Fuel Distribution Volume - Total motor fuel distribution volume for 2023 was 1,350 million gallons, a slight increase from 1,340 million gallons in 2022[10] - The wholesale segment includes distribution to independent dealers and lessee dealers, with 518 million gallons distributed to independent dealers and 325 million gallons to lessee dealers in 2023[10] - The company distributed 82.3 million gallons in 2023, down from 84.1 million gallons in 2022, with a total of 866 sites at the end of 2023[34] Financial Performance - The total revenues for 2023 were $2,290 million, a decrease from $2,690 million in 2022, while operating income was $91 million compared to $94 million in the previous year[36] - The effective interest rate on the CAPL Credit Facility was 4.9% as of December 31, 2023, with $756.0 million outstanding, indicating a potential annual interest expense impact of approximately $1.6 million for a one percentage point change in SOFR[365] Supply Chain and Inventory Management - Approximately 80% of motor fuel purchased in 2023 came from four major suppliers, highlighting reliance on a concentrated supplier base[22] - The weighted-average remaining term of supply agreements as of December 31, 2023, was approximately 4.9 years, providing a stable supply chain[22] - The company maintains approximately 5-days' worth of motor fuel sales in inventory at each site, ensuring operational efficiency[19] Operational Strategy - The company aims to enhance cash flows from its wholesale segment by expanding market share and growing rental income over time[21] - The company focuses on optimizing operations to maximize investment returns across various dealer formats[21] - The average remaining lease agreement term as of December 31, 2023, was 2.6 years, indicating stability in rental income sources[16] Management and Governance - The company relies on the Topper Group for key management services, which may present conflicts of interest[29] - Management fees and cost reimbursements to the General Partner and the Topper Group will reduce cash available for distribution to unitholders[41] - The company may issue unlimited additional units without unitholder approval, which could dilute existing unitholder ownership interests[41] Cash Distribution and Tax Implications - The company has the discretion to modify or revoke its cash distribution policy at any time, and the Partnership Agreement does not mandate any distributions[41] - Tax treatment for unitholders may be affected by legislative changes, and unitholders are required to pay taxes on their share of income even without cash distributions[41] Market Dynamics - The company operates in a seasonal business, with sales volumes typically highest in the second and third quarters and lowest in the first and fourth quarters[44] - The market price of common units could be adversely affected by substantial sales from large holders, including the Topper Group[29]

CrossAmerica Partners (CAPL) is set to report fourth-quarter 2023 earnings on Feb 26, after the closing bell.In the last reported quarter, the partnership’s earnings of 31 cents per unit beat the Zacks Consensus Estimate of 17 cents. CrossAmerica’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average surprise of 58.8%. This is depicted in the graph below.Estimate TrendThe Zacks Consensus Estimate for fourth-quarter earnings per uni ...

Allentown, PA, Jan. 22, 2024 (GLOBE NEWSWIRE) -- CrossAmerica Partners LP Maintains Quarterly Distribution Quarterly distribution of $0.5250 per unit attributable to the fourth quarter of 2023 ALLENTOWN, PA (January 22, 2024) – CrossAmerica Partners LP (NYSE:CAPL) announced today that the Board of Directors of its general partner has approved a quarterly distribution of $0.5250 per unit attributable to the fourth quarter of 2023 (annualized $2.10 per unit). The distribution attributable to the fourth quart ...

Allentown, PA, Jan. 19, 2024 (GLOBE NEWSWIRE) -- CrossAmerica Partners to Announce Fourth Quarter and Full Year 2023 Earnings Results on February 26 ALLENTOWN, PA, January 19, 2024 – CrossAmerica Partners LP (NYSE: CAPL) today announced that it will release its fourth quarter and full year 2023 results after the market closes on Monday, February 26, 2024. In conjunction with the news release, management will host a conference call on Tuesday, February 27 at 9:00 a.m. Eastern Time. The conference call numbe ...

Allentown, PA, Jan. 19, 2024 (GLOBE NEWSWIRE) -- CrossAmerica Partners to Announce Fourth Quarter and Full Year 2023 Earnings Results on February 26 ALLENTOWN, PA, January 19, 2024 – CrossAmerica Partners LP (NYSE:CAPL) today announced that it will release its fourth quarter and full year 2023 results after the market closes on Monday, February 26, 2024. In conjunction with the news release, management will host a conference call on Tuesday, February 27 at 9:00 a.m. Eastern Time. The conference call number ...

