<SEC-DOCUMENT>0000726958-18-000167.txt : 20181211
<SEC-HEADER>0000726958-18-000167.hdr.sgml : 20181211
<ACCEPTANCE-DATETIME>20181211151012
ACCESSION NUMBER:		0000726958-18-000167
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20181211
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20181211
DATE AS OF CHANGE:		20181211

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CASEYS GENERAL STORES INC
		CENTRAL INDEX KEY:			0000726958
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
		IRS NUMBER:				420935283
		STATE OF INCORPORATION:			IA
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34700
		FILM NUMBER:		181228616

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 3001
		CITY:			ANKENY
		STATE:			IA
		ZIP:			50021
		BUSINESS PHONE:		515-965-6100

	MAIL ADDRESS:	
		STREET 1:		PO BOX 3001
		CITY:			ANKENY
		STATE:			IA
		ZIP:			50021
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a8-kq219transcript.htm
<DESCRIPTION>8-K
<TEXT>
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<div><a name="sD40385CEDD4CFC761A02CA1C0D9A3037"></a></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">UNITED STATES</font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">Washington, D.C.  20549</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">FORM 8-K</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">CURRENT REPORT Pursuant</font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">to Section 13 or 15(d) of the</font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">Securities Exchange Act of 1934</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">Date of Report (Date of earliest event reported):  December 11, 2018</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">CASEY'S GENERAL STORES, INC.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(Exact name of registrant as specified in its charter)</font></div><div style="line-height:120%;text-align:left;text-indent:240px;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">Iowa</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(State or other jurisdiction of incorporation)</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:92.1875%;border-collapse:collapse;text-align:left;"><tr><td colspan="3"></td></tr><tr><td style="width:52%;"></td><td style="width:1%;"></td><td style="width:47%;"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">001-34700</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">42-0935283</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(Commission File Number)</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">&#160;</font><font style="font-family:inherit;font-size:10pt;">(IRS Employer Identification No.) </font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">One SE Convenience Blvd., Ankeny, Iowa</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">50021</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;&#160;&#160;(Address of principal executive Offices)</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(Zip Code)</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">515/965-6100</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(Registrant's telephone number, including area code)</font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;font-weight:bold;">NONE</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(Former name or former address, if changed since last report)</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (</font><font style="font-family:inherit;font-size:10.5pt;font-style:italic;">see</font><font style="font-family:inherit;font-size:10.5pt;">&#32;General Instruction A.2. below):</font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10.5pt;padding-left:48px;"><font style="font-family:inherit;font-size:10.5pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10.5pt;padding-left:48px;"><font style="font-family:inherit;font-size:10.5pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10.5pt;padding-left:48px;"><font style="font-family:inherit;font-size:10.5pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CF 240.14d-2(b))</font></div></td></tr></table><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10.5pt;padding-left:48px;"><font style="font-family:inherit;font-size:10.5pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:72px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).</font><font style="font-family:Wingdings;font-size:10.5pt;">&#168;</font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act   </font><font style="font-family:Wingdings;font-size:10.5pt;">&#168;</font></div><div><br></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><div><a name="sDA0B27F8BDBC2552C1D7CA1C0DCE2756"></a></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:left;-sec-extract:summary;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">Item 2.02.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:13pt;text-decoration:underline;">Results of Operations and Financial Condition</font><font style="font-family:inherit;font-size:13pt;">.</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">On December 11, 2018, Casey's General Stores, Inc. (the "Company") conducted a conference call with investors concerning its financial results for the fiscal quarter ended October 31, 2018.  A copy of the transcript prepared by the host of the conference call is attached as Exhibit 99.1 and is incorporated herein by reference.</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">Item 9.01.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:13pt;text-decoration:underline;">Financial Statements and Exhibits</font><font style="font-family:inherit;font-size:13pt;">.</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">(d)&#160;&#160;&#160;&#160;Exhibits.</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"></font><font style="font-family:inherit;font-size:13pt;text-decoration:underline;">Exhibit No.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:13pt;text-decoration:underline;">Description</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:96px;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:83.984375%;border-collapse:collapse;text-align:left;"><tr><td colspan="2"></td></tr><tr><td style="width:19%;"></td><td style="width:81%;"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:9px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:9px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">99.1</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="font-size:13pt;"><a style="text-decoration:underline;color:#0000FF;-sec-extract:exhibit;" href="a121118caseys.htm"><font style="font-family:inherit;font-size:13pt;">Transcript of conference call conducted by Casey's General Stores, Inc. on December 11, 2018</font></a></div><div style="font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div></td></tr></table></div></div><div style="line-height:144%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div><br></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:144%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">SIGNATURE</font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.</font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:13pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:77.734375%;border-collapse:collapse;text-align:left;"><tr><td colspan="3"></td></tr><tr><td style="width:40%;"></td><td style="width:8%;"></td><td style="width:52%;"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">CASEY'S GENERAL STORES, INC.</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">Date: December 11, 2018</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:right;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">By:</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">/s/ William J. Walljasper</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">William J. Walljasper</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">Senior Vice President and</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:13pt;"><font style="font-family:inherit;font-size:13pt;">Chief Financial Officer</font></div></td></tr></table></div></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div><br></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div>	</body>
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<DESCRIPTION>EXHIBIT 99.1
