Second Quarter 2021 Performance - Wholesale fuel volume increased by 27%, reaching 332 million gallons in 2Q21 compared to 260 million gallons in 2Q20 [4] - Wholesale fuel margin declined by 15%, from 108 cents in 2Q20 to 92 cents in 2Q21 [4] - Motor Fuel Gross Profit from the Wholesale Segment increased by 8%, amounting to $305 million in 2Q21 versus $282 million in 2Q20 [4] - Retail Segment's Gross Profit increased by $52 million or 32% year-over-year, reaching $211 million in 2Q21 compared to $159 million in 2Q20 [4] - Net Income decreased by 8%, from $5230 thousand in 2020 to $4789 thousand in 2021 [6] - Gross Profit increased by 13%, from $57648 thousand to $65094 thousand [6] - Adjusted EBITDA increased by 7%, from $27721 thousand to $29705 thousand [6] - Distributable Cash Flow decreased by 4%, from $26047 thousand to $25005 thousand [6] Capital and Credit Facility - Capital expenditures were $113 million during the second quarter of 2021 [8] - Leverage, as defined under the credit facility, was 442X as of June 30, 2021 [7] - A new $200 million senior secured credit facility was entered into on July 16, 2021, to fund the acquisition of 106 convenience store properties from 7-Eleven [9]

Financial Data and Key Metrics Changes - The second quarter of 2021 saw an adjusted EBITDA of $29.7 million, a 7% increase compared to the second quarter of 2020 [22] - Distributable cash flow for the second quarter of 2021 was $25 million, reflecting a 4% decrease year-over-year from $26 million in the second quarter of 2020 [22][23] - The distribution coverage ratio on a paid basis for the trailing 12 months ended June 30, 2021, was 1.22x, slightly improving from 1.21x for the previous period [23] Business Line Data and Key Metrics Changes - Wholesale fuel volume increased by 27% year-over-year, while wholesale fuel gross profit rose by 8% despite a 15% decrease in wholesale fuel margin per gallon [8][11] - Retail operations experienced a 35% increase in same-site comparable week volume year-over-year, although down approximately 4% compared to 2019 [14] - Inside sales for retail were up 11.5% year-over-year and 13.5% compared to 2019 [15] Market Data and Key Metrics Changes - The company reported a decline in wholesale fuel margin per gallon to $0.092, a decrease of $0.016 or 15% from the prior year, primarily due to dealer-tank-wagon margin declines [11] - WTI crude prices increased by 24% during the second quarter, impacting fuel margins negatively [12] Company Strategy and Development Direction - The company is focused on closing the acquisition of 106 convenience store sites from 7-Eleven for $263 million, with 32 sites already closed as of August 5, 2021 [18] - There is an ongoing evaluation of the asset portfolio to divest non-core properties, with 9 properties divested in the first half of 2021 [19] - The company aims to continue executing its strategic plan while managing its balance sheet effectively [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding solid results and positive traffic patterns, noting no significant impact from the delta variant of COVID-19 on operations [20] - The company remains vigilant and prepared to take necessary actions in response to any changes in the operating environment [20] Other Important Information - The company appointed Maura Topper as the new Chief Financial Officer, who has extensive financing experience [6][7] - Operating and G&A expenses increased due to a rise in the average company-operated site count by 17% year-over-year [17] Q&A Session Summary Question: Are there challenges on the labor front, such as labor shortages or wage inflation? - Management acknowledged labor tightness at store levels and mentioned initiatives like hiring incentives and retention bonuses to address this issue [30] Question: Is the labor situation driving an increase in G&A expenses? - Management clarified that while G&A expenses have not increased, there has been an uptick in store-level operating expenses due to higher labor costs [31] Question: What is the update on the divestiture front and the M&A market? - Management indicated that while divestitures have been slower than desired, there is a solid pipeline of transactions expected to proceed [32]

Financial Performance - Operating revenues for Q2 2021 reached $859.3 million, a significant increase from $398.4 million in Q2 2020, representing a growth of 115.5%[25] - Net income for Q2 2021 was $4.8 million, slightly down from $5.2 million in Q2 2020, a decrease of 8.5%[25] - Basic and diluted earnings per common unit for Q2 2021 were $0.13, compared to $0.14 in Q2 2020, reflecting a decline of 7.1%[25] - Revenues from fuel sales to external customers for the six months ended June 30, 2021, reached $1.39 billion, compared to $707.4 million for the same period in 2020, indicating a growth of 96.5%[128] - Total revenues for the three months ended June 30, 2021, were $859.3 million, a significant increase from $398.4 million in the same period of 