Core-Mark Announces 2020 Fourth Quarter and Full Year Financial Results
Core-Mark Holding Company reported a Q4 2020 net sales increase of 2.3% to $4.3 billion and net income growth of 17.3% to $19.0 million. For the full year, net sales reached a record $17.0 billion, up 1.7%, with net income up 9.5% to $63.2 million. Core-Mark expects 2021 net sales between $17.2 billion and $17.5 billion and a new $375 million shareholder return plan. Adjusted EBITDA for Q4 was $55.1 million, and guidance for 2021 Adjusted EBITDA is $208 million to $218 million.
- Net sales increased 2.3% in Q4 2020 to $4.3 billion.
- Net income rose 17.3% Q4 2020 to $19.0 million.
- 2020 overall net sales hit a record $17.0 billion, up 1.7%.
- The company introduced a new $375 million shareholder return plan.
- Adjusted EBITDA increased 14.1% in Q4 to $55.1 million.
- 2021 net sales guidance is $17.2 billion to $17.5 billion.
- Gross profit decreased 3.8% in Q4 to $221.8 million.
- Gross profit margin declined to 5.22% from 5.55% in Q4 2019.
- Non-cigarette sales decreased 1.8% in Q4, with notable declines in food and candy.
- 2021 guidance assumes $28 million in cigarette inventory holding gains, lower than 2020.
Fourth Quarter 2020 Key Metrics
- Net Sales increased
2.3% to$4.3 Billion - Net Income increased
17.3% to$19.0 Million - Adjusted EBITDA (Non-GAAP)(1) increased
14.1% to$55.1 Million
2020 Full Year Key Metrics
- Net Sales increased
1.7% to a record$17.0 Billion - Net Income increased
9.5% to a record$63.2 Million - Adjusted EBITDA (Non-GAAP)(1) increased
6.0% to a record$202.2 Million
2021 Full Year Guidance
- Net Sales expected to be between
$17.2 Billion and$17.5 Billion - Adjusted EBITDA (Non-GAAP)(1) expected to be between
$208 Million and$218 Million - Board approves a new 3-year,
$375 million shareholder return plan
WESTLAKE, Texas, March 01, 2021 (GLOBE NEWSWIRE) -- Core-Mark Holding Company, Inc. (NASDAQ: CORE), one of the largest marketers of fresh, food 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, 2020.
“2020 truly demonstrated the Company’s resilience as we delivered record levels of sales and earnings by taking decisive actions to manage costs while continuing to execute on our strategic priorities. Our success this year wouldn’t have been attainable without the incredible commitment from our Core-Mark family, our customers and vendors,” said Scott E. McPherson, President and Chief Executive Officer. “Our fourth quarter and full year outperformance demonstrates our momentum heading into 2021 as reflected by our guidance and outlook on capital allocation.”
Mr. McPherson continued, “As we enter 2021 with a strong balance sheet and a growing business, our board has carefully mapped out our three-year capital allocation priorities. First, we will continue to reinvest in our business through a disciplined approach to maintenance and growth capital. We will return value to our shareholders through a three-year shareholder return plan focused on more aggressive share buy-backs and continued growth in our dividend. Within our balanced approach to capital allocation, we have been careful to leave sufficient availability to pursue meaningful acquisition opportunities while remaining within our target leverage threshold. To summarize, I am confident in the momentum of the Company and the steps we are taking to enhance value for our shareholders.”
____________________
(1) See the reconciliation of Adjusted EBITDA (Non-GAAP) to Net Income (U.S. GAAP) in the tables below. See the reconciliation of Diluted EPS excluding LIFO (Non-GAAP) to Diluted Earnings Per Share (U.S. GAAP) in “Supplemental Schedule for Items Impacting Diluted EPS.”
