Second Quarter 2025 Performance Overview - Retail Segment gross profit decreased by 1% to $76.127 million[6] - Retail Segment operating income decreased by 10% to $25.299 million[6] - Wholesale Segment gross profit decreased by 12% to $24.865 million[6] - Wholesale Segment operating income decreased by 15% to $17.744 million[6] - Net income increased by 103% to $25.168 million[8] - Adjusted EBITDA decreased by 13% to $37.083 million[8] - Distributable Cash Flow decreased by 14% to $22.396 million[8] Capital Management - Second quarter capital expenditures totaled $11.8 million, including $9.3 million in growth capex[13] - Credit facility balance was $727.0 million as of June 30, 2025[13] - Leverage ratio was 3.65x at June 30, 2025[13]

[CrossAmerica Partners LP Second Quarter 2025 Results](index=1&type=section&id=CrossAmerica%20Partners%20LP%20Reports%20Second%20Quarter%202025%20Results) The company reported higher net income from asset sales but saw a decline in core operational metrics like Adjusted EBITDA and Distributable Cash Flow [Overview of Second Quarter 2025 Results](index=1&type=section&id=Overview%20of%20Second%20Quarter%202025%20Results) Net income rose due to asset sales, while core operational performance declined, though debt reduction improved the company's leverage ratio Key Operating Metrics | Key Operating Metrics | Q2 2025 | Q2 2024 | | --- | --- | --- | | Net Income | $25.2M | $12.4M | | Adjusted EBITDA | $37.1M | $42.6M | | Distributable Cash Flow | $22.4M | $26.1M | | Distribution Coverage Ratio: Current Quarter | 1.12x | 1.30x | - The increase in Net Income was primarily driven by a **$28.4 million net gain** from asset sales and lease terminations, compared to a $5.6 million gain in the prior-year period[4](index=4&type=chunk)[6](index=6&type=chunk) - **Adjusted EBITDA declined by $5.5 million** year-over-year due to lower fuel and rent gross profit and higher operating expenses[6](index=6&type=chunk) - The company **reduced debt by more than $50 million** through asset sales, improving the leverage ratio from 4.36x to **3.65x**[3](index=3&type=chunk)[5](index=5&type=chunk) - The Board of Directors declared a quarterly distribution of **$0.5250 per limited partner unit**, consistent with the previous quarter[5](index=5&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The Retail segment's performance was stable while the Wholesale segment saw a significant decline in gross profit due to lower volumes and margins [Retail Segment](index=2&type=section&id=Retail%20Segment) Retail gross profit remained stable as merchandise growth nearly offset a slight decline in fuel profit and higher operating expenses Retail Segment Metrics | Retail Segment Metrics | Q2 2025 | Q2 2024 | | --- | --- | --- | | Retail segment gross profit | $76.1M | $76.6M | | Retail segment motor fuel gallons distributed | 141.7M | 143.0M | | Same store merchandise sales excluding cigarettes* | $70.8M | $68.3M | | Merchandise gross profit* | $30.5M | $29.8M | | Operating Expenses | $50.8M | $48.6M | - Motor fuel gross profit **declined by $0.5 million (1%)** due to a 1% decrease in both volume and margin per gallon[8](index=8&type=chunk) - Merchandise gross profit **increased by 2%**, supported by a **4% rise** in same-store merchandise sales (excluding cigarettes)[9](index=9&type=chunk) - Operating expenses **increased by 5%**, primarily due to a 5% increase in the average segment site count resulting from the conversion of lessee dealer sites[10](index=10&type=chunk) [Wholesale Segment](index=3&type=section&id=Wholesale%20Segment) Wholesale gross profit fell 12% due to a significant drop in fuel volume and lower margins, influenced by site conversions to the retail segment Wholesale Segment Metrics | Wholesale Segment Metrics | Q2 2025 | Q2 2024 | | --- | --- | --- | | Wholesale segment gross profit | $24.9M | $28.1M | | Wholesale motor fuel gallons distributed | 179.2M | 192.1M | | Average wholesale gross margin per gallon | $0.085 | $0.087 | - The **12% decrease in segment gross profit** was driven by declines in both motor fuel and rent gross profit, primarily due to the conversion of sites between segments[12](index=12&type=chunk) - A significant portion of the **7% decrease in wholesale volume** is attributed to the conversion of wholesale locations to retail locations, with the associated volume now reported in the retail segment[12](index=12&type=chunk) [Corporate Activities and Financial Position](index=3&type=section&id=Corporate%20Activities%20and%20Financial%20Position) The company executed significant property sales, using the proceeds to reduce debt and substantially improve its leverage ratio [Divestment