CORE - Earnings call transcript Q3 2018

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Operator

Welcome to the Core-Mark 2018 Third Quarter Investor Call. My name is Hilda, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. the to turn now will call Ms. over I Draper. Milton Ms. Draper, you begin. may

Milton Gray Draper

welcome operator. Core-Mark's I'd you, everyone like Call. Thank Investor to to XXXX Third Quarter

Executive issued the room are President Matt morning. Tachouet, our today McPherson, Accounting is press Financial Officer; Officer. release Chief Chief this Core-Mark Chief in me Miller, earnings and Also Joining Officer. our Chris its Scott and our earlier

and copy the will is find press a non-GAAP of financial GAAP Investor include tab. can our these under it release. reconciliation You website included A discussion Relations Today's both of earnings to non-GAAP measures. on in GAAP the measures financial

will uncertainties. affect turn We to XX-Qs the We risks statements and Actual forward-looking results with These documents we may that of to refer may you periodically from results. the forward-looking will SEC, call and be future expectations. XX-K also file McPherson. specifically differ our statements. current for risks are now subject Scott the discussion I to materially our over a discussing management's

Scott McPherson

in profitability. everyone, challenge a provide The shortly. significant expansion as business, under X%. of upon little been Good improve after is most highlighted strong with on delivered Chris here and for were more earnings the a this questions. open execution continue solid down us. we improving color that and sales, focus which margin earnings which up has the year. a joining for And of cost out quarter We on another performance thanks I'll driving slightly to quality priority quarter, was us in by for of me. it We our review saw and we'll growth QX and morning,

and $XX up up year, performance. XX% year-over-year. margin were XX%-plus in quarter, million, Earnings leverage over cost the at prior For share by $X.XX per continued helped of improvement in EBITDA coming was

we the well the a details on a one-time earnings, tax by the Based diluted with expenses. there, third represent cash one-time environment. have significant these included XXXX, still industry gain, net adjusting but of benefit aid $X in one-time come in results EPS, performance performed towards will free expect. Chris shareholders type soft earnings offset partially expected targets will even be Our the have million flow. guidance to will from a for return quarter Achieving upward the EBITDA results, our range and to our we

Growing in and As growth. in we direction, out sales margins move leveraging three solutions we than industry, focused our faster category to objectives: management primary cost drive remain leader the that as on the building profitable strategic and skill-sets

As to market I unusually look seen the year at number the Rite face by wins, our same-store our sales cigarette midsized line affected The growth, top small pipeline historical managed sales which with led some Aid headwinds twice down to and average. adjust have weak of share caused guidance. transitions. slower-than-normal landscape, than cartons being a we significant of store we that more also a us We've chain through started

portfolio been the QX positive count improving back has and that focus our we impact Finally, underperforming held also driven as This up profitability, on but stores, from continue margins, not part customer our store meet executed we now nicotine, by year overall had date do growth. our stores have positive On on gross targets. XXX and independent net are and profit a sales growth it's to of we're pruning summer busy intended note, the customers we're the that pretty consecutive to efforts same-store sales adding quarter, this months. in well redoubling through deliver over XXst on for new fresh We've foodservice.

to chain one closing have opportunities in good pipeline and XXXX, we we to for good confident are major we ahead, renewal regional developed soon. hope a have look I news on of As the from share we which

recently operational internal did to shortage to issues other in due standpoint perspective, qualified year. legal thanks providing be warehouse from bed, full to down a challenging employees an critical our program a driver As ongoing due better divisions sector. put to under warehouse troubled increase cost tuition-free to though position their The advantage, headway expenses in the with we control remains our affecting a commercial quarter license. broader the distribution our been from to we'll transportation acquire this remained the start one expense. hard and one-time year-over-year. on work The launched take they to We have nearly an largely front, a path share and the expenses a and market make SG&A area were lot of X%

schools while driving it's company, employees have for clearly the be for another phase the XXX program our proving business success the strategic through with candidates great family become of driver yearend. some training a some opportunity it's by graduated provide a we'll And XX to members. has this to partnered have people some program We across This to life-changing stories. We've Core-Mark. for country initiative of year. the professional generated also And valued in

