Delaware | 001-35743 | 46-1365950 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
One Valero Way, Building D, Suite 200 San Antonio, Texas | 78249 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. |
99.1 | Press Release dated May 13, 2014. |
CST BRANDS, INC. | |||
/s/ Clayton E. Killinger | |||
By: | Clayton E. Killinger | ||
Title: | Senior Vice President and Chief Financial Officer | ||
Exhibit No. | Exhibit Description | |
99.1 | Press Release dated May 13, 2014. | |
CST Brands, Inc. Reports First Quarter 2014 Results |
-U.S. Fuel Gross Margin Dollars Increased 19% |
-U.S. Merchandise Gross Margin Dollars Increased 6% |
-Nine New Stores Opened Year-to-Date |
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Operating revenues(a) | $ | 3,001 | $ | 3,188 | ||||
Cost of sales | 2,756 | 2,952 | ||||||
Gross margin | 245 | 236 | ||||||
Operating expenses: | ||||||||
Operating expenses | 164 | 159 | ||||||
General and administrative expenses | 25 | 15 | ||||||
Depreciation, amortization and accretion expense | 31 | 30 | ||||||
Total operating expenses | 220 | 204 | ||||||
Operating income | 25 | 32 | ||||||
Other income, net | 1 | 1 | ||||||
Interest expense | (10 | ) | — | |||||
Income before income tax expense | 16 | 33 | ||||||
Income tax expense | 5 | 10 | ||||||
Net income | $ | 11 | $ | 23 | ||||
Earnings per common share | ||||||||
Basic earnings per common share | $ | 0.14 | $ | 0.30 | ||||
Weighted-average common shares outstanding (in thousands) | 75,397 | 75,397 | ||||||
Earnings per common share - assuming dilution | ||||||||
Diluted earnings per common share | $ | 0.14 | $ | 0.30 | ||||
Weighted-average common shares outstanding - assuming dilution (in thousands) | 75,494 | 75,397 | ||||||
Dividends declared per common share | $ | 0.0625 | $ | — |
Supplemental information: | ||||||||
(a) Includes excise taxes | $ | 470 | $ | 499 |
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Operating revenues: | ||||||||
Motor fuel | $ | 1,483 | $ | 1,619 | ||||
Merchandise | 301 | 293 | ||||||
Other | 15 | 16 | ||||||
Total operating revenues | $ | 1,799 | $ | 1,928 | ||||
Gross margin: | ||||||||
Motor fuel | $ | 44 | $ | 37 | ||||
Merchandise | 92 | 87 | ||||||
Other | 15 | 14 | ||||||
Total gross margin | 151 | 138 | ||||||
Operating expenses | 105 | 99 | ||||||
Depreciation, amortization and accretion expense | 22 | 21 | ||||||
Operating income | $ | 24 | $ | 18 | ||||
Company operated retail sites at end of period | 1,041 | 1,033 | ||||||
Average company operated retail sites during the period | 1,038 | 1,033 | ||||||
Total system operating statistics: | ||||||||
Motor fuel sales (gallons per site per day) | 4,797 | 5,048 | ||||||
Motor fuel sales (per site per day) | $ | 15,866 | $ | 17,428 | ||||
Motor fuel gross margin (CPG): | ||||||||
Motor fuel margin, before credit card fees | $ | 0.139 | $ | 0.116 | ||||
Credit card fees | (0.041 | ) | (0.040 | ) | ||||
Motor fuel gross margin, net (CPG) | $ | 0.098 | $ | 0.076 | ||||
Merchandise sales (per site per day) | $ | 3,221 | $ | 3,158 | ||||
Merchandise gross margin, net (percentage of merchandise revenues): | ||||||||
Merchandise gross margin, before credit card fees | 31.5 | % | 30.5 | % | ||||
Credit card fees affect on margin | (0.9 | ) | (0.8 | ) | ||||
Merchandise gross margin, net | 30.6 | % | 29.7 | % |
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Company Operated Retail Sites: | ||||||||
Beginning of period | 1,036 | 1,032 | ||||||
NTIs | 6 | 1 | ||||||
Acquisitions | — | — | ||||||
Closed | (1 | ) | — | |||||
End of period | 1,041 | 1,033 | ||||||
Average company operated retail sites during the period | 1,038 | 1,033 | ||||||
Same Store Information(a): | ||||||||
Company operated retail sites | 1,002 | 1,002 | ||||||
Motor fuel sales (gallons per site per day) | 4,720 | 5,079 | ||||||
Merchandise sales (per site per day) | $ | 3,165 | $ | 3,168 | ||||
Merchandise gross margin percent, net | 30.5 | % | 29.7 | % | ||||
Merchandise sales, ex. cigarettes (per site per day) | $ | 2,197 | $ | 2,141 | ||||
Merchandise gross margin percent, net ex. cigarettes | 36.1 | % | 36.0 | % | ||||
