Casey General Stores : Q2 FY2019 Earnings Release and Webcast

Exhibit 99.1

NEWS RELEASE FOR IMMEDIATE RELEASE
Casey's General Stores, Inc.	Nasdaq Symbol CASY
One SE Convenience Blvd.	CONTACT Bill Walljasper
Ankeny, IA 50021	[phone]

Casey's Reports 41% Growth in Diluted Earnings Per Share in Second Quarter

Ankeny, IA, December 10, 2018 - Casey's General Stores, Inc. ("Casey's" or the "Company") (Nasdaq symbol CASY) today reported diluted earnings per share of $1.80 for the second quarter of fiscal 2019 ended October 31, 2018, compared to $1.28 per share for the same quarter a year ago. "We're moving the Company forward on multiple fronts," said Terry Handley, President and Chief Executive Officer. "The ongoing efforts around operating expense control, combined with a continued focus on strategic pricing, new store openings, and the favorable impact of tax reform produced strong diluted earnings per share growth."

Value Creation Plan Update - The Company has completed or made progress on the following value creation plan activities:

• • Launched the Fleet Card program in late October

• • Continued emphasis on product optimization in fuel program

• • Finalized search for a Director of Fuel Procurement

• • Piloting the fuel price optimization software October through December

• • Optimized merchandise promotions to improve inside margins

• • Onboarded both a Vice President of Digital Customer Experience and a Director of Digital Marketing

Fuel - For the quarter, same-store gallons sold were down 1.1% with an average margin of 20.0 cents per gallon. "With the expanded resources in our fuel team, we have become more proactive at managing retail fuel pricing," said Handley. "Gross profit dollar growth was strong despite same-store gallon movement being under our annual guidance range for the second quarter, due mainly to softer consumer demand. We remain excited about this category moving forward, with product and price optimization, procurement opportunities, and the fleet card program expected to drive future benefits." Total gallons sold for the quarter were up 5.7% to 593.8 million gallons while gross profit dollars increased 7.2% to $118.7 million. Year to date, same-store gallons sold were down 0.3% with an average margin of 20.3 cents per gallon. Year to date, gross profit dollars increased 10.1% to $242.1 million.

Grocery and Other Merchandise - For the quarter, same-store sales were up 2.7% with an average margin of 32.4%. "The grocery and other merchandise category continues to perform well," said Handley. "For the second straight quarter, we realized stronger margins at the high end of our guidance range, which drove gross profit dollar growth. The packaged beverage and other tobacco subcategories led the way in contributing to that growth." For the second quarter, total grocery and other merchandise revenue increased 8.1% to $618.3 million, and gross profit dollars were up 9.3% to $200.2 million. Total revenue for the first six months was up 8.0% to $1.3 billion. Same-store sales year to date were up 2.9% with an average margin of 32.4%.

Prepared Food and Fountain - Same-store sales for the quarter were up 2.2% with an average margin of 62.4%. "Strategic price increases helped expand margin in the quarter in a competitive environment," said Handley. "Our breakfast daypart continues to be a strong contributor to overall results." Total prepared food and fountain revenue increased 8.0% to $283.1 million in the second quarter while gross profit dollars grew 10.1% to $176.7 million. For the first six months, total revenue increased 7.7% to $564.1 million. Year to date, same-store sales were up 2.0% with an average margin of 62.2%.

Operating Expenses - For the second quarter, total operating expenses increased 6.6% to $344.2 million. Year to date, operating expenses are up 9.2%. Same-store operating expenses excluding credit card fees were down 0.1% for the quarter. The increase in total operating expenses was primarily attributable to operating 94 more stores than the same quarter in the prior year. "Our second quarter results demonstrated our commitment to effectively controlling operating expenses," noted Handley. "Despite higher credit card fees and fleet fuel expenses, our team was able to continue to drive same-store operating expenses down in the second quarter as compared to prior year. The largest contributor to that success was the continued efforts around managing the hours worked at our stores."

