Casey's Strengthens Market Presence in First 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 results for the first quarter of fiscal 2007 ended July July: see month. 31, 2006, emphasizing its growing customer base. "Though a challenging 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 environment resulted in earnings per share 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 of $0.34 versus a record $0.44 for the previous first quarter, our same-store customer count grew and total sales were up in all three of our business categories," said President 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. Robert J. Myers Robert J. Myers is the Executive Director of the Association for Business Communication. He has held this position since 1994. The Association for Business Communication (ABC) is the primary academic organization for the field of business communication scholarship, research, . "Our recent agreement to acquire up to 33 HandiMart stores will raise our earnings potential over time." Gasoline--The Company's fiscal 2007 goal is to increase same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon gallon: see English units of measurement. . Same-store gallons sold were down 2.9% compared with a 7.7% increase for the same quarter a year ago. The average margin was 9.8 cents per gallon versus 11.8 cents. Total gallons sold rose to 291.8 million from 286.5 million; gross profit was $28.5 million compared with $33.9 million. "We were up against difficult quarter-to-quarter comparisons, and high retail prices affected customer demand," said Myers Myers can refer to: People
Contraction of we will. we'll we will or we shall we'll will ~shall continue to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. market pressures by pricing
with the local competition and taking advantage of purchasing and
delivery efficiencies."Prepared Food & Fountain--The annual goal is 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. 7.9% with an average margin of 63.4%. Same-store sales were up 9.5% following a 7.2% increase for the previous first quarter. The average margin was 62.9%. Total sales rose 14.5% to $65.8 million, and gross profit improved 12.5% to $41.4 million. Myers stated, "In the first quarter, we benefited especially from our expanded 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, program, but it did affect the category's average margin. The $4.6 million gross profit increase is a sure sign we matched customer preferences and gained from it." Grocery & Other Merchandise--The goal is to increase same-store sales 3.9% with an average margin of 32.2%. Same-store sales were up 2.3% versus a 7.4% increase for the first three months of fiscal 2006, and the average margin was up 10 basis points to 32.2%. Total sales rose 6.7% to $226.1 million; gross profit grew 6.8% to $72.9 million. "Inside our stores," said Myers, "we are using POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale data and making operational decisions to drive gross profit dollars." Total inside gross profit, including commissions, rose nearly 10%. Operating Expenses--An ongoing corporate 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 less than the percentage increase in gross profit. In the first quarter, operating expenses rose 12.7% as gross profit increased 3.9%. "The gasoline market was a challenge for the entire convenience store industry," Myers said. "For us, higher retail prices constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. gallons sold and raised bank charges related to credit card use 46.9% while record wholesale prices dampened the margin." Expansion--The goal is to acquire 50 stores and build 10 new stores. Myers said, "We got a jump-start jump-start tr.v. jump-start·ed, jump-start·ing, jump-starts 1. To start (the engine of a motor vehicle) by using a booster cable connected to the battery of another vehicle or by engaging the drive train while the vehicle on the goal by signing a definitive agreement to purchase from Nordstrom Nordstrom, Inc. (NYSE: JWN) is an upscale department store chain in the United States which was initially a shoe retailer, the company today also sells clothing, accessories, handbags, jewelry, cosmetics, fragrance, and home furnishings. Oil Company up to 33 convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. operating in Iowa under the HandiMart name." The transaction should close in the second quarter. The Company is in the process of obtaining $100 million of debt to help fund this transaction, to finance additional expansion, and to use for general corporate purposes. As of July 31, Casey's had acquired 6 other stores and completed 3 new constructions. Board Actions--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 $0.05 per share, payable November November: see month. 15, 2006 to shareholders of record on November 1, 2006. Board members formally joined management in inviting all shareholders and prospective investors to attend the Company's upcoming annual meeting. The meeting will convene CONVENE, civil law. This is a technical term, signifying to bring an action. at 9:00 a.m. on September September: see month. 15, 2006 at Casey's corporate headquarters in Ankeny, Iowa.
Casey's General Stores, Inc.