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<div><a name="s27FBA49D549DFBB9EFE29ED74F9C87F7"></a></div><div></div><div><br></div><div style="line-height:120%;font-size:12pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="1"></td></tr><tr><td style="width:100%;"></td></tr><tr><td style="vertical-align:top;border-bottom:1px solid #00000a;background-color:#e6e6e6;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #00000a;border-right:1px solid #00000a;border-top:1px solid #00000a;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Casey's General Stores (Q2 FY 2019 Earnings)</font></div><div style="font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#160;&#160;&#160;</font></div><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">December 11, 2018</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Corporate Speakers:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Bill Walljasper; Casey's General Stores, Inc.; SVP &amp; CFO</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Terry Handley; Casey's General Stores, Inc.; President, CEO &amp; Director</font></div></td></tr></table><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Participants:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Christopher Mandeville; Jefferies LLC; Analyst</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">David Lantz; BMO Capital Markets Corp; Analyst</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Karen Short; Barclays Bank PLC; Analyst</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Bonnie Herzog; Wells Fargo Securities, LLC; Analyst </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Paul Trussell; Deutsche Bank AG; Analyst</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Ben Bienvenu; Stephens Inc.; Analyst</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Damian Witkowski; G. Research, LLC; Analyst</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Irene Nattel; RBC Capital Markets, LLC; Analyst </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Chuck Cerankosky; Northcoast Research Partners, LLC; Analyst</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Anthony Lebiedzinski; Sidoti &amp; Company, LLC; Analyst</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:24px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Ben Brownlow; Raymond James &amp; Associates, Inc.; Analyst</font></div></td></tr></table><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="1"></td></tr><tr><td style="width:100%;"></td></tr><tr><td style="vertical-align:top;border-bottom:1px solid #00000a;background-color:#e6e6e6;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #00000a;border-right:1px solid #00000a;border-top:1px solid #00000a;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">PRESENTATION</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Good day, ladies and gentlemen, and welcome to Casey's General Stores Second Quarter Fiscal Year 2019 Earnings Conference Call. (Operator Instructions)</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">I will now like to turn the conference over to Bill Walljasper, Chief Financial Officer. You may begin.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Good morning, and thank you for joining us to discuss Casey's results for the quarter ended October 31st. I'm Bill Walljasper, Chief Financial Officer. Terry Handley, President and Chief Executive Officer, is also here.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Before we begin, I will remind you that certain statements made by us during this investor call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include any statements related to our possible or assumed future results of operations, business strategies, growth opportunities and performance improvements at our stores. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">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 our ability to execute on the value creation plan or to realize benefits from that value creation plan as well as other risks, uncertainties and factors, which are described in our most recent annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the SEC and available on our website. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Any forward-looking statements made during this call reflect our current views as of today with respect to future events, and Casey's disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This morning, Terry will first take a few minutes to summarize the results of the second quarter and then provide an update on the progress with our value creation plan. We will then open for questions about our results.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">I'd now like to turn the call over to Terry.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Terry Handley:</font><font style="font-family:inherit;font-size:12pt;">&#32;Thank you, Bill, and good morning, everyone. As most of you have seen in the press release, diluted earnings per share for the [first] quarter were up over 40% to $1.80 compared to $1.28 a year ago. The results were primarily driven by increased control on operating expenses, margin gains, both at the pump and inside the store as well as operating 94 additional stores from the second quarter last year.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We are on schedule with the execution of our value creation plan and very pleased with the continued progress, as I will share later in this commentary. I would now like to summarize our results and some of the details in each of these categories.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In the fuel category, we continued to build out our retail fuels team in preparation for the launch of the formal price optimization program, following the conclusion of the current 100-store pilot already underway. The fuels team is working closely with store operations to assume a proactive and balanced approach to our retail fuel pricing strategy. We achieved an average margin of $0.20 per gallon for the quarter and drove a 7.2% increase in gross profit dollars from the fuel category.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Same-store gallons sold in the quarter were down 1.1% due to our optimization efforts in the category as well as softer demand. The average retail price of fuel during the quarter was up $0.40 to $2.73 per gallon from the previous year.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We believe the higher retail price environment during the quarter and over the past six</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">months is contributing to the downward trend of vehicle miles traveled during the period. Vehicle miles traveled were down approximately .06 of 1% in September, with preliminary estimates for October being down over 1%. Despite that decline in same-store gallons, total gallons sold for the quarter were up 5.7% to nearly $594 million, primarily due to a strong contribution from recent new stores, acquisitions and replacements. Same-store gallons sold year-to-date were down .03 of 1%, with an average margin of 20.3 cents per gallon, resulting in an increase in fuel gross profit dollars over 10% to $242.1 million.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">As noted in the press release, we have lowered our guidance for same-store gallons sold due to our continued efforts to optimize gross profit dollars and potentially softer demand through the back half of the fiscal year.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We still expect the launch of the fleet card to have the sale of impact as we anticipated when we started the program. At the same time, we also increased our fuel margin guidance due to the efforts we discussed previously. As a result, we have increased our internal expectations for gross profit dollars in the back half of the year in the fuel category. Same-store gallons sold in November are within the current annual range. The average fuel margin in November is trending significantly above our current annual range.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In the grocery and other merchandise category, total sales were up nearly 8.1% to $618.3 million in the second quarter. Same-store sales were up 2.7% during the same period with an average margin of 32.4%, up 40 basis points from a year ago in the same period.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The margin increase was due partly to a product mix shift towards higher-margin items across the grocery and other merchandise category as well as promotion optimization.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">As a result of the favorable product mix, increased sales and promotion optimization, the gross profit dollars for the quarter in the category were up 9.3% to $200.2 million. Same-store sales in November are trending within our current annual guidance.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In the prepared food and fountain category, total sales were up 8% to over $283 million for the second quarter. Same-store sales were up 2.2%. The average margin for the quarter was 62.4%, up 110 basis points from the second quarter of last year, primarily due to strategic price increases, product mix shift and favorable commodity prices.