Activity](index=3&type=section&id=Divestment%20Activity) The company sold 60 properties for $64.0 million, generating a significant gain while retaining fuel supply relationships for most locations - Sold **60 properties for $64.0 million** in proceeds during the three months ended June 30, 2025[13](index=13&type=chunk) - The sales resulted in a **net gain of $29.7 million**[13](index=13&type=chunk) - CrossAmerica **maintained a fuel supply relationship** with substantially all of the divested locations post-sale[13](index=13&type=chunk) [Liquidity, Capital Resources, and Distributions](index=3&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Distributions) Financial flexibility improved significantly through a $51 million debt reduction and a lower leverage ratio, while maintaining its quarterly distribution - The balance on the CAPL Credit Facility was **paid down from $778.0 million to $727.0 million** during the quarter[14](index=14&type=chunk) - Leverage, as defined in the credit facility, **improved to 3.65 times** as of June 30, 2025, compared to 4.36 times as of December 31, 2024[14](index=14&type=chunk) - A quarterly distribution of **$0.5250 per limited partner unit** for Q2 2025 was declared on July 23, 2025[15](index=15&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Financial statements reflect the impact of divestments, showing reduced assets and liabilities, and a significant increase in net income [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities decreased due to property sales and subsequent debt repayment, reflecting a smaller but deleveraged balance sheet Balance Sheet Highlights (in thousands) | Balance Sheet Items | June 30, 2025 | December 31, 2024 | | --- | --- | --- | | Total assets | $1,028,470 | $1,114,725 | | Property and equipment, net | $586,579 | $656,300 | | Total liabilities | $1,082,620 | $1,139,508 | | Debt and finance lease obligations, less current portion | $722,694 | $763,932 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Net income more than doubled year-over-year, driven by a substantial gain on dispositions which offset lower operating revenues Income Statement Highlights (in thousands) | Income Statement Items (Q2) | 2025 | 2024 | | --- | --- | --- | | Operating revenues | $961,925 | $1,133,355 | | Gross profit | $100,992 | $104,762 | | Gain on dispositions, net | $28,365 | $5,578 | | Operating income | $41,497 | $28,177 | | Net income | $25,168 | $12,424 | | Basic Net earnings per common unit | $0.64 | $0.31 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations remained stable, while investing activities provided significant cash from asset sales used for debt repayment and distributions Cash Flow Highlights (in thousands) | Cash Flow Items (Six Months Ended June 30) | 2025 | 2024 | | --- | --- | --- | | Net cash provided by operating activities | $37,697 | $34,723 | | Net cash provided by (used in) investing activities | $50,871 | $(26,114) | | Net cash used in financing activities | $(82,232) | $(8,109) | | Net increase in cash and cash equivalents | $6,336 | $500 | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) This section provides reconciliations for non-GAAP measures, a corporate overview, and cautionary notes on forward-looking statements [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliations show a decline in Adjusted EBITDA and Distributable Cash Flow, resulting in a lower but still healthy distribution coverage ratio - The company uses non-GAAP measures including **EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Distribution Coverage Ratio** to assess financial performance, service debt, and the ability to make distributions[33](index=33&type=chunk)[34](index=34&type=chunk) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow (in thousands) | Reconciliation (Q2) | 2025 | 2024 | | --- | --- | --- | | Net income (loss) | $25,168 | $12,424 | | EBITDA | $64,967 | $46,781 | | Adjusted EBITDA | $37,083 | $42,570 | | Distributable Cash Flow | $22,396 | $26,051 | | Distribution Coverage Ratio | 1.12x | 1.30x | [Company Overview and Forward-Looking Statements](index=11&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) CrossAmerica is a major US motor fuel distributor and convenience store operator, and this report contains forward-looking statements - CrossAmerica Partners is a leading wholesale distributor of motor fuels, distributing to approximately **1,600 locations** and owning or leasing over 1,000 sites in **34 states**[37](index=37&type=chunk) - The report includes a cautionary statement advising that **forward-looking statements are not guarantees** of future performance and actual results could differ materially[38](index=38&type=chunk)

