EX-99.1 3 ex991q42023pressrelease.htm EX-99.1 Document

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 6, 2023 - 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,
2023202220232022
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,
2023202220232022
Inside sales (in thousands)$1,124,060 $1,037,315 $4,768,337 $4,345,627 
Inside same-store sales6.5 %5.2 %6.5 %6.6 %
Grocery and general merchandise same-store sales7.1 %4.3 %6.3 %6.3 %
Prepared food and dispensed beverage same-store sales4.9 %7.6 %7.1 %7.4 %
Inside gross profit (in thousands)$445,549 $409,040 $1,904,856 $1,739,829 
Inside margin39.6 %39.4 %39.9 %40.0 %
Grocery and general merchandise margin33.0 %32.5 %33.6 %32.7 %
Prepared food and dispensed beverage margin56.8 %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,
2023202220232022
Fuel gallons sold (in thousands)635,916 621,118 2,672,366 2,579,179 
Same-store gallons sold0.0 %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,
2023202220232022
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 fees2.7 %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.

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


Expansion
Store Count
April 30, 20222,452
New store construction34
Acquisitions47
Acquisitions not opened(4)
Prior acquisitions opened2
Closed(10)
April 30, 20232,521

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,
 2023202220232022
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 expenses521,729 490,904 2,119,942 1,961,473 
Depreciation and amortization80,631 77,866 313,131 303,541 
Interest, net12,800 15,291 51,815 56,972 
Income before income taxes72,592 72,682 587,518 440,728 
Federal and state income taxes16,500 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 shares37,283,677 37,170,941 37,266,851 37,158,898 
Plus effect of stock compensation290,000 197,800 252,844 197,800 
Diluted weighted average shares37,573,677 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, 2023April 30, 2022
Assets
Current assets
Cash and cash equivalents$378,869 $158,878 
Receivables120,547 108,028 
Inventories376,085 396,199 
Prepaid expenses22,107 17,859 
Income taxes receivable23,347 44,071 
Total current assets920,955 725,035 
Other assets, net of amortization192,153 187,219 
Goodwill615,342 612,934 
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 payable560,546 588,783 
Accrued expenses313,718 291,429 
Total current liabilities927,125 904,678 
Long-term debt and finance lease obligations, net of current maturities1,620,513 1,663,403 
Deferred income taxes543,598 520,472 
       Insurance accruals, net of current portion32,312 27,957 
Other long-term liabilities159,056 148,382 
Total liabilities3,282,604 3,264,892 
Total shareholders’ equity2,660,666 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,
 20232022
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 amortization313,131 303,541 
Amortization of debt issuance costs1,789 2,527 
Stock-based compensation47,024 37,976 
Loss (gain) on disposal of assets and impairment charges6,871 (1,201)
Deferred income taxes23,126 82,721 
Changes in assets and liabilities:
Receivables(12,519)(33,025)
Inventories24,090 (76,730)
Prepaid expenses(4,248)(6,376)
Accounts payable(9,483)165,893 
Accrued expenses20,292 23,574 
Income taxes20,652 (35,716)
Other, net4,535 (14,233)
Net cash provided by operating activities881,951 788,741 
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 equipment17,103 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 equivalents219,991 (177,667)
Cash and cash equivalents at beginning of the period158,878 336,545 
Cash and cash equivalents at end of the period$378,869 $158,878 
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
 Twelve months ended April 30,
 20232022
Cash paid during the period for:
Interest, net of amount capitalized$56,799 $54,499 
Income taxes, net90,398 49,565 
Noncash investing and financing activities:
Purchased property and equipment in accounts payable27,905 46,659 


Summary by Category (Amounts in thousands)
Three months ended April 30, 2023FuelGrocery & General
Merchandise		Prepared Food
& Dispensed Beverage		OtherTotal
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 sold635,916 
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 sold621,118 
 
Summary by Category (Amounts in thousands)
Twelve months ended April 30, 2023FuelGrocery & General
Merchandise		Prepared Food
& Dispensed Beverage		OtherTotal
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 sold2,672,366 
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 sold2,579,179 
Fuel GallonsFuel Margin
Same-store Sales(Cents per gallon, excluding credit card fees)
 Q1Q2Q3Q4Fiscal
Year		 Q1Q2Q3Q4Fiscal
Year
F2023(2.3)%0.3 %(0.5)%0.0 %(0.8)%F202344.7 ¢40.5 ¢40.7 ¢34.6 ¢40.2 ¢
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 
Grocery & General MerchandiseGrocery & General Merchandise
Same-store SalesMargin
 Q1Q2Q3Q4Fiscal
Year		 Q1Q2Q3Q4Fiscal
Year
F20235.5 %6.9 %5.8 %7.1 %6.3 %F202333.9 %33.3 %34.0 %33.0 %33.6 %
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 
Prepared Food & Dispensed BeveragePrepared Food & Dispensed Beverage
Same-store SalesMargin
 Q1Q2Q3Q4Fiscal
Year		 Q1Q2Q3Q4Fiscal
Year
F20238.4 %10.5 %5.0 %4.9 %7.1 %F202355.6 %56.7 %57.3 %56.8 %56.6 %
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 




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,
 2023202220232022
Net income$56,092 $59,777 $446,691 $339,790 
Interest, net12,800 15,291 51,815 56,972 
Depreciation and amortization80,631 77,866 313,131 303,541 
Federal and state income taxes16,500 12,905 140,827 100,938 
EBITDA$166,023 $165,839 $952,464 $801,241 
Loss (gain) on disposal of assets and impairment charges894 (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.
Investor Relations Contact:Media Relations Contact:
Brian Johnson (515) 965-6587Katie Petru (515) 446-6772