The brutal winter and a fire are blamed for a dip in profits for Casey’s General Stores. Bill Walljasper, chief financial officer of the Ankeny-based company, spoke about Casey’s third-quarter performance on a conference call this morning. He said the convenience store chain recorded profits of $14.7 million, or 38 cents a share, for the three months ending Jan. 31, compared with $15.5 million, or 40 cents a share, from the same time a year ago.
“The earnings shortfall in the quarter from a year ago is a result of a challenging weather environment and an impairment charge related to a store destroyed by fire,” Walljasper said. The fire, which destroyed a store in Clarksville in early November, cost the company $700,000.
The company also spent $900,000 on utility bills and an increase in snow removal costs. Casey’s General Stores’ overall revenue, however, rose in the third quarter. “Total revenue in the quarter was up 7.7 percent to $1.8 billion due to an increase in the number of stores in operation this quarter, compared to the same period a year ago, and the competition of several operational initiatives,” Walljasper said.
Walljasper said operating expenses for the quarter rose roughly 13-percent, in part because the company is now operating 52 more stores compared to a year ago.