04:49:47 EDT Thu 18 Jul 2024
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Casey's Announces Fourth Quarter Results

2023-06-06 17:05 ET - News Release


ANKENY, Iowa -- (Business Wire)

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, 2023.

Fourth Quarter 2023 Key Highlights

  • Diluted EPS of $1.49, compared to $1.60 from the prior year.
  • Inside same-store sales up 6.5% with an inside margin of 39.6%. Total inside gross profit increased 8.9% to $445.5 million compared to the prior year.
  • Fuel same-store gallons were flat with a fuel margin of 34.6 cents per gallon. Total fuel gross profit decreased 2.2% to $219.7 million compared to the prior year.
  • Same-store labor hours decreased by 3.3% compared to the prior year.
  • In June, Casey's increased the quarterly dividend 13% to $0.43 per share, marking the 24th consecutive annual increase.

Fiscal Year 2023 Key Highlights

  • Diluted EPS of $11.91, up 30.9% over the prior year.
  • Net income increased 31.5% to $446.7 million, and EBITDA1 increased 18.9% to $952.5 million.
  • The Company added 81 new stores in the fiscal year, ending the year at 2,521 stores.
  • Casey's Rewards members grew to 6.4 million at year-end.
  • Private label penetration in the grocery and general merchandise category was over 9% on both units and gross profit for the year.

“Casey's closed out its three-year strategic plan with another record fiscal year for its shareholders, highlighted by 19% EBITDA growth and 31% diluted EPS growth," said Darren Rebelez, President and CEO. “Inside same-store sales performed well, up 6.5%, or 13.6% on a two-year stack basis, led by alcoholic and non-alcoholic beverages, as well as strong performance in pizza and bakery. We continued to strike the right balance between fuel gallon volume and gross profit margin throughout the year to drive fuel gross profit up 15.7% from the prior year. The team did a tremendous job managing cost as same-store operating expense excluding credit-card fees were only up 2.8% versus the prior year. Finally, we are busy operating 81 new stores, finishing the year with 2,521 stores. As we look to discuss our next strategic plan on June 27th, I am proud of the hard work and dedication of the Casey's team, and we are well positioned to continue delivering long-term shareholder value.”

Earnings

 

Three Months Ended April 30,

 

Twelve Months Ended April 30,

 

2023

 

2022

 

2023

 

2022

Net income (in thousands)

$

56,092

 

$

59,777

 

$

446,691

 

$

339,790

Diluted earnings per share

$

1.49

 

$

1.60

 

$

11.91

 

$

9.10

Adjusted EBITDA (in thousands)

$

166,917

 

$

165,506

 

$

959,335

 

$

800,040

Fourth quarter adjusted EBITDA was up slightly versus the prior year primarily due to higher inside gross profit partially offset by higher operating expense and lower fuel gross profit. Net income and Diluted EPS were down compared to the same period a year ago, as the slight increase in adjusted EBITDA was more than offset by a higher tax rate and higher depreciation expense.

______________________________

1 EBITDA and Adjusted EBITDA are reconciled later in the document

Inside

 

Three Months Ended April 30,

Twelve Months Ended April 30,

 

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Inside sales (in thousands)

$

1,124,060

 

 

$

1,037,315

 

$

4,768,337

 

 

$

4,345,627

 

Inside same-store sales

 

6.5

%

 

 

5.2

%

 

6.5

%

 

 

6.6

%

Grocery and general merchandise same-store sales

 

7.1

%

 

 

4.3

%

 

6.3

%

 

 

6.3

%

Prepared food and dispensed beverage same-store sales

 

4.9

%

 

 

7.6

%

 

7.1

%

 

 

7.4

%

Inside gross profit (in thousands)

$

445,549

 

 

$

409,040

 

$

1,904,856

 

 

$

1,739,829

 

Inside margin

 

39.6

%

 

 

39.4

%

 

39.9

%

 

 

40.0

%

Grocery and general merchandise margin

 

33.0

%

 

 

32.5

%

 

33.6

%

 

 

32.7

%

Prepared food and dispensed beverage margin

 

56.8

%

 

 

56.9

%

 

56.6

%

 

 

59.2

%

Total inside sales were up 8.4% for the quarter and total inside gross profit was up 8.9%. Inside same-store sales were up 6.5%, or 12.0% on a two-year stack basis, driven by strong performance in non-alcoholic and alcoholic beverages in the grocery and general merchandise category as well as bakery and hot food in the prepared food and dispensed beverage category. Inside margin was up 20 basis points for the quarter primarily due to mix shift to higher margin items like grab and go beverages in the grocery and general merchandise category as well as increased private label penetration versus the prior year.

