Core-Mark Announces Second Quarter 2013 Financial Results
(firmenpresse) - SOUTH SAN FRANCISCO, CA -- (Marketwired) -- 08/07/13 -- Core-Mark Holding Company, Inc. (NASDAQ: CORE)
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 second quarter ended June 30, 2013.
"This was a strong quarter where we generated solid sales momentum and are on pace to reach our 2013 goals. We are executing our key strategies well, growing our business at a healthy rate and investing in the relevant tools and services that our customers need to compete in the market place," said Thomas B. Perkins, President and Chief Executive Officer. "In the second quarter we saw a rebound in consumer demand from the first quarter reflecting the health of the industry and Core-Mark."
Net sales increased 9.7% to $2.51 billion for the second quarter of 2013 compared to $2.29 billion for the same period in 2012. Excluding excise taxes, net sales increased 11.9%. Cigarette cartons sales grew 7.6% while non-cigarette sales grew 13.7%. The increase in sales was driven primarily by our Carolina division, which we acquired in December 2012, and an increase in same-store non-cigarette sales.
Gross profit for the second quarter of 2013 was $137.0 million compared to $122.6 million in the second quarter of 2012. Remaining gross profit increased 10.6% to $136.8 million. Non-cigarette remaining gross profit grew 14.0% to $96.9 million, whereas cigarette remaining gross profit grew 2.8% to $39.9 million compared to the second quarter in 2012. The following table reconciles the components of remaining gross profit.
The Company's operating expenses for the second quarter of 2013 were $116.4 million compared to $104.8 million in the same quarter of 2012. Operating expenses as a percentage of sales increased six basis points due to a shift in mix toward the more profitable non-cigarette products, which have lower sales price points.
Net income for the second quarter of 2013 was $11.7 million compared to $10.1 million for the same period in 2012, a 15.8% increase. Adjusted EBITDA was $32.5 million in the second quarter of 2013 compared to $29.8 million in the second quarter of 2012, an increase of more than 9%. The components of Adjusted EBITDA are provided in the table below.
Diluted earnings per share were $1.01 for the second quarter this year compared to $0.87 in the second quarter of last year. Excluding LIFO expenses, diluted earnings per share were $1.20 in this quarter compared to $1.09 for the second quarter in 2012.
Net sales were $4.66 billion for the first six months of 2013 compared to $4.39 billion for the same period in 2012, a 6.1% increase despite one less selling day in 2013. The increase in sales was driven mainly by our Carolina division which we acquired in December of 2012. Improvements in non-cigarette same store sales, particularly in the second quarter, also contributed to the increase in net sales.
Gross profit for the first six months of 2013 was $253.0 million compared to $232.8 million for the same period last year. Remaining gross profit was $254.9 million in the first half of 2013 compared to $235.7 million in the first half of 2012, an increase of $19.2 million or 8.1%. The increase in remaining gross profit was driven by higher non-cigarette sales and corresponding margin growth of 16 basis points. The following table reconciles the components of gross profit.
The Company's operating expenses for the first half of 2013 increased to $227.3 million compared to $208.8 million in the first half of 2012, driven by the Carolina division acquisition. Operating expenses as a percentage of sales increased 12 basis points due primarily to a shift in mix toward the more profitable non-cigarette products, which have lower sales price points.
Net income for the first half of 2013 was $14.3 million compared to $13.7 million for the same period in 2012. In addition, Adjusted EBITDA increased from $46.6 million in the first half of 2012 to $48.4 million in the first half of 2013, components of which are provided in the table below.
Diluted earnings per share were $1.23 for the first half of this year compared to $1.18 in the first half of last year. Excluding LIFO expenses, diluted earnings per share were $1.57 compared to $1.54 for the first half of 2012. In addition, per share results were impacted by other items, which are reconciled in the attached diluted EPS table following the financial schedules.
The Company reaffirms its 2013 guidance. Annual net sales in 2013 are expected to be between $9.8 billion and $10.0 billion, a 10% to 12% increase compared to 2012. This expected growth is driven by incremental sales from our new Carolina division, market share gains including our Turkey Hill contract and other contracts, additional penetration into existing stores, and leveraging our vendor consolidation and focused marketing initiatives.
Adjusted EBITDA for 2013 is expected to be between $112 million and $115 million, an 11% to 14% increase over 2012 which includes some start-up and conversion costs associated with the new Carolina division. Diluted earnings per share for the full year are expected to be between $3.10 and $3.25 or between $3.90 and $4.05 excluding the impact of LIFO expense. For 2013 we are expecting approximately $16 million in LIFO expense, a 40% tax rate and 11.8 million fully diluted shares outstanding.
Capital expenditures for 2013 are expected not to exceed $30 million, which will be utilized for expansion projects and maintenance investments.
Core-Mark will host an earnings call on Wednesday, August 7, 2013 at 9:00 a.m. Pacific time during which management will review the results of the second quarter. The call may be accessed by dialing 1-800-588-4973 using the code 35282385. 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 provided above. 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 2013 net sales, Adjusted EBITDA, diluted earnings per share, LIFO expense, tax rates, outstanding shares of capital stock, 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, including direct distribution by manufacturers; 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, counterfeit product claims and manufacturer recalls of products; our ability to achieve the expected benefits of implementation of marketing initiatives; failure or disruptions of our information technology systems; unexpected outcomes in legal proceedings; our dependence on our senior management; shortages of qualified labor; attempts by unions to organize our employees; exposure to employee health benefit costs; compliance with governmental regulations; earthquake and natural disaster damage; exposure to insurance and claims expenses; 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 to federal, state or provincial income tax legislation; changes in the funding of our pension plans; reduction in the payment of dividends; currency exchange rate fluctuations; our ability to borrow additional capital, including any restrictions placed on our operations by such borrowings; and changes to accounting rules or regulations. Refer to the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 14, 2013 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 over 30,000 customer locations in the U.S. and Canada through 28 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: 07.08.2013 - 06:30 Uhr
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