* Adj EPS $0.95 vs $0.75 year earlier
* Revenue up 16.3 percent at $6.02 billion
* Same-store merchandise sales up 2.8 pct in U.S.
Sept 5 Canadian convenience store operator
Alimentation Couche-Tard Inc said on Wednesday its
adjusted quarterly profit rose, helped in part by recent
acquisitions, stronger merchandise sales and higher fuel
But net earnings fell, reflecting one-time costs associated
with Couche-Tard's recent $2.58 billion acquisition of Norway's
Statoil Fuel & Retail.
Laval, Quebec-based Couche-Tard operates more than 6,000
convenience stores in North America under banners that include
Mac's and Circle K, the majority of which sell motor fuel.
The Statoil deal is its first venture in Europe, bringing in
2,307 locations in Scandinavia, Poland, the Baltics and Russia.
Same-store merchandise sales rose 2.8 percent in the United
States, or 6.6 percent excluding tobacco products, and 5.0
percent in Canada.
Couche-Tard said in July that one cigarette manufacturer's
new supply terms and price structure was hurting its tobacco
"In light of the changing conditions in supply terms and of
the persistent competitive landscape, the tobacco products
category remains a challenge," Chief Executive Alain Bouchard
said in a statement.
He said Couche-Tard was evaluating its options on tobacco,
"with the goal of maximizing the marginal contribution of this
Couche-Tard's road transportation fuel profit margin rose to
23.20 cents a gallon from 19.95 cents in the same quarter last
year. In Canada, it rose to 5.61 cents a liter, from 5.53 cents.
First-quarter earnings fell to $102.9 million, or 57 cents a
share, from $139.5 million, or 75 cents, a year earlier.
Excluding one-time items associated with the Statoil deal,
including a $113.5 million loss on foreign exchange contracts,
earnings rose to $173.0 million, or 95 cents a share. Revenue
rose 16.3 percent to $6.02 billion.
Analysts, on average, had been expecting earnings of 89
cents a share on revenue of $6.74 billion, according to Thomson
The figures include Couche-Tard's pre-existing network
results for the quarter to July 22, and Statoil's operations
from June 20 to 30. The company said it will align the two
units' reporting periods once Statoil's financial systems have
Shares jumped after the earnings release, but then fell back
to levels seen before the announcement. The stock was at
C$49.06, down 2.3 percent from the previous day's close on