CrossAmerica Partners(CAPL) - 2024 Q3 - Quarterly Results

Financial Performance - CrossAmerica reported Q3 2024 Net Income of $10.7 million, down from $12.3 million in Q3 2023, and Adjusted EBITDA of $43.9 million, slightly down from $44.2 million[1][4]. - Total operating revenues for the three months ended September 30, 2024, were $1,079,163, a decrease of 10.8% compared to $1,210,023 for the same period in 2023[16]. - Net income for the three months ended September 30, 2024, was $10,708, a decrease from $12,292 in the same period last year[16]. - Net income for the nine months ended September 30, 2024, was $5,592,000, a decrease from $25,849,000 in the same period of 2023[17]. - EBITDA for Q3 2024 increased to $48.0 million, up 10% from $43.4 million in Q3 2023[25]. - Distributable Cash Flow for Q3 2024 was $27.1 million, a decline of 13% compared to $31.4 million in Q3 2023[25]. Retail Segment Performance - Retail segment gross profit increased by 24% to $83.6 million in Q3 2024 compared to $67.6 million in Q3 2023, driven by a 26% increase in motor fuel gross profit[5][6]. - The retail segment distributed 148.4 million gallons of motor fuel in Q3 2024, a 12% increase from 132.2 million gallons in Q3 2023[6]. - Same store merchandise sales excluding cigarettes were relatively flat, with merchandise gross profit increasing by 20% to $30.5 million in Q3 2024[7]. - Total gross profit for the retail segment increased to $214,617,000 for the nine months ended September 30, 2024, compared to $184,462,000 in 2023, representing a growth of 16.3%[18]. - Operating income for the retail segment for the nine months ended September 30, 2024, was $70,631,000, up from $67,368,000 in 2023, indicating a year-over-year increase of 3.4%[18]. - The volume of gallons sold in the retail segment for the nine months ended September 30, 2024, was 413,113,000, compared to 382,049,000 in 2023, an increase of 8.1%[19]. - The average margin per gallon in the retail segment increased to $0.366 for the nine months ended September 30, 2024, compared to $0.354 in 2023, a rise of 3.4%[19]. Wholesale Segment Performance - Wholesale segment gross profit decreased by 16% to $27.6 million in Q3 2024, driven by a 14% decrease in wholesale volume distributed[9]. - Total gross profit for the wholesale segment decreased to $82,719,000 for the nine months ended September 30, 2024, down from $95,761,000 in 2023, reflecting a decline of 13.6%[20]. Expenses and Liabilities - Operating expenses for the retail segment increased by 27% to $52.2 million in Q3 2024, primarily due to the conversion of certain sites to company-operated[8]. - Current liabilities increased to $172,799 as of September 30, 2024, compared to $161,096 at December 31, 2023, mainly due to higher accounts payable[15]. - Total liabilities increased to $1,160,812 as of September 30, 2024, from $1,150,931 at December 31, 2023, reflecting higher debt obligations[15]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $76,672,000, slightly down from $78,989,000 in 2023[17]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $(26,562,000), compared to $(16,535,000) in 2023, indicating increased investment outflows[17]. Distribution and Coverage Ratios - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q3 2024, payable on November 13, 2024[12]. - Distribution Coverage Ratio for Q3 2024 was 1.36x, down from 1.57x in Q3 2023[25]. - The Distribution Coverage Ratio for the trailing twelve months ended September 30, 2024, was 1.26 times, down from 1.43 times for the comparable period in 2023[1][3]. Company Operations - The company operated 372 retail sites at the end of September 30, 2024, up from 293 sites in the same period of 2023, marking a growth of 27.0%[18]. - The company reported a total of 38,046,688 common units issued and outstanding as of September 30, 2024, compared to 37,983,154 units at December 31, 2023[15]. - CrossAmerica sold nine properties for $7.2 million in proceeds during Q3 2024, resulting in a net gain of $5.3 million[10]. - CrossAmerica recorded a $16.0 million loss on lease terminations during the nine months ended September 30, 2024[26]. - The company incurred $2.3 million in other losses on lease terminations and asset disposals during the nine months ended September 30, 2024[26]. - CrossAmerica's sustaining capital expenditures are aimed at maintaining long-term operating income and capacity[26]. - The company distributed fuel to approximately 1,600 locations and owns or leases around 1,100 sites across 34 states[27]. - CrossAmerica is one of ExxonMobil's largest distributors by fuel volume in the United States[27].