Casey's Second Quarter Earnings Exceed Expectations.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 second quarter ended October October: see month. 31, 2003 and for the fiscal year to date. For the quarter, 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 exceeded analysts' expectations at $0.32, up from $0.27 for the second quarter a year ago. Quarterly net income rose 17.3% to $15.8 million. 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 $0.59 from $0.52, and net income was up 15.5% to $29.6 million. "We've we've Contraction of we have. we've have now completed two solid quarters," 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, "and credit for our success goes largely to our focus. All of us at Casey's, including our store managers, concentrated on improving gross profit at the pumps and inside our stores." Total gross profit was up 6.9% to $117.3 million for the second quarter and up 6.8% to $231.1 million year to date. 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. increased only 5.3% year to date. Management continued to fine-tune mechanisms for balancing 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 and average margin per gallon gallon: see English units of measurement. to improve gross profit. At the six-month mark, gallons sold were up 7.6% to 511.2 million. The average margin per gallon was 10.8 cents, near the Company's historical average and similar to the 10.6 cents year to date October 31, 2002. Gasoline gross profit rose 10.1% to $55.2 million from $50.2 million. Lamb highlighted a benefit of implementing the 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 initiative: "Having pay at the pump at more than 1,100 stores contributes to volume, but it also increases costs related to credit card sales. Beginning in the third quarter, our satellite communication capability will offer the opportunity for significant savings in credit card transaction fees." The capability was operational in 1,000 stores as of November November: see month. 30, 2003. At 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. , total inside sales were up 3.9% to $458.9 million and the gross margin was up 60 basis points to 38.1%. The gross profit was up 5.5% to $174.7 million. Inside sales are comprised of 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, . For the year to date, grocery & other merchandise sales were up 2.9% to $364.1 million with an average margin of 31.9%, down 0.1%, and a gross profit of $116.1 million, up 2.6%. "Tobacco was our largest merchandise category," 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 sales overall were down even though the number of packs sold was up slightly. The average price per pack was down due to manufacturer promotions and a consumer shift to lower-cost brands. The result was a downward pressure on the tobacco margin. Positive trends in sales and margins for groceries gro·cer·y n. pl. gro·cer·ies 1. A store selling foodstuffs and various household supplies. 2. groceries Commodities sold by a grocer. and beer were compensating factors." Prepared food & fountain sales were up 7.9% to $94.8 million for the year to date. The average margin was up to 61.8% from 59.6%, and gross profit grew a strong 12% to $58.6 million. "When we began fiscal 2004, we didn't did·n't Contraction of did not. didn't did not didn't do expect to keep pace with the previous year's 59.4% margin. New products are being so well received that we now believe we can sustain a margin in the low 60s," Lamb stated. Management is raising 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 build customer appeal and manage margins. Lamb reported, "The more items we scan, the more useful data we have for wise decision making. At November 30, 2003--a month into our third quarter--we were scanning scanning /scan·ning/ (skan´ing) 1. the act of examining by passing over an area or organ with a sensing device. 2. scanning speech. multiple items in 1,147 stores. Of that number, 304 had full POS." The Company is installing POS at an average rate of 8 per week. "Getting the most out of every store we own is a guiding principle at Casey's," Lamb stated, "and so is taking advantage of expansion opportunities." From April 30, 2003 to the date of this release, Casey's has built 10 stores, acquired 3 competitor stores, and purchased 4 franchise stores. The Company has reached agreement to acquire 13 more stores this fiscal year. At its December December: see month. 2, 2003 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 February February: see month. 16, 2004 to shareholders of record on February 2, 2004. The Board also approved two officer promotions: William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Walljasper to Vice President--Finance and Julie JULIE Joint Utility Locating Information for Excavators JULIE Jena University Language and Information Engineering (Germany) Jackowski to Vice President--Human Resources.