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">As a result of the increased sales and margin expansion in the quarter, prepared food gross profit dollars were up over 10% to $176.7 million. Same-store sales thus far in the quarter are trending at the lower end of our current annual guidance.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We are encouraged by the results from continued efforts to control operating expenses. For the quarter, total operating expenses increased 6.6% to $344.2 million. The increase in operating expense is mainly driven by operating 94 more stores this quarter compared to a year ago.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Same-store operating expenses, excluding credit card fees, were down .01 of 1%. These results were driven by a decrease of 4.4% in same-store labor hours. We will continue to emphasize opportunities for process improvement to better manage operating expenses.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">I would now like to turn the call over to Bill to discuss the financial statement.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Thanks, Jerry. On the income statement, total revenue in the quarter was up 17.8% to $2.5 billion, primarily due to rising retail fuel prices and an increase in the number of stores in operation this quarter compared to the same period a year ago. Depreciation in the quarter was up 13.3%, primarily due to capital expenditures for growth over the past 12 months. The effective tax rate for the quarter was 26.5%, down from a year ago due to federal tax reform. We continue to expect our effective tax rate for fiscal 2019 to be between 24% and 25%.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Our balance sheet continues to be strong. At October 31st, cash and cash equivalents were $51.9 million. Long-term debt, net of current maturities, was $1.3 billion. Our trailing 12-month debt-to-EBITDA ratio dropped to 2.5 times, as the recent new store openings and previously mentioned operational improvements at our existing stores contribute to growth in EBITDA.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">At the six-month mark, we generated $304.3 million in cash flow from operations, with capital expenditures at $201 million compared to $271.6 million a year ago in the same period. Adjusted EBITDA grew nearly 15% in the quarter and is up 9.4% year-to-date. We expect capital expenditures to increase in subsequent quarters as new store construction continues. Our capital expenditure estimate remains at $466 million for fiscal 2019.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">I would now like to turn the call back over to Terry to update you on our unit growth and the progress with our value creation plan.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Terry Handley:</font><font style="font-family:inherit;font-size:12pt;">&#32;Thank you, Bill. Our store growth target this fiscal year is to build 60 stores and acquire at least 20 additional stores. At the six-month mark, we had opened 25 new stores, acquired three stores and have 23 additional stores under agreement to purchase. Currently, we have 36 stores under construction with an additional 95 sites in our land bank. We are on track to achieve our unit growth target and believe we are positioned well for future growth.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">I would now like to provide an update regarding the value creation plan. As a reminder, the multiyear long-term plan is comprised of several key programs and value drivers, including a new fleet card program; retail price optimization; and digital engagement transformation, as well as continued focus on controlling operating expenses and capital allocation. We are confident these key areas of focus will drive accelerated growth and profitability and deliver increased returns for shareholders.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We have completed several key milestones over the course of the last quarter. I will begin with the new fleet card program. We launched the new program in late October. Although still early in the process, the preliminary results show that we are on target with over 300 new accounts and 3,000 cardholders. We expect to begin to see the benefits from this program in Q3 of fiscal 2019.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In addition to the fleet card program, we are busy executing on our fuel product optimization plan. Year-to-date, we have converted 592 stores to biodiesel and 144 stores to premium or diesel.</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">By the end of Q3, we plan to add premium or diesel to 172 additional stores. Diesel, biodiesel and premium fuel all carry a higher margin than other fuel products. We believe these will have a positive impact to our overall fuel margin going forward.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Price optimization is another key program in our value creation plan. This will allow us to leverage the sales data generated by our broad network of stores combined with market data to make centralized, rules-based decisions at the pump and in the store, which we anticipate will improve sales and margins across all categories throughout our network.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We currently have an ongoing price optimization pilot in the fuel category utilizing PriceAdvantage. Upon completion, we will begin a phased rollout of this program to all stores with the completion scheduled by the end of this fiscal year.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Dunnhumby is the platform we will utilize for price optimization inside the store. We have recently hired a retail pricing and analytics manager and will continue to build out that team. In Q3, we will begin a test-and-learn phase to help identify and finalize the categories that will be used for the pilot, which is currently scheduled to begin in the fourth quarter. The broader rollout of price optimization inside the store will most likely occur in Q1 of next fiscal year, however the timing will depend on the outcome of the pilot.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This program represents a fundamental shift in our marketing process for both fuel and in-store purchases, supported by an increased visibility into our pricing and promotion strategy. We are confident in these programs and the benefit it will bring to the Company.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We continue to progress with our digital engagement program and have reached several key milestones over this last quarter. Since our last call, we have hired a Vice President of Digital Customer Experience, we have hired a Director of Digital Marketing, and we have gone live with our Salesforce marketing cloud, enabling us to increase our addressable customer base over 400% to 2.2 million.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We have already begun an automated marketing campaign to customers. And during the next two quarters, we will also pilot and roll out a new digital ordering platform. In the first quarter of next fiscal year, we plan to launch our new mobile app, which is planned to coincide with the pilot and subsequent rollout of the Casey's loyalty program. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Upon integration of the digital engagement program, include a new e-commerce platform, we intend to create a seamless customer experience both online and in-store that enhances our digital capabilities and facilitates personalized marketing and rewards. This will involve an enhanced website, a redesigned mobile app, a loyalty program, in-store technology and enhanced enterprise infrastructure. This digital platform will allow us to gain a better understanding of our consumers and better serve them by providing value and target-effective promotions that will drive additional customer visits.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In anticipation of the increased sales volume generated by the value creation plan and new store growth, we undertook a process of evaluating our distribution system to identify long-term optimization opportunities with a focus on costs and efficiency. We have completed this comprehensive review of distribution alternatives in this past quarter. We believe our business model of serving small rural communities and suburbs is a strategic advantage. This evaluation enabled us to confirm our self-distribution model to better serve those locations. Our role as both wholesaler and distributor has a financial advantage that cannot be replicated with the move to a third-party distributor. We remain confident that self distribution as our core supply chain strategy creates the optimal level of efficiency to increase shareholder value.