ANKENY, Iowa --Casey's General Stores Inc. has reported net income of $39.3 million for the third quarter of fiscal 2015 ended Jan. 31, 2015, compared to $12.7 million for the same quarter a year ago.
"Casey's experienced significant inside sales growth throughout the third quarter," said chairman and CEO Robert J. Myers. "The steady decline in wholesale gasoline costs was favorable to fuel margins, and the low price of gasoline drove sales in all of our business categories. Total gross profit rose 26.9% for the third quarter."
- Fuel: The goal for fiscal 2015 is to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. For the third quarter, same-store gallons sold rose 2.2% with an average margin of 22.0 cents per gallon.
"The steady fall in wholesale fuel cost throughout the quarter enabled us to achieve a record third-fuel margin," said Myers. "Same-store sales benefited from mild weather and lower retail fuel prices compared to last year's third quarter."
Total gallons sold for the year were up 8.7% with an average margin of 20.1 cents per gallon. Year to date, same-store gallons were up 2.5%.
- Grocery & Other Merchandise: The company's annual goal is to increase same-store sales 5.3% with an average margin of 32.1%. For the quarter, same-store sales were up 7.7% with an average margin of 31.2%.
"Beer and beverage sales continue to benefit from our expanded cooler capacity incorporated in our current store design," said Myers. "We also experienced strong cigarette sales throughout the quarter, led in part by a favorable trend of customers trading up to premium brands."
For the nine months ended Jan. 31, 2015, same-store sales were up 7.3% with an average margin of 32.0%. Total sales for the year were up 12.7% while gross profit rose 12.6% to $435.3 million.
- Prepared Food & Fountain: Casey's annual goal is to increase same-store sales 9.5% with an average margin of 60%. For the third quarter, same-store sales were up 14.1% with an average margin of 58.7%. The margin was down 210 basis points from the prior year due to higher input costs and increased stales; however, total gross profit for the category rose 16.1% to $111.7 million in the third quarter.
"We have several initiatives driving prepared food sales, such as expanding stores to 24-hour operations, adding pizza delivery and major store remodels. We were also able to implement strategic price increases throughout the fiscal year," said Myers. "Cheese costs declined throughout the quarter, and the company recently locked in wholesale cheese costs through Dec. 31, 2015."
Total prepared food and fountain sales for the year were up 18.1%, while gross profit rose 13.9% to $347.5 million.
- Operating Expenses: Year to date, operating expenses increased 12.5% to $727.9 million. For the third quarter, operating expenses were up 11.2% to $238.8 million.
"Operating expenses are up primarily due to the unit growth we have experienced since this time a year ago, along with store replacements and the various initiatives we have in place to grow sales throughout our chain," said Myers.
Store-level operating expenses that have not been impacted by the initiatives were up 2.4% for the quarter.
Based in Ankeny, Iowa, Casey's General Stores owns and operates more than 1,850 convenience stores in 14 states throughout the Midwest.
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