Close

Form 8-K CASEYS GENERAL STORES For: Dec 07

December 7, 2021 5:05 PM EST

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Exhibit 99.1
logo.jpg
FOR IMMEDIATE RELEASE
Casey’s General Stores, Inc.
One SE Convenience Blvd
Ankeny, IA 50021
Casey's Announces Second Quarter Results
Ankeny, IA, December 7, 2021 - Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq symbol CASY) a leading convenience store chain in the United States, today announced financial results for the three and six months ended October 31, 2021.

Second Quarter Key Highlights

Inside same-store sales increased 6.0% compared to prior year with a margin of 40.7%. Total inside gross profit increased 12.3% to $463.4 million compared to the same period last year.
Fuel gallons increased 2.5% on a same-store basis compared to prior year with a fuel margin of 34.7 cents per gallon. Total fuel gross profit increased 13.6% to $231.9 million compared to the same period last year.
Diluted EPS of $2.59 compared to $3.00 for the same period a year ago.
Casey's announced the pending acquisition of 40 stores from Pilot Corporation, primarily in the Knoxville, TN market.
Casey's recognized as a "Corporate Champion" by the Women's Forum of New York for its 50% gender diversity on its Board of Directors.

“Inside sales and fuel gallons sold were up in the second quarter as guest traffic continues to improve,” said Darren Rebelez, President and CEO. “I am very proud of how the Casey’s team responded during a difficult retail environment this quarter. Inside gross profit was up sharply despite product availability pressures, especially in our Prepared Food and Dispensed Beverage business, and an inflationary supply chain environment. Our fuel team achieved strong margins in a challenging rising cost market while also growing fuel gallons sold. We are making excellent progress integrating the Buchanan Energy and Circle K acquisitions and look forward to doing the same with the pending Pilot acquisition.”

Earnings
Three Months Ended October 31,Six Months Ended October 31,
2021202020212020
Net income (in thousands)$96,831 $111,983 $215,990 $232,575 
Diluted earnings per share$2.59 $3.00 $5.78 $6.24 
Adjusted EBITDA (in thousands)$217,009 $223,231 $460,198 $460,986 

Adjusted EBITDA (reconciled later in the document) was down slightly compared to the same period a year ago as higher gross profit from inside the store and fuel (due to both strong same store volumes and new units) was offset by higher operating expenses due to higher wage rates and credit card fees as well as operating 161 additional stores (or 7%). Net income and diluted EPS in the second quarter were also impacted by higher depreciation expense due to operating more stores than last year.





Inside
Three Months Ended October 31,Six Months Ended October 31,
2021202020212020
Inside sales (in thousands)$1,138,988 $1,007,048 $2,282,913 $2,009,675 
Inside same-store sales6.0 %3.5 %7.0 %1.5 %
Grocery and general merchandise same-store sales6.8 %6.6 %6.9 %5.0 %
Prepared food and dispensed beverage same-store sales4.1 %(3.6)%7.3 %(6.6)%
Inside gross profit (in thousands)$463,438 $412,653 $926,952 $809,900 
Inside margin40.7 %41.0 %40.6 %40.3 %
Grocery and general merchandise margin33.3 %33.3 %33.1 %32.7 %
Prepared food and dispensed beverage margin60.6 %60.1 %60.8 %59.9 %

Inside same-store sales were driven by strong performance in packaged beverages, grocery items such as salty snacks and meat snacks, as well as continued momentum in pizza slices, driven in part by improved guest traffic. Grocery and General Merchandise same-stores sales were up 14% on a two-year stacked basis, due in part to the effective store resets completed last year. Inside margin was positively impacted by the private label program as well as procurement initiatives. Prepared Food and Dispensed Beverage same-store sales were adversely impacted by supply chain challenges in the quarter, notably in bakery and dispensed beverages. The Company implemented selective price increases to offset inflationary pressures throughout the business.