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Another element of our value creation plan is a disciplined approach to capital allocation and increasing shareholder value through dividends and share repurchases. Our capital allocation strategy will continue to prioritize investments with attractive return profiles, including our value creation programs as well as disciplined store growth through new store construction and strategic acquisition opportunities.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">In closing, we continue to take transformational steps to enhance store performance and deliver long-term profitable growth. We will continue to review and add skill sets to successfully execute on our strategy to drive significant long-term shareholder value.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We will now take your questions.</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="1"></td></tr><tr><td style="width:100%;"></td></tr><tr><td style="vertical-align:top;border-bottom:1px solid #00000a;background-color:#e6e6e6;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #00000a;border-right:1px solid #00000a;border-top:1px solid #00000a;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">QUESTIONS AND ANSWERS</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;(Operator Instructions) Christopher Mandeville, Jefferies.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Christopher Mandeville:</font><font style="font-family:inherit;font-size:12pt;">&#32;Bill, just starting on the OpEx growth for the quarter, [itself], 6.6%, really impressive results. I wonder if you could just dig into that a little bit further. I appreciate the decline of 4.4% on a same-store sales basis for labor hours, but was there anything to the total number that would be classified as may be a one-off or simply related to timing? </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">And then, I suppose, since you didn't necessarily adjust your full year guidance of 8.5% to 10.5% for OpEx growth, can you help us think about the back half of the year? And any reason to believe or to think that OpEx growth will actually accelerate meaningfully beyond just the simple addition of new units?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;You're exactly right, 6.6 for the quarter is really combined, the majority of the real roughly about 4.5% to 5% of it has to do with new stores units coming online. The remaining part of that has to do with the same store. And the driver of that reduction was that 4.4% reduction in store labor hours. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Now keep in mind, part of that also, Chris, was the changes that we undertook back in the fourth quarter with respect to 24-hour reductions and pizza delivery reductions. So if you actually exclude those out at 4.4% same-store hours excluding those 24-hour pizza delivery, we're at about 2.8%. So to answer the second part of your question there, so we'll be cycling over that in the fourth quarter. And so that benefit that we're seeing on the operating expense side because of that, again, we'll cycle over in Q4. So we do anticipate coming up from the 6.6% in relation to that. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Outside of any onetime events, there are really no other onetime events that ran through there. Insurance within operating expenses for the quarter were, I would say, normalized. You might recall, we called that are out in Q1 as somewhat of an anomaly. So that was back to a more normalized basis. Again, that can ebb and flow. That's a little bit harder to predict as we move forward. But that's some highlights for operating expenses.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Christopher Mandeville:</font><font style="font-family:inherit;font-size:12pt;">&#32;And, follow up to that would be just where credit card fees fell out in the quarter?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes, credit card fees from a dollar perspective were $37.3 million. They were up about mid-teens from a percentage. The actually moderated towards the back half of this particular quarter as retail fuel price started pulling back, roughly about mid-October. So that could be a factor. Yes, if retail fuel price continues to moderate, certainly, we will see some benefit in the moderation of that particular line item in the operating expense.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Christopher Mandeville:</font><font style="font-family:inherit;font-size:12pt;">&#32;Thinking about the in-store dynamics here, year-to-date, both in grocery and in the prep food margins, you're at the high end or above your actual guidance range. And with where cheese prices are standing today, it looks like about $1.65 per pound, how should we be thinking about the back half of the year and your ability to lock-in more favorable pricing? Anything that we should be mindful of in terms of anniversaries in-store as well?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Terry called out some commodity prices. Right now as you know, we're locked in on our cheese through the end of this month. Cheese pricing in the market right now is favorable. We're currently looking at opportunities to extend locks of our cheese. Have nothing to report at this point, but we'll continue to monitor that. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The other commodity prices are more favorable, more secondary in nature, but definitely were a contributor to the margin side of that. I will say, there is seasonality inside the store from our margins. So if you look back at Q3 and Q4, we typically had a lower margin in grocery and general merchandise and prepared foods because of that factor, which is one of the reasons why we didn't pull down the margin guidance in those two respective categories.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Christopher Mandeville:</font><font style="font-family:inherit;font-size:12pt;">&#32;With respect to fuel margins and how robust they were in the quarter and how they've even strengthened quarter-to-date. Have you seen anything in terms of, within-the-market competition becoming a little bit more aggressive on discounts of, say, $0.05 to $0.10 off type of promotion to drive traffic? Or has everyone largely been pretty rational?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I would say, the latter is probably correct there, Chris. It's a little more of a rational pricing environment. There continues to be pressure in the industry in typically get the fuel areas, where some of the small operators or other operators in general will offset the pressure. So we haven't seen any marked change in a response to some of the actions that we're taking at this point. But that's something we're going to continue to monitor going forward. And as Terry did mention, certainly, in November, the fuel margin certainly is, I would say, substantially above our current guidance.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Kelly Bania, BMO Capital Markets.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">David Lantz:</font><font style="font-family:inherit;font-size:12pt;">&#32;This is David Lanz on for Kelly Bania. So with another quarter of really solid fuel margins, I was wondering if you guys could give a little bit more color on some of the trade-off between fuel margins and gallon comps? And maybe if you could explain a little bit on some of the fuel margin initiatives you've talked about in the past in how they play into that relationship?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I think this is a dynamic that sometimes get lost when we look at the fuel category. And so as you know, from the press release, we did reduce our same-store gallon guidance, but we did increase our margin guidance. And so I think what you're asking is this, for us to gain $0.01 in full margin, we actually could give up roughly 4% to 5% in same-store fuel volume to breakeven. So right now, we're undergoing through this pilot program that Terry mentioned trying to find that optimal balance. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">One thing I would point out is even though we've had a little bit softer same-store gallon movement here in this quarter, and really quite honestly, in Q1 relative to maybe some previous quarters back in fiscal '18, inside same-store traffic continues to be roughly the same. So we are monitoring that, and we certainly don't want any degradation inside of our stores. And certainly, we haven't seen any significant pullback in same-store movement in that regard. So that's what we're trying to achieve in the fuel category. