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What changed in CASEYS GENERAL STORES INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of CASEYS GENERAL STORES INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+201 added−212 removedSource: 10-K (2023-06-23) vs 10-K (2022-06-24)

Top changes in CASEYS GENERAL STORES INC's 2023 10-K

201 paragraphs added · 212 removed · 168 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

58 edited+7 added−8 removed25 unchanged
Biggest changeOur sales historically have been strongest during the first and second fiscal quarters (May through October) relative to the third and fourth fiscal quarters (November through April). In warmer weather, guests tend to purchase greater quantities of fuel and certain convenience items such as beer, sports drinks, water, soft drinks, and ice.
Biggest changeThe Company derives its revenue primarily from the retail sale of fuel and the products offered in our stores. Our sales historically have been strongest during the first and second fiscal quarters (May through October) relative to the third and fourth 4 fiscal quarters (November through April).
CRC owns and/or operates certain stores in Illinois, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Michigan, holds the rights to the Company's trademarks, service marks, trade names, and other intellectual property, and performs most “corporate” functions of the enterprise.
CRC owns and/or operates certain stores in Illinois, Kansas, Michigan, Minnesota, Nebraska, North Dakota, and South Dakota, holds the rights to the Company's trademarks, service marks, trade names, and other intellectual property, and performs most “corporate” functions of the enterprise.
We believe we have no material joint and several environmental liability with other parties. Age Restricted Products Almost all of our stores sell a variety age-restricted products, which may include beer, liquor, tobacco and other nicotine products.
We believe we have no material joint and several environmental liability with other parties. Age-Restricted Products Almost all of our stores sell a variety of age-restricted products, which may include beer, liquor, tobacco and other nicotine products.
Examples of convenience store chains competing in the larger towns served by Casey’s include Quik Trip, Kwik Trip, Kum & Go, and other regional chains. These competitive factors are discussed further in Item 7 of this Form 10-K.
Examples of convenience store chains competing in the larger towns served by Casey’s include Quik Trip, Kwik Trip/Star, Kum & Go, and other regional chains. These competitive factors are discussed further in Item 7 of this Form 10-K.
For the years ended April 30, 2022 and 2021, we spent approximately $577 and $849, respectively, for assessments and remediation. Substantially all of these expenditures were submitted for reimbursement from state-sponsored trust fund programs. The payments are typically subject to statutory provisions requiring repayment of the reimbursed funds for noncompliance with upgrade provisions or other applicable laws.
For the years ended April 30, 2023, 2022, and 2021, we spent approximately $653, $577, and $849 respectively, for assessments and remediation. Substantially all of these expenditures were submitted for reimbursement from state-sponsored trust fund programs. The payments are typically subject to statutory provisions requiring repayment of the reimbursed funds for noncompliance with upgrade provisions or other applicable laws.
Our assortment includes product across the following categories: • non-alcoholic beverages (soft drinks, energy, water, sports drinks, juices, coffee, tea & dairy) • alcoholic beverages (beer, wine and spirits) • packaged foods (snacks, candy, packaged bakery & other food items) • tobacco & nicotine products 5 • frozen foods (ice, ice cream, meals & appetizers) • non-foods (health & beauty aids, automotive, electronic accessories, housewares and pet supplies) • services (lotto/lottery & prepaid cards) All but four stores offer retail motor fuel products for sale on a self-service basis.
Our assortment includes product across the following categories: • non-alcoholic beverages (soft drinks, energy, water, sports drinks, juices, coffee, tea and dairy) • alcoholic beverages (beer, wine and spirits) • packaged foods (snacks, candy, packaged bakery and other food items) • tobacco and nicotine products • frozen foods (ice, ice cream, meals and appetizers) • non-foods (health and beauty aids, automotive, electronic accessories, housewares and pet supplies) • services (ATM, lotto/lottery and prepaid cards) 5 All but seven stores offer retail motor fuel products for sale on a self-service basis.
Most of our existing and proposed stores are within the three distribution centers' optimum efficiency range—a radius of approximately 500 miles around each distribution center. In fiscal 2022, a majority of the food and nonfood items supplied to stores through the distribution centers were purchased directly from manufacturers.
Most of our existing and proposed stores are within the three distribution centers' optimum efficiency range—a radius of approximately 500 miles around each distribution center. In fiscal 2023, a majority of the food and nonfood items supplied to stores through the distribution centers were purchased directly from manufacturers.
Stores located in more heavily populated communities may compete with local and national grocery and drug store chains, quick serve restaurants, expanded fuel stations, supermarkets, discount food stores, and traditional convenience stores. In addition to our inside store products, the fuel business is also highly competitive.
Stores located in more heavily populated communities may compete with local and national grocery and drug store chains, quick service restaurants, expanded fuel stations, supermarkets, discount food stores, and traditional convenience stores. In addition to our inside store products, the fuel business is also highly competitive.
Core Values During the 2022 fiscal year, the Company unveiled its new core values to its Team Members, as part of its evolution to build a culture of commitment – Casey’s CARES: C – Commitment: We work hard to be the best and have a good time doing it.
Core Values During the prior fiscal year, the Company unveiled its new core values to its Team Members, as part of its evolution to build a culture of commitment – Casey’s CARES: C – Commitment: We work hard to be the best and have a good time doing it.
None of the reimbursements received are currently expected to be repaid by the Company to the trust fund programs. At April 30, 2022, we had an accrued liability of $274 for estimated expenses related to anticipated corrective actions or remediation efforts, including relevant legal and consulting costs.
None of the reimbursements received are currently expected to be repaid by the Company to the trust fund programs. At April 30, 2023 and 2022 we had an accrued liability of $268 and $274, respectively, for estimated expenses related to anticipated corrective actions or remediation efforts, including relevant legal and consulting costs.
Additionally, you can go to our website to read our Financial Code of Ethics for the CEO and Senior Financial Officers, Corporate Governance Guidelines, Code of Business Conduct and Ethics, and committee charters. In the event of a waiver to the Code of Business Conduct and Ethics, any required disclosure will be posted to our website.
Additionally, you can go to our website to read our Financial Code of Ethics for the CEO and Senior Financial Officers, Corporate Governance Guidelines, Code of Business Conduct and Ethics, and committee charters. In the event of a waiver from, or updates to, the Code of Business Conduct and Ethics, any required disclosure will be posted to our website.
All convenience stores carry a broad selection of food items (including, but not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, health and beauty aids, automotive products, and other nonfood items. As of April 30, 2022, 212 store locations offered car washes.
All convenience stores carry a broad selection of food items (including, but not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, health and beauty aids, automotive products, and other nonfood items. As of April 30, 2023, 217 store locations offered car washes.
Each new store typically includes 4 to 8 islands of fuel dispensers and storage tanks with capacity for 60,000 to 70,000 gallons of fuel. The merchandising display follows a standard layout designed to encourage a flow of guest traffic through all sections of every store. All stores are air-conditioned and have modern refrigeration equipment.
Each new store typically includes 4 to 6 islands of fuel dispensers and storage tanks with capacity for 44,000 to 70,000 gallons of fuel. The merchandising display follows a standard layout designed to encourage a flow of guest traffic through all sections of every store. All stores are air-conditioned and have modern refrigeration equipment.
The Company operates three distribution centers - in Ankeny, Iowa adjacent, to our corporate headquarters, which we refer to as our Store Support Center, in Terre Haute, Indiana and in Joplin, Missouri - from which certain grocery and general merchandise items are supplied to our stores, primarily by our Company-operated delivery fleet.
The Company operates three distribution centers - in Ankeny, Iowa adjacent to our corporate headquarters, which we refer to as our Store Support Center, in Terre Haute, Indiana and in Joplin, Missouri - from which certain grocery and general merchandise and prepared food and dispensed beverage items are supplied to our stores by our Company-operated delivery fleet.
The selection is a blend of differentiated private label products (which now includes over 250 items and as of April 30, 2022), as well as favored national and regional brands, many of which can be found in larger format stores.
The selection is a blend of differentiated private label products (which now includes over 300 items as of April 30, 2023), as well as favored national and regional brands, many of which can be found in larger format stores.
Revenue less cost of goods sold (excluding depreciation and amortization) as a percentage of revenue on prepared food items averaged approximately 60% for the three fiscal years ended April 30, 2022—substantially higher than the impact of retail sales of fuel, which averaged approximately 12%. Each Casey’s store typically carries over 3,000 food and non-food items.
Revenue less cost of goods sold (excluding depreciation and amortization) as a percentage of revenue on prepared food items averaged approximately 59% for the three fiscal years ended April 30, 2023—substantially higher than the impact of retail sales of fuel, which averaged approximately 12%. Each Casey’s store typically carries over 3,000 packaged food, beverage and non-food items.
In the last three fiscal years, retail sales of nonfuel items have generated about 40% of our total revenue, but they have resulted in approximately 68% of our revenue less cost of goods sold (excluding depreciation and amortization).
In the last three fiscal years, retail sales of nonfuel items have generated about 37% of our total revenue, but they have resulted in approximately 66% of our revenue less cost of goods sold (excluding depreciation and amortization).
Jewell Company, Inc., a Nebraska corporation. However, the Company is in the process of merging these subsidiaries into the applicable Company legacy entities, described above.
Jewell Company, Inc., a Nebraska corporation. T he Company is in the process of merging these subsidiaries into the applicable Company legacy entities, described above.
"Casey’s Pizza", "Casey's Here for Good", “Casey’s Rewards”, “Casey’s Cash”, "GoodStop (by Casey's)" etc.). 8 Government Regulation (dollars in thousands) Underground Storage Tanks The United States Environmental Protection Agency and several states, including Iowa, have established requirements for owners and operators of underground fuel storage tanks (USTs) with regard to (i) maintenance of leak detection, corrosion protection, and overfill/spill protection systems; (ii) upgrade of existing tanks; (iii) actions required in the event of a detected leak; (iv) prevention of leakage through tank closings; and (v) required fuel inventory record keeping.
Government Regulation (dollars in thousands) Underground Storage Tanks The United States Environmental Protection Agency and several states, including Iowa, have established requirements for owners and operators of underground fuel storage tanks (USTs) with regard to (i) maintenance of leak detection, corrosion protection, and overfill/spill protection systems; (ii) upgrade of existing tanks; (iii) actions required in the event of a detected 8 leak; (iv) prevention of leakage through tank closings; and (v) required fuel inventory record keeping.
ITEM 1. BUSINESS The Company As of April 30, 2022, Casey’s General Stores, Inc. and its direct and indirect wholly-owned subsidiaries operate convenience stores primarily under the names "Casey's" and “Casey’s General Store" (collectively, with the stores below referenced as "GoodStop" or "Bucky's", referred to as "Casey's" or the "Company") throughout 16 states, primarily in Iowa, Missouri, and Illinois.
BUSINESS The Company As of April 30, 2023, Casey’s General Stores, Inc. and its direct and indirect wholly-owned subsidiaries operate convenience stores primarily under the names "Casey's" and "Casey’s General Store" (collectively, with the stores below referenced as "GoodStop", "Bucky's" or "Minit Mart", referred to as "Casey's" or the "Company") throughout 16 states, primarily in Iowa, Missouri, and Illinois.
Finally, as of April 30, 2022, the Company was selling donuts in 2,350 (95.8%) of our stores in addition to cookies, brownies, and other bakery items. The growth in our prepared food program reflects the Company’s strategy to promote high-margin products that are compatible with convenience store operations.
Finally, as of April 30, 2023, the Company was selling donuts in 2,449 (97%) of our stores in addition to cookies, brownies, and other bakery items. The growth in our prepared food program reflects the Company’s strategy to promote high-margin products that are compatible with convenience store operations.
In addition, the acquisition of Buchanan Energy during the fiscal year (see Note 2 to the consolidated financial statement) resulted in the addition of several subsidiaries to the Company’s corporate structure, including Bucks, LLC, a Nebraska limited liability company, Buchanan Energy (N), LLC and Buchanan Energy (S), LLC, each Delaware limited liability companies, Buck’s, LLC of Collinsville, an Illinois limited liability company, and C.T.
In addition, the acquisition of Buchanan Energy during the prior fiscal year resulted in the addition of several subsidiaries to the Company’s corporate structure, including Bucks, LLC, a Nebraska limited liability company, Buchanan Energy (N), LLC and Buchanan Energy (S), LLC, each Delaware limited liability companies, Buck’s, LLC of Collinsville, an Illinois limited liability company, and C.T.
In addition, we have expanded our prepared food offerings, which currently includes made to order cheesy breadsticks, sandwiches and wraps, chicken wings, chicken tenders, breakfast croissants and biscuits, breakfast pizza, breakfast burritos, hash browns, burgers, and other seasonal items.
In addition, we have expanded our prepared food offerings, which currently includes made to order cheesy breadsticks, sandwiches and wraps, chicken wings, chicken tenders, breakfast croissants and biscuits, breakfast pizza, breakfast burritos, hash browns, burgers, and bakery items which includes include donuts, cookies and brownies as well as other seasonal items.
Casey’s, with its principal business office, and Store Support Center located at One SE Convenience Blvd., Ankeny, Iowa 50021-8045 (telephone 515-965-6100), was incorporated in Iowa in 1967. General Casey's corporate purpose is to make the lives of our guests and communities better every day.
Casey’s, with its principal business office, and Store Support Center, located at One SE Convenience Blvd., Ankeny, Iowa 50021-8045 (telephone 515-965-6100), was incorporated in Iowa in 1967. Our fiscal year runs from May 1 through April 30 of each year. General Casey's corporate purpose is to make the lives of our guests and communities better every day.
