CrossAmerica Partners(US:CAPL)2024-11-06 22:30Financial Performance - Operating revenues for the three months ended September 30, 2024, were $1,079,163, a decrease of 10.8% compared to $1,210,023 for the same period in 2023[14] - Gross profit increased to $111,226 for the three months ended September 30, 2024, compared to $100,440 in the prior year, reflecting a 10.8% increase[14] - Operating income for the nine months ended September 30, 2024, was $42,228, down from $61,108 in the same period of 2023, representing a decline of 30.9%[14] - Net income available to limited partners for the three months ended September 30, 2024, was $10,126, a decrease of 13.2% from $11,663 in the prior year[14] - Basic earnings per common unit for the three months ended September 30, 2024, was $0.27, down from $0.31 in the same period of 2023, a decline of 12.9%[14] - Net income for the three months ended September 30, 2024, was $10,708 million, compared to $12,292 million for the same period in 2023, reflecting a decrease of approximately 12.9%[18] - Comprehensive income for the three months ended September 30, 2024, was $(1,560) million, compared to $14,144 million for the same period in 2023[18] - Revenues from TopStar for the three months ended September 30, 2024, were $10.9 million, down from $13.7 million in the same period of 2023[44] - The wholesale segment generated revenues of $471.2 million from fuel sales to external customers for the three months ended September 30, 2024, compared to $635.3 million in 2023, reflecting a decline of 25.7%[74] - The retail segment reported revenues of $607.9 million for the three months ended September 30, 2024, compared to $574.7 million in 2023, indicating an increase of 5.8%[74] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was $76,672, compared to $78,989 in the same period of 2023, a decrease of 2.6%[16] - Net cash used in investing activities for the nine months ended September 30, 2024, was $(26,562), an increase in cash outflow compared to $(16,535) in the prior year[16] - Net cash used in financing activities for the nine months ended September 30, 2024, was $(47,335), a decrease from $(72,718) in the same period of 2023, indicating improved cash management[16] - Cash and cash equivalents at the end of the period increased to $7,765 from $5,790 at the end of September 30, 2023, reflecting a positive cash flow trend[16] - The company reported a net change in operating assets and liabilities of $8.734 million for the nine months ended September 30, 2024, compared to a decrease of $5.926 million in the same period of 2023[16] Assets and Liabilities - As of September 30, 2024, total equity was $(59,041) million, a decrease from $(37,252) million as of June 30, 2024[18] - As of September 30, 2024, assets held for sale totaled $11.66 million, a significant increase from $400,000 on December 31, 2023[29] - Inventory increased to $60.97 million as of September 30, 2024, up from $52.34 million on December 31, 2023, primarily due to the Applegreen Acquisition[30] - Property and equipment, net decreased to $665.19 million as of September 30, 2024, from $705.22 million on December 31, 2023[31] - Long-term debt and finance lease obligations totaled $781.19 million as of September 30, 2024, compared to $767.06 million on December 31, 2023[34] - Environmental liabilities recorded on the balance sheet totaled $8.4 million and $7.4 million at September 30, 2024 and December 31, 2023, respectively[56] - Indemnification assets related to third-party escrow funds totaled $6.3 million and $5.3 million at September 30, 2024 and December 31, 2023, respectively[56] Acquisitions and Investments - The company acquired assets from Applegreen for total consideration of $16.9 million, transitioning 59 locations from lessee dealer sites to company-operated sites[27] - The company paid $25.5 million in cash for the Applegreen acquisition, which included lease termination payments and inventory purchases[28] - The company experienced a total loss on lease termination of $15.968 million related to the Applegreen acquisition[28] - The company recorded a non-cash write-off of deferred rent income of $1.5 million related to the Applegreen acquisition[27] Supplier and Operational Risks - For the nine months ended September 30, 2024, approximately 81% of motor fuel was purchased from four suppliers, indicating a concentration risk[25] - Approximately 48% of merchandise was purchased from one supplier for the nine months ended September 30, 2024, highlighting supplier dependency[26] Expenses and Distributions - Expenses under the Omnibus Agreement totaled $32.6 million and $28.6 million for the three months ended September 30, 2024 and 2023, respectively, and $93.5 million and $81.3 million for the nine months ended September 30, 2024 and 2023[45] - Common unit distributions to the Topper Group were $7.7 million for each of the three months ended September 30, 2024 and 2023, and $23.1 million for each of the nine months ended September 30, 2024 and 2023[46] - The company plans to maintain a cash distribution of $0.5250 per unit for the upcoming quarters, subject to Board discretion[67] Interest and Tax Expenses - The effective interest rate on the CAPL Credit Facility was 6.5% as of September 30, 2024[35] - Income tax expense for the three months ended September 30, 2024 and 2023 was $2.4 million and $1.5 million, respectively, and for the nine months was ($1.7) million and $2.6 million[65] Other Financial Metrics - The company incurred charges of $0.3 million and $0.2 million for rent expense for the three months ended September 30, 2024 and 2023, respectively[51] - Maintenance and environmental costs incurred with a related party were $0.7 million for each of the three months ended September 30, 2024 and 2023, and $2.4 million and $2.0 million for the nine months ended September 30, 2024 and 2023, respectively[48] - Merchandise costs for convenience store products amounted to $5.1 million and $5.5 million for the three months ended September 30, 2024 and 2023, and $14.5 million and $15.6 million for the nine months ended September 30, 2024 and 2023, respectively[49] - Accretion on preferred membership interests was $0.6 million for each of the three months ended September 30, 2024 and 2023, and $2.0 million and $1.8 million for the nine months ended September 30, 2024 and 2023, respectively[47]