Fuel
Three Months Ended October 31,Six Months Ended October 31,
2021202020212020
Fuel gallons sold (in thousands)668,757 577,581 1,336,291 1,127,089 
Same-store gallons sold2.5 %(8.6)%5.6 %(11.7)%
Fuel gross profit (in thousands)$231,883 $204,154 $466,358 $414,184 
Fuel margin (cents per gallon, excluding credit card fees)34.7 ¢35.3 ¢34.9 ¢36.7 ¢

Same-store gallons sold were positively impacted by higher guest traffic despite lapping a challenging comparison from the previous second quarter. The Company’s total fuel gross profit was up 13.6% versus the prior second quarter, and margin decreased slightly. The Company sold $6.2 million in renewable fuel credits (RINs) in the second quarter, an increase of $2.4 million from the same quarter in the prior year.

Operating Expenses
Three Months Ended October 31,Six Months Ended October 31,
2021202020212020
Operating expenses (in thousands)$500,644 $410,348 $979,572 $796,436 
Credit card fees (in thousands)$52,072 $38,529 $101,515 $74,020 
Same-store operating expense excluding credit card fees8.3 %5.4 %12.7 %(0.1)%

Operating expenses increased 22% during the second quarter. Approximately 9% of the increase is due to operating 161 more stores than prior year. Additionally, approximately 7% of the increase is due to same-store employee and store operating expenses. Finally, approximately 2% of the change is due to an increase in same-store credit card fees from higher retail fuel prices and higher sales volume.




Expansion
Store Count
Stores at 4/30/20212,243
New store construction7
Acquisitions144
Acquisitions not opened(6)
Prior acquisitions opened4
Closed(12)
Stores at 10/31/20212,380

Liquidity
At October 31, the Company had approximately $787 million in available liquidity, consisting of approximately $312 million in cash and cash equivalents on hand and $475 million in undrawn borrowing capacity on existing lines of credit.

Share Repurchase
The Company has $300 million remaining under its existing share repurchase program which expires in April 2022. There were no repurchases made against that authorization in the second quarter.

Dividend
At its December meeting, the Board of Directors voted to pay a quarterly dividend of $0.35 per share. The dividend is payable February 15, 2022 to shareholders of record on February 1, 2022.

Fiscal 2022 Outlook
The Company is updating the previously disclosed 2022 outlook as follows:

Due to the recently announced 40-store acquisition of Pilot convenience stores, the Company now expects to add approximately 225 units during fiscal 2022, up from the previously disclosed 200 units. This pending transaction is expected to be EBITDA accretive in fiscal 2022. Total operating expenses are expected to increase in the high-teen percentages, versus the previously disclosed mid-teens percentages, due to the additional units as well as elevated credit card fees brought on by higher retail fuel prices. The impact to the second half of the fiscal year will be an approximate 18-20% increase in the third quarter and an 11-13% increase in the fourth quarter. Interest expense is expected to be approximately $55 million versus the previously disclosed $50 million, depreciation and amortization is expected to be approximately $310 million compared to the previously disclosed $300 million, and the purchase of property and equipment is expected to be approximately $400 million versus the $500 million previously disclosed as the Company reduced new store construction due to the increase in acquisition activity. As noted at the end of the first quarter, the tax rate is expected to be approximately 24.0% - 26.0% for the year.

The Company is maintaining the same-store fuel and inside sales mid-single digit percentage increase that was previously disclosed.




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 October 31,Six Months Ended October 31,
 2021202020212020
Total revenue$3,262,942 $2,215,905 $6,444,935 $4,320,926 
Cost of goods sold (exclusive of depreciation and amortization, shown separately below)2,545,352 1,584,145 5,003,458 3,065,663 
Operating expenses500,644 410,348 979,572 796,436 
Depreciation and amortization74,258 64,294 150,146 130,114 
Interest, net13,520 10,634 27,250 24,041 
Income before income taxes129,168 146,484 284,509 304,672 
Federal and state income taxes32,337 34,501 68,519 72,097 
Net income$96,831 $111,983 $215,990 $232,575 
Net income per common share
Basic$2.61 $3.02 $5.81 $6.29 
Diluted$2.59 $3.00 $5.78 $6.24 
Basic weighted average shares37,162,984 37,030,921 37,144,744 37,002,901 
Plus effect of stock compensation205,669 245,962 205,669 245,749 
Diluted weighted average shares37,368,653 37,276,883 37,350,413 37,248,650 



Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
 
October 31, 2021April 30, 2021
Assets
Current assets
Cash and cash equivalents$311,698 $336,545 
Receivables90,598 79,698 
Inventories350,182 286,598 
Prepaid expenses25,312 11,214 
Income taxes receivable17,231 9,578 
Total current assets795,021 723,633 
Other assets, net of amortization147,849 82,147 
Goodwill454,548 161,075 
Property and equipment, net of accumulated depreciation of $2,308,424 at October 31, 2021 and $2,206,405 at April 30, 20213,854,692 3,493,459 
Total assets$5,252,110 $4,460,314 
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt and finance lease obligations$34,134 $2,354 
Accounts payable509,300 355,471 
Accrued expenses260,062 254,924 
Total current liabilities803,496 612,749 
Long-term debt and finance lease obligations, net of current maturities1,677,391 1,361,395 
Deferred income taxes496,451 439,721 
Deferred compensation15,140 15,094 
       Insurance accruals, net of current portion25,374 26,239 
Other long-term liabilities111,124 72,437 
Total liabilities3,128,976 2,527,635 
Total shareholders’ equity2,123,134 1,932,679 
Total liabilities and shareholders’ equity$5,252,110 $4,460,314 



Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
 Six months ended October 31,
 20212020
Cash flows from operating activities:
Net income$215,990 $232,575 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization150,146 130,114 
Amortization of debt issuance costs717 — 
Share-based compensation17,500 14,492 
(Gain) loss on disposal of assets and impairment charges(1,707)2,159 
Deferred income taxes58,073 15,607 
Changes in assets and liabilities:
Receivables(8,087)(7,609)
Inventories(39,531)(13,835)
Prepaid expenses(13,698)(8,381)
Accounts payable87,831 125,719 
Accrued expenses(6,134)39,177 
Income taxes(6,898)22,924 
Other, net1,175 (985)
Net cash provided by operating activities455,377 551,957 
Cash flows from investing activities:
Purchase of property and equipment(123,518)(158,815)
Payments for acquisition of businesses, net of cash acquired(626,126)— 
Proceeds from sales of assets21,890 2,667 
Net cash used in investing activities(727,754)(156,148)
Cash flows from financing activities:
Proceeds from long-term debt300,000 650,000 
Payments of long-term debt(9,750)(570,738)
Payments of debt issuance costs(249)— 
Net payments of short-term debt (120,000)
Proceeds from exercise of stock options133 1,253 
Proceeds from capital grant 1,594 
Payments of cash dividends(25,234)(23,591)
Tax withholdings on employee share-based awards(17,370)(7,917)
Net cash provided by (used in) financing activities247,530 (69,399)
Net (decrease) increase in cash and cash equivalents(24,847)326,410 
Cash and cash equivalents at beginning of the period336,545 78,275 
Cash and cash equivalents at end of the period$311,698 $404,685 
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
 Six months ended October 31,
 20212020
Cash paid during the period for:
Interest, net of amount capitalized$25,076 $26,535 
Income taxes, net14,937 31,956 
Noncash investing and financing activities:
       Purchased property and equipment in accounts payable50,713 18,471 
       Right-of-use assets obtained in exchange for new finance lease liabilities47,775 — 
       Right-of-use assets obtained in exchange for new operating lease liabilities40,944 1,109 



