Quarterly Financial Data (Unaudited)

The tables below provide the Company’s unaudited consolidated results of operations for each of the four quarters in 2014 and 2013:



	Three Months Ended
	(in millions, except per share data)
	December 31,			September 30,			June 30,			March 31,
	2014			2014			2014			2014
Net sales — Cigarettes ⁽¹⁾	$	1,764.6		$	1,858.3		$	1,770.8		$	1,548.3
Net sales — Food/non-food ⁽¹⁾	844.0			889.1			852.4			752.6
Net sales ⁽¹⁾	2,608.6			2,747.4			2,623.2			2,300.9
Cost of goods sold ⁽¹⁾	2,454.0			2,596.0			2,479.9			2,176.5
Gross profit ⁽²⁾	154.6			151.4			143.3			124.4
Warehousing and distribution expenses ⁽³⁾	81.5			83.5			78.1			75.3
Selling, general and administrative expenses ⁽⁴⁾	49.5			47.0			44.0			43.9
Amortization of intangible assets	0.6			0.7			0.7			0.6
Total operating expenses	131.6			131.2			122.8			119.8
Income from operations	23.0			20.2			20.5			4.6
Interest expense	(0.6		)	(0.5		)	(0.6		)	(0.7		)
Interest income	0.2			0.1			0.2			0.1
Foreign currency gains (losses), net	(0.1		)	0.2			(0.2		)	—
Income before income taxes	22.5			20.0			19.9			4.0
Income tax provision	(7.9		)	(6.3		)	(7.9		)	(1.6		)
Net income	14.6			13.7			12.0			2.4
Basic net income per common share ⁽⁵⁾	$	0.63		$	0.59		$	0.52		$	0.11
Diluted net income per common share ⁽⁵⁾	$	0.62		$	0.59		$	0.52		$	0.10
Shares used to compute basic net income
per common share	23.1			23.1			23.1			23.0
Shares used to compute diluted net income
per common share	23.4			23.3			23.2			23.2

Excise taxes ⁽¹⁾	$	530.3		$	567.6		$	539.9		$	472.5
Cigarette inventory holding gains ⁽⁶⁾	4.2			0.2			3.3			0.5
Candy inventory holding gains ⁽⁷⁾	0.8			5.2			—			—
LIFO expense	2.7			6.5			4.3			2.8
Depreciation and amortization	8.6			8.3			7.9			7.2
Stock-based compensation	1.8			1.5			1.5			1.3
Capital expenditures ⁽⁸⁾	29.8			9.3			9.8			5.0

____________________________________________


(1)	Excise taxes are included as a component of net sales and cost of goods sold.


(2)	Includes OTP tax refunds, net of tax assessments, of $6.2 million in Q4 and $2.3 million in Q3 2014.


(3)	Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold, this presentation may differ from that of other registrants.


(4)	Selling, general and administrative expenses (“SG&A”) include acquisition and integration expenses of $1.4 million related primarily to Ohio and the addition of new customers, consisting of $0.7 million in Q4, $0.6 million in Q3, $0.1 million in Q2, and none in Q1.


(5)	Totals may not agree with full year amounts due to rounding.


(6)	Cigarette inventory holding gains relate to income earned on cigarette inventory quantities on hand at the time cigarette manufacturers increase their prices.


(7)	Candy inventory holding gains relate to income earned on candy inventory quantities on hand at the time candy manufacturers increase their prices.


(8)	Capital expenditures increased in Q4 2014 due primarily to facility projects in Ohio and Sacramento along with expenditures to support our new customers.



	Three Months Ended
	(in millions, except per share data)
	December 31,			September 30,			June 30,			March 31,
	2013			2013			2013			2013
Net sales — Cigarettes ⁽¹⁾	$	1,692.0		$	1,783.7		$	1,702.9		$	1,463.4
Net sales — Food/non-food ⁽¹⁾	799.3			837.0			807.0			682.3
Net sales ⁽¹⁾	2,491.3			2,620.7			2,509.9			2,145.7
Cost of goods sold ⁽¹⁾	2,348.0			2,479.9			2,372.9			2,029.7
Gross profit	143.3			140.8			137.0			116.0
Warehousing and distribution expenses ⁽²⁾	77.2			79.4			72.8			67.7
Selling, general and administrative expenses ⁽³⁾	41.6			41.3			42.9			42.5
Amortization of intangible assets	0.7			0.6			0.7			0.7
Total operating expenses	119.5			121.3			116.4			110.9
Income from operations	23.8			19.5			20.6			5.1
Interest expense	(0.6		)	(0.6		)	(0.8		)	(0.7		)
Interest income	0.1			0.1			0.1			0.1
Foreign currency losses, net	(0.1		)	(0.1		)	(0.1		)	(0.4		)
Income before income taxes	23.2			18.9			19.8			4.1
Income tax provision	(8.2		)	(6.6		)	(8.1		)	(1.5		)
Net income	15.0			12.3			11.7			2.6
Basic net income per common share ⁽⁴⁾	$	0.65		$	0.54		$	0.51		$	0.11
Diluted net income per common share ⁽⁴⁾	$	0.65		$	0.53		$	0.51		$	0.11
Shares used to compute basic net income
per common share	23.0			23.0			23.0			23.0
Shares used to compute diluted net income
per common share	23.2			23.2			23.2			23.2

Excise taxes ⁽¹⁾	$	526.7		$	554.9		$	523.6		$	445.6
Cigarette inventory holding gains ⁽⁵⁾	4.1			0.2			3.9			0.8
LIFO (income) expense	(0.1		)	2.2			3.7			2.9
Depreciation and amortization	7.0			6.8			6.8			6.6
Stock-based compensation	0.6			1.3			1.4			1.3
Capital expenditures	5.0			4.6			6.7			1.7

______________________________________________


(1)	Excise taxes are included as a component of net sales and cost of goods sold.


(2)	Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold, this presentation may differ from that of other registrants.


(3)	SG&A expenses include acquisition and integration expenses of $2.5 million related primarily to Davenport and the addition of new customers, consisting of $1.2 million in Q4, $0.5 million in Q3, $0.6 million in Q2, and $0.2 million in Q1.


(4)	Totals may not agree with full year amounts due to rounding.


(5)	Cigarette inventory holding gains relate to income earned on cigarette inventory quantities on hand at the time cigarette manufacturers increase their prices.