Caseys General Stores, Inc. (CASY) has reported a 40.06 percent plunge in profit for the quarter ended Jan. 31, 2017. The company has earned $22.84 million, or $0.58 a share in the quarter, compared with $38.10 million, or $0.97 a share for the same period last year.
Revenue during the quarter grew 13.03 percent to $1,769.99 million from $1,565.94 million in the previous year period. Gross margin for the quarter contracted 169 basis points over the previous year period to 22.01 percent. Total expenses were 97.39 percent of quarterly revenues, up from 95.68 percent for the same period last year. That has resulted in a contraction of 172 basis points in operating margin to 2.61 percent.
Operating income for the quarter was $46.16 million, compared with $67.72 million in the previous year period.
"Although pressures in our operating area persisted throughout the quarter, the Company continues to be an industry leader in same-store sales growth," stated Terry Handley, president and chief executive officer. "As a demonstration of our commitment to creating shareholder value, the Board of Directors authorized a new share repurchase program of up to an aggregate of $300 million of the Company's outstanding common stock. We are excited about implementing the share repurchase program while at the same time accelerating future store growth."
Working capital remains negative
Working capital of Caseys General Stores, Inc. was negative $11.05 million on Jan. 31, 2017 compared with negative $55.03 million on Jan. 31, 2016. Current ratio was at 0.97 as on Jan. 31, 2017, up from 0.85 on Jan. 31, 2016.
Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 7 days for the quarter compared with 15 days for the previous year period. At the same time, days payable outstanding went down to 16 days for the quarter from 17 for the same period last year.
Debt moves up
Caseys General Stores, Inc. has witnessed an increase in total debt over the last one year. It stood at $930.37 million as on Jan. 31, 2017, up 9.63 percent or $81.72 million from $848.65 million on Jan. 31, 2016. Total debt was 31.26 percent of total assets as on Jan. 31, 2017, compared with 31.78 percent on Jan. 31, 2016. Debt to equity ratio was at 0.77 as on Jan. 31, 2017, down from 0.81 as on Jan. 31, 2016. Interest coverage ratio deteriorated to 4.37 for the quarter from 6.68 for the same period last year.
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