Business Wire | Dec 7, 2020 05:15PM EST

Casey's Posts Record Second Quarter Results and Raises Dividend

Dec. 07, 2020

ANKENY, Iowa--(BUSINESS WIRE)--Dec. 07, 2020--Casey's General Stores, Inc. ("Casey's" or the "Company") (Nasdaq symbol CASY) one of the leading convenience store chains in the United States, today announced financial results for the three and six months ended October 31, 2020.

Second Quarter Key Highlights

* Diluted earnings per share of $3.00 compared to $2.21 for the same period a year ago, an increase of 36%. * Fuel gross profit increased 45% with a fuel margin of 35.3 cents per gallon. Same-store gallons sold decreased 8.6% compared to prior year but improved sequentially from first quarter. * Inside same-store sales increased 3.5% with a margin of 41.0%, inside gross profit increased 2.8%. * Digital sales increased 127% compared to prior year. Casey's Rewards recently exceeded 3 million members. * The Board of Directors increased the dividend to $0.34 per share, an increase of 6%. * Buchanan Energy acquisition expected to close in December.

"Casey's had a remarkable second quarter and is well on our way to executing our long-term strategic plan," said President and CEO Darren Rebelez. "The Company delivered well-balanced financial results, with contributions from both ongoing strong fuel profitability and inside sales volume and profit improvements. Casey's also recently announced an agreement for the largest acquisition in the Company's history, the 94-store Bucky's chain located primarily in Illinois and Nebraska. Finally, the Board's decision to raise the dividend is a sign of continuing confidence in the Company's ability to achieve strong financial results and maintain our already excellent financial flexibility in both the short and long term."

Earnings

Three Months Ended October Six Months Ended 31, October 31,

2020 2019 2020 2019

Net income (in thousands) $ 111,983 $ 81,981 $ 232,575 $ 167,796

Diluted earnings per $ 3.00 $ 2.21 $ 6.24 $ 4.52share

Adjusted EBITDA (in $ 223,231 $ 184,412 $ 460,986 $ 370,784thousands)

Net income, diluted EPS, and Adjusted EBITDA (reconciled later in the document) in the second quarter were significantly greater than prior year due to higher fuel margin and inside gross profit, as well as operating 38 more stores than this time last year.

Fuel

Three Months Ended Six Months Ended October October 31, 31,

2020 2019 2020 2019

Fuel gallons sold (in 577,581 614,071 1,127,089 1,233,155 thousands)

Same-store gallons sold (8.6) % (1.8) % (11.7) % (2.0) %decrease

Fuel gross profit (in $ 204,154 $ 140,798 $ 414,184 $ 291,787 thousands)

Fuel margin (cents pergallon, excluding credit 35.3 ? 22.9 ? 36.7 ? 23.7 ?card fees)

Same-store gallons sold were adversely impacted by lower guest traffic due to the COVID-19 pandemic, though volumes improved from first quarter. Fuel gross profit benefited from a higher fuel margin driven in part by the Company's centralized retail pricing capability and procurement initiatives. The Company sold $3.8 million in renewable fuel credits in the second quarter, comparable to the prior year.

Inside

Three Months Ended October Six Months Ended October 31, 31,

2020 2019 2020 2019

Inside sales (in $ 1,007,048 $ 958,408 $ 2,009,675 $ 1,942,203 thousands)

Inside same-store 3.5 % 2.8 % 1.5 % 2.7 %sales increase

Grocery and othermerchandise 6.6 % 3.2 % 5.0 % 3.1 %same-store salesincrease

Prepared food andfountain same-store (3.6) % 1.9 % (6.6) % 1.8 %sales (decrease)increase

Inside gross profit $ 412,653 $ 401,586 $ 809,900 $ 801,051 (in thousands)

Inside margin 41.0 % 41.9 % 40.3 % 41.2 %

Grocery and other 33.3 % 33.3 % 32.7 % 32.3 %merchandise margin

Prepared food and 60.1 % 60.9 % 59.9 % 61.6 %fountain margin

Inside same-store sales were driven by strong performance in alcohol, packaged beverage and tobacco, along with continued strength in whole pizza pie sales. This was offset by pressure in the dispensed beverage and bakery categories, though these categories experienced improvements in volume compared to first quarter. Inside sales margin was adversely impacted by the product mix shift from the sales performance noted, but improved sequentially versus first quarter.

