ANKENY, Iowa -- Casey's General Stores Inc. has reported earnings for the fourth quarter and the fiscal year ended April 30, 2006. We had a very solid quarter, earning 22 cents per share from continuing operations, said Chairman and CEO Ronald M. Lamb. For the year, we reached an all-time high of $1.25 per share. Casey's annual sales were up 25.4%, and gross profit rose 15.2%.
For fuel, the company's annual goal was to increase same-store gasoline gallons sold 2% with an average margin of 10.5 cents per gallon. The category's results surpassed our expectations [image-nocss] for the year, said Lamb. Same-store gallons sold were up 4.4% for the 12 months and 0.5% for the quarter. Lamb added, Our average margin for fiscal 2006 was 11.5 cents per gallon, reflecting the market volatility that affected the entire industry. The average margin for the quarter was 10.6 cents per gallon.
For groceries and other merchandise, the annual goal was to increase same-store sales 3% with an average margin of 31.5%. We outperformed the sales and margin goal for the year by capitalizing on increased store traffic brought in by the lottery and enhancing our point-of-sale technology, Lamb said. Same-store sales were up 5.7% with an average margin of 31.9% for the 12 months. For the quarter, same-store sales were up 4.2% with an average margin of 31.3%.
For prepared food and fountain, the annual goal was to increase same-store sales 5.5% with an average margin of 60.5%. Lamb said, This category was outstanding. We increased same-store sales 7.4% for the year and achieved an average margin of 63%. Same-store sales for the quarter also were up 7.4%, and the margin was 60.9%. He credited introducing profitable new products and using point-of-sale (POS) data to align menu items with customer demand and to manage inventory for the excellent results. Expanding our fountain selections should add to our success in fiscal 2007, Lamb added.
In the area of operating expenses, Casey's annual goal was to hold the percentage increase to less than the percentage increase in gross profit. Lamb said, The goal was challenging every quarter all year long as bank fees continually increased along with the retail price of gasoline, but our strategies for growing gross profit worked extremely well. Operating expenses for the year were up 10.6% while gross profit grew 15.2%. For the quarter, operating expenses increased 8.8% and gross profit was up 11.4%.
Another annual goal was to acquire 30 stores in addition to the Gas N Shop acquisition and to build 10 new stores. We actually built 15 stores, Lamb said, because there were good opportunities in areas where there weren't attractive potential acquisitions. We acquired 49 stores from Gas N Shop and closed 10 of them that were in direct competition with our own stores in nearby locations. We acquired an additional 18 stores and at April 30 had written agreements for 6 more stores.
The company also completed expansion of its distribution center, gaining the capacity to serve at least 1,000 more stores.
Lamb said Ankeny, Iowa-based Casey's goals for the new fiscal year include:
Increasing same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon. Increasing same-store grocery and other merchandise sales 3.9% with an average margin of 32.2%. Increasing same-store prepared food and fountain sales 7.9% with an average margin of 63.4%. Holding the percentage increase in operating expenses to less than the percentage increase in gross profit. Acquiring 50 stores and building 10 new stores.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.