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Form 8-K CASEYS GENERAL STORES For: Jun 01

June 7, 2022 5:01 PM EDT

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Exhibit 99.1
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FOR IMMEDIATE RELEASE
Casey’s General Stores, Inc.
One SE Convenience Blvd
Ankeny, IA 50021
Casey's Announces Fourth Quarter Results
Ankeny, IA, June 7, 2022 - Casey’s General Stores, Inc., ("Casey's" or the "Company") (Nasdaq symbol CASY) one of the leading convenience store chains in the United States, today announced financial results for the three months and year ended April 30, 2022.

Fourth Quarter 2022 Key Highlights

Diluted EPS of $1.60, up 43% from the same period a year ago.
Inside same-store sales up 5.2% with an inside margin of 39.4%.
Fuel same-store gallons sold up 1.5% with a fuel margin of 36.2 cents per gallon.
Casey's increased the quarterly dividend 9% to $0.38 per share, marking the 23rd consecutive annual increase.

Fiscal Year 2022 Key Highlights

Diluted EPS of $9.10, an all-time high.
Casey's Rewards members of approximately 5 million at year-end, adding over 1.3 million in the fiscal year.
Total store growth of 228 stores, including 207 acquired locations, marking the largest unit growth year in the Company's history.
Strong performance led the Company to prepay $168 million in variable rate debt.

“Casey's delivered another record fiscal year to its shareholders with inside sales up 6.6%," said Darren Rebelez, President and CEO. “Inside same-store sales were driven by strong prepared food and dispensed beverages, most notably pizza slices and our new breakfast offering. Private label's tremendous progress resulted in exiting the quarter at 5% sales penetration of the grocery and general merchandise category. Despite all-time high fuel costs and challenging macro-economic conditions, fuel volume and margins remained strong. We had the most acquisitive year in our Company's history, finishing the year with 2,452 stores. Thanks to the hard work and commitment of the Casey's team, we are well positioned to deliver on our long-term strategic plan commitments in fiscal 2023.”

Earnings
Three Months Ended April 30,Twelve Months Ended April 30,
2022202120222021
Net income (in thousands)$59,777 $41,698 $339,790 $312,900 
Diluted earnings per share$1.60 $1.12 $9.10 $8.38 
Adjusted EBITDA (in thousands)$165,506 $140,556 $800,040 $728,924 

Fourth quarter net income, Diluted EPS, and Adjusted EBITDA (reconciled later in the document) were up compared to the same period a year ago due to higher profitability both inside the store and in fuel, partially offset by higher operating expenses. Net income and Diluted EPS were also positively affected by a lower tax rate, and negatively affected by higher interest expense and higher depreciation expense.













Inside
Three Months Ended April 30,Twelve Months Ended April 30,
2022202120222021
Inside sales (in thousands)$1,037,315 $913,364 $4,345,627 $3,811,521 
Inside same-store sales5.2 %12.8 %6.6 %4.0 %
Grocery and general merchandise same-store sales4.3 %12.5 %6.3 %6.6 %
Prepared food and dispensed beverage same-store sales7.6 %13.4 %7.4 %(2.1)%
Inside gross profit (in thousands)$409,040 $364,872 $1,739,829 $1,526,262 
Inside margin39.4 %39.9 %40.0 %40.0 %
Grocery and general merchandise margin32.5 %31.8 %32.7 %32.0 %
Prepared food and dispensed beverage margin56.9 %60.1 %59.2 %60.1 %

Total inside sales were up 14% for the quarter and total inside gross profit was up 12%. Inside same-store sales were driven by strong sales in pizza slices and breakfast sandwiches, along with non-alcoholic and alcoholic beverages. Inside margin was down 50 basis points for the quarter primarily due to inflationary pressures in the prepared food and dispensed beverage category, partially offset by pricing actions and an increase in single-serve and smaller package sized non-alcoholic and alcoholic beverages in the grocery and general merchandise category.

Fuel1
Three Months Ended April 30,Twelve Months Ended April 30,
2022202120222021
Fuel gallons sold (in thousands)621,118 535,274 2,579,179 2,180,772 
Same-store gallons sold1.5 %6.4 %4.4 %(8.1)%
Fuel gross profit (in thousands)$224,637 $176,664 $928,868 $761,247 
Fuel margin (cents per gallon, excluding credit card fees)36.2 ¢33.0 ¢36.0 ¢34.9 ¢

Same-store gallons sold were up 1.5% for the quarter, and up 8% on a two-year stacked basis. Fuel gross profit was up 27% due to an increase of 3.2 cents per gallon in fuel margin coupled with a 16% increase in total fuel gallons sold, despite a significant increase in fuel cost experienced at the end of the quarter. The Company sold $1.1 million in renewable fuel credits (RINs) in the fourth quarter, while no RINs were sold in the same period last year.

