CrossAmerica Partners(US:CAPL)2020-08-06 23:16Financial Performance - Operating revenues for the three months ended June 30, 2020, were $398,402,000, a decrease of 34.2% from $605,528,000 for the same period in 2019[23] - Net income for the three months ended June 30, 2020, was $5,230,000, down from $6,441,000 in the same period of 2019, reflecting a decline of 18.8%[23] - Basic and diluted earnings per common unit for the three months ended June 30, 2020, were $0.14, compared to $0.18 for the same period in 2019, a decrease of 22.2%[23] - Operating income for the three months ended June 30, 2020, was $6.3 million, a significant decrease from $13.9 million in the same period of 2019[180] - Total revenues for the three months ended June 30, 2020, were $398.4 million, compared to $605.5 million for the same period in 2019, reflecting a decrease of approximately 34.2%[180] - Revenues from wholesale fuel sales and rental income from Circle K amounted to $46.6 million for the six months ended June 30, 2020, down from $75.6 million in 2019[129] Assets and Liabilities - Total assets increased to $1,021,660,000 as of June 30, 2020, compared to $911,147,000 at December 31, 2019, representing a growth of approximately 12.1%[19] - Total current liabilities increased to $154,659,000 as of June 30, 2020, from $112,636,000 at December 31, 2019, an increase of 37.3%[19] - Total equity increased to $118,514,000 as of June 30, 2020, from $78,397,000 at December 31, 2019, reflecting a growth of 51.1%[19] - Long-term debt and finance lease obligations totaled $524.9 million as of June 30, 2020, down from $541.6 million at the end of 2019[101] - The company classified 28 sites as held for sale, with total assets held for sale valued at $12.1 million as of June 30, 2020[91] Cash Flow and Investments - Net cash provided by operating activities was $61,643 for the six months ended June 30, 2020, up from $34,170 in the prior year, indicating a 80.7% increase[26] - The company experienced a net increase in cash and cash equivalents of $405 for the six months ended June 30, 2020, compared to a decrease of $(918) in the same period of 2019[26] - Cash paid for interest decreased to $9.533 million for the six months ended June 30, 2020, down from $13.441 million for the same period in 2019, a reduction of approximately 29%[188] - Cash paid for income taxes, net of refunds received, was $87, significantly lower than $2.398 million for the same period in 2019[188] Inventory and Expenses - Inventory levels rose significantly to $19,606,000 as of June 30, 2020, compared to $6,230,000 at December 31, 2019, marking an increase of 215.5%[19] - Operating expenses for the three months ended June 30, 2020, were $46,744,000, up from $30,815,000 in the same period of 2019, an increase of 51.7%[23] - The company recorded a loss on lease terminations of $7.8 million and wrote off $3.1 million in deferred rent income related to terminated leases[85] Segment Performance - The company operates in two segments: Wholesale and Retail, with the Wholesale segment focusing on fuel distribution and the Retail segment on fuel sales and convenience merchandise[176] - The Retail segment generated revenues of $161.1 million for the three months ended June 30, 2020, compared to $142.6 million in the same period of 2019, representing an increase of approximately 12.9%[180] - Revenues from fuel sales to external customers in the Wholesale segment were $219.3 million for the three months ended June 30, 2020, down from $442.4 million in the same period of 2019, a decline of about 50.4%[180] Debt and Financing - The revolving credit facility had an availability of $203.1 million after considering debt covenant restrictions as of June 30, 2020[101] - As of June 30, 2020, the company had a weighted-average interest rate of 2.20% on borrowings under the revolving credit facility[103] - The company entered into an interest rate swap contract with a notional amount of $150 million at a fixed rate of 0.495%, maturing on April 1, 2024[105] Other Notable Events - The company has expanded its operations to include the retail distribution of motor fuels and convenience merchandise since April 14, 2020[34] - The Partnership experienced a sharp decrease in fuel volume in mid-to-late March 2020 due to the COVID-19 pandemic, although volumes began to recover in the second quarter, remaining below historical levels[59] - The company recorded separation benefit costs totaling $0.4 million in the first quarter of 2019 related to the conversion of 46 company operated sites to dealer operated sites[192]