Merchandise gross profit dollars | $ | 87 | $ | 85 | ||||
Other services operating revenues(b) | $ | 14 | $ | 14 | ||||
NTI Information(c): | ||||||||
Company operated retail sites at end of period | 54 | 34 | ||||||
Company operated retail sites (average) | 50 | 34 | ||||||
Motor fuel sales (gallons per site per day) | 9,268 | 9,787 | ||||||
Merchandise sales (per site per day) | $ | 6,134 | $ | 5,960 | ||||
Merchandise gross margin percent, net | 33.6 | % | 32.4 | % | ||||
Merchandise sales, ex. cigarettes (per site per day) | $ | 4,870 | $ | 4,618 | ||||
Merchandise gross margin percent, net ex. cigarettes | 37.7 | % | 36.4 | % |
(a) | The same store information consists of aggregated individual store results for all sites in operation substantially throughout both periods presented. Stores that were temporarily closed for a brief period of time during the periods being compared remain in the same store sales comparison. If a store is replaced, either at the same location or relocated to a new location, it is removed from the comparison until the new store has been in operation for substantially all of the periods being compared. |
(b) | Other services include revenues from car wash and commissions from lottery, money orders, air/water/vacuum services, video and game rentals and access to ATMs. |
(c) | New to Industry Convenience Stores (“NTIs”) consist of all new stores opened after January 1, 2008, which is generally when the Company began operating the larger formatted stores that accommodate broader merchandise categories and food offerings and have more fuel dispensers than the Company's legacy stores. |
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Operating revenues: | ||||||||
Motor fuel | $ | 966 | $ | 1,022 | ||||
Merchandise | 53 | 59 | ||||||
Other | 183 | 179 | ||||||
Total operating revenues | $ | 1,202 | $ | 1,260 | ||||
Gross margin: | ||||||||
Motor fuel | $ | 49 | $ | 53 | ||||
Merchandise | 15 | 16 | ||||||
Other | 30 | 29 | ||||||
Total gross margin | 94 | 98 | ||||||
Operating expenses | 59 | 60 | ||||||
Depreciation, amortization and accretion expense | 9 | 9 | ||||||
Operating income | $ | 26 | $ | 29 | ||||
Retail sites (end of period): | ||||||||
Company operated | 276 | 262 | ||||||
Dealers / Agents (fuel only) | 498 | 501 | ||||||
Cardlock (fuel only) | 75 | 78 | ||||||
Total retail sites (end of period) | 849 | 841 | ||||||
Average retail sites during the period: | ||||||||
Company operated | 273 | 262 | ||||||
Dealers / Agents (fuel only) | 499 | 504 | ||||||
Cardlock (fuel only) | 75 | 79 | ||||||
Average retail sites during the period | 847 | 845 | ||||||
Total system operating statistics: | ||||||||
Motor fuel sales (gallons per site per day) | 3,095 | 3,118 | ||||||
Motor fuel sales (per site per day) | $ | 12,673 | $ | 13,502 | ||||
Motor fuel gross margin (CPG): | ||||||||
Motor fuel margin, before credit card fees | $ | 0.229 | $ | 0.245 | ||||
Credit card fees | (0.021 | ) | (0.021 | ) | ||||
Motor fuel gross margin, net (CPG) | $ | 0.208 | $ | 0.224 | ||||
Company operated retail site statistics: | ||||||||
Merchandise sales (per site per day) | $ | 2,166 | $ | 2,502 | ||||
Merchandise gross margin, net (percentage of merchandise revenues): | ||||||||
Merchandise gross margin, before credit card fees | 29.0 | % | 28.3 | % | ||||
Credit card fees affect on margin | (0.9 | ) | (0.8 | ) | ||||
Merchandise gross margin, net | 28.1 | % | 27.5 | % |
Company Operated(b) | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Retail Sites: | ||||||||
Beginning of period | 272 | 261 | ||||||
NTIs | 1 | — | ||||||
Acquisitions | 2 | — | ||||||
Conversions, net(a) | 1 | 1 | ||||||
Closed | — | — | ||||||
End of period | 276 | 262 | ||||||
Average company operated retail sites during the period | 273 | 262 | ||||||
Average foreign exchange rate for $1 CAD to USD | 0.91218 | 0.99075 | ||||||
Same Store Information(c),(d): | ||||||||
Company operated retail sites | 260 | 260 | ||||||
Motor fuel sales (gallons per site per day) | 3,324 | 3,420 | ||||||
Merchandise sales (per site per day) | $ | 2,413 | $ | 2,536 | ||||