Financial Data and Key Metrics Changes - The company reported a net income of $12.3 million for Q3 2023, down from $27.6 million in Q3 2022, primarily due to elevated fuel margins in the prior year [29] - Adjusted EBITDA decreased to $44.2 million in Q3 2023 from $62.6 million in Q3 2022 [30] - Distributable cash flow increased to $31.4 million in Q3 2023 compared to $15.9 million in Q3 2022, although the decrease in net income was attributed to strong results in the prior year and increased cash interest expense [34] - Distribution coverage for the current quarter was 1.57 times, down from 2.55 times in Q3 2022 [35] Business Line Data and Key Metrics Changes - Retail segment gross profit was $67.6 million, with motor fuel gross profit declining 34% but merchandise gross profit increasing 23% year-over-year [26] - Inside sales on a same-site basis increased approximately 4% year-over-year, with inside sales excluding cigarettes up approximately 9% [4][6] - Wholesale fuel gross profit declined 4% to $18.8 million, driven by decreased fuel margins, while wholesale segment gross profit also decreased by 4% to $32.9 million [18][19] Market Data and Key Metrics Changes - Wholesale volume increased by 2% year-over-year to 217.3 million gallons, attributed to the acquisition of Community Service Station assets [22] - Same-store volume in the Wholesale segment was down approximately 1.2% year-over-year, with a decline continuing post-quarter end [24] - Retail same-store volume increased by 2% year-over-year, but there was a decline in the mid-single digits in the period since the quarter-end [26][27] Company Strategy and Development Direction - The company plans to continue converting additional sites from other classes of trade to company-operated retail sites, aiming to enhance profitability and long-term value [8] - The focus remains on identifying potential divestiture locations to free up capital for reducing leverage or investing in growth opportunities [31] - The company is committed to maintaining a healthy balance sheet and leverage profile to allow for opportunistic investments [40] Management's Comments on Operating Environment and Future Outlook - Management noted that the business continues to perform well across various operating environments, with strong underlying fundamentals and a healthy balance sheet [33] - The company has experienced year-over-year cost pressures in maintenance and supplies, but these have been offset by cost management efforts [37][49] - Management expressed optimism about continuing strong performance into Q4 2023 and 2024 [40] Other Important Information - The company ended the quarter with a total credit facility balance of $762.5 million, slightly up from the previous quarter [38] - The effective interest rate on the capital credit facility was 4.9%, benefiting from interest rate swaps [52] - Capital expenditures totaled $10.4 million, with $8.5 million allocated for growth-related projects [45] Q&A Session Summary Question: Were there any questions from participants? - There were no questions during the Q&A session, and participants were encouraged to reach out later if they had inquiries [41]

• Credit Facility balance at 9/30/23: $762.5 million • Leverage ratio at 4.35x at 9/30/23 • Effective interest rate of 4.9% at 9/30/23 with benefit of interest rate swaps | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|--------------------|-------|-------|-------| | | | | | | | | | | | | | | | | Appendix | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter 2023 | | | | | | | | | | | | | | | | | | | ...