Operating Expenses

Three Months Ended Six Months Ended October October 31, 31,

2020 2019 2020 2019

Operating expenses (in $ 410,348 $ 373,383 $ 796,436 $ 753,224 thousands)

Credit card fees (in $ 38,529 $ 38,705 $ 74,020 $ 79,087 thousands)

Same-store operatingexpense excluding credit 5.4 % 3.4 % (0.1) % 3.0 %card fees increase(decrease)

Operating expenses for the quarter were up primarily due to operating 38 more stores than this time last year, as well as incurring $5 million in COVID-related expenses and over $9 million in incremental short and long-term incentive compensation costs due to the strong performance of the Company. Store operating hours were nearly in-line with pre-COVID levels at quarter end.

Expansion

Store Count

Stores at 4/30/2020 2,207

New store construction 14

Prior acquisitions opened 1

Closed (3)

Stores at 10/31/2020 2,219

Casey's is on track to close on the previously disclosed 94-store Bucky's acquisition by the end of the calendar year. The acquisition is a strong strategic fit and is expected to be accretive to earnings in fiscal 2022. In addition, the Company expects to complete the construction of approximately 40 new stores this fiscal year.

Liquidity

At October 31, the Company had approximately $730 million in available liquidity, consisting of approximately $405 million in cash and cash equivalents on hand and $325 million in borrowing capacity on existing lines of credit. The Company intends to finance the Bucky's acquisition with existing cash on hand, a new bank term loan with a 5-year maturity, and a temporary draw on its line of credit.

Share Repurchase

The Company has $300 million remaining under its existing share repurchase program. There were no repurchases made against that authorization in the second quarter.

Dividend

At its December meeting, the Board of Directors voted to increase the quarterly dividend 6% to $0.34 per share. The dividend is payable February 15, 2021 to shareholders of record on February 1, 2021.

Casey's General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

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

(Unaudited)

Three Months Ended Six Months Ended October October 31, 31,

2020 2019 2020 2019

Total revenue $ 2,215,905 $ 2,487,586 $ 4,320,926 $ 5,114,215

Cost of goods sold(exclusive of depreciation 1,584,145 1,930,521 3,065,663 3,991,464and amortization, shownseparately below)

Operating expenses 410,348 373,383 796,436 753,224

Depreciation and 64,294 62,888 130,114 122,696amortization

Interest, net 10,634 12,683 24,041 26,404

Income before income taxes 146,484 108,111 304,672 220,427

Federal and state income 34,501 26,130 72,097 52,631taxes

Net income $ 111,983 $ 81,981 $ 232,575 $ 167,796

Net income per common share

Basic $ 3.02 $ 2.22 $ 6.29 $ 4.55

Diluted $ 3.00 $ 2.21 $ 6.24 $ 4.52

Basic weighted average 37,030,921 36,916,937 37,002,901 36,891,324shares

Plus effect of stock 245,962 219,248 245,749 218,189compensation

Diluted weighted average 37,276,883 37,136,185 37,248,650 37,109,513shares

Casey's General Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

October 31, 2020

April 30, 2020

Assets

Current assets

Cash and cash equivalents

$

404,685

$

78,275

Receivables

56,109

48,500

Inventories

249,842

236,007

Prepaid expenses

18,182

9,801

Income taxes receivable

-

14,667

Total current assets

728,818

387,250

Other assets, net of amortization

72,198

71,766

Goodwill

161,075

161,075

Property and equipment, net of accumulated depreciation of $2,104,012 at October 31, 2020 and $2,037,708 at April 30, 2020

