CASY Caseys General Stores Inc

Casey’s General Stores, Inc., ("Casey's" or the "Company") (NASDAQ: 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, 2024.

Fourth Quarter 2024 Key Highlights1

• Diluted EPS of $2.34, up 57% from the same period a year ago. Net income was $87 million, up 55%, and EBITDA2 was $219 million, up 32%, from the same period a year ago.
• Inside same-store sales up 5.6% compared to the prior year, and 12.4% on a two-year stack basis, with an inside margin of 41.2%. Total inside gross profit increased 16.2% to $517.6 million compared to the prior year.
• Fuel same-store gallons were up 0.9% compared to the prior year with a fuel margin of 36.5 cents per gallon. Total fuel gross profit increased 15.4% to $253.6 million compared to the prior year.
• In June, Casey's increased the quarterly dividend 16% to $0.50 per share, marking the 25th consecutive annual increase.

Fiscal Year 2024 Key Highlights

• Diluted EPS of $13.43 up 13% over the prior year. Net income was $502 million, up 12%, and EBITDA was $1.06 billion, up 11%, from the prior year.
• Casey's Rewards members grew to 7.9 million by year-end.
• The Company built or acquired 154 stores in the fiscal year, ending at 2,658 stores and entered Texas, its 17th state.
• Casey's recorded strong prepared food and dispensed beverage growth driven by innovation including thin crust pizza and a refreshed lunch sandwich menu.

“Casey's started its three-year strategic plan with a record fiscal year, exceeding $1 billion in EBITDA for the first time in the company's history," said Darren Rebelez, President and CEO. “Inside same-store sales were outstanding, up 4.4%, or 11.2% on a two-year stack basis, led by strong performance in pizza and bakery as well as alcoholic and non-alcoholic beverages. Strong sales growth was accomplished while improving inside margin. Our fuel team achieved market share gains while striking the right balance between fuel gallon growth and gross profit margin throughout the year to drive fuel gross profit up 3.9% from the prior year. The operations team did a tremendous job driving sales growth, while integrating new stores and reducing same-store labor hours for the eighth consecutive quarter.”

Earnings

 

Three Months Ended April 30,

 

Twelve Months Ended April 30,

 

2024

 

2023

 

2024

 

2023

Net income (in thousands)

$

87,020

 

$

56,092

 

$

501,972

 

$

446,691

Diluted earnings per share

$

2.34

 

$

1.49

 

$

13.43

 

$

11.91

EBITDA (in thousands)

$

219,026

 

$

166,023

 

$

1,059,398

 

$

952,464

Fourth quarter net income, diluted EPS, and EBITDA were up versus the same period the prior year primarily due to higher inside and higher fuel gross profit partially offset by higher operating expense due to operating 137 additional stores.

______________________

1 During the quarter Casey's had one additional operating day due to the leap year. This impacted same-store and total results for the quarter by approximately 100 basis points. The impact for the full year was approximately 25 basis points.

2 EBITDA is reconciled to net income below.

Inside

 

Three Months Ended April 30,

Twelve Months Ended April 30,

 

2024

 

2023

2024

 

2023

Inside sales (in thousands)

$

1,257,375

 

 

$

1,124,060

 

$

5,188,994

 

 

$

4,768,337

 

Inside same-store sales

 

5.6

%

 

 

6.5

%

 

4.4

%

 

 

6.5

%

Grocery and general merchandise same-store sales

 

4.3

%

 

 

7.1

%

 

3.5

%

 

 

6.3

%

Prepared food and dispensed beverage same-store sales

 

8.8

%

 

 

4.9

%

 

6.8

%

 

 

7.1

%

Inside gross profit (in thousands)

$

517,613

 

 

$

445,549

 

$

2,128,822

 

 

$

1,904,856

 

Inside margin

 

41.2

%

 

 

39.6

%

 

41.0

%

 

 

39.9

%

Grocery and general merchandise margin

 

34.4

%

 

 

33.0

%

 

34.1

%

 

 

33.6

%

Prepared food and dispensed beverage margin

 

58.1

%

 

 

56.8

%

 

58.7

%

 

 

56.6

%

For the quarter, total inside sales were up 11.9% for the quarter and total inside gross profit was up 16.2%. Inside same-store sales were up 5.6%, or 12.4% on a two-year stack basis, driven by strong performance in hot sandwiches and dispensed beverage in the prepared food and dispensed beverage category as well as non-alcoholic and alcoholic beverages in the grocery and general merchandise category. Inside margin was up 160 basis points for the quarter primarily due to mix shift, modest retail price adjustments and strong cost of goods management.

