2017 Q2 Form 10-Q Financial Statement

#000153884917000017 Filed on May 09, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2017 Q1 2016 Q1
Revenue $528.8M $469.3M $367.7M
YoY Change 3.15% 27.61% -23.46%
Cost Of Revenue $487.2M $431.8M $330.6M
YoY Change 3.19% 30.64% -25.34%
Gross Profit $41.62M $37.45M $37.19M
YoY Change 2.73% 0.69% -1.42%
Gross Profit Margin 7.87% 7.98% 10.11%
Selling, General & Admin $11.90M $5.817M $7.005M
YoY Change 141.82% -16.96% -32.94%
% of Gross Profit 28.59% 15.53% 18.84%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $14.30M $14.35M $12.90M
YoY Change 0.27% 11.22% 12.15%
% of Gross Profit 34.36% 38.32% 34.69%
Operating Expenses $42.42M $35.43M $35.32M
YoY Change 20.16% 0.31% -10.11%
Operating Profit $2.718M $5.580M $5.921M
YoY Change -70.95% -5.76% -1467.44%
Interest Expense $6.795M $6.702M $5.065M
YoY Change 19.13% 32.32% 18.4%
% of Operating Profit 250.0% 120.11% 85.54%
Other Income/Expense, Net $127.0K $118.0K $118.0K
YoY Change -59.81% 0.0% 100.0%
Pretax Income -$3.950M -$1.004M $974.0K
YoY Change -199.55% -203.08% -120.94%
Income Tax $49.00K -$2.701M -$795.0K
% Of Pretax Income -81.62%
Net Earnings -$3.993M $1.696M $1.767M
YoY Change -210.12% -4.02% -159.58%
Net Earnings / Revenue -0.76% 0.36% 0.48%
Basic Earnings Per Share $0.02 $0.03
Diluted Earnings Per Share -$118.3K $0.02 $0.03
COMMON SHARES
Basic Shares Outstanding 33.73M shares 33.52M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q2 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.400M $5.800M $2.000M
YoY Change 3.03% 190.0% -59.18%
Cash & Equivalents $3.429M $5.758M $1.975M
Short-Term Investments
Other Short-Term Assets $6.115M $6.017M $6.684M
YoY Change -15.52% -9.98% -29.53%
Inventory $11.91M $12.79M $14.67M
Prepaid Expenses
Receivables $21.20M $22.23M $23.41M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $61.95M $60.72M $57.14M
YoY Change -0.79% 6.28% -24.78%
LONG-TERM ASSETS
Property, Plant & Equipment $661.3M $671.0M $656.3M
YoY Change 1.97% 2.23% 37.25%
Goodwill $89.11M $89.11M $88.18M
YoY Change 0.0% 1.05% 2.5%
Intangibles $72.91M $76.79M $86.32M
YoY Change -11.09% -11.04% -1.74%
Long-Term Investments
YoY Change
Other Assets $20.43M $19.75M $14.18M
YoY Change 32.64% 39.27% 51.47%
Total Long-Term Assets $843.7M $856.6M $845.0M
YoY Change 1.04% 1.38% 26.51%
TOTAL ASSETS
Total Short-Term Assets $61.95M $60.72M $57.14M
Total Long-Term Assets $843.7M $856.6M $845.0M
Total Assets $905.7M $917.3M $902.1M
YoY Change 0.91% 1.69% 21.27%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $36.12M $32.06M $33.50M
YoY Change 2.65% -4.32% -25.23%
Accrued Expenses $16.31M $15.70M $10.67M
YoY Change -10.35% 47.21% -53.35%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.117M $2.123M $8.411M
YoY Change -23.99% -74.76% 1.64%
Total Short-Term Liabilities $84.34M $71.44M $69.17M
YoY Change 19.85% 3.28% -21.2%
LONG-TERM LIABILITIES
Long-Term Debt $470.7M $472.8M $496.1M
YoY Change -2.32% -4.7% 24.69%
Other Long-Term Liabilities $98.55M $99.07M $20.41M
YoY Change 128.09% 385.44% 27.96%
Total Long-Term Liabilities $98.55M $99.07M $20.41M
YoY Change 128.09% 385.44% -95.07%
TOTAL LIABILITIES
Total Short-Term Liabilities $84.34M $71.44M $69.17M
Total Long-Term Liabilities $98.55M $99.07M $20.41M
Total Liabilities $722.0M $711.1M $652.4M
YoY Change 8.83% 9.0% 15.19%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $183.9M $206.5M $249.9M
YoY Change
Total Liabilities & Shareholders Equity $905.7M $917.3M $902.1M
YoY Change 0.91% 1.69% 21.27%

