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Core-Mark Announces Third Quarter 2018 Financial Results
- Diluted EPS Increased 75.9% to
$0.51 Per Share - Net Income Increased 73.0% to
$23.7 Million - Adjusted EBITDA(1) Increased 23.2% to
$59.0 Million - Dividend Increased by 10% to
$0.11 Per Share Quarterly - 2018 Guidance Updated
“Our third quarter profitability was strong as we were able to expand margins, capitalize on a significant holding gain opportunity and leverage our operating expenses despite flat sales. We continue to benefit from our ability to grow same store sales and gain market share wins with the independent store base while building a pipeline of new larger market share opportunities,” said
Third Quarter Results
Net sales decreased 0.9% to
Gross profit increased 5.2% to
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Note (1): See below for the "Reconciliation of Net Income to Adjusted EBITDA."
The following table reconciles remaining gross profit, a non-GAAP financial measure, to gross profit, its most comparable financial measure under U.S. GAAP:
RECONCILIATION OF GROSS PROFIT (U.S. GAAP) TO REMAINING GROSS PROFIT (NON-GAAP) | ||||||||||||||
(Unaudited and $ in millions) | ||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||
2018 | 2017 | |||||||||||||
Amounts | % of Net Sales |
Amounts | % of Net Sales |
% Change | ||||||||||
Gross profit | $ | 233.8 | 5.5 | % | $ | 222.2 | 5.2 | % | 5.2 | % | ||||
Cigarette inventory holding gains | (5.9 | ) | (0.1 | )% | (6.6 | ) | (0.2 | )% | ||||||
Cigarette tax stamp inventory holding gain | (7.4 | ) | (0.2 | )% | — | — | % | |||||||
LIFO expense | 7.2 | 0.1 | % | 6.0 | 0.1 | % | ||||||||
Remaining gross profit (Non-GAAP) | $ | 227.7 | 5.3 | % | $ | 221.6 | 5.1 | % | 2.8 | % | ||||
The Company’s operating expenses were
Net income was
The following table reconciles Adjusted EBITDA to net income, its most comparable financial measure under U.S. GAAP:
RECONCILIATION OF NET INCOME (U.S. GAAP) TO ADJUSTED EBITDA (NON-GAAP) | ||||||||||
(Unaudited and $ in millions) | ||||||||||
For the Three Months Ended September 30, |
||||||||||
2018 | 2017 | % Change | ||||||||
Net income | $ | 23.7 | $ | 13.7 | 73.0 | % | ||||
Interest expense, net(1) | 3.4 | 3.8 | ||||||||
Provision for income taxes | 7.4 | 8.1 | ||||||||
Depreciation and amortization | 14.9 | 15.3 | ||||||||
LIFO expense | 7.2 | 6.0 | ||||||||
Stock-based compensation expense | 2.0 | 1.2 | ||||||||
Foreign currency transaction losses (gains), net | 0.4 | (0.2 | ) | |||||||
Adjusted EBITDA (Non-GAAP) | $ | 59.0 | $ | 47.9 | 23.2 | % |
______________________________________________
(1) Interest expense, net, is reported net of interest income.
Diluted Earnings per Share (EPS) was
First Nine Months of 2018
Net sales increased 5.9% to
The increase in non-cigarette sales was driven by an increase in sales to existing customers and net market share gains, including the additions of
Gross profit increased 11.7% to
The following table reconciles remaining gross profit, a non-GAAP financial measure, to gross profit, its most comparable financial measure under U.S. GAAP:
RECONCILIATION OF GROSS PROFIT (U.S. GAAP) TO REMAINING GROSS PROFIT (NON-GAAP) | ||||||||||||||
(Unaudited and $ in millions) | ||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | |||||||||||||
Amounts | % of Net Sales |
Amounts | % of Net Sales |
% Change | ||||||||||
Gross profit | $ | 650.5 | 5.3 | % | $ | 582.3 | 5.0 | % | 11.7 | % | ||||
Cigarette inventory holding gains | (16.5 | ) | (0.1 | )% | (14.1 | ) | (0.1 | )% | ||||||
Cigarette tax stamp inventory holding gain | (7.4 | ) | (0.1 | )% | — | — | % | |||||||
Other tobacco products (OTP) tax refunds | — | — | % | (1.2 | ) | — | % | |||||||
LIFO expense | 20.0 | 0.2 | % | 14.8 | 0.1 | % | ||||||||
Remaining gross profit (Non-GAAP) | $ | 646.6 | 5.3 | % | $ | 581.8 | 5.0 | % | 11.1 | % | ||||
The Company’s operating expenses for the first nine months of 2018 were
Net income was
The following table reconciles Adjusted EBITDA to net income, its most comparable financial measure under U.S. GAAP:
RECONCILIATION OF NET INCOME (U.S. GAAP) TO ADJUSTED EBITDA (NON-GAAP) | ||||||||||
(Unaudited and $ in millions) | ||||||||||
For the Nine Months Ended September 30, |
||||||||||
2018 | 2017 | % Change | ||||||||
Net income | $ | 33.4 | $ | 22.7 | 47.1 | % | ||||
Interest expense, net(1) | 10.6 | 7.7 | ||||||||
Provision for income taxes | 11.3 | 11.2 | ||||||||
Depreciation and amortization | 44.5 | 39.6 | ||||||||
LIFO expense | 20.0 | 14.8 | ||||||||
Stock-based compensation expense | 6.4 | 3.5 | ||||||||
Foreign currency transaction gains, net | (0.5 | ) | (1.9 | ) | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 125.7 | $ | 97.6 | 28.8 | % |
______________________________________________
(1) Interest expense, net, is reported net of interest income.