Fuel3

 

Three Months Ended April 30,

 

Twelve Months Ended April 30,

 

2024

 

2023

 

2024

 

2023

Fuel gallons sold (in thousands)

 

694,989

 

 

 

635,916

 

 

 

2,828,669

 

 

 

2,672,366

 

Same-store gallons sold

 

0.9

%

 

 

0.0

%

 

 

0.1

%

 

 

(0.8

)%

Fuel gross profit (in thousands)

$

253,612

 

 

$

219,746

 

 

$

1,116,671

 

 

$

1,074,913

 

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

36.5 ¢

 

34.6 ¢

 

39.5 ¢

 

40.2 ¢

For the quarter, total fuel gallons sold increased 9.3% compared to the prior year primarily due to operating more stores, while same-store gallons sold were up 0.9% versus the prior year. Fuel gross profit was up 15.4% versus the prior year. The Company sold $1.0 million in renewable fuel credits (RINs) in the fourth quarter, while the company did not sell any RINs in the same period last year.

Operating Expenses

 

Three Months Ended April 30,

Twelve Months Ended April 30,

 

2024

 

2023

2024

 

2023

Operating expenses (in thousands)

$

579,047

 

 

$

521,729

 

$

2,288,513

 

 

$

2,119,942

 

Credit card fees (in thousands)

$

53,539

 

 

$

51,287

 

$

229,418

 

 

$

233,014

 

Same-store operating expense excluding credit card fees

 

2.6

%

 

 

2.7

%

 

2.7

%

 

 

2.8

%

Total operating expenses increased 11% for the fourth quarter. Approximately 6% of the increase is due to operating 137 more stores than a year ago. Approximately 2% of the increase was due to same-store employee expense. Approximately 1% of the change is related to an increase in accrued costs for incentive compensation due to strong financial performance. Finally, approximately 1% of the increase was due to discretionary charitable giving and a special team member bonus.

_________________________

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

Expansion

 

Store Count

April 30, 2023

2,521

 

New store construction

42

 

Acquisitions

112

 

Acquisitions not opened

(1

)

Prior acquisitions opened

6

 

Closed

(22

)

April 30, 2024

2,658

 

Liquidity

At April 30, 2024, the Company had approximately $1.1 billion in available liquidity, consisting of approximately $206 million in cash and cash equivalents on hand and $900 million in undrawn borrowing capacity on existing lines of credit.

Share Repurchase

During the fourth quarter, the Company repurchased approximately $15 million of shares bringing the total for the year to $105 million. The Company has approximately $295 million remaining under its existing share repurchase authorization.

Dividend

At its June meeting, the Board of Directors voted to increase the quarterly dividend by 16% to $0.50 per share, which is the 25th consecutive year increasing the dividend. The dividend is payable August 15, 2024, to shareholders of record on August 1, 2024.

Fiscal 2025 Outlook

Casey's expects the following performance during fiscal 2025. The Company expects EBITDA to increase at least 8%. The Company expects inside same-store sales to increase 3% to 5% and inside margin comparable to fiscal 2024. The Company expects same-store fuel gallons sold to be between negative 1% to positive 1%. Total operating expenses are expected to increase approximately 6% to 8%. The Company expects to add at least 100 stores in fiscal 2025 through a mix of M&A and new store construction. Net interest expense is expected to be approximately $56 million. Depreciation and amortization is expected to be approximately $390 million and the purchase of property and equipment is expected to be approximately $575 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

(Amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

Three Months Ended April 30,

Twelve Months Ended April 30,

 

2024

 

2023

2024

 

2023

Total revenue

$

3,600,015

 

$

3,328,701

$

14,862,913

 

$

15,094,475

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

 

2,801,942

 

 

2,640,949

 

11,515,002

 

 

12,022,069

Operating expenses

 

579,047

 

 

521,729

 

2,288,513

 

 

2,119,942

Depreciation and amortization

 

92,344

 

 

80,631

 

349,797

 

 

313,131

Interest, net

 

14,494

 

 

12,800

 

53,441

 

 

51,815

Income before income taxes

 

112,188

 

 

72,592

 

656,160

 

 

587,518

Federal and state income taxes

 

25,168

 

 

16,500

 

154,188

 

 

140,827

Net income

$

87,020

 

$

56,092

$

501,972

 

$

446,691

Net income per common share

 

 

 

 

 

 

Basic

$

2.35

 

$

1.50

$

13.51

 

