General Stores reported diluted earnings per share of $1.01 for the third quarter of fiscal 2015 ended January 31, 2015, compared to $0.33 per share for the same quarter a year ago.
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Year to date, diluted earnings per share were $3.57 compared to $2.73 a year ago.
"Casey's experienced significant inside sales growth throughout the third quarter," stated
Fuel - The goal for fiscal 2015 is to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. For the third quarter, same-store gallons sold rose 2.2% with an average margin of 22.0 cents per gallon. The Company sold 14 million renewable fuel credits for $8.4 million in the quarter.
"The steady fall in wholesale fuel cost throughout the quarter enabled us to achieve a record third quarter fuel margin," said Myers.
"Same-store sales benefited from mild weather and lower retail fuel prices compared to last year's third quarter."
Total gallons sold for the year were up 8.7% with an average margin of 20.1 cents per gallon. Year to date, same-store gallons were up 2.5%.
Grocery and Other Merchandise - The Company's annual goal is to increase same-store sales 5.3% with an average margin of 32.1%. For the quarter, same-store sales were up 7.7% with an average margin of 31.2%.
"Beer and beverage sales continue to benefit from our expanded cooler capacity incorporated in our current store design," said Myers.
"We also experienced strong cigarette sales throughout the quarter, led in part by a favorable trend of customers trading up to premium brands."
For the nine months ended January 31, 2015, same-store sales were up 7.3% with an average margin of 32.0%. Total sales for the year were up 12.7% while gross profit rose 12.6% to $435.3 million.
Prepared Food and Fountain - Casey's annual goal is to increase same-store sales 9.5% with an average margin of 60%. For the third quarter, same-store sales were up 14.1% with an average margin of 58.7%. The margin was down 210 basis points from the prior year due to higher input costs and increased stales. However, total gross profit for the category rose 16.1% to $111.7 million in the third quarter.
"We have several initiatives driving prepared food sales, such as expanding stores to 24-hour operations, adding pizza delivery and major store remodels. We were also able to implement strategic price increases throughout the fiscal year," said Myers.
"Cheese costs declined throughout the quarter, and the Company recently locked in wholesale cheese costs through December 31, 2015."
Total prepared food and fountain sales for the year were up 18.1%, while gross profit rose 13.9% to $347.5 million. Operating Expenses - Year to date, operating expenses increased 12.5% to $727.9 million. For the third quarter, operating expenses were up 11.2% to $238.8 million.
"Operating expenses are up primarily due to the unit growth we have experienced since this time a year ago, along with store replacements and the various initiatives we have in place to grow sales throughout our chain," said Myers.
Store level operating expenses that have not been impacted by the initiatives were up 2.4% for the quarter. ■