EX-99.1 2 q3fy2025earningspressrelea.htm EX-99.1 Document

Exhibit 99.1
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FOR IMMEDIATE RELEASE
Casey’s General Stores, Inc.
One SE Convenience Blvd
Ankeny, IA 50021
Casey's Announces Third Quarter Results
Ankeny, IA, March 11, 2025 - Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq: CASY) one of the leading convenience store chains in the United States, today announced financial results for the three and nine months ended January 31, 2025.

Third Quarter Key Highlights

•Diluted EPS of $2.33, flat with the same period a year ago. Net income was $87.1 million, also flat with the prior year, and EBITDA1 was $242.4 million, up 11.4%, from the same period a year ago.
•Inside same-store sales increased 3.7% compared to prior year, and 8.0% on a two-year stack basis, with an inside margin of 40.9%. Total inside gross profit increased 14.3% to $573.1 million compared to the prior year.
•Same-store fuel gallons were up 1.8% compared to prior year with a fuel margin of 36.4 cents per gallon. Total fuel gross profit increased 17.4% to $302.1 million compared to the prior year.
•Same-store operating expenses excluding credit card fees were up 3.2%, favorably impacted by a 2% reduction in same-store labor hours.

"Casey's delivered an excellent third quarter highlighted by strong sales growth both inside and outside the store,” said Darren Rebelez, Chairman, President and CEO. “Inside same-store sales were driven by the prepared food and dispensed beverage category, with hot sandwiches and bakery performing quite well. Our fuel team did a tremendous job achieving same-store gallon growth of 1.8% while maintaining a solid fuel margin. Total fuel gallons sold were up 20.4% while total inside sales rose 15.3% primarily due to unit growth, including the Fikes acquisition. The operations team's focus on serving our guests efficiently is paying off, as we reduced same-store labor hours for the eleventh consecutive quarter."

Earnings
Three Months Ended January 31,Nine Months Ended January 31,
2025202420252024
Net income (in thousands)$87,097 $86,933 $448,213 $414,952 
Diluted earnings per share$2.33 $2.33 $12.01 $11.09 
EBITDA (in thousands)$242,368 $217,615 $937,030 $840,372 

For the quarter, net income and diluted EPS were approximately flat while EBITDA was up compared to the same period a year ago. EBITDA was up primarily due to higher inside and fuel gross profit, partially offset by higher operating expenses from operating 254 additional stores, as well as one-time Fikes deal and integration costs of approximately $13 million. Net income and diluted EPS were flat due to higher interest expense related to debt taken on from the Fikes transaction as well as higher depreciation from operating more stores.


1 EBITDA is reconciled to net income below.


Inside
Three Months Ended January 31,Nine Months Ended January 31,
2025202420252024
Inside sales (in thousands)$1,400,425 $1,214,959 $4,342,056 $3,931,619 
Inside same-store sales3.7 %4.1 %3.1 %4.1 %
Grocery and general merchandise same-store sales3.3 %2.8 %2.6 %3.3 %
Prepared food and dispensed beverage same-store sales4.7 %7.5 %4.4 %6.2 %
Inside gross profit (in thousands)$573,079 $501,511 $1,807,052 $1,611,209 
Inside margin40.9 %41.3 %41.6 %41.0 %
Grocery and general merchandise margin34.2 %33.9 %35.1 %34.0 %
Prepared food and dispensed beverage margin57.8 %59.6 %58.3 %58.9 %

Total inside sales were up 15.3% for the quarter. Same-store inside sales of 3.7% were driven by strong performance in the prepared food and dispensed beverage category, including hot sandwiches and bakery as well as non-alcoholic beverages in the grocery and general merchandise category. Inside margin was down 40 basis points compared to the same quarter a year ago, driven primarily by the impact of the stores from the Fikes acquisition as well as a coffee promotion to feature new flavor profiles.