Fuel2

 

Three Months Ended April 30,

 

Twelve Months Ended April 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Fuel gallons sold (in thousands)

 

635,916

 

 

 

621,118

 

 

 

2,672,366

 

 

 

2,579,179

 

Same-store gallons sold

 

0.0

%

 

 

1.5

%

 

 

(0.8

) %

 

 

4.4

%

Fuel gross profit (in thousands)

$

219,746

 

 

$

224,637

 

 

$

1,074,913

 

 

$

928,868

 

Fuel margin (cents per gallon, excluding credit card fees)

 

34.6

¢

 

 

36.2

¢

 

 

40.2

¢

 

 

36.0

¢

Same-store gallons sold were flat for the quarter. Fuel gross profit was down 2.2% due to a decrease of 1.6 cents per gallon partially offset by a 2.4% increase in total fuel gallons sold. The Company did not sell any renewable fuel credits (RINs) in the fourth quarter, while $1.1 million in RINs were sold in the same period last year.

Operating Expenses

 

Three Months Ended April 30,

Twelve Months Ended April 30,

 

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Operating expenses (in thousands)

$

521,729

 

 

$

490,904

 

$

2,119,942

 

 

$

1,961,473

 

Credit card fees (in thousands)

$

51,287

 

 

$

53,208

 

$

217,714

 

 

$

202,584

 

Same-store operating expense excluding credit card fees

 

2.7

%

 

 

8.0

%

 

2.8

%

 

 

8.9

%

Total operating expenses increased 6.3% for the fourth quarter. Approximately 1.5% of the increase is due to operating 69 more stores than a year ago. Approximately 2% of the increase was related to same-store operations. Finally, approximately 1% of the change is related to an increase in accrued costs for incentive compensation due to strong financial performance. Same-store employee expense was flat as the increase in employee wage rate was offset by a 3.3% reduction in same-store labor hours.

Expansion

 

Store Count

April 30, 2022

2,452

New store construction

34

Acquisitions

47

Acquisitions not opened

(4)

Prior acquisitions opened

2

Closed

(10)

April 30, 2023

2,521

______________________________

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

Liquidity

On April 21, 2023, the Company refinanced its credit facility with an unsecured $1.1 billion facility that includes an $850 million revolving line of credit and $250 million term loan, each with a five-year maturity. At April 30, the Company had approximately $1.3 billion in available liquidity, consisting of approximately $379 million in cash and cash equivalents on hand and $875 million in undrawn borrowing capacity on existing lines of credit.

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 13% to $0.43 per share, which is the 24th consecutive year increasing the dividend. The dividend is payable August 15, 2023 to shareholders of record on August 1, 2023.

Fiscal 2024 Outlook

Casey's expects the following performance during fiscal 2024. The Company expects inside same-store sales to increase 3% to 5% and to improve inside margin 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%. The Company expects to add approximately 110 stores in fiscal 2024. 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 approximately $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 April 30,

Twelve Months Ended April 30,

 

 

2023

 

 

2022

 

2023

 

 

2022

Total revenue

$

3,328,701

 

$

3,458,942

$

15,094,475

 

$

12,952,594

Cost of goods sold (exclusive of depreciation and amortization, shown separately below)

 

2,640,949

 

 

2,802,199

 

12,022,069

 

 

10,189,880

Operating expenses

 

521,729

 

 

490,904

 

2,119,942

 

 

1,961,473

Depreciation and amortization

 

80,631

 

 

77,866

 

313,131

 

 

303,541

Interest, net

 

12,800

 

 

15,291

 

51,815

 

 

56,972

Income before income taxes

 

72,592

 

 

72,682

 

587,518

 

 

440,728

Federal and state income taxes

 

16,500

 

 

12,905

 

140,827

 

 

100,938

Net income

$

56,092

 

$

59,777

$

446,691

 

$

339,790

Net income per common share

 

 

 

 

 

 

Basic

$

1.50

 

$

1.61

$

11.99

 

$

9.14

Diluted

$

1.49

 

$

1.60

$

11.91

 

$

9.10

Basic weighted average shares

 

37,283,677

 

 

37,170,941

 

37,266,851

 

 

37,158,898

Plus effect of stock compensation

 

290,000

 

 

197,800

 

252,844

 

 

197,800

Diluted weighted average shares

 

37,573,677

 

 

37,368,741

 

37,519,695

 

 

37,356,698

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 
 

 

April 30, 2023

 

April 30, 2022

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

378,869

 

$

158,878

Receivables

 

120,547

 

 

108,028

Inventories

 

376,085

 

 

396,199

Prepaid expenses

 

22,107

 

 

17,859

Income taxes receivable

 

23,347

 

 

44,071

Total current assets

 

920,955

 

 

725,035

Other assets, net of amortization

 

192,153

 

 

187,219

Goodwill

 

615,342

 

 

612,934

Property and equipment, net of accumulated depreciation of $2,620,149 at April 30, 2023 and $2,425,709 at April 30, 2022

 

4,214,820

 

 

3,980,542

Total assets

$

5,943,270

 

$

5,505,730

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities

 

 

 

Current maturities of long-term debt and finance lease obligations

$

52,861

 

$

24,466

Accounts payable

 

560,546

 

 

588,783

Accrued expenses

 

313,718

 

 

291,429

Total current liabilities

 

927,125

 

 

904,678

Long-term debt and finance lease obligations, net of current maturities

 

1,620,513

 

 

1,663,403

Deferred income taxes

 

543,598

 

 

520,472

Insurance accruals, net of current portion

 

32,312

 

 

27,957

Other long-term liabilities

 

159,056

 

 

148,382

Total liabilities

 

3,282,604

 

 

3,264,892

Total shareholders’ equity

 

2,660,666

 

 

2,240,838

Total liabilities and shareholders’ equity

$

5,943,270

 

$

5,505,730

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

 

Twelve months ended April 30,

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

Net income

$

446,691

 

 

$

339,790

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

313,131

 

 

 

303,541

 

Amortization of debt issuance costs

 

1,789

 

 

 

2,527

 

Stock-based compensation

 

47,024

 

 

 

37,976

 

Loss (gain) on disposal of assets and impairment charges

 

6,871

 

 

 

(1,201

)

Deferred income taxes

 

23,126

 

 

 

82,721

 

Changes in assets and liabilities:

 

 

 

Receivables

 

(12,519

)

 

 

(33,025

)

Inventories

 

24,090

 

 

 

(76,730

)

Prepaid expenses

 

(4,248

)

 

 

(6,376

)

Accounts payable

 

(9,483

)

 

 

165,893

 

Accrued expenses

 

20,292

 

 

 

23,574

 

Income taxes

 

20,652

 

 

 

(35,716

)

Other, net

 

4,535

 

 

 

(14,233

)

Net cash provided by operating activities

 

881,951

 

 

 

788,741

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

 

(476,568

)

 

 

(326,475

)

Payments for acquisitions of businesses, net of cash acquired

 

(85,569

)

 

 

(901,638

)

Proceeds from sales of property and equipment

 

17,103

 

 

 

70,118

 

Net cash used in investing activities

 

(545,034

)

 

 

(1,157,995

)

Cash flows from financing activities:

 

 

 

Proceeds from long-term debt

 

 

 

 

450,000

 

Repayments of long-term debt

 

(40,970

)

 

 

(188,537

)

Payments of debt issuance costs

 

(3,940

)

 

 

(1,149

)

Proceeds from exercise of stock options

 

 

 

 

133

 

Payments of cash dividends

 

(55,617

)

 

 

(51,212

)

Tax withholdings on employee share-based awards

 

(16,399

)

 

 

(17,648

)

Net cash (used in) provided by financing activities

 

(116,926

)

 

 

191,587

 

Net increase (decrease) in cash and cash equivalents

 

219,991

 

 

(177,667

)

Cash and cash equivalents at beginning of the period

 

158,878

 

 

336,545

 

