Casey's Counters Tough Gas Market with Improved Store Sales.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 basic earnings of $0.22 per share for the second quarter of fiscal 2005 ended October October: see month. 31, 2004, down from $0.32 a year ago. Earnings year to date were $0.54 compared with $0.60 the previous midyear mid·year n. 1. The middle of the calendar or academic year. 2. a. An examination given in the middle of a school year. b. midyears A series of such examinations. . "Despite the challenging 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 environment, we are pleased with our achievements in the second quarter, especially with the gains made inside our stores," 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--Casey's gasoline goal is to increase same-store gallons sold at least 2% with an average margin of at least 10.5 cents. "We gained ground on same-store gallons sold in the quarter. Rising wholesale prices, however, lowered our average margin to 9.7 cents from 11.9 cents for the same period a year ago," Lamb explained. "The lower margin held our gasoline gross profit to $25.2 million, down from $30 million." As of midyear, gallons sold increased to 522.9 million, the average margin was above goal at 10.8 cents, and gasoline gross profit was $56.3 million. Grocery & Other Merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain (G&OM)--The G&OM 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. 2.9% with an average margin over 32%. Year to date, total sales were up 5.5% to $384.2 million with an average margin of 31%, same-store sales increased 3.3%, and gross profit rose 2.8% to $119.3 million. Lamb stated, "We are responding to changes cigarette cigarette Paper-wrapped roll of finely cut tobacco for smoking. Cigarette tobacco is usually milder than cigar tobacco. The Aztecs and other New World peoples smoked tobacco in hollow reeds, in canes, or wrapped in leaves, but it was in pipes and as cigars (cut tobacco manufacturers made in their wholesale programs, and analysis of 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 is adding significantly to our success at managing merchandise effectively." Prepared Food & Fountain fountain, natural or artificially conveyed flow of water. In ancient Greece columnar shrines were built over springs and dedicated to deities or nymphs. In ancient Rome fountains fed by the great aqueduct system furnished water in the streets, in the villa gardens, (PF&F)--The goal for PF&F is to increase same-store sales 6% with an average margin over 60%. For the year to date, total sales rose 11.7% to $105.9 million with an average margin of 59.6%, same-store sales climbed 7.4%, and gross profit was up 7.7% to $63.1 million. Lamb gave new menu and fountain offerings and better inventory control as reasons for greater profitability. "We've we've Contraction of we have. we've have experienced exceptional growth the past six quarters," Lamb added, "and we are confident there is more growth ahead." Point of Sale (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale )--The Company intends to have over 900 stores with full POS by fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. . At midyear, the total was 740. "Our accelerated installation rate will enable us to exceed this goal," said Lamb. "We now are developing a platform for implementing the data warehouse and business intelligence software we tested in the first quarter. We believe the additional refinements in our data analysis processes gained from this initiative will enhance operational efficiencies." Operating Expenses--The Company's goal for 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. is to hold the percentage increase to no more than the percentage increase in inside sales. Year to date, total inside sales were up 6.8% to $490.1 million while operating expenses were up 8.2% to $168 million. Total gross profit rose 3.5% to $240.2 million. "A substantial rise in the number of credit card transactions and higher credit card totals for gasoline led to a 30% increase in bank charges," 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. , "but overall we are managing our expenses well. Our ongoing priority is to increase gross profit." Expansion--The Company's final goal is to acquire at least 43 stores and build 15 new stores to achieve 3.5% total store growth. As of October 31, Casey's had constructed 5 new stores, completed 4 acquisitions, signed written agreements for another 25, and negotiated preliminary agreements for 5 more stores. "We anticipate closing the majority of our written agreements in the next quarter," Lamb stated. "There continue to be ample acquisition opportunities, and we are aggressively pursuing them." At its December December: see month. 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 $0.04 per basic share. The dividend is payable February February: see month. 15, 2005 to shareholders of record on February 1, 2005.
