| --- | --- | --- | --- | --- | |-------|-------|---------------|--------------------|-------| | | | | | | | | | | | | | | | | | | | | | | First Quarter 2023 | | | | | | | | | | | | | | | | | Earnings Call | | | | | | May 2023 | | | Statements contained in this presentation that state the Partnership's or management's expectations or predictions of the future are forward-looking statements. The words "believe," "expect," "should," "intends," "anticipates", "estimates," "target" and other similar expressions ...

Financial Performance - Operating revenues for Q1 2023 were $1,016,159, a decrease of 7.1% compared to $1,093,211 in Q1 2022[70] - Gross profit increased to $82,059 in Q1 2023, up from $78,830 in Q1 2022, reflecting a growth of 4.0%[70] - Operating income for Q1 2023 was $9,110, slightly down from $9,719 in Q1 2022, representing a decrease of 6.3%[70] - Net loss for Q1 2023 was $(979), compared to a net income of $5,047 in Q1 2022, indicating a significant decline[71] - Basic and diluted loss per common unit was $(0.04) in Q1 2023, compared to earnings of $0.13 in Q1 2022[70] - EBITDA for Q1 2023 was $29.2 million, compared to $30.1 million in Q1 2022, reflecting a decrease of $0.9 million[33] - Distributable Cash Flow for Q1 2023 was $19.1 million, down from $24.2 million in Q1 2022, indicating a decrease in cash available for distributions[33] - The Distribution Coverage Ratio for Q1 2023 was 0.96x, compared to 1.22x in Q1 2022, suggesting a decline in the ability to cover distributions[33] Cash Flow and Liquidity - Net cash provided by operating activities decreased to $11,538 in Q1 2023 from $28,388 in Q1 2022, a decline of 59.3%[71] - Cash and cash equivalents at the end of Q1 2023 were $7,517, down from $11,149 at the end of Q1 2022[71] - The company expects ongoing liquidity sources to include cash generated from operations and proceeds from real estate sales[37] Expenses and Liabilities - The company reported a total operating expense of $71,182 in Q1 2023, an increase from $68,867 in Q1 2022, reflecting a rise of 4.8%[70] - Interest expense increased significantly to $(12,012) in Q1 2023 from $(6,661) in Q1 2022, marking an increase of 80.5%[70] - Total liabilities decreased from $1,175,465 thousand as of December 31, 2022, to $1,168,155 thousand as of March 31, 2023, a reduction of about 0.6%[81] - Total debt and finance lease obligations as of March 31, 2023, amounted to $791.3 million, with a current portion of $2.9 million[26] Assets and Equity - Total current assets decreased from $118,406 thousand as of December 31, 2022, to $111,492 thousand as of March 31, 2023, a decline of approximately 5.4%[81] - Total equity decreased significantly from $52,977 thousand as of December 31, 2022, to $28,827 thousand as of March 31, 2023, representing a decline of approximately 45.6%[81] - Cash and cash equivalents dropped from $16,054 thousand to $7,517 thousand, a decrease of about 53.1%[81] Operational Highlights - The Partnership amended its CAPL Credit Facility, increasing the senior secured revolving credit facility from $750 million to $925 million[100] - The Partnership's wholesale business purchased approximately 80% of its motor fuel from four suppliers for the three months ended March 31, 2023[92] - The Partnership's merchandise purchases from one supplier accounted for approximately 47% for the three months ended March 31, 2023[93] - The company completed an acquisition of assets from CSS for $27.5 million on November 9, 2022, which included wholesale fuel supply contracts for 38 dealer-owned locations[116] Market and Risk Factors - The company anticipates that market developments may cause estimates to change, highlighting risks such as motor fuel price volatility and competition[218] - The company has minimum volume purchase requirements under fuel supply agreements but did not incur any significant penalties during the three months ended March 31, 2023, or 2022[196] Other Financial Metrics - The effective interest rate on the CAPL Credit Facility was 4.98% as of March 31, 2023, with an applicable margin of 2.25%[151] - The amount of availability under the CAPL Credit Facility was $142.5 million as of March 31, 2023, after considering debt covenant restrictions[152] - The company recorded an income tax benefit of $1.7 million for the three months ended March 31, 2023, compared to $1.9 million for the same period in 2022[172]