Consolidated Statements of Earnings
(Dollars in thousands, except per share amounts)
Three months ended July 31,
2006 2005
------------- -------------
Net sales $1,100,355 $857,517
Franchise revenue 189 185
------------- -------------
Total revenue 1,100,544 857,702
------------- -------------
Cost of goods sold 954,703 717,340
Operating expenses 100,811 89,463
Depreciation and amortization 15,525 13,707
Interest, net 2,395 2,242
------------- -------------
1,073,434 822,752
------------- -------------
Earnings from continuing operations before
income taxes and cumulative effect of
accounting change 27,110 34,950
Federal and state income taxes 10,148 12,860
------------- -------------
Earnings from continuing operations before
cumulative effect of accounting change 16,962 22,090
Loss on discontinued operations, net of
tax benefit of $39 and $72 61 115
Cumulative effect of accounting change,
net of tax benefit of $692 ----- 1,083
------------- -------------
Net earnings $16,901 $20,892
============= =============
Basic
Earnings from continuing operations $.34 $.44
Loss on discontinued operations,
net of tax benefit ----- -----
Cumulative effect of accounting change ----- (.02)
------------- -------------
Net earnings per common share $.34 $.42
============= =============
Diluted
Earnings from continuing operations $.33 $.43
Loss on discontinued operations,
net of tax benefit ----- -----
Cumulative effect of accounting change ----- (.02)
------------- -------------
Net earnings per common share $.33 $.41
============= =============
Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
July 31, April 30,
2006 2006
------------- -------------
Assets
Current assets
Cash and cash equivalents $60,003 $75,369
Receivables 10,045 9,672
Inventories 106,779 96,255
Prepaid expenses 6,448 7,063
Income taxes receivable ----- 3,047
------------- -------------
Total current assets 183,275 191,406
----------------------------------------------------------------------
Other assets, net of amortization 8,157 6,894
Goodwill 14,414 14,414
Property and equipment, net of accumulated
depreciation
July 31, 2006, $502,947
April 30, 2006, $490,288 781,950 774,825
------------- -------------
Total assets $987,796 $987,539
======================================================================
Liabilities and Shareholders' Equity
Current liabilities
Note Payable $8,900 $-----
Current maturities of long-term debt 48,511 51,628
Accounts payable 129,543 146,121
Accrued expenses 45,357 45,947
Income taxes payable 7,270 -----
------------- -------------
Total current liabilities 239,581 243,696
----------------------------------------------------------------------
Long-term debt, net of current
maturities 94,617 106,512
Deferred income taxes 99,235 99,929
Deferred compensation 7,520 7,236
Other long-term liabilities 8,172 6,976
------------- -------------
Total liabilities 449,125 464,349
------------- -------------
Total shareholders' equity 538,671 523,190
------------- -------------
Total liabilities and shareholders' equity $987,796 $987,539
======================================================================
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)
Three
months Grocery Prepared
ended & Other Food &
7/31/06 Gasoline Merchandise Fountain Other Total
Sales $802,875 $226,083 $65,781 $5,616 $1,100,355
Gross
profit $28,547 $72,870 $41,365 $2,870 $145,652
Margin 3.6% 32.2% 62.9% 51.1% 13.2%
Gasoline
gallons 291,836
Three
months
ended
7/31/05
Sales $584,502 $211,884 $57,475 $3,656 $857,517
Gross
profit $33,867 $68,040 $36,774 $1,496 $140,177
Margin 5.8% 32.1% 64.0% 41.0% 16.3%
Gasoline
gallons 286,476
----------------------------------------------------------------------
--------------------------------- ------------------------------------
Gasoline Gallons Gasoline Margin
Same-store Sales Growth (Cents per gallon)
Fiscal Fiscal
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
----- ---- ---- ---- ------ ----- ----- ----- ----- ------
F2007 -2.9% F2007 9.8
F2006 7.7 4.3% 4.2% 0.5% 4.4% F2006 11.8 14.1 9.2 10.6 11.5
F2005 -1.3 1.0 2.8 5.6 1.9 F2005 12.0 9.8 10.4 11.0 10.8
--------------------------------- ------------------------------------
--------------------------------- ------------------------------------
Grocery & Other Merchandise Grocery & Other Merchandise
Same-store Sales Growth Margin
Fiscal Fiscal
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
----- ---- ---- ---- ------ ----- ----- ----- ----- ------
F2007 2.3% F2007 32.2%
F2006 7.4 4.5% 5.3% 4.2% 5.7% F2006 32.1 33.3% 31.0% 31.3% 31.9%
F2005 2.1 4.8 6.8 6.3 4.8 F2005 31.4 31.0 31.4 30.0 30.9
--------------------------------- ------------------------------------
--------------------------------- ------------------------------------
Prepared Food & Fountain Prepared Food & Fountain
Same-store Sales Growth Margin
Fiscal Fiscal
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
---- ---- ---- ---- ------ ----- ----- ----- ----- ------
F2007 9.5% F2007 62.9%
F2006 7.2 4.5% 9.9% 7.4% 7.4% F2006 64.0 64.6% 62.5% 60.9% 63.0%
F2005 6.1 9.0 9.0 9.8 8.4 F2005 58.8 60.8 60.9 61.0 60.4
--------------------------------- ------------------------------------
Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during a conference call on September 6, 2006. 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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