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]

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]

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes the importance of community and education in investing, suggesting that individuals should not invest alone [2] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to support investors [2] Group 2 - The article mentions that the service has a focus on conservative investment options, including preferred and baby bond portfolios [2] - It highlights the active engagement of the community, providing a platform for discussions and access to service leaders [2] - The service philosophy is centered around generating strong returns while reducing the stress associated with retirement investing [1][2]