- Record Second Quarter Sales of $3.7 Billion
- Total Non-Cigarette Sales Increased 15.9%, Fresh Sales Increased 14.6%
- Diluted EPS Increased 20.7% to $0.35 per share post stock split
- Announced $0.08 Dividend Payable September 15, 2016
- Company Reaffirms Guidance for 2016
SOUTH SAN FRANCISCO, Calif., Aug. 09, 2016 (GLOBE NEWSWIRE) -- Core-Mark Holding Company, Inc. (NASDAQ:CORE) ("the Company"), 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, 2016.
"We have grown at a remarkable pace in the first six months of 2016, and I am very proud of the accomplishments of this organization. We are well positioned to post record financial results this year. We remain focused on the absorption of the business added thus far and the business we will be adding later this year." said Thomas B. Perkins, President and Chief Executive Officer.
Second Quarter Results
Net sales increased 31.2% to $3.7 billion for the second quarter of 2016 compared to $2.8 billion for the same period in 2015 driven primarily by sales to Murphy U.S.A., which the Company began servicing in the first quarter of 2016, other market share wins and the acquisition of Pine State Convenience (Pine State). Excluding the effects of foreign currency fluctuations, net sales increased by approximately 31.9%. Cigarette sales increased 38.5%, driven by an increase in cigarette carton sales attributable primarily to market share gains. Non-cigarette sales increased 15.9% through market share gains and the success of our core strategies with new and existing customers. Cigarettes as a percentage of total sales were 71.4% for the second quarter this year compared to 67.6% for the same period last year; the increase was driven largely by our sales to Murphy U.S.A.
Gross profit increased 18.3% to $187.9 million for the second quarter of 2016 compared to $158.9 million for the same period in 2015. Remaining gross profit, a non-GAAP measure, increased 16.6% to $183.8 million from $157.7 million for the same period in 2015.
The following table reconciles remaining gross profit to gross profit, its most comparable financial measure under U.S. GAAP:
| RECONCILIATION OF GROSS PROFIT TO REMAINING GROSS PROFIT | ||||||||||||||
| (Unaudited and $ in millions) | ||||||||||||||
| For the Three Months Ended June 30, | ||||||||||||||
| 2016 | 2015 | |||||||||||||
| Amounts | % of Net Sales | Amounts | % of Net Sales | % Change | ||||||||||
| Gross profit | $ | 187.9 | 5.1 | % | $ | 158.9 | 5.7 | % | 18.3 | % | ||||
| Cigarette inventory holding gains | (7.0 | ) | (0.2 | )% | (3.8 | ) | (0.1 | )% | ||||||
| OTP tax refunds | — | — | (0.9 | ) | — | % | ||||||||
| LIFO expense | 2.9 | 0.1 | % | 3.5 | 0.1 | % | ||||||||
| Remaining gross profit | $ | 183.8 | 5.0 | % | $ | 157.7 | 5.6 | % | 16.6 | % | ||||
Remaining gross profit margin for the second quarter of 2016 declined approximately 60 basis points to 5.0% from 5.6% for the same period last year. The margin compression was due primarily to the growth in our cigarette and other tobacco products (OTP) from the addition of Murphy U.S.A. and other market share gains.
The Company’s operating expenses for the second quarter of 2016 were $160.2 million compared to $136.7 million for the same period in 2015. Increased volumes of product handled, incremental customer deliveries and the addition of Pine State, contributed to higher operating expenses in the second quarter of 2016. Operating expenses as a percentage of net sales were 4.3% for the second quarter of 2016 compared to 4.9% for the second quarter of 2015. The shift in sales mix towards cigarettes in the second quarter this year reduced operating expenses as a percentage of total net sales by approximately 60 basis points.
Net income increased 23.5% to $16.3 million for the second quarter of 2016 compared to $13.2 million for the same period in 2015. Adjusted EBITDA, a non-GAAP measure, increased 13.3% to $42.5 million for the second quarter of 2016 compared to $37.5 million for the second quarter of 2015.
