Core Viewpoint - CrossAmerica Partners held its first quarter 2025 earnings call, with key executives providing insights into operational performance and financial results [1][3]. Group 1: Operational Performance - Charles Nifong, CEO and President, will provide an overview of CrossAmerica's operational performance for the first quarter [3]. Group 2: Financial Results - Maura Topper, Chief Financial Officer, will discuss the financial results following the operational overview [3]. Group 3: Call Structure - The call will include a presentation followed by a question-and-answer session, with slides available on the CrossAmerica website [4].

Crossamerica Partners (CAPL) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Company Participants Maura Topper - CFOCharles Nifong - CEO and President Operator Morning, ladies and gentlemen, and welcome to the CrossAmerica Partners First Quarter twenty twenty five Earnings Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press 0 for the operator. This call ...

Financial Data and Key Metrics Changes - The company reported a net loss of $7.1 million for Q1 2025, an improvement from a net loss of $17.5 million in Q1 2024, driven by ongoing class of trade conversions and real estate rationalization efforts [23] - Adjusted EBITDA for Q1 2025 was $24.3 million, a 3% increase from $23.6 million in Q1 2024 [24] - Distributable cash flow decreased to $9.1 million in Q1 2025 from $11.7 million in Q1 2024, primarily due to higher cash interest expense and sustaining capital expenditures [24] Business Line Data and Key Metrics Changes - Retail segment gross profit increased by 16% to $63.2 million in Q1 2025 compared to $54.4 million in Q1 2024, driven by increases in both motor fuel and merchandise gross profit [8] - Wholesale segment gross profit declined by 1% to $26.7 million in Q1 2025, primarily due to a decline in fuel volume and rental income [17] - Inside sales on a same-site basis were down approximately 1.5% year over year, while inside sales excluding cigarettes declined by 1% [13] Market Data and Key Metrics Changes - Retail same-store fuel volume was approximately in line with the overall market, while same-store merchandise sales, excluding cigarettes, outperformed the market but were still below prior year results [7] - National gasoline demand was down approximately 4% for the quarter, reflecting broader market trends [10] - The company’s retail fuel margin increased by 10% year over year to 33.9 cents per gallon in Q1 2025, compared to 30.8 cents per gallon in Q1 2024 [8] Company Strategy and Development Direction - The company continues to focus on converting lessee dealer sites to company-operated retail sites, increasing overall retail site count by 64 sites year over year [16] - The strategy includes optimizing class of trade operations and ongoing real estate rationalization to generate additional capital for strategic investments [31] - The company aims to grow motor fuel and merchandise gross profit and overall segment profitability through site conversions and increased retail exposure [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging start to the year due to subdued demand for fuel and merchandise, significant winter weather, and inflationary pressures [21] - Despite these challenges, management expressed optimism about the execution of their strategy and the potential for improved performance in the upcoming summer driving season [22] - The company remains focused on maintaining a strong balance sheet and generating value for unitholders [32] Other Important Information - The company divested seven sites for $8.6 million in proceeds during the quarter, with expectations to continue this momentum throughout 2025 [21] - Operating expenses for the retail segment increased by approximately 20% year over year, primarily due to an increase in average site count [26] - The company spent a total of $10.1 million on capital expenditures in Q1 2025, with $7.4 million allocated to growth-related projects [28] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with closing comments from the CEO [34][35]

May 2025 First Quarter 2025 Earnings Call First Quarter 2025 Earnings Call May 2025 Forward Looking Statement Statements contained in this presentation that state the Partnership's or management's expectations or predictions of the future are forward-looking statements. The words "believe," "expect," "should," "intends," "anticipates", "estimates," "target" and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projec ...

