Casey's Updates Comps. Outlook; Outlines Plans For Enhanced Store Performance

(RTTNews) - Casey's General Stores, Inc. (CASY) issued a summary of its current and previous fiscal 2018 same-store sales growth guidance: Fuel (Gallons and CPG): 2.2 - 2.7% (previous, 1.0 - 2.0%); Grocery and Other Merchandise: 2.0 - 3.0% (previous, 2.0 - 4.0%); and Prepared Food and Fountain: 2.0 - 3.0% (previous, 2.0 - 4.0%).

For fiscal 2021, Casey's established its same-store sales growth expectations : Fuel Gallons: 4+%; Grocery & Other Merchandise: 6+%; and Prepared Food & Foundation: 10+%.

For the third quarter, Casey's reported earnings per share of $5.08, compared to $0.58 per share, a year ago. The enactment of the Tax Cuts and Jobs Act in December 2017 generated a one-time estimated tax benefit of $175 million in the third quarter, or approximately $4.60 per earnings per share. Same store sales were: Fuel: gallons up 3.8%; Grocery and Other Merchandise: up 2.5%; and Prepared Food and Fountain: up 1.7%.

"We are implementing key initiatives that will drive accelerated growth and profitability and deliver enhanced returns for shareholders," said Terry Handley, CEO of Casey's.

Casey's expects to enhance store performance primarily through three key initiatives: Digital Engagement; Fleet Card; and Price Optimization. Casey's said it is also continuing to focus on implementing its ongoing cost reduction measures and managing its operating expenses.

Casey's also announced the appointment of three new independent directors and named independent director Lynn Horak the new Chairman of the Board. The company also announced other governance changes, including the adoption of proxy access, majority voting in director elections (subject to shareholder approval) and implementation of director age and tenure limitations.

Casey's currently has approximately $107 million of capacity remaining under the existing share repurchase program as of January 31, 2018, and expects to complete the existing authorization in the first half of calendar year 2018. In addition, the company has authorized a new $300 million share repurchase program through fiscal year 2020.