The following table reconciles Adjusted EBITDA to net income, its most comparable financial measure under U.S. GAAP (in millions):
| RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | ||||||||||
| (Unaudited and $ in millions) | ||||||||||
| For the Three Months | ||||||||||
| Ended June 30, | ||||||||||
| 2016 | 2015 | % Change | ||||||||
| Net income | $ | 16.3 | $ | 13.2 | 23.5 | % | ||||
| Interest expense, net (1) | 1.0 | 0.6 | ||||||||
| Provision for income taxes | 10.1 | 8.2 | ||||||||
| Depreciation & amortization | 10.2 | 9.7 | ||||||||
| LIFO expense | 2.9 | 3.5 | ||||||||
| Stock-based compensation expense | 1.7 | 2.1 | ||||||||
| Foreign currency transaction losses, net | 0.3 | 0.2 | ||||||||
| Adjusted EBITDA | $ | 42.5 | $ | 37.5 | 13.3 | % | ||||
______________________________________________
(1) Interest expense, net, is reported net of interest income.
Diluted Earnings Per Share (diluted EPS) were $0.35 for the second quarter of 2016 compared to $0.29 for the second quarter of 2015. Excluding LIFO expenses, diluted EPS were $0.39 for the second quarter of 2016 compared to $0.33 for the second quarter of 2015. In addition, per share results were impacted by several other items, which are provided in the attached diluted EPS table following the financial schedules.
First Six Months of 2016
Net sales increased 27.3% to $6.7 billion for the first six months of 2016 compared to $5.3 billion for the same period in 2015 driven primarily by sales to Murphy U.S.A., other recent market share wins and the acquisition of Pine State. Fluctuations in foreign currency rates reduced net sales by approximately 0.9%, offset by one additional selling day in 2016. Cigarette sales increased 33.9%, driven by an increase in cigarette cartons sales attributable primarily to market share gains. Non-cigarette sales increased 13.7% through market share gains and the success of our core strategies with new and existing customers. Cigarettes as a percentage of total sales were approximately 71% for 2016 compared to approximately 67% for the same period last year, the increase was driven largely by our sales to Murphy U.S.A.
Gross profit increased 14.4% to $339.0 million for the first six months of 2016 compared to $296.2 million for the same period in 2015. Remaining gross profit increased 14.1% to $337.3 million from $295.5 million for the same period in 2015.
The following table reconciles remaining gross profit to gross profit, its most comparable financial measure under U.S. GAAP:
| RECONCILIATION OF GROSS PROFIT TO REMAINING GROSS PROFIT | ||||||||||||||
| (Unaudited and $ in millions) | ||||||||||||||
| For the Six Months Ended June 30, | ||||||||||||||
| 2016 | 2015 | |||||||||||||
| Amounts | % of Net Sales | Amounts | % of Net Sales | % Change | ||||||||||
| Gross profit | $ | 339.0 | 5.1 | % | $ | 296.2 | 5.6 | % | 14.4 | % | ||||
| Cigarette inventory holding gains | (8.0 | ) | (0.1 | )% | (4.8 | ) | (0.1 | )% | ||||||
| OTP tax refunds | — | — | % | (1.8 | ) | — | % | |||||||
| LIFO expense | 6.3 | 0.1 | % | 5.9 | 0.1 | % | ||||||||
| Remaining gross profit | $ | 337.3 | 5.0 | % | $ | 295.5 | 5.6 | % | 14.1 | % | ||||
Remaining gross profit margin for the second quarter of 2016 declined approximately 60 basis points to 5.0% from 5.6% for the same period last year. The decline was due primarily to the addition of Murphy U.S.A. and other market share gains which have a higher sales mix of cigarettes and OTP compared to most of our other customers.
The Company’s operating expenses for the first half of 2016 were $302.1 million compared to $264.1 million for the same period in 2015. Increased volumes of product handled, incremental customer deliveries and the addition of Pine State, contributed to higher operating expenses in the first half of 2016. Operating expenses as a percentage of net sales were 4.5% for the first half of 2016 compared to 5.0% for the same period in 2015. The shift in sales mix towards cigarettes reduced operating expenses as a percentage of total net sales by approximately 50 basis points.
