Annual Report 2006 CASEY'S GENERAL STORES, INC.



We have no reason to assume the gasoline business will be more stable in fiscal 2007. We have good cause to think same-store sales will continue to grow, but the gasoline margin will again be subject to market influences. The gains we made in grocery & other merchandise are further evidence of how well we are using our growing powers of choice. In fiscal 2006, our lottery rollout increased store traffic as expected. We employed our sophisticated data analysis capabilities, improved inventory management, and enhanced distribution efficiencies to make sure that more customers in our established stores translated to a better bottom line for this business category. The result was a 5.7% increase in same-store sales with an average margin of 31.9%. Our goal was a 3% increase with an average margin of 31.5%. Prepared food & fountain again exceeded our high expectations. We forged past our goal of increasing same-store sales 5.5% with an average margin of 60.5% to achieve a 7.4% increase with a 63% margin. It was our third straight year of same-store sales gains in excess of 5% and margins above 60%.