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, 2021.
Fourth Quarter 2021 Key Highlights
- Diluted EPS of $1.12.
- Fuel margin of 33.0 cents per gallon. Fuel same-store gallons
sold up 6.4%.
- Inside same-store sales were up 12.8% as inside guest counts
steadily improved. Inside margin improved 100 basis points to 39.9%
as compared to prior year.
Fiscal Year 2021 Key Highlights
- Closed fiscal 2021 with Diluted EPS of $8.38, an all-time
high.
- Casey's generated strong cash flow and ended the year with a
healthy balance sheet.
- Annual digital sales increased 96% compared to prior year with
3.6 million Casey’s Rewards members at fiscal year-end.
- Casey's recently closed on the Buchanan Energy acquisition and
anticipates closing on the previously disclosed Circle K
acquisition in June.
“Casey’s achieved remarkable results throughout the year in one
of the most difficult retail environments of our lifetime," said
Darren Rebelez, President and CEO. “The entire Casey’s team proved
themselves resilient in spite of these challenges, and made
excellent progress on our long-term strategic plan while keeping
our people and communities safe. We have great momentum behind our
digital engagement efforts, our private brand products have
resonated with our guests, our prepared foods business is regaining
traction, and we are in the process of welcoming two large
acquisitions to the Casey's family. We are now poised to emerge
from the pandemic an even stronger company.”
Earnings
Three Months Ended April 30,
Twelve Months Ended April 30,
2021
2020
2021
2020
Net income (in thousands)
$
41,698
$
62,091
$
312,900
$
263,846
Diluted earnings per share
$
1.12
$
1.67
$
8.38
$
7.10
Adjusted EBITDA (in thousands)
$
140,556
$
158,961
$
728,924
$
650,136
Net income, Diluted EPS, and Adjusted EBITDA (reconciled later
in the document) in the fourth quarter were down as compared to the
prior year due primarily to lower fuel margin and higher operating
expenses, partially offset by higher inside gross profit.
Fuel
Three Months Ended April 30,
Twelve Months Ended April 30,
2021
2020
2021
2020
Fuel gallons sold (in thousands)
535,274
487,708
2,180,772
2,293,609
Same-store gallons sold
6.4
%
(14.7
)
%
(8.1
)
%
(5.1
)
%
Fuel gross profit (in thousands)
$
176,664
$
198,803
$
761,247
$
614,847
Fuel margin (cents per gallon, excluding
credit card fees)
33.0
¢
40.8
¢
34.9
¢
26.8
¢
Same-store gallons sold were up significantly in the back half
of the quarter due to the favorable comparison to the start of the
pandemic a year ago. The Company’s overall fuel gross profit was
down 11% primarily due to the unusually high fuel margin achieved
last year via supply and demand shocks from COVID-19 and
macroeconomic conditions in the oil industry. The centralized fuel
team coupled with procurement improvements contributed to the
Company's fuel margin of 33.0 cents per gallon. The Company did not
sell RINs during the fourth quarter, as compared to selling $2.6
million in the prior year.
Inside
Three Months Ended April 30,
Twelve Months Ended April 30,
2021
2020
2021
2020
Inside sales (in thousands)
$
913,364
$
797,933
$
3,811,521
$
3,596,173
Inside same-store sales
12.8
%
(5.6)
%
4.0
%
0.8
%
Grocery and other merchandise same-store
sales increase
12.5
%
(2.0)
%
6.6
%
1.9
%
Prepared food and fountain same-store
sales (decrease) increase
13.4
%
(13.5)
%
(2.1)
%
(1.5)
%
Inside gross profit (in thousands)
$
364,872
$
310,695
$
1,526,262
$
1,468,232
Inside margin
39.9
%
38.9
%
40.0
%
40.8
%
Grocery and other merchandise margin
31.8
%
30.4
%
32.0
%
32.0
%
Prepared food and fountain margin
60.1
%
60.0
%
60.1
%
60.9
%
Inside same-store sales were driven by a resurgence in pizza
slices, dispensed beverage, and bakery as Casey’s began lapping
COVID-19 related traffic disruption. Whole pizza pie sales remained
strong throughout the quarter as well. Inside margins improved
primarily due to strategic sourcing initiatives and previous
merchandise resets, along with a favorable mix shift of private
brands, packaged beverage, and prepared foods.