3,361,577

3,323,801

Total assets

$

4,323,668

$

3,943,892

Liabilities and Shareholders' Equity

Current liabilities

Lines of credit

$

-

$

120,000

Current maturities of long-term debt and finance lease obligations

2,297

570,280

Accounts payable

323,662

184,800

Accrued expenses

229,311

188,348

Income taxes payable

6,739

-

Total current liabilities

562,009

1,063,428

Long-term debt and finance lease obligations, net of current maturities

1,361,925

714,502

Deferred income taxes

451,205

435,598

Deferred compensation

14,365

13,604

Insurance accruals, net of current portion

20,924

22,862

Other long-term liabilities

53,389

50,693

Total liabilities

2,463,817

2,300,687

Total shareholders' equity

1,859,851

1,643,205

Total liabilities and shareholders' equity

$

4,323,668

$

3,943,892

Casey's General Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

October 31, April 30, 2020 2020

Assets

Current assets

Cash and cash equivalents $ 404,685 $ 78,275

Receivables 56,109 48,500

Inventories 249,842 236,007

Prepaid expenses 18,182 9,801

Income taxes receivable - 14,667

Total current assets 728,818 387,250

Other assets, net of amortization 72,198 71,766

Goodwill 161,075 161,075

Property and equipment, net of accumulateddepreciation of $2,104,012 at October 31, 2020 and 3,361,577 3,323,801$2,037,708 at April 30, 2020

Total assets $ 4,323,668 $ 3,943,892

Liabilities and Shareholders' Equity

Current liabilities

Lines of credit $ - $ 120,000

Current maturities of long-term debt and finance 2,297 570,280lease obligations

Accounts payable 323,662 184,800

Accrued expenses 229,311 188,348

Income taxes payable 6,739 -

Total current liabilities 562,009 1,063,428

Long-term debt and finance lease obligations, net of 1,361,925 714,502current maturities

Deferred income taxes 451,205 435,598

Deferred compensation 14,365 13,604

Insurance accruals, net of current portion 20,924 22,862

Other long-term liabilities 53,389 50,693

Total liabilities 2,463,817 2,300,687

Total shareholders' equity 1,859,851 1,643,205

Total liabilities and shareholders' equity $ 4,323,668 $ 3,943,892

Casey's General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

Six months ended October 31,

2020

2019

Cash flows from operating activities:

Net income

$

232,575

$

167,796

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

130,114

122,696

Share-based compensation

14,492

9,922

Loss on disposal of assets and impairment charges

2,159

1,257

Deferred income taxes

15,607

31,483

Changes in assets and liabilities:

Receivables

(7,609

)

(6,919

)

Inventories

(13,835

)

1,912

Prepaid expenses

(8,381

)

(6,290

)

Accounts payable

125,719

(9,577

)

Accrued expenses

39,177

(8,706

)

Income taxes

22,924

9,475

Other, net

(985

)

(1,640

)

Net cash provided by operating activities

551,957

311,409

Cash flows from investing activities:

Purchase of property and equipment

(158,815

)

(242,173

)

Payments for acquisition of businesses, net of cash acquired

-

(6,191

)

Proceeds from sales of property and equipment

2,667

2,940

Net cash used in investing activities

(156,148

)

(245,424

)

Cash flows from financing activities:

Proceeds from long-term debt

650,000

-

Repayments of long-term debt

(570,738

)

(8,682

)

Net payments of short-term debt

(120,000

)

(50,000

)

Proceeds from exercise of stock options

1,253

2,307

Proceeds from capital grant

1,594

-

Payments of cash dividends

(23,591

)

(22,405

)

Tax withholdings on employee share-based awards

(7,917

)

(6,525

)

Net cash used in financing activities

(69,399

)

(85,305

)

Net increase (decrease) in cash and cash equivalents

326,410

(19,320

)

Cash and cash equivalents at beginning of the period

78,275

63,296

Cash and cash equivalents at end of the period

$

404,685

$

43,976

Casey's General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

Six months ended October 31,

2020 2019

Cash flows from operating activities:

Net income $ 232,575 $ 167,796

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 130,114 122,696

Share-based compensation 14,492 9,922

Loss on disposal of assets and impairment 2,159 1,257 charges

Deferred income taxes 15,607 31,483

Changes in assets and liabilities:

Receivables (7,609 ) (6,919 )

Inventories (13,835 ) 1,912

Prepaid expenses (8,381 ) (6,290 )

Accounts payable 125,719 (9,577 )

Accrued expenses 39,177 (8,706 )

Income taxes 22,924 9,475

Other, net (985 ) (1,640 )

Net cash provided by operating activities 551,957 311,409

Cash flows from investing activities:

Purchase of property and equipment (158,815 ) (242,173 )

Payments for acquisition of businesses, net of - (6,191 )cash acquired

Proceeds from sales of property and equipment 2,667 2,940

Net cash used in investing activities (156,148 ) (245,424 )

Cash flows from financing activities:

Proceeds from long-term debt 650,000 -

Repayments of long-term debt (570,738 ) (8,682 )

Net payments of short-term debt (120,000 ) (50,000 )

Proceeds from exercise of stock options 1,253 2,307

Proceeds from capital grant 1,594 -

Payments of cash dividends (23,591 ) (22,405 )

Tax withholdings on employee share-based awards (7,917 ) (6,525 )

Net cash used in financing activities (69,399 ) (85,305 )

Net increase (decrease) in cash and cash 326,410 (19,320 )equivalents

Cash and cash equivalents at beginning of the 78,275 63,296period

Cash and cash equivalents at end of the period $ 404,685 $ 43,976

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION

Six months ended October 31,

2020

2019

Cash paid during the period for:

Interest, net of amount capitalized

$

26,535

$

26,997

Income taxes, net

31,956

10,000

Noncash investing and financing activities:

Purchased property and equipment in accounts payable

18,471

17,067

Right-of-use assets obtained in exchange for new finance lease liabilities

-

831

Right-of-use assets obtained in exchange for new operating lease liabilities

1,109

-

Non-cash additions from adoption of ASC 842

-

22,635

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION

Six months ended October 31,

2020 2019

Cash paid during the period for:

Interest, net of amount capitalized $ 26,535 $ 26,997

Income taxes, net 31,956 10,000

Noncash investing and financing activities:

Purchased property and equipment in accounts payable 18,471 17,067

Right-of-use assets obtained in exchange for new finance - 831lease liabilities

Right-of-use assets obtained in exchange for new 1,109 -operating lease liabilities

Non-cash additions from adoption of ASC 842 - 22,635

Summary by Category (Amounts in thousands)

Three months ended 10/31/2020

Fuel

Grocery & OtherMerchandise

Prepared Food& Fountain

Other

Total

Revenue

$

1,193,491

$

718,226

$

288,822

$

15,366

$

2,215,905

Gross profit

$

204,154

$

238,992

$

173,661

$

14,953

$

631,760

17.1

%

33.3

%

60.1

%

97.3

%

28.5

%

Fuel gallons sold

577,581

Three months ended 10/31/2019

Revenue

$

1,514,474

$

660,562

$

297,846

$

14,704

$

2,487,586

Gross profit

$

140,798

$

220,134

$

181,452

$

14,681

$

557,065

9.3

%

33.3

%

60.9

%

99.8

%

22.4

%

Fuel gallons sold

614,071

Summary by Category (Amounts in thousands)

Three Grocery & Preparedmonths Fuel Other Food Other Totalended 10 Merchandise & Fountain/31/2020

Revenue $ 1,193,491 $ 718,226 $ 288,822 $ 15,366 $ 2,215,905

Gross $ 204,154 $ 238,992 $ 173,661 $ 14,953 $ 631,760 profit

17.1 % 33.3 % 60.1 % 97.3 % 28.5 %

Fuelgallons 577,581 sold

Threemonths ended 10/31/2019

Revenue $ 1,514,474 $ 660,562 $ 297,846 $ 14,704 $ 2,487,586

Gross $ 140,798 $ 220,134 $ 181,452 $ 14,681 $ 557,065 profit

9.3 % 33.3 % 60.9 % 99.8 % 22.4 %

Fuelgallons 614,071 sold

Summary by Category (Amounts in thousands)