Summary by Category (Amounts in thousands)
Three months ended October 31, 2021FuelGrocery & General
Merchandise
Prepared Food & Dispensed BeverageOtherTotal
Revenue$2,048,831 $829,484 $309,504 $75,123 $3,262,942 
Gross profit$231,883 $275,940 $187,498 $22,269 $717,590 
11.3 %33.3 %60.6 %29.6 %22.0 %
Fuel gallons sold668,757 
Three months ended October 31, 2020
Revenue$1,193,491 $718,226 $288,822 $15,366 $2,215,905 
Gross profit$204,154 $238,992 $173,661 $14,953 $631,760 
17.1 %33.3 %60.1 %97.3 %28.5 %
Fuel gallons sold577,581 
 
Summary by Category (Amounts in thousands)
Six months ended October 31, 2021FuelGrocery & 
General Merchandise
Prepared Food & Dispensed BeverageOtherTotal
Revenue$4,015,986 $1,664,969 $617,944 $146,036 $6,444,935 
Gross profit$466,358 $551,348 $375,604 $48,167 $1,441,477 
11.6 %33.1 %60.8 %33.0 %22.4 %
Fuel gallons sold1,336,291 
Six months ended October 31, 2020
Revenue$2,279,472 $1,450,087 $559,588 $31,779 $4,320,926 
Gross profit$414,184 $474,591 $335,309 $31,179 $1,255,263 
18.2 %32.7 %59.9 %98.1 %29.1 %
Fuel gallons sold1,127,089 

Fuel GallonsFuel Margin
Same-store Sales(Cents per gallon, excluding credit card fees)
 Q1Q2Q3Q4Fiscal
Year
 Q1Q2Q3Q4Fiscal
Year
F20229.0 %2.5 %—   F202235.1 ¢34.7 ¢— — — 
F2021(14.6)(8.6)(12.1)%6.4 %(8.1)%F202138.2 35.3 32.9 ¢33.0 ¢34.9 ¢
F2020(2.0)(1.8)(2.0)(14.7)(5.1)F202024.4 22.9 21.7 40.8 26.8 
Grocery & General MerchandiseGrocery & General Merchandise
Same-store SalesMargin
 Q1Q2Q3Q4Fiscal
Year
 Q1Q2Q3Q4Fiscal
Year
F20227.0 %6.8 %—   F202233.0 %33.3 %—   
F20213.6 6.6 5.4 %12.5 %6.6 %F202132.2 33.3 30.7 %31.8 %32.0 %
F20203.2 3.2 3.5 (2.0)1.9 F202031.3 33.3 32.9 30.4 32.0 
Prepared Food & Dispensed BeveragePrepared Food & Dispensed Beverage
Same-store SalesMargin
 Q1Q2Q3Q4Fiscal
Year
 Q1Q2Q3Q4Fiscal
Year
F202210.8 %4.1 %—   F202261.0 %60.6 %—   
F2021(9.8)(3.6)(5.0)%13.4 %(2.1)%F202159.7 60.1 60.6 %60.1 %60.1 %
F20201.6 1.9 2.8 (13.5)(1.5)F202062.2 60.9 60.2 60.0 60.9 





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 and six months ended October 31, 2021 and 2020:
(in thousands)Three Months Ended October 31,Six Months Ended October 31,
2021202020212020
Net income$96,831 $111,983 $215,990 $232,575 
Interest, net13,520 10,634 27,250 24,041 
Federal and state income taxes32,337 34,501 68,519 72,097 
Depreciation and amortization74,258 64,294 150,146 130,114 
EBITDA216,946 221,412 461,905 458,827 
Loss (gain) on disposal of assets and impairment charges63 1,819 (1,707)2,159 
Adjusted EBITDA$217,009 $223,231 $460,198 $460,986 
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, and the potential effect of COVID-19. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any future results expressed or implied by those forward-looking statements, including but not limited to executing our strategic plan, the impact and duration of COVID-19 and related governmental actions, 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 December 8, 2021. 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.


Investor Relations Contact:Media Relations Contact:
Brian Johnson (515) 965-6587Katie Petru (515) 446-6772



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings