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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Core Mark Holding Company Inc | NASDAQ:CORE | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 45.65 | 45.42 | 46.12 | 0 | 01:00:00 |
July 10, 2017 | |||||
Accounts receivable | $ | 43.2 | |||
Inventories | 35.5 | ||||
Deposits and prepayments | 10.2 | ||||
Other receivables | 0.4 | ||||
Property and equipment | 43.1 | ||||
Goodwill (tax deductible) | 36.8 | ||||
Other intangible assets | 22.6 | ||||
Less: Capital lease liability | (15.8) | ||||
Less: Accrued liabilities | (2.0) | ||||
Total consideration | $ | 174.0 |
Fair Value | Useful Life in Years | ||||||||||
Customer relationships | $ | 19.7 |
9-11
|
||||||||
Non-competition agreements | 0.1 |
4-6
|
|||||||||
Trade names | 2.8 |
1-2
|
|||||||||
Total other intangible assets | $ | 22.6 |
(Unaudited)
Year Ended December 31, |
|||||||||||
2017(1)
|
2016(1)
|
||||||||||
Pro forma | Pro forma | ||||||||||
Net sales | $ | 16,427.9 | $ | 15,973.6 | |||||||
Net income | 38.1 | 63.6 | |||||||||
Basic and diluted earnings per share | 0.82 | 1.37 |
July 10, 2017 | |||||
Accounts receivable | $ | 43.2 | |||
Inventories | 35.5 | ||||
Deposits and prepayments | 10.2 | ||||
Other receivables | 0.4 | ||||
Property and equipment | 43.1 | ||||
Goodwill (tax deductible) | 36.8 | ||||
Other intangible assets | 22.6 | ||||
Less: Capital lease liability | (15.8) | ||||
Less: Accrued liabilities | (2.0) | ||||
Total consideration | $ | 174.0 |
Fair Value | Useful Life in Years | ||||||||||
Customer relationships | $ | 19.7 |
9-11
|
||||||||
Non-competition agreements | 0.1 |
4-6
|
|||||||||
Trade names | 2.8 |
1-2
|
|||||||||
Total other intangible assets | $ | 22.6 |
(Unaudited)
Year Ended December 31, |
|||||||||||
2017(1)
|
2016(1)
|
||||||||||
Pro forma | Pro forma | ||||||||||
Net sales | $ | 16,427.9 | $ | 15,973.6 | |||||||
Net income | 38.1 | 63.6 | |||||||||
Basic and diluted earnings per share | 0.82 | 1.37 |
Delaware | 20-1489747 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(IRS Employer
Identification No.) |
|||||||
1500 Solana Boulevard, Suite 3400 | 76262 | |||||||
Westlake, | Texas | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class
|
Trading symbol |
Name of each exchange
on which registered
|
||||||
Common Stock, par value $0.01 per share | CORE | NASDAQ Global Select Market |
Large accelerated filer
|
☒ |
Accelerated filer
|
☐ | ||||||||
Non-accelerated filer
|
☐ |
Smaller reporting company
|
☐ | ||||||||
Emerging growth company
|
☐ |
Page | ||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Product Category | Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | |||||||||||||||||||||||||||||
Cigarettes | $ | 11,310.5 | 66.7 | % | $ | 10,892.7 | 65.3 | % | $ | 10,974.5 | 66.9 | % | |||||||||||||||||||||||
Food | 1,575.8 | 9.3 | 1,746.4 | 10.5 | 1,659.0 | 10.1 | |||||||||||||||||||||||||||||
Fresh | 509.3 | 3.0 | 502.8 | 3.0 | 474.2 | 2.9 | |||||||||||||||||||||||||||||
Candy | 1,004.0 | 5.9 | 1,039.0 | 6.2 | 992.0 | 6.1 | |||||||||||||||||||||||||||||
Other tobacco products (“OTP”) | 1,558.6 | 9.2 | 1,438.9 | 8.6 | 1,387.2 | 8.5 | |||||||||||||||||||||||||||||
Health, beauty & general | 801.3 | 4.7 | 847.2 | 5.1 | 711.5 | 4.3 | |||||||||||||||||||||||||||||
Beverages | 197.2 | 1.2 | 202.1 | 1.2 | 191.0 | 1.2 | |||||||||||||||||||||||||||||
Equipment/other | 1.2 | — | 1.4 | — | 5.9 | — | |||||||||||||||||||||||||||||
Total food/non-food products | 5,647.4 | 33.3 | % | 5,777.8 | 34.7 | % | 5,420.8 | 33.1 | % | ||||||||||||||||||||||||||
Total net sales
|
$ | 16,957.9 | 100.0 | % | $ | 16,670.5 | 100.0 | % | $ | 16,395.3 | 100.0 | % |
U.S. | Canada | Total | |||||||||||||||
Sales and marketing | 1,020 | 70 | 1,090 | ||||||||||||||
Warehousing and distribution | 4,987 | 467 | 5,454 | ||||||||||||||
Management, administration, finance and purchasing | 837 | 153 | 990 | ||||||||||||||
Total for all categories
|
6,844 | 690 | 7,534 |
Distribution Center Facilities by City and State/Province of Location(1)
|
||||||||
Albuquerque, New Mexico | Hayward, California | Tampa, Florida | ||||||
Atlanta, Georgia | Henderson, Nevada | Whitinsville, Massachusetts | ||||||
Aurora, Colorado | Leitchfield, Kentucky |
Wilkes-Barre, Pennsylvania(5)
|
||||||
Bakersfield, California | Los Angeles, California | Burnaby, British Columbia | ||||||
Carroll, Iowa | Minneapolis, Minnesota | Calgary, Alberta | ||||||
Corona, California(2)
|
Portland, Oregon |
Mississauga, Ontario(6)
|
||||||
Forrest City, Arkansas(3)
|
Sacramento, California(4)
|
Milton, Ontario | ||||||
Fort Worth, Texas | Salt Lake City, Utah | Winnipeg, Manitoba | ||||||
Gardiner, Maine | Sanford, North Carolina | |||||||
Glenwillow, Ohio | Spokane, Washington |
Investment Value at December 31, | ||||||||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||||||||
CORE | $ | 100.00 | $ | 106.01 | $ | 78.67 | $ | 58.89 | $ | 69.81 | $ | 76.71 | ||||||||||||||||||||||||||
Russell 2000 Index | 100.00 | 121.31 | 139.08 | 123.76 | 155.35 | 186.36 | ||||||||||||||||||||||||||||||||
NASDAQ Non-financial Index | 100.00 | 107.65 | 141.25 | 137.64 | 189.30 | 280.07 | ||||||||||||||||||||||||||||||||
S&P SmallCap 600 | 100.00 | 126.56 | 143.30 | 131.15 | 161.03 | 179.20 | ||||||||||||||||||||||||||||||||
Performance Peer Group | 100.00 | 123.90 | 133.99 | 88.31 | 123.28 | 126.34 | ||||||||||||||||||||||||||||||||
Calendar month in which
purchases were made: |
Total Number of Shares Repurchased |
Average Price Paid per Share(1)
|
Total Cost of Shares Purchased as Part of Publicly Announced Plans or Programs(1)
|
Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||||||||||||||
October 1, 2020 to October 31, 2020 | 172,627 | $ | 28.96 | $ | 5.0 | $ | 49.6 | |||||||||||||||||||
November 1, 2020 to November 30, 2020 | — | — | — | 49.6 | ||||||||||||||||||||||
December 1, 2020 to December 31, 2020 | — | — | — | 49.6 | ||||||||||||||||||||||
Total repurchases for the three months ended December 31, 2020 | 172,627 | 28.96 | $ | 5.0 | 49.6 |
Year Ended December 31, | |||||||||||||||||||||||||||||
(In millions except per share amounts) | 2020 | 2019 | 2018 |
2017(1)
|
2016(2)
|
||||||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||||||||
Net sales | $ | 16,957.9 | $ | 16,670.5 | $ | 16,395.3 | $ | 15,687.6 | $ | 14,529.4 | |||||||||||||||||||
Gross profit(3)
|
888.3 | 924.2 | 867.5 | 791.7 | 736.9 | ||||||||||||||||||||||||
Warehousing and distribution expenses(3)
|
541.7 | 566.2 | 540.6 | 504.1 | 431.2 | ||||||||||||||||||||||||
Selling, general and administrative expenses | 242.2 | 255.4 | 245.1 | 224.3 | 210.3 | ||||||||||||||||||||||||
Amortization of intangible assets | 9.7 | 10.0 | 10.0 | 8.5 | 5.3 | ||||||||||||||||||||||||
Income from operations | 94.7 | 92.6 | 71.8 | 54.8 | 90.1 | ||||||||||||||||||||||||
Interest expense, net(4)
|
10.5 | 14.4 | 13.7 | 11.0 | 5.1 | ||||||||||||||||||||||||
Foreign currency transaction losses (gains), net | 0.9 | 0.8 | (1.8) | (1.8) | (0.5) | ||||||||||||||||||||||||
Pension termination settlement | — | — | — | 17.2 | — | ||||||||||||||||||||||||
(Provision) benefit for income taxes(5)
|
(20.1) | (19.7) | (14.4) | 5.1 | (31.3) | ||||||||||||||||||||||||
Net income | 63.2 | 57.7 | 45.5 | 33.5 | 54.2 | ||||||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||||||||||
Basic earnings per share | $ | 1.40 | $ | 1.26 | $ | 0.99 | $ | 0.72 | $ | 1.17 | |||||||||||||||||||
Diluted earnings per share | $ | 1.39 | $ | 1.25 | $ | 0.99 | $ | 0.72 | $ | 1.17 | |||||||||||||||||||
Shares Used to Compute Earnings Per Share: | |||||||||||||||||||||||||||||
Basic | 45.1 | 45.7 | 46.0 | 46.3 | 46.3 | ||||||||||||||||||||||||
Diluted | 45.4 | 46.0 | 46.1 | 46.4 | 46.5 | ||||||||||||||||||||||||
Cash Dividends Declared Per Share | $ | 0.49 | $ | 0.45 | $ | 0.41 | $ | 0.37 | $ | 0.33 | |||||||||||||||||||
Other Financial Data: | |||||||||||||||||||||||||||||
Excise taxes(6)
|
$ | 3,340.8 | $ | 3,341.3 | $ | 3,491.4 | $ | 3,462.6 | $ | 3,022.0 | |||||||||||||||||||
Cigarette inventory holding gains(7)
|
31.8 | 23.0 | 19.6 | 16.1 | 15.3 | ||||||||||||||||||||||||
Other inventory holding gains(8)(9)
|
— | 6.9 | 7.4 | — | — | ||||||||||||||||||||||||
OTP tax items(10)
|
— | — | — | 3.3 | — | ||||||||||||||||||||||||
LIFO expense | 30.7 | 27.6 | 25.2 | 21.5 | 13.2 | ||||||||||||||||||||||||
Capital expenditures(11)
|
27.2 | 22.8 | 20.1 | 48.2 | 54.3 | ||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP)(12)
|
202.2 | 190.7 | 164.7 | 135.7 | 152.3 | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||||||||||
Total assets | $ | 1,954.7 | $ | 1,898.4 | $ | 1,666.1 | $ | 1,782.5 | $ | 1,492.2 | |||||||||||||||||||
Long-term debt(13)
|
344.5 | 382.1 | 346.2 | 512.9 | 347.7 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Net income | $ | 63.2 | $ | 57.7 | $ | 45.5 | $ | 33.5 | $ | 54.2 | |||||||||||||||||||
Interest expense, net | 10.5 | 14.4 | 13.7 | 11.0 | 5.1 | ||||||||||||||||||||||||
Provision (benefit) for income taxes(a)
|
20.1 | 19.7 | 14.4 | (5.1) | 31.3 | ||||||||||||||||||||||||
Depreciation and amortization | 66.6 | 60.9 | 59.5 | 54.4 | 42.9 | ||||||||||||||||||||||||
LIFO expense | 30.7 | 27.6 | 25.2 | 21.5 | 13.2 | ||||||||||||||||||||||||
Stock-based compensation expense | 10.2 | 9.6 | 8.2 | 5.0 | 6.1 | ||||||||||||||||||||||||
Foreign currency transaction losses (gains), net | 0.9 | 0.8 | (1.8) | (1.8) | (0.5) | ||||||||||||||||||||||||
Pension termination settlement(b)
|
— | — | — | 17.2 | — | ||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$ | 202.2 | $ | 190.7 | $ | 164.7 | $ | 135.7 | $ | 152.3 |
Declaration Date | Dividend Per Share | Record Date |
Cash Payment Amount(1)(2)
|
Payment Date | ||||||||||||||||||||||
February 24, 2020 | $0.12 | March 16, 2020 | $5.5 | March 27, 2020 | ||||||||||||||||||||||
May 7, 2020 | $0.12 | May 22, 2020 | $5.4 | June 19, 2020 | ||||||||||||||||||||||
August 6, 2020 | $0.12 | August 21, 2020 | $5.4 | September 18, 2020 | ||||||||||||||||||||||
November 5, 2020 | $0.13 | November 20, 2020 | $5.7 | December 18, 2020 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Amounts | % of Net sales | % of Net sales, less excise taxes | Amounts | % of Net sales | % of Net sales, less excise taxes | |||||||||||||||||||||||||||||||||||
Net sales | $ | 287.4 | $ | 16,957.9 | 100.0 | % | — | % | $ | 16,670.5 | 100.0 | % | — | % | |||||||||||||||||||||||||||
Net sales — Cigarettes | 417.8 | 11,310.5 | 66.7 | 61.7 | 10,892.7 | 65.3 | 59.7 | ||||||||||||||||||||||||||||||||||
Net sales — Food/Non-food | (130.4) | 5,647.4 | 33.3 | 38.3 | 5,777.8 | 34.7 | 40.3 | ||||||||||||||||||||||||||||||||||
Net sales, less excise taxes (non-GAAP)(2)
|
287.9 | 13,617.1 | 80.3 | 100.0 | 13,329.2 | 80.0 | 100.0 | ||||||||||||||||||||||||||||||||||
Gross profit(3)(4)
|
(35.9) | 888.3 | 5.2 | 6.5 | 924.2 | 5.5 | 6.9 | ||||||||||||||||||||||||||||||||||
Warehousing and distribution expenses
|
(24.5) | 541.7 | 3.2 | 4.0 | 566.2 | 3.4 | 4.2 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses
|
(13.2) | 242.2 | 1.4 | 1.8 | 255.4 | 1.5 | 1.9 | ||||||||||||||||||||||||||||||||||
Amortization of intangible assets
|
(0.3) | 9.7 | 0.1 | 0.1 | 10.0 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||
Income from operations | 2.1 | 94.7 | 0.6 | 0.7 | 92.6 | 0.6 | 0.7 | ||||||||||||||||||||||||||||||||||
Interest expense, net | (3.9) | (10.5) | 0.1 | 0.1 | (14.4) | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||
Foreign currency transaction gains (losses), net | (0.1) | (0.9) | — | — | (0.8) | — | — | ||||||||||||||||||||||||||||||||||
Income before taxes | 5.9 | 83.3 | 0.5 | 0.6 | 77.4 | 0.5 | 0.6 | ||||||||||||||||||||||||||||||||||
Provision for income taxes
|
0.4 | (20.1) | 0.1 | 0.1 | (19.7) | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||
Net income | 5.5 | 63.2 | 0.4 | 0.5 | 57.7 | 0.3 | 0.4 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA
(non-GAAP)(5)
|
11.5 | 202.2 | 1.2 | 1.5 | 190.7 | 1.1 | 1.4 |
2020 | 2019 | Increase (Decrease) | |||||||||||||||||||||
Product Category | Net Sales | Net Sales | Amounts | Percentage | |||||||||||||||||||
Food | $ | 1,575.8 | $ | 1,746.4 | $ | (170.6) | (9.8) | % | |||||||||||||||
Fresh | 509.3 | 502.8 | 6.5 | 1.3 | % | ||||||||||||||||||
Candy | 1,004.0 | 1,039.0 | (35.0) | (3.4) | % | ||||||||||||||||||
OTP | 1,558.6 | 1,438.9 | 119.7 | 8.3 | % | ||||||||||||||||||
Health, beauty & general (“HB&G”) | 801.3 | 847.2 | (45.9) | (5.4) | % | ||||||||||||||||||
Beverages | 197.2 | 202.1 | (4.9) | (2.4) | % | ||||||||||||||||||
Equipment/other | 1.2 | 1.4 | (0.2) | N/A | |||||||||||||||||||
Total food/non-food products
|
$ | 5,647.4 | $ | 5,777.8 | $ | (130.4) | (2.3) | % |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Gross Profit | Amounts | % of Net sales | % of Net sales, less excise taxes | Amounts | % of Net sales | % of Net sales, less excise taxes | |||||||||||||||||||||||||||||||||||
Net sales | $ | 287.4 | $ | 16,957.9 | 100.0 | % | — | % | $ | 16,670.5 | 100.0 | % | — | % | |||||||||||||||||||||||||||
Net sales, less excise taxes
(non-GAAP)(2)
|
287.9 | 13,617.1 | 80.3 | 100.0 | 13,329.2 | 80.0 | 100.0 | ||||||||||||||||||||||||||||||||||
Components of gross profit: | |||||||||||||||||||||||||||||||||||||||||
Cigarette inventory holding gains(3)
|
$ | 8.8 | $ | 31.8 | 0.19 | % | 0.23 | % | $ | 23.0 | 0.14 | % | 0.17 | % | |||||||||||||||||||||||||||
Other inventory holding gains(4)
|
(6.9) | — | — | — | 6.9 | 0.04 | 0.05 | ||||||||||||||||||||||||||||||||||
LIFO expense(5)
|
(3.1) | (30.7) | (0.18) | (0.23) | (27.6) | (0.17) | (0.21) | ||||||||||||||||||||||||||||||||||
Remaining gross profit
(non-GAAP)(6)
|
(34.7) | 887.2 | 5.23 | 6.52 | 921.9 | 5.53 | 6.92 | ||||||||||||||||||||||||||||||||||
Gross profit
|
$ | (35.9) | $ | 888.3 | 5.24 | % | 6.52 | % | $ | 924.2 | 5.54 | % | 6.93 | % |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income | $ | 63.2 | $ | 57.7 | $ | 45.5 | |||||||||||
Interest expense, net(1)
|
10.5 | 14.4 | 13.7 | ||||||||||||||
Provision for income taxes | 20.1 | 19.7 | 14.4 | ||||||||||||||
Depreciation and amortization | 66.6 | 60.9 | 59.5 | ||||||||||||||
LIFO expense | 30.7 | 27.6 | 25.2 | ||||||||||||||
Stock-based compensation expense | 10.2 | 9.6 | 8.2 | ||||||||||||||
Foreign currency transaction losses (gains), net | 0.9 | 0.8 | (1.8) | ||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$ | 202.2 | $ | 190.7 | $ | 164.7 |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Net sales | $ | 16,957.9 | $ | 16,670.5 | $ | 16,395.3 | ||||||||||||||||||||
Excise taxes(2)
|
(3,340.8) | (3,341.3) | (3,491.4) | |||||||||||||||||||||||
Net sales, less excise taxes (non-GAAP) | $ | 13,617.1 | $ | 13,329.2 | $ | 12,903.9 | ||||||||||||||||||||
Gross profit(3)(4)
|
$ | 888.3 | $ | 924.2 | $ | 867.5 | ||||||||||||||||||||
Cigarette inventory holding gains | (31.8) | (23.0) | (19.6) | |||||||||||||||||||||||
Other inventory holding gains(5)
|
— | (6.9) | (7.4) | |||||||||||||||||||||||
LIFO expense | 30.7 | 27.6 | 25.2 | |||||||||||||||||||||||
Remaining gross profit (non-GAAP) | $ | 887.2 | $ | 921.9 | $ | 865.7 | ||||||||||||||||||||
Gross profit % | 5.24 | % | 5.54 | % | 5.29 | % | ||||||||||||||||||||
Gross profit % less excise taxes (non-GAAP) | 6.52 | % | 6.93 | % | 6.72 | % | ||||||||||||||||||||
Remaining gross profit % (non-GAAP) | 5.23 | % | 5.53 | % | 5.28 | % | ||||||||||||||||||||
Remaining gross profit % less excise taxes (non-GAAP) | 6.52 | % | 6.92 | % | 6.71 | % |
Year Ended December 31, | ||||||||||||||||||||
Cigarettes: | 2020 | 2019 | 2018 | |||||||||||||||||
Net sales | $ | 11,310.5 | $ | 10,892.7 | $ | 10,974.5 | ||||||||||||||
Excise taxes(2)
|
(2,909.0) | (2,929.6) | (3,082.4) | |||||||||||||||||
Net sales, less excise taxes (non-GAAP) | $ | 8,401.5 | $ | 7,963.1 | $ | 7,892.1 | ||||||||||||||
Gross profit(3)
|
$ | 223.6 | $ | 212.4 | $ | 225.6 | ||||||||||||||
Cigarette inventory holding gains | (31.8) | (23.0) | (19.6) | |||||||||||||||||
Other inventory holding gains(5)
|
— | — | (7.4) | |||||||||||||||||
LIFO expense | 29.1 | 24.2 | 22.1 | |||||||||||||||||
Remaining gross profit (non-GAAP) | $ | 220.9 | $ | 213.6 | $ | 220.7 | ||||||||||||||
