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]

Financial Performance - Net income decreased by 55% to $12292 thousand in the three months ended September 30, 2023, compared to $27593 thousand in the same period of 2022[8, 34] - Adjusted EBITDA decreased by 29% to $44209 thousand for the three months ended September 30, 2023, compared to $62167 thousand for the same period in 2022[8, 34] - Distributable Cash Flow decreased by 38% to $31389 thousand for the three months ended September 30, 2023, compared to $50869 thousand for the same period in 2022[8, 34] - Distribution Coverage Ratio (current quarter) decreased by 38% to 1.57x compared to 2.55x in the same period last year[8, 34] Capital Structure - Credit Facility balance was $762.5 million as of September 30, 2023[1] - Leverage ratio was 4.35x as of September 30, 2023[1] - Effective interest rate was 4.9% as of September 30, 2023, benefiting from interest rate swaps[1] Segment Performance - Motor Fuel Gross Profit from the Wholesale Segment declined 4% to $18.8 million in 3Q23 versus $19.5 million in 3Q22[18] - Total Wholesale Segment Gross Profit decreased 4% to $32.9 million for 3Q23 versus $34.1 million for 3Q22[18] - Retail Segment's Gross Profit declined 16% year-over-year to $67.6 million in 3Q23 versus $80.6 million in 3Q22[18] Capital Expenditure - Q3 2023 capital expenditures totaled $10.4 million, including $8.5 million of growth capex[36]

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].

Financial Data and Key Metrics Changes - The company reported a net loss of just under $1 million for Q1 2023 compared to a net income of $5 million in Q1 2022, primarily due to increased interest expenses from the elevated interest rate environment [15][27] - Adjusted EBITDA for Q1 2023 was $31.7 million, a slight decrease of 1% from $32 million in Q1 2022 [27] - Distributable cash flow for Q1 2023 was $19.1 million, down from $24.4 million in Q1 2022, mainly due to increased cash interest expenses [27] Business Line Data and Key Metrics Changes - Wholesale fuel gross profit increased 3% to $16.7 million in Q1 2023 from $16.2 million in Q1 2022, driven by improved fuel margins [23] - Retail segment gross profit increased by 5% or $2.3 million compared to Q1 2022, with merchandise gross profit rising 9% [13][25] - Inside sales on a same-site basis increased approximately 4% year-over-year, with inside sales excluding cigarettes up about 10% [7][25] Market Data and Key Metrics Changes - National gasoline volume was approximately flat compared to the prior year, with a slight increase in volume observed since the quarter end [6] - The company's wholesale volume was 201.9 million gallons in Q1 2023, down from 203.9 million gallons in Q1 2022, largely due to lower base business volume [36] - Same-store volume across the entire portfolio was down around 2% for the quarter, driven by strong retail segment performance [37] Company Strategy and Development Direction - The company continues to evaluate its portfolio for opportunities to divest non-core properties, with one property sold for $400,000 in Q1 2023 and two additional properties sold for $6.6 million post-quarter [14] - The refinancing of credit facilities into a single facility simplifies the capital structure and provides necessary liquidity for future operations [26][45] - The company aims to maximize value and cash flows from each site in its portfolio while preparing for the summer drive season [30] Management's Comments on Operating Environment and Future Outlook - Management noted that the elevated interest rate environment has impacted interest expenses, but the company benefits from interest rate swaps established in early 2020 [11][18] - The company expressed confidence in its operational performance and cash flow generation, which has improved its leverage profile, providing flexibility for future opportunities [48] - Management highlighted the strong performance of the retail segment and ongoing initiatives to enhance pricing and product sourcing [38] Other Important Information - The company’s distribution coverage was 0.96 times for the current quarter compared to 1.22 times in Q1 2022, reflecting the seasonality of the business [46] - Capital expenditures totaled $6 million in Q1 2023, with $4 million allocated to growth-related investments, a decrease from $8.9 million in Q1 2022 [47] Q&A Session Summary Question: What are the expectations for future revenue and operational metrics? - Management provided forward-looking statements regarding expected revenue and operational metrics but noted that there can be no assurance that these expectations will be achieved [21] Question: How has the company managed its interest rate exposure? - The company has entered into new SOFR-based interest rate swap contracts to manage interest rate exposure and provide certainty around interest expenses moving forward [42]

Financial Performance - Net loss was $979 thousand, compared to net income of $5047 thousand in the first quarter of 2022, a decrease of 119%[24, 36] - Adjusted EBITDA decreased by 1% from $31968 thousand in 1Q22 to $31738 thousand in 1Q23[24, 36] - Distributable Cash Flow decreased by 21% from $24248 thousand in 1Q22 to $19132 thousand in 1Q23[24, 36] - Distribution coverage ratio (current quarter) decreased by 21% from 122x to 096x[24, 36] Wholesale Segment - Motor fuel gross profit from the Wholesale Segment increased 3% to $167 million in 1Q23 from $162 million in 1Q22[26] - Overall Gross Profit for the Wholesale Segment increased 3% to $312 million for 1Q23 from $303 million for 1Q22[26] - Wholesale fuel margin increased 5% from 79 cents in 1Q22 to 83 cents in 1Q23, while fuel volume declined 1%[26] - Wholesale fuel volume distributed for 1Q23 was 2019 million gallons compared to 2039 million gallons in 1Q22[26] Retail Segment - Retail Segment's Gross Profit increased 5% year-over-year from $485 million in 1Q22 to $508 million in 1Q23[26] - Retail fuel volume for 1Q23 increased 3% when compared to 1Q22 (1191 million gallons sold in 1Q23 versus 1160 million gallons in 1Q22)[26] Capital and Debt - Upsized borrowing capacity to $925 million from $750 million[8] - Leverage ratio at 405x at 3/31/23[8] - Q1 2023 capital expenditures of $60 million, including $40 million of growth capex[30]

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]