Financial Data and Key Metrics Changes - For the fourth quarter of 2022, net income increased to $17.1 million from $12 million in the same quarter of 2021, driven by higher operating income in both wholesale and retail segments [53] - Adjusted EBITDA for Q4 2022 was $44.3 million, a 20% increase from $37 million in Q4 2021 [27] - For the full year 2022, net income rose to $63.7 million, up over $40 million from the previous year, while adjusted EBITDA increased by 46% to $179.8 million [28] Business Line Data and Key Metrics Changes - The wholesale fuel gross profit for Q4 2022 increased by 4% to $18.7 million compared to $18 million in Q4 2021, with a wholesale segment gross profit of $32.8 million, up 6% from $31.1 million [40] - Retail segment gross profit increased by 20% or $10.2 million compared to Q4 2021, with same-store volume outperforming national demand data [43][44] - For the full year 2022, the retail segment's gross profit increased by 61% to $245 million, while motor fuel gross profit rose by 85% [21] Market Data and Key Metrics Changes - National gasoline demand was down approximately 7% for the quarter, with the company's wholesale segment same-store volume down about 8.5% [15] - The retail segment's same-store sales excluding cigarettes increased by 2% for the full year 2022 [48] Company Strategy and Development Direction - The company aims to continue providing excellent service and value to customers while maximizing portfolio value [25] - The acquisition of assets from Community Service Stations for $27.5 million is expected to enhance returns and was funded through borrowings and cash [49] - The company is focused on divesting noncore properties, having divested 27 properties for $12.9 million in proceeds during the year [48] Management's Comments on Operating Environment and Future Outlook - Management noted that the partnership is well-positioned for future performance, with a strong track record across various economic environments [24] - The company plans to manage its leverage ratio at approximately 4x while focusing on operational performance and cash flow generation [65] - Management expressed confidence in the ability to capitalize on favorable macro conditions to generate strong performance [24] Other Important Information - Capital expenditures for the full year 2022 totaled $30.4 million, with $23.2 million being growth-related, a decline from previous years [2] - Operating expenses for Q4 2022 increased by 11% year-over-year, primarily due to higher store-level employment costs [30] Q&A Session Summary Question: Were there any questions from participants? - There were no questions from participants during the call [35]

Financial Obligations - As of December 31, 2022, the company had $606.1 million outstanding on its CAPL Credit Facility, with an effective interest rate of 4.2% after accounting for interest rate swap contracts[110]. - The company had $159.0 million outstanding under its Term Loan Facility, with a weighted-average interest rate of 6.5% as of December 31, 2022[112]. - A one percentage point change in LIBOR would impact annual interest expense by approximately $3.1 million for the CAPL Credit Facility and $1.6 million for the Term Loan Facility[110][112]. Risk Management - The company is exposed to market risks including interest rate risk and commodity price risk, which could affect its financial performance[109]. - The company does not currently engage in hedging activities for gasoline and diesel fuel purchases, allowing it to pass on price changes to customers[113]. - The company operates solely in the U.S. and is not exposed to foreign currency risk[115]. Internal Controls - The company assessed its internal control over financial reporting as effective as of December 31, 2022, based on COSO criteria[134]. - The independent auditor expressed an unqualified opinion on the company's internal control over financial reporting as of December 31, 2022[135]. Profitability Influences - The company anticipates future retail and wholesale gross profits to be influenced by trends in gasoline and diesel demand in its operating regions[130]. - A $10 per barrel change in crude oil prices would impact annual wholesale motor fuel gross profit by approximately $2.8 million due to prompt payment discounts[114]. - A significant portion of total gallons purchased is subject to Terms Discounts for prompt payment and other rebates, which are recorded within cost of sales[114]. - The dollar value of discounts related to motor fuel prices fluctuates with changes in purchase prices[114]. Capital Investments - The company plans to continue evaluating its capital investments and potential acquisitions to enhance operational results[130]. - The company issued 25,000 Series A Preferred Interests at a price of $1,000 per interest, totaling $25 million, with an initial liquidation preference of $1,000 per share[142].

