CrossAmerica Partners(CAPL) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q3 2020, adjusted EBITDA was $30 million, a 3% increase compared to Q3 2019 [21] - Distributable cash flow for Q3 2020 was $29.7 million, reflecting a 16% year-over-year increase from $25.7 million in Q3 2019 [21] - Distribution coverage on a paid basis improved to 1.50x, up approximately 5% from 1.42x in Q3 2019 [22] Business Line Data and Key Metrics Changes - Wholesale fuel volume increased by 26% year-over-year, driven by acquisitions and exchanges, despite COVID-19 impacts [9] - Wholesale fuel gross profit rose by 47% year-over-year, attributed to increased fuel margin per gallon [9] - Rental gross profit decreased by 14% year-over-year to $13.7 million due to lease terminations related to acquisitions [12] Market Data and Key Metrics Changes - Same-site year-over-year volume performance showed improvement, with recent weeks reflecting mid- to high single-digit declines compared to the prior year [10] - Inside store sales at company-operated sites remained strong, with year-over-year increases in the high single digits [13] Company Strategy and Development Direction - The company completed its sixth and final asset exchange with Circle K, receiving 23 properties and a cash payment of $6.7 million [16] - The company continues to pursue real estate optimization, having divested seven properties for $3.8 million during the quarter [17][18] - Growth-related capital expenditures increased due to dispenser EMV upgrades and site rebranding, funded by real estate optimization [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing impacts of COVID-19 but noted improvements in volume and margins [6][9] - The company expressed confidence in its positioning as it navigates a challenging environment, highlighting improved coverage and leverage ratios [29] Other Important Information - Eric Javidi was appointed as Chief Financial Officer, bringing extensive experience in the energy industry [7][8] - The company reported a leverage ratio of 3.83x, improved from 3.96x as of June 30, 2020 [25] Summary of Q&A Session - No questions were recorded during the Q&A session, as participants appeared to be focused on external events [29][30]