Caseys General Stores, Inc. · NASDAQ:CASY
Caseys General Stores — Shareholder Meeting (September 2018)
31 slides from Caseys General Stores's shareholder meeting presentation, Sep 5, 2018
Slide 1: Annual Shareholders' Meeting Fiscal Year Ended April 30, 2018
Annual Shareholders’ Meeting Fiscal Year Ended April 30, 2018
Slide 2: Board of Directors
Board of Directors H. Lynn Horak David Lenhardt Chair of Casey’s General Stores, Inc. Former President and Chief Executive Officer of PetSmart, Inc. Diane Bridgewater Larree Renda Executive Vice-President/Chief Financial and Administrative Former Executive Vice President of Safeway, Inc. Off
Slide 3: Special Guests
Special Guests Sean Vicente Partner, KPMG LLP Bill Noth Securities Counsel, Ahlers & Cooney Firm Ginger Lawrence Transfer Agent and Registrar, Computershare Trust Company
Slide 4: Annual Shareholders' Meeting
Annual Shareholders’ Meeting
Slide 5: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include any statements relating to our possible or assumed future results of op
Slide 6: Casey's Mission, Purpose and Values
Casey’s Mission To provide quality products at competitive prices with courteous service in clean stores at convenient locations. To provide a work environment where employees are treated with respect, dignity and honesty and where high performance is expected and rewarded. To provide shareown
Slide 7: Fuel Gallons Sold
Fuel Gallons Sold Same-store Gallons Sold Fuel Gallons Sold (in Millions) Fiscal 2018 Actual 2,199 2,062 2.3% 1,952 1,817 Fiscal 2019 Guidance 1,666 1.5% - 3.0% 2014 2015 2016 2017 2018 Fiscal Year
Slide 8: Fuel Gross Profit
Fuel Gross Profit Average Margin Fuel Gross Profit (in Millions) Fiscal 2018 Actual $407 $382 $378 18.5 cpg $351 Fiscal 2019 Guidance $268 18.5 – 20.5 cpg 2014 2015 2016 2017 2018 Fiscal Year
Slide 9: Grocery & Other Merchandise Revenue
Grocery & Other Merchandise Revenue Same-store Sales Grocery & Other Merchandise Fiscal 2018 Actual Revenue (in Millions) $2,184 $2,087 1.9% $1,974 $1,795 Fiscal 2019 Guidance $1,583 1.5% - 3.0% 2014 2015 2016 2017 2018 Fiscal Year
Slide 10: Grocery & Other Merchandise Gross Profit
Grocery & Other Merchandise Gross Profit Average Margin Grocery & Other Merchandise Fiscal 2018 Actual Gross Profit (in Millions) $694 $657 31.8% $629 $576 $508 Fiscal 2019 Guidance 31.5% - 32.5% 2014 2015 2016 2017 2018 Fiscal Year
Slide 11: Prepared Food & Fountain Revenue
Prepared Food & Fountain Revenue Same-store Sales Prepared Food & Fountain Fiscal 2018 Actual Revenue (in Millions) $1,006 $953 1.7% $881 $781 Fiscal 2019 Guidance $659 1.5% - 3.5% 2014 2015 2016 2017 2018 Fiscal Year
Slide 12: Prepared Food & Fountain Gross Profit
Prepared Food & Fountain Gross Profit Average Margin Prepared Food & Fountain FY 2018 Actual Gross Profit (in Millions) $614 $594 61.0% $550 $466 FY 2019 Guidance $403 60.0% - 62.0% 2014 2015 2016 2017 2018 Fiscal Year
Slide 13: Fiscal 2019 Guidance
Fiscal 2019 Guidance Same-store Sales Average Margin Fuel (gallons and cpg) 1.5% - 3.0% 18.5 - 20.5 Grocery and other merchandise 1.5% - 3.0% 31.5% - 32.5% Prepared food & fountain 1.5% - 3.5% 60.0% - 62.0% Other Guidance Operating expenses (including the Value Creation Plan) 8.5% - 10.5% Depreciati
Slide 14: Value Creation Plan
Value Creation Plan Digital Engagement Continued Price Focus on Optimization Operating Value Expenses Creation Plan Fleet Card Capital Program Allocation Board and Governance
Slide 15: Board and Governance
Board and Governance – Elected Independent Chair – Added 5 Highly Qualified Independent Directors • 8 of 9 Directors are Independent • 5 Female and 4 Male Directors • Geographic Diversity Among Directors • Average Director Tenure is Four Years – Adopted Proxy Access – Implemented Director Age Limit
Slide 16: Fleet Card Program
Fleet Card Program Opportunity to dramatically Customer improve Casey’s fleet sales Data based on comparison of current program with industry Repeat benchmarks Purchases and Increased Partnered with FLEETCOR, a Customer Fleet Card Fuel Sales leading global provider of Loyalty commercial payment
