8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 7, 2009

CASEY’S GENERAL STORES, INC.

(Exact name of registrant as specified in its charter)

Iowa

(State or other jurisdiction of incorporation)

0-12788	42-0935283
(Commission File Number)	(IRS Employer Identification No.)

One Convenience Blvd., Ankeny, Iowa	50021
(Address of principal executive Offices)	(Zip Code)

515/965-6100

(Registrant’s telephone number, including area code)

NONE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CF 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On December 7, 2009, Casey’s General Stores, Inc. (the “Company”) issued a press release announcing its financial results for the second fiscal quarter ended October 31, 2009. A copy of the Company’s press release is attached as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.

The exhibit accompanying this report is listed in the Exhibit Index attached hereto.

SIGNATURE

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	CASEY’S GENERAL STORES, INC.
Date: December 7, 2009	By:	/S/    WILLIAM J. WALLJASPER
		William J. Walljasper
		Senior Vice President and Chief Financial Officer

EXHIBIT INDEX

The following exhibits are filed herewith:

Exhibit	Description
99.1	Press Release of Casey’s General Stores, Inc. dated December 7, 2009

EX-99.1

Exhibit 99.1

NEWS RELEASE FOR IMMEDIATE RELEASE
Casey’s General Stores, Inc. One Convenience Blvd. Ankeny, IA 50021	Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505

Casey’s Second Quarter Earnings Up Nearly 23%

Ankeny, Iowa, December 7, 2009 – Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.66 in basic earnings per share for the second quarter of fiscal 2010 ended October 31, 2009, compared to $0.54 for the same quarter a year ago. Year to date, basic earnings per share were $1.53 versus $1.11 last year. “Strong margins in all three categories resulted in a 22.9% increase in earnings for the second quarter,” said President and CEO Robert J. Myers.

Gasoline – Casey’s annual goal is to increase same-store gallons sold 2% for the year with an average margin of 11 cents per gallon. Gasoline margins continued to be strong at 14.3 cents per gallon for the quarter and 15 cents per gallon year to date. Same-store gallons sold were down 0.7% for the quarter and up 1.2% for the year to date. “Inclement weather impacted our same-store gallons during the quarter,” stated Myers. “However, the retail price environment continues to be responsive to wholesale movements, resulting in a gasoline margin above goal.” Total gallons sold for the six months were up 3.8% to 659.5 million gallons and gross profit increased 6.2% to $98.9 million.

Grocery & Other Merchandise – The annual goal is to increase same-store sales 8.9% with an average margin of 33.9%. Same-store sales for the quarter were up 1.9% with an average margin of 34.1%, up 20 basis points from the second quarter a year ago. Year to date, same-store sales were up 4.1% with an average margin above goal at 34.2%. “Same-store sales in the quarter were affected by poor weather and customers trading down to less-expensive items. Despite these pressures, gross profit for the category is up 7% for the year,” said Myers. Year to date total sales were up 6.3% to $573.5 million.

Prepared Food & Fountain – The Company’s annual goal is to increase same-store sales 7.5% with an average margin of 62%. Same-store sales were up 3.4% for the quarter and 5% year to date. The average margin for the quarter was 64.6%, up over 400 basis points from the same period a year ago. “We were able to increase gross profit over 15% in the quarter primarily due to lower commodity costs and expanded coffee and fountain offerings,” stated Myers. Total sales year to date were up 9.5% to $190 million with an average margin of 64.2%.

Operating Expense – In the second quarter, operating expenses increased 2.8% to $131 million. Moderate increases in wages, utilities, and insurance were partially offset by the savings in transportation costs and credit card fees as a result of lower retail gasoline prices from a year ago. “We anticipate more challenging comparisons in the latter half of the year given a higher gasoline price environment,” stated Myers. “However, we believe gains made in gross profit will more than offset this pressure.” At midyear, expenses were up 1.3%.

Expansion – The goal for fiscal 2010 is to increase the total number of stores 4%. At the mid-year point, the Company had acquired 4 stores and completed 7 new-store constructions. “We are pleased with the recent acquisition environment and have written agreements for an additional 16 locations that are scheduled to close in December,” stated Myers. “These stores are a perfect fit with our business model and we anticipate them being accretive immediately.” The Company also replaced 12 locations through the first six months.

Dividend – At its December meeting, the Board of Directors declared a quarterly dividend of $0.085 per share. The dividend is payable February 15, 2010 to shareholders of record on February 1, 2010.