Diluted EPS was
Dividend
Guidance for 2018
The Company has updated its guidance for the full year of 2018. Annual net sales for 2018 are now expected to be between
Conference Call and Webcast Information
An audio replay will be available for approximately one month following the call by dialing 1-888-843-7419 using the same code provided above. The replay will also be available via webcast at www.core-mark.com for approximately 90 days following the call.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures including Diluted EPS excluding LIFO expense, Adjusted EBITDA, and remaining gross profit. We believe these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful period-to-period evaluation. We also believe these measures allow investors to view results in a manner similar to the method used by our management. We use these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. These measures may be defined differently than other companies and therefore such measures may not be comparable to ours. We strongly encourage investors and stockholders to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Adjusted EBITDA is a measure used by us to measure operating performance. Adjusted EBITDA is also among the primary measures used externally by our investors, analysts and peers in our industry for purposes of valuation and comparing our results to other companies. Adjusted EBITDA is equal to net income adding back net interest expense, provision for income taxes, depreciation and amortization, LIFO expense, stock-based compensation expense, and net foreign currency transaction gains or losses.
Diluted EPS excluding LIFO expense is a measure used by us to measure financial performance. Diluted EPS is also among the primary measures used externally by our investors, analysts and peers in our industry for purposes of valuation and comparing our results to other companies. Remaining gross profit is a non-GAAP financial measure. We provide this metric to segregate the effects of LIFO expense, cigarette inventory holding gains and other items that significantly affect the comparability of gross profit.
We do not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “Guidance for 2018” above) where we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements made pursuant to the safe-harbor provisions of the Securities Exchange Act of 1934 and the Securities Act of 1933. These statements include statements regarding our guidance for 2018 net sales, Adjusted EBITDA, diluted earnings per share, diluted earnings per share excluding LIFO expense, capital expenditures and related disclosures. 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. Forward-looking statements are made only as of the date of this press release and are based on our current intent, beliefs, plans and expectations. They involve risks and uncertainties that could cause actual future results, performance or developments to differ materially from historical results or those described in or implied by 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; our dependence on qualified labor, our senior management and other key personnel; declining cigarette sales volumes; competition in our distribution markets; risks and costs associated with efforts to grow our business through acquisitions; the dependence of some of our distribution centers on a few relatively large customers; manufacturers or retail customers adopting direct distribution channels; fuel and other transportation costs; failure, disruptions or security breaches of our information technology systems; the low-margin nature of cigarette and consumable goods distribution; our reliance on manufacturer discount and incentive programs and cigarette excise stamping allowances; our dependence on relatively few suppliers; product liability and counterfeit product claims and manufacturer recalls of products; our ability to achieve the expected benefits of implementation of marketing initiatives; failing to maintain our brand and reputation; unexpected outcomes in legal proceedings; attempts by unions to organize our employees; increasing expenses