Casey's Reports Strong First Quarter Earnings.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 a 14% increase in earnings for the first quarter of fiscal 2005 ended July July: see month. 31, 2004. Basic earnings rose to $0.32 per share from $0.28 for the first quarter of fiscal 2004. "The increase was especially encouraging because earnings were measured against a very good quarter in the previous year," 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. "Gross profit was up in all three business categories, and we are pleased with the early progress toward our 6 annual performance goals." Gasoline--The Company's first annual goal is to increase same-store 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 gallons sold at least 2% with an average margin of at least 10.5 cents per gallon gallon: see English units of measurement. . In the first quarter, the Company sold 262.4 million gallons compared with 259.3 million in the same quarter a year ago. On a same-store basis, gallons sold were down 1.4%. "That's understandable," Lamb explained, "given the continuing high retail gasoline prices affecting demand. Our July sales trends were positive, and we're we're Contraction of we are. we're we are hopeful they will continue their upward direction." The average margin per gallon was 11.8 cents, up from 9.8 cents for the previous first quarter and well above the fiscal 2005 goal. Gasoline gross profit improved to $31 million from $25.5 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)--Casey's second goal is to increase same-store G&OM sales 2.9% with an average margin over 32%. Total first-quarter sales were up 4.4% to $196.1 million; 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. increased 1.9%. The average margin was 31.3%. Gross profit rose to $61.3 million from $59.2 million. "The gains we're making are promising," Lamb said, "and we believe 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 will continue to help us improve product selection and space allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as . Thanks in part to the store reset completed at the end of the quarter, all items in this category met our expectations. We have evidence our strategies for managing cigarettes are working. Same-store 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 sales comparisons were positive for July, the first time since September September: see month. of 2002." 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 next goal is to increase PF&F same-store sales 6% with an average margin over 60%. Total PF&F sales were up 10% to $52.2 million for the quarter, and same-store sales were up 5.8%, nearly at goal. The average margin was 58.7%. Despite high cheese prices, gross profit was up a substantial 6.3% to $30.6 million. Management credited strategic pricing, popular new products, and expanded use of point-of-sale data for the gross profit improvement. "This category is performing exceptionally well," said Lamb. "We will continue to monitor wholesale cheese prices and look for advantageous buying opportunities." Point of Sale (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale )--The fourth goal is to have over 900 stores with full POS 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. . Lamb stated, "We're definitely def·i·nite adj. 1. Having distinct limits: definite restrictions on the sale of alcohol. 2. Indisputable; certain: a definite victory. 3. on pace to achieve this goal--we had 603 stores operating with full POS at July 31--but we've we've Contraction of we have. we've have always known installations are only the beginning. Our real task is deriving de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. full value from the data the system generates. We are currently testing a data warehouse and business intelligence product to assist us further in using the data more effectively." Starting in October October: see month. , the Company will accelerate the rollout of POS to 12 per week. Operating Expenses--The fifth 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 no more than the percentage increase in inside sales. For the quarter, total inside sales were up 5.5% to $248.3 million. Operating expenses were up 8% to $83.3 million due to a 27% increase in bank charges for customers using credit cards to purchase more expensive gasoline. The average retail price of gas was $1.83 this quarter versus $1.42 for the first quarter a year ago. "This goal represents our ongoing attention to return on investment at the operational level," said Lamb. "The quarter's total gross profit grew in line with operating expenses, increasing 8% to $123.2 million." Expansion--The final goal is to acquire at least 43 stores and build 15 new stores to achieve 3.5% total store growth. Adding more stores primarily through acquisitions is a Company priority. In the first quarter, Casey's built 1 new store, completed 3 acquisitions, and signed written agreements for 2 more. 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. , "Currently we have preliminary agreements for an additional 13 stores and are in various stages of negotiation on numerous others. There are ample opportunities for acquisitions, and our thorough 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. will ensure we continue to purchase only those that bring us attractive returns." 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 $0.04, payable November November: see month. 15, 2004 to shareholders of record on November 1, 2004. Board members join the management team in inviting all shareholders and prospective investors to attend Casey's annual meeting at 9:00 a.m., September 17, 2004 at its 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,
2004 2003
------------ ------------
Net sales $ 733,859 $ 609,371
Franchise revenue 328 503
------------ ------------
Total revenue $ 734,187 $ 609,874
------------ ------------
Cost of goods sold $ 610,652 $ 495,240
Operating expenses 83,317 77,150
Depreciation and amortization 12,669 12,165
Interest, net 2,799 3,245
------------ ------------
$ 709,437 $ 587,800
------------ ------------
Income before income taxes $ 24,750 $ 22,074
Federal and state income taxes 8,811 8,057
------------ ------------
Net income $ 15,939 $ 14,017
============ ============
Basic earnings per share $ .32 $ .28
Weighted average shares outstanding 50,037 49,741
Diluted earnings per share $ .32 $ .28
Weighted average shares outstanding 50,236 49,903
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
(unaudited)
July 31, April 30,
2004 2004
----------- -----------
Assets
Current assets
Cash and cash equivalents $ 59,508 $ 45,887
Receivables 6,186 5,751
Inventories 78,155 77,895
Prepaid expenses 7,067 6,392
Income taxes receivable 5,393 10,882
----------- -----------
Total current assets $ 156,309 $ 146,807
----------------------------------------------------------------------
Other assets, net of amortization 1,173 1,154
Property and equipment, net of accumulated
depreciation
July 31, 2004 $421,042
April 30, 2004 $409,969 689,721 686,625
----------- -----------
Total assets $ 847,203 $ 834,586
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt $ 31,721 28,345
Accounts payable 91,128 83,388
Accrued expenses 36,439 34,107
----------- -----------
Total current liabilities $ 159,288 $ 145,840
----------------------------------------------------------------------
Long-term debt, net of current maturities $ 127,692 $ 144,158
Deferred income taxes 102,159 99,159
Deferred compensation 5,741 5,635
----------- -----------
Total liabilities $ 394,880 $ 394,792
----------- -----------
Total shareholders' equity 452,323 439,794
----------- -----------
Total liabilities and shareholders' equity $ 847,203 $ 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)
Grocery & Prepared
Three months ended other food &
7/31/04 Gasoline merchandise fountain Other Total
Sales $480,464 $196,142 $52,188 $5,065 $733,859
Gross profit $ 31,037 $ 61,313 $30,641 $ 216 $123,207
Margin 6.5% 31.3% 58.7% 4.3% 16.8%
Gasoline Gallons 262,388
Three months ended
7/31/03
Sales $367,010 $187,911 $47,431 $7,019 $609,371
Gross profit $ 25,531 $ 59,214 $28,835 $ 551 $114,131
Margin 7.0% 31.5% 60.8% 7.9% 18.7%
Gasoline Gallons 259,269
----------------------------------------------------------------------
Gasoline Gallons
Same-store Sales Growth
(Stores open for at least one full year)
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
F2005 -1.4%
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
F2004 9.8 11.9 9.1 9.5 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%
F2004 0.6 -0.5% -1.2% 2.8% 0.4%
F2003 4.2 0.8 -3.1 -1.9 0.2
F2002 8.7 10.6 19.0 9.7 11.7
----------------------------------------------------------------------
Grocery & Other Merchandise
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
-- -- -- -- ----
F2005 31.3%
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%
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%
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
----------------------------------------------------------------------
Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on September 2, 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. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion