Casey's Announces First Quarter Results
- Diluted EPS up 11% YoY
- Inside same-store sales increased 5.4%
- Total inside gross profit increased 10.3%
- None.
First Quarter Key Highlights
-
Diluted EPS of
$4.52 11% from the same period a year ago. -
Inside same-store sales increased
5.4% compared to prior year, and12.1% on a two-year stack basis, with an inside margin of40.6% . Total inside gross profit increased10.3% to$556.4 million -
Same-store fuel gallons were up
0.4% compared to prior year with a fuel margin of41.6 cents per gallon. Total fuel gross profit decreased3.6% to$297.0 million -
Same-store operating expense excluding credit card fees were up
3.4% , favorably impacted by a3% reduction in same-store labor hours. -
Casey's currently has 125 stores under agreement to acquire, including 63 stores previously announced from EG Group Ltd.
“Our team is off to a great start on our three-year strategic plan, highlighted by an
Earnings
|
Three Months Ended July 31, |
||||
|
2023 |
|
2022 |
||
Net income (in thousands) |
$ |
169,237 |
|
$ |
152,932 |
Diluted earnings per share |
$ |
4.52 |
|
$ |
4.09 |
Adjusted EBITDA (in thousands)1 |
$ |
315,451 |
|
$ |
293,209 |
Net income, diluted EPS, and Adjusted EBITDA (reconciled later in the document), were up compared to the same period a year ago primarily due to higher profitability inside the store partially offset by lower fuel margin and higher operating expenses due to operating 82 additional stores.
| _______________ |
1 EBITDA and Adjusted EBITDA are reconciled later in the document |
Inside
|
Three Months Ended July 31, |
||||||
|
2023 |
|
2022 |
||||
Inside sales (in thousands) |
$ |
1,369,749 |
|
|
$ |
1,266,617 |
|
Inside same-store sales |
|
5.4 |
% |
|
|
6.3 |
% |
Grocery and general merchandise same-store sales |
|
5.2 |
% |
|
|
5.5 |
% |
Prepared food and dispensed beverage same-store sales |
|
5.9 |
% |
|
|
8.4 |
% |
Inside gross profit (in thousands) |
$ |
556,434 |
|
|
$ |
504,260 |
|
Inside margin |
|
40.6 |
% |
|
|
39.8 |
% |
Grocery and general merchandise margin |
|
34.1 |
% |
|
|
33.9 |
% |
Prepared food and dispensed beverage margin |
|
58.2 |
% |
|
|
55.6 |
% |
Total inside sales were up
Fuel2
|
Three Months Ended July 31, |
||||||
|
2023 |
|
2022 |
||||
Fuel gallons sold (in thousands) |
|
713,991 |
|
|
|
689,467 |
|
Same-store gallons sold |
|
0.4 |
% |
|
|
(2.3 |
)% |
Fuel gross profit (in thousands) |
$ |
296,978 |
|
|
$ |
308,188 |
|
Fuel margin (cents per gallon, excluding credit card fees) |
41.6 |
¢ |
|
44.7 |
¢ |
||
Total fuel gallons sold increased
Operating Expenses
|
Three Months Ended July 31, |
||||||
|
2023 |
|
2022 |
||||
Operating expenses (in thousands) |
$ |
560,855 |
|
|
$ |
543,271 |
|
Credit card fees (in thousands) |
$ |
60,985 |
|
|
$ |
67,277 |
|
Same-store operating expense excluding credit card fees |
|
3.4 |
% |
|
|
2.6 |
% |
Operating expenses increased
| _______________ |
2 Fuel category does not include wholesale fuel activity, which is included in Other. |
Expansion
|
Store Count |
|
April 30, 2023 |
2,521 |
|
New store construction |
10 |
|
Acquisitions |
4 |
|
Acquisitions not opened |
(2 |
) |
Prior acquisitions opened |
4 |
|
Closed |
(1 |
) |
July 31, 2023 |
2,536 |
|
Liquidity
At July 31, 2023, the Company had approximately
Share Repurchase