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements show increased net income from asset dispositions, with total assets decreasing to $1.03 billion [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Consolidated statements show total assets decreased to $1.03 billion, net income reached $18.1 million for six months, driven by asset gains Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 9,717 | 3,381 | | Total current assets | 125,319 | 118,830 | | Property and equipment, net | 586,579 | 656,300 | | Total assets | 1,028,470 | 1,114,725 | | Total current liabilities | 162,131 | 162,846 | | Debt and finance lease obligations, less current portion | 722,694 | 763,932 | | Total liabilities | 1,082,620 | 1,139,508 | | Total equity | (84,488) | (53,776) | Consolidated Statement of Operations Highlights (Unaudited) | Income Statement Item | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating revenues | 961,925 | 1,133,355 | 1,824,400 | 2,074,903 | | Gross profit | 100,992 | 104,762 | 190,806 | 186,110 | | Operating income | 41,497 | 28,177 | 43,498 | 15,132 | | Net income (loss) | 25,168 | 12,424 | 18,053 | (5,116) | | Basic EPS | $0.64 | $0.31 | $0.44 | $(0.17) | Consolidated Statement of Cash Flows Highlights (Unaudited) | Cash Flow Item | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | 37,697 | 34,723 | | Net cash provided by (used in) investing activities | 50,871 | (26,114) | | Net cash used in financing activities | (82,232) | (8,109) | | Net increase in cash and cash equivalents | 6,336 | 500 | [Condensed Notes to Consolidated Financial Statements](index=9&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) Notes detail business activities, Applegreen Acquisition, real estate portfolio management, debt structure, and segment performance - The Partnership's business consists of wholesale motor fuel distribution, owning/leasing retail sites, retail sale of motor fuels, and operating convenience stores[29](index=29&type=chunk) - In early 2024, the company acquired assets from Applegreen by terminating leases at **59 locations** for **$16.9 million**, converting them from lessee dealer sites to company-operated sites, with total cash paid in the first half of 2024 being **$25.5 million**, including inventory[32](index=32&type=chunk)[33](index=33&type=chunk) - As part of its real estate optimization strategy, the company sold **67 sites** for **$72.6 million** in proceeds during the first six months of 2025, resulting in a net gain of **$35.2 million**[34](index=34&type=chunk) - As of June 30, 2025, the company had **$727.0 million** outstanding under its Credit Facility and **$193.6 million** in availability, with an effective interest rate of **6.1%**[40](index=40&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - The Partnership operates through two reportable segments: **Wholesale** (distribution to lessee and independent dealers) and **Retail** (sales at commission agent and company-operated sites)[84](index=84&type=chunk)[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 revenue decrease from lower fuel prices, operating income increase from asset sales, and ongoing portfolio optimization [Significant Factors Affecting Profitability](index=26&type=section&id=Significant%20Factors%20Affecting%20Profitability) Profitability is influenced by volatile fuel prices, seasonality, inflation, and increased interest expenses due to maturing swap contracts - Crude oil price volatility directly impacts revenues and cost of sales, and while the company attempts to pass price changes to retail customers, market conditions can delay this, affecting gross profit[106](index=106&type=chunk)[108](index=108&type=chunk) - Sales volumes are **seasonal**, historically peaking in the **second and third quarters** (summer months) and being lowest in the **first and fourth quarters** (winter months)[110](index=110&type=chunk) - **Three favorable interest rate swap contracts** matured on **April 1, 2024**, which is expected to **increase interest expense** going forward[112](index=112&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2025 operating revenues decreased 15% to $961.9 million, while operating income increased 47% to $41.5 million, driven by asset gains - **Q2 2025 vs. Q2 2024:** Operating revenues decreased by **$171 million (15%)** mainly due to a **13% decrease** in the average fuel selling price, while operating income increased by **$13 million (47%)** primarily due to a **$29.7 million** net gain on dispositions from the real estate rationalization effort[116](index=116&type=chunk)[122](index=122&type=chunk) - **6M 2025 vs. 6M 2024:** Operating revenues decreased by **$251 million (12%)** due to lower fuel prices, and operating income increased by **$28 million**, driven by **$35.2 million** in net gains on dispositions, compared to a net loss on dispositions and lease terminations of **$11.2 million** in the prior year period[126](index=126&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) Non-GAAP Financial Measures Reconciliation | Measure ($ thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | 25,168 | 12,424 | 18,053 | (5,116) | | EBITDA | 64,967 | 46,781 | 93,402 | 52,706 | | Adjusted EBITDA | 37,083 | 42,570 | 61,352 | 66,138 | | Distributable Cash Flow | 22,396 | 26,051 | 31,491 | 37,782 | | Distribution Coverage Ratio | 1.12x | 1.30x | 0.79x | 0.95x | [Segment Results](index=30&type=section&id=Segment%20Results) Q2 2025 Retail segment operating income decreased 10% to $25.3 million, while Wholesale segment operating income fell 15% to $17.7 million Retail Segment Performance | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total gross profit ($ thousands) | 76,127 | 76,644 | 139,287 | 131,031 | | Operating income ($ thousands) | 25,299 | 28,013 | 36,755 | 39,269 | | Total retail sites (end of period) | 597 | 589 | 597 | 589 | | Margin per gallon | $0.370 | $0.373 | $0.355 | $0.343 | Wholesale Segment Performance | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total gross profit ($ thousands) | 24,865 | 28,118 | 51,519 | 55,079 | | Operating income ($ thousands) | 17,744 | 20,924 | 37,228 | 38,988 | | Total distribution sites (end of period) | 1,004 | 1,075 | 1,004 | 1,075 | | Margin per gallon | $0.085 | $0.087 | $0.090 | $0.083 | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is driven by cash from operations, asset sales, and credit facility, with $37.7 million net cash from operations for six months - For the six months ended June 30, 2025, the company received **$73 million** in proceeds from asset sales and incurred **$22 million** in capital expenditures[166](index=166&type=chunk) - During the first six months of 2025, the company made net repayments of **$41 million** on its Credit Facility and paid **$40 million** in distributions to unitholders[167](index=167&type=chunk) - Total capital expenditures for the first six months of 2025 were **$22.0 million**, including **$5.3 million** for sustaining capital and **$16.7 million** for growth projects, primarily investments in company-operated sites[172](index=172&type=chunk) - As of August 1, 2025, the company had **$200.7 million** of availability under its Credit Facility[170](index=170&type=chunk) [Outlook](index=38&type=section&id=Outlook) The company plans continued property portfolio optimization through site conversions and divestitures to reduce debt, while evaluating opportunistic acquisitions - The company will continue to evaluate the '**highest and best use**' for its properties, which may lead to site conversions between wholesale and retail segments[176](index=176&type=chunk) - Anticipates continuing to **divest certain assets**, often lower-performing ones, while aiming to maintain long-term fuel supply contracts, with proceeds from these sales expected to be used to **pay down debt**, **reducing interest expense**[176](index=176&type=chunk) - The company will continue to **evaluate acquisitions on an opportunistic basis**, dependent on market conditions and financing availability[175](index=175&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No significant changes to the company's market risk profile have occurred since December 31, 2024 - There have been **no significant changes** to the company's market risk since December 31, 2024[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective as of June 30, 2025**[182](index=182&type=chunk) - There were **no material changes** in internal control over financial reporting during the three months ended June 30, 2025[183](index=183&type=chunk) [PART II - OTHER INFORMATION](index=39&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 10 of the financial statements in Part I - The company **incorporates by reference** the disclosures on legal proceedings from Note 10 of the financial statements[184](index=184&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K have occurred - **No material changes** in the risk factors disclosed in the Form 10-K have occurred during the period covered by this report[185](index=185&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - The exhibits filed with this report include **CEO and CFO certifications** (Rule 13a-14(a) and 18 U.S.C. §1350) and **Inline XBRL documents**[186](index=186&type=chunk)