CMC owns and/or operates stores in Arkansas, Indiana, Iowa, Kentucky, Missouri, Ohio, Oklahoma, and Wisconsin, and is responsible for all of our wholesale operations, including all three distribution centers and management of the wholesale fuel network. CGS Stores, LLC owns and/or operates stores in Tennessee.
CMC owns and/or operates stores in Arkansas, Indiana, Iowa, Kentucky, Missouri, Ohio, Oklahoma, and Wisconsin, and is responsible for all of our wholesale operations, including all three distribution centers and management of the wholesale fuel network. CGS Stores, LLC owns and/or operates stores in Tennessee. CSC provides a variety of construction, maintenance and transportation services for all stores.
The Company's flagship product is its handmade pizza, which we began preparing and selling in 1984. It was available in 2,332 stores (95.1%) as of April 30, 2022.
The Company's flagship product is its handmade pizza, which we began preparing and selling in 1984. It was available in 2,465 stores (98%) as of April 30, 2023.
The following table summarizes (dollars and gallons in thousands) retail fuel sales for the last three fiscal years ended April 30: Year ended April 30, 2022 2021 2020 Number of gallons sold 2,579,179 2,180,772 2,293,609 Total retail fuel sales $ 8,312,038 $ 4,825,466 $ 5,517,412 Percentage of total revenue 64.2 % 55.4 % 60.1 % Percentage of revenue less cost of goods sold (excluding depreciation and amortization and credit card fees) 11.2 % 15.8 % 11.1 % Average retail price per gallon $ 3.22 $ 2.21 $ 2.41 Average revenue less cost of goods sold per gallon (excluding depreciation and amortization and credit card fees) 36.01 ¢ 34.91 ¢ 26.81 ¢ Average number of gallons sold per store* 1,047 981 1,055 * Includes only those stores in operation at least one full year on April 30 of the fiscal year indicated.
The following table summarizes (dollars and gallons in thousands) retail fuel sales for the last three fiscal years ended April 30: Year ended April 30, 2023 2022 2021 Number of gallons sold 2,672,366 2,579,179 2,180,772 Total retail fuel sales $ 10,027,310 $ 8,312,038 $ 4,825,466 Percentage of total revenue 66.4 % 64.2 % 55.4 % Percentage of revenue less cost of goods sold (excluding depreciation and amortization) 10.7 % 11.2 % 15.8 % Average retail price per gallon $ 3.75 $ 3.22 $ 2.21 Average revenue less cost of goods sold per gallon (excluding depreciation and amortization) 40.22 ¢ 36.01 ¢ 34.91 ¢ Average number of gallons sold per store* 1,092 1,047 981 * Includes only those stores in operation at least one full year on April 30 of the fiscal year indicated.
We currently own most of our real estate, including substantially all of our stores, all three distribution centers (see discussion of ownership structure of the distribution center in Joplin, Missouri in Note 7), a construction and support services facility located in Ankeny, Iowa, and the Store Support Center facility. 4 The Company derives its revenue primarily from the retail sale of fuel and the products offered in our stores.
We currently own most of our real estate, including substantially all of our stores, all three distribution centers (see discussion of ownership structure of the distribution center in Joplin, Missouri in Note 7), a construction and support services facility located in Ankeny, Iowa, and the Store Support Center facility.
Average retail prices of fuel during the year increased 45.7% from prior year. Fuel prices have recently reached record highs due to overall supply issues, as refiners cut production levels in response to a slowing economy during the COVID-19 pandemic and Russia's invasion of Ukraine resulted in a United States ban of Russian crude oil imports.
Fuel prices increased at the end of the prior fiscal year due to overall supply issues, as refiners cut production levels in response to a slowing economy during the COVID-19 pandemic and as Russia's invasion of Ukraine resulted in a United States ban of Russian crude oil imports.
Approximately 40,032 are store Team Members, approximately 263 are field management and related Team Members, approximately 555 work in and support our three distribution centers, approximately 470 are fuel or grocery drivers and approximately 1,161 work out of the Store Support Center, or perform Store Support Center functions which support the organization.
Approximately 94% are store Team Members, 1% are field management and related Team Members, 1% work in and support our three distribution centers, 1% are fuel or grocery drivers and 3% work out of the Store Support Center, or perform Store Support Center functions.
The stores place orders for merchandise electronically to the Store Support Center, and the orders are filled with shipments in Company-operated delivery trucks from one of the distribution centers, based on route optimization for the fleet network.
Distribution and Wholesale Arrangements CMC supplies all stores with groceries, food, health and beauty aids, and general merchandise from our three distribution centers. The stores place orders for merchandise electronically to the Store Support Center, and the orders are filled with shipments in Company-operated delivery trucks from one of the distribution centers, based on route optimization for the fleet network.
The names "Casey’s", “Casey’s General Store”, and "GoodStop (by Casey's)", the marks consisting of the Casey’s design logos (with the words “Casey’s” and “Casey’s General Store”), the weather vane, and certain of our private label product names, are registered trademarks and service marks under federal law.
The names "Casey’s", “Casey’s General Store”, and "GoodStop (by Casey's)", the marks consisting of the Casey’s design logos (with the words “Casey’s” and “Casey’s General Store”), the weathervane, and certain of our private label product names, are registered trademarks and service marks under federal law. We believe these marks are of material importance in promoting and advertising the Company’s business.
The Company is also temporarily operating certain locations acquired from Buchanan Energy during the fiscal year under the name, "Bucky's." The Company is in the process of transitioning all "Bucky's" locations to either the "Casey's" or "GoodStop" brand. These locations typically have similar offerings to the “Casey’s” branded stores.
The Company is also temporarily operating certain locations acquired from Buchanan Energy during the prior fiscal year under the name "Bucky's" and certain locations acquired from Minit Mart LLC during the current fiscal year under the name "Minit Mart." The Company is in the process of transitioning all "Bucky's" and "Minit Mart" locations to either the "Casey's" or "GoodStop" brand.
In addition to the products discussed above, CMC supplies the majority of fuel to our stores. We have entered into various purchase agreements related to our fuel supply, which include varying volume commitments. Prices included in the purchase agreements are indexed to market prices. Additionally, during the fiscal year we acquired a fuel wholesale network from Buchanan Energy.
In addition to the products discussed above, CMC supplies all fuel to our stores, and supplies fuel on a wholesale basis as part of a dealer network to 76 locations. We have entered into various purchase agreements related to our fuel supply, which include varying volume commitments. Prices included in the purchase agreements are indexed to market prices.
The Company also self-distributes the majority of fuel to our stores. The Company has a fleet of 365 tractors used for grocery and fuel distribution. Our fiscal year runs from May 1 through April 30 of each year. The Company’s internet address is www.caseys.com.
The Company also self-distributes the majority of fuel to our stores. The Company has a fleet of 397 tractors used for distribution. The Company’s internet address is www.caseys.com.
Gallons sold were positively impacted by a growing store count as we operate 209 more stores than the prior year and increasing store traffic. Average revenue less cost of goods sold (excluding depreciation and amortization and credit card fees) per gallon increased by 3.2%.
The total number of gallons sold during this period increased by 3.6%. Gallons sold were positively impacted by a growing store count as we operated 69 more stores than the prior year. Average revenue less cost of goods sold (excluding 6 depreciation and amortization) per gallon increased by 11.7%.
Heartland Property Company, LLC was organized as a Delaware limited liability company in September 2019. CMC, CSC, and CRC are wholly-owned subsidiaries of Casey’s, while CGS Stores, LLC and Heartland Property Company, LLC are wholly-owned subsidiaries of CMC.
CMC, CSC, and CRC are wholly-owned subsidiaries of Casey’s, while CGS Stores, LLC and Heartland Property Company, LLC are wholly-owned subsidiaries of CMC.
As part of the dealer network, the Company procures and provides fuel on a wholesale basis to 76 locations. Human Capital Our employees, who we refer to as Team Members, are critical to our business operations and the success of the Company. As of April 30, 2022, we had 20,451 full-time, and 22,030 part-time, Team Members.
Human Capital Our employees, who we refer to as Team Members, are critical to our business operations and the success of the Company. As of April 30, 2023, we had 20,292 full-time, and 22,690 part-time, Team Members.
Points earned can be redeemed for donations to a local school of the guest's choice, fuel discounts, or Casey's Cash, which can be used on most products. The Rewards program is delivered through Casey’s mobile application.
Points earned can be redeemed for donations to a local school of the guest's choice, fuel discounts, or Casey's Cash, which can be used on many products sold in our stores. The Rewards program is delivered through Casey’s mobile application. In addition to earning points, guests may receive other program benefits such as special offers and bonus points.
In addition, all but four offer fuel for sale on a self-service basis. During the fiscal year, the Company introduced certain stores branded or rebranded as "GoodStop (by Casey’s)". Similar to most of our store footprint, the "GoodStop" locations offer fuel for sale on a self-serve basis, and a broad selection of snacks, beverages, tobacco products, and other essentials.
In addition, all but seven store locations offer fuel for sale on a self-service basis. During the prior fiscal year, the Company introduced certain stores branded or rebranded as "GoodStop (by Casey’s)".
Our store-site selection criteria emphasize the population of the immediate area and daily highway traffic volume. Retail Fuel Operations Retail fuel sales are an important part of our revenue and earnings. Approximately 64% of total revenue for the year ended April 30, 2022 was derived from the retail sale of fuel.
Retail Fuel Operations Retail fuel sales are an important part of our revenue and earnings. Approximately 66% of total revenue for the year ended April 30, 2023 was derived from the retail sale of fuel.
Education and Training The Company, including its established Learning and Development Department, which serves all levels of the organization, invests significant time and resources in educating and training Team Members by providing them with educational, development and leadership opportunities. These opportunities are provided through a mix of formal onboarding training, safety training, in-person classes, virtual modules and “on-the-job” learning.
In addition, the company has expanded its learning related to unconscious bias and critical conversations through formal training. Education and Training The Company, including its established Learning and Development Department, which serves all levels of the organization, invests significant time and resources in educating and training Team Members by providing them with educational, development and leadership opportunities.
Our centralized fuel team, coupled with fuel procurement improvements, continues to grow profitability and has been instrumental in sustaining higher than normal average revenue less cost of goods sold per gallon (excluding depreciation and amortization and credit card fees).
Our centralized fuel team, coupled with fuel procurement improvements, has grown fuel profitability and has been instrumental in sustaining higher than historically typical average revenue less cost of goods sold per gallon (excluding depreciation and amortization). Percentage of revenue less cost of goods sold (excluding depreciation and amortization) represents the fuel gross profit divided by the gross fuel sales dollars.
Diversity and Inclusion The Company is committed to building a diverse and inclusive workforce across the organization, which it believes is set by example with its Board of Directors and extended leadership team.
We also increased participation and 7 utilization of Casey's Team Member Support Fund, which is designed to help team members facing financial hardships due to catastrophic circumstances. Diversity and Inclusion The Company is committed to building a diverse and inclusive workforce across the organization, which it believes is set by example with its Board of Directors and extended leadership team.
We believe these marks are of material importance in promoting and advertising the Company’s business. In addition, the Company has a number of other registered and unregistered trademarks and service marks that are significant to the Company from an operational and branding perspective (e.g.
In addition, the Company has a number of other registered and unregistered trademarks and service marks that are significant to the Company from an operational and branding perspective (e.g. "Casey’s Pizza", "Casey's Here for Good", “Casey’s Rewards”, “Casey’s Cash”, etc.).
Approximately 51% of all stores in the Company were opened in areas with populations of fewer than 5,000 persons, while approximately 25% of our stores were opened in communities with populations of more than 20,000 persons.
These locations are not operated by Casey's and are not included in our overall store count. Approximately 50% of all stores in the Company were opened in areas with populations of fewer than 5,000 persons, while approximately 26% of our stores were opened in communities with populations of more than 20,000 persons.
Store Locations The Company historically has located many of its stores in smaller towns not served by national-chain convenience stores. It believes that a Casey’s store provides a service generally not otherwise available in smaller towns and that a convenience store in an area with limited population can be profitable if it stresses sales volume and competitive prices.
We believe that a Casey’s store provides a service generally not otherwise available in smaller towns and that a convenience store in an area with limited population can be profitable if it stresses sales volume and competitive prices. Our store-site selection criteria emphasize the population of the immediate area and daily highway traffic volume.
Store Design Casey’s constructs stores that are primarily freestanding and, with a few exceptions to accommodate local conditions, conform to standard construction specifications. The current larger store design measures approximately 2,450 square feet devoted to sales area, 550 square feet to kitchen space, 400 square feet to storage, and 2 large multi-stall public restrooms.
The current larger store design measures approximately 2,550 square feet devoted to sales area, 550 square feet to kitchen space, 400 square feet to storage, and 2 large multi-stall public restrooms.
The Company also operates two stores selling primarily tobacco and nicotine products, one liquor-only store, and one grocery store. The Company acquired a dealer network from Buchanan Energy during the 2022 fiscal year. As of April 30, 2022, there were 76 dealer locations where Casey’s manages fuel wholesale supply agreements to these stores.
These locations typically have similar offerings to the "Casey’s" or "GoodStop" branded stores. The Company also operates two stores selling primarily tobacco and nicotine products, one liquor-only store, and one grocery store. The Company has 76 dealer locations, where Casey’s manages fuel wholesale supply agreements to these stores.
Total Rewards 7 We believe that the future success of the Company depends in large part on our ability to attract, train, retain, and motivate qualified Team Members. As such, we are committed to providing market-competitive pay and benefits for all positions and offer performance-based compensation opportunities to a large portion of our full-time Team Member base.
As such, we are committed to providing market-competitive pay and benefits for all positions and offer performance-based compensation opportunities to certain of our full-time Team Member base.
For example, through its virtual modules, the Company offers over 200 hours of educational opportunities through over 400 classes, for which there were over 1.5 million enrollments during the 2022 fiscal year.