Expansion - The following table represents the roll forward of store growth through the second quarter of fiscal 2019:

Store Count

Stores at 4/30/18

2,073

New Store Construction 25

Acquisitions

3

Acquisitions not opened (2)

Prior Acquisitions opened

4

Closed (6)

Stores at 10/31/18

2,097

The Company had 23 acquisition stores under agreement to purchase and a land bank of 95 sites (in addition to 36 that were under construction) as of October 31, 2018. "We are pleased with our current growth opportunities," said Handley. "We remain encouraged with the acquisition environment and will continue to be a disciplined buyer. Combining acquisitions with our organic growth pipeline gives us the agility to pull multiple levers to drive further expansion."

Share Repurchase Program- The Company has $300 million remaining on its authorization from March 2018. There were no repurchases made against that authorization in the second quarter.

Dividend - At its December meeting, the Board of Directors declared a quarterly dividend of $0.29 per share. The dividend is payable February 15, 2019 to shareholders of record on February 1, 2019.

Fiscal 2019 Guidance -Below is a summary of the current fiscal 2019 guidance:

Same-store Sales Margin

Previous

Current

Previous

Current

Fuel (Gallons and CPG)

1.5 - 3.0%

(1.0%) - 0.5% 18.5 - 20.5 19.0 - 21.0

Grocery and Other Merchandise

1.5 - 3.0%

1.5 - 3.0%

31.5 - 32.5%

31.5 - 32.5%

Prepared Food and Fountain

1.5 - 3.5% 1.5 - 3.5% 60.0 - 62.0% 60.0 - 62.0%

Previous

Current

Operating Expenses

Depreciation and Amortization

14.0 - 16.0% 13.0 - 15.0%

New Store Construction

8.5 - 10.5% 60 stores

8.5 - 10.5% 60 stores

Acquisitions

20+ stores 20+ stores

****

Casey's General Stores, Inc.

Condensed Consolidated

Statements of Income

(Dollars in thousands, except share and per share amounts) (Unaudited)

Three Months Ended

October 31,

Six Months Ended

October 31,

2018

2017

2018

2017

Total revenue

$

2,538,005

$

2,153,745

$

5,126,437

$

4,247,484

Cost of goods sold (exclusive of depreciation and amortization, shown separately below)

Operating expenses Depreciation and amortization

2,027,684 344,18661,356

1,686,088 322,94954,157

4,094,348

3,303,130

703,578644,196

120,196 106,526

Interest, net

14,191

12,976

28,597

24,351

77,575

Income before income taxes

90,588

179,718 169,281

Federal and state income taxes

23,973

28,657

42,879

63,605

136,839 $ 105,676

Net income

$

66,615 $

Net income per common share

48,918 $

Basic

$

1.82 $

1.29 $

3.73 $

2.77

Diluted

$

1.80

$

1.28

$

3.70

$

2.75

Basic weighted average shares

36,698,528

37,804,649

36,683,450 38,108,105

Plus effect of stock compensation

318,943

378,950

314,181

379,802

Diluted weighted average shares

37,017,471

38,183,599

36,997,631 38,487,907

Casey's General Stores, Inc. Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

October 31, 2018

April 30, 2018

Assets

Current assets

Cash and cash equivalents $ 51,887

$ 53,679

Receivables

46,875 45,045

Inventories 258,644

241,668

Prepaid expenses

7,923 5,766

Income tax receivable 16,849

50,682

Total current assets

382,178 396,840

Other assets, net of amortization 39,813

29,909

140,623 140,258

Goodwill

Property and equipment, net of accumulated depreciation of $1,715,433 at October 31, 2018 and $1,611,177 at April 30, 2018 2,983,043	2,902,920

3,545,657 $

Total assets

$

3,469,927

Liabilities and Shareholders' Equity

Current liabilities

Notes payable to bank $ -

$ 39,600

15,374

Current maturities of long-term debt

15,384

Accounts payable 324,806

321,419

131,457

Accrued expenses

130,786

Total current liabilities 470,976

507,850

1,283,992 1,291,725

Long-term debt, net of current maturities

Deferred income taxes 374,665

341,946

Deferred compensation

15,584 15,928

Insurance accruals, net of current portion

20,155 19,748

Other long-term liabilities

23,206 21,589

Total liabilities 2,188,578

2,198,786

Total shareholders' equity

1,357,079

1,271,141

Total liabilities and shareholders' equity

$

3,545,657

$

3,469,927

Certain statements in this news release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied by those statements, including our ability to execute our value creation plan or to realize benefits therefrom. Casey's disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