Core Viewpoint - CrossAmerica Partners LP reported a significant improvement in net income for Q2 2025 compared to Q2 2024, primarily due to asset sales, although overall performance remains below prior-year levels [3][4][5]. Financial Performance - Net Income for Q2 2025 was $25.2 million, up from $12.4 million in Q2 2024, reflecting a $12.7 million increase [4][5]. - Adjusted EBITDA decreased to $37.1 million in Q2 2025 from $42.6 million in Q2 2024, a decline of $5.5 million [4][5]. - Distributable Cash Flow for Q2 2025 was $22.4 million, down from $26.1 million in Q2 2024 [4][5]. - The Distribution Coverage Ratio for Q2 2025 was 1.12x, compared to 1.30x in Q2 2024 [4][5]. Segment Performance Retail Segment - Retail segment gross profit for Q2 2025 was $76.1 million, slightly down from $76.6 million in Q2 2024 [5][7]. - Motor fuel gallons distributed in the retail segment decreased to 141.7 million in Q2 2025 from 143.0 million in Q2 2024, a 1% decline [7][8]. - Merchandise gross profit increased by 2% year-over-year, with same-store merchandise sales excluding cigarettes rising by 4% [9][10]. Wholesale Segment - Wholesale segment gross profit fell to $24.9 million in Q2 2025 from $28.1 million in Q2 2024, a 12% decrease [11][12]. - Wholesale motor fuel gallons distributed decreased to 179.2 million in Q2 2025 from 192.1 million in Q2 2024, a 7% decline [11][12]. Asset Management and Divestment - CrossAmerica sold 60 properties for $64.0 million during Q2 2025, resulting in a net gain of $29.7 million [13]. - The company reduced debt by over $50 million through asset sales, strengthening its balance sheet [3][4]. Liquidity and Capital Resources - As of June 30, 2025, CrossAmerica had $727.0 million outstanding under its credit facility, down from $778.0 million at the end of 2024 [14]. - Leverage was reported at 3.65 times as of June 30, 2025, compared to 4.36 times at the end of 2024 [14]. Distributions - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q2 2025, payable on August 14, 2025 [15].

