CrossAmerica Partners(CAPL) - 2025 Q1 - Quarterly Report

Financial Performance - Operating revenues for Q1 2025 were $862.475 million, a decrease of 8.4% compared to $941.548 million in Q1 2024[13] - Gross profit increased to $89.814 million in Q1 2025, up 10.4% from $81.348 million in Q1 2024[13] - Net loss for Q1 2025 was $7.115 million, an improvement from a net loss of $17.540 million in Q1 2024, representing a 59.5% reduction in losses[13] - The company reported a basic net loss per common unit of $0.20 for Q1 2025, an improvement from $0.48 in Q1 2024[13] - For the three months ended March 31, 2025, the net loss was $7.115 million, a significant improvement from a net loss of $17.540 million in the same period of 2024, representing a reduction of approximately 59%[19] - Operating income for the three months ended March 31, 2025, was $2,001,000, compared to a loss of $(13,045,000) in the same period of 2024[86] Assets and Liabilities - Total current assets increased to $151.447 million as of March 31, 2025, compared to $118.830 million at the end of 2024, reflecting a growth of 27.5%[11] - Total liabilities stood at $1.142 billion as of March 31, 2025, slightly up from $1.139 billion at the end of 2024[11] - The company’s total assets decreased to $1.087 billion as of March 31, 2025, from $1.115 billion at the end of 2024, a decline of 2.5%[11] - Cash and cash equivalents increased significantly to $6.748 million as of March 31, 2025, compared to $3.381 million at the end of 2024, marking a 99.5% increase[11] - Accounts receivable from fuel and merchandise sales decreased to $27,380,000 as of March 31, 2025, from $30,115,000 at December 31, 2024[86] Operating Expenses and Cash Flow - Operating expenses rose to $92.850 million in Q1 2025, compared to $77.587 million in Q1 2024, indicating a 19.5% increase[13] - Net cash provided by operating activities increased to $15.047 million, compared to $5.816 million for the same period in 2024, marking an increase of approximately 158%[19] - Cash paid for interest in the first quarter of 2025 was $12,353,000, an increase from $9,925,000 in the same period of 2024[91] Capital Expenditures and Investments - The company recorded capital expenditures of $10.114 million for the three months ended March 31, 2025, compared to $6.105 million in the same period of 2024, reflecting an increase of approximately 65%[19] - The total assets held for sale increased to $41.895 million as of March 31, 2025, compared to $8.994 million as of December 31, 2024, indicating a significant rise of approximately 366%[33] - The company sold seven properties for $8.6 million during the three months ended March 31, 2025, resulting in a net gain of $5.6 million[33] Debt and Financial Covenants - Long-term debt increased to $778.000 million as of March 31, 2025, up from $767.500 million as of December 31, 2024, representing an increase of approximately 1.9%[40] - The effective interest rate on the Credit Facility was 6.1% as of March 31, 2025, with an applicable margin of 2.25%[41] - The company was in compliance with its financial covenants under the Credit Facility, with availability of $86.8 million as of March 31, 2025[42] Environmental and Other Liabilities - Environmental liabilities recorded on the balance sheet totaled $7.8 million as of March 31, 2025, down from $8.4 million at the end of 2024[63] - The company maintains insurance coverage for environmental liabilities, with indemnification assets totaling $6.1 million as of March 31, 2025[63] Revenue Segments - The wholesale segment generated revenues of $380,240,000 from fuel sales, down from $467,478,000 in the prior year, while the retail segment's revenues increased to $482,235,000 from $474,070,000[84] - Revenues from TopStar, an affiliated entity, were $8.8 million for the three months ended March 31, 2025, down from $10.7 million in 2024[48] Distributions and Tax Benefits - The company declared distributions of $0.5250 per common unit for both the quarters ended December 31, 2024, and March 31, 2025, totaling $19,981,000 and $20,001,000 respectively[78] - The effective tax benefit recorded was $3.6 million for the three months ended March 31, 2025, compared to $5.8 million in 2024, primarily due to losses incurred by corporate subsidiaries[76] Other Financial Instruments - Interest rate swap contracts with a notional amount of $150 million and fixed rates ranging from 0.298% to 4.121% are in place, with some maturing as late as March 2028[8] - The company recognized a net realized gain from interest rate swap settlements of $0.9 million for the three months ended March 31, 2025, compared to $5.1 million for the same period in 2024[45] - A net gain of $2.1 million is expected to be reclassified from accumulated other comprehensive income into interest expense over the next 12 months, subject to interest rate fluctuations[46] Concentration Risks - Approximately 79% of motor fuel was purchased from four suppliers for the three months ended March 31, 2025, indicating a concentration risk in supply[30]