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Casey’s General Stores, Inc.$111.71$1.531.39%

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 Casey’s Reports Fiscal 2017 Earnings; Positioned for Strong Future Growth
   Monday, June 05, 2017 4:12:00 PM ET

Casey’s General Stores, Inc. (CASY ) today reported diluted earnings per share of $0.76 for the fourth quarter of its fiscal year ending April 30, 2017 compared to $1.19 for the same period a year ago. For the year, diluted earnings per share were $4.48 versus $5.73 for the same period last year. "Despite a challenging operating environment, fiscal 2017 marked the 16th consecutive year of positive same-store sales growth in both the grocery and other merchandise and prepared food and fountain categories," said Terry Handley, President and CEO. "We also recently opened our first store in the state of Ohio, and now have 116 sites under agreement for new store construction. We are optimistic about our growth opportunities."

Fuel - The Company’s annual goal for fiscal 2017 was to increase same-store gallons sold 2.0% with an average margin of 18.4 cents per gallon. For the year, same-store gallons sold were up 2.1% with an average margin of 18.4 cents per gallon. "Fiscal 2017 same-store gallons sold and fuel margin were in line with our annual goals," stated Handley. For the quarter, same-store gallons decreased 0.5% with an average margin of 17.2 cents per gallon. The Company sold 15.5 million renewable fuel credits for $7.1 million in the fourth quarter. For fiscal 2017, total gallons sold were up 5.6% to 2.1 billion. Gross profit dollars for the year were down slightly to $378.3 million, primarily due to a 1.2 cents per gallon lower fuel margin partially offset by an increase in gallons sold.

Grocery and Other Merchandise - Casey’s annual goal was to increase same-store sales 6.2% with an average margin of 32.0%. For the year, same-store sales were up 2.9% with an average margin of 31.5%. "In spite of the pressures experienced by many in the industry, we continue to be a leader in same-store sales growth in this category," said Handley. For the fourth quarter, same-store sales were up 1.5% with an average margin of 31.1%. For the year, total sales were up 5.7% to $2.1 billion and gross profit dollars increased 4.4% to $657.2 million.

Prepared Food and Fountain - Casey’s annual goal was to increase same-store sales 10.2% with an average margin of 62.5%. For the year, same-store sales were up 4.8% with an average margin of 62.3%. "Fiscal 2017 proved to be a challenging environment for the broader food service industry; however, we are encouraged about the future of this category as we continue to enhance digital engagement with our customers, roll out operational growth programs to more stores, and have locked in favorable cheese costs through December of 2017," stated Handley. For the fourth quarter, same-store sales were up 3.2% with an average margin of 61.7%. For fiscal 2017, total sales increased 8.3% to $953.4 million, and gross profit dollars rose 7.9% at $594.0 million.

Operating Expenses - For the fiscal year, operating expenses increased 11.2% to $1.2 billion. For the fourth quarter, operating expenses were up 11.4%. "Both the year-to-date and fourth quarter increases were primarily attributable to increases in employee-related costs from operating more stores compared to the same periods a year ago, along with the various growth programs impacting our existing stores," said Handley. In addition, credit card fees and fuel expense combined were up $4.2 million for the quarter due to a 22.3% increase in retail fuel prices from the same time period a year ago.

Expansion - The Company’s annual goal for fiscal 2017 was to build or acquire 77 to 116 stores, replace 35 existing locations, and complete 100 major remodels. For the fiscal year, the Company built and opened 48 new stores, acquired 22 stores, completed 21 replacements, and remodeled 103 stores. As of April 30, 2017, there were 27 new stores, 21 replacement stores, and 11 major remodel stores under construction. Finally, at fiscal year end, the Company had 116 sites under agreement for new store construction and five acquisition stores under agreement to purchase. "Our new store construction activity continues to gain momentum," stated Handley. "The growing pipeline of sites under agreement has the Company well positioned for significant increase in organic growth. The Company will continue to review acquisitions that are a strategic fit."

Share Repurchase Program - From its inception on March 9, 2017, through the end of the fourth quarter of fiscal 2017, the Company repurchased 443,800 shares of its common stock under its open market share repurchase program for approximately $49.4 million, or an average price of $111.25 per share. As of April 30, 2017, the Company had a total remaining authorized amount for share repurchases of $250.6 million.