Fuel2
Three Months Ended January 31,Nine Months Ended January 31,
2025202420252024
Fuel gallons sold (in thousands)829,761 689,251 2,378,211 2,133,680 
Same-store gallons sold1.8 %(0.4)%0.3 %— %
Fuel gross profit (in thousands)$302,058 $257,246 $928,858 $863,059 
Fuel margin (cents per gallon, excluding credit card fees)36.4 ¢37.3 ¢39.1 ¢40.4 ¢

For the quarter, total fuel gallons sold increased 20.4% compared to the prior year due to the store count increase as well as same-store gallons which were up 1.8% versus the prior year. The Company’s total fuel gross profit was up 17.4% versus the prior year, while the increase in gallons sold was partially offset by a decrease in fuel margin, driven primarily by the impact of the stores from the Fikes acquisition. The Company sold $2.6 million in renewable fuel credits (RINs) in the third quarter, a decrease of $0.8 million from the same quarter in the prior year.

Operating Expenses
Three Months Ended January 31,Nine Months Ended January 31,
2025202420252024
Operating expenses (in thousands)$670,200 $568,908 $1,889,353 $1,709,466 
Credit card fees (in thousands)$61,234 $51,977 $187,318 $175,879 
Same-store operating expenses excluding credit card fees3.2 %2.5 %1.8 %2.5 %

Operating expenses increased approximately 18% during the third quarter. Operating 254 more stores than prior year accounted for approximately 14% of the increase, including one-time deal and integration costs of approximately $13 million from the Fikes acquisition. Same-store employee expense contributed to approximately 1% of the increase, as the increases in labor rates were partially offset by a reduction in same-store labor hours.

2 Fuel category does not include wholesale fuel activity, which is included in Other.


Expansion
Store Count
April 30, 20242,658 
New store construction21 
Acquisitions228
Acquisitions not opened(1)
Prior acquisitions opened1 
Closed(14)
January 31, 20252,893 

Liquidity
At January 31, 2025, the Company had approximately $1.3 billion in available liquidity, consisting of approximately $395 million in cash and cash equivalents on hand and approximately $900 million in available borrowing capacity on existing lines of credit.

Share Repurchase
During the third quarter, the Company did not repurchase any shares. The Company has approximately $295 million remaining under its existing share repurchase authorization.

Dividend
At its March meeting, the Board of Directors approved a quarterly dividend of $0.50 per share. The dividend is payable May 15, 2025, to shareholders of record on May 1, 2025.

Fiscal 2025 Outlook
Casey’s is updating the 2025 outlook as follows: For fiscal year 2025, the Company now expects EBITDA to increase approximately 11%. The purchase of property and equipment is expected to be approximately $500 million.

Casey’s is not updating its outlook for the following metrics: For Casey’s total fiscal 2025 year outlook the Company expects same-store inside sales to increase approximately 3% to 5% with inside margin to be comparable to the prior year. The Company expects same-store fuel gallons sold to be negative 1% to positive 1%. The Company expects total operating expenses to increase 11% to 13% for the fiscal year, including approximately $25 to $30 million in one-time deal and integration costs related to the Fikes acquisition, while same-store operating expense excluding credit card fees are expected to only increase 2% for the year. Net interest expense is expected to be approximately $90 million for the year. Depreciation and amortization is expected to be approximately $410 million. The tax rate is expected to be approximately 23% to 25% for the fiscal year. Casey’s expects to add approximately 270 stores for the fiscal year.






Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in thousands, except share and per share amounts)
(Unaudited)
 Three Months Ended January 31,Nine Months Ended January 31,
 2025202420252024
Total revenue$3,903,633 $3,329,247 $11,948,141 $11,262,898 
Cost of goods sold (exclusive of depreciation and amortization, shown separately below)2,991,065 2,542,724 9,121,758 8,713,060 
Operating expenses670,200 568,908 1,889,353 1,709,466 
Depreciation and amortization105,203 88,950 296,204 257,453 
Interest, net29,415 14,146 56,035 38,947 
Income before income taxes107,750 114,519 584,791 543,972 
Federal and state income taxes20,653 27,586 136,578 129,020 
Net income$87,097 $86,933 $448,213 $414,952 
Net income per common share
Basic$2.35 $2.34 $12.08 $11.15 
Diluted$2.33 $2.33 $12.01 $11.09 
Basic weighted average shares37,125,570 37,100,143 37,112,506 37,210,007 
Plus effect of stock compensation236,486 235,940 213,474 199,531 
Diluted weighted average shares37,362,056 37,336,083 37,325,980 37,409,538 


Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
 
January 31, 2025April 30, 2024
Assets
Current assets
Cash and cash equivalents$394,815 $206,482 
Receivables166,231 151,793 
Inventories482,101 428,722 
Prepaid and other current assets39,585 25,791 
Income taxes receivable16,924 17,066 
Total current assets1,099,656 829,854 
Operating lease right-of-use assets, net
420,069 115,819 
Other assets, net of amortization118,962 79,740 
Goodwill1,240,598 652,663 
Property and equipment, net of accumulated depreciation of $3,062,910 at January 31, 2025 and $2,883,925 at April 30, 20245,340,893 4,669,357 
Total assets$8,220,178 $6,347,433 
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt and finance lease obligations$243,755 $53,181 
Accounts payable585,865 569,527 
Accrued expenses and current portion of operating lease liabilities 366,018 330,758 
Total current liabilities1,195,638 953,466 
Long-term debt and finance lease obligations, net of current maturities2,439,038 1,582,758 
Deferred income taxes638,197 596,850 
Operating lease liabilities, net of current portion
437,155 111,100 
Insurance accruals, net of current portion31,240 30,046 
Other long-term liabilities61,594 57,832 
Total liabilities4,802,862 3,332,052 
Total shareholders’ equity3,417,316 3,015,381 
Total liabilities and shareholders’ equity$8,220,178 $6,347,433 


Casey’s General Stores, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
 Nine months ended January 31,
 20252024
Cash flows from operating activities:
Net income$448,213 $414,952 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization296,204 257,453 
Amortization of debt issuance costs1,132 833 
Change in excess replacement cost over LIFO inventory valuation9,358 7,786 
Share-based compensation35,489 29,349 
Loss on disposal of assets and impairment charges8,993 892 
Deferred income taxes51,204 48,213 
Changes in assets and liabilities:
Receivables12,067 (15,146)
Inventories(8,129)(33,762)
Prepaid and other current assets(11,287)(7,839)
Accounts payable(78,246)(93,480)
Accrued expenses(5,617)(10,905)
Income taxes276 2,335 
Other, net(2,661)3,919 
Net cash provided by operating activities756,996 604,600 
Cash flows from investing activities:
Purchase of property and equipment(325,499)(325,726)
Payments for acquisition of businesses, net of cash acquired(1,211,567)(296,809)
Proceeds from sales of assets14,529 20,351 
Net cash used in investing activities(1,522,537)(602,184)
Cash flows from financing activities:
Proceeds from long-term debt1,100,000 — 
Payments of long-term debt and finance lease obligations(60,981)(48,364)
Payments of debt issuance costs(5,292)— 
Payments of cash dividends(53,745)(46,975)
Repurchase of common stock and payment of related excise taxes(734)(89,768)
Tax withholdings on employee share-based awards(25,374)(18,297)
Net cash provided by (used in) financing activities953,874 (203,404)
Net increase (decrease) in cash and cash equivalents188,333 (200,988)
Cash and cash equivalents at beginning of the period206,482 378,869 
Cash and cash equivalents at end of the period$394,815 $177,881 





SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
 Nine months ended January 31,
 20252024
Cash paid during the period for:
Interest, net of amount capitalized$52,565 $43,316 
Income taxes, net84,506 72,037 
Noncash activities:
       Purchased property and equipment in accounts payable69,299 82,785 
       Right-of-use assets obtained in exchange for new finance lease liabilities12,590 14,035 
       Right-of-use assets obtained in exchange for new operating lease liabilities315,124 12,613 


