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 9, 2013
CASEYS GENERAL STORES, INC.
(Exact name of registrant as specified in its charter)
Iowa | 001-34700 | 42-0935283 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
One Convenience Blvd., Ankeny, Iowa | 50021 | |
(Address of principal executive Offices) | (Zip Code) |
515/965-6100
(Registrants 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 9, 2013, Caseys General Stores, Inc. (the Company) issued a press release announcing its financial results for the second fiscal quarter ended October 31, 2013. A copy of the Companys press release is attached as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
The exhibits accompanying this report are listed in the Exhibit Index attached hereto.
SIGNATURE
Pursuant to the requirements 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.
CASEYS GENERAL STORES, INC. | ||||||
Date: December 9, 2013 | By: | /s/ William J. Walljasper | ||||
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William J. Walljasper | ||||||
Senior Vice President and Chief Financial Officer |
EXHIBIT INDEX
The following exhibits are filed herewith:
Exhibit No. |
Description | |
99.1 | Press Release issued by Caseys General Stores, Inc., dated December 9, 2013. |
Exhibit 99.1
NEWS RELEASE FOR IMMEDIATE RELEASE |
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Caseys General Stores, Inc. One Convenience Blvd. Ankeny, IA 50021 |
Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505 |
Caseys Earnings Up Over 24%
Ankeny, IA, December 9, 2013Caseys General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.06 for the second quarter of fiscal 2014 ended October 31, 2013, compared to $0.85 for the same quarter a year ago. Year to date, diluted earnings per share were $2.50 compared to $1.86 a year ago. For the second quarter, total inside sales were up 15.5%, and total gasoline gallons sold increased 9.8% compared to the same quarter a year ago, said Chairman and CEO Robert J. Myers. The Company is pleased with the growth and customer count lift associated with the various initiatives we have put in place.
GasolineThe goal for fiscal 2014 is to increase same-store gallons sold 1.5% with an average margin of 15 cents per gallon. For the second quarter, same-store gallons sold were up 4.2% with an average margin of 16.7 cents per gallon. The Company sold 11.7 million renewable fuel credits for $7.6 million in the second quarter, which enabled us to exceed our gas margin goal, stated Myers. The fuel saver program implemented in December 2012 continues to drive new customers to our stores which was the primary reason we significantly exceeded our sales goal this quarter. Total gallons sold for the year were up 9% with an average margin of 19.4 cents per gallon. Year-to-date same-store gallons were up 3.6%.
Grocery and Other MerchandiseThe Companys annual goal is to increase same-store sales 5% with an average margin of 32.3%. For the quarter, same-store sales were up 10.2% with an average margin of 32.3%. The Company experienced strong lifts in beer and beverage sales, and believe we have gained significant market share with our cigarette retail price adjustments made last fiscal year, said Myers. Although the cigarette adjustments adversely impacted our margin compared to the same quarter a year ago, we were still able to increase gross profit 11.1%. For the six months ended October 31, 2013, same-store sales were up 8% with an average margin of 32.5%. Total sales for the year were up 12.2% and gross profit increased 9.2% to $273.1 million.
Prepared Food and FountainCaseys annual goal is to increase same-store sales 9% with an average margin of 62%. For the second quarter, same-store sales were up 12.3% with an average margin of 61.8%. Our prepared food sales continue to benefit from various growth initiatives such as 24-hour expansion, pizza delivery, and major remodels, said Myers. The margin is slightly below goal due to increased input costs such as meat and supplies. Total sales for the category were up 16.9% year to date, and gross profit increased 14.7% to $208.9 million.
Operating ExpensesYear to date, operating expenses increased 14% to $433 million. For the second quarter, operating expenses were up 13.9% to $217 million. The various growth initiatives being implemented, including new store construction, acquisition and replacement activity, are the primary reasons for the lift in operating expenses, said Myers. Store level operating expenses for locations that have not been impacted by the initiatives were up 4.9% for the quarter.
ExpansionThe annual goal is to build or acquire 70 to 105 (4 6%) stores and replace 20 existing locations. Through the first six months, the Company has built 14 new stores and acquired an additional 22. The Company also completed 14 replacement stores as well as 19 major remodels. We are pleased with the pace of our new store construction and replacement efforts, and continue to have active dialogue with multiple acquisition candidates, stated Myers. As we look ahead to the second half of fiscal 2014, we believe there will be ample opportunities to grow our business in both new and existing markets. The Company currently has 34 new stores and 14 replacement stores under construction, as well as five stores under written agreement to acquire.
DividendAt its December meeting, the Board of Directors declared a quarterly dividend of $0.18 per share. The dividend is payable February 17, 2014 to shareholders of record on February 3, 2014.
