Casey’s General Stores Inc. has spent $32 million this year on COVID-19-related expenses including $5 million during the second quarter, the company’s chief financial officer said today during an earnings call with investors.

The expenses include sick pay for ill workers and costs related to increased cleaning at the Ankeny-based company’s more than 2,200 stores, Steve Bramlage said.

“We are committed to taking care of our team members and guests,” Bramlage said during the call. 

The added expenses, though, did not adversely affect the company’s financial results for the second quarter, which ended on Oct. 31.

In the second quarter, Casey’s reported diluted earnings per share of $3, a 36% increase from the $2.21 earnings per share reported a year ago, the company reported.

Casey’s also reported total second quarter revenue of $2.2 million, down nearly 11% from the same period in 2019. For the first six months of the fiscal year, Casey’s total revenue was $4.3 million, down 15.5% compared to a year ago.

But even with the revenue decline, Casey’s “had a tremendous second quarter,” Darren Rebelez, Casey’s president and CEO, said during the earnings call. “The results for this quarter were quite well-balanced, driven by both stronger fuels and higher inside sales volumes and profits from a year ago.”

In December, Casey’s board of directors increased the per share dividend 6% to 34 cents.
Rebelez said the company is taking a cautious approach to the coming winter months. While there is optimism surrounding news about a vaccine for COVID-19, holiday travel will likely remain limited this year, he said.

“It should be no surprise that the CDC recommendations [include] limiting holiday travel and large gatherings,” Rebelez said. “The tighter restrictions on many social activities have started to again take a toll on guest traffic.”

He said Casey’s is beginning to see a decline in the amount of fuel purchased by consumers as well as a drop in the sale of prepared foods.

“We finished the [second] quarter with food restrictions in place at 120 stores and given the recent surge in [COVID] cases, it’s possible restrictions may increase,” Rebelez said. 

Still, he said, Casey’s is making progress on meeting its long-term strategic goals. The company’s recent purchase of Buchanan Energy, which operates 94 Bucky’s convenience stores, increases Casey’s footprint in Illinois and Nebraska, Rebelez said. In addition, Casey’s has 14 stores under construction.

To read the news release on Casey’s first-quarter and annual earnings, click here.