Casey’s earnings rise 26 percent

Casey's General Stores on Wednesday posted 26 percent higher second-quarter earnings per share on higher revenue as gasoline margins improved.

The Ankeny-based convenience store chain recorded net income of $49.9 million, or $1.28 per share, for the quarter that ended on Oct. 31, compared with $39.4 million, or $1.01 per share, in the same quarter of 2013. That surpassed the $1.12 per share average estimate of analysts from Thomson Reuters.

Casey's posted second-quarter revenue of $2.15 billion, up from $2.02 billion in the same quarter of 2013, but below analysts' average estimate of $2.18 billion.

Total inside sales were up 13.6 percent and total fuel gallons sold were up 8.7 percent for the quarter, according to Casey's Chairman and CEO Robert Myers.

'We believe same-store fuel sales have benefited from the lower retail prices as well as our fuel saver program,” Myers said. 'Fuel margins remained strong through the second quarter due in part to a steady decline in wholesale costs.”

The company's grocery and other merchandise category continued to perform well through the second quarter.

'Packaged beverages are performing especially well, due in large part to our expanded cooler set in new, remodeled, and replaced stores,” Myers said. 'Total sales for the category year to date were $945.5 million and total gross profit was up 12.3 percent to $306.7 million.”

Myers said operating expenses were up in the quarter, primarily due to newly built, acquired and replaced stores as well as initiatives to drive in-store sales. As of the end of the second quarter, the company opened 21 new stores - including a new location at Sixth Street and 33rd Avenue SW in Cedar Rapids - and acquired 29 stores.

Casey's has 26 new and 14 replacement stores under construction, as well as nine store acquisitions, 44 new sites and 31 replacement sites under contract to purchase. The company's replacement store on Eighth Avenue SE in downtown Cedar Rapids is nearing completion.