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,
2003 2002 2003 2002
--------- --------- ---------- ----------
Net sales $ 610,944 $ 548,480 $1,220,315 $1,098,977
Franchise revenue 463 649 966 1,357
--------- --------- ---------- ----------
Total revenue $ 611,407 $ 549,129 $1,221,281 $1,100,334
--------- --------- ---------- ----------
Cost of goods sold $ 493,634 $ 438,731 $ 989,174 $ 882,640
Operating expenses 77,564 74,051 154,714 146,948
Depreciation and
amortization 12,317 11,760 24,482 23,395
Interest, net 3,056 3,179 6,301 6,530
--------- --------- ---------- ----------
$ 586,571 $ 527,721 $1,174,671 $1,059,513
--------- --------- ---------- ----------
Income before income taxes $ 24,836 $ 21,408 $ 46,610 $ 40,821
Federal and state income
taxes 9,066 7,963 17,013 15,185
--------- --------- ---------- ----------
Net income $ 15,770 $ 13,445 $ 29,597 $ 25,636
========= ========= ========== ==========
Basic earnings per share $ .32 $ .27 $ .59 $ .52
Weighted average shares
outstanding 49,833 49,642 49,799 49,634
Diluted earnings per share $ .32 $ .27 $ .59 $ .52
Weighted average shares
outstanding 50,017 49,723 49,966 49,725
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
(unaudited)
October 31, April 30,
2003 2003
----------- -----------
Assets
Current assets
Cash and cash equivalents $ 57,758 $ 40,544
Receivables 5,213 5,742
Inventories 68,283 63,009
Prepaid expenses 5,271 4,590
Income taxes receivable ------- 2,989
----------- -----------
Total current assets $ 136,525 $ 116,874
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Other assets, net of amortization 1,129 808
Property and equipment, net of
accumulated depreciation
October 31, 2003 $389,720
April 30, 2003 $368,123 671,626 657,643
----------- -----------
Total assets $ 809,280 $ 775,325
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt $ 30,194 $ 19,897
Accounts payable 68,591 64,880
Accrued expenses 30,637 32,561
Income taxes payable 1,360 -------
----------- -----------
Total current liabilities $ 130,782 $ 117,338
----------------------------------------------------------------------
Long-term debt, net of current maturities $ 148,521 $ 162,394
Deferred income taxes 92,371 86,871
Deferred compensation 5,078 4,484
----------- -----------
Total liabilities $ 376,752 $ 371,087
----------- -----------
Total shareholders' equity 432,528 404,238
----------- -----------
Total liabilities and shareholders' equity $ 809,280 $ 775,325
======================================================================
Certain statements in this news release, including any discussion of
management expectations for future periods, constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act 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.
----------------------------------------------------------------------
Sales and Gross Profit by Product
(Dollars in thousands)
Six months ended
10/31/03 Grocery & other Prepared food
Gasoline merchandise & fountain Other Total
Sales $747,783 $364,098 $94,830 $13,604 $1,220,315
Gross
profit $ 55,234 $116,060 $58,609 $ 1,238 $ 231,141
Margin 7.4% 31.9% 61.8% 9.1% 18.9%
Gasoline
Gallons 511,156
Six months ended
10/31/02
Sales $635,677 $353,924 $87,857 $21,519 $1,098,977
Gross
profit $ 50,178 $113,145 $52,352 $ 662 $ 216,337
Margin 7.9% 32.0% 59.6% 3.1% 19.7%
Gasoline
Gallons 475,114
----------------------------------------------------------------------
----------------------------------------------------------------------
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% 4.9%
F2003 -5.4 -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
----------------------------------------------------------------------
----------------------------------------------------------------------
Gasoline Margin
(Cents per gallon)
Fiscal
Q1 Q2 Q3 Q4 Year
---- ---- ---- ---- ----
F2004 9.7 cents 11.9 cents 10.8 cents
F2003 9.9 11.3 11.2 11.4 10.9
F2002 9.5 11.3 8.3 10.1 9.8
F2001 13.3 12.1 11.6 7.9 11.3
----------------------------------------------------------------------
----------------------------------------------------------------------
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% 0.1%
F2003 4.2 0.8 -3.1 -1.9 0.6
F2002 8.7 10.6 19.0 9.7 11.7
F2001 5.1 0.3 -6.4 -2.2 -0.6
----------------------------------------------------------------------
----------------------------------------------------------------------
Grocery & Other Merchandise
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
---- ---- ---- ---- ----
F2004 31.5% 32.3% 31.9%
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
----------------------------------------------------------------------
----------------------------------------------------------------------
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% 5.0%
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
----------------------------------------------------------------------
----------------------------------------------------------------------
Prepared Food & Fountain
Margin
Fiscal
Q1 Q2 Q3 Q4 Year
---- ---- ---- ---- ----
F2004 60.8% 62.8% 61.8%
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 December 4, 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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