Financial Performance - Operating revenues for Q1 2025 were $862.475 million, a decrease of 8.4% compared to $941.548 million in Q1 2024[13] - Gross profit increased to $89.814 million in Q1 2025, up 10.4% from $81.348 million in Q1 2024[13] - Net loss for Q1 2025 was $7.115 million, an improvement from a net loss of $17.540 million in Q1 2024, representing a 59.5% reduction in losses[13] - The company reported a basic net loss per common unit of $0.20 for Q1 2025, an improvement from $0.48 in Q1 2024[13] - For the three months ended March 31, 2025, the net loss was $7.115 million, a significant improvement from a net loss of $17.540 million in the same period of 2024, representing a reduction of approximately 59%[19] - Operating income for the three months ended March 31, 2025, was $2,001,000, compared to a loss of $(13,045,000) in the same period of 2024[86] Assets and Liabilities - Total current assets increased to $151.447 million as of March 31, 2025, compared to $118.830 million at the end of 2024, reflecting a growth of 27.5%[11] - Total liabilities stood at $1.142 billion as of March 31, 2025, slightly up from $1.139 billion at the end of 2024[11] - The company’s total assets decreased to $1.087 billion as of March 31, 2025, from $1.115 billion at the end of 2024, a decline of 2.5%[11] - Cash and cash equivalents increased significantly to $6.748 million as of March 31, 2025, compared to $3.381 million at the end of 2024, marking a 99.5% increase[11] - Accounts receivable from fuel and merchandise sales decreased to $27,380,000 as of March 31, 2025, from $30,115,000 at December 31, 2024[86] Operating Expenses and Cash Flow - Operating expenses rose to $92.850 million in Q1 2025, compared to $77.587 million in Q1 2024, indicating a 19.5% increase[13] - Net cash provided by operating activities increased to $15.047 million, compared to $5.816 million for the same period in 2024, marking an increase of approximately 158%[19] - Cash paid for interest in the first quarter of 2025 was $12,353,000, an increase from $9,925,000 in the same period of 2024[91] Capital Expenditures and Investments - The company recorded capital expenditures of $10.114 million for the three months ended March 31, 2025, compared to $6.105 million in the same period of 2024, reflecting an increase of approximately 65%[19] - The total assets held for sale increased to $41.895 million as of March 31, 2025, compared to $8.994 million as of December 31, 2024, indicating a significant rise of approximately 366%[33] - The company sold seven properties for $8.6 million during the three months ended March 31, 2025, resulting in a net gain of $5.6 million[33] Debt and Financial Covenants - Long-term debt increased to $778.000 million as of March 31, 2025, up from $767.500 million as of December 31, 2024, representing an increase of approximately 1.9%[40] - The effective interest rate on the Credit Facility was 6.1% as of March 31, 2025, with an applicable margin of 2.25%[41] - The company was in compliance with its financial covenants under the Credit Facility, with availability of $86.8 million as of March 31, 2025[42] Environmental and Other Liabilities - Environmental liabilities recorded on the balance sheet totaled $7.8 million as of March 31, 2025, down from $8.4 million at the end of 2024[63] - The company maintains insurance coverage for environmental liabilities, with indemnification assets totaling $6.1 million as of March 31, 2025[63] Revenue Segments - The wholesale segment generated revenues of $380,240,000 from fuel sales, down from $467,478,000 in the prior year, while the retail segment's revenues increased to $482,235,000 from $474,070,000[84] - Revenues from TopStar, an affiliated entity, were $8.8 million for the three months ended March 31, 2025, down from $10.7 million in 2024[48] Distributions and Tax Benefits - The company declared distributions of $0.5250 per common unit for both the quarters ended December 31, 2024, and March 31, 2025, totaling $19,981,000 and $20,001,000 respectively[78] - The effective tax benefit recorded was $3.6 million for the three months ended March 31, 2025, compared to $5.8 million in 2024, primarily due to losses incurred by corporate subsidiaries[76] Other Financial Instruments - Interest rate swap contracts with a notional amount of $150 million and fixed rates ranging from 0.298% to 4.121% are in place, with some maturing as late as March 2028[8] - The company recognized a net realized gain from interest rate swap settlements of $0.9 million for the three months ended March 31, 2025, compared to $5.1 million for the same period in 2024[45] - A net gain of $2.1 million is expected to be reclassified from accumulated other comprehensive income into interest expense over the next 12 months, subject to interest rate fluctuations[46] Concentration Risks - Approximately 79% of motor fuel was purchased from four suppliers for the three months ended March 31, 2025, indicating a concentration risk in supply[30]

