Casey’s(CASY) - 2025 Q3 - Quarterly Report

Store Operations - As of January 31, 2025, Casey's operates a total of 2,893 stores, with 228 new stores added through acquisitions, including 198 from the Fikes acquisition[74]. - Operating expenses increased by $101,292 (17.8%) to$ 670,200, with approximately 14% of the increase attributed to operating 254 more stores[88]. - Operating expenses increased by $179,887 (10.5%), with approximately 8% attributed to operating 254 more stores compared to the prior year[98]. Financial Performance - Total revenue for the third quarter of fiscal 2025 increased by$ 574,386 (17.3%) compared to the same period in fiscal 2024, primarily driven by the Fikes acquisition[82]. - Net income for the third quarter of fiscal 2025 was $87,097, slightly up from$ 86,933 in the comparable period[92]. - Total revenue for the first nine months of fiscal 2025 increased by $685,243 (6.1%) to$ 11,948,141 compared to $11,262,898 in the prior year, primarily driven by$ 459,422 from the Fikes acquisition[93]. - Net income increased by $33,261 (8.0%) to$ 448,213, driven by higher profitability in-store and in fuel, partially offset by increased operating expenses[102]. - EBITDA for the first nine months of fiscal 2025 increased by 11.5% to $937,030 compared to$ 840,372 in the prior year[105]. Revenue Breakdown - Same-store sales of prepared food and dispensed beverage increased by 4.7%, while grocery and general merchandise increased by 3.3% during the quarter[80]. - Fuel revenue increased by $315,148 (15.4%) due to a 20.4% increase in gallons sold, despite a 4.2% decrease in average retail price per gallon[82]. - Other revenue increased by$ 73,772 (117.8%) for the third quarter of fiscal 2025, primarily driven by an increase in wholesale fuel revenue from the Fikes acquisition[83]. - Prepared food and dispensed beverage revenue increased by $115,402 (10.4%) due to a same-store sales increase of 4.4% and approximately 6.0% from store growth[93]. - Grocery and general merchandise revenue rose by$ 295,035 (10.4%) with a same-store sales increase of 2.6% and approximately 7.8% from store growth[93]. - Retail fuel revenue increased by $211,611 (3.0%) due to an increase in gallons sold by 244,531 (11.5%), despite a 7.6% decrease in average retail price per gallon[93]. Cash Flow and Investments - Cash provided by operating activities increased by$ 152,396 to $756,996, primarily from improved revenue less cost of goods sold[109]. - Cash used in investing activities increased by$ 920,353, totaling $1,537,066, primarily due to acquisition-related activity from the Fikes acquisition[110]. - Cash provided by financing increased by$ 1,157,278, mainly due to proceeds from long-term debt of $1,100,000 to partially fund the Fikes acquisition[111]. Debt and Interest Rates - As of January 31, 2025, the company's total long-term debt amounts to$ 2,439,038,000 after accounting for current maturities and debt issuance costs[112]. - The company has a variable rate incremental term loan facility of $850,000,000, requiring quarterly installments ending October 30, 2029[112]. - An immediate 100-basis-point move in interest rates would result in an approximate annualized impact of$ 10.4 million on interest expense[120]. - The company has issued various senior notes with interest rates ranging from 2.85% to 5.43%, with total senior notes amounting to $1,000,000,000[112]. Risk Factors - The company faces risks from increases in food ingredient costs and potential disruptions in the distribution network[114]. - The company is subject to extensive governmental regulations that could adversely affect revenues, particularly related to tobacco and nicotine products[115]. - The company acknowledges that general economic conditions and consumer preferences may impact its financial condition and results of operations[116]. - The company emphasizes the importance of compliance with data security regulations to protect sensitive information, which could impact financial results[114]. EV Infrastructure - Casey's has 230 EV charging stations at 47 stores across 13 states as of January 31, 2025, reflecting its commitment to expanding EV infrastructure[77]. Taxation - The effective tax rate decreased to 19.2% in the third quarter of fiscal 2025, down from 24.1% in the same period of fiscal 2024[91]. Hedging Strategies - The company utilizes futures contracts to hedge against the volatility of fuel prices associated with non-store inventoried fuel[121]. Future Capital Needs - Future capital needs for operations and store growth are expected to be met from cash generated by operations and additional long-term debt[112].