5, 2024. The call will be broadcast live over the Internet at 7:30 a.m. CDT. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx. No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx for one year after the call.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240904293475/en/

Investor Relations Contact: Brian Johnson (515) 446-6587

Media Relations Contact: Katie Petru (515) 446-6772