SOURCE: Core-Mark Holding Company, Inc.

February 03, 2009 16:30 ET

Core-Mark Announces 2009 Guidance

SOUTH SAN FRANCISCO, CA--(Marketwire - February 3, 2009) - 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 $6.3 billion in net sales in 2009. While there is uncertainty in the economy coupled with the likely passage of the SCHIP legislation, the Company anticipates declining carton unit volume will be offset by higher per carton revenue dollars. With non-cigarette same stores sales predicted to be slightly up in 2009, the Company will rely on its ability to increase organic market share to achieve 2009 revenue objectives. There are no extraordinarily large customer wins or losses reflected in the guidance number.

Management expects capital expenditures of approximately $27 million in 2009. Approximately $7.5 million of this expenditure will be used to equip and modernize a new building for one of the Company's existing divisions. Also included in the $27 million estimate are: $1.6 million in one-time investments in our recently acquired New England division; tri-temp trailers, freezers, coolers and chill docks to sustain our fleet and enhance our VCI and "Fresh" capabilities; and the remainder predominantly for maintenance capital expenditures.

Core-Mark

Core-Mark is one of the largest and most valued 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 approximately 25,000 retail locations in 50 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 www.core-mark.com.

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 store 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; earthquake and natural disaster damage; failure or disruptions to our information systems; a general decline in cigarette sales volume; competition from sales of deep-discount brands and illicit and other low priced sales of cigarettes. See the "Risk Factors" section included in our Form 10-K, our most recent Form 10-Q and all other information discussed in our filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that may affect our business. 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.

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