****

Casey’s General Stores, Inc. Condensed Consolidated Statements of Earnings (Dollars in thousands, except per share amounts) (Unaudited)

	Three months ended October 31,				Six months ended October 31,
	2009		2008		2009		2008
Total revenue	$	1,154,964	$	1,390,511	$	2,342,904	$	2,957,808
Cost of goods sold (exclusive of depreciation and amortization, shown separately below)		948,600		1,199,444		1,916,415		2,567,576
Gross profit		206,364		191,067		426,489		390,232
Operating expenses		131,013		127,391		263,371		260,107
Depreciation and amortization		18,527		17,428		36,478		34,912
Interest, net		2,707		2,414		5,411		4,977
Earnings before income taxes		54,117		43,834		121,229		90,236
Federal and state income taxes		20,525		16,505		43,444		34,122
Net earnings	$	33,592	$	27,329	$	77,785	$	56,114
Earnings per common share
Basic	$	.66	$	.54	$	1.53	$	1.11
Diluted	$	.66	$	.54	$	1.52	$	1.10
Basic weighted average shares outstanding		50,899,179		50,784,545		50,881,379		50,769,270
Plus effect of stock options		155,107		178,666		137,702		139,690
Diluted weighted average shares outstanding		51,054,286		50,963,211		51,019,081		50,908,960

Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

	October 31, 2009		April 30, 2009
Assets
Current assets
Cash and cash equivalents	$	177,951	$	145,695
Receivables		12,111		10,888
Inventories		117,618		106,528
Prepaid expenses		1,775		1,394
Deferred income taxes		8,526		11,895
Income taxes receivable		5,909		8,327
Total current assets		323,890		284,727
Other assets, net of amortization		9,452		8,582
Goodwill		51,576		50,976
Property and equipment, net of accumulated depreciation of $674,473 at October 31, 2009, and of $652,376 at April 30, 2009		957,430		918,410
Total assets	$	1,342,348	$	1,262,695
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt	$	25,911	$	28,442
Accounts payable		141,617		115,436
Accrued expenses		61,278		77,365
Total current liabilities		228,806		221,243
Long-term debt, net of current maturities		157,858		167,887
Deferred income taxes		136,092		125,536
Deferred compensation		11,869		11,085
Other long-term liabilities		15,151		15,914
Total liabilities		549,776		541,665
Total shareholders’ equity		792,572		721,030
Total liabilities and shareholders’ equity	$	1,342,348	$	1,262,695

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.

Sales and Gross Profit by Product

(Amounts in thousands)

Six months ended 10/31/09	Gasoline			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Sales	$	1,569,749		$	573,530		$	190,037		$	9,588		$	2,342,904
Gross profit	$	98,873		$	196,101		$	121,957		$	9,558		$	426,489
Margin		6.3	%		34.2	%		64.2	%		99.7	%		18.2	%
Gasoline gallons		659,521
Six months ended 10/31/08
Sales	$	2,233,065		$	539,693		$	173,538		$	11,512		$	2,957,808
Gross profit	$	93,140		$	183,220		$	105,054		$	8,818		$	390,232
Margin		4.2	%		33.9	%		60.5	%		76.6	%		13.2	%
Gasoline gallons		635,449

Gasoline Gallons											Gasoline Margin
Same-store Sales Growth											(Cents per gallon, excluding credit card fees)
									Fiscal											Fiscal
	Q1		Q2		Q3		Q4		Year			Q1		Q2		Q3		Q4		Year
F2010	3.2	%	-0.7	%							F2010	15.7	¢	14.3	¢
F2009	0.5		0.2		2.1	%	1.2	%	1.0	%	F2009	15.6		13.7		9.9	¢	12.1	¢	12.9	¢
F2008	0.3		-1.6		-3.9		-2.5		-2.0		F2008	15.8		13.6		13.5		12.6		13.9
Grocery & Other Merchandise											Grocery & Other Merchandise
Same-store Sales Growth											Margin
									Fiscal											Fiscal
	Q1		Q2		Q3		Q4		Year			Q1		Q2		Q3		Q4		Year
F2010	6.4	%	1.9	%							F2010	34.3	%	34.1	%
F2009	4.7		4.9		6.5	%	8.0	%	5.9	%	F2009	34.0		33.9		32.9	%	33.7	%	33.7	%
F2008	9.1		11.2		5.4		3.6		7.3		F2008	34.0		33.1		31.9		33.2		33.1
Prepared Food & Fountain											Prepared Food & Fountain
Same-store Sales Growth											Margin
									Fiscal											Fiscal
	Q1		Q2		Q3		Q4		Year			Q1		Q2		Q3		Q4		Year
F2010	6.6	%	3.4	%							F2010	63.8	%	64.6	%
F2009	12.3		9.3		8.1	%	7.2	%	9.1	%	F2009	60.5		60.5		61.8	%	62.7	%	61.4	%
F2008	9.5		10.6		8.4		11.2		9.8		F2008	61.7		63.0		63.6		60.9		62.3

Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during

a conference call on December 8, 2009. The call will be broadcast live over the Internet at 9:30 a.m. CT via the

Investor Relations section of our Web site and will be available in an archived format.