Payment Terms

CASEYS GENERAL STORES INC MANAGEMENT REPORT OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Dollars and gallons in thousands, except per share amounts) (Form 10-K)

Please read the following discussion of the Company's financial condition and
results of operations in conjunction with the selected historical consolidated
financial data and consolidated financial statements and accompanying notes
presented elsewhere in this Form 10-K.

Insight

The Company primarily operates convenience stores under the names "Casey's" and
"Casey's General Store" throughout 16 states, primarily in Iowa, Illinois, and
Missouri. On April 30, 2022, there were a total of 2,452 stores in operation.
All convenience stores carry a broad selection of food (including freshly
prepared foods such as pizza, donuts and sandwiches), beverages, tobacco and
nicotine products, health and beauty aids, automotive products and other
non-food items. As of April 30, 2022, 212 store locations offered car washes. We
derive our revenue from the retail sale of fuel and the products offered in our
stores.

During the fiscal year, the Company introduced certain stores branded or
rebranded as "GoodStop (by Casey's)". Similar to most of our store footprint,
the "GoodStop" locations offer fuel for sale on a self-serve basis, and a broad
selection of snacks, beverages, tobacco products, and other essentials. However,
these locations typically do not have a kitchen and have limited prepared food
offerings. As of April 30, 2022, 46 stores operate under the "GoodStop" brand.

The Company is also temporarily operating certain locations acquired from
Buchanan Energy during the fiscal year under the name, "Bucky's." The Company is
in the process of transitioning all "Bucky's" locations to either the "Casey's"
or "GoodStop" brand. These locations typically have similar offerings to the
"Casey's" branded stores. The Company also operates two stores selling primarily
tobacco and nicotine products, one liquor-only store, and one grocery store.

The Company acquired a dealer network from Buchanan Energy during the 2022
fiscal year. As of April 30, 2022, there were 76 dealer locations where Casey's
manages fuel wholesale supply agreements to these stores. These locations are
not operated by Casey's. Approximately 2% of total revenue for the year-ended
April 30, 2022 relates to this dealer network.

Approximately 51% of all Casey's were opened in areas with populations of fewer
than 5,000 people, while approximately 25% of all stores were opened in
communities with populations of more than 20,000 persons. CMC operates three
distribution centers, through which certain grocery and general merchandise, and
prepared food and dispensed beverage items, are supplied to our stores. One is
adjacent to the Store Support Center facility in Ankeny, Iowa. The other two
distribution centers are located in Terre Haute, Indiana (opened in February
2016) and Joplin, Missouri (opened in April 2021). At April 30, 2022, the
Company leased the combination of land and/or building at 114 locations.

The Company's business is seasonal, and generally experiences higher sales and
profitability during the first and second fiscal quarters (May-October), when
guests tend to purchase greater quantities of fuel and certain convenience items
such as beer, sports drinks, water, soft drinks and ice.

The following table represents the progression of store growth throughout fiscal 2022:

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                             Store Count
Stores at April 30, 2021        2,243
New store construction            21
Acquisitions                     207
Acquisitions not opened          (3)
Prior acquisitions opened         4
Closed                           (20)
Stores at April 30, 2022        2,452


Acquisitions in the table above include, in part, 89 stores which were acquired
from Buchanan Energy in May, 2021. The table excludes three sites that were
included in the transaction, but were divested by the Company shortly after
closing as part of a consent order with the Federal Trade Commission.
Additionally, it includes 48 stores from the Circle K transaction that closed in
June and 40 stores from the Pilot transaction that closed in December. For
additional discussion, refer to Note 2 in the consolidated financial statements.

For more general descriptive information about the business and operations of the Company, see Section 1 above, which is incorporated herein by reference.

Long term strategic plan

The Company announced an updated, long-term strategic plan in January 2020
focused on four strategic objectives: reinvent hospitality and the guest
experience; be where the guest is by accelerating unit growth; create capacity
through best-in-class efficiencies; and, invest in our people and culture. The
Company's plan is based on building on our proud heritage and distinct
advantages to become more contemporary through new capabilities, technology,
data, and processes. We believe this will best position the Company to address
rapidly evolving shifts in consumer habits and other macro retail trends.

