ANKENY, Iowa -- Casey's General Stores Inc. has reported an all-time high in earnings for its first-quarter fiscal 2006, ended July 31, 2005. Earnings per share from continuing operations were up 37.5% to 44 cents compared with 32 cents for first-quarter fiscal 2005. Total sales were up 19% to $860.8 million, and gross profit rose 14.5% to a record $140 million.
A great first quarter gave us a running start toward our annual goals, said Chairman and CEO Ronald M. Lamb.
The Ankeny, Iowa-based company sold 287.3 million gallons [image-nocss] of gasoline in the quarter compared with 258.5 million in the same period of 2005. Our 11.1% increase shows consumers are continuing to fill their tanks at Casey's, said Lamb, and affirms the value of our consistent policy of pricing competitively.
On a same-store basis, gallons sold were up 7.7%, well over the annual goal of achieving a 2% same-store increase. Our average margin per gallon was 11.7 cents, considerably higher than our goal of 10.5 cents, and our gross profit improved to $33.5 million from $30.6 million, he said.
For grocery and other merchandise, same-store sales rose 7.4% and the average margin improved to 32% from 31.4% the same quarter a year ago. The annual goal is to increase same-store sales 3% with an average margin of 31.5%. Total sales were up 10.8% to $213.6 million, and gross profit grew 13% to $68.4 million. We are especially encouraged by the progress we made in this category, said Lamb. Point-of-sale data enhanced our product management, and our strategic price increases helped margins without slowing sales. The lottery will be an ongoing benefitnot only for the commissions it adds to our bottom line but for the traffic it draws to our stores.
As for prepared food and fountain, Lamb said, This category had another outstanding quarter. Total sales were up 11.6% to $57.6 million; same-store sales rose 7.2%, surpassing the annual goal of 5.5%. The average margin was 64%, far ahead of the 60.5% goal, and gross profit increased to $36.8 million from $30.3 million. We grew gross profit 21.5% by meeting customer demand, controlling stales, benefiting from earlier price increases on selected items, and having a lower wholesale cheese price, he said. We expect continued growth in the second quarter.
For operating expenses, the annual goal is to hold the percentage increase in operating expenses to less than the percentage increase in gross profit. A major component of operating expenses for Casey's is bank charges, which were higher in the first quarter because more customers used credit cards to pay for more expensive gasoline. Though operating expenses were up, said Lamb, our sound management strategies held the increase to 9.1% while we grew gross profit 14.5%.
Acquisitions are the centerpiece of the company's long-term growth strategy, it said. Casey's is continuing its due diligence on the pending acquisition of up to 58 stores from Gas N Shop Inc. Management expects to complete that transaction in the second quarter and is also pursuing other opportunities, it said. The annual goal is to acquire an additional 30 stores and to build 10 new stores. As of July 31, 2005, the company had completed 11 acquisitions, had written agreements for four more and had built two new stores.
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