Fiscal 2018 Guidance - The corporate performance guidance for fiscal 2018 is as follows:

-- Increase same-store fuel gallons sold 1.0% to 2.0% with average margin of 18.0 to 20.0 cents per gallon

-- Increase same-store grocery and other merchandise sales 2.0% to 4.0% with average margin of 31.0% to 32.0%

-- Increase same-store prepared food and fountain sales 5.0% to 7.0% with average margin of 61.5% to 62.5%

-- Operating expenses expected to increase 9.0% to 11.0%

-- Depreciation and amortization expected to increase 13.0% to 15.0%

-- Build or acquire 80 to 120 stores, replace 30 existing locations, and complete 75 major remodels

Dividend - For the last 17 years, the Company has increased its annual dividend to shareholders. At its June meeting, the Board of Directors increased the quarterly dividend to $.26 per share. The dividend is payable August 15th to shareholders of record on August 1st, 2017.

                                                                                                                                                                                     
                                                                                                                                            Casey’s General Stores, Inc.
                                                                                                                                                            Condensed Consolidated
                                                                                                                                                                  Statements
                                                                                                                                                                   of Income
                                                              (Dollars in thousands, except share and per share amounts)
                                                                                                                                                                  (Unaudited)
                                                                                                                                                                                                                             
                                                                                                                                Three Months Ended April 30,                                                                                                           Twelve Months Ended April 30,
                                                                                                               2017                                             2016                                                               2017                                             2016
                                                                                     ---------------------------------------------------------                     ------------------------------------                     ---------------------------------------------------------                     ------------------------------------
Total revenue                                                                        $                         1,846,460                                                1,582,954                                           $                         7,506,587                                                7,122,086
Cost of goods sold (exclusive of depreciation and amortization,                             1,448,241                             1,194,734                               5,825,426                             5,508,465  
shown separately below)
                                                                                     -------------------- -------------- --------------------                      -------------- --------------------                      -------------------- -------------- --------------------                      -------------- --------------------
Gross profit                                                                                                     398,219                                                  388,220                                                                     1,681,161                                                1,613,621
Operating expenses                                                                                               292,590                                                  262,620                                                                     1,172,328                                                1,053,805
Depreciation and amortization                                                                                     51,947                                                   45,909                                                                       197,629                                                  170,937
Interest, net                                                                                  10,362                                 9,948                                  41,536                                40,173  
                                                                                     -------------------- -------------- --------------------                      -------------- --------------------                      -------------------- -------------- --------------------                      -------------- --------------------
Income before income taxes                                                                                        43,320                                                   69,743                                                                       269,668                                                  348,706
Federal and state income taxes                                                                 13,242                                22,699                                  92,183                               122,724  
                                                                                     -------------------- -------------- --------------------                      -------------- --------------------                      -------------------- -------------- --------------------                      -------------- --------------------
Net income                                                                           $                            30,078                                47,044                        $                           177,485                               225,982  
                                                                                     -------------------- -------------- --------------------                      -------------- --------------------                      -------------------- -------------- --------------------                      -------------- --------------------
Net income per common share
  Basic                                                                              $                              0.77                                  1.20                        $                              4.54                                  5.79  
                                                                                     ==================== ============== ====================                      ============== ====================                      ==================== ============== ====================                      ============== ====================
  Diluted                                                                            $                              0.76                                  1.19                        $                              4.48                                  5.73  
                                                                                     ==================== ============== ====================                      ============== ====================                      ==================== ============== ====================                      ============== ====================
Basic weighted average shares                                                                                 38,985,738                                               39,053,737                                                                    39,124,665                                               39,016,299
Plus effect of stock compensation                                                             450,073                               408,585                                 454,333                               405,900  
                                                                                     -------------------- -------------- --------------------                      -------------- --------------------                      -------------------- -------------- --------------------                      -------------- --------------------
Diluted weighted average shares                                                            39,435,811                            39,462,322                              39,578,998                            39,422,199  
                                                                                     ==================== ============== ====================                      ============== ====================                      ==================== ============== ====================                      ============== ====================
                                                                                                                                                                                                                                                                                                                          
                                                                                                                                 
                                                                                     Casey’s General Stores, Inc.
                                                                                                     Condensed Consolidated
                                                                                                         Balance Sheets
                                                                                                     (Dollars in thousands)
                                                                                                           (Unaudited)
                                                                                                                                                                         