Fourth Quarter Results
Net sales increased
Gross profit in the fourth quarter of 2020 decreased
Gross profit margin for the fourth quarter was
The following table reconciles remaining gross profit to gross profit, its most directly comparable financial measure under U.S. GAAP:
| RECONCILIATION OF REMAINING GROSS PROFIT (NON-GAAP) TO GROSS PROFIT (U.S. GAAP) | |||||||||||||||||||||
| (Unaudited and $ in millions) | |||||||||||||||||||||
| For the Three Months Ended December 31, | |||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||
| Amounts | % of Net Sales | Amounts | % of Net Sales | % Change | |||||||||||||||||
| Gross profit | $ | 221.8 | 5.22 | % | $ | 230.5 | 5.55 | % | (3.8 | ) | % | ||||||||||
| Cigarette inventory holding gains | (9.4 | ) | (0.22 | ) | % | (10.1 | ) | (0.24 | ) | % | |||||||||||
| Candy inventory holding gains | — | — | % | (1.1 | ) | (0.03 | ) | % | |||||||||||||
| LIFO expense | 9.2 | 0.21 | % | 5.9 | 0.14 | % | |||||||||||||||
| Remaining gross profit | $ | 221.6 | 5.21 | % | $ | 225.2 | 5.42 | % | (1.6 | ) | % | ||||||||||
The Company’s operating expenses decreased
Net income increased
The following table reconciles Adjusted EBITDA to net income, its most directly comparable financial measure under U.S. GAAP:
| RECONCILIATION OF ADJUSTED EBITDA (NON-GAAP) TO NET INCOME (U.S. GAAP) | ||||||||||
| (Unaudited and $ in millions) | ||||||||||
| For the Three Months Ended December 31, | ||||||||||
| 2020 | 2019 | % Change | ||||||||
| Net income | $ | 19.0 | $ | 16.2 | 17.3 | % | ||||
| Interest expense, net(1) | 2.1 | 3.6 | ||||||||
| Provision for income taxes | 3.4 | 4.6 | ||||||||
| Depreciation & amortization | 17.7 | 15.1 | ||||||||
| LIFO expense | 9.2 | 5.9 | ||||||||
| Stock-based compensation expense | 3.5 | 2.4 | ||||||||
| Foreign currency transaction losses, net | 0.2 | 0.5 | ||||||||
| Adjusted EBITDA | $ | 55.1 | $ | 48.3 | 14.1 | % | ||||
| Note (1): Interest expense, net, is reported net of interest income. | ||||||||||
Diluted earnings per-share (EPS) was
2020 Full Year Results
Net sales increased
Gross profit in 2020 decreased
Gross profit margin decreased 30 basis points to
The following table reconciles remaining gross profit to gross profit, its most directly comparable financial measure under U.S. GAAP:
| RECONCILIATION OF REMAINING GROSS PROFIT (NON-GAAP) TO GROSS PROFIT (U.S. GAAP) | |||||||||||||||||||||
| (Unaudited and $ in millions) | |||||||||||||||||||||
| For the Twelve Months Ended December 31, | |||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||
| Amounts | % of Net Sales | Amounts | % of Net Sales | % Change | |||||||||||||||||
| Gross profit | $ | 888.3 | 5.24 | % | $ | 924.2 | 5.54 | % | (3.9 | ) | % | ||||||||||
| Cigarette inventory holding gains | (31.8 | ) | (0.19 | ) | % | (23.0 | ) | (0.14 | ) | % | |||||||||||
| Candy inventory holding gains | — | — | % | (6.9 | ) | (0.04 | ) | % | |||||||||||||
| LIFO expense | 30.7 | 0.18 | % | 27.6 | 0.17 | % | |||||||||||||||
| Remaining gross profit | $ | 887.2 | 5.23 | % | $ | 921.9 | 5.53 | % | (3.8 | ) | % | ||||||||||
The Company’s operating expenses decreased
Net income increased
The following table reconciles Adjusted EBITDA to net income, its most directly comparable financial measure under U.S. GAAP:
| RECONCILIATION OF ADJUSTED EBITDA (NON-GAAP) TO NET INCOME (U.S. GAAP) | |||||||||||
| (Unaudited and $ in millions) | |||||||||||
| For the Twelve Months Ended December 31, | |||||||||||
| 2020 | 2019 | % Change | |||||||||
| Net income | $ | 63.2 | $ | 57.7 | 9.5 | % | |||||
| Interest expense, net(1) | 10.5 | 14.4 | |||||||||
| Provision for income taxes | 20.1 | 19.7 | |||||||||
| Depreciation & amortization | 66.6 | 60.9 | |||||||||
| LIFO expense | 30.7 | 27.6 | |||||||||
| Stock-based compensation expense | 10.2 | 9.6 | |||||||||
| Foreign currency transaction losses, net | 0.9 | 0.8 | |||||||||
| Adjusted EBITDA | $ | 202.2 | $ | 190.7 | 6.0 | % | |||||
| Note (1): Interest expense, net, is reported net of interest income. | |||||||||||
Diluted EPS was
Balance Sheet and Liquidity
The outstanding balance on the revolving credit facility (“Credit Facility”) was
Dividend
Core-Mark also announced today that its Board of Directors has declared a cash dividend of
