Fiscal 2017 marked the 16th consecutive year of positive same-store sales growth for the Iowa convenience chain.
Casey’s General Stores Inc. has reported diluted earnings per share of $0.76 for the fourth quarter of its fiscal year ending April 30, 2017 compared to $1.19 for the same period a year ago. For the year, diluted earnings per share were $4.48 versus $5.73 for the same period last year.
“Despite a challenging operating environment, fiscal 2017 marked the 16th consecutive year of positive same-store sales growth in both the grocery and other merchandise and prepared food and fountain categories,” said Terry Handley, president and CEO. “We also recently opened our first store in the state of Ohio, and now have 116 sites under agreement for new store construction. We are optimistic about our growth opportunities.”
Fuel – The company’s annual goal for fiscal 2017 was to increase same-store gallons sold 2.0% with an average margin of 18.4 cents per gallon. For the year, same-store gallons sold were up 2.1% with an average margin of 18.4 cents per gallon.
Casey’s, based in Ankeny, Iowa, sold 15.5 million renewable fuel credits for $7.1 million in the fourth quarter. For fiscal 2017, total gallons sold were up 5.6% to 2.1 billion. Gross profit dollars for the year were down slightly to $378.3 million, primarily due to a 1.2 cents-per-gallon lower fuel margin partially offset by an increase in gallons sold.
Grocery and Other Merchandise – Casey’s annual goal was to increase same-store sales 6.2% with an average margin of 32.0%. For the year, same-store sales were up 2.9% with an average margin of 31.5%. For the fourth quarter, same-store sales were up 1.5% with an average margin of 31.1%. For the year, total sales were up 5.7% to $2.1 billion and gross profit dollars increased 4.4% to $657.2 million.
Prepared Food and Fountain – Casey’s annual goal was to increase same-store sales 10.2% with an average margin of 62.5%. For the year, same-store sales were up 4.8% with an average margin of 62.3%. For the fourth quarter, same-store sales were up 3.2% with an average margin of 61.7%. For fiscal 2017, total sales increased 8.3% to $953.4 million, and gross profit dollars rose 7.9% at $594.0 million.
Expansion – The company’s annual goal for fiscal 2017 was to build or acquire 77 to 116 stores, replace 35 existing locations, and complete 100 major remodels. For the fiscal year, Casey’s built and opened 48 new stores, acquired 22 stores, completed 21 replacements, and remodeled 103 stores. As of April 30, 2017, there were 27 new stores, 21 replacement stores, and 11 major remodel stores under construction. Finally, at fiscal year-end, Casey’s had 116 sites under agreement for new store construction and five acquisition stores under agreement to purchase.
“Our new store construction activity continues to gain momentum,” said Handley. “The growing pipeline of sites under agreement has the company well positioned for significant increase in organic growth. The company will continue to review acquisitions that are a strategic fit.”
Fiscal 2018 Guidance – The corporate performance guidance for fiscal 2018 includes:
- Increase same-store fuel gallons sold 1%-2% with average margin of 18-20 cents per gallon
- Increase same-store grocery and other merchandise sales 2%-4% with average margin of 31%-32%
- Increase same-store prepared food and fountain sales 5%-7% with average margin of 61.5%-62.5%
- Operating expenses expected to increase 9%-11%
- Depreciation and amortization expected to increase 13%-15%
- Build or acquire 80-120 stores, replace 30 existing locations, and complete 75 major remodels.