Core-Mark Announces Third Quarter 2014 Financial Results, Increases Dividend
(firmenpresse) - SOUTH SAN FRANCISCO, CA -- (Marketwired) -- 11/06/14 -- 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 third quarter ended September 30, 2014.
"I am very pleased with our top and bottom line growth and the resulting increase in Adjusted EBITDA. It was also good to see the recent candy price increase," said Thomas B. Perkins, President and Chief Executive Officer. "Same store sales in our key categories continue to grow at a healthy pace indicating we are succeeding in the execution of our strategies in the market, setting a good foundation for the future."
Net sales increased 4.8% to $2.7 billion for the third quarter of 2014 compared to $2.6 billion for the same period in 2013. Excluding the impact of foreign currency fluctuations, net sales increased 5.5%. Sales growth was attributable to market share gains, the execution of our core strategies and inflation in cigarette prices, offset by a modest decline in carton sales. Non-cigarette sales grew 6.2% driven primarily by a 7.7% sales increase in our Food category compared with the third quarter last year. Cigarette sales grew 4.2% driven largely by cigarette price inflation and market share gains.
Gross profit for the third quarter of 2014 was $151.4 million compared to $140.8 million for the third quarter of 2013. Remaining gross profit increased 5.2% to $150.2 million. Non-cigarette remaining gross profit grew $7.6 million, or 7.6%, compared to the same quarter last year, while cigarette remaining gross profit was essentially flat. Non-cigarette remaining gross profit margin increased 16 basis points to 12.16% in the third quarter from 12.00% last year driven by sales growth in our Food category and a shift toward higher margin items due primarily to the continued success of our core strategies. The following table reconciles the components of gross profit.
The Company''s operating expenses for the third quarter of 2014 were $131.2 million compared to $121.3 million for the same quarter of 2013. As a percent of sales, operating expenses were 4.78% compared to 4.63% in the prior period. A shift in sales to our food/non-food categories, which resulted in a 4% increase in cubic feet of product handled during the third quarter this year, increased operating expenses as a percent of sales by approximately nine basis points. Operating expenses were also impacted by a $2.3 million increase in employee bonus expense and a $1.2 million increase in employee healthcare costs.
Net income for the third quarter of 2014 was $13.7 million compared to $12.3 million for the same period in 2013, an 11.4% increase. Adjusted EBITDA increased 22.5% to $36.5 million for the third quarter compared to $29.8 million in the third quarter of 2013. The components of Adjusted EBITDA are provided in the table below.
Diluted earnings per-share were $0.59 for the third quarter of 2014 compared to $0.53 for the third quarter of 2013. Excluding LIFO expenses, diluted earnings per-share increased 28.8% to $0.76 this year compared to $0.59 for the third quarter of 2013. Per-share results are reconciled for comparative purposes in the attached diluted EPS table following the financial schedules and have been adjusted to reflect the June 27, 2014 stock split.
Net sales increased 5.4% to $7.7 billion for the first nine months of 2014 compared to $7.3 billion for the same period in 2013. Excluding the impact of foreign currency fluctuations, net sales increased 6.3%. Sales growth was due primarily to market share gains and the successful execution of our core strategies. Non-cigarette sales increased 7.2%, while cigarette sales increased 4.6%.
Gross profit for the first nine months of 2014 increased $25.3 million, or 6.4%, to $419.1 million compared to $393.8 million for the same period during 2013. Remaining gross profit increased 5.9% to $421.2 million. Non-cigarette remaining gross profit increased $23.8 million, or 8.5% in the first nine months of 2014 compared to the same period last year while cigarette remaining gross profit was essentially flat. Non-cigarette remaining gross profit margin increased 14 basis points to 12.18% in the first nine months of 2014 from 12.04% for the same period last year. Excluding the impact of two major customers added in 2013, non-cigarette remaining gross profit margin increased 27 basis points driven by sales growth in our Food category and a shift toward higher margin items due primarily to the continued success of our core strategies. The following table reconciles the components of gross profit for the first nine months of 2013 and 2014.
