CrossAmerica Partners(US:CAPL)2021-05-10 16:00Financial 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]