Author's note: I present an update my best small and mid-cap stock ideas that insiders are buying only to subscribers of my exclusive marketplace, T he Insiders Forum . Our model portfolio has more than doubled the return of its benchmark, the Russell 2000, since its launch. To join our community and gain access to our market beating returns, just click HERE .We are a team of analysts led by Bret Jensen, Chief Investment Strategist at Simplified Asset Management. We run the investing group The Insiders Foru ...

Core Points - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that ad-blockers may interfere with website functionality, suggesting users disable them for better access [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper website functionality [1] - The presence of ad-blockers can lead to access restrictions, and users are encouraged to disable them [1]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a net income of $13.6 million, an increase from $10.7 million in Q3 2024, driven by asset sales and reduced interest expenses [17][18] - Adjusted EBITDA for Q3 2025 was $41.3 million, a decline of $2.6 million or 6% compared to the prior year, primarily due to lower fuel and rent gross profit [18][19] - Distributable cash flow increased slightly to $27.8 million from $27.1 million in Q3 2024, attributed to lower cash interest expenses [19] Business Line Data and Key Metrics Changes - Retail segment gross profit decreased 4% to $80 million in Q3 2025 from $83.6 million in Q3 2024, mainly due to lower motor fuel gross profit [4][12] - Retail fuel margin decreased 5% year over year to 38.4 cents per gallon, down from 40.6 cents per gallon [5] - Inside sales on a same-store basis increased approximately 3%, with a 4% increase excluding cigarettes, driven by strong performance in packaged beverages and tobacco products [9][10] Market Data and Key Metrics Changes - National gasoline demand was down approximately 2.5% for the quarter, impacting the company's same-store volume performance [7][14] - The company's overall retail same-store volume declined slightly more than the national average, reflecting strategic pricing adjustments [8][11] Company Strategy and Development Direction - The company continues to focus on strategic asset sales, realizing approximately $100 million year to date, which has strengthened its balance sheet and reduced debt [16][26] - The retail strategy remains unchanged, with a focus on being in the right markets with the right assets [11][28] Management's Comments on Operating Environment and Future Outlook - Management noted a favorable fuel margin environment in October following the quarter end, which is expected to positively impact future results [12][17] - The company is focused on maintaining a strong balance sheet and generating value for unitholders as it looks forward to 2026 [28] Other Important Information - The company reported a decrease in operating expenses by $3.2 million year over year, with G&A expenses down by $0.8 million [21][24] - Capital expenditures for Q3 totaled $6.7 million, with $4.8 million allocated to growth-related projects [25] Q&A Session Summary - No questions were raised during the Q&A session, indicating a lack of immediate inquiries from analysts or investors [29]

Financial Performance - Net income increased by 27% from $10708 thousand in Q3 2024 to $13588 thousand in Q3 2025[9] - Adjusted EBITDA decreased by 6% from $43938 thousand in Q3 2024 to $41309 thousand in Q3 2025[9] - Distributable Cash Flow increased by 2% from $27140 thousand in Q3 2024 to $27773 thousand in Q3 2025[9] - Distribution coverage (paid basis current quarter) increased by 2% from 136x in Q3 2024 to 139x in Q3 2025[9] - Distribution paid per LP Unit remained the same at $05250[9] Retail Segment - Retail gross profit decreased by 4% from $83587 thousand to $79985 thousand[7] - Retail operating income decreased by 6% from $31363 thousand to $29345 thousand[7] - Motor fuel gross profit decreased by 11% from $45759 thousand to $40732 thousand[7] - Merchandise gross profit increased by 5% from $30494 thousand to $31981 thousand[7] - Volume of gallons sold decreased by 4% from 148380 thousand to 141806 thousand[7] Wholesale Segment - Wholesale gross profit decreased by 10% from $27639 thousand to $24785 thousand[7] - Wholesale operating income decreased by 6% from $19097 thousand to $17884 thousand[7] - Motor Fuel Gross Profit decreased by 7% from $16870 thousand to $15718 thousand[7] - Volume of Gallons Distributed decreased by 5% from 186946 thousand to 177662 thousand[7] Capital & Debt - Third quarter 2025 capital expenditures were $67 million, including $48 million of growth capex[13] - Credit facility balance at 09/30/25 was $7055 million[13] - Leverage ratio was 356x at 09/30/25[13]