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">David Lantz:</font><font style="font-family:inherit;font-size:12pt;">&#32;On the conversion of stores to biodiesel, I think you said 592 so far and 144 to premium or diesel, with another 172 to come this quarter. Could you help us think about quantifying that benefit to margins? And how some of the stores are like specifically performing versus the stores that have not been converted?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Well, I may not be able to give you the specific information on a store-by-store basis, but coming into the fiscal year, this product optimization initiative, with respect to the comments that Terry mentioned, we anticipate the result of those in fiscal '19 driving roughly about 20 basis points of margin improvement.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Karen Short, Barclays.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Karen Short:</font><font style="font-family:inherit;font-size:12pt;">&#32;What is your inside traffic today running at?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Inside traffic is flat to slightly down. Just to clarify that, Karen, that excludes commission sales and excludes fuel sales. Overall same-store customer traffic is slightly up.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Karen Short:</font><font style="font-family:inherit;font-size:12pt;">&#32;I wanted to focus a little bit on fuel for a second. So any early read on the fleet card? You obviously gave us new accounts and cardholders, but any color on lift to the in-store comp with these users? And then on fuel, any read on the potential benefit to gas margins from the rollout of bio diesel and premium?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes. So the for part of that, we started the launch of the new fleet card program roughly October 20th. So obviously, the benefits would not be in the second quarter this fiscal year. As Terry mentioned, we should start seeing some of those benefits rolling into Q3 and beyond.</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">Coming into the fleet card program over a 12-month period, so basically, Q3 to Q3 of next year, we plan on that program lifting gallons roughly about 200 basis points. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Now keep in mind that if the underlying macro demand continues to be softer, that will be a harder one to see. It's worth to call that out as we move forward. I would tell you, and just to reiterate to Terry's comments, those 300-plus accounts that we have signed up and over 3,000 cardholders are certainly on track to what we expect to achieve that number I just mentioned.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Karen Short:</font><font style="font-family:inherit;font-size:12pt;">&#32;But what about the in-store lift is actually what I'm asking about? Because obviously, I think, you've given some metrics that typically that would result 2% to 3% in-store lift with competitors that don't offer prepared food, was I think the metric?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;There's nothing right now that would give us a pause that we're not going to see an inside lift as we get more traction in that program. But right now, only being in the program roughly a month, we can't really call out anything at this point. A little too early. But I would say this, Karen, expect us to have more commentary on that at the next conference call.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Karen Short:</font><font style="font-family:inherit;font-size:12pt;">&#32;Looking at fuel overall, maybe you're getting more metrics in terms of the customer that is coming to your store exclusively for in-store purchase versus the fuel, but the concern would be is it that you're managing fuel margins more than managing fuel comp. And in the past, you've relied pretty heavily on the conversion from the pump into the store. So my question is that, that seems to be less of a concern for you today than it has been in the past. So maybe can you give a little context on that? And then, bigger picture, can you really make the rest of your goals in terms of general merchandise comps and prepared food comps if you don't achieve your 4% fuel comp goal for 2021?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I think coming into the guidance that we gave for the value creation plan was one of those items that we weren't quite sure what product optimization would bring, whether that would bring more same-store movement or whether it would bring more margin enhancement. And so as we get further along in the piloting of both the fuel price optimization and optimization inside, we began to really realize that there's probably more opportunity on the margin side to drive gross profit dollars. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">So right now the key for us is to have the balance of managing the gross profit dollars within the fuel category not to [degregate] inside the store. And so that's what we're looking to over the next several quarters to find that right balance. The two will play off each other quite nicely, in our opinion.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Bonnie Herzog, Wells Fargo.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bonnie Herzog:</font><font style="font-family:inherit;font-size:12pt;">&#32;I had a question also on your lower fuel gallons in the quarter and the outlook. First, I think you mentioned much of the softness was due to your fuel optimization as well as some weak consumer demand. So just wanted to see if I could hear from you guys, what had the bigger impact on the lower fuel gallons? And then you mentioned you still expect your new fleet card program to have the same impact as the [four]. So I guess I'm just trying to understand how you reconcile this with maybe what you're seeing in terms of the lower consumer demand?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I'll try to pull all that together, Bonnie, and probably even a follow-up to Karen's earlier question. So when you look at the same-store gallon movement downward, one of the things that I do want to reiterate is the move that we made back in Q4 with the reduction of 24-hour stores [and] pizza delivery stores. And so when I fast-forward and look at the 1.1% decline in same-store gallons in Q2, roughly half of that has to do with the 24-hour reduction. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">And so the remaining piece of that is split relatively equally between the two dynamics you mentioned, both the price optimization and the softer demand. And taking that even a step further to your question and Karen's question on same-store sales cadence moving forward, roughly about 1.5% of the downward movement in grocery and other merchandise comp and prepared food comp has to do with those 24-hour pizza delivery movements that we made roughly almost six months ago. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">So the reason I bring that up is, so we get into Q4, we're going to cycle over that. And so, obviously, we're getting a benefit in operating expenses now for that. You will see a flip in operating expenses as well as the flip in the back half of the year with that rollover.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bonnie Herzog:</font><font style="font-family:inherit;font-size:12pt;">&#32;Curious to hear from you, have you seen any change in traffic consumer trends as gas prices have been coming down, recently?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;It's pretty early. That change, as you know, just happened in the latter part of October [and into] November. I would say, gallons per transaction, we're definitely seeing an upward movement towards the back half of November here. And so we'll continue to monitor that. So there definitely could be an upside potential with respect to same-store gallons as we head into the back half of the year.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bonnie Herzog:</font><font style="font-family:inherit;font-size:12pt;">&#32;On some recent regulations by our FDA on restricting [e-cig] flavors. I&#8217;d be curious to hear from you guys how you see this potentially impacting traffic and/or [basket] size in your stores as that gets implemented?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I think you're referring to [Juul&#8217;s] product and then also some potential commentary around menthol. But [Juul], I think, is the main question you're asking. So [Juul] has certainly been a category in our other tobacco product line that has gained quite a bit of traction over this fiscal year. I would say, overall, it's not a material amount when you roll that out with respect to an annual number. However it certainly is a piece of some of the gains that we've seen in the comp side of that. So as we move into this end of this year, we will update our guidance to reflect that. And we have updated some of the guidance with respect to some of the flavor profiles in Juul in the back of with our expectations. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">On the menthol side, that's one of those things that I think right now is not going to impact us in fiscal '19. As we look at our fiscal '20 operating plan, we'll incorporate any change that, that particular product might have in the next fiscal year. But that particular one may take quite a while, if at all, coming to fruition.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bonnie Herzog:</font><font style="font-family:inherit;font-size:12pt;">&#32;Maybe drill down in some of your key merchandising categories? You did call out that both packaged beverages and I believe tobacco performed quite well for you in the quarter. Any other color, specifically on what really performed well? </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes. On the packaged beverages side, when we look at energy drinks, (inaudible) and tea, all of these were up on a same-store sales basis, mid to high single digits in the quarter. Those two carry a significantly higher margin than category as a whole, which is to that commentary that Terry mentioned about product mix shift in margin, that's part of that. Juul would also be part of that product mix shift as well. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Just as commentary, excluding cigarettes, if you look at same-store sales, excluding cigarettes, we would have been up about 4.5% in the second quarter. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Paul Trussell, Deutsche Bank.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Paul Trussell:</font><font style="font-family:inherit;font-size:12pt;">&#32;I wanted to circle up on some of the comments you made, I think, in grocery around more favorable margins with product mix and promotion optimization helping you guys out. And also if you could touch on what you've seen from some of the strategic price increases you made earlier in the year in prepared foods and other areas?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes, on the grocery and general merchandise, the product mix shift we&#8217;re talking about really comes from two areas. One would be some of the product that we just mentioned, in the packaged beverage area, the sports drinks, energy drinks and the tea, certainly have seen a strong movement in those areas over the last quarter. Also the product called Juul in the other tobacco area of our business, certainly has gained some popularity over this last six months as well as the last three months. And so certainly, those two combined are probably the primary reasons that we talked about in the product mix shift. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">On the promotion optimization, these are things that were done ahead of the formal price optimization with dunnhumby inside the store for grocery and general merchandise. These are things that just looking at some of our promotional activity like the buy two get one free type promotions and seeing whether or not these really are driving any type of gross profit dollar movement. And so we're doing a little bit better job of managing those. And because of that, we are seeing less margin degradation from prior periods. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">As far as the strategic price increases, those are specifically to the prepared food category. We've taken two of those in this fiscal year, one we took in May. And the main piece was on pizza slices. That was the main one there. And then the one that we took in July was on doughnuts. We actually increased the size of our doughnuts, at the same time, we elevated the price to have a value proposition to our consumer. And so right now we haven't seen any type of elasticity with those price increases, but we'll continue to monitor that.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Paul Trussell:</font><font style="font-family:inherit;font-size:12pt;">&#32;And you obviously are rolling out the redesigned app and will roll out the loyalty program. Just curious if you can get a little bit more color on the loyalty program and what your expectations are once it&#8217;s fully rolled out?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Well, the digital transformation is certainly a key area for us when it comes to value creation plan and the future lifts in revenue, as you look into the back half of fiscal '20 and then in the fiscal '21. And so from a loyalty program, Paul, I'll take a step back, probably five, six years of roughly thereabouts, when we rolled out the fuel saver program in partnership with a local grocery store chain. We saw how that type of loyalty program resonated with our consumers, and felt like we could have a similar type of loyalty program inside the store in other products. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We currently do not have a loyalty program, and we feel very excited about the opportunities that that will bring. And I would say, one of the unique areas that I think we have to offer from a loyalty program relative to some of our peers are the fact that we really have three main areas to play off of, we have the fuel category to play off of, we have grocery and general merchandise items and we have a prepared food offering, which is a little bit different when it comes to maybe a fast food chain or a fast casual chain that just relies on one dynamic, that being their food program. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">So we're excited about that. We want to make sure we get it right. And that's why we're taking time in the pilot in the back of this year to be prepared for fiscal rollout in Q1.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Ben Bienvenu, Stephens.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Ben Bienvenu:</font><font style="font-family:inherit;font-size:12pt;">&#32;I wanted to ask a follow-up question about cheese costs. So in the event that you are successful in locking cheese at a more advantageous price, would your inclination be to let that margin benefit flow through or put some of those margin dollars into promotion to drive comp? Maybe some color there on how you think tactically about deploying that margin benefit?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Certainly, it's a favorable cheese environment right now, even if we did not lock in and just went on a spot market is favorable for us. More likely than not, I would say this, traditionally we have let that flow through the margin. Now we do have a new Chief Marketing Officer and he may want to utilize some of that for his promotion activity in the back half. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">If we do that, certainty, we'll let everybody know that's the direction that we're heading. But as of right now, at least in this past quarter, we have not us any increased promotional activity from a competitive landscape. It's still competitive, like there's not been a dramatic change. So my hunch is , we will let that pass through the margin.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Ben Bienvenu:</font><font style="font-family:inherit;font-size:12pt;">&#32;And then another follow-up on bio diesel and premium. You gave us the number of stores that you've added those offerings to. What's the total opportunity across the store chain? And then just broadly, what are the counts in entirety across the store chain?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;So once we get through the third quarter with the numbers that Terry mentioned, right now on the biodiesel is really only for Iowa and Illinois. So we're pretty much where we're at that. We'll add a few stores periodically, but I don't think it will be meaningful going forward. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">With respect to the premium or diesel conversions, once we get through Q3, I think we'll be at a good position. And then from that point on, it will just be kind of on an as-needed basis as we get information from the field to make those decisions to pivot to a different product. Now new stores going forward will have those products. But I think we'll be in a good spot to stabilize that at the end of the third quarter.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Ben Bienvenu:</font><font style="font-family:inherit;font-size:12pt;">&#32;And then with respect to EMV, what dollar amount of your CapEx have you earmarked for that spend and upgrade? And then over what time frame do you expect to implement EMV at the pump (inaudible)?