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Jul 31, 2022

Casey's Q1 2023 Earnings Report

Casey's reported a strong first quarter with increased inside sales and robust fuel margin.

Key Takeaways

Casey's announced strong first quarter results with diluted EPS up 28% from the same period a year ago. The company saw increases in inside same-store sales and total fuel gross profit, driven by prepared food and dispensed beverages, as well as a favorable fuel margin environment.

Diluted EPS increased by 28% year-over-year, reaching $4.09.

Inside same-store sales grew by 6.3% compared to the previous year, with a margin of 39.8%.

Fuel gallons decreased 2.3% on a same-store basis, but fuel margin was 44.7 cents per gallon.

Total fuel gross profit increased by 31.4% compared to the prior year, reaching $308.2 million.

Total Revenue
$4.46B
Previous year: $3.18B
+40.0%
EPS
$4.09
Previous year: $3.19
+28.2%
Fuel margin (ex-CC fees)
$0.447
Previous year: $35.1
-98.7%
Grocery SSS
5.5%
Previous year: 17%
-67.6%
Prepared Food SSS
8.4%
Previous year: 10.8%
-22.2%
Gross Profit
$836M
Previous year: $724M
+15.5%
Cash and Equivalents
$312M
Previous year: $199M
+57.0%
Free Cash Flow
$194M
Previous year: $197M
-1.2%
Total Assets
$5.68B
Previous year: $5.08B
+11.9%

Casey's

Casey's

Casey's Revenue by Segment

Forward Guidance

The Company's fiscal 2023 outlook previously disclosed remains unchanged. The Company expects same-store inside sales to increase 4% to 6% and maintain an inside margin of approximately 40%. The Company expects same-store fuel gallons to be flat to 2% higher. Total operating expenses are expected to increase approximately 9% to 10%. The Company expects to add approximately 80 stores in fiscal 2023, and expects to exceed our stated three year commitment of 345 units. Interest expense is expected to be approximately $55 million. Depreciation and amortization is expected to be approximately $320 million and the purchase of property plant and equipment is expected to be approximately $450 to $500 million, including approximately $135 million in one-time store remodel costs for recently acquired stores. The tax rate is expected to be approximately 24% to 26% for the year.

Positive Outlook

  • Expects same-store inside sales to increase 4% to 6%
  • Maintain an inside margin of approximately 40%
  • Expects same-store fuel gallons to be flat to 2% higher
  • Expects to add approximately 80 stores in fiscal 2023
  • Expects to exceed stated three year commitment of 345 units

Challenges Ahead

  • Total operating expenses are expected to increase approximately 9% to 10%
  • Interest expense is expected to be approximately $55 million
  • Depreciation and amortization is expected to be approximately $320 million
  • Purchase of property plant and equipment is expected to be approximately $450 to $500 million, including approximately $135 million in one-time store remodel costs for recently acquired stores.
  • Tax rate is expected to be approximately 24% to 26% for the year

Revenue & Expenses

Visualization of income flow from segment revenue to net income