Core-Mark Announces Third Quarter Record Financial Results; Expands Presence in the Southeast; Builds Momentum for Record Year in 2012
(firmenpresse) - SOUTH SAN FRANCISCO, CA -- (Marketwire) -- 11/08/11 -- Core-Mark Holding Company, Inc. (NASDAQ: CORE), one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America, announced financial results for the third quarter ended September 30, 2011.
Net sales increased 11.6% to $2.23 billion for the third quarter of 2011 compared to $1.99 billion for the same period in 2010. On a constant currency basis, net sales increased 10.6%. The largest contributor to this growth was sales generated from the Company's acquisition of Forrest City Grocery Company (FCGC) in May 2011. In addition, net sales increased due to cigarette price increases, business generated from a new Alimentation Couche-Tard contract and the acquisition of Finkle Distributors, Inc. (FDI) in August 2010. As a result of the FCGC acquisition and the new Couche-Tard business, the company has two new divisions in the southeast, which are expected to increase sales significantly.
Gross profit for the third quarter of 2011 was $122.2 million compared to $106.1 million for the same period last year. Remaining gross profit increased 11.1% to $121.1 million this quarter from $109.0 million in the third quarter of 2010. Non-cigarette remaining gross profit increased 9.4% or $6.9 million. Cigarette remaining gross profit per carton increased six cents.
The Company's operating expenses for the third quarter of 2011 were $101.1 million compared to $92.5 million in the same quarter in 2010. As a percentage of net sales, total operating expenses decreased nine basis points. Adjusted income from operations increased to $21.8 million from $16.6 million, which excludes the items listed below.
Net income for the third quarter of 2011 was $12.0 million, or $1.03 per diluted share, compared to $8.7 million, or $0.78 per diluted share, for the same period in 2010. Diluted earnings per share were impacted by several items, which are reconciled in the attached table. Excluding these items, diluted earnings per share on an adjusted basis would have been $1.14 for the third quarter in 2011 compared to $0.91 for the same quarter last year.
"We are pleased with our earnings growth and with the momentum we have created over the last year. We expect to have a good year and an even better one in 2012," said Michael Walsh, President and Chief Executive Officer of Core-Mark.
Net sales were $5.99 billion for the first nine months of 2011 compared to $5.41 billion for the same period in 2010, a 10.7% increase. On a constant currency basis, net sales increased 9.7% during the first nine months of 2011 compared to the same period in the prior year. The increase in sales was driven primarily by the acquisition of FCGC and FDI. In addition, net sales increased due to inflation in both excise taxes and cigarette products and growth in the food category.
Gross profit for the first nine months of 2011 was $324.3 million compared to $291.0 million for the same period last year. Remaining gross profit increased 10.2% to $325.3 million in the first nine months of 2011 compared to $295.2 million in 2010. Non-cigarette remaining gross profit increased 9.7% or $19.6 million. Cigarette remaining gross profit per carton increased five cents.
The Company's operating expenses for the first nine months of 2011 increased to $287.3 million compared to $262.3 million in the same period of 2010. As a percent to net sales, operating costs decreased five basis points. The first nine months of 2011 included a $3.0 million increase in net fuel costs and a $2.0 million net increase in acquisition-related expenses and start-up costs from our new division in Florida. Adjusted income from operations increased from $34.5 million to $41.4 million, which excludes the items listed below.
Net income for the first nine months of 2011 was $21.0 million, or $1.78 per diluted share compared to $16.8 million, or $1.47 per diluted share for the same period in 2010. Diluted earnings per share were impacted by several items, which are reconciled in the attached table. Excluding these items, diluted earnings per share on an adjusted basis would have been $2.07 for the first nine months this year compared to $1.78 for the first nine months of 2010.
The Company reiterates its annual net sales guidance of $8.2 billion for 2011, including expected sales from its Forrest City Grocery Company acquisition and its recently announced new business with Alimentation Couche-Tard in the Southeastern U.S. Management continues to estimate that its capital expenditures will not exceed $24 million in 2011, including the capital necessary to fund its new Florida division.
Core-Mark will host an earnings call on Tuesday, November 8, 2011 at 9:00 a.m. Pacific time during which management will review the results of the third quarter. The call may be accessed by dialing 1-800-588-4973 using the code 29023198. The call may also be listened to on the Company's website .
An audio replay will be available for two weeks following the call by dialing 888-843-7419 using the same code. The replay will also be available via webcast at for approximately 90 days following the call.
Core-Mark is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. Founded in 1888, Core-Mark offers a full range of products, marketing programs and technology solutions to approximately 29,000 customer locations in the U.S. and Canada through 26 distribution centers (excluding two distribution facilities the Company operates as a third party logistics provider). Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry convenience products. For more information, please visit .
This press release includes non-GAAP financial measures including adjusted diluted earnings per share, adjusted income from operations and remaining gross profit. We believe these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful period to period evaluation. Management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
Except for historical information, the statements made in this press release are forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions or estimates, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial conditions or state other forward-looking information. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.
Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Forward-looking statements in some cases can be identified by the use of words such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "believe," "could," "would," "project," "predict," "continue," "plan," "propose" or other similar words or expressions. These forward-looking statements are based on the current plans and expectations of our management and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those discussed in such forward-looking statements.
Factors that might cause or contribute to such differences include, but are not limited to, our dependence on the convenience retail industry for our revenues; uncertain economic conditions; competition; price increases; our dependence on relatively few suppliers; the low-margin nature of cigarette and consumable goods distribution; certain distribution centers' dependence on a few relatively large customers; competition in the labor market; product liability claims and manufacturer recalls of products; fuel price increases; our dependence on our senior management; our ability to successfully integrate acquired businesses; currency exchange rate fluctuations; the payment of dividends; our ability to borrow additional capital; governmental regulations and changes thereto, including the Family Smoking Prevention and Tobacco Control Act; earthquake and natural disaster damage; failure or disruptions to our information systems; a greater decline than anticipated in cigarette sales volume; changes in consumer purchasing habits and trends in the convenience retail industry; our ability to implement marketing strategies; our reliance on manufacturer discount and incentive programs; tobacco and other product liability claims; and competition from sales of deep-discount cigarette brands and illicit and other low-priced sales of cigarettes. Refer to the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on March 15, 2011 and Part II, Item 1A, "Risk Factors" of any quarterly report on Form 10-Q subsequently filed by us. Except as provided by law, 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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Datum: 08.11.2011 - 07:30 Uhr
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