These opportunities are provided through a mix of formal onboarding training, safety training, in-person classes, virtual modules and “on-the-job” learning. For example, through its virtual modules, the Company offers over 500 hours of educational opportunities through over 600 classes, for which there were almost 1 million enrollments during the 2023 fiscal year.
During the 2022 fiscal year, the Company also established a formal Diversity, Equity and Inclusion Committee to enhance its already strong culture of belonging and empowerment for all Team Members.
We have four team member resource groups which further enhance the diversity, equity and inclusion culture at Casey's: Women in Leadership, Veterans, Faith and LGBTQ. The Company has also established a formal Diversity, Equity and Inclusion Committee to further promote the already strong culture of belonging and empowerment for all Team Members.
However, these locations typically do not have a kitchen and have limited prepared food offerings. As of April 30, 2022, 46 stores operate under the "GoodStop" brand.
Similar to most of our store footprint, the "GoodStop" locations offer fuel for sale on a self-serve basis, and a broad selection of snacks, beverages, tobacco products, and other essentials. However, these locations typically do not have a kitchen and have limited prepared food offerings. As of April 30, 2023, 43 stores operate under the "GoodStop" brand.
Corporate Subsidiaries Casey's Marketing Company ("CMC") and Casey's Services Company ("CSC") were organized as Iowa corporations in March 1995. Casey’s Retail Company ("CRC") was organized as an Iowa corporation in April 2004. CGS Stores, LLC was organized as an Iowa limited liability company in April 2019.
In warmer weather, guests tend to purchase greater quantities of fuel and certain convenience items such as beer, sports drinks, water, soft drinks, and ice. Corporate Subsidiaries Casey's Marketing Company ("CMC") and Casey's Services Company ("CSC") were organized as Iowa corporations in March 1995. Casey’s Retail Company ("CRC") was organized as an Iowa corporation in April 2004.
Percentage of revenue less cost of goods sold (excluding depreciation and amortization and credit card fees) represents the fuel gross profit divided by the gross fuel sales dollars. As retail fuel prices fluctuate in a period of consistent gross margin per gallon, the percentage will also fluctuate in an inverse relationship to fuel price.
As retail fuel prices fluctuate in a period of consistent gross margin per gallon, the percentage will also fluctuate in an inverse relationship to fuel price. For additional information concerning the Company’s fuel operations, see Item 7, below.
Regardless, with the 6 Company's centralized fuel team and the procurement improvements implemented, we believe we are well positioned to navigate any potential future fuel price volatility. The total number of gallons sold during this period increased by 18.3%.
While prices have moderated since the highs seen at the end of the prior fiscal year and the first quarter of fiscal 2023, the higher costs have continued into 2023. Regardless, with the Company's centralized fuel team and the procurement improvements implemented, we believe we are well positioned to navigate any potential future fuel price volatility.
As of April 30, 2022, we operated 551 stores on a 24-hour basis, and another 1,694 have expanded hours. Store hours have continued to shift back to pre-COVID 19 levels, as we temporarily reduced hours at many locations in response to the pandemic.
As of April 30, 2023, we operated 526 stores on a 24-hour basis, and another 1,843 have expanded hours. Store Locations The Company historically has located many of its stores in smaller towns not served by national-chain convenience stores.
In addition, the Company has a formal leadership development program – our Leadership Excellence Certification – which seeks to provide Team Members across the organization with skills necessary for leading their teams and advancing in their careers at the Company. To date, the Company has had nearly 200 Team Members certified through this program. Competition Our business is highly competitive.
In addition, the Company has a formal leadership development program with core curriculum consisting of Development programs for Kitchen Managers, Store Managers, District Managers, a Leadership Excellence Certification, and an Individualized Development Program for all Officers based on their review. Competition Our business is highly competitive.
Removed
These locations are not operated by Casey's and are not included in our overall store count in the paragraph below. On April 30, 2022, there were a total of 2,452 stores in operation. There were 21 stores newly constructed in fiscal 2022, and we closed 20 stores in fiscal 2022.
Added
On April 30, 2023, there were a total of 2,521 stores in operation.
Removed
We also acquired 207 stores in fiscal 2022; 204 of those stores were opened in fiscal 2022, and 3 will be opened during the 2023 fiscal year. Finally, we opened 4 stores purchased in the prior year.
Added
CGS Stores, LLC was organized as an Iowa limited liability company in April 2019. Heartland Property Company, LLC was organized as a Delaware limited liability company in September 2019, for the purposes of acquiring land and real estate.
Removed
Bucks, LLC owns and/or operates certain of the acquired Bucky’s locations in Iowa, Illinois, Missouri and Nebraska, and Buchanan Energy (N), LLC and Buchanan Energy (S), LLC own and/or operate certain of such stores in Illinois. CSC provides a variety of construction, maintenance and transportation services for all stores.
Added
During the fiscal year, the Company launched new limited time offers to include our “Ultimate Beer Cheese Breakfast Pizza” as well as our “BBQ Brisket Pizza.” Additional stores selling pizza will come on line as newly acquired stores are remodeled and kitchens are added.
Removed
Of note, during the fiscal year, the Company launched a new lineup of breakfast items, including new bacon and egg croissants, new loaded breakfast burritos, and a breakfast handheld called the “Toastwich.” The rollout of the new breakfast menu was accompanied by the installation of bean-to-cup coffee machines across the bulk of the Company's footprint.
Added
At the end of the fiscal year, the Company had surpassed 6.4 million members enrolled in the program. Store Design Casey’s constructs stores that are primarily freestanding and, with a few exceptions to accommodate local conditions, conform to standard construction specifications.
Removed
In addition to earning points, guests receive other program benefits such as special offers, bonus points, as well as getting a free large pizza after purchasing 10 large pizzas. In early May 2022, the Company surpassed 5 million members enrolled in the program.
Added
Average retail prices of fuel during the year increased 16.5% from prior year.
Removed
For additional information concerning the Company’s fuel operations, see Item 7, below. Distribution and Wholesale Arrangements CMC supplies all stores with groceries, food, health and beauty aids, and general merchandise from our three distribution centers.
Added
In the 2023 fiscal year, Casey’s became “Great Places to Work” certified. This certification is administered by an independent third party and is based largely on team member survey results. Total Rewards We believe that the future success of the Company depends in large part on our ability to attract, train, retain, and motivate qualified Team Members.
Removed
During the 2022 fiscal year, the Company held two large-scale hiring events to support its store footprint, each of which was designed to hire up to 5,000 Team Members. These events led to a significant addition of talent to our store Team Member base in an ever-challenging and competitive labor environment.
Added
In addition, during the 2023 fiscal year, we enhanced our offerings to include a military pay differential benefit for team members in the armed forces during periods of military service, introduced a free care management service for those suffering from back and joint pain/injury to expedite improved pain management and/or healing, and increased the contributions to, and number of visits allowed, in our Employee Assistance Program (EAP), which allows our team members and their families additional support for mental health at no cost.
Removed
In addition, during the 2022 fiscal year, we enhanced our already competitive benefits offerings to include paid bonding leave, a new college tuition discount program with certain higher-education partners, and launched the Casey's Team Support Fund, which is designed to help team members facing financial hardships due to catastrophic circumstances.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn addition, as the federal government and certain states face economic and other pressures, they may seek revenue in the form of additional income, sales and other taxes and related fees. These activities could result in increased expenditures for tax liabilities in the future. Many of these liabilities are subject to periodic audits by the respective taxing authorities.
Biggest changeTax laws and regulations are dynamic and subject to change as new laws are passed, new administrations are elected and new interpretations of existing laws are issued and applied. In addition, as the federal government and certain states face economic and other pressures, they may seek revenue in the form of additional income, sales and other taxes and related fees.
Our defense costs and any resulting damage awards or settlement amounts may be significant and not be covered, or in some instances fully covered, by our insurance policies. Thus, an unfavorable outcome or settlement of one or more of these lawsuits could have a material adverse effect on our financial position, liquidity and results of operations.
Our defense costs and any resulting damage awards or settlement amounts may be significant and not be covered, or in some instances fully covered, by our insurance policies. Thus, an unfavorable outcome or settlement of one or more of these lawsuits could have a material adverse effect on our reputation, financial position, liquidity and results of operations.
In addition, t he general economic and other impacts related to responsive actions taken by governments and others to mitigate the spread of COVID-19, or in the future other pandemics or disease outbreaks, including but not limited to stay-at-home, shelter-in-place and other travel restrictions, social distancing requirements, mask mandates, limitations on certain businesses’ hours and operations, limits on public gatherings and other events, and restrictions on what, and in certain cases how, certain products can be sold and offered to our guests, have, and may continue to, result in similar declines in store traffic and overall demand, increased operating costs, and decreased or slower unit/store growth.
In addition, the general economic and other impacts related to responsive actions taken by governments and others to mitigate the spread of COVID-19, or in the future other pandemics or disease outbreaks, including but not limited to stay-at-home, shelter-in-place and other travel restrictions, social distancing requirements, mask mandates, limitations on certain businesses’ hours and operations, limits on public gatherings and other events, and restrictions on what, and in certain cases how, certain products can be sold and offered to our guests, have, and may continue to, result in similar declines in store traffic and overall demand, increased operating costs, and decreased or slower unit/store growth.
For example, the Iowa Business Corporation Act (the “Act”) prohibits publicly held Iowa corporations to which it applies from engaging in a business combination with an interested shareholder for a period of three years after the date of the transaction in which the person became an interested shareholder unless the business combination is approved in a prescribed manner.
For example, the Iowa Business Corporation Act (the “Act”) prohibits publicly held Iowa corporations to which it applies from engaging in a business combination with an interested shareholder for a period of three years after the date of the transaction in which the person 15 became an interested shareholder unless the business combination is approved in a prescribed manner.
In addition, unfavorable economic conditions, especially those affecting the agricultural industry, higher fuel prices, and unemployment levels can affect consumer confidence, spending patterns, and miles driven, and can cause guests to “trade down” to lower priced products in certain categories when these conditions exist.
In addition, unfavorable economic conditions, especially those affecting the agricultural industry, higher fuel prices, and unemployment levels can affect consumer confidence, spending patterns, and miles driven, and 13 can cause guests to “trade down” to lower priced products in certain categories when these conditions exist.
We are increasingly dependent on our information technology (IT) systems, and a large number of third-party software providers and platforms, to manage and operate numerous aspects of our business, develop our financial statements, provide analytical information to management and serve as a platform for our business continuity plan.
We are dependent on our information technology (IT) systems, and a large number of third-party software providers and platforms, to manage and operate numerous aspects of our business, develop our financial statements, provide analytical information to management and serve as a platform for our business continuity plan.
Any disruption could cause our business and competitive position to suffer and cause our operating results to be reduced. Increased credit card expenses could lead to higher operating expenses and other costs for the Company. A significant percentage of our sales are made with the use of credit cards.
Any disruption could cause our business and competitive position to suffer and cause our operating results to be reduced. Increased credit card expenses could lead to higher operating expenses and other costs for the Company. A significant percentage of our sales are made with credit cards.
While these actions are generally routine in nature, incidental to the operation of our business and immaterial in scope, if our assessment of any action or actions should prove inaccurate, our financial condition and results of operations could be adversely affected.
While these actions are generally routine in nature, 11 incidental to the operation of our business and immaterial in scope, if our assessment of any action or actions should prove inaccurate, our financial condition and results of operations could be adversely affected.
As a result, our competitors may have a greater ability to bear the economic risks inherent in our industry and may be able to respond better to changes in the economy and new opportunities within the industry, including 14 those related to electric vehicle charging stations.
As a result, our competitors may have a greater ability to bear the economic risks inherent in our industry and may be able to respond better to changes in the economy and new opportunities within the industry, including those related to electric vehicle charging stations.
Such events could give rise to substantial monetary damages and/or losses which are not covered, or in some instances fully covered, by our insurance policies and which could adversely affect our reputation, results 9 of operations, financial condition and liquidity.
Such events could give rise to substantial monetary damages and/or losses which are not covered, or in some instances fully covered, by our insurance policies and which could adversely affect our reputation, results of operations, financial condition and liquidity.
These, and other laws and regulations, are dynamic and subject to change as new laws are passed, new interpretations of existing laws are issued and applied and as political administrations and majorities change over time.
These, and other laws and regulations, are dynamic and subject to change as new laws are passed, new interpretations of existing laws are issued and applied and as 12 political administrations and majorities change over time.
These events and their impacts can be unpredictable, and we may not 13 always be able to recapture these higher input costs through pricing strategies or otherwise.
These events and their impacts can be unpredictable, and we may not always be able to recapture these higher input costs through pricing strategies or otherwise.
Any instances of, or reports linking us to, food-borne illnesses or food tampering, contamination, mislabeling or other food-safety issues could damage the value of our brand and severely hurt sales of our prepared or other food products and possibly lead to product liability and personal injury claims, litigation (including class actions), government agency investigations and damages.
Any instances of, or reports linking us to, foodborne illnesses or food tampering, contamination, mislabeling or other food-safety issues could damage the value of our brand and severely hurt sales of our prepared or other food products and possibly lead to product liability and personal injury claims, litigation (including class actions), government agency investigations and damages.
Our business is subject to extensive governmental laws and regulations that include, but are not limited to, those relating to environmental protection and remediation; the preparation, transportation, storage, sale and labeling of food; minimum wage, overtime and other employment and labor laws and regulations; compliance with the Patient Protection and Affordable Care Act and the Americans with Disabilities Act; legal restrictions on the sale of alcohol, tobacco and nicotine products, money 12 orders, lottery/lotto and other age-restricted products; compliance with the Payment Card Industry Data Security Standards and similar requirements; compliance with the Federal Motor Carriers Safety Administration regulations; and, securities laws and Nasdaq listing standards.