Operating Expenses
Three Months Ended April 30,Twelve Months Ended April 30,
2022202120222021
Operating expenses (in thousands)$490,904 $426,308 $1,961,473 $1,637,191 
Credit card fees (in thousands)$53,208 $38,981 $202,584 $147,366 
Same-store operating expense excluding credit card fees8.0 %6.5 %8.9 %3.0 %

Operating expenses increased 15.2% for the fourth quarter. Approximately 9% of the increase is due to operating 209 more stores than a year ago. Additionally, approximately 4% was related to same-store employee expense. Finally, approximately 2% of the change was related to same-store credit card fees due to the higher price of retail fuel.

1 Fuel category does not include wholesale fuel activity, which is included in Other.



Expansion
Store Count
Stores at April 30, 20212,243
New store construction21
Acquisitions207
Acquisitions not opened(3)
Prior acquisitions opened4
Closed(20)
Stores at April 30, 20222,452

Liquidity
At April 30, the Company had approximately $634 million in available liquidity, consisting of approximately $159 million in cash and cash equivalents on hand and $475 million in undrawn borrowing capacity on existing lines of credit. The Company prepaid variable rate debt by approximately $168 million in the quarter.

Share Repurchase
The Company has $400 million remaining under its existing share repurchase authorization. There were no repurchases made against that authorization in the fourth quarter.

Dividend
At its June meeting, the Board of Directors voted to increase the quarterly dividend by 9% to $0.38 per share, which is the 23rd consecutive year increasing the dividend. The dividend is payable August 15, 2022 to shareholders of record on August 1, 2022.

Fiscal 2023 Outlook
Casey's expects the following performance during fiscal 2023. The Company expects same-store inside sales to increase 4% to 6% and maintain an inside margin of approximately 40%. The Company expects same-store fuel gallons to be flat to 2% higher. Total operating expenses are expected to increase approximately 9% to 10%. The Company expects to add approximately 80 stores in fiscal 2023, and expects to exceed our stated three year commitment of 345 units. Interest expense is expected to be approximately $55 million. Depreciation and amortization is expected to be approximately $320 million and the purchase of property plant and equipment is expected to be approximately $450 to $500 million, including approximately $135 million in one-time store remodel costs for recently acquired stores. 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 April 30,Twelve Months Ended April 30,
 2022202120222021
Total revenue$3,458,942 $2,378,236 $12,952,594 $8,707,189 
Cost of goods sold (exclusive of depreciation and amortization, shown separately below)2,802,199 1,817,244 10,189,880 6,350,754 
Operating expenses490,904 426,308 1,961,473 1,637,191 
Depreciation and amortization77,866 69,897 303,541 265,195 
Interest, net15,291 11,168 56,972 46,679 
Income before income taxes72,682 53,619 440,728 407,370 
Federal and state income taxes12,905 11,921 100,938 94,470 
Net income$59,777 $41,698 $339,790 $312,900 
Net income per common share
Basic$1.61 $1.12 $9.14 $8.44 
Diluted$1.60 $1.12 $9.10 $8.38 
Basic weighted average shares37,170,941 37,117,504 37,158,898 37,092,273 
Plus effect of stock compensation197,800 263,969 197,800 263,865 
Diluted weighted average shares37,368,741 37,381,473 37,356,698 37,356,138 



Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
 
April 30, 2022April 30, 2021
Assets
Current assets
Cash and cash equivalents$158,878 $336,545 
Receivables108,028 79,698 
Inventories396,199 286,598 
Prepaid expenses17,859 11,214 
Income taxes receivable44,071 9,578 
Total current assets725,035 723,633 
Other assets, net of amortization187,219 82,147 
Goodwill612,934 161,075 
Property and equipment, net of accumulated depreciation of $2,425,709 at April 30, 2022 and $2,206,405 at April 30, 20213,980,542 3,493,459 
Total assets$5,505,730 $4,460,314 
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt and finance lease obligations$24,466 $2,354 
Accounts payable588,783 355,471 
Accrued expenses291,429 254,924 
Total current liabilities904,678 612,749 
Long-term debt and finance lease obligations, net of current maturities1,663,403 1,361,395 
Deferred income taxes520,472 439,721 
Deferred compensation12,746 15,094 
       Insurance accruals, net of current portion27,957 26,239 
Other long-term liabilities135,636 72,437 
Total liabilities3,264,892 2,527,635 
Total shareholders’ equity2,240,838 1,932,679 
Total liabilities and shareholders’ equity$5,505,730 $4,460,314 



Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
 Twelve months ended April 30,
 20222021
Cash flows from operating activities:
Net income$339,790 $312,900 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization303,541 265,195 
Amortization of debt issuance costs2,527 1,603 
Stock-based compensation37,976 31,986 
(Gain) loss on disposal of assets and impairment charges(1,201)9,680 
Deferred income taxes82,721 4,123 
Changes in assets and liabilities:
Receivables(33,025)(26,278)
Inventories(76,730)(50,342)
Prepaid expenses(6,376)(1,413)
Accounts payable165,893 166,546 
Accrued expenses23,574 65,497 
Income taxes(35,716)5,714 
Other, net(14,233)18,877 
Net cash provided by operating activities788,741 804,088 
Cash flows from investing activities:
Purchase of property and equipment(326,475)(441,252)
Payments for acquisitions of businesses, net of cash acquired(901,638)(9,356)
Proceeds from sales of property and equipment70,118 6,268 
Net cash used in investing activities(1,157,995)(444,340)
Cash flows from financing activities:
Proceeds from long-term debt450,000 650,000 
Repayments of long-term debt(188,537)(571,661)
Payments of debt issuance costs(1,149)(5,525)
Net payments of short-term debt (120,000)
Proceeds from exercise of stock options133 1,784 
Payments of cash dividends(51,212)(47,971)
Tax withholdings on employee stock-based awards(17,648)(8,105)
Net cash provided by (used in) financing activities191,587 (101,478)
Net (decrease) increase in cash and cash equivalents(177,667)258,270 
Cash and cash equivalents at beginning of the period336,545 78,275 
Cash and cash equivalents at end of the period$158,878 $336,545 
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
 Twelve months ended April 30,
 20222021
Cash paid during the period for:
Interest, net of amount capitalized$54,499 $48,508 
Income taxes, net49,565 80,916 
Noncash investing and financing activities:
Purchased property and equipment in accounts payable46,659 9,204 



Summary by Category (Amounts in thousands)
Three months ended April 30, 2022FuelGrocery & General
Merchandise
Prepared Food
& Dispensed Beverage
OtherTotal
Revenue$2,344,630 $744,043 $293,272 $76,997 $3,458,942 
Gross profit$224,637 $242,065 $166,975 $23,066 $656,743 
9.6 %32.5 %56.9 %30.0 %19.0 %
Fuel gallons sold621,118 
Three months ended April 30, 2021
Revenue$1,445,119 $649,822 $263,542 $19,753 $2,378,236 
Gross profit$176,664 $206,480 $158,392 $19,456 $560,992 
12.2 %31.8 %60.1 %98.5 %23.6 %
Fuel gallons sold535,274 
 
Summary by Category (Amounts in thousands)
Twelve months ended April 30, 2022FuelGrocery & General
Merchandise
Prepared Food
& Dispensed Beverage
OtherTotal
Revenue$8,312,038 $3,141,527 $1,204,100 $294,929 $12,952,594 
Gross profit$928,868 $1,027,477 $712,352 $94,017 $2,762,714 
11.2 %32.7 %59.2 %31.9 %21.3 %
Fuel gallons sold2,579,179 
Twelve months ended April 30, 2021
Revenue$4,825,466 $2,724,374 $1,087,147 $70,202 $8,707,189 
Gross profit$761,247 $872,573 $653,689 $68,926 $2,356,435 
15.8 %32.0 %60.1 %98.2 %27.1 %
Fuel gallons sold2,180,772 
Fuel GallonsFuel Margin
Same-store Sales(Cents per gallon, excluding credit card fees)
 Q1Q2Q3Q4Fiscal
Year
 Q1Q2Q3Q4Fiscal
Year
F20229.0 %2.5 %5.7 %1.5 %4.4 %F202235.1 ¢34.7 ¢38.3 ¢36.2 ¢36.0 ¢
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 %7.7 %4.3 %6.3 %F202233.0 %33.3 %32.0 %32.5 %32.7 %
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 %7.4 %7.6 %7.4 %F202261.0 %60.6 %58.0 %56.9 %59.2 %
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 twelve months ended April 30, 2022 and 2021:
(In thousands)Three Months Ended April 30,Twelve Months Ended April 30,
 2022202120222021
Net income$59,777 $41,698 $339,790 $312,900 
Interest, net15,291 11,168 56,972 46,679 
Depreciation and amortization77,866 69,897 303,541 265,195 
Federal and state income taxes12,905 11,921 100,938 94,470 
EBITDA$165,839 $134,684 $801,241 $719,244 
(Gain) loss on disposal of assets and impairment charges(333)5,872 (1,201)9,680 
Adjusted EBITDA$165,506 $140,556 $800,040 $728,924 
NOTES:
Gross Profit or Margin 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 COVID-19 and related governmental actions, 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 June 8, 2022. The call will be broadcast live over the Internet at 7:30 a.m. CDT.  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



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