Casey's Reports Record Annual Earnings and Sets Goals for FY2004.Business Editors ANKENY Ankeny may refer to: People
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 released earnings for the fourth quarter and the fiscal year ended April 30, 2003. Basic earnings per share for the quarter were $0.14; for the year, they rose to 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 of $0.80. Comparable earnings a year ago were $0.09 and $0.64. At its June June: see month. 6, 2003 meeting, the Board of Directors raised the regular quarterly dividend to $0.035 per share from $0.025. The dividend is payable August 15, 2003 to shareholders of record on August 1, 2003. Ronald M. Lamb, Chairman & 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. , gave his perspective on FY2003: "The drive was to improve gross profit and to enact strategic plans to ensure the improvement continues." Gross profit was up 10.2% to $411.6 million for the year while 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. grew just 8.2%. The Company met its annual performance goal of improving 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 gross profit by balancing growth in gallons sold and average margin per gallon gallon: see English units of measurement. . The gross profit for gasoline was up 12.2% to $102 million for the year compared with $91 million for FY2002. The average margin per gallon increased to 10.9 cents from 9.8 cents. The number of gallons sold rose to 934 million from 927.5 million the prior year. One of the Company's technology initiatives was to have pay at the pump at virtually all corporate stores by 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. . At the close of the fourth quarter, 920 stores were operating with pay at the pump. Another annual goal was to increase gross profit on inside sales by raising 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. 4-6% and improving the overall gross margin at least 100 basis points to 36.4%. Gross profit was up 10% to $307 million on total inside sales that were up 4.7% to $825.2 million. The gross margin was 37.2%, well above goal. Same-store inside sales were up 0.4%. Inside sales come from 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 and 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, . The gross profit on grocery & other merchandise sales of $656 million was $206.4 million, up 8.3%, and the gross margin was 31.5% compared with 30.3% a year earlier. The largest gains were from the 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 category. Lamb said, "The combination of improved pricing accuracy and better inventory control translated to the higher margin. We benefited from another technology initiative that enabled us to scan tobacco products in every store with pay at the pump." The prepared food & fountain gross profit on sales of $169.2 million was $100.5 million, an increase of 13.7%. The average margin was 59.4% versus 55.4% for the previous year. The improvement was due to buying forward to lower the wholesale cost of cheese, obtaining other products at decreased costs, making price adjustments, introducing new food items, and reducing stales. The Company had two more technology initiatives: implementing full 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 capability and real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. satellite communication. Both were accelerated in the fourth quarter. At the end of the third quarter, there were 54 stores operating with point of sale and 60 with satellite communication. At year-end, 101 stores had point-of-sale capability and 280 stores had satellite communication. It was a goal to add more corporate stores by focusing on purchase of franchise stores and acquisition of competitor stores rather than construction of new stores. During FY2003, the Company added 32 corporate stores, bringing the total to 1,290. Lamb stressed the expectation of ongoing improvement as he enumerated This term is often used in law as equivalent to mentioned specifically, designated, or expressly named or granted; as in speaking of enumerated governmental powers, items of property, or articles in a tariff schedule. goals for the new fiscal year: -- Execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution the technology initiatives with emphasis on full point of sale. -- Increase gasoline gross profit by fine-tuning In theoretical physics, fine-tuning refers to circumstances when the parameters of a model must be adjusted very precisely in order to agree with observations. Theories requiring fine-tuning are regarded as problematic in the absence of a known mechanism to explain why the mechanisms for balancing gallons sold and average margin per gallon. -- Raise the gross profit on inside sales by using point-of-sale data to build customer appeal and manage margins. -- Continue rewarding store managers for profitable store performance. -- Use Casey's excellent financial position to take advantage of business opportunities. -- Be more aggressive in acquiring stores. "It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have easy to credit the past year's gains to our technology initiatives, but technology is never enough. Our results improved because Casey's management team used these tools along with other corporate resources to enhance customer service, create efficiencies, and make data-driven decisions," said Lamb. "If the current business environment holds, I am confident they'll they'll Contraction of they will. they'll will deliver another year of record earnings in fiscal 2004."
