CrossAmerica Partners(US:CAPL)2023-08-07 16:00Financial Performance - Net income for the six months ended June 30, 2023, was $13.6 million, a decrease of 28.8% compared to $19.0 million for the same period in 2022[77]. - Total revenues from TopStar for the three months ended June 30, 2023, were $13.2 million, down from $22.7 million in 2022, representing a decline of 42.9%[70]. - Cash flows from operating activities provided $47.3 million for the six months ended June 30, 2023, compared to $54.7 million in 2022, reflecting a decrease of 13.5%[77]. - The company incurred capital expenditures of $11.3 million for the six months ended June 30, 2023, down from $16.4 million in 2022, a reduction of 30.9%[77]. - Total revenues for the three months ended June 30, 2023, were $1,145,396, a decrease of 22.4% compared to $1,475,033 for the same period in 2022[152]. - Revenues from fuel sales to external customers for the six months ended June 30, 2023, were $1,961,121, down 17.7% from $2,380,612 in the same period of 2022[152]. - Operating income for the three months ended June 30, 2023, was $27,853, compared to $21,072 for the same period in 2022, reflecting an increase of 32.3%[152]. Expenses and Liabilities - Rent expense under lease agreements with the Topper Group was $2.6 million for the three months ended June 30, 2023, consistent with the same period in 2022[71]. - The company distributed $7.7 million to the Topper Group related to its ownership of common units for the three months ended June 30, 2023, unchanged from 2022[90]. - Environmental liabilities recorded on the balance sheet totaled $7.2 million and $7.5 million at June 30, 2023 and December 31, 2022, respectively[98]. - Indemnification assets related to third-party escrow funds totaled $4.9 million and $5.2 million at June 30, 2023 and December 31, 2022, respectively[98]. - Income tax expense for the three months ended June 30, 2023 was $2.8 million compared to $(0.1) million for the same period in 2022[105]. Cash Flow and Financing - The effective interest rate on the CAPL Credit Facility was 5.1% as of June 30, 2023, with an applicable margin of 2.25%[64]. - As of June 30, 2023, the availability under the CAPL Credit Facility was $159.0 million after considering debt covenant restrictions[80]. - Cash paid for interest increased to $19,920 thousand in the six months ended June 30, 2023, from $12,491 thousand in the same period of 2022[135]. - The Partnership is required to maintain a Consolidated Leverage Ratio of not greater than 5.25 to 1.00 for the fiscal quarters ending in 2023[146]. - The CAPL Credit Facility prohibits cash distributions to unitholders if any event of default occurs or would result from the distribution[147]. Segment Information - The company operates in two segments: wholesale and retail, with exclusive motor fuel distribution contracts in the wholesale segment[109]. - The retail segment includes the retail sale of motor fuel and convenience merchandise, with gross profit retained by the company at commission agent sites[129]. - The Partnership's segment reporting was changed to simplify performance assessment, eliminating intersegment sales from prior reporting[150]. Inventory and Receivables - For the six months ended June 30, 2023, accounts receivable decreased by $3,554 thousand compared to a decrease of $15,125 thousand in the same period of 2022[115]. - Inventories decreased by $4,658 thousand for the six months ended June 30, 2023, compared to a decrease of $10,403 thousand in the same period of 2022[115]. - Total accounts receivable as of June 30, 2023, amounted to $35,402, an increase from $31,568 as of December 31, 2022[152]. - Receivables from fuel and merchandise sales as of June 30, 2023, were $32,683, an increase from $28,959 as of December 31, 2022[152]. Revenue Streams - Revenues from food and merchandise sales for the three months ended June 30, 2023, were $83,666, up from $73,934 in the same period of 2022, representing a growth of 13.3%[152]. - Rent income for the six months ended June 30, 2023, was $41,843, compared to $41,476 for the same period in 2022, indicating a slight increase[152]. - Other revenue for the three months ended June 30, 2023, totaled $4,957, a decrease from $5,001 in the same period in 2022[152]. Amortization and Costs - The balance of unamortized costs incurred to obtain certain contracts with customers was $10.8 million as of June 30, 2023[152]. - Amortization of costs related to contracts was $0.5 million for the three months ended June 30, 2023, compared to $0.4 million for the same period in 2022[152].