Net income increased 17.6% to $22.0 million for the first six months of 2016 compared to $18.7 million for the same period in 2015. Adjusted EBITDA increased 10.3% to $66.6 million for the first six months of 2016 compared to $60.4 million for the same period in 2015.
The following table reconciles Adjusted EBITDA to net income, its most comparable financial measure under U.S. GAAP (in millions):
| RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | ||||||||||
| (Unaudited and $ in millions) | ||||||||||
| For the Six Months Ended | ||||||||||
| June 30, | ||||||||||
| 2016 | 2015 | % Change | ||||||||
| Net income | $ | 22.0 | $ | 18.7 | 17.6 | % | ||||
| Interest expense, net (1) | 1.7 | 1.0 | ||||||||
| Provision for income taxes | 13.6 | 11.8 | ||||||||
| Depreciation & amortization | 19.8 | 18.4 | ||||||||
| LIFO expense | 6.3 | 5.9 | ||||||||
| Stock-based compensation expense | 3.6 | 4.0 | ||||||||
| Foreign currency transaction (gains) / losses, net | (0.4 | ) | 0.6 | |||||||
| Adjusted EBITDA | $ | 66.6 | $ | 60.4 | 10.3 | % | ||||
______________________________________________
(1) Interest expense, net, is reported net of interest income.
Diluted EPS were $0.47 for the first six months of 2016 compared to $0.40 for the same period in 2015. Excluding LIFO expenses, diluted EPS were $0.55 for the first six months of 2016 compared to $0.48 for the first six months of 2015, a 14.6% increase. In addition, per share results were impacted by several other items, which are provided in the attached diluted EPS table following the financial schedules.
Dividend
Core-Mark also announced today that its Board of Directors has approved a $0.08 cash dividend per common share. The dividend is payable on September 15, 2016 to stockholders of record as of the close of business on August 24, 2016.
Guidance for 2016
The Company reaffirms its guidance for 2016. Annual net sales for 2016 are expected to be between $14.0 billion and $14.5 billion. Diluted EPS for the full year are expected to be between $1.16 to $1.23. Diluted per-share estimates, excluding LIFO expense, are expected to be between $1.33 and $1.40. Adjusted EBITDA for 2016 is expected to be between $157 million and $164 million. For 2016, we are expecting LIFO expense of $13 million, a 38.5% tax rate and 46.8 million fully diluted shares outstanding reflecting the recent two for one stock split.
Capital expenditure estimates for 2016 are expected to be approximately $50 million, which will be utilized for expansion projects, including a new warehouse in Las Vegas, and maintenance investments.
Conference Call and Webcast Information
Core-Mark will host an earnings call on Tuesday, August 9, 2016 at 9:00 a.m. Pacific time during which management will review the results of the second quarter of 2016. The call may be accessed by dialing 1-800-588-4973 using the code 42954074. The call may also be listened to on the Company’s website www.core-mark.com.
An audio replay will be available for approximately one month following the call by dialing 1-888-843-7419 using the same code provided above. The replay will also be available via webcast at www.core-mark.com for approximately 90 days following the call.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures including diluted earnings per share excluding LIFO expense, Adjusted EBITDA, remaining gross profit, remaining gross profit margin and net sales excluding foreign currency fluctuations. 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. We use 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 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 us to measure operating performance. Adjusted EBITDA is also among 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, which we provide to segregate the effects of LIFO expense, cigarette and candy inventory holding gains and other items that significantly affect the comparability of gross profit.
