Caseys General Stores Inc 10-Q for FY2020 Q3

Caseys General Stores Inc (CASY)

10-Q 2020-03-09 For: 2020-01-31

Added on April 10, 2026

About this 10-Q

Caseys General Stores Inc filed this 10-Q on March 9, 2020, covering the quarter ended January 31, 2020 (FY2020 Q3).

Headline figures

Quarter ended January 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.25B; up 9.8% from $2.05B a year earlier
Net income: $33.96M; down 18.8% from net income of $41.84M a year earlier
Diluted EPS: $0.91; down 19.5% from $1.13 a year earlier

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Iowa		42-0935283
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value per share	CASY	The NASDAQ Global Select Market



Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐



Class		Outstanding at February 24, 2020
Common stock, no par value per share		36,793,573 shares



			Page
PART I	FINANCIAL INFORMATION
	Item 1.	Condensed Consolidated Financial Statements
		Condensed consolidated balance sheets---January 31, 2020 and April 30, 2019 (unaudited)	4
		Condensed consolidated statements of income---three and nine months ended January 31, 2020 and 2019 (unaudited)	5
		Condensed consolidated statement of shareholders' equity---three and nine months ended January 31, 2020 and 2019 (unaudited)	6
		Condensed consolidated statements of cash flows--- nine months ended January 31, 2020 and 2019 (unaudited)	7
		Notes to unaudited condensed consolidated financial statements	9
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	19
	Item 4.	Controls and Procedures	19
PART II	OTHER INFORMATION
	Item 1.	Legal Proceedings	20
	Item 1A.	Risk Factors	21
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	21
	Item 6.	Exhibits	22
SIGNATURE			23



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	January 31, 2020		April 30, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	43,539	$	63,296
Receivables	46,383		37,856
Inventories	263,185		273,040
Prepaid expenses	14,430		7,493
Income tax receivable	22,091		28,895
Total current assets	389,628		410,580
Other assets, net of amortization	70,815		41,154
Goodwill	157,648		157,223
Property and equipment, net of accumulated depreciation of $1,983,258 at January 31, 2020 and $1,826,936 at April 30, 2019	3,303,943		3,122,419
Total assets	$	3,922,034	$	3,731,376



LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Lines of credit	$	76,000	$	75,000
Current maturities of long-term debt	577,743		17,205
Accounts payable	275,903		335,240
Accrued expenses	175,176		163,487
Total current liabilities	1,104,822		590,932
Long-term debt and finance lease obligations, net of current maturities	715,121		1,283,275
Deferred income taxes	425,242		385,788
Deferred compensation	15,892		15,881
Insurance accruals, net of current portion	22,673		22,663
Other long-term liabilities	49,694		24,068
Total liabilities	2,333,444		2,322,607
Shareholders’ equity:
Preferred stock, no par value	—		—
Common stock, no par value	28,985		15,600
Retained earnings	1,559,605		1,393,169
Total shareholders’ equity	1,588,590		1,408,769
Total liabilities and shareholders' equity	$	3,922,034	$	3,731,376



	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Total revenue (a)	$	2,248,198	$	2,048,076	$	7,362,413	$	7,174,513
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) (a)	1,751,335		1,577,811		5,742,799		5,672,159
Operating expenses	377,330		341,536		1,130,554		1,045,114
Depreciation and amortization	63,285		61,324		185,981		181,520
Interest, net	13,209		13,310		39,613		41,907
Income before income taxes	43,039		54,095		263,466		233,813
Federal and state income taxes	9,080		12,260		61,711		55,139
Net income	$	33,959	$	41,835	$	201,755	$	178,674
Net income per common share
Basic	$	0.92	$	1.14	$	5.47	$	4.87
Diluted	$	0.91	$	1.13	$	5.43	$	4.83
Basic weighted average shares outstanding	36,920,960		36,717,415		36,901,338		36,694,308
Plus effect of stock compensation	221,917		296,411		221,187		291,783
Diluted weighted average shares outstanding	37,142,877		37,013,826		37,122,525		36,986,091