The Company has made significant progress towards the objectives of its strategic plan in fiscal year 2022. Examples include:

•Grew our store count through a number of strategic acquisitions, including 89
stores from Buchanan Energy, 48 stores from Circle K, and 40 stores from Pilot,
resulting in the largest unit growth year in the Company's history
•Rolled out a successful breakfast menu relaunch with innovative new items and
bean-to-cup coffee
•Expanded our private label products by over 100 items and continued to expand
the program's market share, exiting the fourth quarter at 5% sales penetration
of the grocery and general merchandise category
•Introduced a fuel wholesale network through the acquisition of Buchanan Energy,
which is made up of 76 locations as of April 30, 2022
•Stood up new fuel technology to optimize fuel procurement efforts
•Continued to expand our digital offerings and have increased our Casey's
Rewards enrollment to approximately 5 million members, an increase of 1.3
million during the fiscal year
•Improved the efficiency of our distribution network with the new distribution
center in Joplin, Missouri, which opened in the prior fiscal year

COVID-19 and related impacts

Throughout fiscal year 2022, the Company continued to adapt to the challenges
caused or contributed to by COVID-19 and its new and unpredictable variants. In
general, reported COVID-19 cases across our footprint were down, although we did
see a slight uptick at the end of the fiscal year. Overall, this has led to
fewer staffing challenges due to illness, temporary store closures and special
cleaning costs. On the other hand, the ongoing challenges included, but were not
limited to, a stressed labor market, as it became increasingly challenging to
find, hire and retain store Team Members. In response, the Company held two
large-scale hiring events during the year, each of which led to the onboarding
of a significant number of Team Members to support our stores. In addition, the
Company saw increasing wage pressure, as wages across the convenience store,
restaurant and retail industries in general continued to rise, which directly
contributes to increased operating expenses. The Company expects to see these
labor challenges continue throughout the 2023 fiscal year. COVID-19 also
continues to pressure our supply chain, and the supply chains of our suppliers.
While the Company has been successful in hiring and retaining drivers, some
supplier networks have been challenged by a lack of drivers, which in some cases
has led to delays in deliveries to our distribution centers and stores. Other
supply chain challenges have included the unavailability of certain products
from our suppliers, which has led to these products being out of stock or not
available at all. The Company also expects these issues to continue throughout
the 2023 fiscal year. Finally, the initial onset of COVID-19 in early 2020
caused a significant decrease in store traffic across our entire footprint.
While store traffic has markedly increased as the economy has reopened over the
past two or so years, the Company has not seen a full return to store traffic
levels experienced prior to the pandemic. The Company believes this is largely
contributed to the increased prevalence and acceptance across all industries of
working from home, a trend which the Company expects to continue into the
foreseeable future. While COVID-19 will continue to bring challenges
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and the uncertainty of our operating environment, we believe that our resilient business model and the strength of our brand and balance sheet positions us well to weather the pandemic and its impacts.

Fuel volatility

Since the beginning of the COVID-19 pandemic, the price of crude oil, and in
turn the wholesale cost of fuel, has been volatile. Initially, at the outset of
the pandemic, oil and fuel prices fell dramatically; however, as the economy in
general began to emerge from the COVID-19 pandemic, prices began to modestly
increase over time. More recently, during the end of the Company's 2022 fiscal
year, and continuing thereafter, oil and fuel prices have seen a quick and
dramatic increase, in part, as a result of the conflict in Ukraine, as well as
other macroeconomic conditions, which also directly impacts the retail price of
fuel that we sell at our stores. Although the Company has not seen a material
reduction in demand to-date, as the retail price of fuel increases to over four
dollars, and in some instances, five dollars per gallon, it is possible that the
Company may begin to see demand decline for fuel or other discretionary items it
sells inside its stores. In addition, since the beginning of the COVID-19
pandemic, the Company, and the fuel industry as a whole, has experienced
historically high average revenue less cost of goods sold per gallon (excluding
depreciation and amortization and credit card fees). Although this has remained
relatively consistent since that time on a longer-term basis, this metric can
fluctuate significantly, and sometimes unpredictably, in the short-term. While
the Company believes that its average revenue less cost of goods sold per gallon
(excluding depreciation and amortization and credit card fees) will remain
elevated from pre-COVID-19 pandemic levels for the foreseeable future, it is
possible that increased oil and fuel prices, rising interest rates,
macroeconomic conditions and/or continuing conflicts or disruptions involving
oil producing countries may materially impact the performance of this metric.

Electric vehicles and renewable fuels

Casey's is in the early stages of developing a more robust electric vehicle
("EV") strategy and our management team remains committed to understanding if
and how the increase demand for, and usage of, EVs impacts consumer behavior
across our store footprint and beyond. The Company has installed 114 charging
stations at 25 stores, across 8 states. Our current implementation strategy is
designed to selectively install charging stations in locations within our
footprint where we see higher levels of consumer EV usage. To date, consumer EV
demand within our Midwest footprint has been comparatively lower than the levels
along the coasts. As EV demand from our guests increases, we are prepared to
integrate charging station options at our nearby stores.

