SOURCE: Core-Mark Holding Company, Inc.

Core-Mark Holding Company, Inc.

February 02, 2010 08:30 ET

Core-Mark Announces 2010 Guidance of $6.9 Billion in Net Sales

SOUTH SAN FRANCISCO, CA--(Marketwire - February 2, 2010) - Core-Mark Holding Company, Inc. (NASDAQ: CORE), one of the largest North American distributors to the convenience retail industry, announced today that it expects approximately $6.9 billion in net sales in 2010. This represents an increase of approximately 6% over 2009 revenue guidance of $6.5 billion. The Company anticipates continued decline in carton volume, offset by higher cigarette taxes and manufacturer price increases. To attain the 2010 sales guidance, the Company also anticipates continued penetration of the fresh product offering, increases in its vendor consolidation initiative, and market share gains. There are no extraordinarily large customer wins or losses reflected in this guidance.

Management estimates its capital expenditures will total $20 million in 2010. Approximately $3 million of this expenditure will be used to expand the cooler/freezer capacity at four divisions and another $2 million invested in its tri-temperature fleet and in its Fresh Cooler Program. The remainder of the capital expenditure estimate is predominantly composed of maintenance investments that would be expected in the normal course of business.


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 provides distribution and logistics services as well as marketing programs to over 24,000 retail locations in 50 U.S. states and five Canadian provinces through 26 distribution centers, two of which Core-Mark operates as third party logistics providers. Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry consumer packaged goods. For more information, please visit

Safe Harbor

Except for historical information, the statements made in this press release are forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions or estimates, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.

Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. 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. These forward-looking statements are based on the current plans and expectations of our management and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those discussed in 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; uncertain and recent economic conditions; competition; price increases; our dependence on relatively few suppliers; the low-margin nature of cigarette and consumable goods distribution; certain distribution centers' dependence on a few relatively large customers; competition in the labor market and collective bargaining agreements; product liability claims and manufacturer recalls of products; fuel price increases; our dependence on our senior management and key personnel; integration of acquired businesses; currency exchange rate fluctuations; our ability to borrow additional capital; governmental regulations and changes thereto including the Family Smoking Prevention and Tobacco Control Act which was signed into law in June 2009 which granted the U.S. federal Food & Drug Administration ("FDA") the authority to regulate the production and marketing of tobacco products in the United States; earthquake and natural disaster damage; failure or disruptions to our information systems; a general decline in cigarette sales volume; and competition from sales of deep-discount brands and illicit and other low priced sales of cigarettes. Refer to the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2008 filed with the SEC on March 13, 2009 and Part II, Item 1A, "Risk Factors" of any quarterly report on Form 10-Q subsequently filed by us. Except as provided by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.