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;So EMV, I think will, that&#8217;s October of '20, if I remember correctly, is when that switch flips. And really it's not a mandate, as you know, Ben, it's just a liability assumption shifts. And so most of the EMV CapEx will be in fiscal '20 and beyond. Right now we're trying to make the determination whether or not all of our stores need to have that at the pump or whether we just select ones that we feel are probably more appropriate given the risk profile.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Damian Witkowski, G. Research.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Damian Witkowski:</font><font style="font-family:inherit;font-size:12pt;">&#32;Can you remind me, e-cigarettes as Juul, or whatever other brand, how big of a part of your inside store sales or cigarettes or tobacco sales overall is it these days?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Are you specifically asking about the Juul product?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Damian Witkowski:</font><font style="font-family:inherit;font-size:12pt;">&#32;No, just e-cigarettes products. I mean, how big overall of a percentage of your (inaudible) is it?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes. It would be a low single digit contributor to the overall category. So that's why [it] came back.</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">It's not a very low amount of this point, but gaining traction.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Damian Witkowski:</font><font style="font-family:inherit;font-size:12pt;">&#32;And then dunnhumby, how long have you been working with them?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;We just came under agreement with dunnhumby within its last six-month period. And so it's relatively new and so we're excited about that. They're one of the leaders in this particular area. So we're excited to partner with them and move forward with the testing and price optimization inside the store in the back half of the year.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Damian Witkowski:</font><font style="font-family:inherit;font-size:12pt;">&#32;Is there any exclusivity in the convenience store channel that comes along with that? </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Well, I'm not sure about exclusivity. Obviously, we've signed agreements, so we're partnered with them for this particular piece of the value creation plan.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Damian Witkowski:</font><font style="font-family:inherit;font-size:12pt;">&#32;On the fuel optimization, what do you think the response will be from your competition? You can draw up a scenario where it could be a positive thing, where they're looking to you as the market leader to do their own pricing.</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">As your pricing moves up in certain markets, do you think that they'll try to move their price along with you or do think that they&#8217;ll lower it and try to [steal] share?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I would say, for the most part, at some point in time, they'll make the adjustment upward. But keep in mind, the price optimization in the fuel category is sometimes moving price up, sometimes it's moving it down. And so the dynamic of how they'll react maybe a little different in a market-to-market area. But I would venture to guess that some point, they'll make that move upward. I would say, one of the advantages from a strategic perspective that we would have over some of the smaller operators, and keep in mind, about 2/3 of the operators of C-stores in our market area are operators of 10 stores or less, they would not have the sophistication of PriceAdvantage from an optimization standpoint. And that's where I think we have an advantage moving forward.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Irene Nattel, RBC Capital Markets.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Irene Nattel:</font><font style="font-family:inherit;font-size:12pt;">&#32;Looking at the performance, obviously, challenges from a macro perspective with [farm] income. Any differential in performance or what you're seeing in your more established market versus some of the newer markets that you're going into?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I would say, one of the callouts that I would bring is this, some of the newer markets that we are seeing, you probably noticed that the overall total volumes across the categories were certainly strong relative to the same stores that we reported. That's a function of the newer stores that are primary in the outer rim of our territory, if you will, have been performing from an economic perspective ahead of our expectations. That leads us to believe that our brand recognition is becoming stronger and stronger as we continue to penetrate some of those outer territories. And so that was very encouraging for us.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Irene Nattel:</font><font style="font-family:inherit;font-size:12pt;">&#32;And what kind of conversion are you seeing from [forecourt] to backcourt in some of those newer markets?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;It's a little bit hard for us to tell at this point and probably don't have a concrete, Irene, until we get the digital transformation up and running. And the reason I say that is, it's really challenging for us to identify a customer that clears a transaction at the pump with their credit card and then comes in and pays cash for an item. Right now we can connect those. But with the continued traction and roll out of the fleet card program and the rollout of the loyalty and digital program, we'll be in a much better position to answer that moving forward and play upon that particular dynamic.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Irene Nattel:</font><font style="font-family:inherit;font-size:12pt;">&#32;And, coming back to dunnhumby, one of the things dunnhumby does really, really well is around basket analytics and really classifying customers and enabling you to target more effectively, both within the context of the specific loyalty program but also without. Are you going to be doing all of that kind of work with dunnhumby as well?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Absolutely.</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">Yes, absolutely. At the end of the day, that's the information that we're looking to gain, so we can take the targeted marketing to customers to a new level and be able to really play upon customers' preferences and demands to drive incremental traffic.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Irene Nattel:</font><font style="font-family:inherit;font-size:12pt;">&#32;Within the other tobacco product category, excluding e-cigarettes, what are you seeing on the smokeless side?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I don't have a specific number right now. But certainly, it is gaining traction well above cigarettes as a whole. And so when you look at the other tobacco category, which is obviously the e-cigarette, your cigars as well as some of the other, like [shoe] for instance, all three of those are performing very well.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Chuck Cerankosky, Northcoast Research.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Chuck Cerankosky:</font><font style="font-family:inherit;font-size:12pt;">&#32;When you're using the gas price optimization program right now, in the stage, how sensitive or good are the controls? For instance, were you aiming for, say, a 0.5% decrease in comp gallons and got 1.1 in better margin or is it more sensitive to that? Can you give an idea of what you're able to aim for at this point?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;So that's part of that 100-store pilot that Terry addressed in the commentary. So that pilot is enabling us to get that very [varied] sensitivity. I can tell you right now, some of the things that we are seeing preliminarily from the result is, every quarter we&#8217;re going to have ups and downs with respect to margin. And so as we make more price adjustments, this last quarter relative to Q2 of last year, for instance, we are mitigating the valleys or the downward movements of the margin. And so we see that very clearly as we look at the pilot. But, to get to that the dynamics that you're talking about, that will be over the course of this particular program to identify what the targets for each particular store.