ANKENY, Iowa -- Casey's General Stores Inc. has reported 44 cents in earnings per share from continuing operations for the second quarter of fiscal 2006 ended Oct. 31, 2005. The earnings were up 91.3% from 23 cents for the same quarter a year ago. Earnings from continuing operations year to date were 89 cents per share compared with 55 cents at the previous midyear.
At the six-month mark, all three of our business categories were exceeding annual goals for sales and margins, giving the company a 27.9% increase in total sales and a substantial gross profit [image-nocss] gain of 19.9%, said Chairman and CEO Ronald M. Lamb.
Casey's annual goal is to increase same-store gasoline gallons sold 2% with an average margin of 10.5 cents per gallon. On a same-store basis, gallons sold in the second quarter were up 4.3% with an average margin of 13.9 cents; for the year to date, they were up 6% with an average margin of 12.8 cents. Gross profit for the six months rose 30.1% to $72.1 million. Lamb said extraordinary market conditions existed during the second quarter: Hurricane activity caused considerable volatility in wholesale gasoline costs. We adhered to our consistent policy of pricing with the competition and made gains in same-store sales and margin.
For grocery and other merchandise, the annual goal is to increase same-store sales 3% with an average margin of 31.5%. The same-store sales increase was 4.5% for the quarter with an average margin of 33.2% and 6% for the year to date with an average margin of 32.6%. The six-month gross profit grew 14.7% to $135.1 million. Our strategic focus on aligning product mix with customer demand served us well, Lamb said, and the lottery has become a destination item drawing additional customers to our stores.
The annual goal for prepared food and fountain is to increase same-store sales 5.5% with an average margin of 60.5%. For the quarter, same-store sales were up 4.5% with an average margin of 64.6%. For the six months, same-store sales were up 5.9% with an average margin of 64.3%. The year-to-date gross profit was $74.3 million, a 19% increase. Lamb gave this assessment: We drove sales and margins by matching menu items to customer preferences, introducing new products, and controlling stales.
The retailer's annual goal is to hold the percentage increase in operating expenses to less than the percentage increase in gross profit. Operating expenses year to date were up 11.1% to $183 million. Lamb said, Thanks to our sound management strategies, the 19.9% increase in gross profit to $284.4 million far surpassed the percentage increase in expenses.
Finally, the company is in the final stages of completing the Gas `N Shop purchase agreement. We're excited about the Gas N Shop additions, said Lamb, We'll begin rebranding the sites to Casey's General Stores as soon as the transaction is closed. Our team has also targeted numerous individual competitor stores and other regional chains as potential future acquisitions. The company's annual goal is to acquire 30 stores in addition to the Gas N Shop acquisition and to build 10 new stores. As of Oct. 31, 2005, Casey's had built seven stores, acquired 14 stores and signed written agreements to acquire five more.
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