Operating Expenses
Three Months Ended April 30,
Twelve Months Ended April 30,
2021
2020
2021
2020
Operating expenses (in thousands)
$
426,308
$
367,489
$
1,637,191
$
1,498,043
Credit card fees (in thousands)
$
38,981
$
30,509
$
147,366
$
145,165
Same-store operating expense excluding
credit card fees
6.5
%
0.0
%
3.0
%
2.9
%
Operating expenses for the fourth quarter were up primarily due
to increased store-level operating hours and costs as we lapped
COVID-19 related shutdowns from the same time a year ago. Also
contributing to the increase were $8 million in incremental
incentive compensation expense due to strong financial performance,
higher credit card fees due to the rising retail price of fuel and
increased volume, and operating 36 more stores than this time last
year.
Expansion
Store Count
Stores at April 30, 2020
2,207
New store construction
40
Acquisitions
5
Acquisitions not opened
(3)
Prior acquisitions opened
5
Closed
(11)
Stores at April 30, 2021
2,243
Liquidity
At April 30, the Company had approximately $810 million in
available liquidity, consisting of approximately $335 million in
cash and cash equivalents on hand and $475 million in undrawn
borrowing capacity on existing lines of credit.
Share Repurchase
The Company has $300 million remaining under its existing share
repurchase program which expires in April 2022. There were no
repurchases made against that authorization in the fourth
quarter.
Dividend
At its June meeting, the Board of Directors voted to pay a
quarterly dividend of $0.34 per share. The dividend is payable
August 16, 2021 to shareholders of record on August 2, 2021.
Buchanan Energy
Transaction
On May 13, 2021, Casey's closed on the Buchanan Energy
acquisition. The transaction was financed with a $300 million draw
on a bank term loan and cash. Buchanan Energy is expected to add
approximately $45 million in annual EBITDA contribution in fiscal
2022, but will be dilutive in the first quarter due to the related
transaction costs.
Fiscal 2022 Outlook
Casey's expects to build on the momentum of fiscal 2021,
however, uncertainty remains regarding the timing of recovery from
the COVID-19 pandemic. The Company expects same-store fuel and
inside sales to increase by mid-single digit percentages. Total
operating expenses are expected to increase by mid-teen
percentages, driven primarily by adding approximately 200 units
during fiscal 2022, as well as expenses related to adding back
operating hours to the stores and expected wage pressures.
Depreciation and amortization is expected to be approximately $300
million, interest expense is expected to be approximately $50
million, and the tax rate is expected to be approximately 26.0%.
The Company is also expecting to add approximately $500 million in
property and equipment in the fiscal year, including acquisition
remodels. As a reminder, with the exception of same-store sales,
the estimates in this paragraph include the impact of the Buchanan
Energy and Circle K acquisitions.
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,
2021
2020
2021
2020
Total revenue
$
2,378,236
$
1,812,883
$
8,707,189
$
9,175,296
Cost of goods sold (exclusive of
depreciation and amortization, shown separately below)
1,817,244
1,287,813
6,350,754
7,030,612
Operating expenses
426,308
367,489
1,637,191
1,498,043
Depreciation and amortization
69,897
65,193
265,195
251,174
Interest, net
11,168
13,806
46,679
53,419
Income before income taxes
53,619
78,582
407,370
342,048
Federal and state income taxes
11,921
16,491
94,470
78,202
Net income
$
41,698
$
62,091
$
312,900
$
263,846
Net income per common share
Basic
$
1.12
$
1.68
$
8.44
$
7.14
Diluted
$
1.12
$
1.67
$
8.38
$
7.10
Basic weighted average shares
37,117,504
36,978,032
37,092,273
36,956,115
Plus effect of stock compensation
263,969
229,229
263,865
229,713
Diluted weighted average shares
37,381,473
37,207,261
37,356,138
37,185,828
Casey’s General Stores, Inc.
