Casey’s General Stores Inc. reported a 1.4% increase in earnings for the fiscal fourth-quarter due to strong sales and higher margins inside its stores, which offset impacts of lower gasoline margins.
The Iowa-based company’s revenue has grown for more than two years due to higher gasoline and grocery sales expansion, but commodity costs, competitive cigarette pricing and demand-discouraging gasoline prices have pressured the bottom line.
The quarter ended April 30. Casey’s reported a profit of $23.1 million, up from $22.8 million last year. On a per-share basis, earnings were unchanged at 60 cents, as shares outstanding increased. Revenue increased 13% to $1.75 billion.
President and CEO Robert Myers said the gas margin was down by almost 2 cents per gallon compared with last year.
“We were pleased with our ability to offset this decline with strong sales and margin gains inside our stores,” Myers said. “Inside gross profit dollars for the quarter were up nearly 19% and we are optimistic about our growth potential in fiscal 2013 with the various operational initiatives we are implementing.”
Casey’s corporate performance goals for fiscal 2013 are as follows:
- Increase same-store gasoline gallons sold 1% with an average margin of 14 cents per gallon
- Increase same-store grocery and other merchandise sales 6.2% with an average margin of 32.7%
- Increase same-store prepared food and fountain sales 11% with an average margin of61.1%
- Increase the total number of stores 4 to 6%. In addition, replace 20 stores and complete 50 to 75 major remodels.
Earnings will be reported during a conference call at 9:30 a.m. CDT on June 13 via investor relations section of Casey’s Website.