ANKENY, Iowa -- "Fiscal 2015 was a tremendous year for Casey's," said chairman and CEO Robert J. Myers. "Sales were strong throughout all of our categories, and the company is poised to grow the business in fiscal 2016 with a variety of initiatives to improve the existing store base, while at the same time building and acquiring more stores."
Casey's General Stores Inc. has reported net income of $180.63 million for the 12 months ended April 30, 2015, compared to $126.82 million for the same period a year ago. The Ankeny, Iowa-based convenience-store retailer has reported net income of $41.34 million for the fourth quarter of fiscal year ended April 30, 2015, compared to $20.94 million for the same period a year ago.
For fuel, the company's annual goal for fiscal 2015 was to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. Annual same-store gallons sold were up 2.6% with an average margin of 19.3 cents per gallon. For the quarter, same-store gallons rose 3.5% with an average margin of 16.9 cents per gallon. The company sold 13.9 million renewable fuel credits for $9.7 million in the fourth quarter.
"Same-store gallons sold are benefiting from lower retail fuel prices," said Myers. "The steady fall in wholesale cost midyear along with favorable renewable fuel credits contributed to a record high fuel margin for the year."
For fiscal 2015, total gallons sold were up 9.1% to 1.8 billion, while gross profit dollars rose 31.1% to $351.2 million.
In the grocery and other merchandise categories, Casey's goal was to increase same-store sales 5.3% with an average margin of 32.1%. For the year, same-store sales were up 7.8% with an average margin of 32.1%. For the fourth quarter, same-store sales were up 9.7% with an average margin of 32.1%.
"Sales were strong throughout the entire category during the fiscal year, and we are especially pleased with the build in momentum during the fourth quarter," said Myers. "We are encouraged by recent premium cigarette sales gains, while beer and beverage sales continue their strong performance as we expand our initiatives throughout the chain, particularly 24-hour conversions and major store remodels."
For the year, total sales were up 13.4% to $1.8 billion, and gross profit dollars rose 13.3% to $575.5 million.
In prepared food and fountain, Casey's annual goal was to increase same-store sales 9.5% with an average margin of 60%. For the year, same-store sales were up 12.4% with an average margin of 59.7%. For the quarter, same-store sales were up 13.5% with an average margin of 60.9%. "Prepared food margin was under pressure for most of the fiscal year due to high input costs," said Myers. "Fortunately we experienced some relief towards the end of the third quarter and have locked in favorable cheese costs through the end of December 2015 and coffee through December 2016. Same-store sales continue to be favorably impacted by several initiatives, and we are particularly excited about rolling out our online pizza ordering system during fiscal 2016."
For fiscal 2015, total sales were up 18.5% to $780.9 million, and gross profit dollars were up 15.6% to $466.1 million.
For the fiscal year, operating expenses increased 12% to $960.4 million. For the fourth quarter, operating expenses were up 10.7%.
"The majority of our operating expense increase is related to new and acquired stores, as well as store replacements and the various operational initiatives in place throughout this fiscal year as well as the prior year," said Myers.
Operating expenses for stores that have not been impacted by the initiatives were up 3.7% for the year.
On the new-store front, Casey's annual goal was to build or acquire 72 to 108 stores and replace 25 existing locations. For the fiscal year, the company opened 45 new stores and acquired 36, for a total of 81 stores. It also completed 27 replacements and 27 major remodels.
"The company believes it is important to grow the business through new and acquired stores while at the same time enhancing the performance of our existing store base," said Myers. "Our prudent approach to acquisitions and our ability to execute on the integration of newly constructed and acquired stores will enable us to deliver shareholder value for many years to come."
For fiscal 2016, Casey's hopes to increase same-store fuel gallons sold 2% with an average margin of 16.7 cents per gallon; increase same-store grocery and other merchandise sales 6.2% with an average margin of 32.1%; and increase same-store prepared food and fountain sales 10.4% with an average margin of 60.8%.
It also hopes to build or acquire 75 to 113 stores, replace 10 existing locations and complete 100 major remodels.
Casey's General Stores, based in Ankeny, Iowa, operates more than 1,850 convenience stores in 14 states throughout the Midwest.
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