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 first quarter ended March 31, 2014. Three Months Results For the three month period ended March 31, 2014, the Company reported net income of $11 million, or $0.14 per diluted share. Net income was $23 million, or $0.30 per diluted share, for the comparable period in 2013. During the first quarter of 2013, the Company was still a wholly-owned subsidiary of Valero and, as such, the first quarter of 2013 results do not include all of the expenses associated with being a public company. For the first quarter of 2014, the U.S. motor fuel gross margin (cents per gallon or CPG), after deducting credit card fees, was $0.10 compared to $0.08 in the first quarter of 2013. The increase in CPG was driven by less volatility in crude oil and wholesale motor fuel prices as well as the Company's marketing strategy, subsequent to the spin-off, as an independent retailer of motor fuel. U.S. merchandise gross margin, net of credit card fees, increased from 29.7% for the first quarter of 2013 to 30.6% for the same period in 2014, driven by the contribution of higher-margin merchandise items sold at the Company's new stores, such as proprietary brand and fresh food offerings, and an increase in gross margin percentage in the cigarette category during the quarter. During the first quarter of 2014, the Canada motor fuel gross margin (cents per gallon or CPG), after deducting credit card fees, was $0.21 compared to $0.22 in the first quarter of 2013, due to weakness of the Canadian dollar relative to the U.S. dollar. The decrease in the value of the Canadian dollar resulted in an $8 million decline to overall gross margin. Canada merchandise gross margin, net of credit card fees, increased from 27.5% for the first quarter of 2013 to 28.1% for the first quarter of 2014.