CST Brands, Inc. (NYSE: CST), one of the largest independent retailers of motor fuels and convenience merchandise in North America, today reported financial results for the second quarter ended June 30, 2013.
“We are extremely proud of our accomplishments since our May 1 spin,” said Kim Bowers, CST Chairman and CEO. “Our nearly 12,000 dedicated, hardworking employees never missed a beat. Our Corner Store Team Members continue to provide excellent customer service to our 10 million loyal, weekly customers; and our Service Center Team Members worked extraordinarily hard to make sure the transition to our new, independent company was a success.”
Three Months Results
For the three month period ending June 30, 2013, the Company reported net income of $43 million or $0.57 per diluted share. Included in net income is a deferred tax charge of approximately $7 million resulting from the loss of certain state tax credits that were no longer eligible for use in the Company's consolidated tax return after the separation and distribution from Valero. Excluding this spin-related tax charge, net income would have been $50 million or $0.66 per diluted share. Net income was $108 million or $1.43 per diluted share for the comparable period in 2012.
Revenues totaled $3.2 billion for the second quarter of 2013 compared to $3.3 billion for the same period of 2012. The modest decrease was driven in part by a $0.17 per gallon decline in the Company's average motor fuel selling price in the U.S. segment, accounting for $48 million of the decline in the U.S. segment motor fuel revenues. There was an average of 21 fewer retail fuel sites operating in the Canadian segment in the second quarter of 2013, compared to the same period last year, which was the primary reason for the overall decrease of $66 million in the Canadian segment motor fuel revenues. Also contributing to the overall revenue decline in the Canadian segment was a $21 million impact from foreign currency effects of the Canadian dollar relative to the U.S. dollar.