Shareholder Return Plan
Core-Mark’s Board of Directors approved a new three-year,
2021 Full Year Guidance
The Company expects 2021 net sales to be between
This guidance assumes
Diluted EPS for the full year is expected to be between
Capital Allocation Strategy
The Company remains committed to using its strong balance sheet to drive growth organically and through acquisitions while returning capital to shareholders through share repurchases and dividends. Core-Mark’s three-year capital allocation strategy is as follows:
- Reinvestment in the Business: Core-Mark will maintain a disciplined approach to maintenance and growth capital in support of its strategic priorities which is expected to be in the range of
$30 t o$50 million annually.
- Return of Capital to Shareholders: The Company expects to continue to return value to shareholders through a more aggressive three-year,
$375 million shareholder return plan focused on increases in our share buy-backs and growth in our dividend.
- Pursue Strategic Acquisitions: The Company has sufficient availability and a strong balance sheet to capitalize on meaningful acquisition opportunities while executing on the targeted return to shareholders. The Company targets maintaining a financial leverage ratio of 2.5x or below, subject to a temporary increase of up to 3.5x in support of acquisitions.
Conference Call and Webcast Information
Core-Mark will host an earnings call on Monday, March 1, 2021 at 8:00 a.m. Central time, during which management will review the results of the fourth quarter and full year. The call may be accessed by dialing 1-800-588-4973 using the code 50101500. The call may also be listened to on the Company’s website www.core-mark.com.
An audio replay will be available via webcast at www.core-mark.com for approximately 90 days following the call.
Core-Mark
Core-Mark is one of the largest marketers of fresh, food 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 40,000 customer locations in the U.S. and Canada through 32 distribution centers (excluding two distribution facilities the Company operates as a third-party logistics provider). Core-Mark services traditional convenience retailers, drug stores, box or supercenter stores, grocery stores, liquor stores and other specialty and small format stores that carry convenience products. For more information, please visit www.core-mark.com.
Contact: David Lawrence, Vice President of Treasury and Investor Relations, 1-800-622-1713 x 7923 or david.lawrence@core-mark.com
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures including diluted EPS excluding LIFO expense, Adjusted EBITDA, remaining gross profit, remaining gross profit margin, and operating expenses as a percentage of 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. We also believe these measures allow investors to view results in a manner similar to the method used by our management. 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. These measures may be defined differently than other companies and therefore such measures used by other companies may not be comparable to ours. We strongly encourage investors and stockholders to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Adjusted EBITDA is a measure used by management to measure operating performance. We believe Adjusted EBITDA is also one of the primary measures used externally by our investors, analysts and peers in our industry for purposes of valuation and comparing our results to other companies. Adjusted EBITDA is equal to net income adding back net interest expense, provision (benefit) for income taxes, depreciation and amortization, LIFO expense, stock-based compensation expense, and net foreign currency transaction gains or losses.
Free Cash Flow is a measure used by management to measure operating performance. We believe Free Cash Flow is also one of the primary measures used externally by our investors, analysts and peers in our industry for purposes of valuation and comparing our results to other companies. Free Cash Flow is equal to net cash provided by operating activities less additions to property, plant and equipment and capitalization of software and related development costs.
