Contact Information: Contact: Ms. Milton Gray Draper Director of Investor Relations 650-589-9445 X3027
Core-Mark Completes Strategic Review, Board of Directors Authorizes $30 Million Share Repurchase Program
| Source: Core-Mark Holding Company, Inc.
SOUTH SAN FRANCISCO, CA--(Marketwire - March 14, 2008) - Core-Mark Holding Company, Inc.
(NASDAQ : CORE ), one of the leading broad-line distributors in North
America, announced today that its Board of Directors has authorized the
Company to repurchase up to $30 million of the Company's common stock.
Share Repurchase Program
The Company's policy is to repurchase shares, from time to time, through
solicited or unsolicited transactions in the open market, in privately
negotiated transactions or pursuant to a Rule 10b5-1 plan. The timing,
price and volume of repurchases will be based on market conditions,
relevant securities laws and other factors. The Company plans to fund the
majority of the share repurchases from excess cash. The credit agreement
for the Company's 2005 credit facility has been amended to allow the
company to execute this $30 million share repurchase plan. The program may
be discontinued or amended at any time.
Strategic Alternatives Review
The Company's repurchase program follows completion by its Board of
Directors of a comprehensive review of strategic alternatives with the help
of Morgan Stanley & Co. Incorporated, its financial advisor. Following a
rigorous review of all strategic options, and after careful consideration
of each, the Board of Directors concluded that the best course of action at
this time for Core-Mark and its shareholders is for the company to continue
to execute its strategic business plan and initiate the share repurchase
program. This is in light of current market conditions, including the
continued weakness in the U.S. consumer environment and credit markets. "We
have thoroughly explored a comprehensive range of alternatives to maximize
value for our shareholders," said Randolph I. Thornton, Chairman of the
Board of Directors of Core-Mark. "Following the Board's evaluation and
consideration of these alternatives, we have concluded that the best course
of action at this time is for Core-Mark to return capital to its
shareholders through this share repurchase program. Our goal is to
continually look for ways to enhance long-term shareholder value and the
decision to initiate a share repurchase program reflects the Board's
confidence in Core-Mark's long-term prospects."
Core-Mark
Core-Mark is one of the largest broad-line, full-service wholesale
distributors of packaged consumer products 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 21,000 retail
locations in 45 states and five Canadian provinces through 25 distribution
centers, two of which Core-Mark operate 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; 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; 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.