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Oct 31, 2021
Casey's Q2 2022 Earnings Report
Casey's reported second quarter results with increased inside same-store sales and fuel gallons.
Key Takeaways
Casey's General Stores announced its Q2 results, highlighting a 6.0% increase in inside same-store sales and a 2.5% increase in fuel gallons sold on a same-store basis. Despite supply chain challenges and inflationary pressures, the company achieved strong inside gross profit and fuel margins. The company also announced the pending acquisition of 40 stores from Pilot Corporation.
Inside same-store sales increased 6.0% with a margin of 40.7%.
Total inside gross profit increased 12.3% to $463.4 million.
Fuel gallons increased 2.5% on a same-store basis with a fuel margin of 34.7 cents per gallon.
Total fuel gross profit increased 13.6% to $231.9 million.
Revenue by Segment
Forward Guidance
Casey's is updating its fiscal year 2022 outlook, expecting to add approximately 225 units due to the acquisition of Pilot convenience stores. Total operating expenses are expected to increase in the high-teen percentages. Interest expense is expected to be approximately $55 million, and depreciation and amortization is expected to be approximately $310 million.
Positive Outlook
- Addition of approximately 225 units during fiscal 2022.
- Pending transaction expected to be EBITDA accretive in fiscal 2022.
- Maintaining same-store fuel and inside sales mid-single digit percentage increase.
- Reduced new store construction due to the increase in acquisition activity.
- Tax rate is expected to be approximately 24.0% - 26.0% for the year.
Challenges Ahead
- Total operating expenses are expected to increase in the high-teen percentages.
- Elevated credit card fees brought on by higher retail fuel prices.
- Approximate 18-20% increase in operating expenses in the third quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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