the Westlake, efforts seasonal plan well including headquarters optimistic the of plan company We're system latest to the our we for technology. sits technology a management our finish customers, level Near out driver implementation cost we Texas. vendors out the warehouse category the a high about center voice focused of future, the employees across And where in today our the us. building the operations excellence at and and of and for I'm a on at the independent acquisitions and new have a debt handheld with like drive place in through positioning solid we flow performance us. delivered at in the for and we executing focused term, We're our in Chris. remain be quarter leverage XXXX producing, over front ahead, the consolidation. pay turn the looking ensure free accelerating of of note. We're on the gains the and Looking year, I'll opportunities year driving Core-Mark. the many to to when strong for wins return chain market time to through Thanks, year cash think results making In pursuit busiest share we to and steadfast right for is And to it also again, joining we're to strong in a down regional forward period with finishing addition stores. more a us are now, opportunistic of good industry short,

Christopher Miller

worth profitability everyone. kick metrics hello, Net then strong off, financial for the and Scott, To you, update guidance the the an or share our out. year's last $XX.X are for drivers the or share million items I'll million quarter. in I compared calling impacting and to behind comparability $X.XX year. per per review on $XX.X key income to XX% the will Thank grew quarter our third results. our There things earnings provide few $X.XX for of quarter a

cigarette that first $X.X $X.XX holding per The several one-time offset share stamp is gain approximately inventory or million smaller share. by items totaling is a item $X.XX per

per quarter LIFO $X.XX quarter share year. the for last share impact the Secondly, $X.XX year the this And in year. approximately tax a of per the $X.XX versus expense benefit reduced lastly, this rate income of was provided federal

refer For more table to the release. items, these details press our can you on on

items, improvement operational sales performance of growth quarter. driven category, items impact year's aforementioned the strong over for XX% our the improved was also totaled to the $XX just EBITDA third in non-cigarette healthy Adjusted by EPS and last adjusted increasing earnings at $X.XX, mentioned. net Looking onetime a XX% million, I

which same-store adjusted sales totaled Go mentioned, a of the year's by products over than food store the a of this XX% In driven nicotine OTP business sales Cigarette store last million onetime X.X% X% for profit the QX. Kum quarter. quarter, down X.X% quarter to performance strong Scott by sales & April & $XXX.X sales As million, The greater non-cigarette at and sales driven the was for continue in over the our about an Beauty X.X%, X.X% in Kum in quarter. decline the we holding the were were inventory in respectively. $XX.X X.X%, Sales Same down X.X% to for in the carton Go sales increase for in tax quarter, impacted General basis, loss Gross saw year our same X.X% stamp were and the fresh or quarter the alternative looking increased about X.X% category, growth. $X.X of sales overall. at up categories X.X% by increased non-cigarette X% key increasing a drive the Non-cigarette with increase and up and X.X% grew in or and billion. increased & decline in X.X% the sales on Health, XX% gain.

LIFO year. non-cigarette the margin X.X% million, as from inventory steady. gains, held compared XX% gross Non-cigarette year and good profit quarter. We'll remaining was to expenses the with compared earned Cigarette holding remaining holding of to while in increased year, third million year or Total last from profit QX mix to this a non-cigarette raised flat X.X% XXXX, prices the the compared margin price in from tax $XXX.X million, holding XX we the primarily in $X.X In XX.X% over $XXX.X also and inventory million to achieved improvement and for increase expense with quarter. into $XXX.X by fairly million with $XXX.X gross products primarily remaining $X.X products. basis warehouse costs million last of $XX.X refunds due expenses in productivity year's to last delivery to over which operating flat expanded million mix gross and SG&A Total to QX addition, this third year. $X similar $X.X Remaining about were profit million manufacturers $XXX.X of non-cigarette sold. million, expenses sales year. million September warehouse came last $X.X gross this profit, gains X.XX%, to XX.X% increase driven profit gains Operating improved points last last in profit the gross year's million shift in OTP higher-margin September at gross and essentially was was quarter carry we increased remaining year. flat Remaining excludes cigarette quarter