related to employee health benefits; changes to minimum wage laws; failure to comply with governmental regulations or substantial changes to governmental regulations; earthquake and natural disaster damage; increases in the number or severity of insurance and claims expenses; legislation, regulations and other matters negatively affecting the cigarette, tobacco and alternative nicotine industry; increases in excise taxes or reduction in credit terms by taxing jurisdictions; potential liabilities associated with sales of cigarettes and other tobacco products; changes to federal, state or provincial income tax legislation; reduction in the payment of dividends; currency exchange rate fluctuations; our ability to borrow additional capital; restrictive covenants in our Credit Facility; and changes to accounting rules or regulations. Refer to the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the
CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In millions, except share and per share data) | |||||||
(Unaudited) | |||||||
September 30, | December 31, | ||||||
2018 | 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 37.8 | $ | 41.6 | |||
Accounts receivable, net of allowance for doubtful accounts of $7.0 and $7.3 as of September 30, 2018 and December 31, 2017, respectively | 425.5 | 442.3 | |||||
Other receivables, net | 96.4 | 94.4 | |||||
Inventories, net | 651.4 | 689.1 | |||||
Deposits and prepayments | 49.4 | 108.0 | |||||
Total current assets | 1,260.5 | 1,375.4 | |||||
Property and equipment, net | 234.0 | 249.0 | |||||
Goodwill | 72.8 | 72.8 | |||||
Other intangible assets, net | 53.1 | 59.1 | |||||
Other non-current assets, net | 26.5 | 26.2 | |||||
Total assets | $ | 1,646.9 | $ | 1,782.5 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 218.9 | $ | 169.9 | |||
Book overdrafts | 35.8 | 45.3 | |||||
Cigarette and tobacco taxes payable | 231.0 | 304.5 | |||||
Accrued liabilities | 148.1 | 124.8 | |||||
Total current liabilities | 633.8 | 644.5 | |||||
Long-term debt | 375.5 | 512.9 | |||||
Deferred income taxes | 29.4 | 27.4 | |||||
Other long-term liabilities | 14.3 | 16.2 | |||||
Claims liabilities | 29.1 | 26.3 | |||||
Total liabilities | 1,082.1 | 1,227.3 | |||||
Stockholders’ equity: | |||||||
Common stock, $0.01 par value (150,000,000 and 100,000,000 shares authorized; 52,522,498 and 52,397,668 shares issued; 45,808,674 and 46,165,009 shares outstanding at September 30, 2018 and December 31, 2017, respectively) | 0.5 | 0.5 | |||||
Additional paid-in capital | 281.4 | 276.8 | |||||
Treasury stock at cost (6,713,824 and 6,232,659 shares of common stock at September 30, 2018 and December 31, 2017, respectively) | (87.6 | ) | (75.1 | ) | |||
Retained earnings | 375.4 | 355.1 | |||||
Accumulated other comprehensive loss | (4.9 | ) | (2.1 | ) | |||
Total stockholders’ equity | 564.8 | 555.2 | |||||
Total liabilities and stockholders’ equity | $ | 1,646.9 | $ | 1,782.5 | |||
CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(In millions, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net sales | $ | 4,273.2 | $ | 4,310.7 | $ | 12,305.6 | $ | 11,615.6 | |||||||
Cost of goods sold | 4,039.4 | 4,088.5 | 11,655.1 | 11,033.3 | |||||||||||
Gross profit | 233.8 | 222.2 | 650.5 | 582.3 | |||||||||||
Warehousing and distribution expenses | 137.6 | 137.4 | 404.2 | 370.1 | |||||||||||
Selling, general and administrative expenses | 58.8 | 57.0 | 183.9 | 166.5 | |||||||||||
Amortization of intangible assets | 2.5 | 2.4 | 7.6 | 6.0 | |||||||||||
Total operating expenses | 198.9 | 196.8 | 595.7 | 542.6 | |||||||||||
Income from operations | 34.9 | 25.4 | 54.8 | 39.7 | |||||||||||
Interest expense, net | (3.4 | ) | (3.8 | ) | (10.6 | ) | (7.7 | ) | |||||||
Foreign currency transaction (losses) gains, net | (0.4 | ) | 0.2 | 0.5 | 1.9 | ||||||||||
Income before income taxes | 31.1 | 21.8 | 44.7 | 33.9 | |||||||||||
Provision for income taxes | (7.4 | ) | (8.1 | ) | (11.3 | ) | (11.2 | ) | |||||||
Net income | $ | 23.7 | $ | 13.7 | $ | 33.4 | $ | 22.7 | |||||||
Basic net income per common share(1) | $ | 0.52 | $ | 0.29 | $ | 0.72 | $ | 0.49 | |||||||
