Despite takeover bid, Casey's sees higher earnings, dividends

Casey's General Stores Inc. boosted its dividend by 18 percent Tuesday  and reported 38.9 percent fourth quarter earnings improvement as it fought a hostile takeover battle.

Casey's boosted its dividend from 8.5 cents per share to 10 cents a share. The Ankeny-based chain reported basic earnings per share of 43 cents for the quarter, up 12 cents, or 38.9 percent, from the fourth quarter of fiscal 2009.

The legal expenses to fight an unsolicited tender offer from Alimentation Couche-Tard reduced earnings by $6.9 million, or  eight cents per share. The Reuters concensus estimate of analysts was for earnings of 40 cents per share.

For the full fiscal year, Casey's reported earnings of $2.30, a 36 percent increase over the previous year's earnings of $1.69.

“Fiscal 2010 was a monumental year for Casey's General Stores,” said President and CEO Robert J. Myers. “Not only did we surpass 1,500 stores, but we also beat our previous best year by $0.61 per share. We are very pleased with our overall performance, as we turned in record results in the midst of the challenging economic environment during the 12 month period.”

The convenience store chain reported an average net margin of 13.9 cents per gallon on gasoline for the year.

“Gasoline margins were strong throughout the year,” Myers said. “In fact, we have been significantly above our gasoline margin goals for the past three fiscal years. We believe there has been a shift in the competitive landscape throughout our marketing territory and expect this positive environment to continue.”

Casey's annual goal was to boost same-store gas sales 2 percent, with an average margin of 11 cents per gallon.

In the final quarter, same-store sales of gas were up 0.2 percent, with an average margin of 11 cents per gallon. Total gallons sold rose 3.3 percent for the year.