quarter. driver turnover. of approximately due gross As this remaining profit, $X.X of expenses million, up in year's a remaining were primarily third and gross from profit XX% warehouse costs Transportation challenges delivery were down and staffing in to XX% last percentage year,

drivers as pursuing transportation aggressively previously we As stock the to costs a and increased X.X% are despite and compensation challenge continue that higher in the been internally result near-term. bonus otherwise the SG&A Scott in expenses externally, a mentioned accruals will have employee legal be costs. mentioned, of flat would where quarter

$XXX the approximately at of despite million, increase was improved $XXX third as year's of the million of compared million quarter. costs at at of last carrying price We've Excluding expenses reduced an us $XXX.X benefit Overall, inventory the is third execute gross investments sales the the year. company the and will percent profit with in facility cash additional the of feel increases. as we $XXX operating debt approximately compared year, about through the remaining keeping XX end check. inventory of in manufacturer significant the credit executing first flow costs of anticipation in of with we points end how Free in SG&A The million the was objectives. end to last reduced quarter, to a on sold legal the on for months quarter our our good October. our basis This growth quarter balance since level nine

an being year in million, as the adjusted shares in at an Capital X.X we finish September today. and to repurchased our shares price is the $XX with XXX,XXX about track repurchased in leverage consistent the additional expectation October, range average through about million authorization we with which on to times spending plan We remaining of XX,XXX $XX. leaving of the communicated. approximately debt of previously $XX was are EBITDA, X We

M&A respective over high $XXX As called to updated while raised year. $XXX at low-end release, the our midpoint to the share by and approximately a or represents $XX at of to on about is press line LIFO capital our last $X.XX mid XX% between million We XXXX growth the as quarter per increase to expense, a our we accomplished of capital the we reflect $XXX our nine summary, dividends. these million, The representing million new between return of expected X.X% end expected be be million, $XXX with flexibility last lowered cash requirements. maintaining $X.XX, earnings repurchases billion, reduction year, first work and we'll profitable of through allocation $XX.X and balance a $XX.X of We've at Free market in the levels, to billion increases XX% the points. of to in million, year's good adjusted we've growth In our compared the business outlook from million be X%. the of third position At top our over reposition net $X.XX, be Core-Mark $XX potential Diluted expectations capital billion representing range grow results. midpoint for shareholders and share, guidance to to strong $X.XX at in and and $XX.X driven focus to months our to out the EBITDA cash expected excluding sales. and reducing XX% a investments stock working to lot growth. flow in of through earnings provide

productivity. products, reflect our and quarter margin higher-margin in expansion strong and EBITDA mix our shifting progress improving Our and our efficiency in toward operating the third performance

As operations, look operating leverage and on drive value. growing deliver to note cost focus we expect continue we year of well to on finishing improve XXXX XXXX, high We sales. growth shareholder to and drive close positioned and our solid to entering the out forward

I'll operator Now, for call the to return the questions.

Operator

you. Thank

question-and-answer the ahead. go Mandeville Our [Operator comes Jefferies. begin first now from Instructions] session. Please will Christopher question from We

Christopher Mandeville

net into $X than good want a since at was correctly, guys. EBITDA, that just there anything in the does here, well, just how of Chris, of QX may updated seems if one-time with read this And I that relative the expectations looking the response. things it market down take morning, cost, beginning it share kind I'm come with the case, like simple thinking given make think to bit, not we need I'm the that assume to If sure Hey, interpreting million tax cadence? little guidance that be about the actually consensus? I stamp gain the that's else other to is to

Christopher Miller

be I case. X% cartons are fourth to cigarette quarter. don't think in the I going that's down necessarily Chris, Yeah, think, we the to no, that assuming But are X%

So I'm doesn't - no, guidance the But, consensus case. necessarily not the into so totally sure that's built what's there. out mean that that