Gross profit % | 1.98 | % | 1.95 | % | 2.06 | % | ||||||||||||||
Gross profit % less excise taxes (non-GAAP) | 2.66 | % | 2.67 | % | 2.86 | % | ||||||||||||||
Remaining gross profit % (non-GAAP) | 1.95 | % | 1.96 | % | 2.01 | % | ||||||||||||||
Remaining gross profit % less excise taxes (non-GAAP) | 2.63 | % | 2.68 | % | 2.80 | % |
Year Ended December 31, | ||||||||||||||||||||
Food/Non-food: | 2020 | 2019 | 2018 | |||||||||||||||||
Net sales | $ | 5,647.4 | $ | 5,777.8 | $ | 5,420.8 | ||||||||||||||
Excise taxes(2)
|
(431.8) | (411.7) | (409.0) | |||||||||||||||||
Net sales, less excise taxes (non-GAAP) | $ | 5,215.6 | $ | 5,366.1 | $ | 5,011.8 | ||||||||||||||
Gross profit(4)
|
$ | 664.7 | $ | 711.8 | $ | 641.9 | ||||||||||||||
Other inventory holding gains(5)
|
— | (6.9) | — | |||||||||||||||||
LIFO expense | 1.6 | 3.4 | 3.1 | |||||||||||||||||
Remaining gross profit (non-GAAP) | $ | 666.3 | $ | 708.3 | $ | 645.0 | ||||||||||||||
Gross profit % | 11.77 | % | 12.32 | % | 11.84 | % | ||||||||||||||
Gross profit % less excise taxes (non-GAAP) | 12.74 | % | 13.26 | % | 12.81 | % | ||||||||||||||
Remaining gross profit % (non-GAAP) | 11.80 | % | 12.26 | % | 11.90 | % | ||||||||||||||
Remaining gross profit % less excise taxes (non-GAAP) | 12.78 | % | 13.20 | % | 12.87 | % |
Year Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Gross profit | $ | 888.3 | $ | 924.2 | $ | 867.5 | ||||||||||||||
Cigarette inventory holding gains(2)
|
(31.8) | (23.0) | (19.6) | |||||||||||||||||
Other inventory holding gains(3)
|
— | (6.9) | (7.4) | |||||||||||||||||
LIFO expense | 30.7 | 27.6 | 25.2 | |||||||||||||||||
Remaining gross profit (non-GAAP) | $ | 887.2 | $ | 921.9 | $ | 865.7 | ||||||||||||||
Warehousing and distribution expenses | $ | 541.7 | $ | 566.2 | $ | 540.6 | ||||||||||||||
Selling, general and administrative expenses | 242.2 | 255.4 | 245.1 | |||||||||||||||||
Amortization of intangible assets | 9.7 | 10.0 | 10.0 | |||||||||||||||||
Total operating expenses | $ | 793.6 | $ | 831.6 | $ | 795.7 | ||||||||||||||
Warehouse and distribution expense as a percentage of remaining gross profit (non-GAAP)
|
61.1 | % | 61.4 | % | 62.4 | % | ||||||||||||||
Selling, general and administrative expense as a percentage of remaining gross profit (non-GAAP)
|
27.3 | % | 27.7 | % | 28.3 | % | ||||||||||||||
Amortization of intangible assets as a percentage of remaining gross profit (non-GAAP)
|
1.1 | % | 1.1 | % | 1.2 | % | ||||||||||||||
Total operating expense as a percentage of remaining gross profit (non-GAAP)
|
89.4 | % | 90.2 | % | 91.9 | % |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||
Accounts receivable, net | $ | 33.1 | $ | (5.2) | $ | 38.3 | ||||||||||||||
Other receivables, net | (9.0) | (6.2) | (2.8) | |||||||||||||||||
Inventories, net | (119.8) | (5.0) | (114.8) | |||||||||||||||||
Deposits, prepayments and other non-current assets | 20.2 | (42.9) | 63.1 | |||||||||||||||||
Accounts payable | (1.2) | (8.6) | 7.4 | |||||||||||||||||
Cigarette and tobacco taxes payable | 21.5 | (20.0) | 41.5 | |||||||||||||||||
Pension, claims, accrued and other long-term liabilities
|
39.0 | 17.7 | 21.3 | |||||||||||||||||
Net cash (used in) provided by changes in operating assets and liabilities
|
$ | (16.2) | $ | (70.2) | $ | 54.0 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Amounts borrowed, net | $ | 258.0 | $ | 324.8 | |||||||
Outstanding letters of credit | 19.5 | 16.7 | |||||||||
Amounts available to borrow(1)
|
402.4 | 341.7 | |||||||||
Average borrowings for the year(2)
|
259.5 | 303.2 | |||||||||
Range of borrowings for the year | 69.0 - 499.3 | 141.7 - 508.0 |
Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years | |||||||||||||||||||||||||
Credit Facility(1)
|
$ | 258.0 | $ | — | $ | 258.0 | $ | — | $ | — | |||||||||||||||||||
Purchase obligations(2)
|
18.2 | 6.9 | 10.0 | 1.3 | — | ||||||||||||||||||||||||
Letters of credit | 19.5 | 19.5 | — | — | — | ||||||||||||||||||||||||
Operating leases(3)
|
256.9 | 41.8 | 70.4 | 52.9 | 91.8 | ||||||||||||||||||||||||
Finance leases(4)
|
116.6 | 19.0 | 36.4 | 32.3 | 28.9 | ||||||||||||||||||||||||
Total contractual obligations(5)
|
$ | 669.2 | $ | 87.2 | $ | 374.8 | $ | 86.5 | $ | 120.7 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Current | Long-Term | Total | Current | Long-Term | Total | ||||||||||||||||||||||||||||||
Gross claims liabilities: | |||||||||||||||||||||||||||||||||||
Workers’ compensation
|
$ | 9.7 | $ | 28.8 | $ | 38.5 | $ | 8.5 | $ | 26.6 | $ | 35.1 | |||||||||||||||||||||||
Auto and general insurance
|
7.6 | 9.4 | 17.0 | 6.8 | 9.5 | 16.3 | |||||||||||||||||||||||||||||
Health and welfare
|
5.2 | — | 5.2 | 5.1 | — | 5.1 | |||||||||||||||||||||||||||||
Total gross claims liabilities | $ | 22.5 | $ | 38.2 | $ | 60.7 | $ | 20.4 | $ | 36.1 | $ | 56.5 | |||||||||||||||||||||||
Insurance recoverables | $ | (4.1) | $ | (15.4) | $ | (19.5) | $ | (3.1) | $ | (14.4) | $ | (17.5) | |||||||||||||||||||||||
Reserves, net: | |||||||||||||||||||||||||||||||||||
Workers’ compensation
|
$ | 8.4 | $ | 18.1 | $ | 26.5 | $ | 7.3 | $ | 16.4 | $ | 23.7 | |||||||||||||||||||||||
Auto and general insurance
|
4.8 | 4.7 | 9.5 | 4.9 | 5.3 | 10.2 | |||||||||||||||||||||||||||||
Health and welfare
|
5.2 | — | 5.2 | 5.1 | — | 5.1 | |||||||||||||||||||||||||||||
Reserves, net | $ | 18.4 | $ | 22.8 | $ | 41.2 | $ | 17.3 | $ | 21.7 | $ | 39.0 |
Page | |||||
(a) Financial Statements filed as part of this Annual Report on Form 10-K | |||||
1. Financial Statements | |||||
A. Audited Financial Statements | |||||
Notes to Consolidated Financial Statements
|
/s/ Deloitte & Touche LLP | ||
Dallas, Texas | ||
March 1, 2021 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 22.8 | $ | 14.1 | |||||||
Accounts receivable, net of allowance for credit losses of $16.5 and $14.5 at December 31, 2020 and 2019, respectively (Note 3)
|
362.6 | 402.9 | |||||||||
Other receivables, net (Note 3) | 105.5 | 96.2 | |||||||||
Inventories, net (Note 4) | 758.5 | 670.9 | |||||||||
Deposits and prepayments (Note 3) | 87.8 | 116.0 | |||||||||
Total current assets | 1,337.2 | 1,300.1 | |||||||||
Property and equipment, net (Note 5) | 276.0 | 249.9 | |||||||||
Operating lease right-of-use assets (Note 6) | 203.6 | 199.8 | |||||||||
Goodwill (Note 7) | 72.8 | 72.8 | |||||||||
Other intangible assets, net (Note 7) | 40.7 | 47.2 | |||||||||
Other non-current assets, net (Note 3) | 24.4 | 28.6 | |||||||||
Total assets | $ | 1,954.7 | $ | 1,898.4 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 190.9 | $ | 192.2 | |||||||
Book overdrafts (Note 2) | 31.1 | 23.9 | |||||||||
Cigarette and tobacco taxes payable | 302.9 | 280.1 | |||||||||
Operating lease liabilities (Note 6) | 32.9 | 39.5 | |||||||||
Accrued liabilities (Note 3) | 188.0 | 151.0 | |||||||||
Total current liabilities | 745.8 | 686.7 | |||||||||
Long-term debt (Note 8) | 344.5 | 382.1 | |||||||||
Deferred income taxes (Note 10) | 2.1 | 22.6 | |||||||||
Long-term operating lease liabilities (Note 6) | 179.7 | 173.4 | |||||||||
Other long-term liabilities | 12.5 | 5.6 | |||||||||
Claims liabilities (Note 2) | 38.2 | 36.1 | |||||||||
Total liabilities | 1,322.8 | 1,306.5 | |||||||||
Commitments and contingencies (Note 9) | |||||||||||
Stockholders’ equity (Note 14): | |||||||||||
Common stock, $0.01 par value (150,000,000 shares authorized; 52,918,347 and 52,702,551 shares issued; 44,921,547 and 45,113,722 shares outstanding at December 31, 2020 and 2019, respectively)
|
0.5 | 0.5 | |||||||||
Additional paid-in capital | 298.3 | 290.6 | |||||||||
Treasury stock at cost (7,996,800 and 7,588,829 shares of common stock at December 31, 2020 and 2019, respectively)
|
(123.0) | (112.6) | |||||||||
Retained earnings | 459.7 | 418.5 | |||||||||
Accumulated other comprehensive loss (Note 15) | (3.6) | (5.1) | |||||||||
Total stockholders’ equity | 631.9 | 591.9 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,954.7 | $ | 1,898.4 |
|
Year Ended December 31, | ||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 16,957.9 | $ | 16,670.5 | $ | 16,395.3 | |||||||||||
