[ACCESSWIRE]
Upcoming AWS Coverage on Smart & Final Stores Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 15, 2016 / Active Wall St. announces its post-earnings coverage on Casey's General Stores, Inc. (NASDAQ: CASY). The Company released its second quarter fiscal 2017 earnings results on December 08, 2016. The convenience store and gas-station operator's earnings and revenue numbers came in below market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Casey's General Stores' competitors within the Grocery Stores space, Smart & Final Stores, Inc. (NYSE: SFS), reported on November 156, 2016, financial results for the third fiscal quarter ended October 9, 2016. AWS will be initiating a research report on Smart & Final Stores in the coming days.
Today, AWS is promoting its earnings coverage on CASY; touching on SFS. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=CASY
http://www.activewallst.com/registration-3/?symbol=SFS
Earnings Reviewed
For the three months ended on October 31 2016, Casey's reported revenue of $1.920 billion, edging down 0.2% compared to revenue of $1.924 billion in the year ago same quarter. The company's revenue figures came in below analysts' forecasts of $1.95 billion.
For Q2 FY17, Casey's reported earnings of $57.18 million, or $1.44 per diluted share, down compared to earnings of $79 million, or $2.00 per share, for the same quarter a year ago. The company stated that Q2 FY17 fuel margin $0.186 per gallon, lower than the $0.247 per gallon fuel margin from the year ago comparable quarter, driven by wholesale price trends, which impacted Q2 FY17 diluted earnings by approximately $0.52 per share. The Company's earnings also missed Wall Street's expectations of $1.57 per share.
Segment Results
For its Fuel segment in Q2 FY17, Casey's same-store gallons sold were up 3.7%. The Company sold 17.8 million renewable fuel credits for $15.9 million during the reported quarter, while total gallons sold for the quarter rose 7.1% to $531 million. The average retail price of fuel during this period was $2.10 a gallon compared to $2.35 last year.
Casey's total sales from the Grocery and Other Merchandise category were up 5.5% to $545 million in Q2 FY17 with Same Store sales increasing 3.1% on a y-o-y basis. The average margin for the segment in the reported quarter was 32%, up 50 basis points from a year ago, primarily due to an out of period adjustment that adversely impacted Q2 F16. Gross profit for the reported quarter in the category was up over 7%, to $174.6 million.
In Casey's prepared food and fountain category, total sales were up 8.3% to $248.3 million for the reported quarter, while same-store sales were up 5.1%. In Q2 FY17, prepared food's gross profit dollars rose 7.4% to $156.3 million.
Liquidity and Capital Resources
As of October 31, 2016, Casey's cash and cash equivalents were $178 million, up from $75.8 million at the end of FY16, primarily due to the additional debt the company secured for future growth and its year-to-date result. Long-term debt net of current maturities was $915 million, while shareholder's equity rose to $1.2 billion, up $116 million from the end of FY16. For the first six months of FY17, Casey's generated $240 million in cash flow from operations and capital expenditures were $209.2 million compared to $210 million a year ago in the same period. Casey's Board of Directors declared a quarterly dividend of $0.24 per share. The dividend is payable February 15, 2017 to shareholders of record on February 01, 2017.
Store Update
During Q2 FY17, Casey's opened 11 new store constructions, completed 9 replacement stores and acquired 3 stores. The company also has 15 additional acquisition stores under contract to purchase and it also completed 16 major remodels in the reported quarter. Additionally, Casey's has 39 new stores, 22 replacement stores, and 37 major remodels under construction. The Company's store count at the end of Q2 FY17 was 1,941.
Furthermore, Casey's stated that in addition to the unit growth, through the first six months of FY17, the company has converted 89 locations to a 24-hour format and 70 stores to the pizza delivery format, and it plans to further convert an additional 90 locations to the pizza delivery format over the remainder of FY17. The company stated that it is also on track to complete an additional 76 major remodels, bringing its total at FY17 end to 100. Currently, the Company has approximately 1,022 stores that are on the 24-hour format, 552 stores that are in the pizza delivery format, and it has completed 388 major remodels.
The company also notified that its online ordering continues to gain traction. Subsequent to the rollout in January, total download for the mobile app has exceeded 616,000 and continues to grow. The amount of pizza orders done online has climbed to over 10% and the basket rank of an online order has increased and is now over 20% higher compared to a telephonic order.
Stock Performance
At the close of trading session on Wednesday, the stock traded at $122.35, slightly up 0.63% from its previous closing price of $121.59. A total volume of 429.89 thousand shares have exchanged hands. Casey's stock price advanced 1.92% in the last month, 2.43% in the past three months, and 3.23% in the previous six months. Furthermore, since the start of the year, shares of the company have gained 2.37%. The stock is trading at a PE ratio of 23.08 and has a dividend yield of 0.78%.
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SOURCE: Active Wall Street