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Caseys General Stores, Inc. 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, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Total revenue |
$ | 2,015,885 | 1,911,644 | $ | 4,130,634 | 3,779,946 | ||||||||||
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) |
1,693,584 | 1,632,331 | 3,462,823 | 3,213,659 | ||||||||||||
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Gross profit |
322,301 | 279,313 | 667,811 | 566,287 | ||||||||||||
Operating expenses |
216,529 | 190,040 | 432,503 | 379,439 | ||||||||||||
Depreciation and amortization |
32,416 | 27,148 | 62,917 | 53,684 | ||||||||||||
Interest, net |
9,748 | 8,637 | 19,204 | 17,541 | ||||||||||||
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Income before income taxes |
63,608 | 53,488 | 153,187 | 115,623 | ||||||||||||
Federal and state income taxes |
22,289 | 20,629 | 56,158 | 43,733 | ||||||||||||
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Net Income |
$ | 41,319 | 32,859 | $ | 97,029 | 71,890 | ||||||||||
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Net income per common share |
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Basic |
$ | 1.07 | .86 | $ | 2.53 | 1.88 | ||||||||||
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Diluted |
$ | 1.06 | .85 | $ | 2.50 | 1.86 | ||||||||||
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Basic weighted average shares |
38,455,216 | 38,304,840 | 38,424,146 | 38,264,724 | ||||||||||||
Plus effect of stock compensation |
432,697 | 353,690 | 408,634 | 354,434 | ||||||||||||
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Diluted weighted average shares |
38,887,913 | 38,658,530 | 38,832,780 | 38,619,158 | ||||||||||||
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Caseys General Stores, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
October 31, | April 30, | |||||||
2013 | 2013 | |||||||
Assets |
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Current assets |
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Cash and cash equivalents |
$ | 113,268 | $ | 41,271 | ||||
Receivables |
25,556 | 20,900 | ||||||
Inventories |
199,802 | 189,514 | ||||||
Prepaid expenses |
2,195 | 1,396 | ||||||
Deferred income taxes |
11,891 | 9,916 | ||||||
Income tax receivable |
| 9,820 | ||||||
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Total current assets |
352,712 | 272,817 | ||||||
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Other assets, net of amortization |
15,169 | 14,485 | ||||||
Goodwill |
119,756 | 114,791 | ||||||
Property and equipment, net of accumulated depreciation of $1,002,366 at October 31, 2013, and of $952,286 at April 30, 2013 |
1,698,698 | 1,581,925 | ||||||
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Total assets |
$ | 2,186,335 | $ | 1,984,018 | ||||
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Liabilities and Shareholders Equity |
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Current liabilities |
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Notes payable to bank |
$ | | $ | 59,100 | ||||
Current maturities of long-term debt |
8,315 | 15,810 | ||||||
Accounts payable |
230,286 | 232,913 | ||||||
Accrued expenses |
102,931 | 89,925 | ||||||
Income taxes payable |
1,469 | | ||||||
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Total current liabilities |
343,001 | 397,748 | ||||||
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Long-term debt, net of current maturities |
803,820 | 653,081 | ||||||
Deferred income taxes |
306,885 | 293,708 | ||||||
Deferred compensation |
16,257 | 15,787 | ||||||
Other long-term liabilities |
24,224 | 21,399 | ||||||
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Total liabilities |
1,494,187 | 1,381,723 | ||||||
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Total shareholders equity |
692,148 | 602,295 | ||||||
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Total liabilities and shareholders equity |
$ | 2,186,335 | $ | 1,984,018 | ||||
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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. Caseys 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 10/31/13 |
Gasoline | Grocery & Other Merchandise |
Prepared Food & Fountain |
Other | Total | |||||||||||||||
Sales |
$ | 2,931,854 | $ | 840,137 | $ | 337,999 | $ | 20,644 | $ | 4,130,634 | ||||||||||
Gross profit |
$ | 165,149 | $ | 273,119 | $ | 208,925 | $ | 20,618 | $ | 667,811 | ||||||||||
Margin |
5.6 | % | 32.5 | % | 61.8 | % | 99.9 | % | 16.2 | % | ||||||||||
Gasoline gallons |
850,444 | |||||||||||||||||||
Six months ended 10/31/12 |
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Sales |
$ | 2,724,146 | $ | 748,791 | $ | 289,248 | $ | 17,761 | $ | 3,779,946 | ||||||||||
Gross profit |
$ | 116,429 | $ | 250,040 | $ | 182,080 | $ | 17,738 | $ | 566,287 | ||||||||||
Margin |
4.3 | % | 33.4 | % | 62.9 | % | 99.9 | % | 15.0 | % | ||||||||||
Gasoline gallons |
780,268 |
Corporate information is available at this Web site: http://www.caseys.com. Earnings will be reported during
a conference call on December 10, 2013. The call will be broadcast live over the Internet at 9:30 a.m. CST via the
Investor Relations section of our Web site and will be available in an archived format.