Casey's Reports Third Quarter Results.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 reported earnings for the third quarter ended January January: see month. 31, 2003 and for the fiscal year to date. Quarterly diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.12, down from $0.16 a year ago. Quarterly pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. decreased to $4.7 million from $12.6 million, and net income dropped to $5.8 million from $7.9 million. Included in the $5.8 million was $2.9 million, or $0.057 per share, related to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. tax benefits and a change in the fiscal 2004 effective tax rate. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. diluted earnings per share rose to $0.71 from $0.69, and net income was up to $35.4 million from $34.3 million. In the third quarter of fiscal 2004, the Company changed to FIFO (First In First Out) A storage method that retrieves the item stored for the longest time. Contrast with LIFO. See traffic engineering methods. FIFO - first-in first-out from 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 for valuing 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 inventory. The historical financials presented were adjusted in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to reflect FIFO valuation, and prior-year third quarter earnings per share were adjusted to $0.16 from $0.14. Total gross profit was down 3.3% to $95.7 million for the quarter and up 3.4% to $327.1 million year to date. 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 said, "It is our intent that total gross profit growth should outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, that of 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. . Year-to-date operating expenses were up an acceptable 5.5%. The problem with gross profit came from a combination of third quarter gas and cigarette margins." It is a Company goal to 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 gallon: see English units of measurement. . For the third quarter, gallons sold were up 3.7% to 240.6 million, average margin per gallon declined 2.8 cents to 9.1 cents, and gasoline gross profit was down to $21.8 million from $27.5 million. "Fine-tuning could not overcome rising gasoline costs and adverse winter weather," Lamb explained. "We expect demand to increase in the coming months." For the year to date, gallons sold were up 6.3% to 751.8 million, average margin per gallon was slightly below the historical average at 10.3 cents, and gasoline gross profit was down 1.9% to $77.3 million. The Company's grocery & other merchandise category had a third quarter sales increase of 1.9% to $153 million. The quarterly average margin was up 20 basis points to 30.8%, and gross profit was up 2.8% to $47.2 million. Results were affected by disappointing cigarette sales and tobacco margins due to changes in manufacturers' wholesale programs and retail display allowances as well as a continued consumer shift to lower-price brands. Lamb elaborated: "Excluding cigarettes, third quarter sales were up nearly 8% and the average margin improved 140 basis points, so the impact was considerable. We have responded by renegotiating contracts and adding more discount brands. We expect improvement over the next few quarters." For the year to date, grocery & other merchandise sales were up 2.6% to $517.1 million with an average margin that held steady at 31.6%. The category's gross profit was up 2.6% to $163.2 million. Management noted upward trends in sales and margins for seasonal and specialty merchandise and new age drinks. 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, sales were up 7.9% to $43.9 million for the third quarter and also up 7.9% to $138.7 million for the year to date. The average margin was 60.3% for the quarter and 61.3% for the year to date. Third quarter gross profit was up 8.2% to $26.5 million, and year-to-date gross profit was up 10.7% to $85.1 million. "The numbers reflect the popularity of our new products," Lamb stated, "and we're we're Contraction of we are. we're we are confident of continued growth. We believe we will sustain a margin in the low 60s for the fiscal year." Third quarter inside sales came to $196.8 million, up 3.2%. For the year to date, inside sales were up 3.7% to $655.7 million and the gross margin was up 60 basis points to 37.9%. "One of our goals," said Lamb, "is to raise the gross profit on inside sales by using 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 (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale ) data to improve merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and manage margins. Third quarter inside sales gross profit was up 4.5% to $73.6 million, and the year-to-date increase was 5.3% to $248.3 million." The Company now has 395 stores operating with full POS. "In addition to improving the performance of stores we already own, we're using our excellent financial position to be more aggressive in acquiring stores," Lamb stated. Year to date, Casey's has built 15 new stores, purchased 9 franchise stores, acquired 4 competitor stores, and reached agreements to buy 15 stores in the fourth quarter. At its March 2, 2004 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 regular quarterly dividend of $0.035 per share, payable May 17, 2004 to shareholders of record on May 3, 2004. Upon recommendation of the Nominating Committee A nominating committee is a group formed usually from inside the membership of an organization for the purpose of nominating candidates for office within the organization. It works similarly to an electoral college, the main difference being that the available candidates, either , the Board appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. two new directors. Johnny Danos is President of the Greater Des Moines Des Moines, city, United States Des Moines (dĭ moin`), city (1990 pop. 193,187), state capital and seat of Polk co., S central Iowa, at the junction of the Des Moines and Raccoon rivers; inc. Community Foundation. He was employed by KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen for 31 years, including 12 years as a managing partner, until retiring in 1994. William Kimball William Kimball may refer to:
Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major , Inc., a national franchisor of community retail pharmacies with 200 locations in 36 states. Each will serve until the next Annual Meeting of Shareholders in September September: see month. of 2004.
