Core-Mark Announces Strong First Quarter 2012 Financial Results
First Quarter Revenue up 22%; Diluted EPS of $0.31 vs. $0.04 for Prior Year; Reiterate 2012 Full-Year Guidance of $9 Billion Sales and EPS Range of $2.75 to $2.90
(firmenpresse) - SOUTH SAN FRANCISCO, CA -- (Marketwire) -- 05/08/12 -- 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 first quarter ended March 31, 2012.
"Our expansion into the Southeast in 2011 continues to fuel our revenue growth, operating leverage of fixed expense is amplifying our positive results, and strong same store sales in the first quarter suggest the industry could be poised for a solid year," said J. Michael Walsh, President and Chief Executive Officer. "We are also making headway in executing our core strategies of fresh, vendor consolidation, and category management consultation that combine to grow our customers' sales and profits."
Net sales increased 22.0% to $2.10 billion for the first quarter of 2012 compared to $1.72 billion for the same period in 2011. Sales from the Forrest City acquisition in May 2011 and the large retailer contract that commenced during the third quarter last year, contributed slightly more than 70% of this growth. Non-cigarette sales increased 29.8%, or 13.2% excluding the impact of the acquisition and the new contract.
Gross profit for the first quarter of 2012 was $110.1 million compared to $92.3 million for the same period last year, a 19.3% increase. The Forrest City business and the new contract contributed to the increase in gross profit year over year. Remaining gross profit, which excludes LIFO expense, cigarette holding gains and a tax refund from other tobacco products, increased at 19.7%. Non-cigarette remaining gross profit grew $12.0 million or 18.5% compared to the same quarter last year, and cigarette remaining gross profit per carton increased by four cents. The following table reconciles the components of gross profit.
The Company's operating expenses for the first quarter of 2012 were $104.0 million compared to $91.1 million in the same quarter of 2011. As a percentage of net sales, total operating expenses decreased 34 basis points driven by increased leverage on higher net sales.
Net income for the first quarter of 2012 was $3.6 million compared to $0.5 million for the same period in 2011. The improvement in net income was driven by strong revenue growth, increases in gross profit dollars and operating expense leverage. In addition, adjusted EBITDA increased from $10.5 million in the first quarter of 2011 to $16.7 million in the first quarter of 2012, the components of which are provided in the table below.
Diluted earnings per share were $0.31 for the first quarter this year compared to $0.04 in the first quarter of last year. These per share results 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 $0.39 for the first quarter in 2012 compared to $0.13 for the same quarter last year.
The Company reiterates its 2012 annual guidance of $9.0 billion net sales, adjusted EBITDA in the range of $102 million to $105 million and diluted earnings per share between $2.75 and $2.90. The EPS guidance assumes $0.72 per share of LIFO expense, or approximately $14 million, a tax rate of 40% and 11.6 million fully diluted shares outstanding.
Capital expenditures for 2012 are expected to approach $30 million, approximately half of which is expected to be for expansion projects and the remainder for maintenance investments.
Core-Mark will host an earnings call on Tuesday, May 8, 2012 at 9:00 a.m. Pacific time during which management will review the results of the first quarter. The call may be accessed by dialing 1-800-588-4973 using the code 32301878. 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.
This press release includes non-GAAP financial measures including adjusted diluted earnings per share, diluted earnings per share excluding LIFO expense, adjusted EBITDA 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 a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
Statements in this press release that are not statements of historical fact are forward-looking statements. These statements include statements regarding our guidance for 2012 net sales, adjusted EBITDA, diluted earnings per share, capital expenditures and related disclosures. 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. Forward-looking statements are made only as of the date of this press release and are based on our current intent, beliefs, plans and expectations. They involve risks and uncertainties that could cause actual future results, performance or developments to differ materially from those described in or implied by such forward-looking statements.
Factors that might cause or contribute to such differences include, but are not limited to, challenging economic conditions; our dependence on the convenience retail industry for our revenues; competition in our distribution markets; the dependence of some of our distribution centers on a few relatively large customers; gasoline and other price increases; the low-margin nature of cigarette and consumable goods distribution; our reliance on manufacturer discount and incentive programs and cigarette excise stamping allowances; our dependence on relatively few suppliers; risks and costs associated with efforts to grow our business through acquisitions; product liability claims and manufacturer recalls of products; unexpected outcomes in legal proceedings; our ability to achieve the expected benefits of implementation of marketing initiatives; failure or disruptions of our information technology systems; our dependence on our senior management; shortages of qualified labor; attempts by unions to organize our employees; declining cigarette sales volumes; legislation and other matters negatively affecting the cigarette and tobacco industry; increases in excise taxes or reduction in credit terms by taxing jurisdictions; potential liabilities associated with sales of cigarettes and other tobacco products; competition from sales of illicit and other low priced sales of cigarettes; changes in the funding of our pension plans; reduction in the payment of dividends; currency exchange rate fluctuations; our ability to borrow additional capital; changes to accounting rules or regulations; compliance with governmental regulations; and earthquake and natural disaster damage. Refer to the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC on March 8, 2012 and Part II, Item 1A, "Risk Factors" of any quarterly report on Form 10-Q subsequently filed by us for a more comprehensive discussion of these and other risk factors. Except as required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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 .
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Datum: 08.05.2012 - 06:30 Uhr
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