Diluted net income per common share (1) | $ | 0.51 | $ | 0.29 | $ | 0.72 | $ | 0.49 | |||||||
Basic weighted-average shares | 45.9 | 46.3 | 46.1 | 46.3 | |||||||||||
Diluted weighted-average shares | 46.2 | 46.4 | 46.2 | 46.4 | |||||||||||
Dividends declared and paid per common share | $ | 0.10 | $ | 0.09 | $ | 0.30 | $ | 0.27 | |||||||
(1) Basic and diluted earnings per share are calculated based on unrounded actual amounts. | |||||||||||||||
CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In millions) | |||||||
(Unaudited) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 33.4 | $ | 22.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
LIFO and inventory provisions | 20.5 | 14.6 | |||||
Amortization of debt issuance costs | 0.6 | 0.6 | |||||
Stock-based compensation expense | 6.4 | 3.5 | |||||
Bad debt expense, net | 1.8 | 0.9 | |||||
Loss on disposals | 0.6 | — | |||||
Depreciation and amortization | 44.5 | 39.6 | |||||
Foreign currency gains, net | (0.5 | ) | (1.9 | ) | |||
Deferred income taxes | 2.0 | 2.1 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | 9.9 | (48.7 | ) | ||||
Other receivables, net | (2.1 | ) | 6.2 | ||||
Inventories, net | 14.1 | (2.7 | ) | ||||
Deposits, prepayments and other non-current assets | 53.9 | 36.3 | |||||
Accounts payable | 49.2 | 53.5 | |||||
Cigarette and tobacco taxes payable | (71.9 | ) | (23.0 | ) | |||
Claims, accrued and other long-term liabilities | 29.7 | 5.6 | |||||
Net cash provided by operating activities | 192.1 | 109.3 | |||||
Cash flows from investing activities: | |||||||
Acquisition of business | (2.5 | ) | (169.0 | ) | |||
Additions to property and equipment, net | (14.9 | ) | (44.0 | ) | |||
Capitalization of software and related development costs | (1.6 | ) | (3.4 | ) | |||
Proceeds from sale of property and equipment, net | 0.1 | — | |||||
Net cash used in investing activities | (18.9 | ) | (216.4 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings under revolving credit facility | 1,276.1 | 1,273.9 | |||||
Repayments under revolving credit facility | (1,414.3 | ) | (1,135.9 | ) | |||
Payments of financing costs | — | (1.8 | ) | ||||
Payments on capital leases | (2.0 | ) | (1.5 | ) | |||
Dividends paid | (13.9 | ) | (12.6 | ) | |||
Repurchases of common stock | (12.5 | ) | (3.6 | ) | |||
Tax withholdings related to net share settlements of restricted stock units | (1.6 | ) | (3.6 | ) | |||
(Decrease) increase in book overdrafts | (9.5 | ) | 7.4 | ||||
Net cash (used in) provided by financing activities | (177.7 | ) | 122.3 | ||||
Effects of changes in foreign exchange rates | 0.7 | (1.1 | ) | ||||
Change in cash and cash equivalents | (3.8 | ) | 14.1 | ||||
Cash and cash equivalents, beginning of period | 41.6 | 41.7 | |||||
Cash and cash equivalents, end of period | $ | 37.8 | $ | 55.8 | |||
Supplemental disclosures: | |||||||
Cash received (paid) during the period for: | |||||||
Income taxes, net | $ | 9.7 | $ | (13.0 | ) | ||
Interest, net | $ | (9.2 | ) | $ | (6.5 | ) | |
Non-cash capital lease obligations incurred | $ | 0.2 | $ | 0.7 | |||
Unpaid property and equipment purchases included in accrued liabilities | $ | 0.6 | $ | 0.3 | |||
Non-cash indemnification holdback | $ | — | $ | 5.0 | |||
CORE-MARK HOLDING COMPANY, INC. AND SUBSIDIARIES | |||||||||||||||||||||
RECONCILIATION OF DILUTED EARNINGS PER SHARE (U.S. GAAP) TO DILUTED EARNINGS PER SHARE EXCLUDING LIFO EXPENSE (NON-GAAP) AND | |||||||||||||||||||||
SUPPLEMENTAL SCHEDULE FOR ITEMS IMPACTING DILUTED EPS | |||||||||||||||||||||
(In millions, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2018 (a)(b) | 2017 (a)(b) | % Change | 2018 (a)(b) | 2017 (a)(b) | % Change | ||||||||||||||||
Net income | $ | 23.7 | $ | 13.7 | 73.0 | % | $ | 33.4 | $ | 22.7 | 47.1 | % | |||||||||
Diluted shares | 46.2 | 46.4 | 46.2 | 46.4 | |||||||||||||||||
Diluted EPS | $ | 0.51 | $ | 0.29 | 75.9 | % | $ | 0.72 | $ | 0.49 | 46.9 | % | |||||||||
LIFO expense | 0.12 | 0.08 | 0.32 | 0.20 | |||||||||||||||||
Diluted EPS excluding LIFO expense (Non-GAAP) |
$ | 0.63 | $ | 0.37 | 70.3 | % | $ | 1.04 | $ | 0.69 | 50.7 | % | |||||||||