Financial Performance - Operating revenues for Q3 2023 were $1,210,023, a decrease of 5.0% from $1,274,407 in Q3 2022[78] - Gross profit for Q3 2023 was $100,440, down 12.4% from $114,730 in Q3 2022[78] - Net income for Q3 2023 was $12,292, a decline of 55.5% compared to $27,593 in Q3 2022[78] - Earnings per common unit for Q3 2023 were $0.31, down from $0.71 in Q3 2022[78] - Operating expenses for Q3 2023 were $76,582, an increase of 2.4% from $74,773 in Q3 2022[78] - Operating income for the three months ended September 30, 2023, was $24,145, compared to $39,639 for the same period in 2022, reflecting a decrease of 39.2%[175] - Net income for the nine months ended September 30, 2023, was $12,292 million, compared to $27,593 million for the same period in 2022, reflecting a decline of approximately 55.5%[81] Assets and Liabilities - Total current assets increased to $123,261 as of September 30, 2023, from $118,406 at December 31, 2022[76] - Total liabilities decreased to $1,167,914 as of September 30, 2023, from $1,175,465 at December 31, 2022[76] - Cash and cash equivalents decreased to $5,790 as of September 30, 2023, from $16,054 at December 31, 2022[76] - As of September 30, 2023, total equity was $22,212 million, a decrease from $28,344 million on June 30, 2023[81] - Total assets held for sale increased to $1,135 million as of September 30, 2023, from $983 million on December 31, 2022[87] - Property and equipment, net, decreased to $706,409 million as of September 30, 2023, from $728,379 million on December 31, 2022[90] - Total intangible assets were reported at $235,210 million as of September 30, 2023, compared to $235,790 million on December 31, 2022[91] Inventory and Receivables - Inventory increased to $53,609 as of September 30, 2023, compared to $47,307 at December 31, 2022[76] - Retail site merchandise inventory was $26,743 million as of September 30, 2023, up from $22,654 million on December 31, 2022[89] - Receivables from fuel and merchandise sales increased to $36,501 thousand as of September 30, 2023, from $28,959 thousand at December 31, 2022[175] - The company reported total accounts receivable of $39,180 thousand as of September 30, 2023, compared to $31,568 thousand at December 31, 2022[175] Debt and Financing - As of September 30, 2023, the total debt and finance lease obligations amounted to $774.3 million, with a current portion of $3.0 million[116] - The amount of availability under the CAPL Credit Facility at September 30, 2023, was $158 million after considering debt covenant restrictions[123] - The effective interest rate on the CAPL Credit Facility was 4.9% as of September 30, 2023[149] - The company had $762.5 million outstanding on its CAPL Credit Facility, with an effective interest rate of 4.9%[21] - Cash paid for interest for the nine months ended September 30, 2023, was $30,073 thousand, compared to $20,092 thousand for the same period in 2022, representing an increase of 49.5%[203] Segment Performance - The retail segment includes the retail sale of motor fuel and convenience merchandise, with revenues generated through leasing or subleasing real estate[196] - The wholesale segment now includes only the fuel gross profit on sales to lessee dealers and independent dealers, reflecting a strategic shift in segment reporting[197] - The company has recast the results of its segments for the three and nine months ended September 30, 2022, to align with the new segment reporting structure[198] Other Financial Metrics - The company experienced seasonality in sales volumes, with historically higher sales in the second and third quarters[83] - Approximately 18% of rent income for the nine months ended September 30, 2023, was generated from two multi-site operators, down from 20% in the same period of 2022[86] - The company anticipates future retail and wholesale gross profits, including gasoline and diesel, to be influenced by market demand trends[180] - The company’s cash distribution policy is subject to the discretion of the Board, with no assurance of future distributions[169] - Total distributions paid on common units for the three months ended September 30, 2023, were $19,934 thousand, slightly up from $19,913 thousand in the same period of 2022[192] - The company declared distributions of $0.5250 per common unit for the quarter ended September 30, 2023, consistent with the previous quarters in 2023[194]

Financial Data and Key Metrics Changes - For Q2 2023, net income was $14.5 million, up from $14 million in Q2 2022, driven by increased adjusted EBITDA despite higher interest expenses [12] - Adjusted EBITDA increased by 2% to $42.2 million compared to $41.4 million in Q2 2022 [37] - Distribution coverage ratio was 1.53 times for Q2 2023, down from 1.63 times in Q2 2022 [37] Business Line Data and Key Metrics Changes - Wholesale fuel gross profit declined by 6% to $17.9 million compared to $19 million in Q2 2022, with a wholesale segment gross profit decrease of 5% to $31.7 million [4][12] - Retail segment gross profit increased by 19% or $10.6 million compared to Q2 2022 [23] - Same-store volume in the wholesale segment improved by approximately 50 basis points year-over-year, following a decline of about 4% in Q1 [6] Market Data and Key Metrics Changes - Wholesale volume was 218.1 million gallons in Q2 2023, a 2% increase from 214.4 million gallons in Q2 2022 [21] - Retail volume on a same-store basis declined by 1% year-over-year, but has since increased approximately 7% year-over-year post-quarter [8][22] Company Strategy and Development Direction - The company is focused on converting lessee dealer sites to company-operated locations to enhance profitability and long-term value [9][25] - Continued expansion of company-operated retail footprint is planned through class of trade conversions [25] Management Comments on Operating Environment and Future Outlook - Management noted that crude oil prices were lower compared to the prior year, impacting fuel margins [20] - The company is optimistic about the driving season and is focused on serving customers to maintain strong performance [31] Other Important Information - G&A expenses increased by $1.8 million year-over-year, primarily due to acquisition-related costs and IT investments [14] - The company divested six properties for $7.8 million to maximize value and reduce leverage [26] Q&A Session Summary Question: What are the expectations for future growth? - Management emphasized the importance of converting locations to company-operated retail, which is expected to enhance long-term EBITDA and value creation [34] Question: How has the interest rate environment affected operations? - The company continues to benefit from interest rate swaps, maintaining an effective interest rate of 5.1% on its credit facility [40]