Our business is subject to extensive governmental laws and regulations that include, but are not limited to, those relating to environmental protection and remediation; the preparation, transportation, storage, sale and labeling of food; minimum wage, overtime and other employment and labor laws and regulations; the Americans with Disabilities Act; legal restrictions on the sale of alcohol, tobacco and nicotine products, money orders, lottery/lotto and other age-restricted products; compliance with the Payment Card Industry Data Security Standards and similar requirements; compliance with the Federal Motor Carriers Safety Administration regulations; and, securities laws and Nasdaq listing standards.
Our IT systems, and the software and other technology platforms provided by our vendors, are an essential component of our business operations and growth strategies, and a serious disruption to any of these could significantly limit our ability to manage and operate our business efficiently.
Our IT systems, and the software and other technology platforms provided by our vendors and other third-parties, are an essential component of our business operations and growth strategies, and a serious disruption to any of these could significantly limit our ability to manage and operate our business efficiently.
These systems are vulnerable to, among other things, damage and interruption, computer system and network failures, loss of telecommunications services, physical and electronic loss of, or loss of access to, data and information, security breaches or other security incidents, computer viruses or attacks and obsolescence.
These systems are vulnerable to, among other things, damage and interruption, computer system and network failures, loss of telecommunications services, physical and electronic loss of, or loss of access to, data and information, security breaches or other security or cyber-related incidents, computer viruses or attacks and obsolescence.
We also depend on regular deliveries of products to and from our facilities and stores that meet our specifications. In addition, we may have a single supplier or limited number of suppliers for certain products.
We also depend on regular deliveries of products from third-parties to and from our facilities and stores that meet our specifications. In addition, we may have a single supplier or limited number of suppliers for certain products.
Sales of tobacco and nicotine products have averaged approximately 11% of our total revenue over the past three fiscal years, and our tobacco and nicotine revenue less cost of goods sold excluding depreciation and amortization accounted for approximately 10% of the total revenue less cost of goods sold excluding depreciation and amortization for the same period.
Sales of tobacco and nicotine products have averaged approximately 10% of our total revenue over the past three fiscal years, and our tobacco and nicotine revenue less cost of goods sold (excluding depreciation and amortization) accounted for approximately 9% of the total revenue less cost of goods sold (excluding depreciation and amortization) for the same period.
Instances or reports of food-safety issues, such as food-borne illnesses, food tampering, food contamination or mislabeling, either during growing, manufacturing, packaging, transportation, storage, preparation or service, have in the past significantly damaged the reputations and impacted the sales of companies in the food processing, grocery, quick service and “fast casual” restaurant sectors, and could affect us as well.
Instances or reports of food-safety issues, such as foodborne illnesses, food tampering, food contamination or mislabeling, either during growing, manufacturing, packaging, transportation, storage, preparation or service, have in the past 9 significantly damaged the reputations and impacted the sales of companies in the food processing, grocery, quick service and “fast casual” restaurant sectors, and could affect us as well.
Food-safety issues and food-borne illnesses, whether actual or reported, or the failure to comply with applicable regulations relating to the transportation, storage, preparation or service of food, could adversely affect our business and reputation.
Food-safety issues and foodborne illnesses, whether actual or reported, or the failure to comply with applicable regulations relating to the transportation, storage, preparation or service of food, could adversely affect our business and reputation.
We expect to continue pursuing acquisition opportunities, which involve risks that could cause our actual growth or operating results to differ materially from our expectations or the expectations of securities analysts.
We expect to continue pursuing acquisition opportunities, which involve risks that could cause our actual growth or operating results to differ materially from our expectations or the expectations of our shareholders and securities analysts.
Over the past three fiscal years, on average our fuel revenues accounted for approximately 61% of total revenue and our fuel revenue less cost of goods sold excluding depreciation and amortization accounted for approximately 32% of the total revenue less cost of goods sold excluding depreciation and amortization.
Over the past three fiscal years, on average our fuel revenues accounted for approximately 63% of total revenue and our fuel revenue less cost of goods sold (excluding depreciation and amortization) accounted for approximately 34% of the total revenue less cost of goods sold (excluding depreciation and amortization).
Because the interchange and other fees we pay when credit cards are used to make purchases, which the Company has little control over, are based on transaction amounts, higher fuel prices at the pump, including record fuel prices that were seen at the end of our 2022 fiscal year and beyond, higher gallon movement and other increases in price and sales directly result in higher credit card expenses.
Because the interchange and other fees we pay when credit cards are used to make purchases, which the Company has little control over, are based on transaction amounts, higher fuel prices at the pump, including record fuel prices that were seen in recent years, higher gallon movement and other increases in price and sales of fuel and other items we sell in our stores directly result in higher credit card expenses.
General economic and political conditions, including social and political causes and movements, higher interest rates, higher fuel and other energy costs, inflation, increases or fluctuations in commodity prices such as cheese and coffee, higher levels of unemployment, unemployment benefits and related stimulus provided as a result of the COVID-19 pandemic, higher consumer debt levels and lower consumer discretionary spending, higher tax rates and other changes in tax laws or other economic factors may affect the operations of our stores, input costs, consumer spending, buying habits and labor markets generally, and could adversely affect the costs of the products we sell in our stores, the consumer demand for such products and the labor costs of transporting, storing and selling those products.
General economic and political conditions, including social and political causes and movements, higher interest rates, higher fuel and other energy costs, inflation, increases or fluctuations in commodity prices such as cheese and coffee, higher levels of unemployment, unemployment benefits and related stimulus provided as a result of the COVID-19 pandemic (including the rollback of certain payment relief programs introduced during the pandemic such as delayed or deferred rent, student loan payments, etc.), higher consumer debt levels and lower consumer discretionary spending, higher tax rates and other changes in tax laws or other economic factors may affect the operations of our stores, input costs, consumer spending, buying habits and labor markets generally, and could adversely affect the discretionary income and spending levels of our guests, the costs of the products we sell in our stores, the consumer demand for such products and the labor costs of transporting, storing and selling those products.
As such, it is possible that credit card providers could attempt to pass the costs of certain fraudulent activity at the non-upgraded dispensers to the Company, which if significant, could have a material adverse effect on our business, financial condition and results of operations.
As such, it is possible that credit card providers could attempt to pass the costs of certain fraudulent activity at the non-upgraded dispensers to the Company, which if significant, could have a material adverse effect on our business, financial condition and results of operations. Our operations present hazards and risks which may not be fully covered by insurance, if insured.
While we invest significant resources in the protection of such data and information, our IT systems, and incident response programs, and maintain what we believe are adequate security controls, a compromise or a breach in our systems, or another data security or privacy incident that results in the loss, unauthorized release, disclosure or acquisition of such data or information, or other sensitive data or information, or other internal or external cyber or data security threats, including but not limited to viruses, denial-of-service attacks, phishing attacks, ransomware attacks and other intentional or unintentional disruptions, could nonetheless occur and have a material adverse effect on our operations and ability to operate, reputation, operating results and financial condition.
A compromise or a breach in our systems, or another data security or privacy incident that results in the loss, unauthorized release, disclosure or acquisition of such data or information, or other sensitive data or information, or other internal or external cyber or data security threats, including but not limited to viruses, denial-of-service attacks, phishing attacks, ransomware attacks and other intentional or unintentional disruptions, could occur and have a material adverse effect on our operations and ability to operate, reputation, operating results and financial condition.
While we believe there are adequate reserve quantities and alternative suppliers available, shortages or interruptions in the receipt or supply of products caused by unanticipated or changing demand, such as has occurred as a result of and during the duration of the COVID-19 pandemic, problems in production or distribution, financial or other difficulties of suppliers, inclement weather or other 10 economic conditions, including the availability of qualified drivers and distribution center Team Members, again as had occurred as a result of the COVID-19 pandemic and has continued as a result of it and other macroeconomic factors, could adversely affect the availability, quality and cost of products, and our operating results.
While we believe there are adequate reserve quantities and alternative suppliers available, shortages or interruptions in the receipt or supply of products caused by unanticipated or changing demand, such as occurred during the COVID-19 pandemic, problems in production or distribution, financial or other difficulties of suppliers, cyber-related events, social unrest, inclement weather or other economic conditions, including the availability of qualified drivers and distribution center Team Members, could adversely affect the availability, quality and cost of products, and our operating results.
In addition, credit card providers now mandate that any fraudulent activity and related losses at fuel dispensers that do not accept certain chip technology (referred to as EMV) be borne by the retailers accepting those cards.
For fiscal 2021, total credit card fees paid were approximately $150 million. In addition, credit card providers now mandate that any fraudulent activity and related losses at fuel dispensers that do not accept certain chip technology (referred to as EMV) be borne by the retailers accepting those cards.
These additional fees directly increase operating expenses. Higher operating expenses that result from higher credit card fees may decrease our overall profit and have a material adverse effect on our business, financial condition and results of operations. Total credit card fees paid in fiscal 2022, 2021, and 2020, were approximately $203 million, $147 million, and $145 million, respectively.
These additional fees directly increase operating expenses. Higher operating expenses that result from higher credit card fees may decrease our overall profit and have a material adverse effect on our business, financial condition and results of operations. Total credit card fees paid in fiscal 2023 and 2022 exceeded $200 million.
Subsequent changes to our tax liabilities as a result of these audits may subject us to interest and penalties. We are subject to extensive governmental regulations.
These activities could result in increased expenditures for tax liabilities in the future. Many of these liabilities are subject to periodic audits by the respective taxing authorities. Subsequent changes to our tax liabilities as a result of these audits may subject us to interest and penalties. We are subject to extensive governmental regulations.
Additionally, certain types of equity securities we may issue in the future could have rights, preferences, or privileges senior to the rights of existing holders of our common stock.
Additionally, certain types of equity securities we may issue in the future could have rights, preferences, or privileges senior to the rights of existing holders of our common stock. Iowa law and provisions in our charter documents may have the effect of preventing or hindering a change in control and adversely affecting the market price of our common stock.
The dangers inherent in the storage and transport of fuel could cause disruptions and could expose to us potentially significant losses, costs or liabilities. We store fuel in storage tanks at our retail locations. Additionally, a significant portion of fuel is transported in our own trucks, instead of by third-party carriers.
We store fuel in storage tanks at our retail locations. Additionally, a significant portion of fuel is transported in our own trucks, instead of by third-party carriers. Our operations are subject to significant hazards and risks inherent in transporting and storing motor fuel.
Iowa law and provisions in our charter documents may have the effect of preventing or hindering a change in control and adversely affecting the market price of our common stock. 15 Our articles of incorporation give the Company’s board of directors the authority to issue up to one million shares of preferred stock and to determine the rights and preferences of the preferred stock without obtaining shareholder approval.
Our articles of incorporation give the Company’s board of directors the authority to issue up to one million shares of preferred stock and to determine the rights and preferences of the preferred stock without obtaining shareholder approval.
This intense competition could adversely affect our revenues and profitability and have a material adverse impact on our business and results of operations. Risks Related to Our Growth Strategies We may experience difficulties implementing and realizing the results of our long-term strategic plan.
This intense competition could adversely affect our revenues and profitability and have a material adverse impact on our business and results of operations. 14 Risks Related to Our Growth Strategies We may not be able to identify, acquire, and integrate new properties and stores, which could adversely affect our ability to grow our business.
As protection against hazards and risks, we maintain insurance against many, but not all, potential losses or liabilities arising from such risks. Uninsured or underinsured losses and liabilities from operating risks could reduce the funds available to us for capital and investment spending and could have a material adverse impact on the results of operations.
Uninsured or underinsured losses and liabilities from operating risks could reduce the funds available to us for capital and investment spending and could have a material adverse impact on the results of operations. The dangers inherent in the storage and transport of fuel could cause disruptions and could expose to us potentially significant losses, costs or liabilities.
Our operations present hazards and risks which may not be fully covered by insurance, if insured. 11 The scope and nature of our operations present a variety of operational hazards and risks that must be managed through continual oversight and control.
The scope and nature of our operations present a variety of operational hazards and risks that must be managed through continual oversight and control. As protection against hazards and risks, we maintain insurance against many, but not all, potential losses or liabilities arising from such risks.
This risk is compounded by the increasing use of digital media by consumers and the speed by which information and opinions are shared.
This risk is compounded by the increasing use of digital media by consumers and the speed by which information and opinions are shared. 10 Further, changes in consumer preferences, trends or perceptions of certain items we sell, or the ingredients therein, could cause consumers to avoid such items in favor of those that are or are perceived as healthier, lower-calorie, or lower in carbohydrates or otherwise based on their ingredients or nutritional content.
Removed
We cannot predict the extent and duration of the COVID-19 pandemic, the severity and duration of its impact to the general economy, our guests or our operating results; however, its effects could continue to be material and last for an extended period of time.
Added
We may be adversely impacted by increases in the cost of food ingredients and other related costs Our business is exposed to fluctuations in prices of commodities.
Removed
Our operations are subject to significant hazards and risks inherent in transporting and storing motor fuel.
Added
Any increase in the cost or sustained high levels of the cost of cheese, proteins or other commodities could adversely affect the profitability of stores, particularly if we are unable to increase the retail price of our products to offset such costs.
Removed
Tax laws and regulations are dynamic and subject to change as new laws are passed, new administrations are elected and new interpretations of existing laws are issued and applied.
Added
We have recently experienced inflation in the price of commodities, including food ingredients, which has increased our cost of goods sold. Cheese, representing our largest food cost, and other commodities can be subject to significant cost fluctuations due to weather, availability, global demand and other factors that are beyond our control.
Removed
For example, the current administration's desire to raise the federal tax rate for corporations, or to impose additional taxes or surcharges on companies in the oil and gas industries, each of which could directly result in higher taxes being incurred by the Company and which could impact the prices of important inputs to the products we sell.
