
Financial Performance - For Q1 2025, the company reported net income of $53.2 million, or $2.63 per diluted share, on revenue of $4.5 billion, compared to net income of $66.0 million, or $3.12 per diluted share, on revenue of $4.8 billion in Q1 2024[155]. - Revenues for Q1 2025 decreased by $0.3 billion, or 6.6%, primarily due to a 6.0% decline in retail fuel sales prices and a decrease in fuel sales volumes[156]. - Net income in Q1 2025 decreased by $6.4 million to $79.1 million compared to Q1 2024, primarily due to higher store operating expenses and depreciation[170]. - EBITDA for Q1 2025 was $155.6 million, down from $164.3 million in Q1 2024, reflecting the decrease in net income and increased depreciation[178]. Fuel and Merchandise Sales - Total fuel contribution was 25.4 cents per gallon in Q1 2025, up from 24.8 cents per gallon in Q1 2024, while retail fuel volumes decreased by 1.9%[146]. - Total fuel contribution for Q1 2025 was $287.3 million, an increase of $1.2 million or 0.4% from Q1 2024, driven by higher retail fuel contribution despite lower fuel volumes sold[171]. - Total merchandise sales were approximately $999.4 million in Q1 2025, a decrease of $1.3 million compared to Q1 2024, while total merchandise contribution improved by 2.2%[172]. - Retail fuel margins increased by 9.2% to 23.7 cents per gallon in Q1 2025 compared to 21.7 cents per gallon in Q1 2024[171]. Operating Expenses - Store and other operating expenses increased by $14.0 million, or 5.6%, in Q1 2025, primarily due to higher employee-related expenses and maintenance costs[157]. - SG&A expenses in Q1 2025 were $2.0 million lower than in Q1 2024, mainly due to reduced professional fees and employee-related costs[174]. Capital Expenditures and Financing - The company anticipates total capital expenditures for the full year 2025 to range from approximately $450 million to $500 million, primarily funded through operating cash flow[149]. - Cash required by investing activities increased to $87.7 million in Q1 2025 from $74.9 million in Q1 2024, primarily due to higher capital expenditures[183]. - Financing activities in Q1 2025 required cash of $38.4 million, a decrease of $83.8 million from $122.2 million in Q1 2024, with share repurchases increasing to $150.0 million from $86.4 million[184]. Debt and Interest Rates - As of March 31, 2025, total long-term debt was $1,974.2 million, up from $1,832.7 million at December 31, 2024[188]. - The company has a senior secured term loan of $600 million and a revolving credit facility of $750 million as part of its credit agreement[194]. - The effective interest rate for the term loan was 6.21% as of March 31, 2025, down from 6.44% at December 31, 2024[188]. - A 10% increase or decrease in interest rates would have an immaterial impact on the company's financial statements as of March 31, 2025[209]. Dividends - Cash dividend payments increased to $0.49 per share totaling $9.8 million in Q1 2025, up from $0.42 per share totaling $8.8 million in Q1 2024, with a targeted double-digit growth in dividends over time[185]. - The Board of Directors declared a quarterly cash dividend of $0.50 per share, annualized to $2.00, payable on June 2, 2025[186]. Market Risks and Hedging - The company is exposed to market risks related to the volatility in the price of refined products, which can affect revenues and operating costs[207]. - As of March 31, 2025, the company had short-term commodity derivative contracts in place to hedge the purchase price of refined products, with a 10% change in benchmark prices being immaterial to the company[208]. - The company utilizes limited interest rate swaps to hedge a portion of its exposure to interest rate fluctuations[209]. - The acquisition of interest rate derivatives is managed by senior management with delegated authority from the Board level committee[209].