Financial Performance - Net income for the six months ended June 30, 2023, was $13.6 million, a decrease of 28.8% compared to $19.0 million for the same period in 2022[77]. - Total revenues from TopStar for the three months ended June 30, 2023, were $13.2 million, down from $22.7 million in 2022, representing a decline of 42.9%[70]. - Cash flows from operating activities provided $47.3 million for the six months ended June 30, 2023, compared to $54.7 million in 2022, reflecting a decrease of 13.5%[77]. - The company incurred capital expenditures of $11.3 million for the six months ended June 30, 2023, down from $16.4 million in 2022, a reduction of 30.9%[77]. - Total revenues for the three months ended June 30, 2023, were $1,145,396, a decrease of 22.4% compared to $1,475,033 for the same period in 2022[152]. - Revenues from fuel sales to external customers for the six months ended June 30, 2023, were $1,961,121, down 17.7% from $2,380,612 in the same period of 2022[152]. - Operating income for the three months ended June 30, 2023, was $27,853, compared to $21,072 for the same period in 2022, reflecting an increase of 32.3%[152]. Expenses and Liabilities - Rent expense under lease agreements with the Topper Group was $2.6 million for the three months ended June 30, 2023, consistent with the same period in 2022[71]. - The company distributed $7.7 million to the Topper Group related to its ownership of common units for the three months ended June 30, 2023, unchanged from 2022[90]. - Environmental liabilities recorded on the balance sheet totaled $7.2 million and $7.5 million at June 30, 2023 and December 31, 2022, respectively[98]. - Indemnification assets related to third-party escrow funds totaled $4.9 million and $5.2 million at June 30, 2023 and December 31, 2022, respectively[98]. - Income tax expense for the three months ended June 30, 2023 was $2.8 million compared to $(0.1) million for the same period in 2022[105]. Cash Flow and Financing - The effective interest rate on the CAPL Credit Facility was 5.1% as of June 30, 2023, with an applicable margin of 2.25%[64]. - As of June 30, 2023, the availability under the CAPL Credit Facility was $159.0 million after considering debt covenant restrictions[80]. - Cash paid for interest increased to $19,920 thousand in the six months ended June 30, 2023, from $12,491 thousand in the same period of 2022[135]. - The Partnership is required to maintain a Consolidated Leverage Ratio of not greater than 5.25 to 1.00 for the fiscal quarters ending in 2023[146]. - The CAPL Credit Facility prohibits cash distributions to unitholders if any event of default occurs or would result from the distribution[147]. Segment Information - The company operates in two segments: wholesale and retail, with exclusive motor fuel distribution contracts in the wholesale segment[109]. - The retail segment includes the retail sale of motor fuel and convenience merchandise, with gross profit retained by the company at commission agent sites[129]. - The Partnership's segment reporting was changed to simplify performance assessment, eliminating intersegment sales from prior reporting[150]. Inventory and Receivables - For the six months ended June 30, 2023, accounts receivable decreased by $3,554 thousand compared to a decrease of $15,125 thousand in the same period of 2022[115]. - Inventories decreased by $4,658 thousand for the six months ended June 30, 2023, compared to a decrease of $10,403 thousand in the same period of 2022[115]. - Total accounts receivable as of June 30, 2023, amounted to $35,402, an increase from $31,568 as of December 31, 2022[152]. - Receivables from fuel and merchandise sales as of June 30, 2023, were $32,683, an increase from $28,959 as of December 31, 2022[152]. Revenue Streams - Revenues from food and merchandise sales for the three months ended June 30, 2023, were $83,666, up from $73,934 in the same period of 2022, representing a growth of 13.3%[152]. - Rent income for the six months ended June 30, 2023, was $41,843, compared to $41,476 for the same period in 2022, indicating a slight increase[152]. - Other revenue for the three months ended June 30, 2023, totaled $4,957, a decrease from $5,001 in the same period in 2022[152]. Amortization and Costs - The balance of unamortized costs incurred to obtain certain contracts with customers was $10.8 million as of June 30, 2023[152]. - Amortization of costs related to contracts was $0.5 million for the three months ended June 30, 2023, compared to $0.4 million for the same period in 2022[152].