and Subsidiaries
Condensed Consolidated Balance
Sheets
(Dollars in thousands)
(Unaudited)
April 30, 2021
April 30, 2020
Assets
Current assets
Cash and cash equivalents
$
336,545
$
78,275
Receivables
79,698
48,500
Inventories
286,598
236,007
Prepaid expenses
11,214
9,801
Income taxes receivable
9,578
14,667
Total current assets
723,633
387,250
Other assets, net of amortization
82,147
71,766
Goodwill
161,075
161,075
Property and equipment, net of accumulated
depreciation of $2,206,405 at April 30, 2021 and $2,037,708 at
April 30, 2020
3,493,459
3,323,801
Total assets
$
4,460,314
$
3,943,892
Liabilities and Shareholders’
Equity
Current liabilities
Lines of credit
$
—
$
120,000
Current maturities of long-term debt and
finance lease obligations
2,354
570,280
Accounts payable
355,471
184,800
Accrued expenses
254,924
188,348
Total current liabilities
612,749
1,063,428
Long-term debt and finance lease
obligations, net of current maturities
1,361,395
714,502
Deferred income taxes
439,721
435,598
Deferred compensation
15,094
13,604
Insurance accruals, net of current
portion
26,239
22,862
Other long-term liabilities
72,437
50,693
Total liabilities
2,527,635
2,300,687
Total shareholders’ equity
1,932,679
1,643,205
Total liabilities and shareholders’
equity
$
4,460,314
$
3,943,892
Casey’s General Stores, Inc.
and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Twelve months ended April 30,
2021
2020
Cash flows from operating activities:
Net income
$
312,900
$
263,846
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
265,195
251,174
Amortization of debt issuance costs
1,603
—
Stock-based compensation
31,986
18,129
Loss on disposal of assets and impairment
charges
9,680
3,495
Deferred income taxes
4,123
49,810
Changes in assets and liabilities:
Receivables
(26,278
)
(10,644
)
Inventories
(50,342
)
37,713
Prepaid expenses
(1,413
)
(2,308
)
Accounts payable
166,546
(140,151
)
Accrued expenses
65,497
26,400
Income taxes
5,714
15,783
Other, net
18,877
(8,933
)
Net cash provided by operating
activities
804,088
504,314
Cash flows from investing activities:
Purchase of property and equipment
(441,252
)
(438,977
)
Payments for acquisitions of businesses,
net of cash acquired
(9,356
)
(32,706
)
Proceeds from sales of property and
equipment
6,268
5,041
Net cash used in investing activities
(444,340
)
(466,642
)
Cash flows from financing activities:
Proceeds from long-term debt
650,000
—
Repayments of long-term debt
(571,661
)
(17,476
)
Payments of debt issuance costs
(5,525
)
—
Net (payments) borrowings of short-term
debt
(120,000
)
45,000
Proceeds from exercise of stock
options
1,784
2,958
Payments of cash dividends
(47,971
)
(45,951
)
Tax withholdings on employee share-based
awards
(8,105
)
(7,224
)
Net cash used in financing activities
(101,478
)
(22,693
)
Net increase in cash and cash
equivalents
258,270
14,979
Cash and cash equivalents at beginning of
the period
78,275
63,296
Cash and cash equivalents at end of the
period
$
336,545
$
78,275
SUPPLEMENTAL DISCLOSURES OF
CASH FLOWS INFORMATION
Twelve months ended April 30,
2021
2020
Cash paid during the period for:
Interest, net of amount capitalized
$
48,508
$
54,277
Income taxes, net
80,916
9,364
Noncash investing and financing
activities:
Purchased property and equipment in
accounts payable
9,204
5,328
Noncash additions from adoption of ASC
842
—
22,635
Summary by Category
(Amounts in thousands)
Three months ended April 30,
2021
Fuel
Grocery & Other
Merchandise
Prepared Food &
Fountain
Other
Total
Revenue
$
1,445,119
$
649,822
$
263,542
$
19,753
$
2,378,236
Gross profit
