Casey's Momentum Builds in Fourth 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 earnings for the fourth quarter and the fiscal year ended April 30, 2005. "We finished the year with a very solid quarter," 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. "Our retail sales grew 23.2% from the same quarter a year ago, gross profit was up 15.6%, and earnings 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 rose to $0.15 per share." Earnings from continuing operations for the fiscal year were $0.85 per share; net earnings after discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. were $0.73 per share. The 36 stores identified as impaired assets Impaired Asset An asset with a market value that is worth less than its book value. Notes: If the sum of all estimated future cash flows is less than the carrying value of the asset, then the asset would be considered impaired and would have to be written down to its fair in the third quarter were reclassified as discontinued operations that reported a loss of $0.12 per share. "In fiscal 2005," Lamb stated, "we increased combined sales from our three business categories an impressive 21.1% and raised total gross profit 8.7%." Gasoline--The fiscal 2005 goal was to increase same-store gallons sold at least 2% with a margin of at least 10.5 cents. "We strengthened our sales trend, raising same-store gallons sold 2.8% in the third quarter and 5.6% in the fourth to put us close to goal at 1.9% for the year," said Lamb. "For the first time in our history, total gallons sold exceeded 1 billion." The average margin of 10.7 cents was above goal, and gross profit rose 10% to $108.3 million. "Our gross profit improvement demonstrates our effectiveness at managing 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 in a difficult market," Lamb added. "We'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall work to sustain our positive trends in fiscal 2006 by continuing to price competitively, refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar efficiencies, and attracting more customer traffic." Grocery & Other Merchandise--The goal for this category was 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 a margin of at least 32%. Same-store sales improved from a 2.1% increase in the first quarter to a 6.3% gain in the fourth and resulted in a 4.8% increase for the twelve months. Total sales rose 7.2% to $714 million with a margin of 30.9%, and gross profit was up 6.4% to $220.9 million. The margin was affected by a LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack adjustment brought about by wholesale price increases primarily for cigarettes. Lamb said, "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 unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. were up for fiscal 2005, and we'll work to gain more market share in fiscal 2006. We'll continue to benefit from improved product mix and strategic price increases taken in the last half of fiscal 2005. We'll also have 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. rolled out in all our stores by the end of summer." Management expects lottery tickets to become another destination item, increasing store traffic and boosting overall sales as they contribute directly to gross profit. Prepared Food & Fountain--The fiscal 2005 goal was to increase same-store sales 6% with a margin over 60%. Annual same-store sales were up 8.4%--well over goal--and total sales rose 12.5% to $204.8 million. Despite the high cost of cheese during much of the year, the margin was 60.3%. Gross profit rose 11.8% to $123.6 million. "We are pleased with this category's outstanding performance," Lamb said. "Point of sale is giving us the information we need to help each store manager handle inventory and kitchen production effectively. We're we're Contraction of we are. we're we are maintaining tight quality control on our menu items, introducing new products, pricing to specific markets, and controlling stales to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. profit. Fiscal 2006 should be another good year for 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, ." Point of Sale (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale )--The goal was to have over 900 stores with full POS by the 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. . "Part of our success at increasing gross profit was due to our use of POS technology," said Lamb. By April 30, Casey's had 1,011 stores operating with POS and had installed 781 hand-held hand-held also hand·held adj. Compact enough to be used or operated while being held in the hand or hands: a hand-held video camera. Adj. 1. scanners to help store managers control direct-to-store deliveries. In fiscal 2006, management will use new data mining software to tailor A tailor is a person whose occupation is to sew menswear style jackets and the skirts or trousers that go with them. Although the term dates to the thirteenth century, tailor marketing and inventory to individual stores. Operating Expenses--Lamb stated, "Our annual goal was 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 no more than the percentage increase in inside sales. Despite a substantial increase in bank charges from customers using credit cards to pay for increasingly expensive gasoline, we were able to achieve this goal." Inside sales were up 8.4% to $918.8 million while operating expenses grew 7.6% to $329.3 million. "When I share our corporate goals for fiscal 2006," Lamb added, "investors will notice we'll be measuring operating expenses against gross profit to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. more closely with our corporate focus on profitable growth." Expansion--Adding more stores primarily through acquisitions is an ongoing growth strategy at Casey's. The fiscal 2005 goal was to acquire at least 43 stores and build 15 new stores. At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , the Company had built and opened 13 stores, had acquired 29 stores, and was in negotiation for the purchase of a regional chain. On May 19, 2005, Casey's announced the signing of a letter of intent to acquire up to 58 stores--54 in Nebraska Nebraska (nəbrăs`kə), Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N). , 3 in Kansas Kansas, state, United States Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). , and 1 in Iowa--from Gas 'N Shop, Inc. (GNS GNS GEOnet Names Server (NIMA) GNS Global Network Services (INMARSAT) GNS Guinea Franc GNS Get Nearest Server (component of IPX and SAP) GNS Global Navigation System ) of Lincoln, Nebraska The City of Lincoln is the capital and the second most populous city of the U.S. state of Nebraska. Lincoln is also the county seat of Lancaster County and the home of the University of Nebraska. . Lamb stated, "We expect to close the transaction in the second quarter and to have the sites contribute to earnings in their first year as Casey's General Stores. Our operating efficiencies and our proprietary prepared food program should enhance profitability." Part of the Company plan for accommodating anticipated acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. in acquisition activity is expanding the distribution center by adding nearly 100,000 square feet of warehouse space and 20,000 square feet of office space. The expansion will provide capacity to serve at least 1,000 more stores. The Company broke ground in May and expects to complete construction in twelve months. Fiscal 2006 Goals--Lamb concluded, "Coming off a solid fourth quarter situates us well for a strong fiscal 2006." These are Casey's corporate goals for the coming year: --Increase same-store gasoline gallons sold 2% with an average margin of 10.5 cents per gallon gallon: see English units of measurement. . --Increase same-store 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 sales 3% with an average margin of 31.5%. --Increase same-store prepared food & fountain sales 5.5% with an average margin of 60.5%. --Hold the percentage increase in operating expenses to less than the percentage increase in gross profit. --Acquire 30 stores (in addition to the GNS acquisition) and build 10 new stores. Dividend--At its June June: see month. meeting, the Board of Directors increased the Company's quarterly dividend to $0.045 per share. The dividend is payable on August 15, 2005 to shareholders of record on August 1, 2005.
