Casey’s General Stores, Inc. ("Casey's" or the "Company")
(Nasdaq: CASY) one of the leading convenience store chains in the
United States, today announced financial results for the three
months ended July 31, 2023.
First Quarter Key
Highlights
- Diluted EPS of $4.52, up 11% from the same period a year
ago.
- Inside same-store sales increased 5.4% compared to prior year,
and 12.1% on a two-year stack basis, with an inside margin of
40.6%. Total inside gross profit increased 10.3% to $556.4 million
compared to the prior year.
- Same-store fuel gallons were up 0.4% compared to prior year
with a fuel margin of 41.6 cents per gallon. Total fuel gross
profit decreased 3.6% to $297.0 million compared to the prior
year.
- Same-store operating expense excluding credit card fees were up
3.4%, favorably impacted by a 3% 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 11% increase in diluted EPS,” said Darren
Rebelez, Chairman, President and CEO. “With a more normalized macro
operating environment in the quarter, the strength of Casey's
unique business model was on full display. Inside same-store sales
were strong, driven by whole pizza pies and the successful launch
of Casey's Thin Crust Pizza. The fuel team continues to do an
excellent job striking the right balance between gallon growth and
gross profit margin, as evidenced by fuel margin of 41.6 cents per
gallon while growing same-store gallons. Finally, I am very proud
of our team's ability to effectively manage operating expenses as
we continue to prioritize simplification and efficiency inside our
stores.”
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 8.1% for the quarter driven by strong
performance in the prepared food and dispensed beverage category,
including whole pizza pies, hot sandwiches and donuts as well as
non-alcoholic and alcoholic beverages, snacks and candy in the
grocery and general merchandise category. Inside margin was up 80
basis points compared to the same quarter a year ago, primarily due
to softening of prepared food and dispensed beverage ingredient
costs as well as increased penetration of private label
products.
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 3.6% compared to the prior
year primarily due to the store count increase; also contributing
were same-store gallons sold 0.4% versus the prior year. The
Company’s total fuel gross profit was down 3.6% versus the prior
year, as we lapped record high fuel margins last year. The Company
sold $20.2 million in renewable fuel credits (RINs) in the first
quarter, an increase of $2.5 million from the same quarter in the
prior year.
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 3.2% during the first quarter.
Nearly 3% of the increase is due to operating 82 more stores than
prior year. Credit card fees decreased approximately $6 million due
to lower retail fuel price which offset all remaining operating
expense increases. Same-store employee expense was approximately
flat, as the increase in wage rate was nearly offset by the
reduction in same-store hours.
_______________
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 $1.3 billion in
available liquidity, consisting of approximately $439 million in
cash and cash equivalents on hand and $900 million in available
borrowing capacity on existing lines of credit.
Share Repurchase
During the first quarter, the Company repurchased shares for
approximately $30 million. The Company has $370 million remaining
under its existing share repurchase authorization.
Dividend
At its September meeting, the Board of Directors voted to pay a
quarterly dividend of $0.43 per share. The dividend is payable
November 15, 2023 to shareholders of record on November 1,
2023.
Fiscal 2024 Outlook
Casey's is updating its fiscal 2024 outlook as a result of the
pending transactions and now expects to add at least 150 stores in
fiscal 2024.
The Company is not updating its outlook for the following
metrics. Casey’s currently expects inside same-store sales to
increase 3% to 5%. We expect inside margin improvement to
approximately 40% to 41%. The Company expects same-store fuel
gallons sold to be between negative 1% to positive 1%. Total
operating expenses are expected to increase approximately 5% to 7%.
Net interest expense is expected to be approximately $55 million.
Depreciation and amortization is expected to be approximately $340
million and the purchase of property and equipment is expected to
be $500 to $550 million The tax rate is expected to be
approximately 24% to 26% for the year.
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 $2,694,571 at July 31, 2023 and $2,620,149 at April
30, 2023
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 Ukraine or other
geopolitical disruptions, as well as other risks, uncertainties and
factors which are described in the Company’s most recent annual
report on Form 10-K and quarterly reports on Form 10-Q, as filed
with the Securities and Exchange Commission and available on our
website. Any forward-looking statements contained in this release
represent our current views as of the date of this release with
respect to future events, and Casey’s disclaims any intention or
obligation to update or revise any forward-looking statements in
the release whether as a result of new information, future events,
or otherwise.
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
Caseys General Stores (NASDAQ:CASY)
過去 株価チャート
から 4 2024 まで 5 2024
Caseys General Stores (NASDAQ:CASY)
過去 株価チャート
から 5 2023 まで 5 2024