2020, representing a growth of 115.5%[128] - The company reported a total of $1.52 billion in revenues for the six months ended June 30, 2021, compared to $790.1 million for the same period in 2020, reflecting a growth of 92.5%[128] Profitability and Expenses - Gross profit for the six months ended June 30, 2021, was $120.0 million, compared to $93.4 million for the same period in 2020, reflecting a year-over-year increase of 28.4%[25] - Operating expenses for the six months ended June 30, 2021, totaled $112.6 million, compared to $79.2 million for the same period in 2020, an increase of 42.1%[25] - Operating income for the three months ended June 30, 2021, was $8.2 million, compared to a loss of $6.3 million in the same period of 2020[128] - The company recorded an income tax benefit of $0.3 million for the three months ended June 30, 2021, compared to $2.9 million for the same period in 2020[119] Assets and Liabilities - Total current assets increased to $81.6 million as of June 30, 2021, up from $74.8 million at the end of 2020, marking a growth of 9.8%[21] - Total liabilities rose to $932.4 million as of June 30, 2021, compared to $904.7 million at the end of 2020, indicating an increase of 3.1%[21] - The company reported total equity of $72.1 million as of June 30, 2021, down from $109.7 million at the end of 2020, a decrease of 34.2%[21] - Cash and cash equivalents increased to $621,000 as of June 30, 2021, from $513,000 at the end of 2020, a growth of 21.1%[21] - Total inventories increased to $24.414 million as of June 30, 2021, compared to $23.253 million at the end of 2020[70] Cash Flow and Investments - Net cash provided by operating activities was $41,014,000 for the six months ended June 30, 2021, down from $61,643,000 in the prior year, reflecting a decline of approximately 33.5%[28] - Net cash used in investing activities was $(20,392,000) for the six months ended June 30, 2021, compared to $(6,580,000) in the prior year, indicating a significant increase in cash outflow[28] - Net cash used in financing activities was $(20,514,000) for the six months ended June 30, 2021, compared to $(54,658,000) in the same period of 2020, showing a reduction in cash outflow by approximately 62.5%[28] - Cash paid for interest in the six months ended June 30, 2021, was $6.7 million, down from $9.5 million in the same period of 2020[137] Acquisitions and Property - The company completed the acquisition of 106 company-operated sites from 7-Eleven for an aggregate purchase price of $263.0 million[52] - The company anticipates completing the acquisition of additional properties early in the fourth quarter of 2021[57] - The company classified 17 sites as held for sale with a total value of $5.553 million as of June 30, 2021[69] - The company sold nine properties for $3.9 million in proceeds during the six months ended June 30, 2021, resulting in a net gain of $1.1 million[69] Debt and Financing - Long-term debt and finance lease obligations totaled $552.2 million as of June 30, 2021, an increase from $533.2 million as of December 31, 2020[75] - The weighted-average interest rate on borrowings under the CAPL Credit Facility was 2.1% as of June 30, 2021[77] - As of August 5, 2021, the company had $64.4 million outstanding under its Term Loan Facility[65] Environmental and Indemnification Liabilities - Environmental liabilities recorded on the balance sheet totaled $5.7 million and $3.9 million at June 30, 2021, and December 31, 2020, respectively[102] - Indemnification assets related to environmental liabilities amounted to $4.2 million and $3.1 million at June 30, 2021, and December 31, 2020, respectively[102] Other Key Metrics - The company reported a gain of $597,000 on dispositions and lease terminations in Q2 2021, compared to a loss of $4.6 million in Q2 2020[25] - The company experienced a decrease in equity-based employee and director compensation expense, which rose to $754,000 from $48,000 in the prior year[28] - The company has exclusive motor fuel distribution contracts with lessee dealers and independent dealers, contributing to its wholesale segment revenue[125] - The company maintains insurance coverage deemed adequate for operations and properties, with deductibles considered reasonable[102]