Cash and cash equivalents at end of the period

$

378,869

 

$

158,878

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION

 

Twelve months ended April 30,

 

2023

 

2022

Cash paid during the period for:

 

 

 

Interest, net of amount capitalized

$

56,799

 

$

54,499

Income taxes, net

 

90,398

 

 

49,565

Noncash investing and financing activities:

 

 

 

Purchased property and equipment in accounts payable

 

27,905

 

 

46,659

Summary by Category (Amounts in thousands)

Three months ended April 30, 2023

Fuel

 

Grocery &
General
Merchandise

 

Prepared Food
& Dispensed
Beverage

 

Other

 

Total

Revenue

$

2,137,815

 

 

$

809,838

 

 

$

314,222

 

 

$

66,826

 

 

$

3,328,701

 

Gross profit

$

219,746

 

 

$

266,969

 

 

$

178,580

 

 

$

22,457

 

 

$

687,752

 

 

 

10.3

%

 

 

33.0

%

 

 

56.8

%

 

 

33.6

%

 

 

20.7

%

Fuel gallons sold

 

635,916

 

 

 

 

 

 

 

 

 

Three months ended April 30, 2022

 

 

 

 

 

 

 

 

 

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 sold

 

621,118

 

 

 

 

 

 

 

 

 

Summary by Category (Amounts in thousands)

Twelve months ended April 30, 2023

Fuel

 

Grocery &
General
Merchandise

 

Prepared Food
& Dispensed
Beverage

 

Other

 

Total

Revenue

$

10,027,310

 

 

$

3,445,777

 

 

$

1,322,560

 

 

$

298,828

 

 

$

15,094,475

 

Gross profit

$

1,074,913

 

 

$

1,156,451

 

 

$

748,405

 

 

$

92,637

 

 

$

3,072,406

 

 

 

10.7

%

 

 

33.6

%

 

 

56.6

%

 

 

31.0

%

 

 

20.4

%

Fuel gallons sold

 

2,672,366

 

 

 

 

 

 

 

 

 

Twelve months ended April 30, 2022

 

 

 

 

 

 

 

 

 

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 sold

 

2,579,179

 

 

 

 

 

 

 

 

 

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

F2023

(2.3

)%

 

0.3

%

 

(0.5

)%

 

0.0

%

 

(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

F2021

(14.6

)

 

(8.6

)

 

(12.1

)

 

6.4

 

 

(8.1

)

F2021

38.2

 

35.3

 

32.9

 

33.0

 

34.9

Grocery & General Merchandise

 

Grocery & General Merchandise

Same-store Sales

Margin

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal
Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal
Year

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

 

F2021

3.6

 

 

6.6

 

 

5.4

 

 

12.5

 

 

6.6

 

F2021

32.2

 

 

33.3

 

 

30.7

 

 

31.8

 

 

32.0

 

Prepared Food & Dispensed Beverage

 

Prepared Food & Dispensed Beverage

Same-store Sales

Margin

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal
Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal
Year

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

 

F2021

(9.8

)

 

(3.6

)

 

(5.0

)

 

13.4

 

 

(2.1

)

F2021

59.7

 

 

60.1

 

 

60.6

 

 

60.1

 

 

60.1

 

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, 2023 and 2022:

(In thousands)

Three Months Ended April 30,

Twelve Months Ended April 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income

$

56,092

 

$

59,777

 

$

446,691

 

$

339,790

 

Interest, net

 

12,800

 

 

15,291

 

 

51,815

 

 

56,972

 

Depreciation and amortization

 

80,631

 

 

77,866

 

 

313,131

 

 

303,541

 

Federal and state income taxes

 

16,500

 

 

12,905

 

 

140,827

 

 

100,938

 

EBITDA

$

166,023

 

$

165,839

 

$

952,464

 

$

801,241

 

Loss (gain) on disposal of assets and impairment charges

 

894

 

 

(333

)

 

6,871

 

 

(1,201

)

Adjusted EBITDA

$

166,917

 

$

165,506

 

$

959,335

 

$

800,040

 

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 June 7, 2023. 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.

Contacts:

Investor Relations Contact:
Brian Johnson (515) 965-6587

Media Relations Contact:
Katie Petru (515) 446-6772

Source: Casey’s General Stores

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