Additional Items Impacting Diluted EPS: | |||||||||||||||||||||
Cigarette inventory holding gains(1) | $ | 0.10 | $ | 0.09 | $ | 0.27 | $ | 0.19 | |||||||||||||
Cigarette tax stamp inventory holding gain(2) | 0.12 | — | 0.12 | — | |||||||||||||||||
Business expansion and integration costs(3) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.05 | ) | |||||||||||||
Net OTP tax items(4) | (0.01 | ) | — | (0.01 | ) | 0.01 | |||||||||||||||
Legal settlement costs & related fees(5) | (0.02 | ) | — | (0.05 | ) | — | |||||||||||||||
Interest expense, net(6) | (0.05 | ) | (0.05 | ) | (0.17 | ) | (0.10 | ) | |||||||||||||
Foreign exchange (losses)/gains(7) | (0.01 | ) | — | 0.01 | 0.02 | ||||||||||||||||
Tax items(8) | — | — | — | 0.03 | |||||||||||||||||
Tax rate differential (excluding LIFO expense)(9) | (0.11 | ) | — | (0.19 | ) | — | |||||||||||||||
(a) Amounts and percentages have been rounded for presentation purposes and might differ from unrounded results. (b) The per share impacts of the above items were calculated using a tax rate of 25.3% and 25.5% for the three and nine months ended September 30, 2018 versus 38.8% for the same periods in 2017. |
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(1) Cigarette inventory holding gains | |||||||||||||||||||||
Cigarette inventory holding gains were $5.9 and $16.5 million for the three and nine months ended September 30, 2018 versus $6.6 and $14.1 million for the three and nine months ended September 30, 2017. | |||||||||||||||||||||
(2) Cigarette tax stamp inventory holding gain | |||||||||||||||||||||
Cigarette tax stamp inventory holding gain was $7.4 million for the three and nine months ended September 30, 2018. | |||||||||||||||||||||
(3) Business expansion and integration costs | |||||||||||||||||||||
During the three and nine months ended September 30, 2018, the Company incurred $0.9 and $1.2 million in identifiable business expansion expenses due primarily to integration of acquisitions. During the three and nine months ended September 30, 2017, the Company incurred $0.6 and $4.1 million in identifiable business and integration expenses due to the onboarding of Walmart Inc. and the acquisition of Farner-Bocken Company. | |||||||||||||||||||||
(4) Net OTP tax items | |||||||||||||||||||||
During the three and nine months ended September 30, 2018, the Company recognized excise tax adjustments of $0.7 million. During the nine months ended September 30, 2017, the Company recognized OTP tax items, net of fees, of $1.0 million related to prior years' taxes. | |||||||||||||||||||||
(5) Legal settlement costs & related fees | |||||||||||||||||||||
The Company recognized legal settlement costs and related legal fees of $1.3 million and $3.0 million during the three and nine months ended September 30, 2018. | |||||||||||||||||||||
(6) Interest expense, net | |||||||||||||||||||||
Interest expense, net was $3.4 and $10.6 million for the three and nine months ended September 30, 2018 versus $3.8 and $7.7 million for the three and nine months ended September 30, 2017. | |||||||||||||||||||||
(7) Foreign exchange (losses)/gains | |||||||||||||||||||||
Foreign exchange (losses)/gains were ($0.4) and $0.5 million for the three and nine months ended September 30, 2018 versus $0.2 and $1.9 million for the three and nine months ended September 30, 2017. | |||||||||||||||||||||
(8) Tax items | |||||||||||||||||||||
During the nine months ended September 30, 2017, the Company recognized an income tax benefit of $1.5 million which was due to the excess tax benefit from share-based award payments under ASU 2016-09, which the Company implemented in the first quarter of 2017. | |||||||||||||||||||||
(9) Tax rate differential (excluding LIFO expense) | |||||||||||||||||||||
Primarily as a result of the Tax Cuts and Jobs Act, the Company's tax rate reduced to approximately 25.3% and 25.5% for the three and nine months ended September 30, 2018, compared to approximately 38.8% for prior periods presented. |
Contact: Ms.Milton Gray Draper , Director of Investor Relations, 650-589-9445 x 3027 or at mdraper@core-mark.com
Source: Core-Mark Holding Company, Inc.