Casey's General Stores, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Three months ended Year Ended
April 30, April 30,
2003 2002 2003 2002
-------- -------- ---------- ----------
Net sales $544,681 $458,515 $2,155,606 $2,032,226
Franchise revenue 505 662 2,451 3,059
-------- -------- ---------- ----------
Total revenue $545,186 $459,177 $2,158,057 $2,035,285
-------- -------- ---------- ----------
Cost of goods sold $446,811 $369,565 $1,743,971 $1,658,511
Operating expenses 72,121 67,713 290,801 268,766
Depreciation and
amortization 11,983 11,506 47,299 44,702
Interest, net 3,230 3,424 13,030 12,756
-------- -------- ---------- ----------
$534,145 $452,208 $2,095,101 $1,984,735
-------- -------- ---------- ----------
Income before income taxes $ 11,041 $ 6,969 $ 62,956 $ 50,550
Federal and state income
taxes 4,108 2,593 23,420 18,805
-------- -------- ---------- ----------
Net income $ 6,933 $ 4,376 $ 39,536 $ 31,745
======== ======== ========== ==========
Basic earnings per share $ .14 $ .09 $ .80 $ .64
Weighted average shares
outstanding 49,657 49,618 49,643 49,553
Diluted earnings per share $ .14 .09 $ .80 $ .64
Weighted average shares
outstanding 49,728 49,764 49,720 49,692
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
April 30, April 30,
2003 2002
----------- -----------
Assets
Current assets
Cash and cash equivalents $ 40,544 $ 18,946
Short-term investments -- 10
Receivables 5,742 5,127
Inventories 63,009 60,498
Prepaid expenses 4,590 3,816
Income taxes receivable 2,989 9,222
----------- -----------
Total current assets $ 116,874 $ 97,619
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Other assets, net of amortization 808 992
Property and equipment, net of
accumulated depreciation
April 30, 2003 $368,123
April 30, 2002 $324,936 657,643 636,644
----------- -----------
Total assets $ 775,325 $ 735,255
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $ -- $ 5,275
Current maturities of long-term debt 19,897 9,648
Accounts payable 64,880 69,912
Accrued expenses 32,561 27,238
----------- -----------
Total current liabilities $ 117,338 $ 112,073
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Long-term debt, net of
current maturities $ 162,394 $ 173,797
Deferred income taxes 86,871 75,786
Deferred compensation 4,484 4,380
----------- -----------
Total liabilities $ 371,087 $ 366,036
----------- -----------
Total shareholders' equity 404,238 369,219
----------- -----------
Total liabilities and shareholders' equity $ 775,325 $ 735,255
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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.
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Sales and Gross Profit by Product
(Dollars in thousands)
Fiscal Year Ended
04/30/03 Grocery &
Other Prepared Food
Gasoline Merchandise & Fountain Other Total
Sales $1,290,094 $655,977 $169,228 $40,307 $2,155,606
Gross
profit $102,030 $206,446 $100,513 $2,646 $411,635
Margin 7.9% 31.5% 59.4% 6.6% 19.1%
Fiscal Year Ended
04/30/02
Sales $1,191,157 $628,586 $159,475 $53,008 $2,032,226
Gross
profit $90,911 $190,592 $88,378 $3,835 $373,716
Margin 7.6% 30.3% 55.4% 7.2% 18.4%
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Gasoline Gallons
Same Store Sales Growth
(Stores open for at least one full year)
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ------ ----- ------
F2003 -5.5% -5.1% -4.4% 4.1% -3.0%
F2002 6.3 11.5 17.7 2.0 9.2
F2001 -1.2 -6.0 -10.7 -4.7 -5.6
F2000 2.0 3.6 4.7 3.7 3.5
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Gasoline Margin
(Cents per gallon)
Fiscal
Q1 Q2 Q3 Q4 Year
---------- ----------- ----------- ----------- -----------
F2003 9.9 cents 11.3 cents 11.2 cents 11.4 cents 10.9 cents
F2002 9.5 11.3 8.3 10.1 9.8
F2001 13.3 12.1 11.6 7.9 11.3
F2000 9.9 10.4 9.0 11.4 10.2
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Grocery & Other Merchandise
Same Store Sales Growth
(Stores open for at least one full year)
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ----- ----- ------
F2003 4.2% 0.8% -3.1% -1.9% 0.2%
F2002 8.7 10.6 19.0 9.7 11.7
F2001 5.1 0.3 -6.4 -2.2 -0.6
F2000 11.0 14.6 16.3 16.8 14.5
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Grocery & Other Merchandise
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ----- ----- ------
F2003 31.0% 33.0% 30.6% 31.2% 31.5%
F2002 32.9 30.6 27.0 30.4 30.3
F2001 32.1 34.3 32.4 30.7 32.4
F2000 32.5 31.8 30.4 29.1 31.0
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Prepared Food & Fountain
Same Store Sales Growth
(Stores open for at least one full year)
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ----- ---- ------
F2003 2.8% 2.0% -2.9% 2.4% 1.1%
F2002 7.0 7.6 15.4 3.5 8.3
F2001 3.0 2.9 2.0 3.7 2.9
F2000 -2.9 -2.4 -1.2 4.1 -0.1
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Prepared Food & Fountain
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ----- ----- ------
F2003 59.1% 60.1% 60.3% 58.0% 59.4%
F2002 54.9 53.9 56.8 56.2 55.4
F2001 57.3 56.9 56.6 54.3 56.3
F2000 57.2 56.9 56.2 56.4 56.7
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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 June 11, 2003. 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. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT 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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