Financial Data and Key Metrics Changes - For Q1 2021, adjusted EBITDA was $20.7 million, a decline of 18% compared to Q1 2020 [29] - Distributable cash flow for Q1 2021 was $15.8 million, down 23% year-over-year from $20.4 million in Q1 2020 [29] - Distribution coverage on a paid basis for the trailing 12 months ended March 31, 2021, was 1.23 times, an improvement from 1.19 times for the same period in 2020 [30] Business Line Data and Key Metrics Changes - Wholesale fuel volume increased by 32% year-over-year, primarily due to acquisitions and exchanges completed in 2020 [9] - Same-store inside sales were up approximately 13% year-over-year for Q1 2021, and up 15% year-to-date through late April [17][18] - Retail same-store volume was up approximately 3% year-over-year for Q1 2021, and up 16% year-to-date through late April [19] Market Data and Key Metrics Changes - Same-site volume for the last week in March 2021 was up approximately 80% year-over-year, indicating a recovery from COVID-19 impacts [11] - Year-to-date same-site volume performance through late April was up approximately 5% year-over-year [12] - WTI crude prices increased by 28% during Q1 2021, negatively impacting fuel margins per gallon [15] Company Strategy and Development Direction - The company announced an agreement to acquire 106 sites from 7-Eleven for $263 million, which will enhance its asset base in the Mid-Atlantic and Northeast regions [22] - The acquisition will involve rebranding the sites to Joe's Kwik Mart, aligning with the company's strategy to enhance its retail operations [25][26] - The company anticipates the acquisition to be immediately accretive to distributable cash flow and provide long-term value to unit holders [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of mobility and economic activity, which could lead to improved business conditions [27] - The company is well-positioned to capitalize on positive developments despite short-term challenges related to rising crude prices [27] - Management noted that the operating environment is improving, with expectations of returning to pre-pandemic levels [27] Other Important Information - The company experienced an increase in operating and G&A expenses due to the growth in company-operated and commission sites [21] - The leverage ratio at the end of Q1 2021 was 4.54 times, higher than the year-end ratio of 4.06 times, but the company remains in compliance with financial covenants [32] - The company plans to finance the acquisition through undrawn capacity under its revolving credit facility or additional debt financing [24] Q&A Session Summary Question: Can you provide more detail around when the acquisition closes? - Management indicated that the acquisition closing is dependent on the closing of the Marathon 7-Eleven acquisition, expected to occur in a matter of weeks [36][37] Question: How does the rebranding process work for the stores? - The rebranding will occur in groups, with clusters of sites being converted, requiring significant back-office equipment changes [38][39] Question: Does the colonial pipeline shutdown impact operations? - Management noted minimal impact so far, with expectations for normal operations to resume soon, although there could be disruptions if the situation persists [40][42] Question: Is there a floor to where wholesale margins could go with strengthening WTI prices? - Management explained that approximately 70% of wholesale contracts are fixed pricing, meaning variability is mainly from terms discounts, while the remaining 30% is variable price margin [43][44]

Financial Performance - Net Income decreased by 106%, from $72.061 million in 1Q20 to a loss of $3.967 million in 1Q21[8] - Gross Profit increased by 54%, from $35.729 million in 1Q20 to $54.868 million in 1Q21[8] - Adjusted EBITDA decreased by 18%, from $25.284 million in 1Q20 to $20.665 million in 1Q21[8] - Distributable Cash Flow decreased by 23%, from $20.439 million in 1Q20 to $15.753 million in 1Q21[8] - Distribution Coverage (Paid Basis – current quarter) decreased by 27%, from 1.08x in 1Q20 to 0.79x in 1Q21[8] Wholesale Fuel Operations - Wholesale fuel volume increased 32%, from 221 million gallons in 1Q20 to 292 million gallons in 1Q21[4] - Wholesale fuel margin declined 19%, from 9.0 cents in 1Q20 to 7.3 cents in 1Q21[4] - Motor Fuel Gross Profit from the Wholesale Segment increased 7%, from $19.9 million in 1Q20 to $21.3 million in 1Q21[4] Retail Segment - Retail Segment's Gross Profit increased by $17.7 million year-over-year, from $2.0 million in 1Q20 to $19.7 million in 1Q21[4] Acquisition and Expenses - Operating Expenses increased by $19 million primarily due to the increase in company operated and commission sites as a result of acquisitions and exchanges in 2020[4] - Company operated and commission sites increased 76% (154 sites) from 1Q20 to 1Q21[4] - G&A expenses increased $3.2 million in 1Q21 when compared to 1Q20 primarily driven by 2020 acquisitions, an increase in management fees related to increased headcount and an increase of $0.9 million in acquisition costs[4] 7-Eleven Acquisition - A definitive agreement to acquire 106 sites from 7-Eleven for a purchase price of $263 million[5]