Cost of goods sold | 16,069.6 | 15,746.3 | 15,527.8 | ||||||||||||||
Gross profit | 888.3 | 924.2 | 867.5 | ||||||||||||||
Warehousing and distribution expenses | 541.7 | 566.2 | 540.6 | ||||||||||||||
Selling, general and administrative expenses | 242.2 | 255.4 | 245.1 | ||||||||||||||
Amortization of intangible assets | 9.7 | 10.0 | 10.0 | ||||||||||||||
Total operating expenses | 793.6 | 831.6 | 795.7 | ||||||||||||||
Income from operations | 94.7 | 92.6 | 71.8 | ||||||||||||||
Interest expense, net | (10.5) | (14.4) | (13.7) | ||||||||||||||
Foreign currency transaction (losses) gains, net | (0.9) | (0.8) | 1.8 | ||||||||||||||
Income before income taxes | 83.3 | 77.4 | 59.9 | ||||||||||||||
Provision for income taxes (Note 10) | (20.1) | (19.7) | (14.4) | ||||||||||||||
Net income | $ | 63.2 | $ | 57.7 | $ | 45.5 | |||||||||||
Earnings per share (Note 12): | |||||||||||||||||
Basic | $ | 1.40 | $ | 1.26 | $ | 0.99 | |||||||||||
Diluted | $ | 1.39 | $ | 1.25 | $ | 0.99 | |||||||||||
Weighted-average shares outstanding (Note 12): | |||||||||||||||||
Basic | 45.1 | 45.7 | 46.0 | ||||||||||||||
Diluted | 45.4 | 46.0 | 46.1 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income | $ | 63.2 | $ | 57.7 | $ | 45.5 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Defined benefit plan adjustments (Note 15) | (0.4) | (0.2) | (0.2) | ||||||||||||||
Foreign currency translation gain (loss), net (Note 15) | 1.9 | 2.9 | (5.5) | ||||||||||||||
Other comprehensive income (loss), net of tax
|
1.5 | 2.7 | (5.7) | ||||||||||||||
Comprehensive income | $ | 64.7 | $ | 60.4 | $ | 39.8 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Total stockholders’ equity, beginning balances | $ | 591.9 | $ | 567.0 | $ | 555.2 | ||||||||||||||
Common stock: | ||||||||||||||||||||
Beginning and ending balances | $ | 0.5 | $ | 0.5 | $ | 0.5 | ||||||||||||||
Additional paid-in capital: | ||||||||||||||||||||
Beginning balances | $ | 290.6 | $ | 283.3 | $ | 276.8 | ||||||||||||||
Common stock issued, net of shares withheld for employee taxes | (2.5) | (2.3) | (1.7) | |||||||||||||||||
Stock-based compensation expense | 10.2 | 9.6 | 8.2 | |||||||||||||||||
Ending balances | $ | 298.3 | $ | 290.6 | $ | 283.3 | ||||||||||||||
Treasury stock: | ||||||||||||||||||||
Beginning balances | $ | (112.6) | $ | (90.6) | $ | (75.1) | ||||||||||||||
Repurchase of common stock | (10.4) | (22.0) | (15.5) | |||||||||||||||||
Ending balances | $ | (123.0) | $ | (112.6) | $ | (90.6) | ||||||||||||||
Retained earnings: | ||||||||||||||||||||
Beginning balances | $ | 418.5 | $ | 381.6 | $ | 355.1 | ||||||||||||||
Net income | 63.2 | 57.7 | 45.5 | |||||||||||||||||
Dividends declared | (22.0) | (20.8) | (19.0) | |||||||||||||||||
Ending balances | $ | 459.7 | $ | 418.5 | $ | 381.6 | ||||||||||||||
Accumulated other comprehensive loss: | ||||||||||||||||||||
Beginning balances | $ | (5.1) | $ | (7.8) | $ | (2.1) | ||||||||||||||
Other comprehensive income (loss) | 1.5 | 2.7 | (5.7) | |||||||||||||||||
Ending balances | $ | (3.6) | $ | (5.1) | $ | (7.8) | ||||||||||||||
Total stockholders’ equity, ending balances | $ | 631.9 | $ | 591.9 | $ | 567.0 | ||||||||||||||
Common stock shares: | ||||||||||||||||||||
Beginning share balance | 52.7 | 52.5 | 52.4 | |||||||||||||||||
Common stock issued, net of shares withheld for employee taxes | 0.2 | 0.2 | 0.1 | |||||||||||||||||
Ending share balance | 52.9 | 52.7 | 52.5 | |||||||||||||||||
Treasury stock shares: | ||||||||||||||||||||
Beginning share balance | (7.6) | (6.8) | (6.2) | |||||||||||||||||
Repurchase of common stock | (0.4) | (0.8) | (0.6) | |||||||||||||||||
Ending share balance | (8.0) | (7.6) | (6.8) | |||||||||||||||||
Total shares outstanding | 44.9 | 45.1 | 45.7 | |||||||||||||||||
Dividends declared per share | $ | 0.49 | $ | 0.45 | $ | 0.41 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 63.2 | $ | 57.7 | $ | 45.5 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
LIFO and inventory provisions | 34.2 | 27.7 | 25.9 | ||||||||||||||
Amortization of debt issuance costs | 0.8 | 0.8 | 0.8 | ||||||||||||||
Stock-based compensation expense | 10.2 | 9.6 | 8.2 | ||||||||||||||
Credit loss expense, net | 7.6 | 7.1 | 3.6 | ||||||||||||||
Impairment charge and other | 0.6 | — | — | ||||||||||||||
Loss on disposals | 0.4 | — | 0.6 | ||||||||||||||
Depreciation and amortization | 66.6 | 60.9 | 59.5 | ||||||||||||||
Foreign currency transaction losses (gains) | 0.9 | 0.8 | (1.8) | ||||||||||||||
Deferred income taxes | (20.5) | (4.7) | (0.1) | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable, net | 33.1 | (5.2) | 29.0 | ||||||||||||||
Other receivables, net | (9.0) | (6.2) | 4.3 | ||||||||||||||
Inventories, net | (119.8) | (5.0) | (34.4) | ||||||||||||||
Deposits, prepayments and other non-current assets | 20.2 | (42.9) | 23.6 | ||||||||||||||
Accounts payable | (1.2) | (8.6) | 31.0 | ||||||||||||||
Cigarette and tobacco taxes payable | 21.5 | (20.0) | (2.3) | ||||||||||||||
Claims, accrued and other long-term liabilities | 39.0 | 17.7 | 17.8 | ||||||||||||||
Net cash provided by operating activities | 147.8 | 89.7 | 211.2 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Acquisition of business, net of cash acquired | — | (2.5) | (2.5) | ||||||||||||||
Additions to property and equipment, net | (27.2) | (22.8) | (20.1) | ||||||||||||||
Capitalization of software and related development costs | (3.5) | (6.0) | (2.0) | ||||||||||||||
Proceeds from sale of property and equipment | — | 0.3 | 0.2 | ||||||||||||||
Proceeds from sale of other non-current assets | 1.1 | — | — | ||||||||||||||
Net cash used in investing activities | (29.6) | (31.0) | (24.4) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Borrowings under revolving credit facility | 1,817.1 | 1,692.6 | 1,769.9 | ||||||||||||||
Repayments under revolving credit facility | (1,883.9) | (1,687.8) | (1,938.1) | ||||||||||||||
Payments of finance leases | (13.1) | (5.6) | (3.0) | ||||||||||||||
Dividends paid | (22.3) | (20.7) | (18.9) | ||||||||||||||
Repurchases of common stock | (10.4) | (22.0) | (15.5) | ||||||||||||||
Tax withholdings related to net share settlements of restricted stock units | (2.5) | (2.2) | (1.7) | ||||||||||||||
Increase (Decrease) in book overdrafts, net | 7.2 | (25.5) | 4.1 | ||||||||||||||
Net cash used in financing activities | (107.9) | (71.2) | (203.2) | ||||||||||||||
Effects of changes in foreign exchange rates | (1.6) | (0.7) | 2.1 | ||||||||||||||
Change in cash, cash equivalents and restricted cash | 8.7 | (13.2) | (14.3) | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 14.1 | 27.3 | 41.6 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 22.8 | $ | 14.1 | $ | 27.3 | |||||||||||
Supplemental disclosures: | |||||||||||||||||
Cash received (paid) during the period for: | |||||||||||||||||
Income taxes, net | $ | (29.8) | $ | (18.7) | $ | 10.1 | |||||||||||
Interest paid | $ | (6.2) | $ | (12.0) | $ | (13.0) | |||||||||||
Unpaid property and equipment purchases included in accrued liabilities | $ | — | $ | — | $ | 0.1 | |||||||||||
Non-cash transactions between other non-current assets and other long-term liabilities | $ | — | $ | 4.7 | $ | — | |||||||||||
Useful Life in Years | |||||
Office furniture and equipment |
3-10
|
||||
Delivery equipment |
3-10
|
||||
Warehouse equipment |
5-15
|
||||
Leasehold improvements |
3-25
|
||||
Buildings |
15-25
|
Useful Life in Years | |||||
Customer relationships |
9-15
|
||||
Non-competition agreements |
1-5
|
||||
Trade names |
1-2
|
||||
Internally developed and other purchased software |
3-7
|
||||
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance, beginning of year | $ | 14.5 | $ | 8.3 | $ | 7.3 | |||||||||||
Net additions charged to operations(1)
|
7.6 | 7.1 | 3.6 | ||||||||||||||
Less: Write-offs and adjustments | (5.6) | (0.9) | (2.6) | ||||||||||||||
Balance, end of year | $ | 16.5 | $ | 14.5 | $ | 8.3 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Vendor receivables, net | $ | 82.0 | $ | 73.1 | |||||||
Insurance recoverables, current | 4.1 | 3.1 | |||||||||
Other miscellaneous receivables(1)
|
19.4 | 20.0 | |||||||||
Total other receivables, net | $ | 105.5 | $ | 96.2 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Vendor prepayments | $ | 59.6 | $ | 85.8 | |||||||
Prepaid taxes | 2.0 | 0.5 | |||||||||
Deposits(1)
|
7.1 | 7.0 | |||||||||
Racking allowances, current | 5.6 | 6.8 | |||||||||
Other prepayments(2)
|
13.5 | 15.9 | |||||||||
Total deposits and prepayments | $ | 87.8 | $ | 116.0 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Insurance recoverables | $ | 15.4 | $ | 14.4 | |||||||
Racking allowances, net | 1.6 | 3.5 | |||||||||
Insurance deposits | 2.9 | 3.4 | |||||||||
Debt issuance costs | 0.1 | 1.0 | |||||||||
Other assets | 4.4 | 6.3 | |||||||||
Total other non-current assets, net | $ | 24.4 | $ | 28.6 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Accrued payroll and other benefits(1)
|
$ | 52.3 | $ | 47.7 | |||||||
Accrued customer incentives payable | 43.4 | 37.3 | |||||||||
Claims liabilities, current | 22.5 | 20.4 | |||||||||
Finance lease liabilities | 15.3 | 8.4 | |||||||||
Income taxes payable | 14.1 | 2.7 | |||||||||
Indirect taxes | 10.2 | 9.3 | |||||||||
Vendor advances | 3.1 | 3.1 | |||||||||
Other accrued expenses(2)
|
27.1 | 22.1 | |||||||||
Total accrued liabilities | $ | 188.0 | $ | 151.0 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Inventories at FIFO, net of reserves | $ | 993.9 | $ | 875.6 | |||||||
Less: LIFO reserve | (235.4) | (204.7) | |||||||||
Total inventories, net of reserves
|
$ | 758.5 | $ | 670.9 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Delivery, warehouse and office equipment(1)
|
$ | 460.3 | $ | 409.1 | |||||||
Leasehold improvements | 90.6 | 87.8 | |||||||||
Land and buildings(2)
|
52.0 | 52.4 | |||||||||
Construction in progress | 16.9 | 1.0 | |||||||||
619.8 | 550.3 | ||||||||||
Less: Accumulated depreciation and amortization | (343.8) | (300.4) | |||||||||
Total property and equipment, net
|
$ | 276.0 | $ | 249.9 |
Year Ended December 31, | ||||||||||||||
Assets | Classification | 2020 | 2019 | |||||||||||
Operating | Operating lease ROU assets | $ | 203.6 | $ | 199.8 | |||||||||
Finance | Property and equipment, net | 94.8 | 59.8 | |||||||||||
Total leases
|
$ | 298.4 | $ | 259.6 | ||||||||||
Liabilities | ||||||||||||||
Current: | ||||||||||||||
Operating
|
Operating lease liabilities | $ | 32.9 | $ | 39.5 | |||||||||
Finance
|
Accrued liabilities | 15.3 | 8.4 | |||||||||||
Non-current: | ||||||||||||||
Operating
|
Long-term operating lease liabilities | 179.7 | 173.4 | |||||||||||
Finance
|
Long-term debt | 86.5 | 57.3 | |||||||||||
Total lease liabilities | $ | 314.4 | $ | 278.6 |
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Operating lease cost | $ | 48.6 | $ | 51.8 | |||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of leased assets
|
14.0 | 6.0 | |||||||||||||||||||||
Interest on lease liabilities
|
3.9 | 2.2 | |||||||||||||||||||||
Short-term lease cost | 1.5 | 1.7 | |||||||||||||||||||||
Variable lease cost | 5.9 | 20.7 | |||||||||||||||||||||
Net lease cost | $ | 73.9 | $ | 82.4 |
Operating leases | Finance leases | Total | |||||||||||||||
2021 | $ | 41.8 | $ | 19.0 | $ | 60.8 | |||||||||||
2022 | 38.5 | 18.5 | 57.0 | ||||||||||||||
2023 | 31.9 | 17.9 | 49.8 | ||||||||||||||
2024 | 27.9 | 17.3 | 45.2 | ||||||||||||||
2025 | 25.0 | 15.0 | 40.0 | ||||||||||||||
2026 and thereafter | 91.8 | 28.9 | 120.7 | ||||||||||||||
Total lease payments | 256.9 | 116.6 | 373.5 | ||||||||||||||
Less: interest | (44.3) | (14.8) | (59.1) | ||||||||||||||
Present value of lease liabilities | $ | 212.6 | $ | 101.8 | $ | 314.4 |
Year Ended December 31, | |||||||||||||||||
Lease term | 2020 | 2019 | |||||||||||||||
Weighted-average remaining lease term (years): | |||||||||||||||||
Operating
|
7.3 | 7.3 | |||||||||||||||
Finance
|
7.4 | 7.6 | |||||||||||||||
Discount rate | |||||||||||||||||
Weighted-average discount rate: | |||||||||||||||||
Operating
|
4.7 | % | 4.9 | % | |||||||||||||
Finance
|
4.7 | % | 4.8 | % |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Operating cash flows used by operating leases
|
$ | 48.5 | $ | 51.3 | ||||||||||||||||
Operating cash flows used by finance leases
|
3.8 | 2.2 | ||||||||||||||||||
Financing cash flows used by finance leases
|
13.1 | 5.6 | ||||||||||||||||||
Lease liabilities arising from obtaining new ROU assets: | ||||||||||||||||||||
Operating leases
|
$ | 41.8 | $ | 11.1 | ||||||||||||||||
Finance leases
|
41.3 | 41.9 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | ||||||||||||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||||||||||||||
Customer relationships | $ | 48.0 | $ | (23.9) | $ | 24.1 | $ | 48.0 | $ | (20.0) | $ | 28.0 | |||||||||||||||||||||||
Non-competition agreements | 5.0 | (4.8) | 0.2 | 5.0 | (4.4) | 0.6 | |||||||||||||||||||||||||||||
Trade names | 3.8 | (3.8) | — | 3.8 | (3.8) | — | |||||||||||||||||||||||||||||
Internally developed and other purchased software
|
45.3 | (28.9) | 16.4 | 42.0 | (23.4) | 18.6 | |||||||||||||||||||||||||||||
Total other intangible assets
|
$ | 102.1 | $ | (61.4) | $ | 40.7 | $ | 98.8 | $ | (51.6) | $ | 47.2 |
Year ending December 31,
|
|||||
2021 | $ | 9.8 | |||
2022 | 8.9 | ||||
2023 | 5.9 | ||||
2024 | 4.6 | ||||
2025 | 4.2 | ||||
2026 and thereafter | 7.3 | ||||
Total | $ | 40.7 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Amounts borrowed (Credit Facility) | $ | 258.0 | $ | 324.8 | |||||||
Obligations under finance leases | 86.5 | 57.3 | |||||||||
Total long-term debt
|
$ | 344.5 | $ | 382.1 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Amounts borrowed, net | $ | 258.0 | $ | 324.8 | |||||||
Outstanding letters of credit | 19.5 | 16.7 | |||||||||
Amounts available to borrow(1)
|
402.4 | 341.7 | |||||||||
Average borrowings | 259.5 | 303.2 | |||||||||
Range of borrowings |
69.0 - 499.3
|
141.7 - 508.0
|
|||||||||
Unamortized debt issuance costs | 0.9 | 1.7 | |||||||||
Weighted-average interest rate(2)
|
1.8 | % | 3.4 | % |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Unused credit facility and letter of credit participation(1)
|
$ | 1.4 | $ | 1.2 | $ | 1.2 | |||||||||||
Amortization of debt issuance costs(1)
|
0.8 | 0.8 | 0.8 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 32.8 | $ | 17.4 | $ | 10.6 | |||||||||||
State | 5.5 | 4.4 | 3.7 | ||||||||||||||
Foreign | 1.2 | 1.8 | — | ||||||||||||||
Total current tax provision | 39.5 | 23.6 | 14.3 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | (15.7) | (3.1) | (0.5) | ||||||||||||||
State | (3.8) | (0.9) | 0.1 | ||||||||||||||
Foreign | 0.1 | 0.1 | 0.5 | ||||||||||||||
Total deferred tax (benefit) provision | (19.4) | (3.9) | 0.1 | ||||||||||||||
Total income tax provision | $ | 20.1 | $ | 19.7 | $ | 14.4 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Federal income tax provision at the statutory rate | $ | 17.5 | 21.0 | % | $ | 16.2 | 21.0 | % | $ | 12.6 | 21.0 | % | |||||||||||||||||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||||||||||||||||
State income taxes, net of federal benefit | 1.1 | 1.3 | 1.9 | 2.5 | 2.9 | 4.8 | |||||||||||||||||||||||||||||
Foreign tax rate differential | 0.3 | 0.4 | 0.1 | 0.1 | — | — | |||||||||||||||||||||||||||||
U.S. branch taxes | 2.5 | 3.0 | (0.1) | (0.1) | 0.5 | 0.8 | |||||||||||||||||||||||||||||
Excess tax benefits from stock-based award payments(2)
|
0.2 | 0.2 | 0.1 | 0.1 | 0.2 | 0.3 | |||||||||||||||||||||||||||||
Change in valuation allowance | (1.1) | (1.3) | 1.7 | 2.2 | — | — | |||||||||||||||||||||||||||||
Other tax credits | (0.9) | (1.1) | (1.2) | (1.6) | (1.2) | (2.0) | |||||||||||||||||||||||||||||
Other, net | 0.5 | 0.6 | 1.0 | 1.3 | (0.6) | (0.9) | |||||||||||||||||||||||||||||
Income tax provision | $ | 20.1 | 24.1 | % | $ | 19.7 | 25.5 | % | $ | 14.4 | 24.0 | % |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Deferred tax assets: | |||||||||||
Employee benefits, including post-retirement benefits | $ | 11.9 | $ | 11.8 | |||||||
Trade and other receivables | 4.1 | 3.7 | |||||||||
Inventories | 4.1 | — | |||||||||
Self-insurance reserves | 2.4 | 2.6 | |||||||||
ROU liabilities | 80.1 | 70.0 | |||||||||
Other | 3.1 | 3.0 | |||||||||