                                                                                                                April 30, 2017                                                               April 30, 2016
                                                                                           --------------------------------------------------------                     ---------------------------------------------------------
Assets
Current assets
  Cash and cash equivalents                                                                $                           76,717                                           $                            75,775
  Receivables                                                                                                          43,244                                                                        27,701
  Inventories                                                                                                         201,644                                                                       204,988
  Prepaid expenses                                                                                                      9,179                                                                         3,008
  Income tax receivable                                                                             19,901                                  14,413  
                                                                                           -------------------- ------------- --------------------                      -------------------- -------------- --------------------
Total current assets                                                                               350,685                                 325,885  
                                                                                           -------------------- ------------- --------------------                      -------------------- -------------- --------------------
Other assets, net of amortization                                                                                      23,453                                                                        19,222
Goodwill                                                                                                              132,806                                                                       128,566
Property and equipment, net of accumulated depreciation                                          2,513,158                               2,252,475  
                                                                                           -------------------- ------------- --------------------                      -------------------- -------------- --------------------
Total assets                                                                               $                        3,020,102                        $                         2,726,148  
                                                                                           ==================== ============= ====================                      ==================== ============== ====================
Liabilities and Shareholders’ Equity
Current liabilities
  Notes payable to bank                                                                    $                              900                                           $                    --
  Current maturities of long-term debt                                                                                 15,421                                                                        15,375
  Accounts payable                                                                                                    293,903                                                                       241,207
  Accrued expenses                                                                                 136,322                                 130,989  
                                                                                           -------------------- ------------- --------------------                      -------------------- -------------- --------------------
Total current liabilities                                                                          446,546                                 387,571  
                                                                                           -------------------- ------------- --------------------                      -------------------- -------------- --------------------
  Long-term debt, net of current maturities                                                                           907,356                                                                       822,869
  Deferred income taxes                                                                                               440,124                                                                       394,934
  Deferred compensation                                                                                                15,784                                                                        17,813
  Other long-term liabilities                                                                       19,672                                  19,498  
                                                                                           -------------------- ------------- --------------------                      -------------------- -------------- --------------------
Total liabilities                                                                                1,829,482                               1,642,685  
                                                                                           -------------------- ------------- --------------------                      -------------------- -------------- --------------------
Total shareholders’ equity                                            1,190,620                               1,083,463  
                                                                                           -------------------- ------------- --------------------                      -------------------- -------------- --------------------
Total liabilities and shareholders’ equity                      $                        3,020,102                        $                         2,726,148  
                                                                                           ==================== ============= ====================                      ==================== ============== ====================
 
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.
 
 
                                                                                              Revenue and Gross Profit by Category (Amounts in thousands)
 
Three months ended 4/30/2017         Fuel                  Grocery & Other            Prepared Food       Other            Total
                                                                                                   Merchandise                                            & Fountain
                                                  -------------                        --------------------------------                        ------------------------------                        ----------                        -------------
Revenue                                           $  1,099,743                         $               500,068                                 $             233,150                                 $  13,499                         $  1,846,460
Gross profit                                      $     85,592                         $               155,374                                 $             143,774                                 $  13,479                         $    398,219
Margin                                                     7.8 %                                          31.1 %                                                61.7 %                                    99.9 %                               21.6 %
Fuel gallons                                           496,492
Three months ended 4/30/2016
Revenue                                           $    873,081                         $               477,487                                 $             218,349                                 $  14,037                         $  1,582,954
Gross profit                                      $     85,828                         $               153,299                                 $             135,073                                 $  14,020                         $    388,220
Margin                                                     9.8 %                                          32.1 %                                                61.9 %                                    99.9 %                               24.5 %
Fuel gallons                                           482,160
 
 
                                                                                              Revenue and Gross Profit by Category (Amounts in thousands)
 
Year ended 4/30/2017                                    Fuel                           Grocery & Other                      Prepared Food                          Other                               Total
                                                                                                   Merchandise                                            & Fountain
                                                  -------------                        --------------------------------                        ------------------------------                        ----------                        -------------
Revenue                                           $  4,414,128                         $             2,087,349                                 $             953,430                                 $  51,680                         $  7,506,587
Gross profit                                      $    378,347                         $               657,190                                 $             594,024                                 $  51,600                         $  1,681,161
Margin                                                     8.6 %                                          31.5 %                                                62.3 %                                    99.8 %                               22.4 %
Fuel gallons                                         2,061,794
Year ended 4/30/2016
Revenue                                           $  4,214,802                         $             1,974,073                                 $             880,713                                 $  52,498                         $  7,122,086
Gross profit                                      $    381,659                         $               629,234                                 $             550,292                                 $  52,436                         $  1,613,621
Margin                                                     9.1 %                                          31.9 %                                                62.5 %                                    99.9 %                               22.7 %
Fuel gallons                                         1,951,814
                                                                                                                                                