Slide 17: Price Optimization
Price Optimization Transforming our Marketing Process Through New Technology Price Optimization Roadmap » Rules Based Pricing / Everyday Optimization » Promotion Optimization Partnered with Impact 21 for implementation Q3 FY 2018 » Markdown Optimization Vetted potential solutions providers Q3 FY
Slide 18: Digital Engagement
Digital Engagement Identify and Provide Seamless Understand Convenience for Digital Journey Customers Customers Partnered with Deloitte Digital team to develop FY 2018 Digital detailed business case and roadmap Strategy Objectives New CMO who will lead digital implementation Website enhancemen
Slide 19: Continued Focus on Operating Expenses
Continued Focus on Operating Expenses Cost Reduction Measures Operating Expenses at Unchanged Stores* – Discontinued Automatic Pay Raises for Q4 FY 2017 6.6% Store Employees at 90 Days 5.7% – Refined Store Scheduling Q4 FY 2017 – Adjusted Merit Pay Budget Q1 FY 2018 4.5% 4.2% – Adjusted Shift Differ
Slide 20: Capital Allocation
Capital Allocation $150 million+ Anticipated Incremental Capital Available in FY 2019 vs. FY 2018 Capital Allocation Priorities – Anticipated tax reform benefits – Invest in high return growth and profitability – Reduced capital requirements for store upgrades initiatives • Since FY 2009, store base
Slide 21: Capital Allocation – Store Growth
Capital Allocation – Store Growth Fiscal New Acquired Store Count Year Builds Stores 2014 44 28 2,073 1,978 2015 45 36 1,931 1,878 2016 51 5 1,808 2017 48 22 2018 85 26 2019 Guidance: Build 60 stores, Acquire 20+ stores 2014 2015 2016 2017 2018 Fiscal Year
Slide 22: Capital Allocation – Capital Expenditures Budget
Capital Allocation – Capital Expenditures Budget Fiscal 2019 Budget New Store Construction & Acquisitions $318 million Replacements $33 million Maintenance $54 million Transportation & Information Systems $61 million Total Capital Expenditures $466 million
Slide 23: Capital Allocation – Dividends & Share Repurchases
Capital Allocation – Dividends & Share Repurchases Dividends Share Repurchases – 18 Consecutive – Completed Initial $1.04 Years of $300 Million $0.96 Dividend Authorization in $0.88 Increases May 2018 $0.80 – Board Approved $0.72 – New $300 Million A Quarterly Authorization Dividend Through Fiscal 2
Slide 24: Cash Flows and Balance Sheet
Cash Flows and Balance Sheet April 30, 2018 Operating cash flows $420 million Capital expenditures $615 million Cash and cash equivalents $54 million Long-term debt (net of current maturities) $1.3 billion Total shareholders’ equity $1.3 billion Debt : EBITDA 2.8x Financial covenants (Debt : EBITDA)
Slide 25: Diluted Earnings Per Share
Diluted Earnings Per Share Diluted Earnings Per Share 17% total increase in last 5 years $5.73 $4.62 $4.48 $3.81 $3.26 127% total increase in last 10 years 2014 2015 2016 2017 2018* Fiscal Year * Excludes one-time tax benefit from the Tax Cuts and Jobs Act of 2017.
Slide 26: CASY Share Price
CASY Share Price $150 $114.17 $120 $112.00 $112.07 $96.60 $90 $82.18 $68.66 $57.91 $60 $30 CASY CASY Closing Share Price $0 2013 2014 2015 2016 2017 2018 Current* April 30, * As of market close August 31, 2018
Slide 27: Total Shareholder Return
Total Shareholder Return $250 $199 $201 $207 $200 $175 $145 $150 $120 $100 $100 Investment $50 $0 2013 2014 2015 2016 2017 2018 Current* April 30, The graph assumes a $100 investment in the Company’s Common Stock on April 30, 2013 and reinvestment of all * As of market close August 31, 2018 dividend
Slide 28: Annual Shareholders' Meeting
Annual Shareholders’ Meeting
Slide 29: Management Team
Management Team Terry Handley Cindi Summers Kirk Haworth President and Chief Executive Officer Senior VP – Human Resources VP – Real Estate Bill Walljasper Darryl Bacon Sam James Senior VP, Chief Financial Officer VP – Food Service VP – Finance Julie Jackowski Jay Blair James Pisti
Slide 30: Annual Shareholders' Meeting
Annual Shareholders’ Meeting
Slide 31: Thank you for your investment
Thank you for your investment
Caseys General Stores — Shareholder Meeting (September 2018) on 6ix