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CORE – Last year was one of positive momentum for Core-Mark

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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 fourth quarter and year ended December 31, 2011.

“Last year was one of positive momentum for Core-Mark, which will carry over into 2012. Vigorous revenue growth through both market share gains and a strategic acquisition positions the Company for continued progress,” said Michael Walsh, President and Chief Executive Officer of Core-Mark. “There are tremendous value-added opportunities ahead for us to help our convenience retailers grow their business and their profits. We never lose sight of this critical mission.”

Fourth Quarter


CORE Net sales increased 14.6% to $2.13 billion for the fourth quarter of 2011 compared to $1.86 billion for the same period in 2010. The largest contributors to this growth were sales generated from our new contract with a large retailer announced in July 2011 and the Company’s acquisition of Forrest City Grocery Company (FCGC) in May 2011.

CORE Gross profit for the fourth quarter of 2011 was $109.8 million compared to $94.3 million for the same period last year, a 16.5% increase. LIFO expense during the quarter decreased $3.0 million compared to the fourth quarter of 2010, while cigarette holding gains decreased $0.2 million. Remaining Gross Profit, which excludes inventory holding gains and LIFO expense, increased 12.7% driven by an $8.2 million increase in non-cigarette remaining gross profit and a $4.5 million, or two cent per carton increase in cigarette remaining gross profit. The FCGC acquisition and new contract with a large retailer were significant contributors to the increase in non-cigarette remaining gross profit dollars.

Highlights

  • CORE Full year 2011 revenue increased 11.7% to $8.1 billion; Fourth quarter increased 14.6%
  • CORE Full year 2011 diluted earnings per share (EPS) of $2.23 vs. $1.55 in 2010: increased 44%
  • CORE 2012 Guidance: Revenue approximately $9.0 billion and EPS range of $2.75 to $2.90

The Company’s operating expenses for the fourth quarter of 2011 were $101.1 million compared to $94.1 million in the same quarter in 2010. As a percentage of net sales, total operating expenses decreased 32 basis points driven primarily by increased leverage on higher net sales.

Net income for the fourth quarter of 2011 was $5.2 million compared to $0.9 million for the same period in 2010, driven primarily by strong revenue growth, gross profit increases and operating cost leverage. As provided in the table below, Adjusted EBITDA grew from $15.4 million in the fourth quarter of 2010 to $22.2 million in the fourth quarter of 2011. The growth in Adjusted EBITDA was driven primarily by new business from the FCGC acquisition and the new contract.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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