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Acquisitions | 12 Months Ended
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Apr. 30, 2023
Business Combinations [Abstract] |
Acquisitions | CQUISITIONS Current Period Acquisitions During the year ended April 30, 2023, the Company acquired 47 stores, of which 26 stores were acquired from Minit Mart LLC pursuant to the terms and conditions of an asset purchase agreement. The majority of these acquisitions meet the criteria to be considered business combinations. The purchase price of the stores was determined using a discounted cash flow model on a location by location basis. The acquisitions were recorded in the financial statements by allocating the purchase price to the assets acquired, including intangible assets, and liabilities assumed, based on their estimated fair values at the acquisition date as determined by internal estimates. Fair values were determined using Level 3 inputs (see Note 3). The excess of the cost of the acquisition over the net amounts assigned to the fair value of the assets acquired and the liabilities assumed is recorded as goodwill if the acquisition is considered to be a business combination. Goodwill of $2,408 was recognized as the result of the current year acquisitions and is primarily attributable to the location of the stores in relation to our footprint and expected synergies. All of the goodwill associated with these transactions will be deductible for income tax purposes over 15 years. Acquisition-related transaction costs are recognized as period costs as incurred. The aggregate purchase price for the acquisitions totaled $85,569, which was paid in cash upon closing using available cash on hand. Allocation of the purchase price for the transactions in aggregate for the year ended April 30, 2023, is as follows (in thousands):
Assets acquired: |
Inventories | $ | 3,976 |
Property and equipment | 79,556 |
Goodwill | 2,408 |
Total assets | 85,940 |
Total liabilities | 371 |
Net assets acquired and total purchase price | $ | 85,569 |
The Company recognized approximately $17,325 of revenue related to the acquired locations in the consolidated statements of income for the year ended April 30, 2023. The amount of net income related to the acquired locations was not material for the year ended April 30, 2023. Pro Forma Information The following unaudited pro forma information presents a summary of our consolidated results of operations as if the transactions referenced above occurred at the beginning of the first fiscal year of the periods presented (amounts in thousands, except per share data):
| For the year ended April 30,
| 2023 |  | 2022
Total revenue | $ | 15,438,809 |  |  | $ | 13,302,097 |
Net income | $ | 447,320 |  |  | $ | 341,235 |
Net income per common share |  |  |
Basic | $ | 12.00 |  |  | $ | 9.18 |
Diluted | $ | 11.92 |  |  | $ | 9.13 |
Prior Period Acquisitions Buchanan Energy On May 13, 2021, the Company closed on the acquisition of 100% of the equity interest in Buchanan Energy (and certain of its related subsidiaries and affiliated entities), owner of Bucky’s Convenience Stores. The transaction included 92 retail locations (consisting of 24 stores in Nebraska, 56 in Illinois, five in Iowa, three in Missouri, and four in Texas), a dealer network of 81 stores where Casey’s manages fuel wholesale supply agreements to these stores, as well as several parcels of land which may be used for new store construction. Three of the retail locations were divested shortly after closing as part of a consent order with the Federal Trade Commission. During the fourth quarter of the 2022 fiscal year, the Company sold four stores and one parcel of land in Texas for an aggregate sale price of $41,000, subject to customary post-closing adjustments. We did not record a material gain or loss related to the sale. The Company expects to achieve certain synergies over time, in part, through the reduction of duplicate processes, improvements in purchasing power, installing our kitchens, and expanding merchandise offerings. The aggregate purchase price for the acquisition totaled $571,842, which is net of a working capital adjustment of $5,400. Upon closing, $577,242 was paid in cash using available cash on hand, proceeds from a $300 million term loan and a draw on a revolving credit facility. The draw on the revolving credit facility was repaid during the first quarter of the 2022 fiscal year. The working capital adjustment was received during the fourth quarter of the 2022 fiscal year. The table below summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. We utilized a third-party valuation specialist to assist in valuing the contractual customer relationships, leases, and property and equipment acquired.