Dividends declared per share	$	0.32	$	0.29	$	0.96	$	0.87

(a) Includes excise taxes of:	$	270,023	$	238,306	$	833,750	$	751,389



	Shares Outstanding	Common Stock		Retained Earnings			Shareholders' Equity
Balance at April 30, 2019	36,664,521	$	15,600	$	1,393,169		$	1,408,769
Net income	—	—		85,815			85,815
Dividends declared (32 cents per share)	—	—		(11,772		)	(11,772		)
Exercise of stock options	50,931	2,261		—			2,261
Share-based compensation	67,182	4,141		—			4,141
Balance at July 31, 2019	36,782,634	22,002		1,467,212			1,489,214
Net income	—	—		81,981			81,981
Dividends declared (32 cents per share)	—	—		(11,773		)	(11,773		)
Exercise of stock options	1,030	46		—			46
Share-based compensation	7,984	2,380		—			2,380
Balance at October 31, 2019	36,791,648	24,428		1,537,420			1,561,848
Net income	—	—		33,959			33,959
Dividends declared (32 cents per share)	—	—		(11,774		)	(11,774		)
Exercise of stock options	1,925	85		—			85
Share-based compensation	—	4,472		—			4,472
Balance at January 31, 2020	36,793,573	$	28,985	$	1,559,605		$	1,588,590



	Nine months ended January 31,
	2020			2019
Cash flows from operating activities:
Net income	$	201,755		$	178,674
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	185,981			181,520
Share-based compensation	14,394			11,111
Loss on disposal of assets and impairment charges	2,115			1,159
Deferred income taxes	39,454			38,925
Changes in assets and liabilities:
Receivables	(8,527		)	4,146
Inventories	10,207			(8,252		)
Prepaid expenses	(6,937		)	(3,986		)
Accounts payable	(53,534		)	(66,946		)
Accrued expenses	12,737			22,772
Income taxes	9,204			36,685
Other, net	(7,142		)	(18,052		)
Net cash provided by operating activities	399,707			377,756
Cash flows from investing activities:
Purchase of property and equipment	(363,907		)	(311,165		)
Payments for acquisition of businesses, net of cash acquired	(12,644		)	(21,021		)
Proceeds from sales of property and equipment	3,813			4,159
Net cash used in investing activities	(372,738		)	(328,027		)
Cash flows from financing activities:
Repayments of long-term debt	(9,329		)	(7,839		)
Net borrowings of short-term debt	1,000			10,400
Proceeds from exercise of stock options	2,392			1,168
Payments of cash dividends	(34,178		)	(30,808		)
Repurchase of common stock	—			(37,479		)
Tax withholdings on employee share-based awards	(6,611		)	(4,681		)
Net cash used in financing activities	(46,726		)	(69,239		)



Net decrease in cash and cash equivalents	(19,757		)	(19,510		)
Cash and cash equivalents at beginning of the period	63,296			53,679
Cash and cash equivalents at end of the period	$	43,539		$	34,169



	Number of option shares	Weighted average option exercise price
Outstanding at April 30, 2019	109,827	$	44.39
Granted	—	—
Exercised	53,886	44.39
Forfeited	—	—
Outstanding at January 31, 2020	55,941	$	44.39




Unvested at April 30, 2019	388,800
Granted	188,800
Vested	(108,484	)
Forfeited	(18,105	)
Performance Award Adjustments	18,552
Unvested at January 31, 2020	469,563


2.	Basis of Presentation


3.	Revenue and Cost of Goods Sold


4.	Long-Term Debt and Finance Lease Obligations, Lines of Credit, and Fair Value Disclosure


5.	Compensation Related Costs and Share Based Payments



	Classification	January 31, 2020
Finance lease right-of-use assets	Property and equipment	$	14,896
Operating lease right-of-use assets	Other assets	19,984



	January 31, 2020
Weighted-average remaining lease-term - finance lease	10.9 years
Weighted-average remaining lease-term - operating lease	20.1 years

Weighted-average discount rate - finance lease	5.33		%
Weighted-average discount rate - operating lease	4.31		%

Right-of-use assets obtained in exchange for new finance lease liabilities (in thousands)	$	1,520
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands)	1,037



Years ended January 31,	Finance leases		Operating leases
2021	$	3,115	$	1,830
2022	3,110		1,791
2023	3,109		1,709
2024	2,897		1,634
2025	1,385		1,556
Thereafter	10,705		23,581
Total minimum lease payments	24,321		32,101
Less amount representing interest	6,979		11,745
Present value of net minimum lease payments	$	17,342	$	20,356



Years ended April 30,	Capital leases		Operating leases
2020	$	3,103	$	1,703
2021	3,109		1,547
2022	3,096		1,354
2023	3,098		1,228
2024	2,548		1,066
Thereafter	9,215		10,438
Total minimum lease payments	24,169		$	17,336
Less amount representing interest	7,689
Present value of net minimum lease payments	$	16,480



