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
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 www.core-mark.com.
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.