Casey’s earnings flat on recapitalization, takeover expenses

Casey's General Stores has reported third-quarter earnings that were unchanged from the same quarter of fiscal 2010 orimarily due to charges related to its recapitalization in the face of a hostile takeover bid.

The Ankeny-based convenience store chain recorded net income of $12.9 million, or 34 cents per share, for the three-months that ended Jan. 31, compared with $17.2 million, or 34 cents per share, for the same quarter a year ago.

Year to date, earnings per share were $1.64 per share, compared with $1.87 poer share for the same period last year.

The results include about $27.4 million in expenses related to the company's recapitalization plan completed in the second quarter, as well as the unsolicited hostile offer by Alimentation Couche-Tard Inc., of which $1.7 million was recorded in the third quarter.

Absent those expenses, earnings per share would have been 37 cents for the quarter and $2.06 for the first nine months of fiscal 2011. Earnings in the quarter were impacted by compressed margins due to a competitive cigarette environment, rising commodity costs and increased operating expenses related to store openings.

Casey's General Stores plans to increase the total number of stores 4 percent to 6 percent this fiscal year. In the first nine months, the company has acquired 74 stores and completed 14 new-store constructions. It also has replaced nine locations during the first nine months of the year and completed 39 major remodels.

The Casey's General Store at 34th Street and Mount Vernon Road SE is one of the stores that the chain has replaced with a new, larger facility.