Diluted EPS excluding LIFO expense is a measure used by us to measure financial performance. We believe Diluted EPS is also one of the primary measures used externally by our investors, analysts and peers in our industry for purposes of valuation and comparing our results to other companies. Remaining gross profit and remaining gross profit margin are non-GAAP financial measures. We provide these metrics to segregate the effects of LIFO expense, cigarette and candy inventory holding gains and other items that significantly affect the comparability of gross profit. Operating expenses as a percentage of remaining gross profit is a non-GAAP financial measure used by us to measure operating leverage.
We do not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “2021 Full Year Guidance” above) where we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure, which have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
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.
Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements made pursuant to the safe-harbor provisions of the Exchange Act of 1934 and the Securities Act of 1933. These statements include statements regarding our guidance for 2021 net sales, Adjusted EBITDA, diluted earnings per share, diluted earnings per share excluding LIFO expense, 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 historical results or those described in or implied by such forward-looking statements.
Factors that may cause or contribute to such differences include, but are not limited to, declining cigarette sales volumes; our dependence on the convenience retail industry for our revenues; our dependence on qualified labor, our senior management and other key personnel; competition in our distribution markets; risks and costs associated with efforts to grow our business through acquisitions; the dependence of some of our distribution centers on a few relatively large customers; manufacturers or retail customers adopting direct distribution channels; fuel and other transportation costs; failure, disruptions or security breaches of our information technology systems; 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; product liability and counterfeit product claims and manufacturer recalls of products; our ability to achieve the expected benefits of implementation of marketing initiatives; failing to maintain our brand and reputation; unexpected outcomes in legal proceedings; attempts by unions to organize our employees; increasing expenses related to employee health benefits; changes to minimum wage laws; failure to comply with governmental regulations or substantial changes to governmental regulations; earthquake and natural disaster damage; increases in the number or severity of insurance and claims expenses; legislation, regulations and other matters negatively affecting the cigarette, tobacco and alternative nicotine 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; reduction in the payment of dividends; currency exchange rate fluctuations; our ability to borrow additional capital; restrictive covenants in our Credit Facility; 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, 2020 filed with the SEC on March 1, 2021 and Part II, Item 1A, “Risk Factors” of any quarterly report on Form 10-Q for a more comprehensive discussion of these and other risk factors. In addition, please note that the date of this press release is March 1, 2021, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. 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 HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (In millions, except share and per share data) | |||||||||
| (Unaudited) | |||||||||
| December 31, | |||||||||
