Lower costs equal higher Q4 profits at Casey’s; store growth planned

Casey’s General Stores Inc. reported increased net income and decreased revenue during the fourth quarter of fiscal 2016.



The retailer also said it plans to build or acquire 77 to 116 new stores, among other goals for fiscal 2017.



In the fourth quarter, Casey’s reported net income of $47.04 million, up 14% from $41.34 million the same period the prior year. Total revenue fell 4% to $1.58 billion, from $1.65 billion. A significant reduction in cost of goods sold offset increases in operating and other expenses, resulting in higher profits.



For the fiscal year, the company completed 51 new store constructions and acquired five stores. Casey’s also completed 11 replacement stores and 102 major remodel. In addition to building or acquiring 77 to 116 new stores, the retailer also plans to replace 35 existing locations, and complete 100 major remodels during fiscal 2017.



During fiscal 2016, net income shot up 40% to $225.98 million, from $160.93 million. Total revenue fell 8% to $7.12 billion, from $7.77 billion.



“Fiscal 2016 was an exciting year for Casey’,” said Terry Handley, president and CEO. “We successfully opened our second distribution center in Terre Haute, Indiana, and launched our mobile app in conjunction with rolling out online ordering across all our stores. Total gross profit was up over 12% for the year and the company is positioned well for continued strong performance in fiscal 2017.”