                                                                                                                                                        
                                                                    Fuel Gallons                                                                                                                                                                                                                  Fuel Margin
                                                               Same-store Sales Growth                                                                                                                                                                                          (Cents per gallon, excluding credit card fees)
          Q1       Q2       Q3        Q4      Fiscal                                                            Q1                  Q2                  Q3                  Q4                    Fiscal
                                                                                                                                              Year                                                                                                                                                                                                                                               Year
                           -----                       -----                       -----                       ------                       -------                                                                       ----------------                       ----------------                       ----------------                       ----------------                       ------------------------
F2017                       3.1 %                       3.7 %                       2.6 %                      (0.5 )%                       2.1 %                                             F2017                      19.5 ?                      18.6 ?                      17.9 ?                      17.2 ?                      18.4 ?
F2016                       3.4                         3.3                         1.6                         4.6                          3.0                                               F2016                      17.5                                   24.7                                   18.1                                   17.8                                   19.6
F2015                       3.0                         2.3                         2.2                         3.5                          2.6                                               F2015                      18.9                                   19.5                                   22.0                                   16.9                                   19.3
                                                                                                                                                                                                                                                                                                                                                                                            
                                                             Grocery & Other Merchandise                                                                                                                                                                                                  Grocery & Other Merchandise
                                                               Same-store Sales Growth                                                                                                                                                                                         Margin
                             Q1                          Q2                          Q3                           Q4                         Fiscal                                                              Q1                                     Q2                                     Q3                                     Q4                                   Fiscal
                                                                                                                                              Year                                                                                                                                                                                                                          Year
                           -----                       -----                       -----                       ------                       -------                                                  ------------------------               ------------------------               ------------------------               ------------------------               ------------------------
F2017                       4.7 %                       3.1 %                       3.0 %                       1.5 %                        2.9 %                        F2017                                      31.6 %                                 32.0 %                                 31.1 %                                 31.1 %                                 31.5 %
F2016                       7.0                         7.5                         7.1                         7.4                          7.1                          F2016                                      32.6                                   31.5                                   31.2                                   32.1                                   31.9
F2015                       7.7                         6.6                         7.7                         9.7                          7.8                          F2015                                      32.5                                   32.3                                   31.2                                   32.1                                   32.1
                                                                                                                                                                                                                                                                                                                                                                                            
                                                              Prepared Food & Fountain                                                                                                                                                                                                     Prepared Food & Fountain
                                                               Same-store Sales Growth                                                                                                                                                                                         Margin
                             Q1                          Q2                          Q3                           Q4                         Fiscal                                                              Q1                                     Q2                                     Q3                                     Q4                                   Fiscal
                                                                                                                                              Year                                                                                                                                                                                                                          Year
                           -----                       -----                       -----                       ------                       -------                                                  ------------------------               ------------------------               ------------------------               ------------------------               ------------------------
F2017                       5.1 %                       5.1 %                       5.8 %                       3.2 %                        4.8 %                        F2017                                      62.8 %                                 62.9 %                                 61.7 %                                 61.7 %                                 62.3 %
F2016                      10.3                         9.4                         6.0                         8.2                          8.4                          F2016                                      62.5                                   63.4                                   62.0                                   61.9                                   62.5
F2015                      11.1                        11.1                        14.1                        13.5                         12.4                          F2015                                      59.9                                   59.3                                   58.7                                   60.9                                   59.7
                                                                                                                                                                                                                                                                                                                                                                                            

Corporate information is available at this Web site: http://www.caseys.com . Earnings will be reported during a conference call on June 6, 2017. The call will be broadcast live over the Internet at 9:30 a.m. CDT via the Press and Documents section of our Web site and will be available in an archived format.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170605006183r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170605006183/en/

SOURCE: Casey’s General Stores, Inc.

Casey’s General Stores, Inc. 
Bill Walljasper, 515-965-6505


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