The Company also remains committed to offering renewable fuel options at our
stores. Currently, 100% of our stores offer fuel with at least 10% of blended
ethanol and 44% of our stores offer biodiesel. Every new store has the
capability to sell higher blended ethanol, and we aim to continue growing sales
of renewable fuels throughout our footprint. At the end of the 2022 fiscal year,
the Biden administration announced plans for an emergency waiver to allow the
sale of gasoline blended with 15% ethanol during the summer period and as a
result, we expect to see an increase in the sales volumes of ethanol blended
fuels compared to what we would generally expect during this period.

Fiscal 2022 vs. Fiscal 2021

Total revenue for fiscal 2022 increased 48.8% ($4,245,405) to $12,952,594.
Retail fuel sales for the fiscal year were $8,312,038, a increase of 72.3%
primarily due to a 45.7% increase in the average price of fuel. Fuel gallons
sold increased 18.3% to 2.6 billion gallons, which increased fuel revenue by an
additional $1,282,871. Additionally, the Company saw a $534,106 increase to
$4,345,627 (14.0%) in grocery and general merchandise and prepared food and
dispensed beverage revenue, due to operating 209 more stores than one year ago,
price increases responding to the rising cost of inputs, and improved sales in
pizza slices, breakfast sandwiches, packaged beverages, and salty snacks.

Total revenue less cost of goods sold (excluding depreciation and amortization)
was 21.3% for fiscal 2022 compared with 27.1% for the prior year. Fuel cents per
gallon increased to 36.0 cents in fiscal 2022 from 34.9 cents in fiscal 2021.
The grocery and general merchandise revenue less related cost of goods sold
(exclusive of depreciation and amortization) increased to 32.7% from 32.0%
during fiscal 2022 compared to fiscal 2021. Grocery and general merchandise
revenue less related cost of goods sold (exclusive of depreciation and
amortization) was positively impacted by mix shift, including gaining market
share on the private label program, procurement initiatives, and price
increases, offset by inflationary pressures. The prepared food and dispensed
beverage revenue less related cost of goods sold (exclusive of depreciation and
amortization) decreased to 59.2% from 60.1% during fiscal 2022 compared to the
prior year, primarily due to inflationary pressures.

Operating expenses increased 19.8% ($324,282) in fiscal 2022 primarily due to
operating 209 more stores than one year ago inclusive of $15.0 million of
one-time deal and integration costs, as well as a 7.5% increase in same-store
labor rates, and a 23% increase in same-store credit card fees driven by higher
fuel pricing. The majority of all operating expenses are wages and wage-related
costs.

Depreciation and amortization increased by 14.5% ($38,346) at $303,541 in fiscal year 2022 $265,195 in fiscal 2021. The increase is mainly due to acquisitions and capital expenditures made in fiscal 2022 and 2021.

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The effective tax rate decreased to 22.9% in fiscal 2022 from 23.2% in fiscal
2021. The decrease in the effective tax rate was driven by a one-time benefit
from adjusting the Company's deferred tax assets and liabilities for state law
changes enacted during the year, offset by a one-time expense to update the
state deferred tax rate following the Buchanan Energy transaction.

Net income increased to $339,790 in fiscal 2022 from $312,900 in fiscal 2021.
The increase was primarily due to increased fuel and grocery contribution
attributable to increasing store traffic, operating 209 more stores than one
year ago, offset by increased operating expenses and depreciation.

Please refer to Form 10-K for the fiscal year ended April 30, 2021filed on June 25, 2021for the comparison of fiscal year 2021 to fiscal year 2020.

TOTAL COMPANY REVENUE AND REVENUE LESS COST OF GOODS SOLD (EXCLUDING AMORTIZATION AND DEPRECIATION) BY CATEGORY (1)

                                                                              Years ended April 30,
                                                                 2022                  2021                 2020
Total revenue by category
Fuel                                                        $  8,312,038          $ 4,825,466          $ 5,517,412
Grocery and general merchandise                                3,141,527            2,724,374            2,498,966
Prepared food and dispensed beverage                           1,204,100            1,087,147            1,097,207
Other (2)                                                        294,929               70,202               61,711
                                                            $ 12,952,594          $ 8,707,189          $ 9,175,296
Revenue less cost of goods sold (excluding depreciation and
amortization) by category
Fuel                                                        $    928,868          $   761,247          $   614,847
Grocery and general merchandise                                1,027,477              872,573              800,140
Prepared food and dispensed beverage                             712,352              653,689              668,092
Other (2)                                                         94,017               68,926               61,605
                                                            $  2,762,714          $ 2,356,435          $ 2,144,684


(1)Note that we have changed the names of the "grocery and other merchandise"
category to "grocery and general merchandise" and the "prepared food and
fountain" category to "prepared food and dispensed beverage" to better reflect
the composition of the category. There have been no changes to the makeup of the
categories, and they remain directly comparable to prior periods.
(2)The 'Other' category historically has primarily consisted of lottery, which
is presented net of applicable costs, and car wash. As a result of the Buchanan
Energy acquisition, we acquired a dealer network where Casey's manages fuel
wholesale supply agreements to these stores. The activity related to this dealer
network is included in the 'Other' category and is presented gross of applicable
costs.