Subtotal | 105.7 | 91.1 | |||||||||
Less: valuation allowance | (0.6) | (1.7) | |||||||||
Total deferred tax assets | $ | 105.1 | $ | 89.4 | |||||||
Deferred tax liabilities: | |||||||||||
Inventories | $ | — | $ | 13.1 | |||||||
Property and equipment | 26.9 | 29.1 | |||||||||
ROU assets | 75.1 | 65.3 | |||||||||
Goodwill and intangibles | 3.0 | 2.8 | |||||||||
Other | 2.2 | 1.7 | |||||||||
Total deferred tax liabilities | $ | 107.2 | $ | 112.0 | |||||||
Net deferred tax liabilities | $ | (2.1) | $ | (22.6) | |||||||
Tax jurisdiction: | |||||||||||
Net deferred liability (Canada) | $ | (0.6) | $ | (0.5) | |||||||
Net deferred liability (U.S.) | $ | (1.5) | $ | (22.1) |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Earnings | |||||||||||||||||
Net income | $ | 63.2 | $ | 57.7 | $ | 45.5 | |||||||||||
Shares
|
|||||||||||||||||
Weighted-average common shares outstanding (basic shares)
|
45.1 | 45.7 | 46.0 | ||||||||||||||
Adjustment for assumed dilution:
|
|||||||||||||||||
Restricted stock units
|
0.2 | 0.2 | 0.1 | ||||||||||||||
Performance shares
|
0.1 | 0.1 | — | ||||||||||||||
Weighted-average shares assuming dilution (diluted shares) | 45.4 | 46.0 | 46.1 | ||||||||||||||
Earnings per share
|
|||||||||||||||||
Basic(1)
|
$ | 1.40 | $ | 1.26 | $ | 0.99 | |||||||||||
Diluted(1)
|
$ | 1.39 | $ | 1.25 | $ | 0.99 |
Number of securities to be issued upon vesting of RSUs and performance share awards | Weighted-average exercise price of vesting of RSUs and performance share awards | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) | |||||||||||||||
2007 Long-Term Incentive Plan(1)
|
1,624 | $ | 0.01 | — | |||||||||||||
2010 Long-Term Incentive Plan(2)
|
330,750 | 0.01 | — | ||||||||||||||
2019 Long-Term Incentive Plan(2)
|
430,643 | 0.01 | 3,156,745 |
December 31, 2019 | Activity during 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding | Granted | Vested / Exercised | Canceled/Forfeited | Outstanding | Exercisable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plans | Securities | Number | Price | Number | Price | Number | Price | Number | Price | Number | Price | Number | Price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 LTIP | RSUs | 1,624 | $ | 0.01 | — | $ | — | — | $ | — | — | $ | — | 1,624 | $ | 0.01 | 1,624 | $ | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 LTIP | RSUs | 442,116 | 0.01 | — |
(1)
|
— | (221,955) | 0.01 | (17,275) | 0.01 | 202,886 | 0.01 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance shares | 225,252 | 0.01 | — |
|
— | (89,547) | 0.01 | (7,841) | 0.01 | 127,864 | 0.01 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 LTIP | RSUs | 6,927 | 0.01 | 280,325 |
(1)
|
0.01 | (2,309) | 0.01 | — | — | 284,943 | 0.01 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance shares | 10,159 | 0.01 | 154,363 |
(2)
|
0.01 | (3,386) | 0.01 | (15,436) | 0.01 | 145,700 | 0.01 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 686,078 | 434,688 | (317,197) | (40,552) | 763,017 | 1,624 |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding | Weighted-Average Remaining Contractual Term (years) |
Aggregate Intrinsic Value(1)
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||
Plans | Securities | Vested |
Expected to vest(2)
|
Vested |
Expected to vest(2)
|
Vested |
Expected to vest(2)
|
|||||||||||||||||||||||||||||||||||||
2007 LTIP | RSUs | 1,624 | — | — | — | $ | 48 | $ | — | |||||||||||||||||||||||||||||||||||
2010 LTIP | RSUs | — | 195,462 | — | — | — | 5,739 | |||||||||||||||||||||||||||||||||||||
Performance shares | — | 127,261 | — | — | — | 3,736 | ||||||||||||||||||||||||||||||||||||||
2019 LTIP | RSUs | — | 275,198 | — | — | — | 8,080 | |||||||||||||||||||||||||||||||||||||
Performance shares | — | 144,243 | — | — | — | 4,235 | ||||||||||||||||||||||||||||||||||||||
Total | 1,624 | 742,164 | $ | 48 | $ | 21,790 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Aggregate intrinsic value of awards vested and exercised: | |||||||||||||||||
RSUs | $ | 5.8 | $ | 5.5 | $ | 3.8 | |||||||||||
Performance shares | 2.4 | 1.6 | 1.2 | ||||||||||||||
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Weighted-average fair value per share of grants: | |||||||||||||||||
RSUs | $ | 25.38 | $ | 29.67 | $ | 23.66 | |||||||||||
Performance shares(1)
|
$ | 25.48 | $ | 29.90 | $ | 23.78 | |||||||||||
Declaration Date | Dividend Per Share | Record Date |
Cash Payment Amount(1)(2)
|
Payment Date | ||||||||||||||||||||||
February 24, 2020 | $0.12 | March 16, 2020 | $5.5 | March 27, 2020 | ||||||||||||||||||||||
May 7, 2020 | $0.12 | May 22, 2020 | $5.4 | June 19, 2020 | ||||||||||||||||||||||
August 6, 2020 | $0.12 | August 21, 2020 | $5.4 | September 18, 2020 | ||||||||||||||||||||||
November 5, 2020 | $0.13 | November 20, 2020 | $5.7 | December 18, 2020 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Number of shares repurchased | 407,971 | 767,681 | 588,489 | ||||||||||||||
Average price per share | $ | 25.62 | $ | 28.66 | $ | 26.20 | |||||||||||
Total repurchase costs(1)
|
$ | 10.4 | $ | 22.0 | $ | 15.5 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net | |||||||||||||||||||||||||||||||||||||||||||||||||||
Before | Tax | of | Before | Tax | of | Before | Tax | of | |||||||||||||||||||||||||||||||||||||||||||||
Tax | Effect | Tax | Tax | Effect | Tax | Tax | Effect | Tax | |||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plan adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial (loss) gain during the year
|
$ | (0.5) | $ | 0.1 | $ | (0.4) | $ | (0.3) | $ | 0.1 | $ | (0.2) | $ | (0.4) | $ | 0.1 | $ | (0.3) | |||||||||||||||||||||||||||||||||||
Amortization of net actuarial gain included in net income
|
— | — | — | — | — | — | 0.1 | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||
Net (loss) gain during the year
|
(0.5) | 0.1 | (0.4) | (0.3) | 0.1 | (0.2) | (0.3) | 0.1 | (0.2) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation gain (loss) | 0.8 | 1.1 | 1.9 | 2.9 | — | 2.9 | (5.5) | — | (5.5) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | 0.3 | $ | 1.2 | $ | 1.5 | $ | 2.6 | $ | 0.1 | $ | 2.7 | $ | (5.8) | $ | 0.1 | $ | (5.7) |
Foreign | |||||||||||||||||
Defined | Currency | ||||||||||||||||
Benefit Plan | Translation | Total | |||||||||||||||
Balance as of December 31, 2017 | $ | 0.6 | $ | (2.7) | $ | (2.1) | |||||||||||
Other comprehensive loss | (0.2) | (5.5) | (5.7) | ||||||||||||||
Balance as of December 31, 2018 | $ | 0.4 | $ | (8.2) | $ | (7.8) | |||||||||||
Other comprehensive (loss) income | (0.2) | 2.9 | 2.7 | ||||||||||||||
Balance as of December 31, 2019 | $ | 0.2 | $ | (5.3) | $ | (5.1) | |||||||||||
Other comprehensive (loss) income | (0.4) | 1.9 | 1.5 | ||||||||||||||
Balance as of December 31, 2020 | $ | (0.2) | $ | (3.4) | $ | (3.6) |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales: | |||||||||||||||||
United States | $ | 15,352.3 | $ | 15,113.7 | $ | 14,844.4 | |||||||||||
Canada | 1,561.7 | 1,503.1 | 1,494.0 | ||||||||||||||
Corporate(1)
|
43.9 | 53.7 | 56.9 | ||||||||||||||
Total
|
$ | 16,957.9 | $ | 16,670.5 | $ | 16,395.3 | |||||||||||
Income (loss) before income taxes: | |||||||||||||||||
United States | $ | 116.7 | $ | 99.2 | $ | 89.7 | |||||||||||
Canada | 12.6 | 11.9 | 7.9 | ||||||||||||||
Corporate(2)
|
(46.0) | (33.7) | (37.7) | ||||||||||||||
Total
|
$ | 83.3 | $ | 77.4 | $ | 59.9 | |||||||||||
Interest expense, net(3):
|
|||||||||||||||||
United States | $ | 58.7 | $ | 56.6 | $ | 54.7 | |||||||||||
Canada | 0.7 | 1.5 | 1.0 | ||||||||||||||
Corporate(4)
|
(48.9) | (43.7) | (42.0) | ||||||||||||||
Total
|
$ | 10.5 | $ | 14.4 | $ | 13.7 | |||||||||||
Depreciation and amortization: | |||||||||||||||||
United States | $ | 45.9 | $ | 42.6 | $ | 42.1 | |||||||||||
Canada | 3.5 | 2.6 | 2.3 | ||||||||||||||
Corporate(5)
|
17.2 | 15.7 | 15.1 | ||||||||||||||
Total
|
$ | 66.6 | $ | 60.9 | $ | 59.5 | |||||||||||
Capital expenditures: | |||||||||||||||||
United States | $ | 25.6 | $ | 20.3 | $ | 18.6 | |||||||||||
Canada | 1.6 | 2.5 | 1.5 | ||||||||||||||
Total
|
$ | 27.2 | $ | 22.8 | $ | 20.1 |