Added
Additionally, increases in labor, mileage, insurance, fuel, and other costs could adversely affect the profitability of our stores. Many of these factors are beyond our control, and we may not be able to adequately mitigate these costs or pass along these costs to our customers, given the significant competitive pricing in our industry.
Removed
In January 2020, the Company unveiled an updated, long-term/strategic plan, centered around four strategic objectives: reinvent hospitality and the guest experience; be where the guest is; best-in-class efficiencies; and, invest in our people and culture.
Removed
While we have invested, and will continue to invest, significant resources in our team and in planning, development, project management, and implementation of the plan, it is possible that we may experience significant delays, increased costs and other difficulties that are not presently contemplated. Further, the intended results of the plan may not be realized as anticipated.
Removed
Any such issues could adversely affect our operations and negatively impact our business, results of operations and financial condition. We may not be able to identify, acquire, and integrate new properties and stores, which could adversely affect our ability to grow our business.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed2 unchanged
Biggest changeThe Store Support Center provides approximately 490,000 square feet of available space, including approximately 290,000 square feet related to the distribution center. We also own a building near the Store Support Center where our construction and support services departments operate. In February 2016, we opened our second distribution center, located in Terre Haute, Indiana.
Biggest changeWe also own a building near the Store Support Center where our construction and support services departments operate. In February 2016, we opened our second distribution center, located in Terre Haute, Indiana. This second distribution center has approximately 340,000 square feet of total space.
This second distribution center has approximately 340,000 square feet of total space. In April 2021, we opened a third distribution center located in Joplin, Missouri (see Note 7 for discussion of ownership structure). The third distribution center provides approximately 300,000 square feet of total space. On April 30, 2022, we leased a combination of land and/or building at 114 locations.
In April 2021, we opened a third distribution center located in Joplin, Missouri (see Note 7 for discussion of ownership structure). The third distribution center provides approximately 300,000 square feet of total space. All three distribution centers have a fleet services maintenance center. On April 30, 2023, we leased a combination of land and/or building at 121 locations.
ITEM 2. PROPERTIES We own the Store Support Center (built in 1990) and all three distribution centers. Located on an approximately 57-acre site in Ankeny, Iowa, the Store Support Center includes office space, our first distribution center, and our fleet services maintenance center.
ITEM 2. PROPERTIES We own the Store Support Center (built in 1990) and all three distribution centers. Located on an approximately 57-acre site in Ankeny, Iowa, the Store Support Center includes office space and our first distribution center. The Store Support Center provides approximately 490,000 square feet of available space, including approximately 290,000 square feet related to the distribution center.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe cash dividends declared during the calendar years 2020 through 2022 were as follows: Calendar 2020 Cash dividend declared Calendar 2021 Cash dividend declared Calendar 2022 Cash dividend declared Q1 $ 0.320 Q1 $ 0.340 Q1 $ 0.350 Q2 0.320 Q2 0.340 Q2 0.380 Q3 0.320 Q3 0.350 Q4 0.340 Q4 0.350 1.300 1.380 Issuer Purchases of Equity Securities The following table sets forth information with respect to the Company's repurchases of common stock during the quarter ended April 30, 2022: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) Fourth Quarter: February 1-28, 2022 — $ — — $ 300,000,000 March 1-31, 2022 — — — 400,000,000 April 1-30, 2022 — — — 400,000,000 Total — $ — — $ 400,000,000 (1) On March 7, 2018, the Company announced a share repurchase program, whereby the Company was authorized to repurchase up to an aggregate of $300 million of the Company’s outstanding common stock (the "Prior Repurchase 18 Table of Contents Program").
Biggest changeThe cash dividends declared during the calendar years 2021 through 2023 were as follows: Calendar 2021 Cash dividend declared Calendar 2022 Cash dividend declared Calendar 2023 Cash dividend declared Q1 $ 0.340 Q1 $ 0.350 Q1 $ 0.380 Q2 0.340 Q2 0.380 Q2 0.430 Q3 0.350 Q3 0.380 Q4 0.350 Q4 0.380 $ 1.380 $ 1.490 Issuer Purchases of Equity Securities The following table sets forth information with respect to the Company's repurchases of common stock during the quarter ended April 30, 2023: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) Fourth Quarter: February 1-28, 2023 — $ — — $ 400,000,000 March 1-31, 2023 — — — 400,000,000 April 1-30, 2023 — — — 400,000,000 Total — $ — — $ 400,000,000 (1) On, and effective as of, March 3, 2022, the Board authorized a share repurchase program, whereby the Company was authorized to repurchase its outstanding common stock from time-to-time, for an aggregate amount of up to $400 18 Table of Contents million, exclusive of fees, commissions or other expenses (the "Repurchase Program").
The Updated Repurchase Program has no set expiration date. The timing and number of repurchase transactions under the Updated Repurchase Program depends on a variety of factors including, but not limited to, market conditions, corporate considerations, business opportunities, debt agreements, and regulatory requirements. The Updated Repurchase Program can be suspended or discontinued at any time. ITEM 6. [Reserved]
The Repurchase Program has no set expiration date. The timing and number of repurchase transactions under the Repurchase Program depends on a variety of factors including, but not limited to, market conditions, corporate considerations, business opportunities, debt agreements, and regulatory requirements. The Repurchase Program can be suspended or discontinued at any time. ITEM 6. [Reserved]
The dividends declared in fiscal 2022 totaled $1.39 per share. The dividends declared in fiscal 2021 totaled $1.32 per share. At its June meeting, the Board of Directors declared a quarterly dividend of $0.38 per share payable August 15, 2022, to shareholders of record on August 1, 2022.
The dividends declared in fiscal 2023 totaled $1.52 per share. The dividends declared in fiscal 2022 totaled $1.39 per share. At its June meeting, the Board of Directors declared a quarterly dividend of $0.43 per share payable August 15, 2023, to shareholders of record on August 1, 2023.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Casey’s common stock trades on the Nasdaq Global Select Market under the symbol CASY. The 37,111,667 shares of common stock outstanding at April 30, 2022 had a market value of approximately $7.5 billion. On that date, there were 1,679 shareholders of record.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Casey’s common stock trades on the Nasdaq Global Select Market under the symbol CASY. The 37,263,248 shares of common stock outstanding at April 30, 2023 had a market value of approximately $8.5 billion. On that date, there were 1,620 shareholders of record.
Common Stock Market Prices Calendar 2020 High Low Calendar 2021 High Low Calendar 2022 High Low Q1 $ 181.99 $ 114.01 Q1 $ 221.29 $ 175.02 Q1 $ 202.50 $ 170.82 Q2 $ 174.40 $ 117.25 Q2 $ 229.18 $ 192.33 Q3 $ 183.45 $ 145.48 Q3 $ 208.19 $ 185.96 Q4 $ 196.58 $ 165.38 Q4 $ 203.72 $ 181.25 Dividends We began paying cash dividends during fiscal 1991.
Common Stock Market Prices Calendar 2021 High Low Calendar 2022 High Low Calendar 2023 High Low Q1 $ 221.29 $ 175.02 Q1 $ 202.50 $ 170.82 Q1 $ 236.45 $ 202.13 Q2 229.18 192.33 Q2 216.40 181.40 Q3 208.19 185.96 Q3 223.90 183.23 Q4 203.72 181.25 Q4 249.90 197.61 Dividends We began paying cash dividends during fiscal 1991.
Removed
No repurchases were made under the Prior Repurchase Program and it was set to expire on April 30, 2022.
Removed
On, and effective as of, March 3, 2022, the Board authorized an extension and expansion of the Prior Repurchase Program by $100 million, for a total amount of up to $400 million, exclusive of fees, commissions or other expenses, under which the Company may repurchase its outstanding common stock from time-to-time (the "Updated Repurchase Program").

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

62 edited+22 added−27 removed39 unchanged
Biggest changeCOMPANY TOTAL REVENUE AND REVENUE LESS COST OF GOODS SOLD (EXCLUDING DEPRECIATION AND AMORTIZATION) BY CATEGORY ( 1 ) Years ended April 30, 2022 2021 2020 Total revenue by category Fuel $ 8,312,038 $ 4,825,466 $ 5,517,412 Grocery and general merchandise 3,141,527 2,724,374 2,498,966 Prepared food and dispensed beverage 1,204,100 1,087,147 1,097,207 Other (2) 294,929 70,202 61,711 $ 12,952,594 $ 8,707,189 $ 9,175,296 Revenue less cost of goods sold (excluding depreciation and amortization) by category Fuel $ 928,868 $ 761,247 $ 614,847 Grocery and general merchandise 1,027,477 872,573 800,140 Prepared food and dispensed beverage 712,352 653,689 668,092 Other (2) 94,017 68,926 61,605 $ 2,762,714 $ 2,356,435 $ 2,144,684 (1) Note that we have changed the names of the "grocery and other merchandise" category to "grocery and general merchandise" and the "prepared food and fountain" category to "prepared food and dispensed beverage" to better reflect the composition of the category.
Biggest changePlease refer to the Form 10-K related to the fiscal year ended April 30, 2022, filed on June 24, 2022, for comparison of Fiscal 2022 to Fiscal 2021. 21 Table of Contents COMPANY TOTAL REVENUE AND REVENUE LESS COST OF GOODS SOLD (EXCLUDING DEPRECIATION AND AMORTIZATION) BY CATEGORY Years ended April 30, 2023 2022 2021 Total revenue by category Fuel $ 10,027,310 $ 8,312,038 $ 4,825,466 Grocery and general merchandise 3,445,777 3,141,527 2,724,374 Prepared food and dispensed beverage 1,322,560 1,204,100 1,087,147 Other (1) 298,828 294,929 70,202 $ 15,094,475 $ 12,952,594 $ 8,707,189 Revenue less cost of goods sold (excluding depreciation and amortization) by category Fuel $ 1,074,913 $ 928,868 $ 761,247 Grocery and general merchandise 1,156,451 1,027,477 872,573 Prepared food and dispensed beverage 748,405 712,352 653,689 Other (1) 92,637 94,017 68,926 $ 3,072,406 $ 2,762,714 $ 2,356,435 (1) The 'Other' category historically has primarily consisted of lottery, which is presented net of applicable costs, and car wash.
For fuel, cost is determined through the use of the first-in, first-out (FIFO) method. For merchandise inventories, cost is determined through the use of the last-in, first-out (LIFO) method. Inventory valued using the LIFO method of inventory requires judgement when making the determination of appropriate indices to be used for determining price level changes.
For fuel inventories, cost is determined through the use of the first-in, first-out (FIFO) method. For merchandise inventories, cost is determined through the use of the last-in, first-out (LIFO) method. Inventory valued using the LIFO method of inventory requires judgement when making the determination of appropriate indices to be used for determining price level changes.
The acquisitions are recorded in the financial statements by allocating the purchase price to the assets acquired, including intangible assets, and liabilities assumed, based on their estimated fair values at the acquisition date as determined by both third party appraisals or internal estimates. The more significant assets acquired include buildings, equipment, and land.
The acquisitions are recorded in the financial statements by allocating the purchase price to the assets acquired, including intangible assets, and liabilities assumed, based on their estimated fair values at the acquisition date as determined by third party appraisals or internal estimates. The more significant assets acquired include buildings, equipment, and land.
The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following risk factors described more completely above in Item 1A entitled “Risk Factors”: Business Operations; Our business and our reputation could be adversely affected by a cyber or data security incident or the failure to protect sensitive guest, Team Member or supplier data, or the failure to comply with applicable regulations relating to data security and privacy; food-safety issues and food-borne illnesses, whether actual or reported, or the failure to comply with applicable regulations relating to the transportation, storage, preparation or service of food, could adversely affect our business and reputation; pandemics or disease outbreaks, such as COVID-19, responsive actions taken by governments and others to mitigate their spread, and guest behavior in response to these events, have, and may in the future, adversely affect our business operations, supply chain and financial results; a significant disruption to our distribution network, to the capacity of the distribution centers, or timely receipt of inventory could adversely impact our sales or increase our transaction costs, which could have a material adverse effect on our business; we could be adversely affected if we experience difficulties in, or are unable to recruit, hire or retain, members of our leadership team and other distribution, field and store Team Members; any failure to anticipate and respond to changes in consumer preferences, or to introduce and promote innovative technology for guest interaction, could adversely affect our financial results; we rely on our information technology systems, and a number of third-party software providers, to manage numerous aspects of our business, and a disruption of these systems could adversely affect our business; increased credit card expenses could lead to higher operating expenses and other costs for the Company; our operations present hazards and risks which may not be fully covered by insurance, if insured; the dangers inherent in the storage and transport of fuel could cause disruptions and could expose to us potentially significant losses, costs or liabilities; consumer or other litigation could adversely affect our financial condition and results of operations; and, covenants in our senior notes and credit facility agreements require us to comply with certain covenants and meet financial maintenance tests and the failure to comply with these requirements could have a material impact to us.