COMPARISON OF INDIVIDUAL STORES (1)

                                                                          Years ended April 30,
                                                                2022               2021               2020
Average retail sales                                        $   5,206          $   3,894          $   4,203
Average retail inside sales (2)                                 1,840              1,720              1,659

Average revenue less cost of goods sold (excluding depreciation and amortization) over internal sales (2)

                723                655                647
Average retail sales of fuel                                    3,366              2,174              2,544

Average revenue less cost of goods sold (excluding depreciation and amortization) on fuel

                            363                338                280
Average operating income (3)                                      367                338                291
Average number of gallons sold                                  1,047                981              1,055



(1)Individual store comparisons only include stores that had been in operation for at least one full year and remained open on April 30 of the exercise indicated.

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(2)Inside sales is comprised of sales related to the grocery and general
merchandise and prepared food and dispensed beverage categories.
(3)Average operating income represents retail sales less cost of goods sold and
operating expenses attributable to a particular store; it excludes interest,
federal and state income taxes, and Company operating expenses not attributable
to a particular store.


COMPARABLE STORE SALES BY CATEGORY (1)

                                                       Years ended April 30,
                                                   2022               2021        2020
Fuel gallons (2)                                          4.4  %     (8.1) %     (5.1) %
Grocery and general merchandise (3)                       6.3  %      6.6  %      1.9  %
Prepared food and dispensed beverage (3)                  7.4  %     (2.1) 

% (1.5)%



(1)Same-store sales is a common metric used in the convenience store industry.
We define same-store sales as the total sales increase (or decrease) for stores
open during the full time of the periods being presented. The store must be open
for each entire fiscal year being compared. Remodeled stores that remained open
or were closed for just a very brief period of time (less than a week) during
the period being compared remain in the same store sales comparison. If a store
is replaced, either at the same location (razed and rebuilt) or relocated to a
new location, it is removed from the comparison until the new store has been
open for each entire period being compared. Newly constructed and acquired
stores do not enter the calculation until they are open for each entire period
being compared as well.
(2)The increase in fuel gallons in fiscal 2022 as compared to fiscal 2021 was
primarily due to increased demand as store traffic improved throughout the
duration of the COVID-19 pandemic.
(3)The increase in same-store sales for prepared food and dispensed beverage and
grocery and general merchandise for 2022 as compared to 2021 was primarily due
to increased demand as store traffic improved throughout the duration of the
COVID-19 pandemic, price increases relating to inflationary pressures, as well
as improved sales in pizza slices, breakfast items related to the breakfast menu
relaunch, packaged beverages, and salty snacks.

Use of Non-GAAP Measures

We define EBITDA as net earnings before net interest expense, income taxes, and amortization. Adjusted EBITDA also adjusts EBITDA by excluding gain or loss on disposal of assets as well as impairment charges. Neither EBITDA nor Adjusted EBITDA is presented in accordance with GAAP.

We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our
operating performance because securities analysts and other interested parties
use such calculations as a measure of financial performance and debt service
capabilities, and they are regularly used by management for internal purposes
including our capital budgeting process, evaluating acquisition targets, and
assessing store performance.

EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be
considered as a substitute for net income, cash flows from operating activities
or other income or cash flow statement data. These measures have limitations as
analytical tools, and should not be considered in isolation or as substitutes
for analysis of our results as reported under GAAP. We strongly encourage
investors to review our financial statements and publicly filed reports in their
entirety and not to rely on any single financial measure.

Because non-GAAP financial measures are not standardized, EBITDA and Adjusted
EBITDA, as defined by us, may not be comparable to similarly titled measures
reported by other companies. It therefore may not be possible to compare our use
of these non-GAAP financial measures with those used by other companies.

