Casey’s(CASY) - 2025 Q2 - Quarterly Report

Store Operations - As of October 31, 2024, the total store count reached approximately 2,685, with an acquisition of 198 stores from Fikes bringing the total to about 2,900 stores[48][49]. - The company operates 178 EV charging stations at 41 stores across 13 states as part of its EV growth strategy[52]. Financial Performance - The company reported diluted earnings per share of $4.85 for Q2 fiscal 2025, an increase from$4.24 in the same quarter last year[56]. - Total revenue for the second quarter of fiscal 2025 decreased by $117,629 (2.9$3,946,771[56]. - Same-store sales for prepared food and dispensed beverages increased by 5.2%, while grocery and general merchandise sales rose by 3.6% during the quarter[53]. - Net income rose by $22,136 (13.9$180,918, driven by higher profitability in-store and in fuel[58]. - Total revenue for the first six months of fiscal 2025 increased by $110,857 (1.4$67,662 (9.0%) due to a 4.7% increase in same-store sales and approximately 4.3% from store growth[60]. - Grocery and general merchandise revenue increased by $157,309 (8.0$33,097 (10.1%) to $361,116, attributed to higher profitability in stores and fuel[62]. - EBITDA for the first six months of fiscal 2025 increased by 11.5$694,662 compared to $622,757 in the prior year[63]. Operating Expenses - Operating expenses increased by$29,976 (5.2%) to $609,679, primarily due to operating 93 more stores than the previous year[56]. - Operating expenses increased by$78,595 (6.9%) primarily due to operating 93 more stores compared to the prior year[62]. Cash Flow and Debt - Cash provided by operating activities rose by $70,277 to$552,057 for the six months ended October 31, 2024[66]. - Cash used in investing activities decreased by $61,176, with expenditures of$257,567 for property and equipment and acquisitions[66]. - Cash provided by financing activities increased by $1,142,884, primarily due to proceeds from long-term debt of$1,100,000 for the Fikes acquisition[66]. - As of October 31, 2024, the company's total long-term debt amounted to $2,461,922,000 after accounting for current maturities and debt issuance costs[68]. - The company has a variable rate term loan facility with a balance of$231,250,000, which requires quarterly installments ending April 21, 2028[68]. - The company has issued various senior notes with interest rates ranging from 2.85% to 5.43%, with total amounts due reaching $1,537,000,000[68]. Market Risks and Hedging - An immediate 100-basis-point increase in interest rates would result in an approximate annualized impact of$10.6 million on interest expense[73]. - The company utilizes futures contracts to hedge against the volatility of fuel prices associated with non-store inventoried fuel[73]. - The company is exposed to market risks related to fuel price volatility, which could adversely affect its financial results[73]. - The company cautions that various risk factors, including food ingredient costs and supply chain disruptions, could materially impact its operations[70]. - The company emphasizes the importance of high-quality credit issuers to mitigate default risk in its investment portfolio[73]. - The company does not speculate in trading financial instruments and ensures all hedges are matched against recorded physical transactions[73]. Taxation - The effective tax rate increased to 24.5% in Q2 fiscal 2025, up from 23.6% in the same period last year[58]. Fuel Revenue - Retail fuel revenue decreased by $231,846 (8.8$103,537 (2.0%) as the average retail price per gallon fell by 8.6%, despite a 7.2% increase in gallons sold[60].