CST Brands Offers Guidance Update

Published in CSP Daily News

Provides available preliminary results for fourth-quarter 2013

SAN ANTONIO -- CST Brands Inc., which spun off from Valero Energy Corp. in May 2013, has provided an update to previous guidance related to its fourth-quarter 2013 operating results. It originally provided this information in Nov. 2013. Although financial statements of CST Brands for the three months ended Dec. 31, 2013, are not yet complete, certain preliminary financial information is available.

Based on such preliminary financial information, CST has provided the following:

U.S. Segment

  • Motor fuel volume, on a gallons per-site, per-day basis, is expected to be close to the low end of the previously provided guidance of 4,850 to 4,950 gallons per-site, per-day.
  • Merchandise sales, on a per-site, per-day basis, is expected to be close to the low end of the previously provided guidance of $3,250 to $3,350 per site per day.
  • Merchandise gross margin percentage, after the deduction of credit card fees, is expected to be slightly above the high end of the previously provided range of 29 to 30%.
  • Although guidance was not previously provided with regard to motor fuel gross margin (cents per gallon), the company expects fourth-quarter cents per gallon, after the deduction of credit-card fees, to be in the range of 14 to 16 cents per gallon.

Canada Segment

  • Motor fuel volume, on a gallons per-site, per-day basis, is expected to be close to the low end of the previously provided guidance of 3,300 to 3,400 gallons per site per day.
  • Merchandise sales, on a per-site, per-day basis, is expected to be close to the low end of the previously provided guidance of $2,500 to $2,600 per-site, per-day.
  • Merchandise gross margin percentage, after the deduction of credit card fees, is expected to be slightly above the high end of the previously provided range of 27 to 28%.
  • Although guidance was not previously provided with regard to motor fuel gross margin (cents per gallon), the company expects fourth-quarter cents per gallon, after the deduction of credit-card fees, to be in the range of 23 to 25 cents per gallon.

CST Brands currently expects to report fourth-quarter and full-year 2013 results in early March.

During the fourth quarter, the company opened two new stores in the United States and five new stores in Canada. For the full-year 2013, CST Brands opened 15 new stores in the United States and seven new stores in Canada.

As of Dec. 31, the company operated a total of 1,036 sites in the United States and 846 sites in Canada (272 company-operated, 499 dealer/agent, fuel only and 75 cardlock, fuel only.

The preliminary financial data upon which this update has been based is subject to completion and reflects the company's current good faith estimates and may be revised as a result of management's further review of the company's results. The company has not completed its normal review procedures as of, and for, the year ended Dec. 31, 2013, and there can be no assurance that the final results for such period will not differ from the preliminary financial data.

CST Brands is one of the largest independent retailers of motor fuels and convenience merchandise in North America. Based in San Antonio, CST Brands employs nearly 12,000 team members at nearly 1,900 locations throughout the southwestern United States and eastern Canada offering a broad array of convenience merchandise, beverages, snacks and fresh food. In the United States, CST Brands' Corner Stores sell Valero fuels 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 Brands is the exclusive provider of Ultramar fuel and its Depanneur du Coin and Corner Stores sell signature Transit Cafe coffee and pastries.