Christopher Mandeville

the for the really then, case with trends you was And to that Okay. are then, up since And you on non-cigarette on in Any quarter-to-date when impressive comps QX. color tobacco brought sales side, it expecting comes QX? expectations it growth been guess, you're providing to accounts. official realize quite picking guidance But that it like had up shedding currently some favorable necessarily degree hoping I XXXX, you're sounds not yet. accounts I the or for you're not less while new you

can trying you accounts to you sense you begin a So to new growth I'm your get ultimately just to? of X% X% when algorithm call typically for it, then rate add think back sales that that, and to maybe get speak

Scott McPherson

last see market year continued significant as on we think a year-to-date. to I'd three at the the quality That independent Yeah, gain months. a still revenues, share. and things. into four over is couple momentum say the clearly the One we'll of look we I Chris, for of quality shedded we net were focused said, And had a earnings, we of of accounts number next

say And some positive XXXX. and that you that that some - in in with The in of opportunities thing chain see expect pretty that the saw there that other is positive to to I out, see I'd flat year, we small of it's come bracket. small we'll chain kind there the cyclical was bids as lot would of pretty different know, as pipeline to active. say timing XXXX in I activity the midsize a didn't midsized we see this results

Christopher Mandeville

provide on would non-cigarette? comp, be able quarter-to-date color the to any you And

Scott McPherson

to fourth mean quarter date? You

Christopher Mandeville

Correct.

Scott McPherson

No.

Christopher Mandeville

consensus is cannibalistic not a actually general and would Okay. Then is purely nicotine question be, believes vaping incremental I suppose, next to there consumption. that my

if then, Beauty that what in is that So, and the may first offering And things can I on change year, degree potential given you'd you off, coming guess, category, your impact the for contributing kind actually with and provide how to Ultimately, I'm category curious, that unfold? today? agree that how of regulatory Health to statement. view may the some

Scott McPherson

you appealed But into whole could clearly of the will on and I I Internet to flavors tobacco chosen been a use that And younger that C-store I with to lot as think I the year. the restriction. a enforcement. think flavors. of There pattern, restriction, which combustible caused and see to channel in. speak. restrict some obviously, landscape, I first age the cigarettes, the They I category did Health did cigars. and with over at mean, launched restrict so its is of And contributor nicotine, And skis thing been thing advertising, is to been follow other it's has really I enforcement the age likely and piece about it restrict been same or some of to a they with that clearly. the They channel over did and look and have nicotine think to of the channel When channel, Chris, significant the the demographic, it. with FDA thing And of of has this the cigarettes. for alcohol FDA. think restricted Yeah, category, out Beauty that. wasn't age push out dynamic the when got to a flavors took same the and the they I It's it by follow and lot space flavors, pattern mean, it's oversight safer should alternative think and get really It carting, our they same think, kind governance same the the vape sold channels advertising, and I enforce of that

action in So it's has kind to FDA that Clearly, I of that's the headed. rein aggressive where taken think channel.

and the see run, in bounce see some I much run. the and it we'll cigarettes regulation think in think - I long conform short did. think, like some will it I So cigars I will

Christopher Mandeville

to that follow-up, for a contributor in quarters. to category a maybe were How quickly of the has Scott, to model sales? they direction, penny could your So, move potential account a you business adjust nice those in profit if been recent loss

Scott McPherson

a Well, and to a think I quickly sales I category. because don't going has see this And - of loss very emerging those growing definitely been you're necessarily. anticipate

see I as may see but you a I flavors, in think growth. category, think a see you'll And growth. don't think you'll think an in I slowdown elimination - of you constricting see see the of I slowing may you a

Christopher Mandeville

Okay, quick down X% year-on-year. a and was on basis? go-forward about How Chris. for just runway the modeling one G&A we roughly should a think

Christopher Miller

For depreciation and amortization?

Christopher Mandeville

Right.

Scott McPherson

It would go-forward. be similar to

Christopher Miller

Yeah, it'd be go-forward. similar to

I be comparable this it'd to quarter. think

Christopher Mandeville

Okay. Thanks, guys.