The following table contains a reconciliation of net profit to EBITDA and Adjusted EBITDA for the three months and years ended April 30, 2022 and 2021, respectively:

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                                                             Three months ended                                    Years ended
                                                   April 30, 2022           April 30, 2021           April 30, 2022           April 30, 2021
Net income                                                59,777          $        41,698          $       339,790          $       312,900
Interest, net                                             15,291                   11,168                   56,972                   46,679
Depreciation and amortization                             77,866                   69,897                  303,541                  265,195
Federal and state income taxes                            12,905                   11,921                  100,938                   94,470
EBITDA                                           $       165,839          $       134,684          $       801,241          $       719,244
(Gain) loss on disposal of assets and impairment
charges                                                     (333)                   5,872                   (1,201)                   9,680
Adjusted EBITDA                                  $       165,506          $       140,556          $       800,040          $       728,924


For the three months ended April 30, 2022, EBITDA and Adjusted EBITDA increased
23.1% and 17.8% respectively, when compared to the same period a year ago. For
the year ended April 30, 2022, EBITDA and Adjusted EBITDA increased 11.4% and
9.8%, respectively. The increase was due to increased fuel and grocery
contribution attributable to increasing store traffic, operating 209 more stores
than one year ago, partially offset by increased operating expenses.

Significant Accounting Policies and Estimates

Critical accounting policies are those accounting policies that management
believes are important to the portrayal of our financial condition and results
of operations and require management's most difficult, subjective judgments,
often because of the need to estimate the effects of inherently uncertain
factors.

Business combinations

The Company uses the acquisition method of accounting for transactions meeting
the definition of a business combination. The acquisitions are 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 both third party appraisals
or internal estimates. The more significant assets acquired include buildings,
equipment, and land. The Company primarily values buildings and equipment using
the cost method and land using comparable land sales. The purchase price is
determined based upon the fair value of consideration transferred to the seller.
Fair values are typically determined using Level 3 inputs (see Note 3 to the
consolidated financial statements). Given these estimates often are based upon
unobservable inputs, the estimates require significant judgment when determining
the overall value and actual results could differ from the estimates originally
established. 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. During a one-year period from the acquisition date, amounts are
allowed to be provisional for areas that are expected to be adjusted to their
final amounts during the measurement period. These provisional adjustments are
for when the buyer obtains additional information about the facts and
circumstances that existed as of the acquisition date. Subsequent adjustments
recorded to provisional balances within the measurement period are recorded in
the period in which the adjustment is identified. Acquisition-related
transaction costs are recognized as period costs as incurred.

Inventory

Inventories, which consist of merchandise and fuel, are stated at the lower of
cost or market. For fuel, cost is determined through the use of the first-in,
first-out (FIFO) method. For merchandise inventories, cost is determined through
the use of the last-in, first-out (LIFO) method. Inventory valued using the LIFO
method of inventory requires judgement when making the determination of
appropriate indices to be used for determining price level changes.

Long-lived assets

The Company monitors closed and underperforming stores for an indication that
the carrying amount of assets may not be recoverable. If the sum of the expected
future undiscounted cash flows is less than the carrying amount of the assets,
an impairment loss is recognized to the extent carrying value of the assets
exceeds their estimated fair value. Fair value is based on management's estimate
of the price that would be received to sell an asset in an orderly transaction
between market participants. The estimate is derived from offers, actual sale or
disposition of assets subsequent to year-end, and other indications of fair
value, which are considered Level 3 inputs (see Note 3 to the consolidated
financial statements). In determining whether an asset is impaired, assets are
grouped at the lowest level for which there are identifiable cash flows that are
largely independent of the cash flows of other groups of assets, which for the
Company is generally on a store-by-store basis. The Company incurred impairment
charges of $1,056 in fiscal 2022, $3,846 in fiscal 2021, and $1,177 in fiscal
2020. Impairment charges are a component of operating expenses.

Self-insurance

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The Company is primarily self-insured for Team Member healthcare, workers'
compensation, general liability, and automobile claims. The self-insurance claim
liability for workers' compensation, general liability, and automobile claims is
determined actuarially at each year-end based on claims filed and an estimate of
claims incurred but not yet reported. Actuarial projections of the losses are
employed due to the potential of variability in the liability estimates. Some
factors affecting the uncertainty of claims include the development time frame,
settlement patterns, litigation and adjudication direction, and medical
treatment and cost trends. The liability is not discounted. The balances of our
self-insurance reserves were $53,752 and $50,526 for the years ended April 30,
2022 and 2021, respectively.

Recent accounting pronouncements

Refer to note 1 of the consolidated financial statements for a description of the new accounting standards applicable to the Company.

Cash and capital resources

Due to the nature of our business, cash provided by operations is our primary
source of liquidity. The Company finances our inventory purchases primarily from
normal trade credit aided by relatively rapid inventory turnover. This turnover
allows us to conduct operations without large amounts of cash and working
capital. As of April 30, 2022, the Company's ratio of current assets to current
liabilities was 0.80 to 1. The ratio at April 30, 2021 and at April 30, 2020 was
1.18 to 1 and 0.36 to 1, respectively. The decrease in the ratio from the prior
year is partially attributable to a decrease in cash and cash equivalents
associated with payments for the acquisitions of Buchanan Energy, 48 stores from
Circle K and 40 stores from Pilot, offset by an increase in inventory due to
operating 209 more stores than a year ago and higher fuel pricing. Additionally,
current liabilities have increased partially related to accounts payable, due to
increasing store count, an increase in fuel prices, as well as an effort to
better manage payment terms.

