Contact Information: Contact: Ms Milton Gray Draper Director of Investor Relations 650-589-9445 X3027 mdraper@core-mark.com
Core-Mark Announces 2009 Guidance
| Source: Core-Mark Holding Company, Inc.
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.