Financial Performance - Operating revenues for the three months ended March 31, 2021, were $657,284, compared to $391,695 for the same period in 2020, representing an increase of approximately 68%[21] - Gross profit for the three months ended March 31, 2021, was $54,868, up from $35,729 in the prior year, reflecting a growth of about 53%[21] - The net loss for the three months ended March 31, 2021, was $(3,967), a significant decrease from a net income of $72,061 for the same period in 2020[24] - Operating expenses for the three months ended March 31, 2021, totaled $55,084, compared to $32,430 in the same period of 2020, reflecting an increase of about 70%[21] - The company reported a basic and diluted loss per common unit of $(0.10) for the three months ended March 31, 2021, compared to earnings of $2.00 per unit in the prior year[21] - For the three months ended March 31, 2021, the company reported a net loss of $3,967,000, compared to a net income of $71,928,000 for the same period in 2020[26] - The company experienced a comprehensive loss of $1,719,000 for the three months ended March 31, 2021, compared to a comprehensive income of $71,264,000 for the same period in 2020[26] - Operating income for the consolidated entity was a loss of $0.9 million for Q1 2021, compared to an income of $77.4 million for Q1 2020[101] Assets and Liabilities - Total current assets increased to $80,864 as of March 31, 2021, from $74,821 at December 31, 2020, marking an increase of approximately 8%[17] - Total liabilities rose to $922,531 as of March 31, 2021, compared to $904,674 at December 31, 2020, indicating an increase of about 2%[17] - The total equity as of March 31, 2021, was $87,406,000, a decrease from $109,668,000 at the end of 2020[26] - Total debt and finance lease obligations increased to $545,515,000 as of March 31, 2021, up from $533,187,000 as of December 31, 2020[52] - The revolving credit facility had a balance of $526,141,000 as of March 31, 2021, compared to $513,180,000 as of December 31, 2020[52] - Environmental liabilities recorded on the balance sheet totaled $4,000,000 as of March 31, 2021, slightly up from $3,900,000 as of December 31, 2020[79] Cash Flow - Cash and cash equivalents at the end of the period were $954, up from $513 at the beginning of the period, representing an increase of approximately 86%[24] - Net cash provided by operating activities was $17,668 for the three months ended March 31, 2021, compared to $17,794 in the same period of 2020, showing a slight decrease[24] - Net cash provided by operating activities showed a change of $2,887 thousand for the three months ended March 31, 2021, compared to a negative $810 thousand for the same period in 2020[106] - Cash paid for interest was $2,996 thousand in Q1 2021, down from $5,330 thousand in Q1 2020[107] Inventory and Impairment - Retail site merchandise inventory was valued at $11,437,000 as of March 31, 2021, a decrease from $11,969,000 at the end of 2020[47] - The company recorded impairment charges of $2.3 million during the three months ended March 31, 2021, primarily related to sites classified within assets held for sale[48] Revenue Sources - Revenues from fuel sales to external customers were $398.5 million in the wholesale segment and $197.5 million in the retail segment for Q1 2021, compared to $302.1 million and $65.8 million, respectively, in Q1 2020[101] - Revenues from TopStar, an affiliated entity, were $11,200,000 for the three months ended March 31, 2021, compared to $100,000 for the same period in 2020[63] - Approximately 12% of the company's rental income for the three months ended March 31, 2021, was derived from one multi-site operator[36] Acquisitions and Investments - The company entered into an Asset Purchase Agreement with 7-Eleven to acquire assets related to 106 company-operated sites for an aggregate purchase price of $263.0 million[109] - The acquisition includes real property, leasehold rights, and inventory, with the majority of sites currently operating under the Speedway brand[110] - The transaction is expected to be financed through undrawn capacity under the existing revolving credit facility, cash on hand, and/or additional debt financing[110] - The initial closing of the acquisition is subject to certain conditions, including FTC approval and customary closing conditions[113] - The company expanded its retail operations by acquiring 169 sites on April 14, 2020, which included 154 company-operated sites[41] Other Financial Metrics - The weighted-average common units outstanding increased to 37,869,259 for the three months ended March 31, 2021, from 35,994,972 in the same period of 2020[21] - The partnership declared cash distributions of $0.5250 per common unit for both Q1 2021 and Q1 2020, with total distributions paid amounting to $19.9 million in Q1 2021[96] - The balance of unamortized costs incurred to obtain certain contracts with customers was $8.7 million as of March 31, 2021, compared to $8.3 million at December 31, 2020[103] - The partnership recorded an income tax benefit of $0.3 million for Q1 2021 due to losses incurred by corporate subsidiaries[91] - Phantom units granted in February 2021 included 1,509 units to each of three non-employee directors, vesting in July 2021[88] Market and Risk Factors - No significant changes to market risk have occurred since December 31, 2020[209] - The partnership operates in two segments: Wholesale and Retail, with total revenues from the Wholesale segment at $561.8 million and the Retail segment at $239.9 million for Q1 2021[101] - The partnership is subject to a statutory requirement that non-qualifying income cannot exceed 10% of total gross income for the calendar year, which was adhered to in the reporting period[89]