Operator

from question Loop Andrew comes Markets. Wolf next The Capital from

Andrew Wolf

joined on you're than to down quarter, cigarette late, fourth for lower? is the But just that X% sales, growth that? that? elaborate Or you call being looking in quarter you maybe on the the I this Hi. so Could broader a on repeat. into bit quarter, asking is tied lower X% it maybe - carton, to in carton guide based

Scott McPherson

was part Yeah, Andrew, clearly it. that's it - big I of think, a

my Beyond in remarks out couple that, things. of prepared called a we had

pruning we're of we've store is had transitions, we in to Aid Also, of been that. quality affected them months, One very last really aggressive XXX on - earnings. four underperforming revenues, Rite accounts over we've of quality as the focused about had which three

the drivers. with that the cigarettes, that another really was sales as And were primary as along go. So headwind far

Andrew Wolf

Rite how of a maybe an kind to the as much the as so together, stores growth understanding pruning that, like a that you how Aid or or quantify, just Could added much… something percentage up either of have or I separately of or

Scott McPherson

over know a decline, the to - We've X,XXX numbers you I'm it, And that. Rite pruned number months. the know Aid. on yeah, going don't specific give three out just what four talked about over customers. to you last, on you specific not call We the call what carton stores Well, Chris,

Andrew Wolf

that helpful. and assorted I or a to Okay. other ourselves legal we cost you estimate But the was is $X.XX items? of tax Did the out, again, guess, stamp - the so weightings offsets stores, them. we're out in that close X,XXX or figure That's called to can

Christopher Miller

included in that. That's

Andrew Wolf

don't Okay. the know tax was what What in used $X.XX. that I rate you pre-tax exact amount?

Christopher Miller

The pre-tax legal? amount for the

Andrew Wolf

you costs. Well, various the that of $X.XX whole one-time of referenced sort

Christopher Miller

over little A $X million.

Andrew Wolf

got deals bigger will so investors risks only you I could, question, Okay, be they Or well how are comfortable versus But of can know you - regional these, thinking about talking one. parameters like win if the assume sort you've it. want some And a on within to things of your done? chain, of the that that you're I bunch I so if risk smoothly? you're go last

Scott McPherson

- regional not handle of to that And as absorbed And to we've across the go Definitely, that we XXX I the past. and XX think bigger deals capacity about about kinds stores. Yeah, chains. some we're and multiple clearly clearly wherewithal tuck-in those in divisions. the chains have of much talking

Andrew Wolf

Thank Okay. Take care. you.

Scott McPherson

Thanks, Andrew.

Operator

from question Bienvenu Incorporated. a have from Stephens We Ben

Ben Bienvenu

that remaining Good otherwise midpoint I that's function afternoon, remaining We non-food don't it's guidance, I exemption, gross didn't it revenue taking Thanks harder that from of gross our implied mix for slightly just profitability whether suggests is have but profit category I for with be up, function to questions. EPS. wanted of, year-over-year down in sense sales vaping The non-cigarette maybe within a to food, of impacting cigarettes gets we would a at XX be that profit substantially ask of and a the else or more margins, driving as expense sort remaining whether to might comparison math contemplate, wanted maybe business mix guys. XQ, percentage something in flattish, versus that of think, margin? points that's quick XQ XQ. guidance a XQ the as my the get of the to in the about the year-over-year versus XQ basis the profit but gross down assumed

Scott McPherson

and OTP, within lower Vape of have margin our a non-food non-food on of category. what's it. the pressured I pressure bit number But has little little growth really tends Yeah, of Ben, which the on revenue a think, margin high overall a you them. to touched is

Ben Bienvenu

if you to it's then think next back could if get think profit margin longer-term And expansion algorithm? I reasonable the earnings you to that gross delivering for the forward over year, great. remaining Okay,

Scott McPherson

about the in Yeah, way But bps. OTP think, dynamics the it's said, heavily we is, also tremendous that in e-cigs, can that back but going in get XX or think to growth the XX we see great we on business the clearly I then clearly depends to it we growing within - If yes, - category. percentage. to dollars, think non-food you'll be not see margin maybe in the growth I