The Company''s operating expenses for the first nine months of 2014 were $373.8 million compared to $348.6 million for the same period of 2013. As a percent of sales, operating expenses were 4.87% compared to 4.79% in the prior period. The majority of the increase in our expenses was in warehouse and distribution and is attributed to costs to support an approximate 7% increase in cubic feet of product shipped for the first nine months of 2014. The shift in sales to food/non-food categories increased operating expenses as a percent of sales by approximately 15 basis points. In addition, operating expenses for the first nine months of 2014 were impacted by a $2.5 million increase in employee bonus expense and higher health and welfare costs of $3.3 million.
Net income was $28.1 million for the first nine months of 2014 compared to $26.6 million for the same period in 2013. Adjusted EBITDA was $86.6 million for the first nine months of 2014 compared to $78.2 million in the same period of 2013. The components of Adjusted EBITDA are provided in the table below.
Diluted earnings per-share were $1.21 for the first nine months of 2014 compared to $1.15 for the same period in 2013. Excluding LIFO expenses, diluted earnings per-share were $1.57 the first nine months of 2014 compared to $1.38 for the first nine months of 2013. Per-share results are reconciled for comparative purposes in the attached diluted EPS table following the financial schedules.
Core Mark also announced today that its Board of Directors has approved a $0.13 cash dividend per common share, an increase of $0.02. The dividend is payable on December 22, 2014 to stockholders of record as of the close of business on November 28, 2014.
The third annual increase in our dividend reflects the Company''s continued financial strength and management''s commitment to returning value to our shareholders. The Company''s intention is to increase our dividend over time as long as we can create sufficient cash to do so without sacrificing foreseeable acquisitions, continuance of the share repurchase program or other investment opportunities to grow the business," said Thomas B. Perkins, President and Chief Executive Officer.
The Company expects its 2014 annual net sales to approach $10.4 billion which is the lower end of management''s original guidance. Net sales guidance assumes no new acquisitions.
The Company is reiterating its Adjusted EBITDA guidance range of $118 million to $122 million for 2014. Diluted earnings per-share for the full year is being revised to adjust for an increase in LIFO expense to $18.0 million from $15.0 million due primarily to expected increases in inflation. In addition, management now estimates an income tax rate of 37.5% for the year, down from its previous estimate of 39.0%. As a result of these changes, the Company now expects diluted earnings per share for the full year to be between $1.68 and $1.76. Diluted per-share estimates, excluding LIFO expense, are now between $2.17 and $2.25. Previous guidance for diluted earnings per share was $1.73 to $1.81 or, excluding LIFO expense, between $2.12 and $2.20. The Company reiterates its expectation of 23.3 million diluted shares outstanding for purposes of calculating dilutive per-share estimates.
The Company also reiterates its 2014 capital expenditures forecast of approximately $50 million.
Core-Mark will host an earnings call on Thursday, November 6, 2014 at 9:00 a.m. Pacific time during which management will review the results of the third quarter of 2014. The call may be accessed by dialing 800-588-4973 using the code 38339865. The call may also be listened to on the Company''s website .
An audio replay will be available for approximately one month 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 facilitate 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 2014 net sales, adjusted EBITDA, diluted earnings per share, diluted earnings per share excluding LIFO expense, expected number of outstanding shares on a diluted basis, 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, 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, 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; 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, as amended, for the year ended December 31, 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. The Company undertakes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
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 33,000 customer locations in the U.S. and Canada through 29 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 .
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 06.11.2014 - 07:30 Uhr
Sprache: Deutsch
News-ID 1316158
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
SOUTH SAN FRANCISCO, CA
Phone:
Kategorie:
Food
Anmerkungen:
Diese Pressemitteilung wurde bisher 103 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Core-Mark Announces Third Quarter 2014 Financial Results, Increases Dividend
"
steht unter der journalistisch-redaktionellen Verantwortung von
Core-Mark Holding Company, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