Casey's General Stores, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share amounts)
Three months
ended April 30, Year ended April 30,
2005 2004 2005 2004
-------- -------- ---------- ----------
Net sales $727,932 $593,014 $2,809,420 $2,328,940
Franchise revenue 203 309 1,065 1,669
-------- -------- ---------- ----------
Total revenue 728,135 593,323 2,810,485 2,330,609
-------- -------- ---------- ----------
Cost of goods sold 616,397 496,563 2,352,580 1,908,807
Operating expenses 83,558 79,475 329,296 306,052
Depreciation and
amortization 14,138 12,279 52,123 48,357
Interest, net 2,556 3,108 10,739 12,398
-------- -------- ---------- ----------
716,649 591,425 2,744,738 2,275,614
-------- -------- ---------- ----------
Earnings from continuing
operations before income
taxes 11,486 1,898 65,747 54,995
Federal and state income
taxes 3,902 676 23,215 17,098
-------- -------- ---------- ----------
Net earnings from continuing
operations 7,584 1,222 42,532 37,897
Loss on discontinued
operations, net of tax
benefit 241 384 5,779 1,431
-------- -------- ---------- ----------
Net earnings $ 7,343 $ 838 $ 36,753 $ 36,466
======== ======== ========== ==========
Basic
Earnings from continuing
operations $ .15 $ .02 $ .85 $ .76
Loss on discontinued
operations .00 .01 .12 .03
-------- -------- ---------- ----------
Net earnings $ .15 $ .02 $ .73 $ .73
======== ======== ========== ==========
Diluted
Earnings from continuing
operations $ .15 $ .02 $ .85 $ .76
Loss on discontinued
operations .00 .01 .11 .03
-------- -------- ---------- ----------
Net earnings $ .15 $ .02 $ .73 $ .73
======== ======== ========== ==========
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
April 30, April 30,
2005 2004
---------- ----------
Assets
Current assets
Cash and cash equivalents $ 49,051 $ 45,887
Receivables 7,481 5,751
Inventories 75,392 77,895
Prepaid expenses 4,579 6,392
Income taxes receivable 5,927 10,882
---------- ----------
Total current assets 142,430 146,807
----------------------------------------------------------------------
Other assets, net of amortization 5,567 1,154
Property and equipment, at cost
Land 196,840 180,040
Buildings and leasehold improvements 429,056 409,320
Machinery and equipment 537,026 498,152
Leasehold interest in property and equipment 7,187 9,082
---------- ----------
1,170,109 1,096,594
Less accumulated depreciation and
amortization 447,197 409,969
---------- ----------
Net property and equipment 722,912 686,625
---------- ----------
Total assets $ 870,909 $ 834,586
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt $ 27,636 $ 28,345
Accounts payable 100,640 83,388
Accrued expenses
Property taxes 10,483 8,591
Other 31,368 25,516
---------- ----------
Total current liabilities 170,127 145,840
----------------------------------------------------------------------
Long-term debt, net of current maturities 123,064 144,158
Deferred income taxes 102,039 99,159
Deferred compensation 6,542 5,635
---------- ----------
Total liabilities 401,772 394,792
Shareholders' equity
Preferred stock, no par value, none issued --- ---
Common stock, no par value, 50,189,812 and
50,015,862 shares issued and outstanding at
April 30, 2005 and 2004, respectively 46,516 44,155
Retained earnings 422,621 395,639
---------- ----------
Total shareholders' equity 469,137 439,794
---------- ----------
Total liabilities and shareholders' equity $ 870,909 $ 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
(Amounts in thousands)
Grocery & Prepared
Year ended Other Food &
4/30/05 Gasoline Merchandise Fountain Other Total
Sales $1,870,791 $714,012 $204,795 $19,822 $2,809,420
Gross profit $108,317 $220,922 $123,578 $4,023 $456,840
Margin 5.8% 30.9% 60.3% 20.3% 16.3%
Gasoline gallons 1,016,942
Year ended
4/30/04
Sales $1,455,973 $665,851 $181,997 $25,119 $2,328,940
Gross profit $98,464 $207,684 $110,515 $3,470 $420,133
Margin 6.8% 31.2% 60.7% 13.8% 18.0%
Gasoline gallons 974,535
----------------------------------------------------------------------
Gasoline Gallons
Same-store Sales Growth
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
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
-- -- -- -- ----
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
-- -- -- -- ----
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
-- -- -- -- ----
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
-- -- -- -- ----
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
-- -- -- -- ----
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 June 14, 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion