ANKENY, Iowa -- Casey's General Stores Inc. has reported 22 cents in earnings per share from continuing operations for the third quarter of fiscal 2007 ended Jan. 31, 2007, compared with 15 cents for the same quarter a year ago. Year to date, earnings from continuing operations were 90 cents per share compared with $1.03 for the same period of fiscal 2006.
President and CEO Robert J. Myers said, The quarter's strong earnings were driven by double-digit total sales increases in every business category. Our total inside gross profit was up 16.1%.
For gasoline, Casey's annual goal is to increase same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon. Benefiting from a relatively mild winter, Myers said, we posted a 4% gain in same-store gallons sold in the third quarter and a 14.6% increase in total gallons sold.
Year to date, the same-store gallons sold were up 1.1% and the total gallons sold increase was 8.5%. The company's average gasoline margin was 10.5 cents per gallon for the quarter and 9.9 cents for the year to date.
For grocery and other merchandise, the company's annual goal is to increase same-store sales 3.9% with an average margin of 32.2%. Due to increased proficiencies in the use of point-of-sale data, we were able to achieve strong sales growth in the quarter, resulting in a gross profit gain of 13.4%, said Myers. Same-store sales were up 6.7% for the quarter and 3.9% for the year to date. Total sales for the quarter increased 15.3% with an average margin of 30.8% and were up 10.2% for the nine months with an average margin of 31.9%.
For prepared food and fountain, the annual goal is to increase same-store sales 7.9% with an average margin of 63.4%. Myers said, We drove sales in the third quarter by continuing to benefit from our expanded fountain program, making strategic price increases, and enhancing point-of-sale capabilities.
Same-store sales increased 11.9% for both the third quarter and the year to date. The quarter's total sales were up 19.2%, and the nine months' sales were up 17.7%. The average margin for the quarter was 62.1%; for the year to date it was 62.2%. Myers described the impact on the category's gross profit: It was up a healthy 18.3% for the quarter and up 14.8% for the nine months.
For operating expenses, Casey's has the ongoing annual goal of holding the percentage increase in operating expenses to less than the percentage increase in gross profit. Operating expenses are somewhat challenging in a volatile gasoline market due to the effect of higher fees because of the size and volume of credit card charges, said Myers. Our emphasis is on driving gross profit dollars.
In the third quarter, total gross profit increased 18.6% to $139.8 million while operating expenses increased 14.7%. For the year to date, the increase in gross profit was 7% to $431 million and operating expenses increased 11.9%.
And for expansion, the company's goal for fiscal 2007 is to acquire 50 stores and build 10 new stores. At the nine-month mark, Casey's had acquired 47 stores and built eight stores. Myers said, The integration of the 33 HandiMart stores we acquired in early October is going very well, and the acquisition environment continues to be favorable.
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