Casey's General Stores, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share amounts)
Three months ended Six months ended
October 31, October 31,
2004 2003 2004 2003
---------- --------- ----------- -----------
Net sales $717,027 $611,103 $1,451,508 $1,220,858
Franchise revenue 302 463 630 966
---------- --------- ----------- -----------
Total revenue $717,329 $611,566 $1,452,138 $1,221,824
---------- --------- ----------- -----------
Cost of goods sold $600,664 $493,634 $1,211,316 $988,874
Operating expenses 84,105 77,723 168,044 155,257
Depreciation and
amortization 12,897 12,317 25,566 24,482
Interest, net 2,572 3,056 5,371 6,301
---------- --------- ----------- -----------
$700,238 $586,730 $1,410,297 $1,174,914
---------- --------- ----------- -----------
Income before income taxes $17,091 $24,836 $41,841 $46,910
Federal and state income
taxes 6,085 9,066 14,896 17,123
---------- --------- ----------- -----------
Net income $11,006 $15,770 $26,945 $29,787
========== ========= =========== ===========
Basic earnings per share $.22 $.32 $.54 $.60
Weighted average shares
outstanding 50,087 49,833 50,062 49,799
Diluted earnings per share $.22 $.32 $.54 $.60
Weighted average shares
outstanding 50,277 50,017 50,247 49,966
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
October 31, April 30,
2004 2004
----------- -----------
Assets
Current assets
Cash and cash equivalents $59,476 $45,887
Receivables 7,722 5,751
Inventories 78,365 77,895
Prepaid expenses 6,879 6,392
Income taxes receivable 13,868 10,882
----------- -----------
Total current assets $166,310 $146,807
----------------------------------------------------------------------
Other assets, net of amortization 1,195 1,154
Property and equipment, net of accumulated
depreciation
October 31, 2004 $432,815
April 30, 2004 $409,969 702,974 686,625
----------- -----------
Total assets $870,479 $834,586
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt $33,275 $28,345
Accounts payable 97,159 83,388
Accrued expenses 38,685 34,107
----------- -----------
Total current liabilities $169,119 $145,840
----------------------------------------------------------------------
Long-term debt, net of current maturities $127,473 $144,158
Deferred income taxes 106,031 99,159
Deferred compensation 5,846 5,635
----------- -----------
Total liabilities $408,469 $394,792
----------- -----------
Total shareholders' equity 462,010 439,794
----------- -----------
Total liabilities and shareholders' equity $870,479 $834,586
======================================================================
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
(Dollars in thousands)
Six months ended Gasoline Grocery & Prepared Other Total
10/31/04 other food &
merchandise fountain
Sales $950,264 $384,221 $105,919 $11,104 $1,451,508
Gross profit $56,267 $119,279 $63,101 $1,545 $240,192
Margin 5.9% 31.0% 59.6% 13.9% 16.5%
Gasoline gallons 522,863
Six months ended
10/31/03
Sales $747,783 $364,098 $94,830 $14,147 $1,220,858
Gross profit $55,534 $116,060 $58,609 $1,781 $231,984
Margin 7.4% 31.9% 61.8% 12.6% 19.0 %
Gasoline gallons 511,156
----------------------------------------------------------------------
Gasoline Gallons
Same-store Sales Growth
(Stores open for at least one full year)
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
F2005 -1.4% 0.8%
F2004 6.4 3.4 0.7% 1.7% 3.1
F2003 -5.5 -5.1 -4.4 4.1 -3.0
F2002 6.3 11.5 17.7 2.0 9.2
----------------------------------------------------------------------
Gasoline Margin
(Cents per gallon)
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
F2005 11.8 cents 9.7 cents
F2004 9.8 11.9 9.1 cents 9.5 cents 10.1
F2003 9.9 11.7 11.9 10.4 11.0
F2002 9.3 10.2 7.5 10.4 9.3
----------------------------------------------------------------------
Grocery & Other Merchandise
Same-store Sales Growth
(Stores open for at least one full year)
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
F2005 1.9% 4.7%
F2004 0.6 -0.5 -1.2% 2.8% 0.4
F2003 4.2 0.8 -3.1 -1.9 0.6
F2002 8.7 10.6 19.0 9.7 11.7
----------------------------------------------------------------------
Grocery & Other Merchandise
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
F2005 31.3% 30.8%
F2004 31.5 32.3 30.8% 29.2% 31.0
F2003 31.0 33.0 30.6 31.2 31.5
F2002 32.9 30.6 27.0 30.4 30.3
----------------------------------------------------------------------
Prepared Food & Fountain
Same-store Sales Growth
(Stores open for at least one full year)
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
F2005 5.8% 8.8%
F2004 5.8 4.1 4.5% 7.6% 5.5
F2003 2.8 2.0 -2.9 2.4 1.1
F2002 7.0 7.6 15.4 3.5 8.3
----------------------------------------------------------------------
Prepared Food & Fountain
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
F2005 58.7% 60.4%
F2004 60.8 62.8 60.3% 58.5% 60.6
F2003 59.1 60.1 60.3 58.0 59.4
F2002 54.9 53.9 56.8 56.2 55.4
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Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on December 8, 2004. 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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