Financial Performance - CrossAmerica reported a net income of $13.6 million for Q3 2025, up from $10.7 million in Q3 2024, driven by asset sales and reduced interest expenses[4]. - Adjusted EBITDA for Q3 2025 was $41.3 million, a decrease of 6% from $43.9 million in Q3 2024, primarily due to lower fuel and rent gross profit[4]. - Distributable Cash Flow increased to $27.8 million in Q3 2025, compared to $27.1 million in Q3 2024, supported by lower cash interest and capital expenditures[5]. - Operating revenues for the nine months ended September 30, 2025, were $2,796,247, a decrease of 11.3% compared to $3,154,066 in 2024[21]. - Gross profit for the nine months ended September 30, 2025, was $295,576, slightly down from $297,336 in 2024, reflecting a decrease of 0.6%[21]. - Net income for the nine months ended September 30, 2025, increased significantly to $31,641, compared to $5,592 in 2024, representing a growth of 465.5%[23]. - Total EBITDA for the nine months ended September 30, 2025, was $141.7 million, compared to $100.7 million in 2024, marking a 40.7% increase[32]. - For the three months ended September 30, 2025, net income was $13.6 million, compared to $10.7 million for the same period in 2024, representing a 27.5% increase[32]. - Adjusted EBITDA for the three months ended September 30, 2025, was $41.3 million, down from $43.9 million in 2024, indicating a decrease of 3.7%[32]. - Distributable Cash Flow for the three months ended September 30, 2025, was $27.8 million, compared to $27.1 million in 2024, reflecting a 2.6% increase[32]. - The Distribution Coverage Ratio for the three months ended September 30, 2025, was 1.39x, slightly up from 1.36x in 2024[32]. Asset Management - CrossAmerica completed asset sales totaling approximately $22 million in Q3 2025, contributing to a net gain of $7.4 million[3][11]. - CrossAmerica recorded $7.4 million in net gains from real estate rationalization efforts during the three months ended September 30, 2025[36]. - As of September 30, 2025, total assets were $998.9 million, a decrease from $1,114.7 million at the end of 2024[19]. Segment Performance - Retail segment gross profit decreased by 4% to $80.0 million in Q3 2025, while wholesale segment gross profit fell by 10% to $24.8 million[6][10]. - Same-store merchandise sales excluding cigarettes rose by 4% to $75.8 million in Q3 2025, with merchandise gross profit percentage increasing to 28.9%[8]. - Total retail segment gross profit for the nine months ended September 30, 2025, was $219,271, up from $214,617 in 2024, an increase of 2.5%[24]. - Operating income for the Retail segment for the nine months ended September 30, 2025, was $66,099, down from $70,631 in 2024, a decrease of 6.4%[24]. - Total motor fuel distribution sites decreased to 988 as of September 30, 2025, from 1,046 in 2024, a reduction of 5.5%[26]. - Volume of gallons distributed in the Wholesale segment for the nine months ended September 30, 2025, was 519,821, down from 563,082 in 2024, a decrease of 7.7%[26]. - Margin per gallon in the Wholesale segment for the nine months ended September 30, 2025, was $0.090, compared to $0.085 in 2024, an increase of 5.9%[26]. Cost Management - Operating expenses declined by 5% from $60.8 million in Q3 2024 to $57.5 million in Q3 2025, reflecting cost management efforts[4]. - Cash flows from operating activities for the nine months ended September 30, 2025, were $62,065, down from $76,672 in 2024, a decrease of 18.9%[23]. - Cash interest expense for the three months ended September 30, 2025, was $11.3 million, down from $13.7 million in 2024, a decrease of 17.5%[32]. Leverage and Financing - Leverage ratio improved to 3.56 times as of September 30, 2025, down from 4.36 times at the end of 2024[4][12]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $125,903, compared to $47,335 in 2024, indicating a significant increase in cash outflows[23]. Company Overview - CrossAmerica operates approximately 1,600 locations and owns or leases around 1,000 sites across 34 states[33]. - The company has established relationships with major oil brands, including ExxonMobil, BP, and Shell, ranking among the top distributors by fuel volume in the U.S.[33].