The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following risk factors described more completely above in Item 1A entitled “Risk Factors”: Business Operations; Our business and our reputation could be adversely affected by a cyber or data security incident or the failure to protect sensitive guest, Team Member or supplier data, or the failure to comply with applicable regulations relating to data security and privacy; food-safety issues and foodborne illnesses, whether actual or reported, or the failure to comply with applicable regulations relating to the transportation, storage, preparation or service of food, could adversely affect our business and reputation; we may be adversely impacted by increases in the cost of food ingredients and other related costs; a significant disruption to our distribution network, to the capacity of the distribution centers, or timely receipt of inventory could adversely impact our sales or increase our transaction costs, which could have a material adverse effect on our business; we could be adversely affected if we experience difficulties in, or are unable to recruit, hire or retain, members of our leadership team and other distribution, field and store Team Members; any failure to anticipate and respond to changes in consumer preferences, or to introduce and promote innovative technology for guest interaction, could adversely affect our financial results; we rely on our information technology systems, and a number of third-party software providers, to manage numerous aspects of our business, and a disruption of these systems could adversely affect our business; increased credit card expenses could lead to higher operating expenses and other costs for the Company; our operations present hazards and risks which may not be fully covered by insurance, if insured; the dangers inherent in the storage and transport of fuel could cause disruptions and could expose to us potentially significant losses, costs or liabilities; consumer or other litigation could adversely affect our financial condition and results of operations; pandemics or disease outbreaks, such as COVID-19, responsive actions taken by governments and others to mitigate their spread, and guest behavior in response to these events, have, and may in the future, adversely affect our business operations, supply chain and financial results; and, covenants in our Senior Notes and credit facility agreements require us to comply with certain covenants and meet financial maintenance tests and the failure to comply with these requirements could have a material impact to us.
The Company believes this is largely contributed to the increased prevalence and acceptance across all industries of working from home, a trend which the Company expects to continue into the foreseeable future.
The Company believes this is largely contributed to by the increased prevalence and acceptance across all industries of working from home, a trend which the Company expects to continue into the foreseeable future.
These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. The Company has no ongoing federal or state income tax examinations. At this time, management believes it is reasonably possible the aggregate amount of unrecognized tax benefits will decrease by $2,100 within the next 12 months.
These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. The Company has no ongoing federal or state income tax examinations. At this time, management believes it is reasonably possible the aggregate amount of unrecognized tax benefits will decrease by $2,500 within the next 12 months.
Future capital required to finance operations, improvements, and the anticipated growth in the number of stores is expected to come from cash generated by operations, its $450,000 committed unsecured revolving credit facility, its additional $25,000 unsecured bank line of credit, and additional long-term debt or other securities as circumstances may dictate.
Future capital required to finance operations, improvements, and the anticipated growth in the number of stores is expected to come from cash generated by operations, its $850,000 committed unsecured revolving credit facility, its additional $25,000 unsecured bank line of credit, and additional long-term debt or other securities as circumstances may dictate.
Forward-looking statements represent the Company’s current expectations or beliefs concerning future events and trends that we believe may affect our financial condition, liquidity and related sources and needs, supply chain, results of operations and performance at our stores, business strategy, strategic 27 Table of Contents plans, growth opportunities, integration of acquisitions, acquisition synergies, short-term and long-term business operations and objectives including our long-term strategic plan, wholesale fuel, inventory and ingredient costs and the potential effects of the conflict in Ukraine and COVID-19 on our business.
Forward-looking statements represent the Company’s current expectations or beliefs concerning future events and trends that we believe may affect our financial condition, liquidity and related sources and needs, supply chain, results of operations and performance at our stores, business strategy, strategic plans, growth opportunities, integration of acquisitions, acquisition synergies, short-term and long-term business operations and objectives including our long-term strategic plan, wholesale fuel, inventory and ingredient costs and the potential effects of the conflict in Ukraine and COVID-19 on our business.
Although we have attempted to list the important factors that presently affect the Company’s business and operating results, w e further caution you that other factors we have not identified may in the future prove to be important in affecting our business and results of operations.
Although we have attempted to list the important factors that presently affect the Company’s business and operating results, we further caution you that other factors we have not identified may in the future prove to be important in affecting our business and results of operations.
We ask you not to place undue reliance on any forward-looking statements because they speak only of our views as of the statement dates. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
We ask you not to place undue reliance on any forward-looking statements because they speak only of our views as of the statement dates. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. 28 Table of Contents
At April 30, 2022, the Company leased the combination of land and/or building at 114 locations. The Company’s business is seasonal, and generally experiences higher sales and profitability during the first and second fiscal quarters (May-October), when guests tend to purchase greater quantities of fuel and certain convenience items such as beer, sports drinks, water, soft drinks and ice.
At April 30, 2023, the Company leased the combination of land and/or building at 121 locations. The Company’s business is seasonal, and generally experiences higher sales and profitability during the first and second fiscal quarters (May-October), when guests tend to purchase greater quantities of fuel and certain convenience items such as beer, sports drinks, water, soft drinks and ice.
As a result of the Buchanan Energy acquisition, we acquired a dealer network where Casey’s manages fuel wholesale supply agreements to these stores. The activity related to this dealer network is included in the 'Other' category and is presented gross of applicable costs.
As a result of the Buchanan Energy acquisition in the prior fiscal year, we acquired a dealer network where Casey’s manages fuel wholesale supply agreements to these stores. The activity related to this dealer network is included in the 'Other' category and is presented gross of applicable costs.
Similar to most of our store footprint, the "GoodStop" locations offer fuel for sale on a self-serve basis, and a broad selection of snacks, beverages, tobacco products, and other essentials. However, these locations typically do not have a kitchen and have limited prepared food offerings. As of April 30, 2022, 46 stores operate under the "GoodStop" brand.
Similar to most of our store footprint, the "GoodStop" locations offer fuel for sale on a self-serve basis, and a broad selection of snacks, beverages, tobacco products, and other essentials. However, these locations typically do not have a kitchen and have limited prepared food offerings. As of April 30, 2023, 43 stores operate under the "GoodStop" brand.
Recent Accounting Pronouncements Refer to Note 1 of the consolidated financial statements for a description of new accounting pronouncements applicable to the Company. Liquidity and Capital Resources Due to the nature of our business, cash provided by operations is our primary source of liquidity.
Recent Accounting Pronouncements Refer to Note 1 of the consolidated financial statements for a description of new accounting pronouncements applicable to the Company. 24 Table of Contents Liquidity and Capital Resources Due to the nature of our business, cash provided by operations is our primary source of liquidity.
The Company finances our inventory purchases primarily from normal trade credit aided by relatively rapid inventory turnover. This turnover allows us to conduct operations without large amounts of cash and working capital. As of April 30, 2022, the Company’s ratio of current assets to current liabilities was 0.80 to 1.
The Company finances our inventory purchases primarily from normal trade credit aided by relatively rapid inventory turnover. This turnover allows us to conduct operations without large amounts of cash and working capital. As of April 30, 2023, the Company’s ratio of current assets to current liabilities was 0.99 to 1.
As the specific payment dates for a portion of the deferred compensation outstanding are unknown due to the unknown retirement dates of many of the participants, the related timing of the payment of the balances have not been reflected in the above “Payments due by period” table. However, known payments of $10,418 will be due during the next 5 years.
As the specific payment dates for a portion of the deferred compensation outstanding are unknown due to the unknown retirement dates of many of the participants, the related timing of the payment of the balances have not been reflected in the above “Payments due by period” table. However, known payments of $8,777 will be due during the next 5 years.
More recently, during the end of the Company’s 2022 fiscal year, and continuing thereafter, oil and fuel prices have seen a quick and dramatic increase, in part, as a result of the conflict in Ukraine, as well as other macroeconomic conditions, which also directly impacts the retail price of fuel that we sell at our stores.
More recently, during the end of the Company’s 2022 fiscal year, oil and fuel prices saw a quick and dramatic increase, in part, as a result of the conflict in Ukraine, as well as other macroeconomic conditions, which also directly impacts the retail price of fuel that we sell at our stores.
Interest and penalties related to income taxes are classified as income tax expense in our consolidated financial statements. The federal statute of limitations remains open for the tax years 2018 and forward. Tax years 2012 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.
Interest and penalties related to income taxes are classified as income tax expense in our consolidated statements of income. The federal statute of limitations remains open for the tax years 2019 and forward. Tax years 2013 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.
Some factors affecting the uncertainty of claims include the development time frame, settlement patterns, litigation and adjudication direction, and medical treatment and cost trends. The liability is not discounted. The balances of our self-insurance reserves were $53,752 and $50,526 for the years ended April 30, 2022 and 2021, respectively.
Some factors affecting the uncertainty of claims include the development time frame, settlement patterns, litigation and adjudication direction, and medical treatment and cost trends. The liability is not discounted. The balances of our self-insurance reserves were $61,168 and $53,752 for the years ended April 30, 2023 and 2022, respectively.
While the Company believes that its average revenue less cost of goods sold per gallon (excluding depreciation and amortization and credit card fees) will remain elevated from pre-COVID-19 pandemic levels for the foreseeable future, it is possible that increased oil and fuel prices, rising interest rates, macroeconomic conditions and/or continuing conflicts or disruptions involving oil producing countries may materially impact the performance of this metric.
While the Company believes that its average revenue less cost of goods sold per gallon (excluding depreciation and amortization) will remain elevated from historical levels for the foreseeable future, it is possible that increased oil and fuel prices, rising interest rates, macroeconomic conditions and/or continuing conflicts or disruptions involving oil producing countries may materially impact the performance of this metric.
Fuel Volatility Since the beginning of the COVID-19 pandemic, the price of crude oil, and in turn the wholesale cost of fuel, has been volatile. Initially, at the outset of the pandemic, oil and fuel prices fell dramatically; however, as the economy in general began to emerge from the COVID-19 pandemic, prices began to modestly increase over time.
Fuel Volatility Since early calendar 2020, the price of crude oil, and in turn the wholesale cost of fuel, has been volatile compared to historical averages. Initially, at the outset of the pandemic, oil and fuel prices fell dramatically; however, as the economy in general began to emerge from the COVID-19 pandemic, prices began to modestly increase over time.
The Company incurred impairment charges of $1,056 in fiscal 2022, $3,846 in fiscal 2021, and $1,177 in fiscal 2020. Impairment charges are a component of operating expenses. Self-insurance 24 Table of Contents The Company is primarily self-insured for Team Member healthcare, workers’ compensation, general liability, and automobile claims.
The Company incurred impairment charges of $3,500 in fiscal 2023, $1,056 in fiscal 2022, and $3,846 in fiscal 2021. Impairment charges are a component of operating expenses. Self-insurance The Company is primarily self-insured for Team Member healthcare, workers’ compensation, general liability, and automobile claims.
Long-Term Strategic Plan The Company announced an updated, long-term strategic plan in January 2020 focused on four strategic objectives: reinvent hospitality and the guest experience; be where the guest is by accelerating unit growth; create capacity through best-in-class efficienci es; and, invest in our people and culture.
Long-Term Strategic Plan The Company announced a three-year strategic plan in January 2020 focused on four strategic objectives: reinvent hospitality and the guest experience; be where the guest is by accelerating unit growth; create capacity through best-in- class efficiencies; and, invest in our people and culture.
At April 30, 2022, the Company had a total of $10,259 in gross unrecognized tax benefits. Of this amount, $8,105 represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $371 as of April 30, 2022.
At April 30, 2023, the Company had a total of $10,957 in gross unrecognized tax benefits. Of this amount, $8,656 represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $386 as of April 30, 2023.
This expected decrease is due to the expiration of statute of limitations related to certain federal and state income tax filing positions. Included in long-term liabilities on our consolidated balance sheet at April 30, 2022, was a $12,746 obligation for deferred compensation. Additionally, $1,040 was recognized in current liabilities as of April 30, 2022 related to deferred compensation.
This expected decrease is due to the expiration of statute of limitations related to certain federal and state income tax filing positions. Included in other long-term liabilities on our consolidated balance sheet at April 30, 2023, was a $11,534 obligation for deferred compensation. Additionally, $756 was recognized in current liabilities as of April 30, 2023 related to deferred compensation.
Approximately 2% of total revenue for the year-ended April 30, 2022 relates to this dealer network. Approximately 51% of all Casey’s were opened in areas with populations of fewer than 5,000 people, while approximately 25% of all stores were opened in communities with populations of more than 20,000 persons.
Approximately 1% of total revenue for the year-ended April 30, 2023 relates to this dealer network Approximately 50% of all Casey’s were opened in areas with populations of fewer than 5,000 people, while approximately 26% of all stores were opened in communities with populations of more than 20,000 persons.
The Company's plan is based on building on our proud heritage and distinct advantages to become more contemporary through new capabilities, technology, data, and processes. We believe this will best position the Company to address rapidly evolving shifts in consumer habits and other macro retail trends.
The Company's plan was based on building on our proud heritage and distinct advantages to become more contemporary through new capabilities, technology, data, and processes. We believe this will best position the Company to address rapidly evolving shifts in consumer habits and other macro retail trends. The Company closed out its strategic plan at the end of the fiscal year.
Electric Vehicles and Renewable Fuels Casey's is in the early stages of developing a more robust electric vehicle ("EV") strategy and our management team remains committed to understanding if and how the increase demand for, and usage of, EVs impacts consumer behavior across our store footprint and beyond.
Electric Vehicles and Renewable Fuels Casey's continues its process of developing a robust electric vehicle ("EV") strategy and our management team remains committed to understanding if and how the increased demand for, and usage of, EVs impacts consumer behavior across our store footprint and beyond.
All convenience stores carry a broad selection of food (including freshly prepared foods such as pizza, donuts and sandwiches), beverages, tobacco and nicotine products, health and beauty aids, automotive products and other non-food items. As of April 30, 2022, 212 store locations offered car washes.
All convenience stores carry a broad selection of food items (including, but not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, health and beauty aids, automotive products, and other nonfood items. As of April 30, 2023, 217 store locations offered car washes.
We believe our current $450,000 unsecured revolving credit facility, our $25,000 unsecured bank line of credit, current cash and cash equivalents, and the future cash flow from operations will be sufficient to satisfy the working capital needs of our business.
We believe our current $850,000 unsecured revolving credit facility, our $25,000 unsecured bank line of credit (subsequent to year-end this increased to $50,000, see discussion in Note 3), current cash and cash equivalents, and the future cash flow from operations will be sufficient to satisfy the working capital needs of our business.