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Chuck Cerankosky:</font><font style="font-family:inherit;font-size:12pt;">&#32;So are you extending this effort beyond the pilot stores so that you're trying to glean some relationships from it in 100 stores, but at this point, apply some of it to the remaining fleet?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes, the short answer is yes. So the 100-store pilot, we're certainly going to identify outliers there. We have that pilot in a number of different areas, or regionality's around our network to try to identify where the different opportunities might be to help us target that moving forward. So we'll continue to refine that over the next, probably, two or three months. And then as we talked about, start that rollout towards the back half of fiscal year.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Chuck Cerankosky:</font><font style="font-family:inherit;font-size:12pt;">&#32;And I would conclude, if the same thing you have your eye on how it's affecting in-store traffic?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes. Absolutely. That's a sensitivity for us. So busy, we don't have a degradation of volume inside the store. And so you probably have noticed, Chuck, if you go back and look at Q3, Q4 of last fiscal year, we had relatively robust same-store gallon movement. And you fast-forward to last two quarters, where we are actually a little bit softer than and you looked at the inside sales movement, and it's been pretty comparable. So we're not seeing necessarily anything that would give us pause at this point.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;(</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Instructions)</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">Anthony Lebiedzinski, Sidoti &amp; Company.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Anthony Lebiedzinski:</font><font style="font-family:inherit;font-size:12pt;">&#32;So as far as prepared foods, I just wanted to ask if you are planning to do any additional price increases?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Currently, we don't have any plan for the back half of the year. I think that decision will probably come about, if we see opportunities, but right now, there's nothing planned.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Anthony Lebiedzinski:</font><font style="font-family:inherit;font-size:12pt;">&#32;So you guys mentioned earlier that you have signed up, so far, 3,000 new fleet card holders. I was just wondering if you know or have the ability to know how many of these incremental new customers to Casey's?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes. So just to clarify, we have over 300 accounts, which represent over roughly 3,000 cardholders. And so to answer your question, we don't have the exact information on that.</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">However during the application process, we do ask for information as to whether or not they are our current customer of Casey's General Stores. So as you get further along with the rollout of this, we will roll up that detail and report on the other next earnings call. But, your point is well taken, we certainly to have some incremental -- most of it's going to be incremental. But we do expect some of the current customers transitioning over to this fleet card.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Anthony Lebiedzinski:</font><font style="font-family:inherit;font-size:12pt;">&#32;Okay, so you are capturing that data? Also was just wondering, in October, if there was any notable impact on traffic because of the big Powerball and Mega Millions jackpots to your stores? I know one of your stores actually sold the lucky ticket. So just wanted to ask about that as well?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;No, you're correct. Yes, we did have some pretty large jackpots. We actually called that out in the 10-Q there. And to answer your question is, yes, any time you see a jackpot that gets to that level, we&#8217;re going to have more foot traffic coming into the store. Many times though, they they're just there for one reason, that&#8217;s to buy those tickets. And so definitely did have foot traffic in there. And so if you look at the other category, you probably noticed that, that was up Q2 over Q2. And that&#8217;s related to the increased commission sales on lottery tickets.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Anthony Lebiedzinski:</font><font style="font-family:inherit;font-size:12pt;">&#32;And so as you guys continued to expand your store count. How you're able to find qualified store managers in the tight labor market that we are in right now?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;I&#8217;ve been here 29 years and spent some time in Human Resources and that's always been a challenge for us and no matter what the market conditions are is to find quality store managers, and then quality entry-level tech people at the stores. And it's always a challenge. We do have a much more robust training initiative to help that transition. We have a recruitment team now dedicated in that area as well. A lot of times, we look at inside our current stores that are close by, looking at the assistant manager pool as well, to try to do that. But we continue to move forward. And that will always be a focus for us.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Anthony Lebiedzinski:</font><font style="font-family:inherit;font-size:12pt;">&#32;How should we think about share buybacks? You did not purchase any shares in this just reported quarter. Do you expect to be active in the back half of fiscal '19?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;So you're correct, we did not purchase any shares in Q2.</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">In Q3, currently were not anticipating to have an additional share buyback, as we continue to roll out and gain traction. Several of the analysts noted that certainly free cash flow is moving upward. That's one of the areas of focus that we have. Also the 12-month rolling return on invested capital is rising as well. So these areas of focus and we like to continue that trajectory but we still have an authorization out there. And as a reminder, that was a two-year authorization.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Ben Brownlow, Raymond James.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Ben Brownlow: </font><font style="font-family:inherit;font-size:12pt;">You previously mentioned the health care plan and reevaluating their plan as we approach calendar year '19. Any anticipated benefits there or change to the program?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;Yes, our health care plan rolls on a calendar year. We are just rolling up the enrollment for the next calendar period. So once we get that up, we will certainly report on that in the next call. We did make some significant changes to the dynamics of the plan that, that could have some upside potential for us as we move into the back half of this year, primarily more for next fiscal year.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Ben Brownlow:</font><font style="font-family:inherit;font-size:12pt;">&#32;And just want to confirm one number. I think you said previously, the cut to labor hours was 4.4%. And excluding the 24-hour and delivery cuts, it was down 2.8%, is that correct?</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Bill Walljasper:</font><font style="font-family:inherit;font-size:12pt;">&#32;That's correct, yes.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator: </font><font style="font-family:inherit;font-size:12pt;">And that content does conclude our question-and-answer session today. </font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">I would like to turn the call back over to Mr. Terry Handley, CEO, for any closing remarks.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Terry Handley:</font><font style="font-family:inherit;font-size:12pt;">&#32;Thank you. I would like to thank everyone for joining us this morning, and would like to close the call by reiterating our key initiatives, our design to position Casey's for accelerated revenue growth and improved profitability through our long term value creation plan. This will be done through a disciplined capital allocation strategy that focuses on prioritizing high return growth and profitable initiatives. We strongly believe the combination of these actions will continue our long term track record of driving shareholder value. Thank you.</font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Operator:</font><font style="font-family:inherit;font-size:12pt;">&#32;Ladies and gentlemen, thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.</font></div><div><br></div><div></div>	</body>
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