Assets acquired: |
Cash and cash equivalents | $ | 5,092 |
Receivables | 225 |
Inventories | 18,516 |
Prepaid expenses | 150 |
Property and equipment | 306,818 |
Contractual customer relationships | 31,100 |
Deferred income taxes | 1,343 |
Finance lease right-of-use assets | 9,421 |
Operating lease right-of-use assets | 11,236 |
Other assets | 1,774 |
Goodwill | 254,679 |
Total assets | 640,354 |
Liabilities assumed: |
Accounts payable | 30,212 |
Accrued expenses | 8,395 |
Finance lease liabilities | 11,101 |
Operating lease liabilities | 15,087 |
Other long-term liabilities | 3,717 |
Total liabilities | 68,512 |
Net assets acquired and total purchase price | $ | 571,842 |
The goodwill acquired was assigned to the retail reporting unit in the amount of $245,516 and the fuel wholesale reporting unit in the amount of $9,163. The goodwill recognized is primarily attributable to the location of the seller’s stores in relation to our footprint and expected synergies due to expanded inside store offerings and improved purchasing power. Almost all of the goodwill acquired as the result of this transaction will be deductible for income tax purposes over 15 years. The Company incurred total acquisition-related transaction costs of approximately $8.6 million. This includes approximately $6.7 million incurred during the year ended April 30, 2022, which are included in the consolidated statements of income within operating expenses. Circle K Throughout June 2021, the Company closed on the acquisition of 48 stores located in Oklahoma from Circle K pursuant to the terms and conditions of an asset purchase agreement. The aggregate purchase price for the acquisition totaled $41,416, which was paid in cash upon closing using available cash on hand. The table below summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. We utilized a third-party valuation specialist to assist in valuing the leases acquired.
Assets acquired: |
Inventories | $ | 5,299 |
Property and equipment | 6,150 |
Finance lease right-of-use assets | 37,086 |
Operating lease right-of-use assets | 24,113 |
Deferred income taxes | 316 |
Goodwill | 31,346 |
Total assets | 104,310 |
Liabilities assumed: |
Accrued expenses and other long-term liabilities | 545 |
Finance lease liabilities | 46,576 |
Operating lease liabilities | 15,773 |
Total liabilities | 62,894 |
Net assets acquired and total consideration paid | $ | 41,416 |
The goodwill recognized from this transaction is primarily attributable to the location of the seller's stores in relation to our footprint and expected synergies due, in part, to expanded inside store and fuel offerings. Almost all of the goodwill acquired as a result of this transaction will be deductible for income tax purposes over 15 years. Pilot On December 16, 2021, the Company closed on the acquisition of 40 stores from Pilot Corporation pursuant to the terms and conditions of an asset purchase agreement. The transaction included 39 stores located in Tennessee and one store located in Kentucky. The aggregate purchase price for the acquisition totaled $226,624, which was paid in cash using available cash on hand and certain incremental proceeds from a $150 million term loan. The table below summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. We utilized a third-party valuation specialist to assist in valuing the property and equipment and leases acquired.
Assets acquired: |
Cash and cash equivalents | $ | 95 |
Inventories | 6,556 |
Prepaid expenses | 87 |
Property and equipment | 67,365 |
Deferred income taxes | 311 |
Operating lease right-of-use assets | 28,002 |
Goodwill | 154,223 |
Total assets | 256,639 |
Liabilities assumed: |
Accrued expenses and other long-term liabilities | 883 |
Operating lease liabilities | 29,132 |
Total liabilities | 30,015 |
Net assets acquired and total consideration paid | $ | 226,624 |
The goodwill recognized from this transaction is primarily attributable to the location of the seller's stores in relation to our footprint and expected synergies due, in part, to expanded inside store offerings. Almost all of the goodwill acquired as a result of this transaction will be deductible for income tax purposes over 15 years.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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