Casey's Begins Fiscal 2006 with Record Quarter.ANKENY, Iowa Ankeny is a city in Polk County, Iowa, United States. The population was 27,118 at the 2000 census, while a special census taken by the city in 2005 counted 36,162 residents.[1] It is part of the Des Moines metropolitan area. -- Casey's General Stores Casey's General Stores, Inc. NASDAQ: CASY is a chain of convenience stores in the Midwestern United States, primarily within the states of Iowa, Illinois, and Missouri. The company is headquartered in Ankeny, Iowa. , Inc. (Nasdaq:CASY CASY Chemical Agent Storage Yard ) today reported an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high in earnings for the first quarter of fiscal 2006 ended July July: see month. 31, 2005. Earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were up 37.5% to $0.44 compared with $0.32 for the first quarter of fiscal 2005. Total sales were up 19% to $860.8 million, and gross profit rose 14.5% to a record $140 million. "A great first quarter gave us a running start toward our annual goals," said Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Ronald M. Lamb. Gasoline--The Company sold 287.3 million gallons of gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by compared with 258.5 million in the first quarter of fiscal 2005. "Our 11.1% increase shows consumers are continuing to fill their tanks at Casey's," said Lamb, "and affirms the value of our consistent policy of pricing competitively." On a same-store basis, gallons sold were up 7.7%, well over the annual goal of achieving a 2% same-store increase. "Our average margin per gallon gallon: see English units of measurement. was 11.7 cents, considerably higher than our goal of 10.5 cents, and our gross profit improved to $33.5 million from $30.6 million," Lamb reported. Grocery & Other Merchandise--Same-store sales rose 7.4% and the average margin improved to 32% from 31.4% the same quarter a year ago. The annual goal is to increase same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. 3% with an average margin of 31.5%. Total sales were up 10.8% to $213.6 million, and gross profit grew 13% to $68.4 million. "We are especially encouraged by the progress we made in this category," said Lamb. "Point-of-sale point of sale n. pl. points of sale A business or place where a product or service can be purchased. Also called point of purchase. point data enhanced our product management, and our strategic price increases helped margins without slowing sales. The lottery lottery, scheme for distributing prizes by lot or other method of chance selection to persons who have paid for the opportunity to win. The term is not applicable when lots are drawn without payment by the interested parties to determine some matter, e.g. will be an ongoing benefit--not only for the commissions it adds to our bottom line but for the traffic it draws to our stores." Prepared Food & Fountain--Lamb stated, "This category had another outstanding quarter." Total sales were up 11.6% to $57.6 million; same-store sales rose 7.2%, surpassing the annual goal of 5.5%. The average margin was 64%, far ahead of the 60.5% goal, and gross profit increased to $36.8 million from $30.3 million. "We grew gross profit 21.5% by meeting customer demand, controlling stales, benefiting from earlier price increases on selected items, and having a lower wholesale cheese price," Lamb elaborated e·lab·o·rate adj. 1. Planned or executed with painstaking attention to numerous parts or details. 2. Intricate and rich in detail. v. e·lab·o·rat·ed, e·lab·o·rat·ing, e·lab·o·rates v. . "We expect continued growth in the second quarter." Operating Expenses--The annual goal is to hold the percentage increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to less than the percentage increase in gross profit. A major component of operating expenses for Casey's is bank charges, which were higher in the first quarter because more customers used credit cards to pay for more expensive gasoline. "Though operating expenses were up," said Lamb, "our sound management strategies held the increase to 9.1% while we grew gross profit 14.5%." Expansion--Acquisitions are the centerpiece of the Company's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth strategy. Casey's is continuing its careful due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. on the pending acquisition of up to 58 stores from Gas 'N Shop, Inc. Management expects to complete that transaction in the second quarter and is also pursuing other opportunities. The annual goal is to acquire an additional 30 stores and to build 10 new stores. As of July 31, 2005 the Company had completed 11 acquisitions, had written agreements for 4 more, and had built 2 new stores. At its August meeting, the Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $0.045 per share, payable November November: see month. 15, 2005 to shareholders of record on November 1, 2005. Board members join management in inviting all shareholders and prospective investors to attend Casey's upcoming annual meeting. The meeting will convene CONVENE, civil law. This is a technical term, signifying to bring an action. at 9:00 a.m., September September: see month. 16, 2005 at the Company's corporate headquarters in Ankeny, Iowa.
