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Jul 31, 2021
Casey's Q1 2022 Earnings Report
Casey's reported strong financial results driven by increased guest traffic and strategic initiatives.
Key Takeaways
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.
Casey's
Casey's
Casey's Revenue by Segment
Revenue by Segment
Prepared Food & Beverage Revenue
CapyFin.comGrocery & Gen Merchandise Revenue
CapyFin.comFuel Revenue
CapyFin.com Forward Guidance
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.
Positive Outlook
- Same-store fuel sales are expected to increase by mid-single digit percentages.
- Inside sales are expected to increase by mid-single digit percentages.
- Approximately 200 units are expected to be added during fiscal 2022.
- Depreciation and amortization is expected to be approximately $300 million.
- Interest expense is expected to be approximately $50 million.
Challenges Ahead
- The tax rate is now expected to be approximately 24.0% - 26.0% for the year.
- Total operating expenses are expected to increase by mid-teen percentages.
- Expenses are related to adding back operating hours to the stores.
- Expected wage pressures.
- Property and equipment including acquisition remodels are expected to add approximately $500 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income