During the first quarter, the Company repurchased shares for approximately
Dividend
At its September meeting, the Board of Directors voted to pay a quarterly dividend of
Fiscal 2024 Outlook
The Company is not updating its outlook for the following metrics. Casey’s currently expects inside same-store sales to increase
Casey’s General Stores, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Dollars in thousands, except share and per share amounts) (Unaudited) |
|||||
|
Three Months Ended July 31, |
||||
|
2023 |
|
2022 |
||
Total revenue |
$ |
3,869,251 |
|
$ |
4,454,644 |
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) |
|
2,991,497 |
|
|
3,618,394 |
Operating expenses |
|
560,855 |
|
|
543,271 |
Depreciation and amortization |
|
82,905 |
|
|
76,295 |
Interest, net |
|
12,495 |
|
|
13,816 |
Income before income taxes |
|
221,499 |
|
|
202,868 |
Federal and state income taxes |
|
52,262 |
|
|
49,936 |
Net income |
$ |
169,237 |
|
$ |
152,932 |
Net income per common share |
|
|
|
||
Basic |
$ |
4.54 |
|
$ |
4.11 |
Diluted |
$ |
4.52 |
|
$ |
4.09 |
Basic weighted average shares |
|
37,300,952 |
|
|
37,222,943 |
Plus effect of stock compensation |
|
155,187 |
|
|
186,762 |
Diluted weighted average shares |
|
37,456,139 |
|
|
37,409,705 |
Casey’s General Stores, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in thousands) (Unaudited) |
|||||
|
July 31, 2023 |
|
April 30, 2023 |
||
Assets |
|
|
|
||
Current assets |
|
|
|
||
Cash and cash equivalents |
$ |
439,112 |
|
$ |
378,869 |
Receivables |
|
133,726 |
|
|
120,547 |
Inventories |
|
424,728 |
|
|
376,085 |
Prepaid expenses |
|
24,625 |
|
|
22,107 |
Income taxes receivable |
|
— |
|
|
23,347 |
Total current assets |
|
1,022,191 |
|
|
920,955 |
Other assets, net of amortization |
|
191,900 |
|
|
192,153 |
Goodwill |
|
618,477 |
|
|
615,342 |
Property and equipment, net of accumulated depreciation of |
|
4,229,784 |
|
|
4,214,820 |
Total assets |
$ |
6,062,352 |
|
$ |
5,943,270 |
Liabilities and Shareholders’ Equity |
|
|
|
||
Current liabilities |
|
|
|
||
Current maturities of long-term debt and finance lease obligations |
$ |
53,640 |
|
$ |
52,861 |
Accounts payable |
|
570,485 |
|
|
560,546 |
Accrued expenses |
|
294,873 |
|
|
313,718 |
Income taxes payable |
|
15,001 |
|
|
— |
Total current liabilities |
|
933,999 |
|
|
927,125 |
Long-term debt and finance lease obligations, net of current maturities |
|
1,598,524 |
|
|
1,620,513 |
Deferred income taxes |
|
559,493 |
|
|
543,598 |
Insurance accruals, net of current portion |
|
32,070 |
|
|
32,312 |
Other long-term liabilities |
|
161,971 |
|
|
159,056 |
Total liabilities |
|
3,286,057 |
|
|
3,282,604 |
Total shareholders’ equity |
|
2,776,295 |
|
|
2,660,666 |
Total liabilities and shareholders’ equity |
$ |
6,062,352 |
|
$ |
5,943,270 |
Casey’s General Stores, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited) |
|||||||
|
Three months ended July 31, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
169,237 |
|
|
$ |
152,932 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
82,905 |
|
|
|
76,295 |
|
Amortization of debt issuance costs |
|
278 |
|
|
|
345 |
|
Share-based compensation |
|
10,468 |
|
|
|
16,185 |
|
(Gain) loss on disposal of assets and impairment charges |
|
(1,448 |
) |
|
|
230 |
|
Deferred income taxes |
|
15,895 |
|