$

11.99

Diluted

$

2.34

 

$

1.49

$

13.43

 

$

11.91

Basic weighted average shares

 

37,025,986

 

 

37,283,677

 

37,164,022

 

 

37,266,851

Plus effect of stock compensation

 

233,993

 

 

290,000

 

206,284

 

 

252,844

Diluted weighted average shares

 

37,259,979

 

 

37,573,677

 

37,370,306

 

 

37,519,695

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

 

April 30, 2024

 

April 30, 2023

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

206,482

 

$

378,869

Receivables

 

151,793

 

 

120,547

Inventories

 

428,722

 

 

376,085

Prepaid expenses

 

25,791

 

 

22,107

Income taxes receivable

 

17,066

 

 

23,347

Total current assets

 

829,854

 

 

920,955

Other assets, net of amortization

 

195,559

 

 

192,153

Goodwill

 

652,663

 

 

615,342

Property and equipment, net of accumulated depreciation of $2,883,925 at April 30, 2024 and $2,620,149 at April 30, 2023

 

4,669,357

 

 

4,214,820

Total assets

$

6,347,433

 

$

5,943,270

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities

 

 

 

Current maturities of long-term debt and finance lease obligations

$

53,181

 

$

52,861

Accounts payable

 

569,527

 

 

560,546

Accrued expenses

 

330,758

 

 

313,718

Total current liabilities

 

953,466

 

 

927,125

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

 

1,582,758

 

 

1,620,513

Deferred income taxes

 

596,850

 

 

543,598

Insurance accruals, net of current portion

 

30,046

 

 

32,312

Other long-term liabilities

 

168,932

 

 

159,056

Total liabilities

 

3,332,052

 

 

3,282,604

Total shareholders’ equity

 

3,015,381

 

 

2,660,666

Total liabilities and shareholders’ equity

$

6,347,433

 

$

5,943,270

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

 

 

Twelve months ended April 30,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net income

$

501,972

 

 

$

446,691

 

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

 

 

 

Depreciation and amortization

 

349,797

 

 

 

313,131

 

Amortization of debt issuance costs

 

1,111

 

 

 

1,789

 

Change in excess replacement cost over LIFO inventory valuation

 

12,499

 

 

 

24,231

 

Share-based compensation

 

41,379

 

 

 

47,024

 

Loss on disposal of assets and impairment charges

 

6,414

 

 

 

6,871

 

Deferred income taxes

 

53,252

 

 

 

23,126

 

Changes in assets and liabilities:

 

 

 

Receivables

 

(31,246

)

 

 

(12,519

)

Inventories

 

(51,785

)

 

 

(141

)

Prepaid expenses

 

(3,684

)

 

 

(4,248

)

Accounts payable

 

(8,731

)

 

 

(9,483

)

Accrued expenses

 

14,387

 

 

 

20,292

 

Income taxes

 

5,112

 

 

 

20,652

 

Other, net

 

2,476

 

 

 

4,535

 

Net cash provided by operating activities

 

892,953

 

 

 

881,951

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

 

(522,004

)

 

 

(476,568

)

Payments for acquisitions of businesses, net of cash acquired

 

(330,032

)

 

 

(85,569

)

Proceeds from sales of property and equipment

 

26,680

 

 

 

17,103

 

Net cash used in investing activities

 

(825,356

)

 

 

(545,034

)

Cash flows from financing activities:

 

 

 

Repayments of long-term debt

 

(53,656

)

 

 

(40,970

)

Payments of debt issuance costs

 

—

 

 

 

(3,940

)

Payments of cash dividends

 

(62,918

)

 

 

(55,617

)

Repurchase of common stock

 

(104,898

)

 

 

—

 

Tax withholdings on employee share-based awards

 

(18,512

)

 

 

(16,399

)

Net cash used in financing activities

 

(239,984

)

 

 

(116,926

)

Net (decrease) increase in cash and cash equivalents

 

(172,387

)

 

219,991

 

Cash and cash equivalents at beginning of the period

 

378,869

 

 

158,878

 

Cash and cash equivalents at end of the period

$

206,482

 

$

378,869

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION

 

Twelve months ended April 30,

 

2024

 

2023

Cash paid during the period for:

 

 

 

Interest, net of amount capitalized

$

63,449

 

 

$

56,799

 

Income taxes, net

 

105,000

 

 

 

90,398

 

Noncash investing and financing activities:

 

 

 

Purchased property and equipment in accounts payable

 

45,617

 

 

27,905

Summary by Category (Amounts in thousands)