Financial Data and Key Metrics Changes - The company reported net income of $27.6 million for Q3 2022, up from $8.9 million in Q3 2021, driven by increases in operating income in both wholesale and retail segments [26] - Adjusted EBITDA increased by 73% to $62.2 million in Q3 2022 compared to $35.9 million in Q3 2021 [26] - Distributable cash flow rose to $50.9 million, a 67% increase from $30.4 million in Q3 2021 [27] - Operating cash flow generated during the quarter was $72 million, an increase of over $36 million compared to Q3 2021 [28] Business Line Data and Key Metrics Changes - Wholesale fuel gross profit increased by 24% to $42.2 million compared to $34.1 million in Q3 2021, driven by an increase in fuel margin [8] - Retail segment gross profit increased by 102% to $28.5 million, with motor fuel gross profit rising by $22.5 million and merchandise gross profit by $5.1 million compared to Q3 2021 [15] - Wholesale fuel volume was 338 million gallons, a decline of 5% year-over-year, while same-store wholesale volume declined approximately 8% [9][10] Market Data and Key Metrics Changes - National gasoline demand was down approximately 6% for the quarter, impacting overall fuel volume [10] - The average weekly retail fuel prices started the quarter approximately 55% above the prior year's levels but ended the quarter 15% to 20% above the previous average [10] - The company experienced a favorable fuel margin environment, with wholesale fuel margin per gallon increasing by 30% to $12.5 per gallon compared to $9.6 per gallon in Q3 2021 [12] Company Strategy and Development Direction - The company announced an asset purchase agreement for $27.5 million to acquire assets from community service stations, expected to be immediately accretive to distributable cash flow [22][23] - The leadership team emphasized a commitment to producing long-term value for unit owners and capitalizing on favorable market conditions [24] Management's Comments on Operating Environment and Future Outlook - Management noted that the declining fuel price environment positively impacted fuel margins, contrasting with earlier rising price conditions [12] - The company is focused on operational performance and cash flow generation to manage leverage ratios effectively [37] - Management expressed confidence in the company's financial position entering 2023, following strong Q3 results [38] Other Important Information - Operating expenses increased by 36% year-over-year, primarily due to the addition of new sites and higher real estate taxes [29] - General and administrative expenses decreased by 33% year-over-year, mainly due to lower acquisition-related costs [31] - The company distributed $52.5 per unit during Q3 2022, with a distribution coverage of 2.55 times [32] Q&A Session Summary - No questions were raised during the Q&A session, and management encouraged participants to reach out later if they had inquiries [39]

| --- | --- | --- | --- | --- | --- | |-------|-------|--------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | Third Quarter 2022 | | | | | | | | | | | | | | Earnings Call | | | | | | | | | | | | | | | | | | | | | November 2022 | | | | Third Quarter 2022 Earnings Call November 2022 Forward Looking Statement Statements contained in this presentation that state the Partnership's or management's expectations or predictions of the future are forward-looking statements. The words "believe ...

Financial Performance - For the three months ended September 30, 2022, operating revenues increased to $1,274,407, a 29.3% increase from $985,122 in the same period of 2021[15] - Gross profit for the nine months ended September 30, 2022, was $282,505, representing a 44.2% increase compared to $195,693 for the same period in 2021[15] - Net income for the three months ended September 30, 2022, was $27,593, up from $8,852 in the same period of 2021, marking a significant increase of 211.5%[15] - Net income for the nine months ended September 30, 2022, was $46,606,000, a significant increase from $9,674,000 in the same period of 2021, representing a growth of 382%[19] - Operating income for the three months ended September 30, 2022, was $39,639 thousand, compared to $12,588 thousand for the same period in 2021, reflecting a significant improvement[105] Assets and Liabilities - The total current assets as of September 30, 2022, were $122,566, an increase of 15.3% from $106,315 as of December 31, 2021[12] - Total liabilities decreased to $1,163,876 as of September 30, 2022, down from $1,213,584 as of December 31, 2021, reflecting a reduction of 4.1%[12] - The company’s inventory as of September 30, 2022, was $47,258, slightly up from $46,100 as of December 31, 2021, showing a growth of 2.5%[12] - The total equity as of September 30, 2022, was $57,113, a marginal increase from $56,558 as of December 31, 2021, reflecting a growth of 1.0%[12] - As of September 30, 2022, total debt and finance lease obligations amounted to $767.1 million, down from $829.8 million at the end of 2021[46] Cash Flow and Investments - Net cash provided by operating activities increased to $126,460,000 for the nine months ended September 30, 2022, compared to $76,267,000 for the same period in 2021, reflecting a growth of 66%[19] - Net cash used in investing activities was $(24,169,000) for the nine months ended September 30, 2022, compared to $(283,200,000) in the same period of 2021, showing a significant reduction of 91%[19] - Net cash (used in) provided by financing activities was $(98,151,000) for the nine months ended September 30, 2022, compared to $214,667,000 in the same period of 2021, indicating a shift in cash flow[19] - Cash and cash equivalents increased to $11,788 as of September 30, 2022, from $7,648 as of December 31, 2021, indicating a growth of 54.0%[12] - Cash distributions for the quarter ended September 30, 2022, were $19,913,000, maintaining a distribution of $0.5250 per unit[98] Revenue Sources - Revenues from fuel sales to external customers for the nine months ended September 30, 2022, reached $3,552,873 thousand, up 55.5% from $2,288,440 thousand in the prior year[105] - Intersegment revenues from fuel sales for the nine months ended September 30, 2022, totaled $1,235,496 thousand, compared to $604,043 thousand in the same period of 2021[105] - Revenues from TopStar for the three months ended September 30, 2022, were $18.6 million, compared to $15.7 million for the same period in 2021, representing a 18.5% increase[63] Expenses - Operating expenses for the nine months ended September 30, 2022, totaled $211,455, which is a 20.0% increase from $176,182 in the same period of 2021[15] - Expenses under the Omnibus Agreement totaled $22.4 million for the three months ended September 30, 2022, compared to $16.9 million for the same period in 2021, reflecting a 32.5% increase[65] - Rent expense under lease agreements with the Topper Group was $2.6 million for the three months ended September 30, 2022, compared to $2.3 million for the same period in 2021[64] Tax and Income - Income tax expense for the three months ended September 30, 2022, was $3.8 million, compared to a benefit of $(1.1) million for the same period in 2021[92] - The effective tax rate differs from the combined federal and state statutory rate primarily due to only certain subsidiaries being subject to income tax[92] - The company reported a basic earnings per common unit of $0.71 for the three months ended September 30, 2022, compared to $0.23 for the same period in 2021, representing a growth of 208.7%[15] Acquisitions and Agreements - The acquisition of assets from Community Service Stations, Inc. was agreed for a purchase price of $27.5 million, expected to close in Q4 2022[34][35] - The final three properties from a 106-site acquisition from 7-Eleven were purchased for $3.6 million, with $1.8 million payable by February 2027[36] Risk and Management - Management believes that the financial statements provide adequate disclosures to avoid misleading information, despite being unaudited[25] - The company operates in two segments: wholesale and retail, with wholesale focusing on motor fuel distribution and retail on sales at operated sites[101] - No significant changes to market risk have occurred since December 31, 2021, indicating stability in the company's risk profile[220]