|
|
24,727 |
|
Changes in assets and liabilities: |
|
|
|
||||
Receivables |
|
(13,179 |
) |
|
|
(37,859 |
) |
Inventories |
|
(48,256 |
) |
|
|
(2,899 |
) |
Prepaid expenses |
|
(2,518 |
) |
|
|
(6,504 |
) |
Accounts payable |
|
(4,344 |
) |
|
|
34,799 |
|
Accrued expenses |
|
(20,150 |
) |
|
|
(7,865 |
) |
Income taxes |
|
39,139 |
|
|
|
23,953 |
|
Other, net |
|
1,104 |
|
|
|
1,867 |
|
Net cash provided by operating activities |
|
229,131 |
|
|
|
276,206 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(68,903 |
) |
|
|
(82,070 |
) |
Payments for acquisition of businesses, net of cash acquired |
|
(13,297 |
) |
|
|
(1,065 |
) |
Proceeds from sales of assets |
|
5,784 |
|
|
|
5,019 |
|
Net cash used in investing activities |
|
(76,416 |
) |
|
|
(78,116 |
) |
Cash flows from financing activities: |
|
|
|
||||
Payments of long-term debt |
|
(29,665 |
) |
|
|
(15,998 |
) |
Payments of cash dividends |
|
(14,945 |
) |
|
|
(13,128 |
) |
Repurchase of common stock |
|
(29,893 |
) |
|
|
— |
|
Tax withholdings on employee share-based awards |
|
(17,969 |
) |
|
|
(15,478 |
) |
Net cash used in financing activities |
|
(92,472 |
) |
|
|
(44,604 |
) |
Net increase in cash and cash equivalents |
|
60,243 |
|
|
153,486 |
||
Cash and cash equivalents at beginning of the period |
|
378,869 |
|
|
|
158,878 |
|
Cash and cash equivalents at end of the period |
$ |
439,112 |
|
|
$ |
312,364 |
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION |
|||||||
|
Three months ended July 31, |
||||||
|
2023 |
|
2022 |
||||
Cash paid during the period for: |
|
|
|
||||
Interest, net of amount capitalized |
$ |
10,701 |
|
$ |
8,689 |
||
Income taxes, net |
|
— |
|
|
|
— |
|
Noncash investing and financing activities: |
|
|
|
||||
Purchased property and equipment in accounts payable |
|
42,188 |
|
|
|
42,008 |
|
Right-of-use assets obtained in exchange for new finance lease liabilities |
|
8,345 |
|
|
|
736 |
|
Right-of-use assets obtained in exchange for new operating lease liabilities |
|
2,214 |
|
|
|
— |
|
Summary by Category (Amounts in thousands) |
|||||||||||||||||||
Three months ended July 31, 2023 |
Fuel |
|
Grocery & General Merchandise |
|
Prepared Food & Dispensed Beverage |
|
Other |
|
Total |
||||||||||
Revenue |
$ |
2,427,333 |
|
|
$ |
996,936 |
|
|
$ |
372,813 |
|
|
$ |
72,169 |
|
|
$ |
3,869,251 |
|
Gross profit |
$ |
296,978 |
|
|
$ |
339,573 |
|
|
$ |
216,861 |
|
|
$ |
24,342 |
|
|
$ |
877,754 |
|
|
|
12.2 |
% |
|
|
34.1 |
% |
|
|
58.2 |
% |
|
|
33.7 |
% |
|
|
22.7 |
% |
Fuel gallons sold |
|
713,991 |
|
|
|
|
|
|
|
|
|
||||||||
Three months ended July 31, 2022 |
|
|
|
|
|
|
|
|
|
||||||||||
Revenue |
$ |
3,096,342 |
|
|
$ |
923,064 |
|
|
$ |
343,553 |
|
|
$ |
91,685 |
|
|
$ |
4,454,644 |
|
Gross profit |
$ |
308,188 |
|
|
$ |
313,307 |
|
|
$ |
190,953 |
|
|
$ |
23,802 |
|
|
$ |
836,250 |
|
|
|
10.0 |
% |
|
|
33.9 |
% |
|
|
55.6 |
% |
|
|
26.0 |
% |
|
|
18.8 |
% |
Fuel gallons sold |
|
689,467 |
|
|
|
|
|
|
|
|
|
||||||||
Fuel Gallons |
|
Fuel Margin |
||||||||||||||||||||||||||||
Same-store Sales |
(Cents per gallon, excluding credit card fees) |
|||||||||||||||||||||||||||||
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal Year |
|||||||||||
F2024 |
0.4 |
% |
|
|
|
|
|
|
|
|
F2024 |
41.6 |
¢ |
|
|
|
|
|
|
|
|
|||||||||
F2023 |
(2.3 |
) |
|
0.3 |