Financial Performance - CrossAmerica reported a net loss of $7.1 million for Q1 2025, an improvement from a net loss of $17.5 million in Q1 2024[5]. - Operating revenues for Q1 2025 were $862.475 million, a decrease of 8.4% from $941.548 million in Q1 2024[22]. - Gross profit increased to $89.814 million in Q1 2025, up 10.4% from $81.348 million in Q1 2024[22]. - Net loss for Q1 2025 was $7.115 million, an improvement from a net loss of $17.540 million in Q1 2024[24]. - EBITDA for Q1 2025 was $28.435 million, significantly higher than $5.925 million in Q1 2024[33]. - Adjusted EBITDA for Q1 2025 was $24.3 million, up from $23.6 million in Q1 2024, driven by a 16% increase in retail segment gross profit[5][6]. - Adjusted EBITDA for Q1 2025 was $24.269 million, slightly up from $23.568 million in Q1 2024[33]. Retail Segment Performance - Retail segment gross profit increased to $63.2 million in Q1 2025 from $54.4 million in Q1 2024, while wholesale segment gross profit slightly decreased to $26.7 million from $27.0 million[5][11]. - Total retail segment gross profit rose to $63.159 million in Q1 2025, compared to $54.386 million in Q1 2024, reflecting a 16.1% increase[25]. - Retail segment motor fuel gallons distributed increased to 126.5 million in Q1 2025, compared to 121.7 million in Q1 2024, with a 10% increase in margin per gallon[7][8]. - The volume of gallons sold in the retail segment was 126.532 million in Q1 2025, compared to 121.717 million in Q1 2024[25]. - Margin per gallon for retail fuel sites improved to $0.339 in Q1 2025 from $0.308 in Q1 2024[25]. - Same store merchandise sales excluding cigarettes declined by 1% in Q1 2025 compared to Q1 2024, with merchandise gross profit percentage slightly decreasing to 27.9%[9]. Operational Metrics - The distribution coverage ratio for the trailing twelve months ended March 31, 2025, was 1.04 times, down from 1.37 times for the same period in 2024[4][6]. - Distribution Coverage Ratio decreased to 0.46x in Q1 2025 from 0.59x in Q1 2024[33]. - Operating expenses for the retail segment rose by 20% to $51.7 million in Q1 2025, primarily due to a 17% increase in the average company-operated site count[10]. - The number of company-operated retail sites increased to 376 in Q1 2025, up from 343 in Q1 2024[25]. Real Estate and Capital Expenditures - CrossAmerica sold seven sites for $8.6 million in proceeds during Q1 2025, resulting in a net gain of $5.6 million as part of its real estate rationalization efforts[12]. - Sustaining capital expenditures are aimed at maintaining long-term operating income and capacity, including maintaining existing contract volumes and site conditions[35]. Debt and Financial Outlook - As of March 31, 2025, CrossAmerica had $778.0 million outstanding under its CAPL Credit Facility, with a leverage ratio of 4.27 times[13]. - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q1 2025, payable on May 15, 2025[14]. - The Partnership incurred acquisition-related costs, including legal fees and separation benefits, associated with recent acquisitions[35]. - The Partnership's forward-looking statements indicate that actual results may differ materially from projections due to various factors[36].

