CrossAmerica Partners(CAPL) - 2025 Q3 - Quarterly Results

Financial Performance - CrossAmerica reported a net income of $13.6 million for Q3 2025, up from $10.7 million in Q3 2024, driven by asset sales and reduced interest expenses[4]. - Adjusted EBITDA for Q3 2025 was $41.3 million, a decrease of 6% from $43.9 million in Q3 2024, primarily due to lower fuel and rent gross profit[4]. - Distributable Cash Flow increased to $27.8 million in Q3 2025, compared to $27.1 million in Q3 2024, supported by lower cash interest and capital expenditures[5]. - Operating revenues for the nine months ended September 30, 2025, were $2,796,247, a decrease of 11.3% compared to $3,154,066 in 2024[21]. - Gross profit for the nine months ended September 30, 2025, was $295,576, slightly down from $297,336 in 2024, reflecting a decrease of 0.6%[21]. - Net income for the nine months ended September 30, 2025, increased significantly to $31,641, compared to $5,592 in 2024, representing a growth of 465.5%[23]. - Total EBITDA for the nine months ended September 30, 2025, was $141.7 million, compared to $100.7 million in 2024, marking a 40.7% increase[32]. - For the three months ended September 30, 2025, net income was $13.6 million, compared to $10.7 million for the same period in 2024, representing a 27.5% increase[32]. - Adjusted EBITDA for the three months ended September 30, 2025, was $41.3 million, down from $43.9 million in 2024, indicating a decrease of 3.7%[32]. - Distributable Cash Flow for the three months ended September 30, 2025, was $27.8 million, compared to $27.1 million in 2024, reflecting a 2.6% increase[32]. - The Distribution Coverage Ratio for the three months ended September 30, 2025, was 1.39x, slightly up from 1.36x in 2024[32]. Asset Management - CrossAmerica completed asset sales totaling approximately $22 million in Q3 2025, contributing to a net gain of $7.4 million[3][11]. - CrossAmerica recorded $7.4 million in net gains from real estate rationalization efforts during the three months ended September 30, 2025[36]. - As of September 30, 2025, total assets were $998.9 million, a decrease from $1,114.7 million at the end of 2024[19]. Segment Performance - Retail segment gross profit decreased by 4% to $80.0 million in Q3 2025, while wholesale segment gross profit fell by 10% to $24.8 million[6][10]. - Same-store merchandise sales excluding cigarettes rose by 4% to $75.8 million in Q3 2025, with merchandise gross profit percentage increasing to 28.9%[8]. - Total retail segment gross profit for the nine months ended September 30, 2025, was $219,271, up from $214,617 in 2024, an increase of 2.5%[24]. - Operating income for the Retail segment for the nine months ended September 30, 2025, was $66,099, down from $70,631 in 2024, a decrease of 6.4%[24]. - Total motor fuel distribution sites decreased to 988 as of September 30, 2025, from 1,046 in 2024, a reduction of 5.5%[26]. - Volume of gallons distributed in the Wholesale segment for the nine months ended September 30, 2025, was 519,821, down from 563,082 in 2024, a decrease of 7.7%[26]. - Margin per gallon in the Wholesale segment for the nine months ended September 30, 2025, was $0.090, compared to $0.085 in 2024, an increase of 5.9%[26]. Cost Management - Operating expenses declined by 5% from $60.8 million in Q3 2024 to $57.5 million in Q3 2025, reflecting cost management efforts[4]. - Cash flows from operating activities for the nine months ended September 30, 2025, were $62,065, down from $76,672 in 2024, a decrease of 18.9%[23]. - Cash interest expense for the three months ended September 30, 2025, was $11.3 million, down from $13.7 million in 2024, a decrease of 17.5%[32]. Leverage and Financing - Leverage ratio improved to 3.56 times as of September 30, 2025, down from 4.36 times at the end of 2024[4][12]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $125,903, compared to $47,335 in 2024, indicating a significant increase in cash outflows[23]. Company Overview - CrossAmerica operates approximately 1,600 locations and owns or leases around 1,000 sites across 34 states[33]. - The company has established relationships with major oil brands, including ExxonMobil, BP, and Shell, ranking among the top distributors by fuel volume in the U.S.[33].