There will be new opportunities to increase gross profit as we add more stores. Our fiscal 2006 goal was to build 10 new stores and acquire 30 stores in addition to the 49 Gas ‘N Shop sites we purchased in January.
By April 30, we had built 15 stores and acquired an additional 18.
The Gas ‘N Shop acquisition was our first experience in purchasing and integrating a large chain into Casey’s systems. We see additional acquisition possibilities to choose from in fiscal 2007. The pipeline is full, and our acquisition team is hard at work.
It has been my privilege to guide Casey’s senior management through the transformation that made the past year’s achievements possible, and, as Chairman, I will continue to be actively involved in setting the strategic direction of the Company. The Chief Executive Officer’s duties will be ably fulfilled by my successor Bob Myers, who was elected to the position effective June 21, 2006.
The Board of Directors also approved four more significant promotions:
Terry Handley to Chief Operating Officer, Bill Walljasper to Senior Vice President–CFO, Sam Billmeyer to Senior Vice President–Transportation
and Support Operations, and Bob Ford to Vice President–Store Operations.
The entire management team is committed to meeting Casey’s fiscal 2007 performance goals:
- Increase same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon.
- Increase same-store grocery & other merchandise sales 3.9% with an average margin of 32.2%.
- Increase same-store prepared food & fountain sales 7.9% with an average margin of 63.4%.
- Hold the percentage increase in operating expenses to less than the percentage increase in gross profit.
- Acquire 50 stores and build 10 new stores.
Making public a set of goals that requires us to outperform the record results of fiscal 2006 is our boldest Mark of Distinction.
Ronald M. Lamb
Chariman of the Board