Casey's General Stores, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share amounts)
Three months Nine months
ended January 31, ended January 31,
2004 2003 2004 2003
-------- -------- ---------- ----------
Net sales $544,951 $511,948 $1,765,266 $1,610,925
Franchise revenue 394 589 1,360 1,946
-------- -------- ---------- ----------
Total revenue $545,345 $512,537 $1,766,626 $1,612,871
-------- -------- ---------- ----------
Cost of goods sold $449,292 $413,020 $1,438,466 $1,294,535
Operating expenses 75,898 71,732 230,612 218,680
Depreciation and
amortization 12,460 11,921 36,942 35,316
Interest, net 2,989 3,270 9,290 9,800
-------- -------- ---------- ----------
$540,639 $499,943 $1,715,310 $1,558,331
-------- -------- ---------- ----------
Income before income taxes $ 4,706 $ 12,594 $ 51,316 $ 54,540
Federal and state income
Taxes (benefit) (1,135) 4,685 15,878 20,289
-------- -------- ---------- ----------
Net income $ 5,841 $ 7,909 $ 35,438 $ 34,251
======== ======== ========== ==========
Basic earnings per share $ .12 $ .16 $ .71 $ .69
Weighted average shares
outstanding 49,925 49,650 49,833 49,640
Diluted earnings per share $ .12 $ .16 $ .71 $ .69
Weighted average shares
outstanding 50,151 49,744 49,995 49,732
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
(unaudited)
January 31, April 30,
2004 2003
---------- ----------
Assets
Current assets
Cash and cash equivalents $ 46,219 $ 40,544
Receivables 5,427 5,742
Inventories 72,976 65,259
Prepaid expenses 4,883 4,590
Income taxes receivable 9,091 2,161
---------- ----------
Total current assets $ 138,596 $ 118,296
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Other assets, net of amortization 1,035 808
Property and equipment, net of
accumulated depreciation
January 31, 2004 $400,003
April 30, 2003 $368,123 676,710 657,643
---------- ----------
Total assets $ 816,341 $ 776,747
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Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt $ 25,889 $ 19,897
Accounts payable 73,535 64,880
Accrued expenses 28,701 32,561
---------- ----------
Total current liabilities $ 128,125 $ 117,338
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Long-term debt, net of
current maturities $ 147,490 $ 162,394
Deferred income taxes 95,121 86,871
Deferred compensation 5,247 4,484
---------- ----------
Total liabilities $ 375,983 $ 371,087
---------- ----------
Total shareholders' equity 440,358 405,660
---------- ----------
Total liabilities and shareholders' equity $ 816,341 $ 776,747
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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 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)
Nine months ended
1/31/04 Grocery & other Prepared food
Gasoline merchandise & fountain Other Total
Sales $1,090,792 $517,052 $138,692 $18,730 $1,765,266
Gross
profit $77,326 $163,230 $85,074 $1,470 $327,100
Margin 7.1% 31.6% 61.3% 7.8% 18.5%
Gasoline
Gallons 751,793
Nine months ended
1/31/03
Sales $946,526 $504,046 $128,492 $31,861 $1,610,925
Gross
profit $78,846 $150,019 $76,869 $1,656 $316,390
Margin 8.3% 31.6% 59.8% 5.2% 19.6 %
Gasoline
Gallons 707,124
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Gasoline Gallons
Same Store Sales Growth
(Stores open for at least one full year)
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ------ ----- ------
F2004 6.4% 3.4% 0.7% 3.6%
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
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Gasoline Margin
(Cents per gallon)
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ----- ----- ------
F2004 9.8 11.9 9.1 10.3
F2003 9.9 11.7 11.9 10.4 11.0
F2002 9.3 10.2 7.5 10.4 9.3
F2001 13.6 12.2 11.9 9.6 11.9
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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
---- ----- ----- ----- ------
F2004 0.6% -0.5% -1.2% -0.3%
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
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Grocery & Other Merchandise
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ----- ----- ------
F2004 31.5% 32.3% 30.8% 31.6%
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
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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
---- ---- ----- ---- ------
F2004 5.8% 4.1% 4.5% 4.8%
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
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Prepared Food & Fountain
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
----- ----- ----- ----- ------
F2004 60.8% 62.8% 60.3% 61.3%
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
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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 March 4, 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. |
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