Core-Mark Doing Well for 2006

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Core-Mark Doing Well for 2006

SOUH SAN FRANCISCO, Calif. -- Core Mark Holding Company, Inc., distributor for the convenience store industry, reported that its sales for the first half of fiscal 2006 have seen a 7 percent increase, while sales for the second quarter have increased 6 percent over last year's Q2.

Net sales for the second quarter topped $1.35 billion, a 6 percent increase over last year's second quarter net sales of $1.27 billion. Net sales for the first six months of fiscal 2006 totaled $2.52 billion, up from the $2.35 billion reported for the same time period in fiscal 2005.

Net income totaled $6.9 million for the second quarter, up from last year's $5 million in net income. Net income for the first half of fiscal 2006 was $8.6 million, beating the first half of 2005 net income of $5 million.

Interest expenses for the second quarter dropped from $3 million in 2005 to $600,000, due to lower interest rates with the company's debt facility and reduced average borrowings during the second quarter.

As of June 30, 2006 the company had $126.8 million in long term debt, an increase from the $37 million in debt as of March 31, 2006. The company attributes this increase from the first quarter to the second to the recent purchase of assets from the Klein Candy Co. L.P.

Core-Mark has also revised its fiscal 2006 expectations to total approximately $5.25 billion in net sales for the year, an increase from what was previously anticipated. The net sales will include money from the sale of its Pennsylvania division, which accounts for the assets acquired from the Klein Candy acquisition.

The capital expenditure plan for the company will equal $16 million for fiscal 2006, assuming no additional acquisitions. That increase from 2005 is for the planned replacement of a distribution center and new refrigeration equipment.

Core-Mark provides distribution and logistic services to more than 21,000 retail locations across 45 states and five Canadian provinces. The company maintains 25 distribution centers and services the convenience, drug, liquor, specialty and grocery channels.