We do not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “Guidance for 2016” 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, that 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. These statements include statements regarding our guidance for 2016 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 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; manufacturers or retail customers adopting direct distribution channels; fuel and other transportation costs; 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 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; failure or disruptions of our information technology systems; unexpected outcomes in legal proceedings; our dependence on qualified labor, our senior management and other key personnel; attempts by unions to organize our employees; increasing labor costs related to contract 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; 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; 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, 2015 filed with the SEC on February 26, 2016 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. 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
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 44,000 customer locations in the U.S. and Canada through 30 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 www.core-mark.com.
| CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In millions, except share and per share data) | |||||||
| (Unaudited) | |||||||
| June 30, | December 31, | ||||||
| 2016 | 2015 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 18.0 | $ | 12.5 | |||
| Restricted cash | 3.8 | 8.5 | |||||
| Accounts receivable, net of allowance for doubtful accounts of $11.7 and $10.9 as of June 30, 2016 and December 31, 2015, respectively | 386.1 | 272.7 | |||||
| Other receivables, net | 100.5 | 69.4 | |||||
| Inventories, net | 467.9 | 407.4 | |||||
| Deposits and prepayments | 95.4 | 65.0 | |||||
| Deferred income taxes | 1.8 | 1.8 | |||||
| Total current assets | 1,073.5 | 837.3 | |||||
| Property and equipment, net | 175.6 | 159.5 | |||||
| Goodwill | 34.5 | 22.9 | |||||
| Other intangible assets, net | 43.5 | 29.5 | |||||
| Other non-current assets, net | 30.1 | 28.1 | |||||
| Total assets | $ | 1,357.2 | $ | 1,077.3 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 160.3 | $ | 129.6 | |||
| Book overdrafts | 41.4 | 29.2 | |||||
| Cigarette and tobacco taxes payable | 215.1 | 193.6 | |||||
| Accrued liabilities | 134.2 | 106.9 | |||||
| Deferred income taxes | 0.3 | 0.3 | |||||
| Total current liabilities | 551.3 | 459.6 | |||||
| Long-term debt | 232.6 | 60.4 | |||||
| Deferred income taxes | 19.5 | 18.6 | |||||
| Other long-term liabilities | 11.1 | 10.6 | |||||
| Claims liabilities | 27.6 | 26.6 | |||||
| Pension liabilities | 7.3 | 7.5 | |||||
| Total liabilities | 849.4 | 583.3 | |||||
| Contingencies | |||||||
| Stockholders’ equity: | |||||||
| Common stock, $0.01 par value (100,000,000 shares authorized, 52,191,054 and 51,953,354 shares issued; 46,265,454 and 46,116,670 shares outstanding at June 30, 2016 and December 31, 2015, respectively) | 0.5 | 0.3 | |||||
| Additional paid-in capital | 272.4 | 271.8 | |||||
| Treasury stock at cost (5,925,600 and 5,836,684 shares of common stock at June 30, 2016 and December 31, 2015, respectively) | (65.3 | ) | (61.8 | ) | |||
| Retained earnings | 314.5 | 300.0 | |||||
| Accumulated other comprehensive loss | (14.3 | ) | (16.3 | ) | |||
| Total stockholders’ equity | 507.8 | 494.0 | |||||
| Total liabilities and stockholders’ equity | $ | 1,357.2 | $ | 1,077.3 | |||
| CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| (In millions, except per share data) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||
| Net sales | $ | 3,687.4 | $ | 2,810.4 | $ | 6,698.7 | $ | 5,262.7 | ||||||