$
176,664
$
206,480
$
158,392
$
19,456
$
560,992
12.2
%
31.8
%
60.1
%
98.5
%
23.6
%
Fuel gallons sold
535,274
Three months ended April 30, 2020
Revenue
$
999,352
$
568,080
$
229,853
$
15,598
$
1,812,883
Gross profit
$
198,803
$
172,862
$
137,833
$
15,572
$
525,070
19.9
%
30.4
%
60.0
%
99.8
%
29.0
%
Fuel gallons sold
487,708
Summary by Category
(Amounts in thousands)
Twelve months ended April 30,
2021
Fuel
Grocery & Other
Merchandise
Prepared Food &
Fountain
Other
Total
Revenue
$
4,825,466
$
2,724,374
$
1,087,147
$
70,202
$
8,707,189
Gross profit
$
761,247
$
872,573
$
653,689
$
68,926
$
2,356,435
15.8
%
32.0
%
60.1
%
98.2
%
27.1
%
Fuel gallons sold
2,180,772
Twelve months ended April 30, 2020
Revenue
$
5,517,412
$
2,498,966
$
1,097,207
$
61,711
$
9,175,296
Gross profit
$
614,847
$
800,140
$
668,092
$
61,605
$
2,144,684
11.1
%
32.0
%
60.9
%
99.8
%
23.4
%
Fuel gallons sold
2,293,609
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
F2021
(14.6
)
%
(8.6
)%
(12.1
)%
6.4
%
(8.1
)%
F2021
38.2
¢
35.3
¢
32.9
¢
33.0
¢
34.9
¢
F2020
(2.0
)
(1.8
)
(2.0
)
(14.7
)
(5.1
)
F2020
24.4
22.9
21.7
40.8
26.8
F2019
0.5
(1.1
)
(3.4
)
(2.8
)
(1.7
)
F2019
20.5
20.0
22.1
18.6
20.3
Grocery & Other
Merchandise
Grocery & Other
Merchandise
Same-store Sales
Margin
Q1
Q2
Q3
Q4
Fiscal Year
Q1
Q2
Q3
Q4
Fiscal Year
F2021
3.6
%
6.6
%
5.4
%
12.5
%
6.6
%
F2021
32.2
%
33.3
%
30.7
%
31.8
%
32.0
%
F2020
3.2
3.2
3.5
(2.0
)
1.9
F2020
31.3
33.3
32.9
30.4
32.0
F2019
3.2
2.7
3.4
5.7
3.6
F2019
32.4
32.4
31.9
31.5
32.1
Prepared Food &
Fountain
Prepared Food &
Fountain
Same-store Sales
Margin
Q1
Q2
Q3
Q4
Fiscal Year
Q1
Q2
Q3
Q4
Fiscal Year
F2021
(9.8
)%
(3.6
)%
(5.0
)%
13.4
%
(2.1
)%
F2021
59.7
%
60.1
%
60.6
%
60.1
%
60.1
%
F2020
1.6
1.9
2.8
(13.5
)
(1.5
)
F2020
62.2
60.9
60.2
60.0
60.9
F2019
1.7
2.2
1.5
2.0
1.9
F2019
62.0
62.4
62.3
62.2
62.2
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, 2021 and 2020:
(In thousands)
Three Months Ended April 30,
Twelve Months Ended April 30,
2021
2020
2021
2020
Net income
$
41,698
$
62,091
$
312,900
$
263,846
Interest, net
11,168
13,806
46,679
53,419
Depreciation and amortization
69,897
65,193
265,195
251,174
Federal and state income taxes
11,921
16,491
94,470
78,202
EBITDA
$
134,684
$
157,581
$
719,244
$
646,641
Loss on disposal of assets and impairment
charges
5,872
1,380
9,680
3,495
Adjusted EBITDA
$
140,556
$
158,961
$
728,924
$
650,136
NOTES:
- Gross Profit or Margin is defined as revenue less cost of goods
sold (exclusive of depreciation and amortization)
- Inside is defined as the combination of Grocery and Other
Merchandise and Prepared Food and Fountain
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 the Buchanan Energy and Circle K acquisition, 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, and the
potential effect of COVID-19. There are a number of known and
unknown risks, uncertainties, and other factors that may cause our
actual results to differ materially from any future results
expressed or implied by those forward-looking statements, including
but not limited to the timing and integration of the foregoing
acquisitions, executing our strategic plan, the impact and duration
of COVID-19 and related governmental actions, 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 9, 2021. The call will be
broadcast live over the Internet at 7:30 a.m. CST. 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/20210608006113/en/
Investor Relations Contact: Brian Johnson (515)
965-6587
Media Relations Contact: Katie Petru (515)
446-6772
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