Second Quarter 2025 Performance Overview - Retail Segment gross profit decreased by 1% to $76.127 million[6] - Retail Segment operating income decreased by 10% to $25.299 million[6] - Wholesale Segment gross profit decreased by 12% to $24.865 million[6] - Wholesale Segment operating income decreased by 15% to $17.744 million[6] - Net income increased by 103% to $25.168 million[8] - Adjusted EBITDA decreased by 13% to $37.083 million[8] - Distributable Cash Flow decreased by 14% to $22.396 million[8] Capital Management - Second quarter capital expenditures totaled $11.8 million, including $9.3 million in growth capex[13] - Credit facility balance was $727.0 million as of June 30, 2025[13] - Leverage ratio was 3.65x at June 30, 2025[13]

Core Viewpoint - CrossAmerica Partners LP reported a significant improvement in net income for Q2 2025 compared to Q2 2024, primarily due to asset sales, although overall performance remains below prior-year levels [3][4][5]. Financial Performance - Net Income for Q2 2025 was $25.2 million, up from $12.4 million in Q2 2024, reflecting a $12.7 million increase [4][5]. - Adjusted EBITDA decreased to $37.1 million in Q2 2025 from $42.6 million in Q2 2024, a decline of $5.5 million [4][5]. - Distributable Cash Flow for Q2 2025 was $22.4 million, down from $26.1 million in Q2 2024 [4][5]. - The Distribution Coverage Ratio for Q2 2025 was 1.12x, compared to 1.30x in Q2 2024 [4][5]. Segment Performance Retail Segment - Retail segment gross profit for Q2 2025 was $76.1 million, slightly down from $76.6 million in Q2 2024 [5][7]. - Motor fuel gallons distributed in the retail segment decreased to 141.7 million in Q2 2025 from 143.0 million in Q2 2024, a 1% decline [7][8]. - Merchandise gross profit increased by 2% year-over-year, with same-store merchandise sales excluding cigarettes rising by 4% [9][10]. Wholesale Segment - Wholesale segment gross profit fell to $24.9 million in Q2 2025 from $28.1 million in Q2 2024, a 12% decrease [11][12]. - Wholesale motor fuel gallons distributed decreased to 179.2 million in Q2 2025 from 192.1 million in Q2 2024, a 7% decline [11][12]. Asset Management and Divestment - CrossAmerica sold 60 properties for $64.0 million during Q2 2025, resulting in a net gain of $29.7 million [13]. - The company reduced debt by over $50 million through asset sales, strengthening its balance sheet [3][4]. Liquidity and Capital Resources - As of June 30, 2025, CrossAmerica had $727.0 million outstanding under its credit facility, down from $778.0 million at the end of 2024 [14]. - Leverage was reported at 3.65 times as of June 30, 2025, compared to 4.36 times at the end of 2024 [14]. Distributions - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q2 2025, payable on August 14, 2025 [15].

Core Insights - CrossAmerica Partners LP reported a net loss of $7.1 million for Q1 2025, an improvement from a net loss of $17.5 million in Q1 2024, indicating a challenging yet improving financial landscape for the company [4][5][6] - Adjusted EBITDA for Q1 2025 was $24.3 million, slightly up from $23.6 million in the same period last year, driven by increased gross profit in the retail segment [4][5][6] - The company continues to execute its asset rationalization strategy, enhancing its portfolio strength for future growth [3][4] Financial Performance - Net Income (Loss): Q1 2025 reported a loss of $7.1 million compared to a loss of $17.5 million in Q1 2024 [4][5] - Adjusted EBITDA: Increased to $24.3 million in Q1 2025 from $23.6 million in Q1 2024 [4][5] - Distributable Cash Flow: Decreased to $9.1 million in Q1 2025 from $11.7 million in Q1 2024 [4][5] - Distribution Coverage Ratio: Current quarter at 0.46x compared to 0.59x in Q1 2024; trailing twelve months at 1.04x compared to 1.37x [4][5] Retail Segment Highlights - Retail segment gross profit increased to $63.2 million in Q1 2025 from $54.4 million in Q1 2024, a 16% increase [7][8] - Motor fuel gallons distributed in the retail segment rose to 126.5 million from 121.7 million year-over-year [7][8] - Same-store merchandise sales excluding cigarettes decreased by 1% to $48.7 million in Q1 2025 [10] Wholesale Segment Highlights - Wholesale segment gross profit slightly decreased to $26.7 million in Q1 2025 from $27.0 million in Q1 2024 [12][13] - Motor fuel gallons distributed in the wholesale segment fell to 162.9 million from 184.0 million year-over-year [12][13] - Average wholesale gross profit per gallon increased to $0.097 from $0.079 [12][13] Asset Management and Divestment - CrossAmerica sold seven sites for $8.6 million in proceeds during Q1 2025, resulting in a net gain of $5.6 million [14] - The company is actively rationalizing its real estate assets to optimize its operational efficiency [14][6] Liquidity and Capital Resources - As of March 31, 2025, CrossAmerica had $778.0 million outstanding under its credit facility, with approximately $87.2 million available for future borrowings [15] - Leverage ratio was 4.27 times as of March 31, 2025, down from 4.36 times at the end of 2024 [15] Distribution Information - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q1 2025, to be paid on May 15, 2025 [16]