Core-Mark Holding Company, Inc. (NASDAQ:CORE) Q1 2020 Earnings Conference Call - Final Transcript

May 07, 2020 • 09:00 am ET

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Core-Mark Holding Company, Inc. (NASDAQ:CORE) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello, and welcome to the Core-Mark First Quarter 2020 Investor Call. My name is Michelle, and I will be the operator for your conference. [Operator instructions]

I will now turn the call over to Mr. David Lawrence. Sir, you may begin.

Executive
David Lawrence

Thank you, and good morning, everyone. Today's call will be led by Scott McPherson, our President and Chief Executive Officer; and Chris Miller, our Chief Financial Officer.

Before turning the call over to Scott, I will point out that Core-Mark intends to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act, as noted in the earnings release we filed this morning. Please remember that our comments today may include forward-looking statements which are subject to risks and uncertainties, and actual results may differ materially from those indicated or implied by such statements. Some of these risks are described in detail in the Company's SEC filings including our quarterly report on Form 10-Q. The Company does not undertake any duty to update such forward-looking statements.

Additionally, we will refer to certain non-GAAP financial measures during this call. You can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure and other related information including a discussion of why we consider these measures useful to investors, in our earnings release and our quarterly report on Form 10-Q.

I'll now turn the call over to Scott.

Executive
Scott McPherson

Thanks everyone for joining us today on our first quarter call. Before I provide my comments on the quarter, I want to take a moment to reflect on how Core-Mark is maneuvering through the impact of COVID-19. From the day we assembled our COVID-19 task force in February, our mantra has been family and community.

When referring to family, I'm talking about the amazing employees that make up the Core-Mark family. Ensuring their health and safety is our first priority and allows Core-Mark to maintain the integrity of our essential supply chain, servicing over 40,000 customers across North America. To that end, our vendor partners have done a great job fighting through the supply and demand challenges, and our value customers have been nothing short of spectacular as they provide essential goods and services to their communities daily.

As we indicated on our April 14 press release regarding the impact of COVID-19, our company has certainly faced volume challenges with sales spikes in the first weeks of March followed by significant sales declines in late March through the month of April. We also outlined the steps we've taken to address these headwinds including elimination of our 401(k) match; modifications to our vacation policy and material head count and work hour reductions in an effort to mitigate the impact of volume shortfalls. Despite the challenges, I am proud of how the organization has responded, making disciplined decisions to preserve the health of the Core-Mark family and the Company.

Circling back to the first quarter results, we performed solid and in line with our expectations. From a bottom-line perspective,