Financial Data and Key Metrics Changes - For Q4 2020, the wholesale fuel volume increased by 22% compared to Q4 2019, primarily due to acquisitions and exchanges, despite the impact of COVID-19 [9] - The wholesale fuel margin per gallon increased by 15% year-over-year, driving a 39% increase in wholesale fuel gross profit for the quarter [9] - Adjusted EBITDA for Q4 2020 was $24.4 million, a decline of 4% compared to the same period in 2019, while distributable cash flow increased by 40% to $26.2 million [43][44] - For the full year 2020, adjusted EBITDA was $107.4 million, representing a 4% increase, and distributable cash flow increased by 28% to $102.5 million [25][46] Business Line Data and Key Metrics Changes - Rental gross profit for Q4 2020 was $14.2 million, down 14% year-over-year due to lease terminations related to acquisitions [15] - Inside store sales for retail sites were up in the mid- to high single digits year-over-year, despite declines during the COVID-19 mitigation efforts [18] - The average company-operated site count increased to 149 from 0 in Q4 2019, contributing to increased operating expenses [21][46] Market Data and Key Metrics Changes - Same-store volume performance showed a decline in the low double digits year-over-year for Q4 2020, with a sharp drop during Thanksgiving week [10] - The percentage of wholesale fuel gallons from dealer tank wagon (DTW) increased to approximately 29% from 18% in Q4 2019 [13] Company Strategy and Development Direction - The company aims to optimize operations of acquired assets to provide stable cash flows and maximize investment returns [36] - The focus remains on maintaining relationships with major oil companies and exploring acquisition opportunities [37][39] - The company has a disciplined approach to acquisitions, seeking strong sites with long-term prospects at reasonable prices [40] Management's Comments on Operating Environment and Future Outlook - Management noted that the tax benefits realized in 2020 were primarily due to accelerated depreciation from acquisitions, which may not continue in the future [53][54] - The M&A environment remains active, but there is friction between buyers and sellers regarding expectations due to COVID-19 impacts [60] Other Important Information - The company completed several strategic transactions during 2020, including an equity restructuring agreement and multiple asset exchanges [30][31][34] - The company ended Q4 2020 with a leverage ratio of 4.06x, an improvement from 4.7x at the end of 2019 [47] Q&A Session Summary Question: Tax benefits realized in 2020 - Management explained that the main tax benefit was from accelerated depreciation due to acquisitions, and future benefits may decrease if acquisitions slow down [53][54] Question: CapEx spend for the year - Management discussed that CapEx was driven by dispenser upgrades for EMV compliance and brand conversions, with reimbursements expected over time [56][57] Question: Environment for M&A - Management indicated that the M&A environment is active, but there are differing expectations between buyers and sellers regarding the impact of COVID-19 [60]

Financial Performance - Net income for the full year 2020 increased by 494% to $107456 thousand compared to $18076 thousand in 2019[4,14] - Distributable Cash Flow for the full year 2020 increased by 28% to $102468 thousand compared to $80123 thousand in 2019[4,14] - Adjusted EBITDA for the full year 2020 increased by 4% to $107416 thousand compared to $103703 thousand in 2019[4,14] - Wholesale fuel gross profit increased by 43% to $102785 thousand for the full year 2020 compared to $71918 thousand in 2019[4] - Distribution coverage improved to 1.31x for the full year 2020 from 1.11x in 2019[15] Operational Highlights - Total volume of gallons distributed increased by 11% to 1116788 thousand gallons for the full year 2020 compared to 1003994 thousand gallons in 2019[4] - Wholesale fuel margin per gallon increased by 28% year-over-year from $0072 to $0092 for the full year 2020[4,6] - Rental gross profit decreased by 7% to $58019 thousand for the full year 2020 compared to $62646 thousand in 2019[4] - Operating expenses increased by 73% to $90928 thousand for the full year 2020 compared to $52554 thousand in 2019[4] Strategic Initiatives - Completed the NWF/175% CST Fuel Supply Exchange with Couche-Tard/Circle K[8] - Completed the acquisition of retail/wholesale assets, including retail operations at 169 sites and wholesale fuel supply to 110 sites[10]