| 2020 | 2019 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 22.8 | $ | 14.1 | |||||
| Accounts receivable, net of allowance for doubtful accounts of December 31, 2020 and December 31, 2019, respectively | 362.6 | 402.9 | |||||||
| Other receivables, net | 105.5 | 96.2 | |||||||
| Inventories, net | 758.5 | 670.9 | |||||||
| Deposits and prepayments | 87.8 | 116.0 | |||||||
| Total current assets | 1,337.2 | 1,300.1 | |||||||
| Property and equipment, net | 276.0 | 249.9 | |||||||
| Operating lease right-of-use assets | 203.6 | 199.8 | |||||||
| Goodwill | 72.8 | 72.8 | |||||||
| Other intangible assets, net | 40.7 | 47.2 | |||||||
| Other non-current assets, net | 24.4 | 28.6 | |||||||
| Total assets | $ | 1,954.7 | $ | 1,898.4 | |||||
| Liabilities and Stockholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 190.9 | $ | 192.2 | |||||
| Book overdrafts | 31.1 | 23.9 | |||||||
| Cigarette and tobacco taxes payable | 302.9 | 280.1 | |||||||
| Operating lease liabilities | 32.9 | 39.5 | |||||||
| Accrued liabilities | 188.0 | 151.0 | |||||||
| Total current liabilities | 745.8 | 686.7 | |||||||
| Long-term debt | 344.5 | 382.1 | |||||||
| Deferred income taxes | 2.1 | 22.6 | |||||||
| Long-term operating lease liabilities | 179.7 | 173.4 | |||||||
| Other long-term liabilities | 12.5 | 5.6 | |||||||
| Claims liabilities | 38.2 | 36.1 | |||||||
| Total liabilities | 1,322.8 | 1,306.5 | |||||||
| Stockholders’ equity: | |||||||||
| Common stock, | 0.5 | 0.5 | |||||||
| Additional paid-in capital | 298.3 | 290.6 | |||||||
| Treasury stock at cost (7,996,800 and 7,588,829 shares of common stock at December 31, 2020 and 2019, respectively) | (123.0 | ) | (112.6 | ) | |||||
| Retained earnings | 459.7 | 418.5 | |||||||
| Accumulated other comprehensive loss | (3.6 | ) | (5.1 | ) | |||||
| Total stockholders’ equity | 631.9 | 591.9 | |||||||
| Total liabilities and stockholders’ equity | $ | 1,954.7 | $ | 1,898.4 | |||||
| CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| Net sales | $ | 4,252.1 | $ | 4,154.8 | $ | 16,957.9 | $ | 16,670.5 | |||||||||||
| Cost of goods sold | 4,030.3 | 3,924.3 | 16,069.6 | 15,746.3 | |||||||||||||||
| Gross profit | 221.8 | 230.5 | 888.3 | 924.2 | |||||||||||||||
| Warehousing and distribution expenses | 133.4 | 140.2 | 541.7 | 566.2 | |||||||||||||||
| Selling, general and administrative expenses | 61.2 | 63.1 | 242.2 | 255.4 | |||||||||||||||
| Amortization of intangible assets | 2.5 | 2.3 | 9.7 | 10.0 | |||||||||||||||
| Total operating expenses | 197.1 | 205.6 | 793.6 | 831.6 | |||||||||||||||
| Income from operations | 24.7 | 24.9 | 94.7 | 92.6 | |||||||||||||||
| Interest expense, net | (2.1 | ) | (3.6 | ) | (10.5 | ) | (14.4 | ) | |||||||||||
| Foreign currency transaction losses, net | (0.2 | ) | (0.5 | ) | (0.9 | ) | (0.8 | ) | |||||||||||
| Income before income taxes | 22.4 | 20.8 | 83.3 | 77.4 | |||||||||||||||
| Provision for income taxes | (3.4 | ) | (4.6 | ) | (20.1 | ) | (19.7 | ) | |||||||||||
| Net income | $ | 19.0 | $ | 16.2 | $ | 63.2 | $ | 57.7 | |||||||||||
| Earnings per share: | |||||||||||||||||||
| Basic(1) | $ | 0.42 | $ | 0.35 | $ | 1.40 | $ | 1.26 | |||||||||||
| Diluted(1) | $ | 0.42 | $ | 0.35 | $ | 1.39 | $ | 1.25 | |||||||||||
| Weighted-average shares outstanding: | |||||||||||||||||||
| Basic(1) | 44.9 | 45.7 | 45.1 | 45.7 | |||||||||||||||
| Diluted(1) | 45.4 | 46.0 | 45.4 | 46.0 | |||||||||||||||
| (1) Basic and diluted earnings per share are calculated based on unrounded actual amounts. | |||||||||||||||||||
| CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (In millions) | |||||||||
| (Unaudited) | |||||||||
| Twelve Months Ended | |||||||||
| December 31, | |||||||||
