CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
(Unaudited)
June 30, December 31,
2008 2007
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Assets
Current assets:
Cash and cash equivalents $ 21.9 $ 21.3
Restricted cash 12.9 11.5
Accounts receivable, net of allowance for
doubtful accounts of $8.7 and $9.3,
respectively 164.5 135.7
Other receivables, net 35.5 32.1
Inventories, net 219.4 216.4
Deposits and prepayments 47.2 36.9
Deferred income taxes 8.4 8.4
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Total current assets 509.8 462.3
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Property and equipment, net 74.8 69.3
Deferred income taxes 7.4 7.2
Goodwill 3.4 2.8
Other non-current assets, net 38.3 35.5
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Total assets $ 633.7 $ 577.1
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 76.3 $ 54.3
Book overdrafts 18.3 21.1
Cigarette and tobacco taxes payable 96.7 94.2
Accrued liabilities 56.5 56.7
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Total current liabilities 247.8 226.3
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Long-term debt, net 64.2 29.7
Other long-term liabilities 13.4 13.7
Claims liabilities, net of current portion 31.7 31.2
Pension liabilities 9.7 9.7
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Total liabilities 366.8 310.6
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Stockholders' equity:
Common stock; $0.01 par value (50,000,000 shares
authorized; 10,602,055 and 10,445,886 shares
issued and outstanding at June 30, 2008 and
December 31, 2007, respectively) 0.1 0.1
Additional paid-in capital 205.5 202.6
Treasury stock at cost, 268,085 shares of common
stock (7.5) --
Retained earnings 69.6 64.4
Accumulated other comprehensive (loss) (0.8) (0.6)
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Total stockholders' equity 266.9 266.5
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Total liabilities and stockholders' equity $ 633.7 $ 577.1
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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,
2008 2007 2008 2007
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Net sales $ 1,534.6 $ 1,434.0 $ 2,880.0 $ 2,710.1
Cost of goods sold 1,443.5 1,337.4 2,707.7 2,538.0
--------- --------- --------- ---------
Gross profit 91.1 96.6 172.3 172.1
--------- --------- --------- ---------
Warehousing and distribution
expenses 51.0 42.9 96.9 83.0
Selling, general and
administrative expenses 30.9 29.5 65.0 60.7
Amortization of intangible
assets 0.5 0.5 1.0 0.9
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Total operating expenses 82.4 72.9 162.9 144.6
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Income from operations 8.7 23.7 9.4 27.5
Interest expense 0.4 0.6 0.9 1.5
Interest income (0.4) (0.3) (0.7) (0.5)
Foreign currency transaction
losses (gains), net 0.1 (0.7) 1.1 (0.6)
--------- --------- --------- ---------
Income before income taxes 8.6 24.1 8.1 27.1
Provision for income taxes 2.9 10.5 2.9 11.4
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Net income $ 5.7 $ 13.6 $ 5.2 $ 15.7
========= ========= ========= =========
Basic income per common share $ 0.54 $ 1.31 $ 0.49 $ 1.52
========= ========= ========= =========
Diluted income per common share $ 0.51 $ 1.20 $ 0.47 $ 1.40
========= ========= ========= =========
Basic weighted average shares 10.5 10.4 10.6 10.3
Diluted weighted average shares 11.0 11.3 11.1 11.2
CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
June 30,
2008 2007
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Cash flows from operating activities:
Net income $ 5.2 $ 15.7
Adjustments to reconcile net income to net cash
provided by operating activities:
LIFO and inventory provisions 6.2 5.2
Amortization of debt issuance costs 0.2 0.2
Amortization of stock-based compensation
expense 1.9 2.4
Bad debt expense, net 0.4 (0.1)
Depreciation and amortization 8.4 7.4
Foreign currency transaction losses (gains),
net 1.1 (0.6)
Deferred income taxes (0.1) --
Changes in operating assets and liabilities:
Accounts receivable (17.5) (12.9)
Other receivables (3.8) (8.8)
Inventories (0.9) 3.8
Deposits, prepayments and other non-current
assets (13.8) (12.9)
Accounts payable 22.3 28.3
Cigarette and tobacco taxes payable 3.7 23.1
Pension, claims and other accrued
liabilities (1.5) (4.3)
Income taxes payable -- (2.1)
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Net cash provided by operating activities 11.8 44.4
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Cash flows from investing activities:
Restricted cash (1.8) (2.1)
Acquisition of business, net of cash acquired (26.4) --
Additions to property and equipment, net (8.0) (7.2)
Proceeds from sale of fixed assets 0.1 0.1
Capitalization of internally developed software (0.4) --
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Net cash used in investing activities (36.5) (9.2)
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Cash flows from financing activities:
Borrowings (Repayments) under revolving credit
facility, net 34.2 (45.2)
Repurchases of common stock shares (treasury stock) (6.9) --
Proceeds from exercise of common stock options 0.9 1.8
Excess tax deductions associated with stock-based
compensation 0.2 0.9
(Decrease) Increase in book overdrafts (2.8) 2.8
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Net cash provided from (used in) financing
activities 25.6 (39.7)
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Effects of changes in foreign exchange rates (0.3) (1.5)
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Increase (Decrease) in cash and cash equivalents 0.6 (6.0)
Cash and cash equivalents, beginning of period 21.3 19.9
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Cash and cash equivalents, end of period $ 21.9 $ 13.9
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Supplemental disclosures:
Cash paid during the period for:
Income taxes, includes interest paid, net of
refunds $ 5.8 $ 13.8
Interest $ 0.7 $ 1.9
Contact Information: Contact: Ms Milton Gray Draper Director of Investor Relations 650-589-9445 X3027