Quarterly Financial Data (Unaudited)

The tables below provide our unaudited consolidated results of operations for each of the four quarters in 2011 and 2010:



	Three Months Ended
	(unaudited)
	(dollars in millions, except per share data)
	December 31,				September 30,				June 30,				March 31,
	2011				2011				2011				2011
Net sales — Cigarettes ⁽¹⁾	$	1,490.7			$	1,566.4			$	1,430.5			$	1,223.0
Net sales — Food/non-food ⁽¹⁾	636.8				658.7				609.3				499.5
Net sales ⁽¹⁾	2,127.5				2,225.1				2,039.8				1,722.5
Cost of goods sold	2,017.7				2,102.9				1,930.0				1,630.2
Gross profit ^{(2, 3)}	109.8				122.2			⁽²⁾	109.8			⁽²⁾	92.3			⁽³⁾
Warehousing and distribution expenses ⁽⁴⁾	61.2				61.7				57.8				53.9
Selling, general and administrative expenses ⁽⁵⁾	39.0			⁽⁵⁾	38.6			⁽⁵⁾	36.5			⁽⁵⁾	36.7			⁽⁵⁾
Amortization of intangible assets	0.9				0.8				0.8				0.5
Total operating expenses	101.1				101.1				95.1				91.1
Income from operations	8.7				21.1				14.7				1.2
Interest expense	(0.6		)		(0.6		)		(0.6		)		(0.6		)
Interest income	—				0.2				0.1				0.1
Foreign currency gains (losses), net	0.1				(1.4		)		0.2				0.6
Income before income taxes	8.2				19.3				14.4				1.3
Income tax provision	(3.0		)		(7.3		)		(5.9		)		(0.8		)
Net income	5.2				12.0				8.5				0.5
Basic net income per common share ⁽⁶⁾	$	0.46			$	1.05			$	0.74			$	0.04
Diluted net income per common share ⁽⁶⁾	$	0.45			$	1.03			$	0.72			$	0.04
Shares used to compute basic net income
per common share	11.4				11.4				11.5				11.3
Shares used to compute diluted net income
per common share	11.5				11.7				11.9				11.8

Excise taxes ⁽¹⁾	$	494.0			$	534.0			$	496.5			$	427.0
Cigarette inventory holding gains ⁽⁷⁾	2.9				4.4				—				0.9
LIFO expense	5.8				5.0				4.6				2.9
Depreciation and amortization	6.3				5.4				5.6				5.1
Stock-based compensation	1.4				1.6				1.2				1.3
Capital expenditures	13.0				5.3				4.5				1.3

____________________________________________


(1)	Excise taxes are included as a component of net sales.


(2)	Includes for Q2 and Q3, respectively, approximately $4.2 million and $1.7 million of candy inventory holding gains resulting from manufacturer price increases. The candy inventory holding gains were estimated as the amount in excess of our normal manufacturer incentives for those products sold in 2011.


(3)	Includes a $0.8 million OTP tax settlement which was recorded as a decrease to cost of goods sold during Q1.


(4)	Warehousing and distribution expenses are not included as a component of the Company's cost of goods sold which presentation may differ from that of other registrants.

(5)

SG&A expenses include acquisition and transition costs related to FCGC, consisting of $0.8 million in Q4, $0.4 million in Q3, $0.8 million in Q2 and $0.7 million in Q1. SG&A expenses also include start-up costs of $0.4 million in Q4 and $1.4 million in Q3 related to related to the start-up of the Florida distribution center and other infrastructure costs to support the new distribution agreement with Couche-Tard.


(6)	Totals may not agree with full year amounts due to rounding and separate calculations for each quarter.


(7)	Cigarette inventory holding gains relate to income we earn on cigarette and excise tax stamp quantities on hand at the time cigarette manufacturers increase their prices or when states, localities or provinces increase their excise taxes and allow us to recognize cigarette inventory holding gains.



	Three Months Ended
	(unaudited)
	(dollars in millions, except per share data)
	December 31,				September 30,				June 30,				March 31,
	2010				2010				2010				2010
Net sales — Cigarettes ⁽¹⁾	$	1,321.5			$	1,400.9			$	1,283.5			$	1,113.8
Net sales — Food/non-food ⁽¹⁾	535.3				592.7				550.8				468.3
Net sales ⁽¹⁾	1,856.8				1,993.6				1,834.3				1,582.1
Cost of goods sold	1,762.5				1,887.5				1,737.2				1,494.3
Gross profit	94.3				106.1			⁽²⁾	97.1				87.8			⁽³⁾
Warehousing and distribution expenses ⁽⁴⁾	54.8				55.8				52.1				49.1
Selling, general and administrative expenses ⁽⁵⁾	38.7			⁽⁵⁾	36.2			⁽⁵⁾	32.2			⁽⁵⁾	35.4
Amortization of intangible assets	0.6				0.5				0.5				0.5
Total operating expenses	94.1				92.5				84.8				85.0
Income from operations	0.2				13.6				12.3				2.8
Interest expense	(0.7		)		(0.8		)		(0.5		)		(0.6		)
Interest income	0.1				0.2				0.1				—
Foreign currency gains (losses), net	0.7				0.4				(0.8		)		0.2
Income before income taxes	0.3				13.4				11.1				2.4
Income tax (provision) benefit	0.6				(4.7		)		(4.4		)		(1.0		)
Net income	0.9				8.7				6.7				1.4
Basic net income per common share ⁽⁶⁾	$	0.08			$	0.81			$	0.62			$	0.13
Diluted net income per common share ⁽⁶⁾	$	0.08			$	0.78			$	0.59			$	0.12
Shares used to compute basic net income
per common share	11.0				10.8				10.8				10.7
Shares used to compute diluted net income
per common share	11.7				11.3				11.3				11.4

Excise taxes ⁽¹⁾	$	464.8			$	492.7			$	429.4			$	369.6
Cigarette inventory holding gains ⁽⁷⁾	3.1				—				2.4				0.6
LIFO expense	8.8				2.9				3.6				1.3
Depreciation and amortization	5.3				4.9				4.8				4.7
Stock-based compensation	1.1				1.1				1.2				1.4
Capital expenditures	4.6				3.8				2.5				3.0

______________________________________________


(1)	Excise taxes are included as a component of net sales.


(2)	Includes an out of period adjustment of $1.1 million related to the recognition of deferred vendor income, of which $0.7 million related to prior years. The adjustment is immaterial to any prior period.


(3)	Includes a $0.6 million OTP tax gain resulting from a state tax method change which was recorded as a reduction of cost of goods sold during the first quarter of 2010.


(4)	Warehousing and distribution expenses are not included as a component of the Company's cost of goods sold which presentation may differ from that of other registrants.

(5)

SG&A expenses include integration costs related to the acquisition of FDI, consisting of $1.5 million in Q4, $1.2 million in Q3 and $0.1 million in Q2. SG&A expenses also include costs related to the settlement of Fleming legacy insurance claims of $0.6 million in Q4 and $1.0 million in Q2, as well as $0.3 million and $0.8 million of expenses for advisory and due diligence activities necessary to analyze multiple offers from potential acquirers in Q3 and Q4, respectively.


(6)	Totals may not agree with full year amounts due to rounding and separate calculations for each quarter.


(7)	Cigarette inventory holding gains relate to income we earn on cigarette and excise tax stamp quantities on hand at the time cigarette manufacturers increase their prices or when states, localities or provinces increase their excise taxes and allow us to recognize cigarette inventory holding gains.