We believe our current $450,000 unsecured revolving credit facility, our $25,000
unsecured bank line of credit, current cash and cash equivalents, and the future
cash flow from operations will be sufficient to satisfy the working capital
needs of our business.

Net cash provided by operating activities decreased $15,347 (1.9%) for the year
ended April 30, 2022, primarily due to increases in income tax receivable,
inventories, and accrued expenses. Cash used in investing activities in the year
ended April 30, 2022 increased $713,655 (160.6%) primarily due to cash paid for
the acquisition of Buchanan Energy for $566,750, 48 Circle K stores for $41,416,
and 40 Pilot stores for $226,529, net of cash acquired. Refer to Note 2 of the
consolidated financial statements for additional discussion. Cash flows provided
by financing activities increased $293,065, primarily due to $450,000 in draws
on the Company's term loan facilities, offset by $188,537 of payments long-term
debt, including $167,500 of prepayments due to strong free cash flow. Refer to
Note 3 of the consolidated financial statements for additional discussion.

Purchases of property and equipment and payments for acquisitions of businesses
typically represent the single largest use of Company funds. Management believes
that by acquiring, building, and reinvesting in stores, the Company will be
better able to respond to competitive challenges and increase operating
efficiencies. During fiscal 2022, we expended $1,228,113 for property and
equipment, primarily for construction, acquisition, and remodeling of stores
compared with $450,608 in the prior year, primarily due to the acquisition
activity discussed previously. In fiscal 2023, we anticipate spending
approximately $450-$500 million in capital expenditures, including approximately
$135 million in one-time store remodel costs for recently acquired stores.
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From April 30, 2022we had long-term debt and finance lease obligations consisting of:

Finance lease liabilities (Note 7)                                          

74,234

3.67% Senior Notes (Series A) maturing in 7 installments from June 17, 2022and ending June 15, 2028

150,000

3.75% Senior Notes (Series B) maturing in 7 installments from
December 17, 2022 and ending December 18, 2028

50,000

3.65% Senior Notes (Series C) maturing in 7 installments from May 2, 2025
and ending May 2, 2031

50,000

3.72% Senior Notes (Series D) maturing in 7 installments from October 28, 2025 and ending October 28, 2031

50,000

3.51% Senior notes (Series E) due June 13, 2025                             

150,000

3.77% Senior notes (Series F) due August 22, 2028                           

250,000

2.85% Senior notes (Series G) due August 7, 2030                            

325,000

2.96% Senior notes (Series H) due August 6, 2032                            

325,000

Variable rate Term Loan Facilities, due January 6, 2026                              265,625
Debt issuance costs                                                                   (1,990)
                                                                                   1,687,869
Less current maturities                                                               24,466
                                                                                   1,663,403


Interest on the 3.67% Senior notes Series A and 3.75% Senior notes Series B is
payable on the 17th day of each June and December. Principal on the Senior notes
Series A and Series B is payable in various installments beginning June 17, 2022
(Series A) and December 17, 2022 (Series B) through December 2028. We may prepay
the 3.67% and 3.75% Senior notes in whole or in part at any time in an amount of
not less than $2,000 at a redemption price calculated in accordance with the
Note Agreement dated June 17, 2013, as amended, between the Company and the
purchasers of the Senior notes Series A and Series B.

Interest on the 3.65% Senior notes Series C is payable on the 2nd day of each
May and November, while the interest on the 3.72% Senior notes Series D is
payable on the 28th day of each April and October. Principal on the Senior notes
Series C and Series D is payable in various installments beginning May 2, 2025
(Series C) and October 28, 2025 (Series D) through October 2031. We may prepay
the 3.65% and 3.72% Senior notes in whole or in part at any time in an amount of
not less than $2,000 at a redemption price calculated in accordance with the
Note Agreement dated May 2, 2016, as amended, between the Company and the
purchasers of the Senior notes Series C and Series D.

Interest on the 3.51% Senior notes Series E is payable on the 13th day of each
June and December, while the interest on the 3.77% Senior notes Series F is
payable on the 22nd day of each February and August. Principal on the Senior
notes Series E and Series F is payable in full on June 13, 2025 (Series E) and
August 22, 2028 (Series F), respectively. We may prepay the 3.51% and 3.77%
Senior notes in whole or in part at any time in an amount of not less than
$2,000 at a redemption price calculated in accordance with the Note Agreement
dated June 13, 2017, as amended, between the Company and the purchasers of the
Senior notes Series E and Series F.