INDIVIDUAL STORE COMPARISONS (1) Years ended April 30, 2022 2021 2020 Average retail sales $ 5,206 $ 3,894 $ 4,203 Average retail inside sales (2) 1,840 1,720 1,659 Average revenue less cost of goods sold (excluding depreciation and amortization) on inside sales (2) 723 655 647 Average retail sales of fuel 3,366 2,174 2,544 Average revenue less cost of goods sold (excluding depreciation and amortization) on fuel 363 338 280 Average operating income (3) 367 338 291 Average number of gallons sold 1,047 981 1,055 (1) Individual store comparisons include only those stores that had been in operation for at least one full year and remained open on April 30 of the fiscal year indicated. 22 Table of Contents (2) Inside sales is comprised of sales related to the grocery and general merchandise and prepared food and dispensed beverage categories.
INDIVIDUAL STORE COMPARISONS (1) Years ended April 30, 2023 2022 2021 Average retail sales $ 6,064 $ 5,206 $ 3,894 Average retail inside sales (2) 1,956 1,840 1,720 Average revenue less cost of goods sold (excluding depreciation and amortization) on inside sales (2) 752 723 655 Average retail sales of fuel 4,110 3,366 2,174 Average revenue less cost of goods sold (excluding depreciation and amortization) on fuel 450 363 338 Average operating income (3) 445 367 338 Average number of gallons sold 1,092 1,047 981 (1) Individual store comparisons include only those stores that had been in operation for at least one full year and remained open on April 30 of the fiscal year indicated.
Growth Strategies : We may experience difficulties implementing and realizing the results of our long-term strategic plan; and, we may not be able to identify, acquire, and integrate new properties and stores, which could adversely affect our ability to grow our business.
Growth Strategies : We may not be able to identify, acquire, and integrate new properties and stores, which could adversely affect our ability to grow our business.
The grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 32.7% from 32.0% during fiscal 2022 compared to fiscal 2021.
Fuel cents per gallon increased to 40.2 cents in fiscal 2023 from 36.0 cents in fiscal 2022. The grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 33.6% from 32.7% during fiscal 2023 compared to fiscal 2022.
The Company is also temporarily operating certain locations acquired from Buchanan Energy during the fiscal year under the name, "Bucky's." The Company is in the process of transitioning all "Bucky's" locations to either the "Casey's" or "GoodStop" brand. These locations typically have similar offerings to the “Casey’s” branded stores.
The Company is also temporarily operating certain locations acquired from Buchanan Energy during the prior fiscal year under the name "Bucky's" and certain locations acquired from Minit Mart LLC during the current fiscal year under the name "Minit Mart." The Company is in the process of transitioning all "Bucky's" and "Minit Mart" locations to either the "Casey's" or "GoodStop" brand.
The following table represents the roll forward of store growth throughout fiscal 2022: 19 Table of Contents Store Count Stores at April 30, 2021 2,243 New store construction 21 Acquisitions 207 Acquisitions not opened (3) Prior acquisitions opened 4 Closed (20) Stores at April 30, 2022 2,452 Acquisitions in the table above include, in part, 89 stores which were acquired from Buchanan Energy in May, 2021.
The following table represents the roll forward of store growth throughout fiscal 2023: Store Count Stores at April 30, 2022 2,452 New store construction 34 Acquisitions 47 Acquisitions not opened (4) Prior acquisitions opened 2 Closed (10) Stores at April 30, 2023 2,521 19 Table of Contents Acquisitions in the table above include, in part, 26 stores which were acquired from Minit Mart LLC in April 2023.
Finally, the initial onset of COVID-19 in early 2020 caused a significant decrease in store traffic across our entire footprint. While store traffic has markedly increased as the economy has reopened over the past two or so years, the Company has not seen a full return to store traffic levels experienced prior to the pandemic.
While store traffic has markedly increased as the economy reopened over the past two or so years, the Company has not seen a full return to store traffic levels experienced prior to the pandemic.
While COVID-19 will continue to bring challenges 20 Table of Contents and uncertainty to our operating environment, we believe that our resilient business model and the strength of our brand and balance sheet position us well to navigate the pandemic and its impacts.
While the ongoing impacts of COVID-19, in particular those related to governmental actions in response thereto, and those mentioned immediately above, will continue to bring challenges to our operating environment, we believe that our resilient business model and the strength of our brand and balance sheet position us well to navigate the impacts.
During fiscal 2022, we expended $1,228,113 for property and equipment, primarily for construction, acquisition, and remodeling of stores compared with $450,608 in the prior year, primarily due to the acquisition activity discussed previously.
During fiscal 2023, we expended $562,137 for property and equipment, primarily for construction, acquisition, and remodeling of stores compared with $1,228,113 in the prior year. The decrease was primarily due to significant acquisition activity occurring in the prior year (see Note 2 for further discussion).
The Company has installed 114 charging stations at 25 stores, across 8 states. Our current implementation strategy is designed to selectively install charging stations in locations within our footprint where we see higher levels of consumer EV usage. To date, consumer EV demand within our Midwest footprint has been comparatively lower than the levels along the coasts.
Our installation strategy is currently designed to selectively increase our charging stations at locations within our region where we see higher levels of consumer EV buying trends and demand for EV charging. To date, consumer EV demand within our Midwest footprint has been comparatively lower than the levels along the coasts.
In fiscal 2023, we anticipate spending approximately $450-$500 million in capital expenditures, including approximately $135 million in one-time store remodel costs for recently acquired stores. 25 Table of Contents As of April 30, 2022, we had long-term debt and finance lease obligations consisting of: Finance lease liabilities (Note 7) 74,234 3.67% Senior notes (Series A) due in 7 installments beginning June 17, 2022, and ending June 15, 2028 150,000 3.75% Senior notes (Series B) due in 7 installments beginning December 17, 2022 and ending December 18, 2028 50,000 3.65% Senior notes (Series C) due in 7 installments beginning May 2, 2025 and ending May 2, 2031 50,000 3.72% Senior notes (Series D) due in 7 installments beginning October 28, 2025 and ending October 28, 2031 50,000 3.51% Senior notes (Series E) due June 13, 2025 150,000 3.77% Senior notes (Series F) due August 22, 2028 250,000 2.85% Senior notes (Series G) due August 7, 2030 325,000 2.96% Senior notes (Series H) due August 6, 2032 325,000 Variable rate Term Loan Facilities, due January 6, 2026 265,625 Debt issuance costs (1,990) 1,687,869 Less current maturities 24,466 1,663,403 Interest on the 3.67% Senior notes Series A and 3.75% Senior notes Series B is payable on the 17th day of each June and December.
Cash provided by financing decreased $308,513, primarily due to $450,000 in draws on the Company's term loan facility to finance acquisitions in the prior year, offset by prior year prepayments of $167,500 on the Company's term loan facility due to strong free cash flow. 25 Table of Contents As of April 30, 2023, we had long-term debt and finance lease obligations consisting of: Finance lease liabilities (Note 7) $ 95,072 3.67% Senior Notes (Series A) due in 7 installments beginning June 17, 2022, and ending June 15, 2028 135,000 3.75% Senior Notes (Series B) due in 7 installments beginning December 17, 2022 and ending December 18, 2028 45,000 3.65% Senior Notes (Series C) due in 7 installments beginning May 2, 2025 and ending May 2, 2031 50,000 3.72% Senior Notes (Series D) due in 7 installments beginning October 28, 2025 and ending October 28, 2031 50,000 3.51% Senior Notes (Series E) due June 13, 2025 150,000 3.77% Senior Notes (Series F) due August 22, 2028 250,000 2.85% Senior Notes (Series G) due August 7, 2030 325,000 2.96% Senior Notes (Series H) due August 6, 2032 325,000 Variable rate term loan facility, requiring quarterly installments ending April 21, 2028 250,000 Debt issuance costs (1,698) $ 1,673,374 Less current maturities 52,861 $ 1,620,513 Interest on the 3.67% Senior Notes Series A and 3.75% Senior Notes Series B is payable on the 17th day of each June and December.
Forward-Looking Statements This Form 10-K, including but not limited to the Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
We were also partially self-insured for general liability and auto liability under an agreement that provides for annual stop-loss limits equal to or exceeding $2,000 for auto liability and $1,000 for workers' compensation and general liability. 27 Table of Contents Forward-Looking Statements This Form 10-K, including but not limited to the Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
Every new store has the capability to sell higher blended ethanol, and we aim to continue growing sales of renewable fuels throughout our footprint.
Every new store has the capability to sell higher blended ethanol, and we aim to continue growing sales of renewable fuels throughout our footprint Fiscal 2023 Compared with Fiscal 2022 Total revenue for fiscal 2023 increased 16.5% ($2,141,881) to $15,094,475.
SAME STORE SALES BY CATEGORY (1) Years ended April 30, 2022 2021 2020 Fuel gallons (2) 4.4 % (8.1) % (5.1) % Grocery and general merchandise (3) 6.3 % 6.6 % 1.9 % Prepared food and dispensed beverage (3) 7.4 % (2.1) % (1.5) % (1) Same-store sales is a common metric used in the convenience store industry.
(3) Average operating income represents retail sales less cost of goods sold, operating expenses and depreciation and amortization attributable to a particular store; it excludes interest, federal and state income taxes, and Company operating expenses not attributable to a particular store. 22 Table of Contents SAME STORE SALES BY CATEGORY (1) Years ended April 30, 2023 2022 2021 Fuel gallons (0.8) % 4.4 % (8.1) % Grocery and general merchandise (2) 6.3 % 6.3 % 6.6 % Prepared food and dispensed beverage (2) 7.1 % 7.4 % (2.1) % (1) Same-store sales is a common metric used in the convenience store industry.
Grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) was positively impacted by mix shift, including gaining market share on the private label program, procurement initiatives, and price increases, offset by inflationary pressures.
Grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) was positively impacted by mix shift to higher margin items like energy drinks, candy, and private label products, as well as retail price adjustments, offset by inflationary pressures.
During the fourth quarter of the fiscal year, the Company made prepayments of $167,500 on its term loan facilities. 26 Table of Contents To date, we have funded capital expenditures primarily through funds generated from operations, the proceeds of the sale of common stock, issuance of debt, and existing cash.
To date, we have funded capital expenditures primarily through funds generated from operations, the proceeds of the sale of common stock, issuance of debt or other bank financing, and existing cash.
As EV demand from our guests increases, we are prepared to integrate charging station options at our nearby stores. The Company also remains committed to offering renewable fuel options at our stores. Currently, 100% of our stores offer fuel with at least 10% of blended ethanol and 44% of our stores offer biodiesel.
As EV demand from our guests increases, we are prepared to strategically integrate charging station options at select stores. The Company also remains committed to offering renewable fuel options at our stores and continues to expand its alternative fuel options in response to evolving guest needs and as part of its environmental stewardship efforts.
The prepared food and dispensed beverage revenue less related cost of goods sold (exclusive of depreciation and amortization) decreased to 59.2% from 60.1% during fiscal 2022 compared to the prior year, primarily due to inflationary pressures.
The prepared food and dispensed beverage revenue less related cost of goods sold (exclusive of depreciation and amortization) decreased to 56.6% from 59.2% during fiscal 2023 compared to the prior year, primarily due to higher ingredient costs, notably cheese, and higher levels of stales, which were partially offset by retail price adjustments. Operating expenses increased 8.1% ($158,469) in fiscal 2023.
We have the right at any time to prepay all or a portion of the outstanding balance without premium or penalty, with prior notice given.
The applicable margins are dependent upon the Company's quarterly Consolidated Leverage Ratio, as defined in the credit agreement. We have the right at any time to prepay all or a portion of the outstanding balance without premium or penalty, other than customary “breakage” costs with respect to Term SOFR-based borrowings, with prior notice given.
Although this has remained relatively consistent since that time on a longer-term basis, this metric can fluctuate significantly, and sometimes unpredictably, in the short-term.
In addition, during the past three calendar years, the Company, and the retail fuel industry as a whole, has experienced historically high average revenue less cost of goods sold per gallon (excluding depreciation and amortization). Although this has remained relatively consistent since that time, on a longer-term basis, this metric can fluctuate significantly, and sometimes unpredictably, in the short-term.
Critical Accounting Policies and Estimates Critical accounting policies are those accounting policies that management believes are important to the portrayal of our financial condition and results of operations and require management’s most difficult, subjective judgments, often because of the need to estimate the effects of inherently uncertain factors.
The increase was primarily attributable to higher profitability both inside the store and in fuel, which was partially offset by higher operating expenses due to operating 69 more stores than one year ago, an increase in store operations cost, as well as increased credit card fees resulting from increased revenue. 23 Table of Contents Critical Accounting Policies and Estimates Critical accounting policies are those accounting policies that management believes are important to the portrayal of our financial condition and results of operations and require management’s most difficult, subjective judgments, often because of the need to estimate the effects of inherently uncertain factors.
Total revenue less cost of goods sold (excluding depreciation and amortization) was 21.3% for fiscal 2022 compared with 27.1% for the prior year. Fuel cents per gallon increased to 36.0 cents in fiscal 2022 from 34.9 cents in fiscal 2021.
Prepared food and dispensed beverage revenue increased 9.8% to $1,322,560 due to increased sales of pizza slices, whole pies, and donuts. Total revenue less cost of goods sold (excluding depreciation and amortization) was 20.4% for fiscal 2023 compared with 21.3% for the prior year.
The majority of all operating expenses are wages and wage-related costs. Depreciation and amortization expense increased 14.5% ($38,346) to $303,541 in fiscal 2022 from $265,195 in fiscal 2021.