% |
|
(0.5 |
)% |
|
— |
% |
|
(0.8 |
)% |
F2023 |
44.7 |
|
40.5 |
¢ |
|
40.7 |
¢ |
|
34.6 |
¢ |
|
40.2 |
¢ |
||
F2022 |
9.0 |
|
|
2.5 |
|
|
5.7 |
|
|
1.5 |
|
|
4.4 |
|
F2022 |
35.1 |
|
34.7 |
|
38.3 |
|
36.2 |
|
36.0 |
||||||
Grocery & General Merchandise |
|
Grocery & General Merchandise |
||||||||||||||||||||||||||||
Same-store Sales |
Margin |
|||||||||||||||||||||||||||||
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal Year |
|||||||||||
F2024 |
5.2 |
% |
|
|
|
|
|
|
|
|
F2024 |
34.1 |
% |
|
|
|
|
|
|
|
|
|||||||||
F2023 |
5.5 |
|
|
6.9 |
% |
|
5.8 |
% |
|
7.1 |
% |
|
6.3 |
% |
F2023 |
33.9 |
|
|
33.3 |
% |
|
34.0 |
% |
|
33.0 |
% |
|
33.6 |
% |
|
F2022 |
7.0 |
|
|
6.8 |
|
|
7.7 |
|
|
4.3 |
|
|
6.3 |
|
F2022 |
33.0 |
|
|
33.3 |
|
|
32.0 |
|
|
32.5 |
|
|
32.7 |
|
|
Prepared Food & Dispensed Beverage |
|
Prepared Food & Dispensed Beverage |
||||||||||||||||||||||||||||
Same-store Sales |
Margin |
|||||||||||||||||||||||||||||
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Fiscal Year |
|||||||||||
F2024 |
5.9 |
% |
|
|
|
|
|
|
|
|
F2024 |
58.2 |
% |
|
|
|
|
|
|
|
|
|||||||||
F2023 |
8.4 |
|
|
10.5 |
% |
|
5.0 |
% |
|
4.9 |
% |
|
7.1 |
% |
F2023 |
55.6 |
|
|
56.7 |
% |
|
57.3 |
% |
|
56.8 |
% |
|
56.6 |
% |
|
F2022 |
10.8 |
|
|
4.1 |
|
|
7.4 |
|
|
7.6 |
|
|
7.4 |
|
F2022 |
61.0 |
|
|
60.6 |
|
|
58.0 |
|
|
56.9 |
|
|
59.2 |
|
|
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets as well as impairment charges. Neither EBITDA nor Adjusted EBITDA are considered GAAP measures, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. These measures have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and they are regularly used by the Company for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation.
Because non-GAAP financial measures are not standardized, EBITDA and Adjusted EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of these non-GAAP financial measures with those used by other companies.
The following table contains a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended July 31, 2023 and 2022:
(in thousands) |
Three Months Ended July 31, |
|||||
|
2023 |
|
2022 |
|||
Net income |
$ |
169,237 |
|
|
$ |
152,932 |
Interest, net |
|
12,495 |
|
|
|
13,816 |
Federal and state income taxes |
|
52,262 |
|
|
|
49,936 |
Depreciation and amortization |
|
82,905 |
|
|
|
76,295 |
EBITDA |
|
316,899 |
|
|
|
292,979 |
(Gain) loss on disposal of assets and impairment charges |
|
(1,448 |
) |
|
|
230 |
Adjusted EBITDA |
$ |
315,451 |
|
|
$ |
293,209 |
NOTES:
- Gross Profit is defined as revenue less cost of goods sold (exclusive of depreciation and amortization)
- Inside is defined as the combination of grocery and general merchandise and prepared food and dispensed beverage
This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of the conflict in
Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on September 12, 2023. The call will be broadcast live over the Internet at 7:30 a.m. CST. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx. No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx for one year after the call.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230911909317/en/
Investor Relations Contact:
Brian Johnson (515) 965-6587
Media Relations Contact:
Katie Petru (515) 446-6772
Source: Casey’s General Stores