	Store Count
Total stores at April 30, 2019	2,146
New store construction	50
Acquisitions	10
Acquisitions not opened	(4	)
Prior acquisitions opened	3
Closed	(12	)
Total stores at January 31, 2020	2,193



Three Months Ended January 31, 2020	Fuel			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Revenue	$	1,376,018		$	582,407		$	273,630		$	16,143		$	2,248,198
Revenue less cost of goods sold (excluding depreciation and amortization)	$	124,257		$	191,692		$	164,795		$	16,119		$	496,863
	9.0		%	32.9		%	60.2		%	99.9		%	22.1		%
Fuel gallons	572,746

Three Months Ended January 31, 2019	Fuel			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Revenue	$	1,233,620		$	543,773		$	256,144		$	14,539		$	2,048,076
Revenue less cost of goods sold (excluding depreciation and amortization)	$	122,559		$	173,512		$	159,682		$	14,512		$	470,265
	9.9		%	31.9		%	62.3		%	99.8		%	23.0		%
Fuel gallons	554,479



Nine Months Ended January 31, 2020	Fuel			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Revenue	4,518,061			1,930,886			867,353			46,113			7,362,413
Revenue less cost of goods sold (excluding depreciation and amortization)	416,045			627,278			530,259			46,032			1,619,614
	9.2		%	32.5		%	61.1		%	99.8		%	22.0		%
Fuel gallons	1,805,901

Nine Months Ended January 31, 2019	Fuel			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Revenue	$	4,502,904		$	1,806,822		$	820,208		$	44,579		$	7,174,513
Revenue less cost of goods sold (excluding depreciation and amortization)	$	364,691		$	582,629		$	510,540		$	44,494		$	1,502,354
	8.1		%	32.2		%	62.2		%	99.8		%	20.9		%
Fuel gallons	1,750,024



	Three months ended			Nine months ended
	January 31, 2020		January 31, 2019	January 31, 2020		January 31, 2019
Net income	$	33,959	41,835	$	201,755	178,674
Interest, net	13,209		13,310	39,613		41,907
Federal and state income taxes	9,080		12,260	61,711		55,139
Depreciation and amortization	63,285		61,324	185,981		181,520
EBITDA	$	119,533	128,729	$	489,060	457,240
Loss on disposal of assets and impairment charges	858		29	2,115		1,159
Adjusted EBITDA	$	120,391	128,758	$	491,175	458,399



Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
Third Quarter:
November 1 - November 30, 2019	—	$	—	—	$	300,000,000
December 1 - December 31, 2019	—	—		—	300,000,000
January 1 - January 31, 2020	—	—		—	300,000,000
Total	—	$	—	—	$	300,000,000



Exhibit No.	Description
3.1	Second Restatement of the Restated and Amended Articles of Incorporation, as amended September 5, 2018, June 28, 2019 and September 4, 2019 (incorporated by reference to Exhibit 3.1 to Form 10-Q filed September 9, 2019)
3.2a	Fourth Amended and Restated Bylaws, as amended September 5, 2018, June 28, 2019 and September 5, 2019 (incorporated by reference to Exhibit 3.2a to Form 10-Q filed September 9, 2019)
10.51	Form of Change of Control Agreement (incorporated by reference to Exhibit 10.1 to Form 8-K filed December 19, 2019)
10.52	Performance-Based Restricted Stock Units Agreement (Special Strategic Grant to Darren M. Rebelez) and Award Summary under 2018 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to Form 8-K filed December 26, 2019)
10.53*	Restricted Stock Units Agreement (Make-Whole Award to Thomas P. Brennan) under 2018 Stock Incentive Plan
10.54*	Restricted Stock Units Agreement (Make-Whole Award to Chad Frazell) under 2018 Stock Incentive Plan
31.1*	Certification of Darren M. Rebelez under Section 302 of the Sarbanes Oxley Act of 2002
31.2*	Certification of William J. Walljasper under Section 302 of the Sarbanes Oxley Act of 2002
32.1*	Certification of Darren M. Rebelez under Section 906 of Sarbanes-Oxley Act of 2002
32.2*	Certification of William J. Walljasper under Section 906 of Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101. DEF	XBRL Taxonomy Extension Definition Linkbase Document



		CASEY’S GENERAL STORES, INC.

Date: March 9, 2020	By:	/s/ William J. Walljasper
		William J. Walljasper
	Its:	Senior Vice President and Chief Financial Officer
		(Authorized Officer and Principal Financial and Accounting Officer)