CrossAmerica Partners(CAPL) - 2019 Q1 - Quarterly Report

Financial Performance - Operating revenues for the three months ended March 31, 2019, were $471.8 million, a decrease of 15% compared to $554.6 million for the same period in 2018[15] - Gross profit for the same period was $37.1 million, down from $40.0 million, reflecting a decrease of approximately 7%[15] - Net income attributable to limited partners for Q1 2019 was $0.08 million, compared to a net loss of $0.8 million in Q1 2018[15] - Net income for the three months ended March 31, 2019, was $212,000, compared to a net loss of $807,000 for the same period in 2018[22] - For the three months ended March 31, 2019, CrossAmerica reported a net income of $79,000, compared to a net loss of $1.985 million for the same period in 2018[123] - Total distributions paid for the three months ended March 31, 2019, were $18.099 million, down from $21.415 million in the same period of 2018, reflecting a decrease of approximately 15.5%[123] Assets and Liabilities - Total current assets increased to $60.4 million as of March 31, 2019, from $50.9 million at December 31, 2018, representing a growth of 18%[13] - Total assets reached $956.7 million as of March 31, 2019, up from $866.9 million at the end of 2018, indicating a growth of approximately 10%[13] - Total liabilities increased to $834.9 million as of March 31, 2019, compared to $756.0 million at December 31, 2018, reflecting an increase of about 10%[13] - The balance of limited partners' unitholders' equity at March 31, 2019, was $121,809,000, up from $110,933,000 at December 31, 2018[22] - As of March 31, 2019, total debt and finance lease obligations amounted to $540,875,000, an increase of 3.4% from $522,927,000 as of December 31, 2018[7] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $10,998,000, a decrease from $18,140,000 in the prior year[20] - Capital expenditures for the period totaled $(7,078,000), significantly higher than $(2,097,000) in the previous year[20] - Cash and cash equivalents increased to $6.3 million as of March 31, 2019, from $3.2 million at December 31, 2018, marking a growth of 97%[13] - Cash and cash equivalents at the end of the period increased to $6,299,000 from $1,680,000 year-over-year[20] - Cash paid for interest in the three months ended March 31, 2019, was $6.406 million, a decrease from $7.469 million in the same period of 2018[136] Revenue Sources - Revenue from fuel sales to external customers in the Wholesale segment was $329.913 million for the three months ended March 31, 2019, compared to $382 million in the same period of 2018, indicating a decline of approximately 13.5%[130] - Retail segment revenue from fuel sales was $99.600 million for Q1 2019, down from $127.317 million in Q1 2018, a decrease of about 21.8%[130] - Revenues from motor fuel sales to Circle K for the three months ended March 31, 2019, were $33.3 million, a decrease of 7.7% from $36.1 million for the same period in 2018[84] - Total purchases of motor fuel from Circle K amounted to $37.4 million for the three months ended March 31, 2019, down from $46.9 million in 2018, representing a decline of 20.2%[86] Operating Expenses - Operating expenses for Q1 2019 were $32.8 million, down from $36.6 million in Q1 2018, a decrease of approximately 10%[15] - Expenses under the Amended Omnibus Agreement totaled $2.9 million for the three months ended March 31, 2019, compared to $3.1 million in 2018, indicating a decrease of 6.5%[90] Debt and Financing - The revolving credit facility balance was $516,500,000 as of March 31, 2019, compared to $498,000,000 as of December 31, 2018, reflecting a 3.0% increase[7] - The weighted-average interest rate on borrowings under the revolving credit facility was 5.24% as of March 31, 2019[7] - Future principal payments on debt total $516,500,000 for 2020, with total future payments (including finance lease obligations) amounting to $544,390,000[7] - A one percentage point change in the average interest rate would impact annual interest expense by approximately $5.2 million[232] Lease and Rental Agreements - The company leases approximately 400 retail sites with a weighted-average remaining lease term of 6.2 years as of March 31, 2019[74] - Future minimum rental payments under operating leases total $180,742,000, with a current portion of $23,876,000[76] - Sublease rental income for the three months ended March 31, 2019, amounted to $9,500,000[77] Inventory and Assets - The company reported a net carrying amount of property and equipment of $602.4 million as of March 31, 2019, down from $647.4 million at the end of 2018[54] - The company’s inventories totaled $15.1 million as of March 31, 2019, compared to $14.1 million at the end of 2018[53] - Intangible assets decreased to $55.1 million as of March 31, 2019, compared to $59.1 million at December 31, 2018[56] Tax and Compliance - The effective tax rate for the company was impacted primarily by the income tax obligations of its corporate subsidiaries, with an income tax expense of $0.1 million recorded for Q1 2019[119] - CrossAmerica's partnership structure allows it to avoid federal and state income taxes, provided non-qualifying income does not exceed 10% of total gross income[116] Other Financial Metrics - The company recorded an equity-based compensation expense of $0.1 million for both Q1 2019 and Q1 2018, with unrecognized compensation expense associated with CST equity-based awards totaling $0.3 million as of March 31, 2019[115] - Changes in operating assets and liabilities resulted in a net decrease of $2.209 million for the three months ended March 31, 2019[135]