Casey’s fourth-quarter earnings slip

Higher operating expenses reduced fourth-quarter earnings for Casey's General Stores, causing the Ankeny-based convenience store chain to miss analysts' forecasts.

Casey's reported net income of $22.8 million, or 59 cents per share, for the quarter that ended on April 30, compared with net income of $23.3 million, or 61 cents per share, for the same period last year. Revenue rose to $1.92 billion in the fourth quarter from $1.81 billion in the final quarter of fiscal 2013.

Operating expenses increased 10 percent to $210.1 million in the most recent quarter from $191.1 million in the same quarter of fiscal 2013. For the fiscal year, operating expenses increased 12.7 percent to $857.3 million from $760.4 million in fiscal 2013.

Casey's Chairman and CEO Robert Myers said the annual and quarterly expenses were up primarily due to new, acquired and replaced stores, along with the various operating initiatives that have been introduced in existing stores.

For the fiscal year, Casey's recorded net income of $134.5 million, or $3.50 per share, compared with $110.6 million, or $2.89 per share, in the previous fiscal year. Revenue increased to $7.8 billion in fiscal year 2014 from $7.3 billion in fiscal 2013.

'Inside sales were up over 13 percent for the fiscal year, and total fuel gallons sold increased by over 8 percent,” Myers said. 'We were able to add new stores and acquisitions in a disciplined manner while at the same time enhancing the performance of our existing store base.”

Myers said Casey's, which has more than 1,800 locations, plans to build or acquire 72 to 108 stores and replace 25 existing locations in fiscal 2015.

The company is building a new store at Sixth Street and 33rd Avenue SW in Cedar Rapids and it expects to replace an existing store at 201 Eighth Ave. SE in downtown Cedar Rapids.

Separately, Casey's on Tuesday announced the appointment of Terry Handley as president. Handley, who joined the company in 1981, will continue as chief operating officer.