Summary by Category (Amounts in thousands)

Three months ended 10/31/2018

Grocery &Fuel

Other Merchandise

Prepared Food & Fountain

Revenue $

1,621,868

$

618,250

$

283,062

$

14,825

$

2,538,005

Revenue less cost of goods sold (exclusive of depreciation and amortization)

$

118,656

$

200,193

$

176,675

Other	Total
$	14,797	$	510,321

7.3%

32.4%

62.4%

99.8%

20.1%

%

Fuel gallons

593,750

Three months ended 10/31/2017

Revenue

$

1,306,246

$

572,151

$

261,998

$

13,350

$

2,153,745

Revenue less cost of goods sold (exclusive of depreciation and amortization) $ 110,686

$ 183,133

$ 160,510

$ 13,328

$ 467,657

8.5 %

32.0 %

61.3 %

99.8 %

21.7 %

Fuel gallons 561,692

Summary by Category (Amounts in thousands)

Six months ended 10/31/2018 Fuel

Grocery & Other Merchandise

Prepared Food & Fountain

Other

Total

Revenue

• $ 3,269,285

  $

  1,263,050

  $

  564,065

  $

  30,037

  $

  5,126,437

  Revenue less cost of goods sold (exclusive of depreciation and amortization) $ 242,132

  $ 409,119

  $ 350,859

  $ 29,979

  $ 1,032,089

  7.4%

  Fuel gallons

  Six months ended 10/31/2017

  32.4%

  62.2%

  99.8%

  20.1%

  1,195,545

  Revenue $ 2,527,231

  $ 1,169,565

  $ 523,838

  $ 26,850

  $ 4,247,484

  Revenue less cost of goods sold (exclusive of depreciation and amortization)

• $ 219,898

$

373,497

$

324,155

$

26,804

$

944,354

8.7 %

31.9 %

61.9 %

99.8 %

22.2 %

%

Fuel gallons

1,126,739

Fuel Gallons Same-store Sales

Q1

• F2019 0.5%

• F2018 1.7

Q2

Q3

Q4

Fiscal Year

(1.1)%

1.9

3.8%

2.0%

2.3%

F2017 3.1

3.7

2.6

(0.5)

2.1

Grocery & Other Merchandise

Same-store Sales

Q1

• F2019 3.2%

• F2018 3.1

Q2

Q3

Q4

Fiscal Year

2.7%

2.5

2.5%

(0.4)%

1.9%

F2017 4.7

3.1

3.0

1.5

2.9

Prepared Food & Fountain

Same-store Sales

Q1

• F2019 1.7%

• F2018 3.7

Q2

Q3

Q4

Fiscal Year

2.2%

2.1

1.7%

(1.3)%

1.7%

F2017 5.1

5.1

5.8

3.2

4.8

(Cents per gallon, excluding credit card fees)Q1

• F2019 20.5¢

• F2018 19.3

Fuel Margin

Q2

Q3

Q4

Fiscal Year

20.0¢

19.7

18.6¢

16.3¢

18.5¢

F2017 19.5

18.6

17.9

17.2

18.4

Grocery & Other Merchandise

Q1

• F2019 32.4%

• F2018 31.9

Margin

Q2

Q3

Q4

Fiscal Year

32.4%

32.0

31.9%

31.2%

31.8%

F2017 31.6

32.0

31.1

31.1

31.5

Prepared Food & Fountain

Q1

• F2019 62.0%

• F2018 62.5

Margin

Q2

Q3

Q4

Fiscal Year

62.4%

61.3

60.5%

59.7%

61.0%

F2017 62.8

62.9

61.7

61.7

62.3