Six months ended 10/31/2020

Fuel

Grocery & OtherMerchandise

Prepared Food& Fountain

Other

Total

Revenue

$

2,279,472

$

1,450,087

$

559,588

$

31,779

$

4,320,926

Gross profit

$

414,184

$

474,591

$

335,309

$

31,179

$

1,255,263

18.2

%

32.7

%

59.9

%

98.1

%

29.1

%

Fuel gallons sold

1,127,089

Six months ended 10/31/2019

Revenue

$

3,142,042

$

1,348,480

$

593,723

$

29,970

$

5,114,215

Gross profit

$

291,787

$

435,587

$

365,464

$

29,913

$

1,122,751

9.3

%

32.3

%

61.6

%

99.8

%

22.0

%

Fuel gallons sold

1,233,155

Summary by Category (Amounts in thousands)

Sixmonths Grocery & Preparedended Fuel Other Food Other Total10/31/ Merchandise & Fountain2020

Revenue $ 2,279,472 $ 1,450,087 $ 559,588 $ 31,779 $ 4,320,926

Gross $ 414,184 $ 474,591 $ 335,309 $ 31,179 $ 1,255,263 profit

18.2 % 32.7 % 59.9 % 98.1 % 29.1 %

Fuelgallons 1,127,089 sold

Sixmonthsended 10/31/2019

Revenue $ 3,142,042 $ 1,348,480 $ 593,723 $ 29,970 $ 5,114,215

Gross $ 291,787 $ 435,587 $ 365,464 $ 29,913 $ 1,122,751 profit

9.3 % 32.3 % 61.6 % 99.8 % 22.0 %

Fuelgallons 1,233,155 sold

Fuel Gallons

Fuel Margin

Same-store Sales

(Cents per gallon, excluding credit card fees)

Q1

Q2

Q3

Q4

Fiscal Year

Q1

Q2

Q3

Q4

Fiscal Year

F2021

(14.6)

%

(8.6)

%

-

-

-

F2021

38.2

?

35.3

?

-

-

-

F2020

(2.0)

(1.8)

(2.0)

(14.7)

(5.1)

%

F2020

24.4

22.9

21.7

40.8

26.8

?

F2019

0.5

(1.1)

(3.4)

(2.8)

(1.7)

F2019

20.5

20.0

22.1

18.6

20.3

Fuel Gallons Fuel Margin

Same-store Sales (Cents per gallon, excluding credit card fees)

Q1 Q2 Q3 Q4 Fiscal Q1 Q2 Q3 Q4 Fiscal Year Year

F2021 (14.6) % (8.6) % - - - F2021 38.2 ? 35.3 ? - - -

F2020 (2.0) (1.8) (2.0) (14.7) (5.1) % F2020 24.4 22.9 21.7 40.8 26.8 ?

F2019 0.5 (1.1) (3.4) (2.8) (1.7) F2019 20.5 20.0 22.1 18.6 20.3

Grocery & Other Merchandise

Grocery & Other Merchandise

Same-store Sales

Margin

Q1

Q2

Q3

Q4

Fiscal Year

Q1

Q2

Q3

Q4

Fiscal Year

F2021

3.6

%

6.6

%

-

-

-

F2021

32.2

%

33.3

%

-

-

-

F2020

3.2

3.2

3.5

(2.0)