| 2020 | 2019 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 63.2 | $ | 57.7 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| LIFO and inventory provisions | 34.2 | 27.7 | |||||||
| Amortization of debt issuance costs | 0.8 | 0.8 | |||||||
| Stock-based compensation expense | 10.2 | 9.6 | |||||||
| Credit loss expense, net | 7.6 | 7.1 | |||||||
| Impairment charge and other | 0.6 | — | |||||||
| Loss on disposals | 0.4 | — | |||||||
| Depreciation and amortization | 66.6 | 60.9 | |||||||
| Foreign currency transaction losses | 0.9 | 0.8 | |||||||
| Deferred income taxes | (20.5 | ) | (4.7 | ) | |||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable, net | 33.1 | (5.2 | ) | ||||||
| Other receivables, net | (9.0 | ) | (6.2 | ) | |||||
| Inventories, net | (119.8 | ) | (5.0 | ) | |||||
| Deposits, prepayments and other non-current assets | 20.2 | (42.9 | ) | ||||||
| Accounts payable | (1.2 | ) | (8.6 | ) | |||||
| Cigarette and tobacco taxes payable | 21.5 | (20.0 | ) | ||||||
| Claims, accrued and other long-term liabilities | 39.0 | 17.7 | |||||||
| Net cash provided by operating activities | 147.8 | 89.7 | |||||||
| Cash flows from investing activities: | |||||||||
| Acquisition of business, net of cash acquired | — | (2.5 | ) | ||||||
| Additions to property and equipment, net | (27.2 | ) | (22.8 | ) | |||||
| Capitalization of software and related development costs | (3.5 | ) | (6.0 | ) | |||||
| Proceeds from sale of property and equipment | — | 0.3 | |||||||
| Net cash used in investing activities | (29.6 | ) | (31.0 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Borrowings under revolving credit facility | 1,817.1 | 1,692.6 | |||||||
| Repayments under revolving credit facility | (1,883.9 | ) | (1,687.8 | ) | |||||
| Payments of finance leases | (13.1 | ) | (5.6 | ) | |||||
| Dividends paid | (22.3 | ) | (20.7 | ) | |||||
| Repurchases of common stock | (10.4 | ) | (22.0 | ) | |||||
| Tax withholdings related to net share settlements of restricted stock units | (2.5 | ) | (2.2 | ) | |||||
| Increase (Decrease) in book overdrafts, net | 7.2 | (25.5 | ) | ||||||
| Net cash used in financing activities | (107.9 | ) | (71.2 | ) | |||||
| Effects of changes in foreign exchange rates | (1.6 | ) | (0.7 | ) | |||||
| Change in cash and cash equivalents | 8.7 | (13.2 | ) | ||||||
| Cash and cash equivalents, beginning of period | 14.1 | 27.3 | |||||||
| Cash and cash equivalents, end of period | $ | 22.8 | $ | 14.1 | |||||
| Supplemental disclosures: | |||||||||
| Cash received (paid) during the period for: | |||||||||
| Income taxes, net | $ | (29.8 | ) | $ | (18.7 | ) | |||
| Interest paid | $ | (6.2 | ) | $ | (12.0 | ) | |||
| Non-cash transactions between other non-current assets and other long-term liabilities | $ | — | $ | 4.7 | |||||
| CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| RECONCILIATION OF DILUTED EARNINGS PER SHARE EXCLUDING LIFO EXPENSE (NON-GAAP) to DILUTED EARNINGS PER SHARE (U.S. GAAP) AND | ||||||||||||||||||||||||||
| SUPPLEMENTAL SCHEDULE FOR ITEMS IMPACTING DILUTED EPS | ||||||||||||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
| 2020(a)(b) | 2019(a)(b) | % Change | 2020(a)(b) | 2019(a)(b) | % Change | |||||||||||||||||||||
| Net income | $ | 19.0 | $ | 16.2 | 17.3 | % | $ | 63.2 | $ | 57.7 | 9.5 | % | ||||||||||||||
| Diluted shares | 45.4 | 46.0 | 45.4 | 46.0 | ||||||||||||||||||||||
| Diluted EPS | $ | 0.42 | $ | 0.35 | 20.0 | % | $ | 1.39 | $ | 1.25 | 11.2 | % | ||||||||||||||
| LIFO expense | 0.15 | 0.10 | 0.50 | 0.44 | ||||||||||||||||||||||
| Diluted EPS excluding LIFO expense | $ | 0.57 | $ | 0.45 | 26.7 | % | $ | 1.89 | $ | 1.69 | 11.8 | % | ||||||||||||||
| Additional Items Impacting Diluted EPS: | ||||||||||||||||||||||||||
