ANKENY, Iowa -- Casey's General Stores Inc. has reported an all-time high in earnings for the first quarter of fiscal 2008 ended July 31, 2007. Earnings per share from continuing operations were up over 73% to 59 cents compared with 34 cents for the first quarter of fiscal 2007. Total sales were up 16.8% to $1.3 billion, and gross profit rose 29.5% to $188.2 million.
The record first quarter gave us a solid foundation for meeting our annual performance goals, said president and CEO Robert J. Myers.
The company's fiscal 2008 goal [image-nocss] is to increase same-store gasoline gallons sold 2% with an average margin of 10.7 cents per gallon. Same-store gallons sold were up 0.3% compared with a 2.9% decrease for the same quarter a year ago. The average margin was a quarterly high 15.8 cents per gallon versus 9.8 cents. Total gallons sold rose to 313.4 million from 290.6 million; gross profit was $49.5 million compared with $28.5 million.
The unusually high margin was due to the combination of a more stable retail pricing environment and a declining trend in wholesale costs, said Myers. Gallons sold were held in check by higher retail prices, especially in the first half of the quarter. Fortunately, the gasoline prices did not slow our inside sales.
For grocery and other merchandise, the goal is to increase same-store sales 4.3% with an average margin of 32.2%. Same-store sales were up 9.1% compared with a 2.3% increase for the first three months of fiscal 2007. The average margin was up 170 basis points to 34%. Total sales rose 15.4% to $259.8 million; gross profit grew 21.6% to $88.3 million.
We achieved strong sales throughout the category, and we are particularly pleased with the gross profit contribution in the cigarette and beverage segments, Myers said.
For prepared food and fountain, the annual goal is to increase same-store sales 8.4% with an average margin of 62%. Same-store sales were up 9.5%, the same as the increase for the previous first quarter. The average margin was 61.7%. Total sales rose 14.9% to $75.4 million, and gross profit improved 12.7% to $46.5 million.
Having products in the warmers at the right time continues to pay off, said Myers. We're still experiencing significant gains in fountain sales, and on July 1, we made a series of price increasesmost significantly for our made-from-scratch pizza.
The company's goal is to acquire 50 stores and build 10 by the fiscal year- end, it said. Casey's did not complete any constructions during the first quarter, but did acquire two stores. Although we purchased fewer stores than we anticipated, we remain optimistic about the future and will continue disciplined pursuit of our acquisition goal, Myers said. As of July 31, we had signed five additional purchase agreements, and we expect ample buying opportunities in the coming months.
An ongoing corporate goal is to hold the percentage increase in operating expenses to less than the percentage increase in gross profit. In the first quarter, operating expenses rose 21.3% to $121.7 million as gross profit increased 29.5% to $188.2 million. We're pleased with the result of our emphasis on driving gross profit dollars, said Myers, Operating expenses were affected by several large health insurance claims and higher than normal wages due to increased incentive pay resulting from a more profitable quarter.
As of September 1, Ankeny, Iowa-based Casey's operated 1,448 corporate stores and 15 franchise stores in the Midwest.
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