Financial Data and Key Metrics Changes - Net income for Q2 2022 was $14 million, up from $4.8 million in Q2 2021, driven by increases in operating income in both wholesale and retail segments [22] - Adjusted EBITDA increased by 39% to $41.4 million compared to $29.7 million in Q2 2021 [23] - Distributable cash flow rose 30% to $32.4 million from $25 million in Q2 2021, with distribution coverage at 1.63x compared to 1.26x in the prior year [23] Business Line Data and Key Metrics Changes - Wholesale fuel gross profit increased 33% to $40.5 million, with wholesale segment gross profit up 24% to $55 million [8] - Retail segment gross profit surged 66% to $13.9 million, with motor fuel gross profit up 89% and merchandise gross profit rising 68% year-over-year [12] - Same-site retail volume increased by 2%, contrasting with a 6% decline in wholesale same-site fuel volume [12][10] Market Data and Key Metrics Changes - National gasoline demand was down year-over-year for all but one week in the quarter, impacting wholesale fuel volume [9] - Despite lower fuel volumes, the fuel margin per gallon increased by 28% to $0.118, attributed to better sourcing costs and increased volume from company-operated retail sites [10] Company Strategy and Development Direction - The company continues to focus on integrating assets acquired from 7-Eleven and is nearing completion of EMV conversion and rebranding efforts [27] - Ongoing evaluation of the portfolio for divestment of non-core properties is part of the strategy to recycle capital for growth opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management noted a decline in GDP and indicated that economic activity was slowing, yet the company posted strong results, demonstrating resilience [20] - The company is well-positioned to succeed and provide attractive financial returns across various economic environments [20] Other Important Information - Operating expenses increased due to the addition of 7-Eleven sites, with a 69% increase in average company-operated site count [16] - G&A expenses decreased by 17% year-over-year, primarily due to lower acquisition-related costs [18] - Inflation has impacted product costs, with increases of 6% to 8% in certain categories, and the company is adjusting pricing strategies accordingly [15] Q&A Session Summary - No questions were raised during the Q&A session, and the operator concluded the call [31][32]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | |-------------------------------------------------------------------------------------------------|------------------------------------------- ...

CrossAmerica Partners LP (NYSE:CAPL) Q1 2022 Earnings Conference Call May 10, 2022 9:00 AM ET Company Participants Maura Topper - Chief Financial Officer Charles Nifong - Chief Executive Officer and President Conference Call Participants Maura Topper Good morning and thank you for joining the CrossAmerica Partners First Quarter 2022 Earnings Call. With me today is; Charles Nifong, CEO and President. Charles will provide some opening comments, a brief overview of CrossAmerica’s operational performance and hi ...