Interest on the 2.85% Senior notes Series G and 2.96% Senior notes Series H is
payable on the 7th day of each February and August. Principal on the Senior
notes Series G and Series H is payable in full on August 7, 2030 (Series G) and
August 6, 2032 (Series H), respectively. We may prepay the 2.85% and 2.96%
Senior notes in whole or in part at any time in an amount of not less than
$2,000 at a redemption price calculated in accordance with the Note Purchase
Agreement dated June 30, 2020, between the Company and the purchasers of the
Senior notes Series G and Series H.

Amounts borrowed under the Company's term loan facilities bear interest at
variable rates based upon, at the Company's option, either: (i) the Adjusted
LIBO Rate, plus a margin ranging from 1.55% to 2.60%; or (ii) the ABR, plus a
margin ranging from 0.20% to 1.60%. The Company currently has elected the
Adjusted LIBO Rate, and there is an option to elect either rate in subsequent
interest periods. The applicable margins are dependent upon the Company's
Consolidated Leverage Ratio, as defined in the credit agreement establishing the
Company's term loan facilities as calculated quarterly. Interest is payable at
the end of each calendar quarter. We have the right at any time to prepay all or
a portion of the outstanding balance without premium or penalty, with prior
notice given. During the fourth quarter of the fiscal year, the Company made
prepayments of $167,500 on its term loan facilities.
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Contents

To date, we have funded capital expenditures primarily through funds generated
from operations, the proceeds of the sale of common stock, issuance of debt, and
existing cash. Future capital required to finance operations, improvements, and
the anticipated growth in the number of stores is expected to come from cash
generated by operations, its $450,000 committed unsecured revolving credit
facility, its additional $25,000 unsecured bank line of credit, and additional
long-term debt or other securities as circumstances may dictate. We do not
expect such capital needs to adversely affect liquidity.

The table below sets out our main contractual obligations, including interest, as of April 30, 2022:

Contractual obligations                                 Payments due by period
                                                Less than                                     More than
                                  Total          1 year        1-3 years      3-5 years        5 years
Senior notes (1)              $ 1,925,775      $  64,362      $ 149,737      $ 577,894      $ 1,133,782
Finance lease obligations         107,566          7,235         12,246         10,408           77,677

Operating lease obligations 153,277 7,875 14,997

     14,527          115,878
Unrecognized tax benefits          10,259              -              -              -                -
Deferred compensation              14,156              -              -              -                -
Total                         $ 2,211,033      $  79,472      $ 176,980      $ 602,829      $ 1,327,337

(1) The senior notes portion of the table above excludes interest payments related to the Company’s term loan facilities, due to the variable nature of the interest payments required.

Unrecognized tax benefits relate to uncertain tax positions and since we are not
able to reasonably estimate the timing of the payments or the amount by which
the liability will increase or decrease over time, the related timing of the
payment of the balances have not been reflected in the above "Payments due by
period" table.

At April 30, 2022, the Company had a total of $10,259 in gross unrecognized tax
benefits. Of this amount, $8,105 represents the amount of unrecognized tax
benefits that, if recognized, would impact our effective tax rate. The total
amount of accrued interest and penalties for such unrecognized tax benefits was
$371 as of April 30, 2022. Interest and penalties related to income taxes are
classified as income tax expense in our consolidated financial statements. The
federal statute of limitations remains open for the tax years 2018 and forward.
Tax years 2012 and forward are subject to audit by state tax authorities
depending on open statute of limitations waivers and the tax code of each state.

A number of years may elapse before an uncertain tax position is audited and
ultimately settled. It is difficult to predict the ultimate outcome or the
timing of resolution for uncertain tax positions. It is reasonably possible that
the amount of unrecognized tax benefits could significantly increase or decrease
within the next twelve months. These changes could result from the expiration of
the statute of limitations, examinations or other unforeseen circumstances. The
Company has no ongoing federal or state income tax examinations. At this time,
management believes it is reasonably possible the aggregate amount of
unrecognized tax benefits will decrease by $2,100 within the next 12 months.
This expected decrease is due to the expiration of statute of limitations
related to certain federal and state income tax filing positions.

Included in long-term liabilities on our consolidated balance sheet at April 30,
2022, was a $12,746 obligation for deferred compensation. Additionally, $1,040
was recognized in current liabilities as of April 30, 2022 related to deferred
compensation. As the specific payment dates for a portion of the deferred
compensation outstanding are unknown due to the unknown retirement dates of many
of the participants, the related timing of the payment of the balances have not
been reflected in the above "Payments due by period" table. However, known
payments of $10,418 will be due during the next 5 years.