Core Insights - CrossAmerica Partners LP reported a net loss of $7.1 million for Q1 2025, an improvement from a net loss of $17.5 million in Q1 2024, indicating a challenging yet improving financial landscape for the company [4][5][6] - Adjusted EBITDA for Q1 2025 was $24.3 million, slightly up from $23.6 million in the same period last year, driven by increased gross profit in the retail segment [4][5][6] - The company continues to execute its asset rationalization strategy, enhancing its portfolio strength for future growth [3][4] Financial Performance - Net Income (Loss): Q1 2025 reported a loss of $7.1 million compared to a loss of $17.5 million in Q1 2024 [4][5] - Adjusted EBITDA: Increased to $24.3 million in Q1 2025 from $23.6 million in Q1 2024 [4][5] - Distributable Cash Flow: Decreased to $9.1 million in Q1 2025 from $11.7 million in Q1 2024 [4][5] - Distribution Coverage Ratio: Current quarter at 0.46x compared to 0.59x in Q1 2024; trailing twelve months at 1.04x compared to 1.37x [4][5] Retail Segment Highlights - Retail segment gross profit increased to $63.2 million in Q1 2025 from $54.4 million in Q1 2024, a 16% increase [7][8] - Motor fuel gallons distributed in the retail segment rose to 126.5 million from 121.7 million year-over-year [7][8] - Same-store merchandise sales excluding cigarettes decreased by 1% to $48.7 million in Q1 2025 [10] Wholesale Segment Highlights - Wholesale segment gross profit slightly decreased to $26.7 million in Q1 2025 from $27.0 million in Q1 2024 [12][13] - Motor fuel gallons distributed in the wholesale segment fell to 162.9 million from 184.0 million year-over-year [12][13] - Average wholesale gross profit per gallon increased to $0.097 from $0.079 [12][13] Asset Management and Divestment - CrossAmerica sold seven sites for $8.6 million in proceeds during Q1 2025, resulting in a net gain of $5.6 million [14] - The company is actively rationalizing its real estate assets to optimize its operational efficiency [14][6] Liquidity and Capital Resources - As of March 31, 2025, CrossAmerica had $778.0 million outstanding under its credit facility, with approximately $87.2 million available for future borrowings [15] - Leverage ratio was 4.27 times as of March 31, 2025, down from 4.36 times at the end of 2024 [15] Distribution Information - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q1 2025, to be paid on May 15, 2025 [16]

Group 1: Company Overview - CrossAmerica Partners (CAPL) is a notable stock within the Oils-Energy sector, which consists of 246 companies and ranks 13 in the Zacks Sector Rank [2] - CAPL currently holds a Zacks Rank of 1 (Strong Buy), indicating a favorable earnings outlook [3] Group 2: Performance Metrics - Over the past quarter, the Zacks Consensus Estimate for CAPL's full-year earnings has increased by 72.7%, reflecting improved analyst sentiment [4] - Year-to-date, CAPL has gained approximately 4.7%, while the Oils-Energy sector has seen an average return of -7%, demonstrating CAPL's outperformance [4] Group 3: Industry Context - CAPL is part of the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, which includes 6 stocks and ranks 53 in the Zacks Industry Rank; this group has gained an average of 0.7% this year [6] - In contrast, National Fuel Gas (NFG), another stock in the Oils-Energy sector, has a year-to-date return of 30.1% and is part of the Oil and Gas - Integrated - United States industry, which has declined by -8.6% this year [5][7]

Company Overview - CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and convenience store operator, formed in 2012 [5] - The company distributes branded and unbranded petroleum for motor vehicles across approximately 1,600 locations and owns or leases around 1,100 sites [5] - CrossAmerica Partners operates in 34 states and has established relationships with major oil brands including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66 [5] - It ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and is in the top 10 for additional brands [5] Upcoming Earnings Announcement - CrossAmerica Partners will release its first quarter 2025 results after the market closes on May 7, 2025 [2] - A conference call will be hosted by management on May 8, 2025, at 9:00 a.m. Eastern Time [2] - The conference call can be accessed via phone numbers 800-717-1738 or 646-307-1865, with a passcode of 274981 [3] Investor Relations - A live audio webcast of the conference call and related earnings materials will be available on the investor section of the CrossAmerica website on the same day [3] - An archive of the webcast will be accessible within 24 hours after the call for a period of sixty days [4] - For further inquiries, investors can contact Randy Palmer at 610-625-8000 or via email at rpalmer@caplp.com [6]

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