Same-store employee expense was flat as the increase in employee wage rate was offset by a 2% reduction in same-store labor hours. The majority of all operating expenses are wages and wage-related costs. Depreciation and amortization expense increased 3.2% ($9,590) to $313,131 in fiscal 2023 from $303,541 in fiscal 2022.
The following table contains a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months and years ended April 30, 2022 and 2021, respectively: 23 Table of Contents Three months ended Years ended April 30, 2022 April 30, 2021 April 30, 2022 April 30, 2021 Net income 59,777 $ 41,698 $ 339,790 $ 312,900 Interest, net 15,291 11,168 56,972 46,679 Depreciation and amortization 77,866 69,897 303,541 265,195 Federal and state income taxes 12,905 11,921 100,938 94,470 EBITDA $ 165,839 $ 134,684 $ 801,241 $ 719,244 (Gain) loss on disposal of assets and impairment charges (333) 5,872 (1,201) 9,680 Adjusted EBITDA $ 165,506 $ 140,556 $ 800,040 $ 728,924 For the three months ended April 30, 2022, EBITDA and Adjusted EBITDA increased 23.1% and 17.8% respectively, when compared to the same period a year ago.
The following table contains a reconciliation of net income to EBITDA and Adjusted EBITDA for the years ended April 30, 2023 and 2022, respectively: Years ended April 30, 2023 April 30, 2022 Net income $ 446,691 $ 339,790 Interest, net 51,815 56,972 Depreciation and amortization 313,131 303,541 Federal and state income taxes 140,827 100,938 EBITDA $ 952,464 $ 801,241 Loss (gain) on disposal of assets and impairment charges 6,871 (1,201) Adjusted EBITDA $ 959,335 $ 800,040 For the year ended April 30, 2023, EBITDA and Adjusted EBITDA increased 18.9% and 19.9%, respectively.
We derive our revenue from the retail sale of fuel and the products offered in our stores. During the fiscal year, the Company introduced certain stores branded or rebranded as "GoodStop (by Casey’s)".
In addition, all but seven store locations offer fuel for sale on a self-service basis. During the prior fiscal year, the Company introduced certain stores branded or rebranded as "GoodStop (by Casey’s)".
The increase was due primarily to acquisitions and capital expenditures made in fiscal 2022 and fiscal 2021. 21 Table of Contents The effective tax rate decreased to 22.9% in fiscal 2022 from 23.2% in fiscal 2021.
The decrease was primarily attributable to an increase in interest income due to the increase in cash and cash equivalents and interest rates. The effective tax rate increased to 24.0% in fiscal 2023 from 22.9% in fiscal 2022.
(3) The increase in same-store sales for prepared food and dispensed beverage and grocery and general merchandise for 2022 as compared to 2021 was primarily due to increased demand as store traffic improved throughout the duration of the COVID-19 pandemic, price increases relating to inflationary pressures, as well as improved sales in pizza slices, breakfast items related to the breakfast menu relaunch, packaged beverages, and salty snacks.
(2) The increase in grocery and general merchandise same-store sales was primarily due to strong sales of packaged beverages, snacks and candy. The increase in prepared food and dispensed beverage same-store sales was attributable to improved sales in pizza slices, whole pies, and donuts. Both categories were also impacted favorably by strategic retail price adjustments.
Overview The Company primarily operates convenience stores under the names "Casey's" and “Casey’s General Store” throughout 16 states, primarily in Iowa, Illinois, and Missouri. On April 30, 2022, there were a total of 2,452 stores in operation.
Overview As of April 30, 2023, Casey’s General Stores, Inc. and its direct and indirect wholly-owned subsidiaries operate convenience stores primarily under the names "Casey's" and "Casey’s General Store" (collectively, with the stores below referenced as "GoodStop", "Bucky's" or "Minit Mart", referred to as "Casey's" or the "Company") throughout 16 states, primarily in Iowa, Missouri, and Illinois.
Amounts borrowed under the Company's term loan facilities bear interest at variable rates based upon, at the Company’s option, either: (i) the Adjusted LIBO Rate, plus a margin ranging from 1.55% to 2.60%; or (ii) the ABR, plus a margin ranging from 0.20% to 1.60%.
Amounts borrowed under the Credit Facilities bear interest at variable rates based upon, at the Company’s option, either: (a) either Term SOFR or Daily Simple SOFR, in each case plus 0.10% (with a floor of 0.00%) for the interest period in effect, plus an applicable margin ranging from 1.10% to 1.70% or (b) an alternate base rate, which generally equals the highest of (i) the prime 26 Table of Contents commercial lending rate announced by the Administrative Agent as its “prime rate”, (ii) the federal funds rate plus 1/2 of 1.00%, and (iii) Adjusted Daily Simple SOFR plus 1.00%, each plus an applicable margin ranging from 0.10% to 0.70% and each with a floor of 1.00%.
Net cash provided by operating activities decreased $15,347 (1.9%) for the year ended April 30, 2022, primarily due to increases in income tax receivable, inventories, and accrued expenses.
Net cash provided by operating activities was $881,951 for the year ended April 30, 2023, compared to $788,741 for the year ended April 30, 2022.
The decrease in the ratio from the prior year is partially attributable to a decrease in cash and cash equivalents associated with payments for the acquisitions of Buchanan Energy, 48 stores from Circle K and 40 stores from Pilot, offset by an increase in inventory due to operating 209 more stores than a year ago and higher fuel pricing.
The ratio at April 30, 2022 and at April 30, 2021 was 0.80 to 1 and 1.18 to 1, respectively. The increase in the ratio from the prior year is partially attributable to an increase in cash and cash equivalents due to strong free cash flows, and a decrease in payments for acquisitions.
At April 30, 2022, we were partially self-insured for workers’ compensation claims in all 16 states of our marketing territory; we also were partially self-insured for general liability and auto liability under an agreement that provides for annual stop-loss limits equal to or exceeding $2,000 for auto liability and $1,000 for workers' compensation and general liability.
At April 30, 2023, we were partially self-insured for workers’ compensation claims in all but two states of our operating territory. In North Dakota and Ohio, we are required to participate in an exclusive, state managed fund for all workers compensation claims.
The table below presents our significant contractual obligations, including interest, at April 30, 2022: Contractual obligations Payments due by period Total Less than 1 year 1-3 years 3-5 years More than 5 years Senior notes (1) $ 1,925,775 $ 64,362 $ 149,737 $ 577,894 $ 1,133,782 Finance lease obligations 107,566 7,235 12,246 10,408 77,677 Operating lease obligations 153,277 7,875 14,997 14,527 115,878 Unrecognized tax benefits 10,259 — — — — Deferred compensation 14,156 — — — — Total $ 2,211,033 $ 79,472 $ 176,980 $ 602,829 $ 1,327,337 (1) The Senior notes portion of the table above excludes interest payments related to the Company's term loan facilities, due to the variable nature of the required interest payments.
The table below presents our significant contractual obligations, including interest, at April 30, 2023: Contractual obligations Payments due by period Total Less than 1 year 1-3 years 3-5 years More than 5 years Long-term debt (1) $ 1,845,788 $ 87,959 $ 329,559 $ 374,706 $ 1,053,564 Finance lease obligations 130,897 12,398 21,502 20,240 76,757 Operating lease obligations 164,321 8,140 16,322 16,086 123,773 Unrecognized tax benefits 10,957 — — — — Deferred compensation 12,585 — — — — Total $ 2,164,548 $ 108,497 $ 367,383 $ 411,032 $ 1,254,094 (1) The long-term debt portion of the table above excludes interest payments related to the Company's term loan facility, due to the variable nature of the required interest payments.
Removed
The Company also operates two stores selling primarily tobacco and nicotine products, one liquor-only store, and one grocery store. The Company acquired a dealer network from Buchanan Energy during the 2022 fiscal year. As of April 30, 2022, there were 76 dealer locations where Casey’s manages fuel wholesale supply agreements to these stores. These locations are not operated by Casey's.
Added
On April 30, 2023, there were a total of 2,521 stores in operation.
Removed
The table excludes three sites that were included in the transaction, but were divested by the Company shortly after closing as part of a consent order with the Federal Trade Commission. Additionally, it includes 48 stores from the Circle K transaction that closed in June and 40 stores from the Pilot transaction that closed in December.
Added
These locations typically have similar offerings to the "Casey’s" or "GoodStop" branded stores. The Company has 76 dealer locations, where Casey’s manages fuel wholesale supply agreements to these stores. These locations are not operated by Casey's and are not included in our overall store count in the paragraph below.
Removed
The Company made significant progress towards its strategic plan goals during the 2022 fiscal year.
Added
Some of the key highlights from this past fiscal year include: • Grew our store count through new store construction and a number of strategic acquisitions • Diluted EPS of $11.91, up 30.8% over the prior year • Private label penetration in the grocery and general merchandise category was over 9% on both units and gross profit for the year • Casey's Rewards members grew to 6.4 million at year-end COVID-19 and Related Impacts The onset of COVID-19 caused a significant decrease in store traffic across our entire footprint.
Removed
Examples include: • Grew our store count through a number of strategic acquisitions, including 89 stores from Buchanan Energy, 48 stores from Circle K, and 40 stores from Pilot, resulting in the largest unit growth year in the Company's history • Rolled out a successful breakfast menu relaunch with innovative new items and bean-to-cup coffee • Expanded our private label products by over 100 items and continued to expand the program's market share, exiting the fourth quarter at 5% sales penetration of the grocery and general merchandise category • Introduced a fuel wholesale network through the acquisition of Buchanan Energy, which is made up of 76 locations as of April 30, 2022 • Stood up new fuel technology to optimize fuel procurement efforts • Continued to expand our digital offerings and have increased our Casey's Rewards enrollment to approximately 5 million members, an increase of 1.3 million during the fiscal year • Improved the efficiency of our distribution network with the new distribution center in Joplin, Missouri, which opened in the prior fiscal year COVID-19 and Related Impacts Throughout fiscal year 2022, the Company continued to adapt to the challenges caused or contributed to by COVID-19 and its new and unpredictable variants.
Added
Generally, oil and fuel prices have decreased from levels seen throughout the past two years, but they remain elevated compared to historical levels. The Company expects these comparatively higher prices to remain into the 2024 fiscal year.
Removed
In general, reported COVID-19 cases across our footprint were down, although we did see a slight uptick at the end of the fiscal year. Overall, this has led to fewer staffing challenges due to illness, temporary store closures and special cleaning costs.
Added
As consumer demand for alternative fuel options continues to grow, Casey’s has continued to add EV charging stations across our 16-state footprint. The Company has installed 138 charging stations at 29 stores, across 10 states.
Removed
On the other hand, the ongoing challenges included, but were not limited to, a stressed labor market, as it became increasingly challenging to find, hire and retain store Team Members. In response, the Company held two large-scale hiring events during the year, each of which led to the onboarding of a significant number of Team Members to support our stores.
Added
Currently, 20 Table of Contents almost all of our stores offer fuel with at least 10% of blended ethanol and 43% of our stores offer biodiesel.
Removed
In addition, the Company saw increasing wage pressure, as wages across the convenience store, restaurant and retail industries in general continued to rise, which directly contributes to increased operating expenses. The Company expects to see these labor challenges continue throughout the 2023 fiscal year. COVID-19 also continues to pressure our supply chain, and the supply chains of our suppliers.
Added
Total revenue was impacted favorably by operating 69 more stores than a year ago, elevated retail fuel prices, and strategic retail price adjustments. Retail fuel sales for the fiscal year were $10,027,310, an increase of 20.6% primarily due to a 16.5% increase in the average price of fuel.
Removed
While the Company has been successful in hiring and retaining drivers, some supplier networks have been challenged by a lack of drivers, which in some cases has led to delays in deliveries to our distribution centers and stores.
Added
Fuel gallons sold increased 3.6% to 2.7 billion gallons, which increased fuel revenue by an additional $349,451. Grocery and general merchandise revenue for the fiscal year was $3,445,777, an increase of 9.7% due to strong sales of packaged beverages, snacks, and candy.
Removed
Other supply chain challenges have included the unavailability of certain products from our suppliers, which has led to these products being out of stock or not available at all. The Company also expects these issues to continue throughout the 2023 fiscal year.
Added
A one-time payment of $15,297 was received from the resolution of a legal matter, which reduced operating expenses by approximately 1%. Approximately 3% of the increase is due to operating 69 more stores than a year ago. Approximately 2% of the increase was related to same-store operations.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−0 removed2 unchanged
Biggest changeThe portfolio includes only marketable securities with active secondary or resale markets to ensure portfolio liquidity. Based upon the outstanding balance of the Company's term loan facilities as of April 30, 2022, an immediate 100-basis-point move in interest rates would have an approximate annualized impact of $2.7 million on interest expense.
Biggest changeBased upon the outstanding balance of the Company's term loan facilities as of April 30, 2023, an immediate 100-basis-point move in interest rates would have an approximate annualized impact of $2.5 million on interest expense. We do, from time to time, participate in a forward buy of certain commodities.
We attempt to mitigate 28 Table of Contents default risk by investing in only high-quality credit securities that we believe to be low risk and by positioning our portfolio to respond appropriately to a significant reduction in a credit rating of any investment issuer or guarantor.
We attempt to mitigate default risk by investing in only high-quality credit securities that we believe to be low risk and by positioning our portfolio to respond appropriately to a significant reduction in a credit rating of any investment issuer or guarantor. The portfolio includes only marketable securities with active secondary or resale markets to ensure portfolio liquidity.
We do, from time to time, participate in a forward buy of certain commodities. These are not accounted for as derivatives under the normal purchase and sale exclusions under the applicable accounting guidance. 29
These are not accounted for as derivatives under the normal purchase and sale exclusions under the applicable accounting guidance. 29 Table of Contents

Other CASY 10-K year-over-year comparisons