Financial Performance - Operating revenues for Q3 2025 were $971.8 million, a decrease of 10% from $1,079.2 million in Q3 2024[13] - Gross profit for Q3 2025 was $104.8 million, down from $111.2 million in Q3 2024, reflecting a gross margin of approximately 10.8%[13] - Net income for Q3 2025 increased to $13.6 million, compared to $10.7 million in Q3 2024, representing a year-over-year growth of 27.5%[13] - Earnings per common unit for Q3 2025 were $0.34, up from $0.27 in Q3 2024, indicating a 25.9% increase[13] - Total revenues for the three months ended September 30, 2025, were $971,847 thousand, a decrease from $1,079,163 thousand in the same period of 2024[85] - Gross profit for the three months ended September 30, 2025, was $104,770 thousand, compared to $111,226 thousand for the same period in 2024, reflecting a decline of approximately 5.1%[86] - Operating income for the three months ended September 30, 2025, was $28,087 thousand, slightly up from $27,096 thousand in 2024, indicating a year-over-year increase of 3.7%[89] - The company reported a net income before income taxes of $16,453 thousand for the three months ended September 30, 2025, compared to $13,124 thousand in 2024, marking an increase of 25.5%[89] Assets and Liabilities - Total assets as of September 30, 2025, were $998.9 million, a decrease from $1,114.7 million at the end of 2024[11] - Total liabilities decreased to $1,060.9 million as of September 30, 2025, down from $1,139.5 million at the end of 2024[11] - Property and equipment, net, decreased to $568,888,000 as of September 30, 2025, from $656,300,000 as of December 31, 2024, indicating a reduction of about 13.3%[35] - Long-term debt and finance lease obligations totaled $710,989,000 as of September 30, 2025, down from $775,436,000 as of December 31, 2024, a decrease of about 8.3%[37] Cash Flow and Investments - The company’s cash and cash equivalents increased to $5.8 million as of September 30, 2025, compared to $3.4 million at the end of 2024[11] - Cash flows from operating activities for the nine months ended September 30, 2025, were $62.065 million, down from $76.672 million in 2024[18] - The company had a net cash increase of $2.385 million for the nine months ended September 30, 2025, compared to $2.775 million in 2024[18] - The company acquired assets from Applegreen for a total consideration of $16.9 million, transitioning 59 locations to company-operated sites[29] Expenses and Costs - Operating expenses for Q3 2025 were $84.1 million, a decrease from $88.8 million in Q3 2024, reflecting cost management efforts[13] - The company reported depreciation, amortization, and accretion expense of $69.671 million for the nine months ended September 30, 2025, compared to $57.903 million in 2024[18] - Impairment charges recorded during the three months ended September 30, 2025, were $4.2 million, compared to $3.2 million in the same period of 2024, reflecting an increase of approximately 31.3%[35] - Cash paid for interest in the nine months ended September 30, 2025, was $36,112 thousand, slightly down from $36,987 thousand in 2024[95] Inventory and Receivables - Total inventory as of September 30, 2025, was $60,967,000, a decrease from $63,169,000 as of December 31, 2024, representing a decline of approximately 3.4%[33] - Total accounts receivable as of September 30, 2025, was $34,572 thousand, an increase from $32,237 thousand at December 31, 2024[89] - Receivables from fuel and merchandise sales increased to $33,421 thousand as of September 30, 2025, from $30,115 thousand at December 31, 2024[89] Environmental and Tax Liabilities - Environmental liabilities recorded on the balance sheet totaled $9.0 million and $8.4 million at September 30, 2025, and December 31, 2024, respectively[63] - Income tax expense for the three months ended September 30, 2025, was $2.9 million, compared to $2.4 million for the same period in 2024[76] - The effective tax rate differs from the combined federal and state statutory rate primarily because only corporate subsidiaries are subject to income tax[76] Distributions and Common Units - The company paid $60.212 million in distributions during the nine months ended September 30, 2025[18] - Common unit distributions to the Topper Group were $7.7 million for each of the three months ended September 30, 2025, and 2024, indicating stability in distributions[49] - Distributions paid on common units for the three months ended September 30, 2025, were $20,012,000, compared to $19,975,000 in 2024[78] Operational Changes - The company converted 13 sites from lessee dealer sites to company-operated or commission agent sites in the retail segment during the three months ended September 30, 2025[84] - The company has exclusive motor fuel distribution contracts with lessee dealers and independent dealers in the wholesale segment[81]

