CST Brands posts net income of USD27m in Q2 2016.
M2 EQUITYBITES-August 8, 2016-CST Brands posts net income of USD27m in Q2 2016
(C)2016 M2 COMMUNICATIONS http://www.m2.com
CST Brands Inc (NYSE: CST), an independent retailer of motor fuels and convenience merchandise in North America, on Friday reported net income of USD27m, or USD0.36 per diluted share, for the second quarter of 2016, ended 30 June 2016.
This was in comparison with net income of USD25m, or USD0.32 per diluted share, in Q2 of 2015.
Operating revenues for the quarter were USD2,518m, as compared with USD2,547m in Q2 of 2015.
Also, for the year to date period, the company has grown its company-operated stores by 19%. The increase in company-operated stores was due to the acquisition of Flash Foods and NTI store openings.
In addition, on 7 July 2016, CST Brands consummated its sale of all 79 stores in the California and Wyoming markets to 7-Eleven Inc and its wholly owned subsidiary, SEI Fuel Services Inc. The closing purchase price for the transaction was USD408m plus adjustments for inventory and working capital.
According to CST, with the closing of this transaction, it expects to realise a significant tax benefit from the completion of a like kind exchange strategy with its acquisition of the Flash Foods properties in Georgia and Florida that closed earlier this year. The company used USD297m of the cash proceeds from the sale to repay borrowings under its revolving credit facility.
CST Brands offers a broad array of convenience merchandise, beverages, snacks and fresh food. In the US, CST Corner Stores sell fuel and signature products such as Fresh Choices baked and packaged goods, U Force energy and sport drinks, Cibolo Mountain coffee, FC Soda and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Depanneur du Coin and Corner Stores sell signature Transit Cafe coffee and pastries. CST also owns the general partner of CrossAmerica Partners LP, a master limited partnership and wholesale distributor of fuels, based in Allentown, Pennsylvania.
((Comments on this story may be sent to email@example.com))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 EquityBites (EQB)|
|Article Type:||Financial report|
|Date:||Aug 8, 2016|
|Previous Article:||Tiptree reports decrease in net income for Q2 2016.|
|Next Article:||Qualcomm and vivo sign new 3G/4G patent license agreement in China.|