CrossAmerica Partners LP Reports Fourth Quarter and Full Year 2024 Results

Core Insights - CrossAmerica Partners LP reported solid growth in same-store retail gallons and sales for Q4 2024, although overall financial performance did not reach the record levels of the previous year [3][4] - The company made significant progress in converting sites to its retail class of trade and divesting select locations to strengthen its long-term financial position [3][4] - Full-year results were impacted by a challenging first quarter and inflationary pressures on core retail customers, but the company remains confident in its business strength and future growth strategy [3][4] Financial Performance - Q4 2024 net income was $16.9 million, slightly up from$16.7 million in Q4 2023; full-year net income decreased to $22.5 million from$42.6 million in 2023 [4][5] - Adjusted EBITDA for Q4 2024 was $35.5 million, down from$47.6 million in Q4 2023; full-year Adjusted EBITDA decreased to $145.5 million from$165.8 million [4][5] - Distributable Cash Flow for Q4 2024 was $21.1 million, compared to$35.8 million in Q4 2023; full-year Distributable Cash Flow fell to $86.0 million from$116.7 million [4][5] Retail Segment Highlights - Retail segment gross profit for Q4 2024 was $75.1 million, a 9$69.0 million in Q4 2023; full-year gross profit increased to $289.7 million from$253.5 million [8][10] - Retail segment motor fuel gallons distributed in Q4 2024 were 141.4 million, up from 124.5 million in Q4 2023; same-store motor fuel gallons distributed increased by 2% [8][9] - Merchandise gross profit in the retail segment rose by 27% in Q4 2024, driven by an increase in site count and merchandise sales [8][10] Wholesale Segment Highlights - Wholesale segment gross profit for Q4 2024 was $25.9 million, down 22$33.0 million in Q4 2023; full-year gross profit decreased to $108.6 million from$128.8 million [13][14] - The decline in wholesale gross profit was attributed to a decrease in motor fuel and rent gross profit due to site conversions and a net loss of independent dealer contracts [13][14] - Total average site count in the wholesale segment declined by 14% year-over-year, with a 24% decrease in lessee dealer locations [13][14] Divestment Activity - In Q4 2024, CrossAmerica sold eleven sites for $17.3 million, resulting in a net gain of$11.6 million; for the full year, thirty properties were sold for $36.3 million, yielding a net gain of$23.3 million [15] Liquidity and Capital Resources - As of December 31, 2024, CrossAmerica had $767.5 million outstanding under its credit facility, with approximately$68.9 million available for future borrowings [16][17] - Leverage was reported at 4.36 times as of December 31, 2024, compared to 4.21 times a year earlier [17] Distributions - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q4 2024, paid on February 13, 2025 [18]