1.9

%

F2020

31.3

33.3

32.9

30.4

32.0

%

F2019

3.2

2.7

3.4

5.7

3.6

F2019

32.4

32.4

31.9

31.5

32.1

Grocery & Other Merchandise Grocery & Other Merchandise

Same-store Sales Margin

Q1 Q2 Q3 Q4 Fiscal Q1 Q2 Q3 Q4 Fiscal Year Year

F2021 3.6 % 6.6 % - - - F2021 32.2 % 33.3 % - - -

F2020 3.2 3.2 3.5 (2.0) 1.9 % F2020 31.3 33.3 32.9 30.4 32.0 %

F2019 3.2 2.7 3.4 5.7 3.6 F2019 32.4 32.4 31.9 31.5 32.1

Prepared Food & Fountain

Prepared Food & Fountain

Same-store Sales

Margin

Q1

Q2

Q3

Q4

Fiscal Year

Q1

Q2

Q3

Q4

Fiscal Year

F2021

(9.8)

%

(3.6)

%

-

-

-

F2021

59.7

%

60.1

%

-

-

-

F2020

1.6

1.9

2.8

(13.5)

(1.5)

%

F2020

62.2

60.9

60.2

60.0

60.9

%

F2019

1.7

2.2

1.5

2.0

1.9

F2019

62.0

62.4

62.3

62.2

62.2

RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA

We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets as well as impairment charges. Neither EBITDA nor Adjusted EBITDA are considered GAAP measures, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. These measures have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and they are regularly used by management for internal purposes including our capital budgeting process, evaluating acquisition targets, and assessing performance.

Because non-GAAP financial measures are not standardized, EBITDA and Adjusted EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of these non-GAAP financial measures with those used by other companies.

The following table contains a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended October 31, 2020 and 2019:

Prepared Food & Fountain Prepared Food & Fountain

Same-store Sales Margin

Q1 Q2 Q3 Q4 Fiscal Q1 Q2 Q3 Q4 Fiscal Year Year

F2021 (9.8) % (3.6) % - - - F2021 59.7 % 60.1 % - - -

F2020 1.6 1.9 2.8 (13.5) (1.5) % F2020 62.2 60.9 60.2 60.0 60.9 %

F2019 1.7 2.2 1.5 2.0 1.9 F2019 62.0 62.4 62.3 62.2 62.2

RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA

We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets as well as impairment charges. Neither EBITDA nor Adjusted EBITDA are considered GAAP measures, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. These measures have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities, and they are regularly used by management for internal purposes including our capital budgeting process, evaluating acquisition targets, and assessing performance.

Because non-GAAP financial measures are not standardized, EBITDA and Adjusted EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of these non-GAAP financial measures with those used by other companies.

The following table contains a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended October 31, 2020 and 2019:

(In thousands) Three Months Ended Six Months Ended October 31, October 31,

2020 2019 2020 2019

Net income $ 111,983 $ 81,981 $ 232,575 $ 167,796

Interest, net 10,634 12,683 24,041 26,404

Depreciation and amortization 64,294 62,888 130,114 122,696

Federal and state income taxes 34,501 26,130 72,097 52,631

EBITDA $ 221,412 $ 183,682 $ 458,827 $ 369,527

Loss on disposal of assets and 1,819 730 2,159 1,257impairment charges

Adjusted EBITDA $ 223,231 $ 184,412 $ 460,986 $ 370,784

NOTES:

* Gross Profit is defined as revenue less cost of goods sold (exclusive of depreciation and amortization) * Inside is defined as the combination of Grocery and Other Merchandise and Prepared Food and Fountain

This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to the acquisition, expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, performance at our stores, and the potential effect of COVID-19. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any future results expressed or implied by those forward-looking statements, including but not limited to integration of the acquisition, executing our strategic plan, the impact and duration of COVID-19 and related governmental actions, as well as other risks, uncertainties and factors which are described in the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey's disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise.

Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on December 8, 2020. The call will be broadcast live over the Internet at 7:30 a.m. CST. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx. No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at https://investor.caseys.com/events-and-presentations/default.aspx for one year after the call.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201207005906/en/

CONTACT: Investor Relations Contact: Brian Johnson (515) 965-6587

CONTACT: Media Relations Contact: Katie Petru (515) 446-6772