Ben Bienvenu

Fair enough. And then on the culling how of that of less then, that, profitable that And comes accounts, persists such when numbers? did the long that, you start noise that process? imagine you out would

Scott McPherson

that. the I it's clearly, mean we've group. coming of is be our wanted the right to hard diminishing decision on year, our we we'll a I the portfolio Yeah. feel take started, as the a and we're I customer QX look we think think prune I made diminishing impact assets, will our our that future years forward kind base. I we said, the every going quality in do something was think, had of when the will transportation that at that customer when it going distribution - the show chunk but that kind on lighten did And improve customer results really And we the be of And move. that to think That at was burden that anything didn't it. pressure we and the saw it into I big looked Ben, of business

Ben Bienvenu

Really one SG&A on nice expense me. I on control, particularly what in noise growth then reasonable during SG&A of on you legal a one the reasonable peak called expenses, Chris, what for the quick the great. just the Okay, rate basis? go-forward think, out is but And business. expectation? the from is the season side And

Christopher Miller

I X%. a on say barring its X% items, basis, comparable mean, I'd onetime any to

Ben Bienvenu

That's great. all. Okay, Thanks.

Scott McPherson

Thanks, Ben.

Operator

question from comes Kelly BMO from Capital. next Bania The

Kelly Bania

lowering Was questions. for out you called seems just one pruning that your guidance. accounts. the guess, in of reasons sales Thanks It for guidance? a on question morning. that like taking good Hi, my the the of I

to expectation process your those how what for understand was And curious just works in with that what early chose us just Just that renew? in the year? that help those the not Maybe you contracts customers? processes

Scott McPherson

Yeah, a chains, of I'd to base, contract. lot so call, large- it's that, customer extra-large pricing at-will have relationship. mid- independent chains are our all our an agreement, most A larger, of but under beyond we Kelly, to

we a I And the to - - make trucks at what facing business. was what we summer, as us Ben, looked did sure so our we up for with we were we as had like told want profitable we filling that

to pricing our And a base when the we option at looked find on facing were so we we need another improve but customers number in forced were for year, this at those them the did we supplier. and customer and a what And year, this I I think, to year. and said, summer, last guidance profitable our of looked option, to deep think or was that correction we identified It I went weren't - midcourse so, to no, when with clearly that portfolio. customers us to of wasn't a customer for the considered came quality an more and from the dive options change take that or buy categories definitely is to

Kelly Bania

Okay. how circling much mean, question, of I more the we last transportation this And of guess, continue? then, I back see headwinds that on kind if next could year

Scott McPherson

accounts are that as we down should used or relationship. said a considerably, to as discontinue either that We're customer need like their definitely much that it buying going there Ben, to like portfolio, changes diminish, it always every of where and pruning - lot they that we business diminish in is say, to don't make it year, I Yes, this year. we because review - will told I did

going say impact on it I future forward, for so would - would would lesser have And it years a sure. be

Kelly Bania

recent this in the talk elasticity to X% And I price seeing of in you maybe what heard was missed and I hike? your say the just fourth compared back X% you're normally to quarter, guess, store it. but expectations? cartons, can going And Got see you the to terms what that same down given to you quarter what relative

Scott McPherson

be guidance Yes, when quarter I month I to And X% little that's, not X%. year, the month we we than quarter. to the of about massive more saw see saw And in probably first more but at this - We would a significantly a of of didn't I think, said that. talked We than think, jump little a X%. first the the that. above say some QX this price we impact increase,

Kelly Bania

was little sounds like X% little a October, a worse? QX So above and bit

Scott McPherson

Yes.