Core Insights - CrossAmerica Partners LP reported solid operating results for Q3 2025, with increases in retail same-store sales and merchandise margin percentage, despite a decline in retail same-store fuel volumes [3][4] - The company completed approximately $22 million in asset sales during the quarter, which helped reduce debt and lower operating expenses [3][4] - Net income for Q3 2025 was $13.6 million, up from $10.7 million in Q3 2024, primarily due to gains from asset sales and reduced interest expenses [4][5] Financial Performance - Q3 2025 consolidated results showed: - Net Income: $13.6 million (up from $10.7 million in Q3 2024) - Adjusted EBITDA: $41.3 million (down from $43.9 million in Q3 2024) - Distributable Cash Flow: $27.8 million (up from $27.1 million in Q3 2024) - Distribution Coverage Ratio: 1.39x (compared to 1.36x in Q3 2024) [4][5][6] - Operating expenses decreased by 5% from $60.8 million in Q3 2024 to $57.5 million in Q3 2025 [5][6] Retail Segment Performance - Retail segment gross profit for Q3 2025 was $80.0 million, down from $83.6 million in Q3 2024, with motor fuel gross profit declining by $5.0 million or 11% [7][8] - Same-store motor fuel gallons distributed decreased by 4%, totaling 132.6 million gallons in Q3 2025 compared to 137.9 million gallons in Q3 2024 [7][8] - Merchandise gross profit increased by 5% year-over-year, with a gross profit percentage rising from 27.9% to 28.9% [9][10] Wholesale Segment Performance - Wholesale segment gross profit decreased by 10% to $24.8 million in Q3 2025, driven by a decline in motor fuel and rent gross profit [11][12] - Motor fuel gallons distributed in the wholesale segment fell to 177.7 million in Q3 2025 from 186.9 million in Q3 2024 [11][12] Asset Sales and Debt Management - CrossAmerica sold 29 properties for $21.9 million in proceeds during Q3 2025, resulting in a net gain of $7.4 million [12] - As of September 30, 2025, leverage was 3.56 times, down from 4.36 times at the end of 2024 [13] Distribution Information - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q3 2025, to be paid on November 13, 2025 [14]

Core Insights - Midstream energy stocks are involved in the processing, transportation, and storage of crude oil, natural gas, and natural gas liquids, operating in a sector less affected by spot pricing due to long-term contracts [1][5] - Master limited partnerships (MLPs) are highlighted as a strong investment option for energy exposure, offering substantial and dependable dividends, particularly from midstream companies [2][5] - A screening of midstream MLPs identified four top companies that provide high distributions to shareholders, emphasizing their appeal for income-focused investors [3] Industry Overview - Energy MLPs are attractive investments due to their structure and market position, typically offering annual distributions of 5% to 8% by distributing most cash flow to unitholders, thus providing a steady income stream [5] - MLPs benefit from stable, fee-based revenues linked to energy transportation, which mitigates risks associated with commodity price volatility [5] Company Spotlight - Cross America Partners L.P. has shown significant growth and is expected to continue this trend, offering a high dividend yield of 10.60% [6] - The company operates through two segments: wholesale distribution of motor fuel and retail sales at various sites, including convenience stores [7]

Core Viewpoint - CrossAmerica Partners LP is set to announce its third quarter 2025 earnings results on November 5, 2025, with a conference call scheduled for November 6, 2025, at 9:00 a.m. Eastern Time [2][3]. Company Overview - CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and convenience store operator, formed in 2012. The company distributes branded and unbranded petroleum for motor vehicles across approximately 1,600 locations and owns or leases around 1,000 sites [5]. - The company operates in 34 states and has established relationships with major oil brands, including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66. It ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and is among the top 10 for additional brands [5]. Conference Call Details - The conference call can be accessed via numbers 800-990-4333 or 646-769-9600, with a passcode of 284226. A live audio webcast will also be available on the investor section of the CrossAmerica website [3]. - An archive of the webcast will be accessible within 24 hours after the call and will remain available for sixty days [4].

Core Viewpoint - CrossAmerica Partners LP is set to announce its third quarter 2025 earnings results on November 5, 2025, with a conference call scheduled for November 6, 2025, at 9:00 a.m. Eastern Time [2][3]. Company Overview - CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and convenience store operator, formed in 2012. The company distributes branded and unbranded petroleum for motor vehicles across approximately 1,600 locations and owns or leases around 1,000 sites [5]. - The company operates in 34 states and has established relationships with major oil brands, including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66. It ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and is among the top 10 for additional brands [5].