Core-Mark Provides Update on the Impact of COVID-19 and Withdraws 2020 Guidance

WESTLAKE, Texas, April 14, 2020 (GLOBE NEWSWIRE) -- Core-Mark Holding Company, Inc. (NASDAQ: CORE), one of the largest marketers of fresh, food and broad-line supply solutions to the convenience retail industry in North America, provided an update on the impact of the novel coronavirus pandemic (“COVID-19”). 

“As the COVID-19 crisis continues to evolve, our primary focus is on the health and safety of our employees, our customers and the communities in which we serve,” said Scott E. McPherson, President and Chief Executive Officer.  “Given the level of uncertainty surrounding this crisis and its duration, we are withdrawing our 2020 guidance.   Despite an initial retail surge in early March, we have now faced three consecutive weeks of material year over year volume declines.  We have taken aggressive actions to align our cost structure with the declining volume trends, while maintaining high levels of service to our customer partners and preserving the strength of our balance sheet.  Although no one can adequately prepare for a national crisis of this scale, I am confident in our ability to emerge quickly, propelled by the incredible efforts of our more than 8,000 dedicated associates and the resilience of our committed customers across the US and Canada.”

Update on Recent Business Trends
Following an acceleration in year over year sales growth through the first few weeks of March, Core-Mark experienced a decline in year over year sales volume through the last week of March and into the first two weeks of April 2020. For the most recent week ended April 10, 2020, the Company experienced a year over year sales decline of approximately 12%, reflecting a 7% decline in cigarette sales and a 20% decline in non-cigarette sales.  While the vast majority of Core-Mark’s customers are convenience retailers that continue to operate as essential businesses, the unprecedented impact of COVID-19, including an increase in the level of shelter-in-place orders by states, provinces, cities and counties, has resulted in a significant downturn in miles driven, resulting in a decline in convenience retail store visits across North America.