Casey’s General Stores reported diluted earnings per share of $2.21 for the second quarter of fiscal year 2020 ended October 31, 2019, compared to $1.80 per share for the same quarter a year ago, representing nearly 23% growth compared to last year.
"Excluding impacts of tax reform, this represents the sixth consecutive quarter of at least 20% growth in diluted earnings per share, compared to prior year quarters," said Darren Rebelez, President and Chief Executive Officer.
Second quarter results were primarily driven by continued strong growth in fuel gross profit dollars, new store openings, and an ongoing focus on operating efficiencies.
"We are optimistic about the new initiatives that will launch in the back half of fiscal 2020 and beyond, and believe they will continue to create additional shareholder value," stated Rebelez.
Fuel - For the quarter, average fuel margin was 22.9 cents per gallon, while same-store gallons sold were down 1.8%.
Second quarter gross profit dollars increased nearly 19% to $140.8 million, and total gallons sold were up 3.4% to 614.1 million gallons.
“Our centralized retail pricing capability continues to provide the agility needed to capture fuel profit, and we are gaining traction on our fuel procurement strategy.
We remain optimistic these new capabilities will further enhance fuel profitability moving forward," said Rebelez.
For the six months ended October 31, 2019, total gallons sold were up 3.1% to 1.2 billion.
Same-store gallons sold year to date were down 2.0% with an average margin of 23.7 cents per gallon.
In that same period, gross profit dollars increased 20.5% to $291.8 million.
Grocery and Other Merchandise - For the quarter, same-store sales were up 3.2% with average margin of 33.3%.
“The average margin in the quarter benefited in part from a favorable product mix shift to higher margin items.
We look forward to continued momentum as we build more data within our price optimization tool,†said Rebelez.
For the second quarter, total grocery and other merchandise revenue increased 6.8% to $660.6 million, and gross profit dollars increased nearly 10% to $220.1 million.
Total revenue for the first six months was up 6.8% to $1.3 billion, while total gross profit dollars grew 6.5% to $435.6 million.
Same-store sales year to date were up 3.1% with an average margin of 32.3%.
Prepared Food and Fountain - Same-store sales for the quarter were up 1.9% with average margin of 60.9%.
"While the food service environment remains highly competitive, we did see sequential improvement in same-store sales compared to first quarter, as well as on a two-year stack basis," said Rebelez.
The average margin was adversely impacted by higher commodity costs compared to prior year.
Total prepared food and fountain revenue increased 5.2% to $297.8 million in the second quarter while gross profit dollars grew to $181.5 million.
For the first six months, total revenue increased 5.3% to $593.7 million while total gross profit dollars grew 4.2% to $365.5 million.
Year to date, same-store sales were up 1.8% with an average margin of 61.6%. ■