Casey's posts lower profit on higher revenues
Operating expenses up due to new, acquired, and replaced stores
Casey's General Stores on Monday reported a slightly lower third-quarter profit on higher revenues when compared with the same quarter last year.
The Ankeny-based convenience store chain recorded net income of $14.7 million, or 38 cents per share, for the three months that ended on Jan. 31, down from $15.5 million, or 40 cents per share, for the same period last year.
Third-quarter revenue was $1.8 billion, up from $1.7 billion in the same period a year ago.
Casey's earnings missed analysts' forecast by 11 cents per share and projected revenue by $50 million.
"Third quarter sales were strong throughout all of our categories despite challenging weather during the quarter," said Casey's Chairman and CEO Robert Myers. "Our same-store fuel sales are exceeding industry-wide trends and gross profit from inside the store was up over 11 percent for both the quarter and year."
Casey's recently announced it has signed a purchase agreement to acquire 24 Stop-n-Go stores located in North Dakota and Minnesota. The company has 25 new stores and 15 replacement stores under construction, as well as 32 stores under contract to purchase.
Casey's operating expenses were up 13.1 percent in the third quarter. The majority of the operating expense increase was due to new, acquired, and replaced stores, along with the various operating initiatives that have been rolled out to existing stores.
Included in the results was approximately $1.6 million for additional snow removal and the loss from a store that was destroyed by a fire.