Summary by Category (Amounts in thousands)
Three Months Ended January 31, 2025Prepared Food & Dispensed BeverageGrocery & General
Merchandise		FuelOtherTotal
Revenue$397,151 $1,003,274 $2,366,822 $136,386 $3,903,633 
Gross profit$229,535 $343,544 $302,058 $37,431 $912,568 
57.8 %34.2 %12.8 %27.4 %23.4 %
Fuel gallons sold829,761 
Three Months Ended January 31, 2024
Revenue$349,411 $865,548 $2,051,674 $62,614 $3,329,247 
Gross profit$208,327 $293,184 $257,246 $27,766 $786,523 
59.6 %33.9 %12.5 %44.3 %23.6 %
Fuel gallons sold689,251 
Summary by Category (Amounts in thousands)
Nine Months Ended January 31, 2025Prepared Food & Dispensed BeverageGrocery & 
General Merchandise		FuelOtherTotal
Revenue$1,220,107 $3,121,949 $7,337,096 $268,989 $11,948,141 
Gross profit$711,034 $1,096,018 $928,858 $90,473 $2,826,383 
58.3 %35.1 %12.7 %33.6 %23.7 %
Fuel gallons sold2,378,211 
Nine Months Ended January 31, 2024
Revenue$1,104,705 $2,826,914 $7,125,485 $205,794 $11,262,898 
Gross profit$650,852 $960,357 $863,059 $75,570 $2,549,838 
58.9 %34.0 %12.1 %36.7 %22.6 %
Fuel gallons sold2,133,680 

Prepared Food & Dispensed BeveragePrepared Food & Dispensed Beverage
Same-store SalesMargin
 Q1Q2Q3Q4Fiscal
Year		 Q1Q2Q3Q4Fiscal
Year
F20254.4 %5.2 %4.7 %F202558.3 %58.7 %57.8 %
F20245.9 6.1 7.5 8.8 %6.8 %F202458.2 59.0 59.6 58.1 %58.7 %
F20238.4 10.5 5.0 4.9 7.1 F202355.6 56.7 57.3 56.8 56.6 
Grocery & General MerchandiseGrocery & General Merchandise
Same-store SalesMargin
 Q1Q2Q3Q4Fiscal
Year		 Q1Q2Q3Q4Fiscal
Year
F20251.6 %3.6 %3.3 %F202535.4 %35.6 %34.2 %
F20245.2 1.7 2.8 4.3 %3.5 %F202434.1 34.0 33.9 34.4 %34.1 %
F20235.5 6.9 5.8 7.1 6.3 F202333.9 33.3 34.0 33.0 33.6 
Fuel GallonsFuel Margin
Same-store Sales(Cents per gallon, excluding credit card fees)
 Q1Q2Q3Q4Fiscal
Year		 Q1Q2Q3Q4Fiscal
Year
F20250.7 %(0.6)%1.8 %F202540.7 ¢40.2 ¢36.4 ¢
F20240.4 — (0.4)0.9 %0.1 %F202441.6 42.3 37.3 36.5 ¢39.5 ¢
F2023(2.3)0.3 (0.5)— (0.8)F202344.7 40.5 40.7 34.6 40.2 




RECONCILIATION OF NET INCOME TO EBITDA
We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. EBITDA is not considered to be a GAAP measure, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. This measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
We believe EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use this calculation as a measure of financial performance and debt service capabilities, and it is regularly used by management for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation.
Because non-GAAP financial measures are not standardized, EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of this non-GAAP financial measure with those used by other companies.
The following table contains a reconciliation of net income to EBITDA for the three and nine months ended January 31, 2025 and 2024:
(in thousands)Three Months Ended January 31,Nine Months Ended January 31,
2025202420252024
Net income$87,097 $86,933 $448,213 $414,952 
Interest, net29,415 14,146 56,035 38,947 
Federal and state income taxes20,653 27,586 136,578 129,020 
Depreciation and amortization105,203 88,950 296,204 257,453 
EBITDA$242,368 $217,615 $937,030 $840,372 
NOTES:
•Gross Profit is defined as revenue less cost of goods sold (exclusive of depreciation and amortization)
•Inside is defined as the combination of grocery and general merchandise and prepared food and dispensed beverage

This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to the potential impact the Fikes transaction, expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, and performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of the conflict in Ukraine or other geopolitical disruptions, as well as other risks, uncertainties and factors which are described in the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey’s disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise.

Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on March 12, 2025. The call will be broadcast live over the Internet at 7:30 a.m. CDT. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-presentations.  No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at https://investor.caseys.com/events-presentations for one year after the call.


Investor Relations Contact:Media Relations Contact:
Brian Johnson (515) 446-6587Katie Petru (515) 446-6772