December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Identifiable assets: | |||||||||||||||||
United States | $ | 1,781.0 | $ | 1,741.4 | |||||||||||||
Canada | 173.7 | 157.0 | |||||||||||||||
Total
|
$ | 1,954.7 | $ | 1,898.4 |
Year Ended December 31, | |||||||||||||||||
Product Category | 2020 | 2019 | 2018 | ||||||||||||||
Cigarettes | $ | 11,310.5 | $ | 10,892.7 | $ | 10,974.5 | |||||||||||
Food | 1,575.8 | 1,746.4 | 1,659.0 | ||||||||||||||
Fresh | 509.3 | 502.8 | 474.2 | ||||||||||||||
Candy | 1,004.0 | 1,039.0 | 992.0 | ||||||||||||||
Other tobacco products | 1,558.6 | 1,438.9 | 1,387.2 | ||||||||||||||
Health, beauty & general | 801.3 | 847.2 | 711.5 | ||||||||||||||
Beverages | 197.2 | 202.1 | 191.0 | ||||||||||||||
Equipment/other | 1.2 | 1.4 | 5.9 | ||||||||||||||
Total food/non-food products | $ | 5,647.4 | $ | 5,777.8 | $ | 5,420.8 | |||||||||||
Total net sales
|
$ | 16,957.9 | $ | 16,670.5 | $ | 16,395.3 |
Three Months Ended | |||||||||||||||||||||||
(in millions, except per share data)(1)
|
|||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||
2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||
Net sales — Cigarettes(2)
|
$ | 2,835.0 | $ | 3,000.2 | $ | 2,892.6 | $ | 2,582.7 | |||||||||||||||
Net sales — Food/Non-food(2)
|
1,417.1 | 1,502.4 | 1,371.3 | 1,356.6 | |||||||||||||||||||
Net sales(2)
|
4,252.1 | 4,502.6 | 4,263.9 | 3,939.3 | |||||||||||||||||||
Cost of goods sold(3)
|
4,030.3 | 4,267.6 | 4,050.8 | 3,720.9 | |||||||||||||||||||
Gross profit | 221.8 | 235.0 | 213.1 | 218.4 | |||||||||||||||||||
Warehousing and distribution expenses(3)
|
133.4 | 140.4 | 125.5 | 142.4 | |||||||||||||||||||
Selling, general and administrative expenses | 61.2 | 57.3 | 59.8 | 63.9 | |||||||||||||||||||
Amortization of intangible assets | 2.5 | 2.5 | 2.4 | 2.3 | |||||||||||||||||||
Total operating expenses | 197.1 | 200.2 | 187.7 | 208.6 | |||||||||||||||||||
Income from operations | 24.7 | 34.8 | 25.4 | 9.8 | |||||||||||||||||||
Interest expense, net | (2.1) | (2.1) | (2.8) | (3.5) | |||||||||||||||||||
Foreign currency transaction losses, net | (0.2) | (0.5) | — | (0.2) | |||||||||||||||||||
Income before income taxes | 22.4 | 32.2 | 22.6 | 6.1 | |||||||||||||||||||
Income tax provision | (3.4) | (9.2) | (5.7) | (1.8) | |||||||||||||||||||
Net income | 19.0 | 23.0 | 16.9 | 4.3 | |||||||||||||||||||
Basic net income per share | $ | 0.42 | $ | 0.51 | $ | 0.38 | $ | 0.09 | |||||||||||||||
Diluted net income per share | $ | 0.42 | $ | 0.51 | $ | 0.38 | $ | 0.09 | |||||||||||||||
Shares used to compute basic net income per share | 44.9 | 45.1 | 45.1 | 45.3 | |||||||||||||||||||
Shares used to compute diluted net income per share | 45.4 | 45.4 | 45.3 | 45.4 | |||||||||||||||||||
Excise taxes(2)
|
$ | 824.8 | $ | 888.3 | $ | 857.4 | $ | 770.3 | |||||||||||||||
Cigarette inventory holding gains(4)
|
9.4 | 5.6 | 7.7 | 9.1 | |||||||||||||||||||
LIFO expense | 9.2 | 5.4 | 8.3 | 7.8 | |||||||||||||||||||
Depreciation and amortization | 17.7 | 16.5 | 16.7 | 15.7 | |||||||||||||||||||
Stock-based compensation | 3.5 | 2.6 | 2.1 | 2.0 | |||||||||||||||||||
Capital expenditures | 9.3 | 8.1 | 4.8 | 5.0 |
Three Months Ended | |||||||||||||||||||||||
(in millions, except per share data)(1)
|
|||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||
Net sales — Cigarettes(2)
|
$ | 2,711.2 | $ | 2,880.0 | $ | 2,834.0 | $ | 2,467.5 | |||||||||||||||
Net sales — Food/Non-food(2)
|
1,443.6 | 1,542.6 | 1,505.0 | 1,286.6 | |||||||||||||||||||
Net sales(2)
|
4,154.8 | 4,422.6 | 4,339.0 | 3,754.1 | |||||||||||||||||||
Cost of goods sold(3)
|
3,924.3 | 4,176.0 | 4,100.1 | 3,545.9 | |||||||||||||||||||
Gross profit | 230.5 | 246.6 | 238.9 | 208.2 | |||||||||||||||||||
Warehousing and distribution expenses(3)
|
140.2 | 148.6 | 143.2 | 134.2 | |||||||||||||||||||
Selling, general and administrative expenses | 63.1 | 61.8 | 64.6 | 65.9 | |||||||||||||||||||
Amortization of intangible assets | 2.3 | 2.3 | 2.7 | 2.7 | |||||||||||||||||||
Total operating expenses | 205.6 | 212.7 | 210.5 | 202.8 | |||||||||||||||||||
Income from operations | 24.9 | 33.9 | 28.4 | 5.4 | |||||||||||||||||||
Interest expense, net | (3.6) | (4.2) | (3.2) | (3.4) | |||||||||||||||||||
Foreign currency transaction (losses) gains, net | (0.5) | 0.9 | (1.0) | (0.2) | |||||||||||||||||||
Income before income taxes | 20.8 | 30.6 | 24.2 | 1.8 | |||||||||||||||||||
Income tax provision | (4.6) | (8.1) | (6.5) | (0.5) | |||||||||||||||||||
Net income | 16.2 | 22.5 | 17.7 | 1.3 | |||||||||||||||||||
Basic net income per share | $ | 0.35 | $ | 0.49 | $ | 0.39 | $ | 0.03 | |||||||||||||||
Diluted net income per share | $ | 0.35 | $ | 0.49 | $ | 0.38 | $ | 0.03 | |||||||||||||||
Shares used to compute basic net income per share | 45.7 | 45.8 | 45.9 | 45.9 | |||||||||||||||||||
Shares used to compute diluted net income per share | 46.0 | 46.1 | 46.1 | 46.0 | |||||||||||||||||||
Excise taxes(2)
|
$ | 819.7 | $ | 884.1 | $ | 868.8 | $ | 768.7 | |||||||||||||||
Cigarette inventory holding gains(4)
|
10.1 | 0.3 | 3.8 | 8.8 | |||||||||||||||||||
Candy inventory holding gain(5)
|
1.1 | 5.8 | — | — | |||||||||||||||||||
LIFO expense | 5.9 | 7.3 | 7.4 | 7.0 | |||||||||||||||||||
Depreciation and amortization | 15.1 | 14.9 | 15.5 | 15.4 | |||||||||||||||||||
Stock-based compensation | 2.4 | 3.1 | 2.2 | 1.9 | |||||||||||||||||||
Capital expenditures | 7.5 | 6.1 | 4.1 | 5.1 |
/s/ Deloitte & Touche LLP | ||
Dallas, Texas | ||
March 1, 2021 |
Report of Independent Registered Public Accounting Firm | ||
Financial Statements: | ||
Consolidated Balance Sheets | ||
Consolidated Statements of Operations | ||
Consolidated Statements of Comprehensive Income | ||
Consolidated Statements of Stockholders’ Equity | ||
Consolidated Statements of Cash Flows | ||
Notes to Consolidated Financial Statements |
Balance at Beginning of Period | Charged to Costs and Expenses | Deductions | Charged to Other Accounts | Balance at End of Period | |||||||||||||||||||||||||
Year Ended December 31, 2020(1)
|
|||||||||||||||||||||||||||||
Allowances for: | |||||||||||||||||||||||||||||
Trade receivables | $ | 14.5 | $ | 7.6 | $ | (5.6) | $ | — | $ | 16.5 | |||||||||||||||||||
Inventory reserves | 1.7 | 27.2 | (23.5) | — | 5.4 | ||||||||||||||||||||||||
$ | 16.2 | $ | 34.8 | $ | (29.1) | $ | — | $ | 21.9 | ||||||||||||||||||||
Year Ended December 31, 2019(1)
|
|||||||||||||||||||||||||||||
Allowances for: | |||||||||||||||||||||||||||||
Trade receivables | $ | 8.3 | $ | 7.1 | $ | (0.7) | $ | (0.2) | $ | 14.5 | |||||||||||||||||||
Inventory reserves | 1.6 | 27.8 | (27.7) | — | 1.7 | ||||||||||||||||||||||||
$ | 9.9 | $ | 34.9 | $ | (28.4) | $ | (0.2) | $ | 16.2 | ||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||
Allowances for: | |||||||||||||||||||||||||||||
Trade receivables | $ | 7.3 | $ | 3.6 | $ | (2.6) | $ | — | $ | 8.3 | |||||||||||||||||||
Inventory reserves | 1.0 | 25.1 | (24.5) | — | 1.6 | ||||||||||||||||||||||||
$ | 8.3 | $ | 28.7 | $ | (27.1) | $ | — | $ | 9.9 |
Exhibit
No. |
Description | ||||
Third Amended and Revised Joint Plan of Reorganization of Fleming Companies, Inc. and its Subsidiaries Under Chapter 11 of the Bankruptcy Code, dated May 25, 2004 (incorporated by reference to Exhibit 2.1 of the Company’s Registration Statement on Form 10 filed on September 6, 2005). | |||||
Certificate of Incorporation of Core-Mark Holding Company, Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Registration Statement on Form 10 filed on September 6, 2005). | |||||
Certificate of Amendment to Certificate of Incorporation of Core-Mark Holding Company, Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on May 21, 2015). | |||||
Certificate of Amendment to Certificate of Incorporation of Core-Mark Holding Company, Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on May 23, 2018). | |||||
Second Amended and Restated Bylaws of Core-Mark Holding Company, Inc. (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K filed on August 18, 2008). | |||||
Description of Capital Stock of Core-Mark Holding Company, Inc. (incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10-K/A filed on May 26, 2020). | |||||
