CrossAmerica Partners(US:CAPL)2020-11-05 00:57Financial Performance - Operating revenues for the three months ended September 30, 2020, were $591,022,000, an increase from $559,736,000 in the same period of 2019, representing a growth of approximately 7.3%[18] - Gross profit for the three months ended September 30, 2020, was $62,272,000, compared to $41,145,000 for the same period in 2019, indicating a significant increase of 51.3%[18] - Net income for the three months ended September 30, 2020, was $21,205,000, up from $7,165,000 in the same period of 2019, reflecting a growth of 196.5%[18] - Basic and diluted earnings per common unit for the three months ended September 30, 2020, were $0.56, compared to $0.20 for the same period in 2019, showing a growth of 180%[18] - Operating income for the three months ended September 30, 2020, was $23,692 thousand, compared to $12,349 thousand for the same period in 2019, representing a significant increase[178] - Total distributions paid for the three months ended September 30, 2020, amounted to $19.887 million, up from $18.115 million in the same period of 2019, reflecting a 9.8% increase[164] - The company reported a total net income applicable to limited partners of $21.205 million for the three months ended September 30, 2020, compared to $7.032 million for the same period in 2019, marking a significant increase of 201%[164] Assets and Liabilities - Total current assets increased to $88,231,000 as of September 30, 2020, from $69,386,000 as of December 31, 2019, marking a rise of 27.1%[15] - Total assets reached $1,030,213,000 as of September 30, 2020, compared to $911,147,000 as of December 31, 2019, representing an increase of 13.1%[15] - Total liabilities increased to $910,138,000 as of September 30, 2020, from $832,750,000 as of December 31, 2019, which is an increase of 9.3%[15] - The company’s total equity as of September 30, 2020, was $120,075, reflecting a decrease from previous periods due to distributions paid and comprehensive losses[26] - As of September 30, 2020, total debt and finance lease obligations amounted to $528.154 million, a decrease from $541.630 million as of December 31, 2019, representing a reduction of approximately 2.8%[96] Cash Flow and Investments - Net cash provided by operating activities was $86,503 for the nine months ended September 30, 2020, up from $69,502 in the prior year, indicating a growth of approximately 24.5%[22] - Cash flows used in investing activities totaled $(15,631) for the nine months ended September 30, 2020, compared to $(13,447) in the same period of 2019, reflecting an increase in investment outflows[22] - Cash flows used in financing activities amounted to $(71,324) for the nine months ended September 30, 2020, compared to $(53,861) in the prior year, indicating a rise in financing costs[22] - The company reported capital expenditures of $(24,439) for the nine months ended September 30, 2020, compared to $(18,398) in the same period of 2019, showing an increase of approximately 32.8%[22] - The company recorded a net cash increase of $(452) for the nine months ended September 30, 2020, compared to an increase of $2,194 in the same period of 2019, indicating a decline in cash generation[22] Operational Highlights - The company completed the acquisition of retail and wholesale assets on April 14, 2020, expanding its operational capabilities in the retail distribution of motor fuels[30] - The company recognized gains totaling $11.4 million and $19.3 million from asset exchanges with Circle K for the three and nine months ended September 30, 2020, respectively[67] - The company completed multiple asset exchanges with Circle K, transferring properties with an aggregate fair value of approximately $11.0 million, $13.1 million, $31.5 million, and $20.4 million in various transactions throughout 2020[61][62][63][64] - The company assessed its assets for impairment due to COVID-19 and concluded that no assets were impaired as of March 31, 2020[56] - The company’s wholesale business distributed 6% of its total wholesale distribution volume to Circle K retail sites for the nine months ended September 30, 2020, down from 7% in the same period of 2019[51] Market and Sales Performance - Revenues from fuel sales to external customers for the three months ended September 30, 2020, were $522,894 thousand, down 0.4% from $526,096 thousand in the prior year[178] - Revenues from motor fuel sales to DMS for the three months ended September 30, 2020, were $0.612 million, a significant decrease from $35.308 million for the same period in 2019[109] - Revenues from motor fuel sales to Circle K for the three months ended September 30, 2020, were $26.3 million, a decrease of 35% from $40.4 million in the same period of 2019[131] - Rental income from Circle K for the three months ended September 30, 2020, was $0.9 million, down from $3.4 million in the same period of 2019, representing a decline of 74%[131] - Income from CST Fuel Supply equity interests was $3.2 million for the nine months ended September 30, 2020, compared to $11.1 million for the same period in 2019, reflecting a decrease of 71%[132] Debt and Financing - The revolving credit facility had a weighted-average interest rate of 1.91% as of September 30, 2020, with the applicable margin being 1.75%[98] - 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, to hedge against interest rate volatility[100] - The fair value of interest rate swap contracts was $3.0 million as of September 30, 2020[102] - The company had $507.5 million outstanding on its revolving credit facility as of September 30, 2020, with a weighted-average interest rate of 1.91%[344] - The company entered into interest rate swap contracts to hedge against interest rate volatility, effectively converting approximately 60% of its variable rate borrowings to a fixed rate[344] Seasonal and Economic Factors - The company’s operations are affected by seasonality, with sales volumes typically highest in the second and third quarters and lowest in the first and fourth quarters[36] - For the nine months ended September 30, 2020, the company experienced a decrease in fuel volume due to the COVID-19 pandemic, although volumes began to recover in the second and third quarters[55] - A $10 per barrel change in the price of crude oil is estimated to impact the company's annual wholesale motor fuel gross profit by approximately $2.6 million[345]