For the year, the publicly traded retailer built and opened 85 new stores, acquired 26 stores, completed 30 replacements and remodeled 74 stores.
Casey’s General Stores Inc. today reported diluted earnings per share of $8.34 (inclusive of the one-time impact of $4.53 per share related to the adoption of the Tax Cuts and Jobs Act) for the year ended April 30, 2018 compared to $4.48 for the same period last year, according to a company release.
For the fourth quarter of fiscal 2018, diluted earnings per share were $0.51 versus $0.76 for the same period a year ago.
“A suppressed fuel margin and challenging weather had an adverse impact on fourth quarter results, however we believe we are taking market share in most categories,” said Terry Handley, president and CEO. “The 53 new stores we opened in the fourth quarter, combined with increased promotional activity and normalized weather throughout our region has us off to an encouraging start to fiscal 2019.”
Casey’s, based in Ankeny, Iowa, reported it has completed or made progress on the following value creation plan activities:
- Hired a chief marketing officer.
- Completed the initial $300 million share repurchase authorization.
- Increased quarterly dividend 12%, which represents the 18th straight year of increases.
- Finalized a contract with a partner for its fleet card program.
- Enhancing fuel margin through product optimization.
- Identified platforms for fuel and inside price optimization.
- Completed startup and design phase of digital transformation.
- Streamlined current mobile app and online ordering capabilities.
- Generating store level profit improvements from strategic reductions of 24-hour pizza and pizza delivery locations.
BREAKING IT DOWN
For the year, same-store gallons sold at Casey’s locations were up 2.3%, with an average margin of 18.5 cents per gallon. For the quarter, same-store gallons increased 2% with an average margin of 16.3 cents per gallon.
During the period, same-store sales rose 1.9%, with an average margin of 31.8%. For the fourth quarter, same-store sales dipped 0.4%, with an average margin of 31.2%.
For the year, same-store sales were up 1.7% with an average margin of 61.0%. For the fourth quarter, same-store sales were down 1.3% with an average margin of 59.7%. “We strategically reduced the number of pizza delivery nights across our chain in the fourth quarter,” said Handley. “The combination of weather and the 24-hour and pizza delivery adjustments negatively impacted same-store sales. However, the decrease in overall hours at these stores positively impacted store level profits through the reduction in operating expense.”
Also for the fiscal year, operating expenses increased 9.4% to $1.3 billion. For the fourth quarter, operating expenses were up 7.9% from the same time period a year ago.
Regarding its store operations, Casey’s built and opened 85 new stores, acquired 26 stores, completed 30 replacements, and remodeled 74 stores. As of April 30, 2018, there were 31 new stores, four replacement stores and three major remodel stores under construction.