Merchandise gross margin percent, net | 28.3 | % | 27.5 | % | ||||
Merchandise sales, ex. cigarettes (per site per day) | $ | 1,215 | $ | 1,257 | ||||
Merchandise gross margin percent, net ex. cigarettes | 37.4 | % | 37.5 | % | ||||
Merchandise gross profit dollars | $ | 16 | $ | 16 | ||||
Other services operating revenues(e) | $ | 5 | $ | 4 | ||||
NTI Information(c),(f): | ||||||||
Company operated retail sites at end of period | 24 | 16 | ||||||
Company operated retail sites (average) | 23 | 16 | ||||||
Motor fuel sales (gallons per site per day) | 5,070 | 5,370 | ||||||
Merchandise sales (per site per day) | $ | 2,646 | $ | 2,837 | ||||
Merchandise gross margin percent, net | 28.5 | % | 28.6 | % | ||||
Merchandise sales, ex. cigarettes (per site per day) | $ | 1,456 | $ | 1,500 | ||||
Merchandise gross margin percent, net ex. cigarettes | 36.3 | % | 38.6 | % |
Dealers/Agents(b) | ||||||
Three Months Ended March 31, | ||||||
2014 | 2013 | |||||
Retail Sites: | ||||||
Beginning of period | 499 | 507 | ||||
New dealers | 2 | 1 | ||||
Conversions, net(a) | (1 | ) | (1 | ) | ||
Closed or de-branded | (2 | ) | (6 | ) | ||
End of period | 498 | 501 | ||||
Average retail sites during the period | 499 | 504 | ||||
Same Store Information(d): | ||||||
Retail sites | 469 | 469 | ||||
Motor fuel sales (gallons per site per day) | 2,497 | 2,554 |
(a) | Conversions represent stores that have changed their classification from dealers/agents to company owned and operated or vice versa. Changes in classification result when the Company either takes over the operations of dealers/agents or convert an existing company owned and operated store to dealers/agents. |
(b) | Company operated retail sites sell motor fuel and merchandise and the Company only retains the gross margin from motor fuel sales at dealers/agents. |
(c) | All amounts presented are stated in Canadian dollars to remove the impact of foreign exchange and all fuel information excludes amounts related to cardlock operations. |
(d) | The same store information consists of aggregated individual store results for all sites in operation substantially throughout both periods presented. Stores that were temporarily closed for a brief period of time during the periods being compared remain in the same store sales comparison. If a store is replaced, either at the same location or relocated to a new location, it is removed from the comparison until the new store has been in operation for substantially all of the periods being compared. |
(e) | Other services include revenues from car wash and commissions from lottery, money orders, air/water/vacuum services, video and game rentals and access to ATMs. |
(f) | NTIs consist of all new stores opened after January 1, 2008, which is generally when the Company began operating the larger formatted stores that accommodate broader merchandise categories and food offerings. NTIs exclude dealers/agents. |
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 11 | $ | 23 | ||||
Interest expense | 10 | — | ||||||
Income tax expense | 5 | 10 | ||||||
Depreciation, amortization and accretion | 31 | 30 | ||||||
Adjusted EBITDA | 57 | 63 | ||||||
Minimum rent expense | 7 | 6 | ||||||
EBITDAR | $ | 64 | $ | 69 |
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
ASSETS | ||||||||
Cash | $ | 365 | $ | 378 | ||||
Other current assets | 427 | 388 | ||||||
Total current assets | 792 | 766 | ||||||
Property and equipment, net | 1,328 | 1,326 | ||||||
Other long-term assets | 202 | 211 | ||||||
Total assets | $ | 2,322 | $ | 2,303 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY / NET INVESTMENT | ||||||||
Current portion of debt and capital lease obligations | $ | 38 | $ | 36 | ||||
Other current liabilities | 470 | 427 | ||||||
Total current liabilities | 508 | 463 | ||||||
Debt and capital lease obligations, less current portion | 997 | 1,006 | ||||||
Deferred income taxes and other long-term liabilities | 204 | 207 | ||||||
Total stockholders’ equity | 613 | 627 | ||||||
Total liabilities and stockholders’ equity | $ | 2,322 | $ | 2,303 |
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