CrossAmerica Partners(CAPL) - 2024 Q2 - Quarterly Results

Financial Performance - Reported Second Quarter 2024 Net Income of $12.4 million, down from $14.5 million in Q2 2023, while Adjusted EBITDA increased to $42.6 million from $42.2 million[1][3] - Net income for the three months ended June 30, 2024, was $12,424,000, compared to $14,536,000 for the same period in 2023, reflecting a decrease of 14.5%[22] - EBITDA for the three months ended June 30, 2024, was $46,781,000, slightly down from $47,314,000 in the prior year, indicating a decrease of 1.1%[22] - Adjusted EBITDA for the same period was $42,570,000, compared to $42,198,000 in 2023, showing an increase of 0.9%[22] - Net loss for the six months ended June 30, 2024, was $(5,116) thousand, compared to a net income of $13,557 thousand for the same period in 2023[16] Retail Segment Performance - Retail segment gross profit rose 16% to $76.6 million in Q2 2024, driven by a 10% increase in motor fuel gross profit and a 23% increase in merchandise gross profit[4][5] - Total gross profit for the retail segment increased to $76,644 thousand for the three months ended June 30, 2024, up from $66,025 thousand in the same period of 2023, representing a 24.5% increase[17] - Operating income for the retail segment was $28,013 thousand for the three months ended June 30, 2024, compared to $26,151 thousand for the same period in 2023, reflecting a 7.1% increase[17] - Volume of gallons sold in the retail segment increased to 143,016 for the three months ended June 30, 2024, compared to 130,804 in the same period of 2023, a growth of 9.5%[17] - The number of company-operated retail sites increased to 372 as of June 30, 2024, compared to 292 at the end of June 30, 2023, marking a 27.4% increase[17] Wholesale Segment Performance - Wholesale segment gross profit decreased by 11% to $28.1 million, attributed to a 12% decline in wholesale volume distributed[7][8] - Total gross profit for the wholesale segment decreased to $28,118 thousand for the three months ended June 30, 2024, down from $31,699 thousand in the same period of 2023, a decline of 11.5%[18] Distribution and Cash Flow - A quarterly distribution of $0.5250 per limited partner unit was declared for Q2 2024, to be paid on August 9, 2024[12] - Distributable Cash Flow for the three months ended June 30, 2024, was $26,051,000, down from $30,395,000 in 2023, representing a decline of 14.3%[22] - The Distribution Coverage Ratio for the three months ended June 30, 2024, was 1.30x, compared to 1.53x in the same period last year, indicating a decrease in coverage[22] Operational Developments - CrossAmerica sold ten properties for $11.9 million in proceeds during Q2 2024, resulting in a net gain of $6.5 million[9] - The acquisition of 59 sites from Applegreen was completed in April 2024, enhancing CrossAmerica's operational footprint[10] - CrossAmerica operates approximately 1,700 locations and owns or leases around 1,100 sites across 34 states in the U.S.[23] - The company ranks as one of ExxonMobil's largest distributors by fuel volume in the United States[23] Financial Stability - Distribution Coverage Ratio for the trailing twelve months ended June 30, 2024, was 1.32 times, down from 1.68 times in the comparable period of 2023[1][2] - As of June 30, 2024, leverage was 4.39 times, down from 4.49 times as of March 31, 2024, indicating improved financial stability[11] - Total current assets as of June 30, 2024, were $125,555, an increase of 15.7% from $108,522 at December 31, 2023[14] - Total liabilities increased to $1,172,852 as of June 30, 2024, compared to $1,150,931 at the end of 2023, reflecting a rise of 1.9%[14] - Total assets decreased to $1,164,673 as of June 30, 2024, down from $1,181,682 at December 31, 2023[14] Operating Expenses - Operating expenses for the retail segment increased by 22% to $48.6 million, primarily due to a 28% increase in the average company-operated site count[6] - Operating expenses for the three months ended June 30, 2024, were $82,163, an increase of 7.1% compared to $76,571 in the prior year[15] - The current portion of debt and finance lease obligations increased to $3,183 as of June 30, 2024, compared to $3,083 at the end of 2023[14] Earnings Per Unit - The company reported a basic earnings per common unit of $0.31 for the three months ended June 30, 2024, down from $0.37 in the same period of 2023[15]