On September 4, 2024, Casey's General Stores Inc (CASY, Financial) released its 8-K filing for the first quarter ended July 31, 2024. Casey's, the nation's third-largest convenience store chain with over 2,600 locations primarily in the Midwest, reported impressive financial results that surpassed analyst expectations.
Company Overview
Casey's General Stores Inc (CASY, Financial) operates more than 2,600 convenience stores, predominantly in rural towns with populations under 5,000. The company generates about two-thirds of its gross profit from in-store sales of grocery items, prepared meals, and general merchandise, while fueling stations serve as a key traffic generator. Casey's owns over 90% of its stores and manages most of its warehousing and distribution processes internally.
Performance Highlights
Casey's reported diluted earnings per share (EPS) of $4.83, a 7% increase from the same period last year, surpassing the analyst estimate of $4.58. Net income rose by 6% to $180 million, and EBITDA increased by 9% to $346 million. These results were driven by strong inside sales and fuel margins, despite higher operating expenses due to the addition of 138 new stores.
Financial Achievements
Inside same-store sales grew by 2.3%, with a total inside gross profit increase of 10.4% to $614.3 million. The inside margin improved to 41.7%, up from 40.6% in the previous year. This growth was fueled by strong performance in prepared food and dispensed beverages, particularly hot sandwiches and bakery items.
Fuel sales also showed positive trends, with same-store gallons sold increasing by 0.7% and total fuel gross profit rising by 5.9% to $314.5 million. The fuel margin stood at 40.7 cents per gallon.
Income Statement and Key Metrics
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Income (in thousands) | $180,198 | $169,237 |
| Diluted EPS | $4.83 | $4.52 |
| EBITDA (in thousands) | $345,782 | $316,899 |
| Inside Sales (in thousands) | $1,474,107 | $1,369,749 |
| Fuel Gallons Sold (in thousands) | 772,536 | 713,991 |
Operational Insights
Operating expenses increased by approximately 9%, primarily due to the addition of new stores and one-time deal costs related to pending acquisitions. Same-store operating expenses, excluding credit card fees, rose by 0.7%, aided by a 2% reduction in same-store labor hours.
Liquidity and Share Repurchase
As of July 31, 2024, Casey's had approximately $1.2 billion in available liquidity, including $305 million in cash and cash equivalents and $900 million in available borrowing capacity. The company did not repurchase any shares during the first quarter and has $295 million remaining under its existing share repurchase authorization.
Dividend and Outlook
The Board of Directors approved a quarterly dividend of $0.50 per share, payable on November 15, 2024. Casey's expects to close the acquisition of Fikes Wholesale, Inc., adding 198 CEFCO convenience stores to its portfolio. The company anticipates store growth of approximately 270 units in fiscal 2025.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Casey's General Stores Inc for further details.