Casey's General Stores, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share amounts)
Three months ended July 31,
2005 2004
------------- -------------
Net sales $860,758 $723,398
Franchise revenue 185 328
------------- -------------
Total revenue 860,943 723,726
------------- -------------
Cost of goods sold 720,727 601,130
Operating expenses 89,740 82,235
Depreciation and amortization 13,751 12,391
Interest, net 2,242 2,799
------------- -------------
826,460 698,555
------------- -------------
Earnings from continuing operations before
income taxes and cumulative effect of
accounting change 34,483 25,171
Federal and state income taxes 12,368 8,960
------------- -------------
Earnings from continuing operations before
cumulative effect of accounting change 22,115 16,211
Loss on discontinued operations, net of
tax benefit of $49 and $150 87 272
Cumulative effect of accounting change,
net of tax benefit of $639 1,136 ------
------------- -------------
Net earnings $20,892 $15,939
============= =============
Basic
Earnings from continuing operations
before cumulative effect of accounting
change $.44 $.32
Loss on discontinued operations ------ ------
Cumulative effect of accounting change (.02) ------
------------- -------------
Net earnings $.42 $.32
============= =============
Diluted
Earnings from continuing operations
before cumulative effect of accounting
change $.43 $.32
Loss on discontinued operations ------ ------
Cumulative effect of accounting change (.02) ------
------------- -------------
Net earnings $.41 $.32
============= =============
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
July 31 April 30,
2005 2005
------------- -------------
Assets
Current assets
Cash and cash equivalents $71,520 $49,051
Receivables 8,241 7,481
Inventories 79,419 75,392
Prepaid expenses 4,606 4,579
Income taxes receivable ------ 5,927
------------- -------------
Total current assets 163,786 142,430
----------------------------------------------------------------------
Other assets, net of amortization 6,799 5,567
Property and equipment, net of accumulated
depreciation
July 31, 2005 $455,445
April 30, 2005 $447,197 733,902 722,912
------------- -------------
Total assets $904,487 $870,909
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt $28,992 $27,636
Accounts payable 115,048 100,640
Accrued expenses 45,023 41,851
Income taxes payable 8,385 ------
------------- -------------
Total current liabilities 197,448 170,127
----------------------------------------------------------------------
Long-term debt, net of current
maturities 111,176 123,064
Deferred income taxes 100,407 102,039
Deferred compensation 6,764 6,542
------------- -------------
Total liabilities 415,795 401,772
------------- -------------
Total shareholders' equity 488,692 469,137
------------- -------------
Total liabilities and shareholders' equity $904,487 $870,909
======================================================================
Certain statements in this news release, including any discussion of management expectations for future periods, constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by those statements. Casey's disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
----------------------------------------------------------------------
Sales and Gross Profit by Product
(Amounts in thousands)
Three months Grocery Prepared
ended & Other Food &
7/31/05 Gasoline Merchandise Fountain Other Total
Sales $586,090 $213,601 $57,584 $3,483 $860,758
Gross profit $33,519 $68,352 $36,835 $1,325 $140,031
Margin 5.7% 32.0% 64.0% 38.0% 16.3%
Gasoline
gallons 287,267
Three months
ended
7/31/04
Sales $473,355 $192,771 $51,590 $5,682 $723,398
Gross profit $30,627 $60,498 $30,309 $834 $122,268
Margin 6.5% 31.4% 58.7% 14.7% 16.9%
Gasoline
gallons 258,506
----------------------------------------------------------------------
--------------------------------------------------
Gasoline Gallons
Same-store Sales Growth
Fiscal
Q1 Q2 Q3 Q4 Year
------ ------ ------ ------ ------
F2006 7.7%
F2005 -1.3 1.0% 2.8% 5.6% 1.9%
F2004 6.4 3.4 0.7 1.7 3.1
F2003 -5.5 -5.1 -4.4 4.1 -3.0
--------------------------------------------------
--------------------------------------------------
Gasoline Margin
(Cents per gallon)
Fiscal
Q1 Q2 Q3 Q4 Year
------ ------ ------ ------ ------
F2006 11.7
F2005 11.9 9.7 10.2 10.7 10.7
F2004 9.8 11.9 9.1 9.5 10.1
F2003 9.9 11.7 11.9 10.5 11.0
--------------------------------------------------
--------------------------------------------------
Grocery & Other Merchandise
Same-store Sales Growth
Fiscal
Q1 Q2 Q3 Q4 Year
------ ------ ------ ------ ------
F2006 7.4%
F2005 2.1 4.8% 6.8% 6.3% 4.8%
F2004 0.6 -0.5 -1.2 2.8 0.4
F2003 4.2 0.8 -3.1 -1.9 0.2
--------------------------------------------------
--------------------------------------------------
Grocery & Other Merchandise
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
------ ------ ------ ------ ------
F2006 32.0%
F2005 31.4 31.0% 31.7% 30.0% 30.9%
F2004 31.7 32.5 31.1 29.3 31.2
F2003 31.3 33.1 30.8 31.5 31.7
--------------------------------------------------
--------------------------------------------------
Prepared Food & Fountain
Same-store Sales Growth
Fiscal
Q1 Q2 Q3 Q4 Year
------ ------ ------ ------ ------
F2006 7.2%
F2005 6.1 9.0% 9.0% 9.8% 8.4%
F2004 5.8 4.1 4.5 7.6 5.5
F2003 2.8 2.0 -2.9 2.4 1.1
--------------------------------------------------
--------------------------------------------------
Prepared Food & Fountain
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
------ ------ ------ ------ ------
F2006 64.0%
F2005 58.8 60.5% 61.4% 61.0% 60.3%
F2004 60.9 62.9 60.4 58.6 60.7
F2003 59.2 60.2 60.4 58.2 59.5
--------------------------------------------------
Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on September 7, 2005. The call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at 9:30 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. via the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of our Web site and will be available in an archived format. |
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