CrossAmerica Partners(US:CAPL)2020-05-09 12:51Financial Data and Key Metrics Changes - For Q1 2020, wholesale fuel volume declined by 5% compared to Q1 2019, primarily due to COVID-19 impacts [8] - Wholesale fuel gross profit increased by 35% year-over-year, driven by a 41% increase in wholesale fuel margin per gallon, which reached $0.09 [9][10] - Adjusted EBITDA for Q1 2020 was $25.3 million, an 18% increase from $21.4 million in Q1 2019 [20] - Distributable cash flow rose by 54% year-over-year to $20.4 million from $13.3 million [21] - Distribution coverage on a paid basis improved to 1.08x from 0.73x year-over-year [22] Business Line Data and Key Metrics Changes - Rental gross profit for Q1 2020 was $15.8 million, a 5% increase attributed to asset exchanges and site conversions [11] - Operating and SG&A expenses were reduced by 23%, reflecting a focus on expense control [12] Market Data and Key Metrics Changes - The decline in crude oil prices from $61 per barrel to just over $20 per barrel (a 66% drop) positively impacted variable fuel margins [10] - Same-site year-over-year volume declines were around 40%, with geographical variations; Alabama saw a 28% decline while New Jersey experienced a 58% decline [30] Company Strategy and Development Direction - The company completed acquisitions involving over 550 sites during the quarter, enhancing operational strength and providing immediate financial benefits [13][14] - The company is working to complete remaining asset exchanges from a prior agreement, with expectations to finalize in the second half of 2020 [16] - The recent retail acquisition has made 25% of the portfolio variable margin, allowing for broader acquisition opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the COVID-19 pandemic has dramatically impacted operations, with significant volume declines observed since mid-March [28] - There has been a stabilization in volumes since early April, with some moderate increases noted [30] - The company has suspended financial guidance due to the uncertainty created by COVID-19 [39] Other Important Information - The company entered into interest rate swap contracts to hedge against interest rate volatility, converting nearly 60% of variable rate borrowings to fixed rates [24][25] - The company sold six non-core properties for a total of $5 million as part of real estate optimization plans [20] Q&A Session Summary - No specific questions were recorded during the Q&A session, indicating that management addressed all concerns in their commentary [40]