Cashflow Statement

Concept 2017 Q2 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income -$3.993M $1.696M $1.767M
YoY Change -210.12% -4.02% -159.58%
Depreciation, Depletion And Amortization $14.30M $14.35M $12.90M
YoY Change 0.27% 11.22% 12.15%
Cash From Operating Activities $27.60M $21.77M $18.57M
YoY Change 50.0% 17.25% 70.26%
INVESTING ACTIVITIES
Capital Expenditures -$5.700M $2.517M $3.498M
YoY Change 185.0% -28.04% 296.6%
Acquisitions $0.00 $52.26M
YoY Change -100.0% -58.33%
Other Investing Activities $300.0K $400.0K -$55.10M
YoY Change 200.0% -100.73% -55.99%
Cash From Investing Activities -$5.300M -$2.111M -$58.60M
YoY Change 178.95% -96.4% -53.4%
FINANCING ACTIVITIES
Cash Dividend Paid $992.0K $759.0K
YoY Change 30.7% 346.47%
Common Stock Issuance & Retirement, Net $0.00 $2.752M
YoY Change -100.0%
Debt Paid & Issued, Net $495.0K $489.0K
YoY Change 1.23% -28.51%
Cash From Financing Activities -24.60M -$15.25M $40.81M
YoY Change 60.78% -137.38% -60.96%
NET CHANGE
Cash From Operating Activities 27.60M $21.77M $18.57M
Cash From Investing Activities -5.300M -$2.111M -$58.60M
Cash From Financing Activities -24.60M -$15.25M $40.81M
Net Change In Cash -2.300M $4.408M $783.0K
YoY Change -291.67% 462.96% -107.6%
FREE CASH FLOW
Cash From Operating Activities $27.60M $21.77M $18.57M
Capital Expenditures -$5.700M $2.517M $3.498M
Free Cash Flow $33.30M $19.26M $15.07M
YoY Change 63.24% 27.76% 50.35%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentration Risk</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">, we distributed approximately </font><font style="font-family:inherit;font-size:10pt;">14%</font><font style="font-family:inherit;font-size:10pt;"> of our total wholesale distribution volumes to DMS and its affiliates and DMS and its affiliates accounted for approximately </font><font style="font-family:inherit;font-size:10pt;">23%</font><font style="font-family:inherit;font-size:10pt;"> of our rental income. For the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, we distributed approximately </font><font style="font-family:inherit;font-size:10pt;">17%</font><font style="font-family:inherit;font-size:10pt;"> of our total wholesale distribution volumes to DMS and its affiliates and DMS and its affiliates accounted for approximately </font><font style="font-family:inherit;font-size:10pt;">30%</font><font style="font-family:inherit;font-size:10pt;"> of our rental income. For more information regarding transactions with DMS and its affiliates, see Note </font><font style="font-family:inherit;font-size:10pt;">7</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">, our wholesale business purchased approximately </font><font style="font-family:inherit;font-size:10pt;">28%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">27%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">22%</font><font style="font-family:inherit;font-size:10pt;"> of its motor fuel from ExxonMobil, BP and Motiva (Shell), respectively. For the three months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, our wholesale business purchased approximately </font><font style="font-family:inherit;font-size:10pt;">29%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">28%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">26%</font><font style="font-family:inherit;font-size:10pt;"> of its motor fuel from ExxonMobil, BP and Motiva (Shell), respectively. No other fuel suppliers accounted for </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> or more of our motor fuel purchases during the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Valero supplied substantially all of the motor fuel purchased by CST Fuel Supply during all periods presented. During the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">, CST Fuel Supply purchased approximately </font><font style="font-family:inherit;font-size:10pt;">0.4 billion</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">0.5 billion</font><font style="font-family:inherit;font-size:10pt;"> gallons of motor fuel from Valero, respectively.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">, we distributed </font><font style="font-family:inherit;font-size:10pt;">7%</font><font style="font-family:inherit;font-size:10pt;"> of our total wholesale distribution volume to CST retail sites that are not supplied by CST Fuel Supply and received </font><font style="font-family:inherit;font-size:10pt;">20%</font><font style="font-family:inherit;font-size:10pt;"> of our rental income from CST. For the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, we distributed </font><font style="font-family:inherit;font-size:10pt;">8%</font><font style="font-family:inherit;font-size:10pt;"> of our total wholesale distribution volume to CST retail sites that are not supplied by CST Fuel Supply and received </font><font style="font-family:inherit;font-size:10pt;">22%</font><font style="font-family:inherit;font-size:10pt;"> of our rental income from CST.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">, we received </font><font style="font-family:inherit;font-size:10pt;">9%</font><font style="font-family:inherit;font-size:10pt;"> of our rental income from a lessee dealer that operates certain of the retail sites acquired through the PMI and One Stop acquisitions. For the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, we received 6% of our rental income from this lessee dealer.</font></div></div>

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