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 over 1,000 sites [5] - CrossAmerica Partners has a geographic footprint covering 34 states and maintains relationships with major oil brands including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66 [5] - The company 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 second quarter 2025 results after the market closes on August 6, 2025 [2] - A conference call will be hosted on August 7, 2025, at 9:00 a.m. Eastern Time to discuss the earnings results [2] - The conference call can be accessed via phone at 800-990-4333 or 646-769-9600, with a passcode of 280060 [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 [3] - An archive of the webcast will be accessible within 24 hours after the call for a period of sixty days [4]

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 over 1,000 sites [5] - CrossAmerica Partners has a geographic footprint covering 34 states and maintains relationships with major oil brands including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66 [5] - The company 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 second quarter 2025 results after the market closes on August 6, 2025 [2] - A conference call will be hosted by management on August 7, 2025, at 9:00 a.m. Eastern Time [2] - The conference call can be accessed via phone at 800-990-4333 or 646-769-9600, with a passcode of 280060 [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]

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].

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 [24] - Adjusted EBITDA for Q1 2025 was $24.3 million, a 3% increase from $23.6 million in Q1 2024 [25] - Distributable cash flow decreased to $9.1 million in Q1 2025 from $11.7 million in Q1 2024, primarily due to higher cash interest expenses and sustaining capital expenditures [25][26] - Distribution coverage for the trailing twelve months was 1.04 times, down from 1.37 times in the previous year [26] Business Line Data and Key Metrics Changes - Retail segment gross profit increased by 16% to $63.2 million in Q1 2025 from $54.4 million in Q1 2024, driven by higher motor fuel and merchandise gross profit [8] - Inside sales on a same-site basis were down approximately 1.5% year over year, while inside sales excluding cigarettes declined by 1% [14] - Wholesale segment gross profit declined by 1% to $26.7 million, primarily due to a decrease in fuel volume and rental income [18] 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 [11][20] - The company experienced a decline in overall retail volume of 4%, which adjusted for leap year effects would be approximately 3% [10] Company Strategy and Development Direction - The company continues to focus on converting lessee dealer sites to company-operated retail sites to increase exposure to retail fuel margins [17] - Strategic efforts include optimizing class of trade operations and ongoing real estate rationalization to generate additional capital for investment [32] - The company is actively evaluating its portfolio for opportunities to divest non-core properties, having divested seven sites for $8.6 million in proceeds during the quarter [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging start to the year due to weather impacts, inflationary pressures, and economic uncertainty from tariffs [22][23] - Despite these challenges, management remains optimistic about the execution of their retail strategy and the potential for improved performance in the upcoming summer driving season [23][32] Other Important Information - The company increased its company-operated site count by 33 from the prior year and 11 from the end of the previous quarter [15] - Operating expenses for the retail segment increased by approximately 20% year over year, primarily due to a rise in average site count [27] - Capital expenditures totaled $10.1 million, with $7.4 million allocated to growth-related projects [30] Q&A Session Summary Question: Are there any questions from the audience? - There were no questions from the audience during the Q&A session [35]

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]

Financial Performance - Net loss was $7.115 million, a 59% improvement compared to a net loss of $17.540 million in the same period last year[9] - Adjusted EBITDA increased by 3% to $24.269 million from $23.568 million[9] - Distributable Cash Flow (DCF) decreased by 22% to $9.095 million from $11.731 million[9] - Distribution coverage ratio decreased by 22% to 0.46x from 0.59x[9] Segment Results - Retail segment gross profit increased by 16% to $63.159 million from $54.386 million[7] - Retail segment operating income increased by 2% to $11.455 million from $11.255 million[7] - Wholesale segment gross profit decreased by 1% to $26.655 million from $26.962 million[7] - Wholesale segment operating income increased by 8% to $19.485 million from $18.065 million[7] Capital and Debt - First quarter capital expenditures were $10.1 million, including $7.4 million in growth capex[13] - Credit facility balance was $778.0 million as of March 31, 2025[13] - Leverage ratio was 4.27x as of March 31, 2025[13]