Casey’s achieves record earnings
Casey’s General Stores Inc. posted record earnings for fiscal year 2009, despite a $9.1 million pre-tax charge related to the settlement of two wage-and-hour lawsuits.
For the year ended April 30, the company’s net earnings were $85.69 million, or $1.69 per share, compared with $84.89 million, or $1.68 per share, the previous year. Without the settlement charge, earnings would have been approximately $1.80 per share.
“Despite this charge and a very challenging economy, we were able to achieve record earnings and we anticipate continuing our strong performance in fiscal 2010,” said President and CEO Robert Myers, in a release.
For the fiscal fourth quarter, Casey’s earned $15.56 million, or 31 cents per share, compared with $14.41 million, or 28 cents per share, a year earlier.
Same-store gallons of gasoline sold were up 1 percent for the year, with sales improving in the second half of the year as retail prices declined. Sales of grocery and other merchandise rose 5.9 percent, with gains in cigarettes and high-margin beverages leading the way. Prepared food and fountain sales were up 9.1 percent for the year. The company plans to continue to increase earnings in this area by expanding coffee and fountain selections, introducing new menu items and continuing to roll out its made-to-order submarine sandwich program.
Operating expenses were up 6.2 percent for the year. Without the lawsuit settlement, expenses would have been up 4.3 percent. Lower fuel prices helped reduce transportation costs and credit card fees, Myers said.
The company also replaced 14 stores and completed 2 remodels. It increased its store count by about 2 percent with 16 new stores and 16 acquired stores.
At its June meeting, the board of directors declared a quarterly dividend of 8.5 cents per share, payable on Aug. 17 to shareholders of record on Aug. 3.