Three months ended April 30, 2024

Prepared Food

& Dispensed Beverage

 

Grocery & General Merchandise

 

Fuel

 

Other

 

Total

Revenue

$

356,895

 

 

$

900,480

 

 

$

2,276,586

 

 

$

66,054

 

 

$

3,600,015

 

Gross profit

$

207,443

 

 

$

310,170

 

 

$

253,612

 

 

$

26,848

 

 

$

798,073

 

 

 

58.1

%

 

 

34.4

%

 

 

11.1

%

 

 

40.6

%

 

 

22.2

%

Fuel gallons sold

 

 

 

 

 

694,989

 

 

 

 

 

Three months ended April 30, 2023

 

 

 

 

 

 

 

 

 

Revenue

$

314,222

 

 

$

809,838

 

 

$

2,137,815

 

 

$

66,826

 

 

$

3,328,701

 

Gross profit

$

178,580

 

 

$

266,969

 

 

$

219,746

 

 

$

22,457

 

 

$

687,752

 

 

 

56.8

%

 

 

33.0

%

 

 

10.3

%

 

 

33.6

%

 

 

20.7

%

Fuel gallons sold

 

 

 

 

 

635,916

 

 

 

 

 

Summary by Category (Amounts in thousands)

Twelve months ended April 30, 2024

Prepared Food & Dispensed Beverage

Grocery & General Merchandise

 

Fuel

 

Other

 

Total

Revenue

$

1,461,600

 

$

3,727,394

 

 

$

9,402,071

 

 

$

271,848

 

 

$

14,862,913

 

Gross profit

$

858,295

 

$

1,270,527

 

 

$

1,116,671

 

 

$

102,418

 

 

$

3,347,911

 

 

 

58.7

%

 

34.1

%

 

 

11.9

%

 

 

37.7

%

 

 

22.5

%

Fuel gallons sold

 

 

 

 

2,828,669

 

 

 

 

 

Twelve months ended April 30, 2023

 

 

 

 

 

 

 

 

Revenue

$

1,322,560

 

$

3,445,777

 

 

$

10,027,310

 

 

$

298,828

 

 

$

15,094,475

 

Gross profit

$

748,405

 

$

1,156,451

 

 

$

1,074,913

 

 

$

92,637

 

 

$

3,072,406

 

 

 

56.6

%

 

33.6

%

 

 

10.7

%

 

 

31.0

%

 

 

20.4

%

Fuel gallons sold

 

 

 

 

2,672,366

 

 

 

 

 

Prepared Food & Dispensed Beverage

 

Prepared Food & Dispensed Beverage

Same-store Sales

Margin

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal Year

F2024

5.9

%

 

6.1

%

 

7.5

%

 

8.8

%

 

6.8

%

F2024

58.2

%

 

59.0

%

 

59.6

%

 

58.1

%

 

58.7

%

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

 

Grocery & General Merchandise

 

Grocery & General Merchandise

Same-store Sales

Margin

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Fiscal Year

F2024

5.2

%

 

1.7

%

 

2.8

%

 

4.3

%

 

3.5

%

F2024

34.1

%

 

34.0

%

 

33.9

%

 

34.4

%

 

34.1

%

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

 

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

F2024

0.4

%

 

—

%

 

(0.4

)%

 

0.9

%

 

0.1

%

F2024

41.6

¢

 

42.3

¢

 

37.3

¢

 

36.5

¢

 

39.5

¢

F2023

(2.3

)

 

0.3

 

 

(0.5

)

 

—

 

 

(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

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, 2024 and 2023:

(In thousands)

Three Months Ended April 30,

 

Twelve Months Ended April 30,

 

2024

 

2023

 

2024

 

2023

Net income

$

87,020

 

$

56,092

 

$

501,972

 

$

446,691

Interest, net

 

14,494

 

 

12,800

 

 

53,441

 

 

51,815

Depreciation and amortization

 

92,344

 

 

80,631

 

 

349,797

 

 

313,131

Federal and state income taxes

 

25,168

 

 

16,500

 

 

154,188

 

 

140,827

EBITDA

$

219,026

 

$

166,023

 

$

1,059,398

 

$

952,464

Loss on disposal of assets and impairment charges

 

5,522

 

 

894

 

 

6,414

 

 

6,871

Adjusted EBITDA

$

224,548

 

$

166,917

 

$

1,065,812

 

$

959,335

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 12, 2024. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240611668192/en/

Investor Relations Contact: Brian Johnson (515) 446-6587

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