| Cost of goods sold | 3,499.5 | 2,651.5 | 6,359.7 | 4,966.5 | ||||||||||
| Gross profit | 187.9 | 158.9 | 339.0 | 296.2 | ||||||||||
| Warehousing and distribution expenses | 106.0 | 88.6 | 197.6 | 168.1 | ||||||||||
| Selling, general and administrative expenses | 53.0 | 47.5 | 102.4 | 94.8 | ||||||||||
| Amortization of intangible assets | 1.2 | 0.6 | 2.1 | 1.2 | ||||||||||
| Total operating expenses | 160.2 | 136.7 | 302.1 | 264.1 | ||||||||||
| Income from operations | 27.7 | 22.2 | 36.9 | 32.1 | ||||||||||
| Interest expense | (1.0 | ) | (0.7 | ) | (1.8 | ) | (1.3 | ) | ||||||
| Interest income | — | 0.1 | 0.1 | 0.3 | ||||||||||
| Foreign currency transaction (losses) gains, net | (0.3 | ) | (0.2 | ) | 0.4 | (0.6 | ) | |||||||
| Income before income taxes | 26.4 | 21.4 | 35.6 | 30.5 | ||||||||||
| Provision for income taxes | (10.1 | ) | (8.2 | ) | (13.6 | ) | (11.8 | ) | ||||||
| Net income | $ | 16.3 | $ | 13.2 | $ | 22.0 | $ | 18.7 | ||||||
| Basic and diluted net income per common share (1) | $ | 0.35 | $ | 0.29 | $ | 0.47 | $ | 0.40 | ||||||
| Basic weighted-average shares | 46.3 | 46.2 | 46.3 | 46.2 | ||||||||||
| Diluted weighted-average shares | 46.5 | 46.6 | 46.5 | 46.6 | ||||||||||
| Dividends declared and paid per common share | $ | 0.08 | $ | 0.07 | $ | 0.16 | $ | 0.13 | ||||||
| (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) | |||||||
| Six Months Ended | |||||||
| June 30, | |||||||
| 2016 | 2015 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 22.0 | $ | 18.7 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| LIFO and inventory provisions | 6.3 | 6.0 | |||||
| Amortization of debt issuance costs | 0.2 | 0.2 | |||||
| Stock-based compensation expense | 3.6 | 4.0 | |||||
| Bad debt expense, net | 1.0 | 0.8 | |||||
| Depreciation and amortization | 19.8 | 18.4 | |||||
| Foreign currency transaction (gains)/losses, net | (0.4 | ) | 0.6 | ||||
| Deferred income taxes | 0.9 | (0.6 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable, net | (77.6 | ) | (41.0 | ) | |||
| Other receivables, net | (30.6 | ) | (3.2 | ) | |||
| Inventories, net | (42.2 | ) | (9.5 | ) | |||
| Deposits, prepayments and other non-current assets | (33.0 | ) | (9.4 | ) | |||
| Accounts payable | 29.8 | 24.1 | |||||
| Cigarette and tobacco taxes payable | 19.2 | (14.2 | ) | ||||
| Pension, claims, accrued and other long-term liabilities | 28.3 | (3.9 | ) | ||||
| Excess tax deductions associated with stock-based compensation | (2.4 | ) | (1.9 | ) | |||
| Net cash used in operating activities | (55.1 | ) | (10.9 | ) | |||
| Cash flows from investing activities: | |||||||
| Acquisition of business, net of cash acquired | (88.4 | ) | (8.0 | ) | |||
| Change in restricted cash | 4.7 | 3.2 | |||||
| Additions to property and equipment, net | (22.8 | ) | (14.4 | ) | |||
| Capitalization of software and related development costs | (2.7 | ) | (3.9 | ) | |||
| Proceeds from sale of fixed assets | — | 0.3 | |||||
| Net cash used in investing activities | (109.2 | ) | (22.8 | ) | |||
| Cash flows from financing activities: | |||||||
| Borrowing under revolving credit facility, net | 172.9 | 48.4 | |||||
| Dividends paid | (7.5 | ) | (6.1 | ) | |||
| Payments on capital leases | (1.2 | ) | (1.1 | ) | |||
| Payments of financing costs | (1.3 | ) | (0.3 | ) | |||
| Repurchases of common stock | (3.5 | ) | (6.0 | ) | |||
| Proceeds from exercise of common stock options | — | 0.2 | |||||
| Tax withholdings related to net share settlements of restricted stock units | (5.2 | ) | (3.1 | ) | |||
| Excess tax deductions associated with stock-based compensation | 2.4 | 1.9 | |||||
| Increase in book overdrafts | 12.2 | 0.9 | |||||
| Net cash provided by financing activities | 168.8 | 34.8 | |||||
| Effects of changes in foreign exchange rates | 1.0 | (1.0 | ) | ||||
| Change in cash and cash equivalents | 5.5 | 0.1 | |||||
| Cash and cash equivalents, beginning of period | 12.5 | 14.4 | |||||
