CST BRANDS (CST) has reported 84.21 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $3 million, or $0.04 a share in the quarter, compared with $19 million, or $0.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12 million, or $0.15 a share compared with $21 million or $0.27 a share, a year ago. 

Revenue during the quarter grew 16.37 percent to $2,367 million from $2,034 million in the previous year period. Gross margin for the quarter contracted 224 basis points over the previous year period to 12.51 percent. Total expenses were 99.41 percent of quarterly revenues, up from 98.53 percent for the same period last year. That has resulted in a contraction of 88 basis points in operating margin to 0.59 percent.

Operating income for the quarter was $14 million, compared with $30 million in the previous year period.

Kim Lubel, chairman and chief executive officer of CST Brands, said, "As we anticipate the completion of the merger with Circle K Stores, Inc., a wholly-owned subsidiary of Alimentation Couche-Tard Inc., I am proud of what our team has accomplished since becoming a public company four years ago. Since 2013, we have opened 165 new stores in the U.S. and Canada, made several key acquisitions to further support our organic growth strategy, and amplified our proprietary fresh food and private label choices inside our stores. Above all, we grew shareholder value by increasing the stock price of CST by 60% over our four years of operations, with the pending merger with Circle K expected to close in the second quarter."