Casey's General Stores Inc · Q1 2022 earnings

Briefing

Casey's reported strong financial results driven by increased guest traffic and strategic initiatives.

Casey's announced strong first quarter results with total revenue up across the board due to increased guest traffic. Inside gross profit increased by almost 17%, benefiting from merchandise resets and strategic sourcing. The acquisitions of Buchanan Energy and Oklahoma Circle K stores were completed during the quarter.

• Inside same-store sales increased 8.0% with a margin of 40.5%.
• Total inside gross profit increased 16.7% to $463.5 million.
• Fuel gallons increased 9.0% on a same-store basis with a fuel margin of 35.1 cents per gallon.
• Total fuel gross profit increased 11.6% to $234.5 million.

Headline financials

Revenue & EPS history

The Company is maintaining the previously disclosed fiscal 2022 outlook, with one modification: The tax rate is now expected to be approximately 24.0% - 26.0% for the year. The Company expects same-store fuel and inside sales to increase by mid-single digit percentages. Total operating expenses are expected to increase by mid-teen percentages, driven primarily by adding approximately 200 units during fiscal 2022, as well as expenses related to adding back operating hours to the stores and expected wage pressures. Depreciation and amortization is expected to be approximately $300 million, interest expense is expected to be approximately $50 million. The Company is also expecting to add approximately $500 million in property and equipment in the fiscal year, including acquisition remodels.