Casey's misses on earnings, citing cigarette sales, weather

Casey's General Stores reported a slightly higher fiscal fourth-quarter profit on improving sales, but still missed analysts' earnings projections.

The Ankeny-based convenience store chain posted net income of $23.3 million, or 60 cents per diluted share, for the quarter that ended on April 30, up from $23.1 million, or 60 cents per share, in the same quarter last year. Analysts surveyed by Reuters had expected earnings of 62 cents per share.

Casey's reported fourth-quarter sales of $1.81 billion, compared with $1.75 billion in the comparable period last year.

For the fiscal year, Casey's net income slipped to $110.6 million, or $2.86 per share, from $$116.8 million, or $3.04 per share, last fiscal year. Sales rose to $7.25 billion in fiscal 2013 from $6.99 billion in fiscal 2012.

Casey's Chairman and CEO Robert Myers said the company incurred about $3.5 million in non-cash charges in the fourth quarter related to the write-off of an unrecoverable accounts receivable balance and charges related to accelerated depreciation and impairment for replaced, closed, and underperforming stores.

"A difficult cigarette environment and challenging weather comparisons adversely impacted sales during fiscal 2013," Myers said. "However, in the fourth quarter we saw strong sales gains with the recent implementation of a 'fuel saver'  program in partnership with Hy-Vee grocery stores and competitive cigarette pricing adjustments made earlier in the fiscal year.

"We expect this momentum will continue into fiscal 2014."

Casey's expects to construct or acquire 70 to 105 stores over the next fiscal year. It also plans to replace 20 existing locations.

"We currently have 15 new stores and 16 replacement stores under construction, as well as 20 stores under contract to acquire," Myers said. "We have entered several new markets this past year."