On December 11, 2023, Casey's General Stores Inc (CASY, Financial) released its 8-K filing, announcing financial results for the second quarter ended October 31, 2023. The company reported a robust performance with a 16% increase in diluted earnings per share (EPS) to $4.24 and a 15% rise in net income to $159 million. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a healthy 13% increase to $306 million compared to the same period last year.
Financial Performance Highlights
Casey's General Stores Inc (CASY, Financial) experienced growth in both inside same-store sales and fuel gross profit. Inside same-store sales, which include grocery and general merchandise as well as prepared food and dispensed beverages, increased by 2.9% over the prior year. This was complemented by an 11.0% increase on a two-year stack basis. The inside margin improved to 41.1%, contributing to a 9.7% increase in total inside gross profit, which reached $553.3 million.
The fuel segment remained stable with same-store fuel gallons sold flat compared to the prior year, but the fuel margin increased to 42.3 cents per gallon. This led to an 8.6% increase in total fuel gross profit, amounting to $308.8 million. Operating expenses, excluding credit card fees, rose by 2.1%, with the company achieving a 2% reduction in same-store labor hours.
Operational and Strategic Developments
Casey's General Stores Inc (CASY, Financial) continued its expansion strategy, building or acquiring 59 stores during the quarter, including a significant move into Texas with a 22-store acquisition. As of October 31, 2023, the company operated 2,592 stores. In terms of liquidity, Casey's reported approximately $1.3 billion in available liquidity, consisting of cash on hand and available borrowing capacity.
The company also returned value to shareholders through a share repurchase program, buying back approximately $30 million of shares, with $340 million remaining under the current authorization. Additionally, the Board of Directors approved a quarterly dividend of $0.43 per share, reinforcing the company's commitment to shareholder returns.
Outlook and Forward Guidance
Casey's General Stores Inc (CASY, Financial) provided an optimistic outlook for fiscal 2024, expecting EBITDA growth to align with the strategic plan's goal of 8% to 10%. The company plans to repurchase at least $100 million in shares throughout the fiscal year and anticipates a 3.5% to 5% increase in same-store inside sales. Operating expenses are projected to rise by approximately 6% to 8%, while same-store operating expenses, excluding credit card fees, are expected to increase by about 3%.
Casey's General Stores Inc (CASY, Financial) is poised for continued growth and profitability, as evidenced by its strong second-quarter performance and strategic expansion efforts. The company's focus on inside sales and fuel gross profit, combined with effective cost management and shareholder-friendly initiatives, positions it well for future success.
Explore the complete 8-K earnings release (here) from Casey's General Stores Inc for further details.