| Cigarette inventory holding gains(1) | 0.16 | 0.17 | 0.52 | 0.37 | ||||||||||||||||||||||
| Candy inventory holding gains (2) | — | 0.02 | — | 0.11 | ||||||||||||||||||||||
| Headquarters relocation expenses(3) | — | — | — | (0.05 | ) | |||||||||||||||||||||
| Legacy bad debt expense(4) | — | — | — | (0.03 | ) | |||||||||||||||||||||
| Foreign exchange losses(5) | — | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||||||||
| (a) Amounts and percentages have been rounded for presentation purposes and may differ from unrounded results. (b) The per share impacts of the above items were calculated using a tax rate of | ||||||||||||||||||||||||||
| (1) Cigarette inventory holding gains | ||||||||||||||||||||||||||
| Cigarette inventory holding gains were | ||||||||||||||||||||||||||
| (2) Candy inventory holding gains | ||||||||||||||||||||||||||
| Candy inventory holding gains were | ||||||||||||||||||||||||||
| (3) Headquarters relocation expenses | ||||||||||||||||||||||||||
| In connection with the Company's headquarters relocation, the Company recognized expenses of | ||||||||||||||||||||||||||
| (4) Legacy bad debt expense | ||||||||||||||||||||||||||
| For the twelve months ended December 31, 2019, a bad debt reserve of | ||||||||||||||||||||||||||
| (5) Foreign exchange losses | ||||||||||||||||||||||||||
| Foreign exchange losses were | ||||||||||||||||||||||||||
| CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| RECONCILIATION OF OPERATING EXPENSES AS A PERCENTAGE OF REMAINING GROSS PROFIT (NON-GAAP) | ||||||||||||||||||||
| (In millions, except percentages) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
| Gross profit | $ | 221.8 | $ | 230.5 | $ | 888.3 | $ | 924.2 | ||||||||||||
| Cigarette inventory holding gains | (9.4 | ) | (10.1 | ) | (31.8 | ) | (23.0 | ) | ||||||||||||
| Candy inventory holding gains | — | (1.1 | ) | — | (6.9 | ) | ||||||||||||||
| LIFO expense | 9.2 | 5.9 | 30.7 | 27.6 | ||||||||||||||||
| Remaining gross profit (non-GAAP) | $ | 221.6 | $ | 225.2 | $ | 887.2 | $ | 921.9 | ||||||||||||
| Warehousing and distribution expenses | $ | 133.4 | $ | 140.2 | $ | 541.7 | $ | 566.2 | ||||||||||||
| Selling, general and administrative expenses | 61.2 | 63.1 | 242.2 | 255.4 | ||||||||||||||||
| Amortization of intangible assets | 2.5 | 2.3 | 9.7 | 10.0 | ||||||||||||||||
| Total operating expenses | $ | 197.1 | $ | 205.6 | $ | 793.6 | $ | 831.6 | ||||||||||||
| Warehouse and distribution expenses as a percentage of remaining gross profit (non-GAAP) | 60.2 | % | 62.3 | % | 61.1 | % | 61.4 | % | ||||||||||||
| Selling, general and administrative expenses as a percentage of remaining gross profit (non-GAAP) | 27.6 | % | 28.0 | % | 27.3 | % | 27.7 | % | ||||||||||||
| Amortization of intangible assets as a percentage of remaining gross profit (non-GAAP) | 1.1 | % | 1.0 | % | 1.1 | % | 1.1 | % | ||||||||||||
| Total operating expenses as a percentage of remaining gross profit (non-GAAP) | 88.9 | % | 91.3 | % | 89.4 | % | 90.2 | % | ||||||||||||
RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited and in millions)
| Year Ended December 31, | |||||||||
| 2020 | 2019 | ||||||||
| Net cash provided by operating activities | $ | 147.8 | $ | 89.7 | |||||
| Additions to property and equipment, net | (27.2 | ) | (22.8 | ) | |||||
| Capitalization of software and related development costs | (3.5 | ) | (6.0 | ) | |||||
| Free Cash Flow (non-GAAP) | $ | 117.1 | $ | 60.9 | |||||
FAQ
What were Core-Mark's Q4 2020 financial results?
What is the guidance for Core-Mark's 2021 net sales?
What is Core-Mark's shareholder return plan?
How much did Core-Mark's adjusted EBITDA increase in Q4 2020?
What were the overall net sales for Core-Mark in 2020?