At April 30, 2022, we were partially self-insured for workers' compensation
claims in all 16 states of our marketing territory; we also were partially
self-insured for general liability and auto liability under an agreement that
provides for annual stop-loss limits equal to or exceeding $2,000 for auto
liability and $1,000 for workers' compensation and general liability. To
facilitate this agreement, letters of credit approximating $5,492 were issued
and outstanding at April 30, 2022, on the insurance company's behalf. We renew
the letters of credit on an annual basis.

Forward-looking statements

This Form 10-K, including but not limited to the Management's Discussion and
Analysis of Financial Condition and Results of Operations, contains
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995. The words
"may," "will," "should," "believe," "expect," "anticipate," "intend,"
"estimate," "project," "continue," and similar expressions are used to identify
forward-looking statements. Forward-looking statements represent the Company's
current expectations or beliefs concerning future events and trends that we
believe may affect our financial condition, liquidity and related sources and
needs, supply chain, results of operations and performance at our stores,
business strategy, strategic
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  Table of Contents
plans, growth opportunities, integration of acquisitions, acquisition synergies,
short-term and long-term business operations and objectives including our
long-term strategic plan, wholesale fuel, inventory and ingredient costs and the
potential effects of the conflict in Ukraine and COVID-19 on our business.  The
Company cautions that these statements are further qualified by important
factors that could cause actual results to differ materially from those in the
forward-looking statements, including, without limitation, the following risk
factors described more completely above in Item 1A entitled "Risk Factors":

Business Operations; Our business and our reputation could be adversely affected
by a cyber or data security incident or the failure to protect sensitive guest,
Team Member or supplier data, or the failure to comply with applicable
regulations relating to data security and privacy; food-safety issues and
food-borne illnesses, whether actual or reported, or the failure to comply with
applicable regulations relating to the transportation, storage, preparation or
service of food, could adversely affect our business and reputation; pandemics
or disease outbreaks, such as COVID-19, responsive actions taken by governments
and others to mitigate their spread, and guest behavior in response to these
events, have, and may in the future, adversely affect our business operations,
supply chain and financial results; a significant disruption to our distribution
network, to the capacity of the distribution centers, or timely receipt of
inventory could adversely impact our sales or increase our transaction costs,
which could have a material adverse effect on our business; we could be
adversely affected if we experience difficulties in, or are unable to recruit,
hire or retain, members of our leadership team and other distribution, field and
store Team Members; any failure to anticipate and respond to changes in consumer
preferences, or to introduce and promote innovative technology for guest
interaction, could adversely affect our financial results; we rely on our
information technology systems, and a number of third-party software providers,
to manage numerous aspects of our business, and a disruption of these systems
could adversely affect our business; increased credit card expenses could lead
to higher operating expenses and other costs for the Company; our operations
present hazards and risks which may not be fully covered by insurance, if
insured; the dangers inherent in the storage and transport of fuel could cause
disruptions and could expose to us potentially significant losses, costs or
liabilities; consumer or other litigation could adversely affect our financial
condition and results of operations; and, covenants in our senior notes and
credit facility agreements require us to comply with certain covenants and meet
financial maintenance tests and the failure to comply with these requirements
could have a material impact to us.

Governmental Actions, Regulations, and Oversight: Compliance with and changes in
tax laws could adversely affect our performance; we are subject to extensive
governmental regulations; governmental action and campaigns to discourage
tobacco and nicotine use and other tobacco products may have a material adverse
effect on our revenues and gross profit; and, wholesale cost and tax increases
relating to tobacco and nicotine products could affect our operating results.

Industry: General economic and political conditions that are largely out of the
Company's control may adversely affect the Company's financial condition and
results of operations; developments related to fuel efficiency, fuel
conservation practices, climate change, and changing consumer preferences may
decrease the demand for motor fuel; unfavorable weather conditions can adversely
affect our business; the volatility of wholesale petroleum costs could adversely
affect our operating results; and, the convenience store industry is highly
competitive.

Growth Strategies: We may experience difficulties implementing and realizing the
results of our long-term strategic plan; and, we may not be able to identify,
acquire, and integrate new properties and stores, which could adversely affect
our ability to grow our business.

Common Stock: The market price for our common stock has been and may in the
future be volatile, which could cause the value of your investment to decline;
any issuance of shares of our common stock in the future could have a dilutive
effect on your investment; and, Iowa law and provisions in our charter documents
may have the effect of preventing or hindering a change in control and adversely
affecting the market price of our common stock.

Although we have attempted to list the important factors that presently affect
the Company's business and operating results, we further caution you that other
factors we have not identified may in the future prove to be important in
affecting our business and results of operations. We ask you not to place undue
reliance on any forward-looking statements because they speak only of our views
as of the statement dates. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise.

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