Revenue Segments - The Wholesale segment generated revenues of $1.6 billion in 2020, distributing motor fuel to approximately 1,700 sites across 34 states[23]. - The Retail segment generated revenues of $680 million in 2020, including sales from company-operated retail sites and convenience merchandise[41]. - Wholesale motor fuel revenues accounted for 89% of total revenues, with gross profit from motor fuel at 54% of total gross profit for 2020[83]. Operations and Assets - As of December 31, 2020, the company operated 150 retail sites, having acquired retail and wholesale assets on April 14, 2020[20][41]. - The company owns or leases approximately 1,100 sites, with 58% of properties leased to dealers or utilized in retail business[20][37]. - The company has completed acquisitions totaling approximately 900 fee and leasehold sites for a total consideration of approximately $1.2 billion since its IPO[48]. Supply Chain and Distribution - Approximately 90% of the motor fuel distributed in 2020 was branded, with the company being one of the ten largest independent distributors by motor fuel volume in the U.S.[25]. - For 2020, the Wholesale segment purchased approximately 29% of its motor fuel from ExxonMobil, 22% from BP, 13% from Motiva, and 10% from Marathon[51]. - The company relies on four principal suppliers for the majority of its motor fuel, which could impact its operations if any supplier faces issues[67]. Financial Performance and Cash Flow - The company aims to generate sufficient cash flows from operations to make quarterly cash distributions to unitholders, with the potential to increase these distributions over time[47]. - Cash flow, rather than profitability, primarily determines the cash available for distribution, which may lead to distributions during periods of net losses[75]. - Cash available for distribution is influenced by capital expenditures, debt service requirements, and working capital needs[73]. Competition and Market Conditions - The company faces intense competition in both the wholesale motor fuel distribution and retail convenience store industries[65]. - Intense competition in the wholesale and retail motor fuel markets results in narrow margins, impacting overall profitability[87]. - Economic conditions, including inflation and unemployment, could adversely affect consumer spending and demand for motor fuel and convenience items[92]. Risks and Challenges - The company is closely monitoring the impact of the COVID-19 Pandemic on its business operations[63]. - The company faces risks related to soil and groundwater contamination, which may lead to substantial remediation costs[114]. - The company is exposed to significant risks related to the storage and transport of motor fuel, which could lead to environmental pollution and substantial liabilities[132]. Debt and Financing - The company had total debt of $513.2 million as of December 31, 2020, with $188.1 million available under its revolving credit facility[143]. - A significant increase in interest rates could adversely affect the company's ability to service its debt and impact cash flow[146]. - The company expects to rely on external financing sources for acquisitions and expansion capital expenditures[169]. Governance and Management - The General Partner, controlled by the Topper Group, has conflicts of interest and limited fiduciary duties, potentially favoring its own interests over those of unitholders[160]. - The absence of a majority of independent directors on the Board may limit corporate governance protections for unitholders[192]. - The company is dependent on its ability to attract and retain a strong management team, which is critical for its operations[124]. Taxation and Compliance - The company is subject to corporate-level taxes at a rate of 21% for its subsidiaries treated as corporations for tax purposes[198]. - Changes in tax treatment could significantly reduce cash available for distribution to unitholders[194]. - Unitholders are required to pay taxes on their share of income even without cash distributions, which may differ from estimates due to various factors[202].

Third Quarter 2020 Performance - Total volume of gallons distributed increased by 26% to 327367 thousand gallons[4] - Wholesale fuel gross profit increased by 47% to $30686 thousand[4] driven by both an increase in volume and strong fuel margin per gallon[5] - Net income increased significantly by 196% to $21205 thousand[4,9] - Distributable Cash Flow increased by 16% to $29742 thousand[4,9] - Adjusted EBITDA increased by 3% to $29964 thousand[4,9] Asset Exchange and Real Estate Rationalization - Completed the final asset exchange with Couche-Tard/Circle K on September 15, 2020[7] - CrossAmerica received 23 properties with a fair value of approximately $20400 thousand and a cash payment of $6700 thousand[7] - Divested seven properties during the third quarter for a total of $3800 thousand[7] Financial Strength - Distribution coverage (Paid Basis – current quarter) increased by 5% to 150x[9] - Distribution coverage (Paid Basis – trailing twelve months) increased by 9% to 124x[9] - Maintained a distribution rate of $05250 per unit ($210 per unit annualized) attributable to the third quarter of 2020[10]