2007 Long-Term Incentive Plan (incorporated by reference to Annex A of the Company’s Proxy Statement on Schedule 14A filed on April 23, 2007). | |||||
Statement of Policy Regarding 2007 Long-Term Incentive Plan (incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K filed on May 9, 2007). | |||||
2010 Long-Term Incentive Plan (as amended, effective May 20, 2014) (incorporated by reference to Annex II of the Company’s Proxy Statement on Schedule 14A filed on April 8, 2014). | |||||
Core-Mark Holding Company, Inc. 2019 Long-Term Incentive Plan (incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K filed on May 24, 2019). | |||||
Form of Management Restricted Stock Unit Agreement under the Core-Mark Holding Company, Inc. 2019 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on June 18, 2019). | |||||
Form of Management Performance Restricted Stock Unit Agreement under the Core-Mark Holding Company, Inc. 2019 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed on June 18, 2019).
|
|||||
Form of Non-Employee Director Restricted Stock Unit Agreement under the Core-Mark Holding Company, Inc. 2019 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed on June 18, 2019).
|
|||||
Form of Indemnification Agreement for Officers and Directors (incorporated by reference to Exhibit 10.5 of the Company’s Registration Statement on Form 10 filed on September 6, 2005). | |||||
Registration Rights Agreement, dated August 20, 2004, among Core-Mark Holding Company, Inc. and the parties listed on Schedule I attached thereto (incorporated by reference to Exhibit 10.10 of the Company’s Registration Statement on Form 10 filed on September 6, 2005). | |||||
Credit Agreement, dated October 12, 2005, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Holdings I, Inc., Core-Mark Holdings II, Inc., Core-Mark Holdings III, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Head Distributing Company and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders, JPMorgan Chase Bank, N.A., as Administrative Agent, General Electric Capital Corporation and Wachovia Capital Finance Corporation (Western), as Co-Syndication Agents and Bank of America, N.A. and Wells Fargo Foothill, LLC, as Co-Documentation Agents (incorporated by reference to Exhibit 10.13 of the Company’s Registration Statement on Form 10 filed on October 21, 2005). | |||||
Exhibit
No. |
Description | ||||
First Amendment to Credit Agreement, dated December 4, 2007, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Holdings I, Inc., Core-Mark Holdings II, Inc., Core-Mark Holdings III, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Head Distributing Company and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.19 of the Company’s Annual Report on Form 10-K filed on March 12, 2009). | |||||
Second Amendment to Credit Agreement, dated March 12, 2008, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Holdings I, Inc., Core-Mark Holdings II, Inc., Core-Mark Holdings III, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Head Distributing Company and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on March 18, 2008). | |||||
Third Amendment to Credit Agreement, dated February 2, 2010, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Holdings I, Inc., Core-Mark Holdings II, Inc., Core-Mark Holdings III, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Head Distributing Company and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on February 5, 2010). | |||||
Fourth Amendment to Credit Agreement, dated May 5, 2011, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Holdings I, Inc., Core-Mark Holdings II, Inc., Core-Mark Holdings III, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Head Distributing Company and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q filed on May 9, 2011). | |||||
Fifth Amendment to Credit Agreement, dated May 30, 2013, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Holdings I, Inc., Core-Mark Holdings II, Inc., Core-Mark Holdings III, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Head Distributing Company and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q filed on August 7, 2013). | |||||
Sixth Amendment to Credit Agreement, dated May 21, 2015, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Core-Mark Distributors, Inc. and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on May 22, 2015). | |||||
Seventh Amendment to Credit Agreement, dated January 11, 2016, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Core-Mark Distributors, Inc. and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on January 12, 2016). | |||||
Eighth Amendment to Credit Agreement, dated May 16, 2016, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Core-Mark Distributors, Inc. and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on May 17, 2016). | |||||
Ninth Amendment to Credit Agreement, dated November 4, 2016, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Core-Mark Distributors, Inc. and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q filed on November 11, 2016). | |||||
Tenth Amendment to Credit Agreement, dated March 28, 2017, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Core-Mark Distributors, Inc. and Minter-Weisman Co., as Borrowers, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 8-K filed on March 29, 2017). | |||||
Exhibit
No. |
Description | ||||
Eleventh Amendment to Credit Agreement, dated February 26, 2021, among Core-Mark Holding Company, Inc., Core-Mark International, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Core-Mark Distributors, Inc., as Borrowers, Sources LLC, as a Loan Party, the Lenders Signatory Thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent | |||||
Pledge and Security Agreement, dated October 12, 2005, among Core-Mark Holding Company, Inc., Core-Mark Holdings I, Inc., Core-Mark Holdings II, Inc., Core-Mark Holdings III, Inc., Core-Mark International, Inc., Core-Mark Midcontinent, Inc., Core-Mark Interrelated Companies, Inc., Head Distributing Company, Inc. and Minter-Weisman Co., Inc., as Grantors and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.14 of the Company’s Registration Statement on Form 10 filed on October 21, 2005). | |||||
List of Subsidiaries of Core-Mark Holding Company, Inc. | |||||
Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm | |||||
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350. | |||||
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350. | |||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File - formatted in Inline XBRL and included as Exhibit 101 |
CORE-MARK HOLDING COMPANY, INC. | ||||||||||||||
Date: | March 1, 2021 | By: | /s/ SCOTT E. McPHERSON | |||||||||||
Scott E. McPherson | ||||||||||||||
President, Chief Executive Officer and Director |
SIGNATURE | TITLE | DATE | ||||||||||||
/s/ SCOTT E. McPHERSON | President, Chief Executive Officer and Director | March 1, 2021 | ||||||||||||
Scott E. McPherson | (Principal Executive Officer) | |||||||||||||
/s/ CHRISTOPHER M. MILLER | Executive Vice President and Chief Financial Officer | March 1, 2021 | ||||||||||||
Christopher M. Miller | (Principal Financial and Accounting Officer) | |||||||||||||
/S/ RANDOLPH I. THORNTON
|
Chairman of the Board of Directors | March 1, 2021 | ||||||||||||
Randolph I. Thornton | ||||||||||||||
/S/ STUART W. BOOTH
|
Director | March 1, 2021 | ||||||||||||
Stuart W. Booth | ||||||||||||||
/S/ GARY F. COLTER
|
Director | March 1, 2021 | ||||||||||||
Gary F. Colter | ||||||||||||||
/s/ ROCKY DEWBRE | Director | March 1, 2021 | ||||||||||||
Rocky Dewbre | ||||||||||||||
/s/ LAURA FLANAGAN | Director | March 1, 2021 | ||||||||||||
Laura Flanagan | ||||||||||||||
/S/ ROBERT G. GROSS
|
Director | March 1, 2021 | ||||||||||||
Robert G. Gross | ||||||||||||||
/S/ DIANE RANDOLPH
|
Director | March 1, 2021 | ||||||||||||
Diane Randolph | ||||||||||||||
/S/ HARVEY L. TEPNER
|
Director | March 1, 2021 | ||||||||||||
Harvey L. Tepner |
1 Year Core Mark Chart |
1 Month Core Mark Chart |
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