Kelly Bania

about that seeing And your to that I getting - business much now, XXXX, yourselves see it impacting right? like the the right of kind kind M&A I thinking doesn't you I in do is anything as algorithm? we're XXXX. getting there's seem guess, you Or back of you're guess, algorithm? Okay. normal Is that changes mean, there

So - And the going are would maybe about forward? you normal just how feeling M&A also, be? algorithm what

Scott McPherson

Sure.

putting make done leverage nice paying number in was game. and that ourselves we I'd doing reposition and it to stopped in comfortably. kind And make one along I back paying allocation go positioning X.X% say down talked into of to So of think XXXX I've us focus bigger a allow I of a acquisition largely paying look focused the opportunities. to guess, capital as to times I definitely debt X% continued down. to And of position. kind really the - us ourselves in that on acquisitions to debt If on job right we'll forward. that and never And at back a down down pipeline and about debt our the be we've to think to- continue I've we acquisition or mid-size comes a would closed XXXX small- my, pursuit

of historical pipeline our two year acquisition was a kind the other to or to every be think, year. one - And one I active. continue So will

we or think, that. years made what over XX acquisitions I like eight something

So I a there's a think runway expectation reasonable in that's and industry. definitely in this acquisitions

Kelly Bania

for And as about existing and coming XXXX? and comment customers any in think up could about process that your and cycle RFP XXXX we rebidding about you feel how be what

Scott McPherson

small- significant come that year I Like announce was was slow situation we don't at some on there's XXXX. stands that on we're existing XXXX. and this that about think of really that see far up - the Yeah, we I but earlier, the at in able end be have have number of to except But which one we'll of couple in right of could mentioned now mid-size call feeling now XXXX, year, next for customer XXXX to- have of, good as number right a a working to a have pretty I'd we're chain what right impact anything up we January we and shortly. hopefully where bids pretty customers, end that XXXX, as

Kelly Bania

you. Thank

Scott McPherson

Thanks, Kelly.

Operator

Chris The from from Sidoti next comes & Company. question McGinnis

Christopher McGinnis

out maybe of morning. good backing organic my Kum maybe we on Go? maybe Food. impact taking on that you for comment and questions. Can start the the just Yeah, just Fresh Thanks & just maybe Can the

Scott McPherson

the our impact Kum biggest grew Go for had out X.X% at we overall, & Food were and fresh really were the an And X%, if range. think, Iowa called our non-food, still growth. I we'll in the that that so & add Yeah, you division up Go, slightly. down and impact look X%, was We if to strong Kum clearly the you be on customer was food food year-over-year, Fresh definitely but so we

sales on had impact growth. they So our non-food definitely an

Christopher McGinnis

then sorry. And that. appreciate I Okay. -

Scott McPherson

Go ahead, go ahead.

Christopher McGinnis

easier for I other be guess, was an into was quarter just ask it should pretty last should and for year-end? costs or the going year to come comp I that on SG&A the high the No. we head back, as not QX

Christopher Miller

Yeah.

say, end There last would it I at be have than some and things year comp I think, and are don't will as year. any workers' earlier, one-time last think but be say like there significant medical things significant I items, X% year. barring X% growth to were should as to said we of look that like I'd So I there But less that. that

Christopher McGinnis

Okay. but a one-time And with early, carryover the itself in looking bit XXXX, quarter to sounds the your know then benefits and it's just it I just like QX. out little little a maybe in

on for growing least in that? you you I the at just comment bottom think bit XXXX that could for little if line, just does maybe a position how

Scott McPherson

little it No, Yeah. is I think, early. a

started have constructing for that have always we too. headwinds out, XXXX We tailwinds some haven't called plan We yet. some our but we did

a EBITDA rate. about and feel to strong So pretty grow optimistic ability XXXX our I still at

Christopher McGinnis

[indiscernible].

Scott McPherson

What was we last that, didn't that Chris, part. hear

Christopher McGinnis

questions Thanks. taking good QX. for I and thank my in you said, luck

Scott McPherson

Thank you.

Christopher Miller

Thank you.

Operator

turn would back questions like for [Operator Instructions] to I no in Draper At show this queue. remarks. call moment, Ms. the we other to other

Milton Gray Draper

hesitate any questions, for your Thank don't all you you if have participation. follow-up And Thank you. to call.

Operator

Thank and this concludes for gentlemen, you. Ladies today's participating. We conference. thank you

disconnect. now may You

Core-Mark Hldg (CORE) 11 Nov 182018 Q3 Earnings call transcript