San Antonio-based CST Brands, one of the largest independent retailers of motor fuels and convenience merchandise in North America, plans to dispose of approximately 100 Corner Store locations across the U.S.
The company made the announcement when it reported its fourth quarter and fiscal 2013 earnings on Thursday, and said the decision is the result of an ongoing assessment as well as market reviews taking place across its markets in the U.S.
CST has identified approximately 100 stores that it said are “no longer core” to the company’s ongoing strategy. The decision to close them was based on several criteria, and while many of the stores may be smaller in square footage and below CST Brands’ store average from an inside sales and EBITDA perspective, the 100 locations still average more than 3,000 gallons of fuel sold per store per day. CST said that makes them attractive locations for sale and that they could potentially be added as customers for its wholesale distribution business.
NRC Realty & Capital Advisors is assisting in the disposition of the properties, which should be ready to market by the middle of April. CST Brands said it would provide more details as the process moves forward.
The company closed seven U.S. Corner Store locations in its fourth quarter, and a total of 11 during the fiscal year. It also opened 22 new stores in 2013 and will build more in 2014. It expects to open 30 newly built stores in the U.S. and eight in Canada this year.
Revenues, earnings reflect spinoff from Valero
CST Brands’ revenues were approximately $12.8 billion for the year ended Dec. 31, 2013, vs. $13.1 billion a year ago. Adjusted EBITDA was $366 million this year vs. $429 million for fiscal 2012.
The company had an increase of $13 million in operating expenses related to new store growth along with an increase of $17 million of general and administrative expenses primarily associated with its spinoff from Valero Energy Corp. last year.
“As you compare our 2013 results to 2012, keep in mind that we took on additional costs as we established ourselves as an independent, publicly traded company,” said Kim Bowers, chairman and CEO of CST Brands. “Soon we will be completing our first year as CST, and we look forward to 2014 and building on our significant 2013 accomplishments.”