| Cash and cash equivalents, end of period | $ | 18.0 | $ | 14.5 | |||
| Supplemental disclosures: | |||||||
| Cash paid during the period for: | |||||||
| Income taxes, net | $ | 8.8 | $ | 12.8 | |||
| Interest | $ | 1.1 | $ | 0.6 | |||
| Non-cash capital lease obligations incurred | $ | 0.2 | $ | 5.2 | |||
| Unpaid property and equipment purchases included in accrued liabilities | $ | 1.5 | $ | 3.4 | |||
| CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||||||||||||||||
| SUPPLEMENTAL SCHEDULE FOR ITEMS IMPACTING DILUTED EPS | |||||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| % | % | ||||||||||||||||||||
| 2016 (a)(b) | 2015 (a)(b) | Change | 2016 (a)(b) | 2015 (a)(b) | Change | ||||||||||||||||
| Net income | $ | 16.3 | $ | 13.2 | 23.5 | % | $ | 22.0 | $ | 18.7 | 17.6 | % | |||||||||
| Diluted shares | 46.5 | 46.6 | 46.5 | 46.6 | |||||||||||||||||
| Diluted EPS | $ | 0.35 | $ | 0.29 | 20.7 | % | $ | 0.47 | $ | 0.40 | 17.5 | % | |||||||||
| LIFO expense | 0.04 | 0.04 | 0.08 | 0.08 | |||||||||||||||||
| Diluted EPS excluding LIFO expense (Non GAAP) | $ | 0.39 | $ | 0.33 | 18.2 | % | $ | 0.55 | $ | 0.48 | 14.6 | % | |||||||||
| Additional Items Impacting Diluted EPS: | |||||||||||||||||||||
| Cigarette inventory holding gains (1) | $ | 0.09 | $ | 0.05 | $ | 0.11 | $ | 0.06 | |||||||||||||
| Net Other Tobacco Product (OTP) tax refunds (2) | — | 0.01 | — | 0.02 | |||||||||||||||||
| Business expansion and integration costs(3) | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.01 | ) | |||||||||||||
| Legal settlement (4) | — | — | 0.03 | — | |||||||||||||||||
| Foreign exchange gains / (losses) (5) | — | — | 0.01 | (0.01 | ) | ||||||||||||||||
| (a) Amounts and percentages have been rounded for presentation purposes and might differ from unrounded results. | |||||||||||||||||||||
| (b) The per share impacts of the above items were calculated using a normal tax rate of approximately 38.2% for the three and six months ended June 30th 2016 and 38.6% for the same periods in 2015. | |||||||||||||||||||||
| (1) Cigarette inventory holding gains | |||||||||||||||||||||
| Cigarette inventory holding gains were $7.0 and $8.0 million for the three and six months ended June 30, 2016, respectively, versus $3.8 and $4.8 million for the three and six months ended June 30, 2015. | |||||||||||||||||||||
| (2) Net OTP tax refunds | |||||||||||||||||||||
| During the three and six months ended June 30, 2015 the Company recognized OTP tax refunds, net of fees, of $0.8 million and $1.7 million, respectively, related to prior years' taxes. | |||||||||||||||||||||
| (3) Business expansion and integration costs | |||||||||||||||||||||
| During the three months ended June 30, 2016, the Company incurred approximately $0.8 million in business and integration expenses related to the acquisition and onboarding of Pine State. During the six months ended June 30, 2016, the Company incurred approximately $2.8 million related to the acquisition of Pine State and the onboarding of Murphy U.S.A. During the three and six months ended June 30, 2015, the Company incurred approximately $0.8 and $1.1 million, respectively, in business expansion and integration expenses related to the acquisition of Karrys Bros. | |||||||||||||||||||||
| (4) Legal settlement | |||||||||||||||||||||
| During the six months ended June 30, 2016, the Company recorded a gain of approximately $2.0 million, net of legal costs, related to the settlement of a legal proceeding with Sonitrol Corporation. | |||||||||||||||||||||
| (5) Foreign exchange gains / (losses) | |||||||||||||||||||||
| During the six months ended June 30, 2016, the Company recognized foreign exchange transaction gains of $0.4 million. The Company recognized foreign exchange transaction losses of $0.6 million for the six month period ended June 30, 2015. | |||||||||||||||||||||