CrossAmerica Partners(US:CAPL)2023-11-08 18:44Financial Data and Key Metrics Changes - The company reported a net income of $12.3 million for Q3 2023, down from $27.6 million in Q3 2022, primarily due to elevated fuel margins in the prior year [29] - Adjusted EBITDA decreased to $44.2 million in Q3 2023 from $62.6 million in Q3 2022 [30] - Distributable cash flow increased to $31.4 million in Q3 2023 compared to $15.9 million in Q3 2022, although the decrease in net income was attributed to strong results in the prior year and increased cash interest expense [34] - Distribution coverage for the current quarter was 1.57 times, down from 2.55 times in Q3 2022 [35] Business Line Data and Key Metrics Changes - Retail segment gross profit was $67.6 million, with motor fuel gross profit declining 34% but merchandise gross profit increasing 23% year-over-year [26] - Inside sales on a same-site basis increased approximately 4% year-over-year, with inside sales excluding cigarettes up approximately 9% [4][6] - Wholesale fuel gross profit declined 4% to $18.8 million, driven by decreased fuel margins, while wholesale segment gross profit also decreased by 4% to $32.9 million [18][19] Market Data and Key Metrics Changes - Wholesale volume increased by 2% year-over-year to 217.3 million gallons, attributed to the acquisition of Community Service Station assets [22] - Same-store volume in the Wholesale segment was down approximately 1.2% year-over-year, with a decline continuing post-quarter end [24] - Retail same-store volume increased by 2% year-over-year, but there was a decline in the mid-single digits in the period since the quarter-end [26][27] Company Strategy and Development Direction - The company plans to continue converting additional sites from other classes of trade to company-operated retail sites, aiming to enhance profitability and long-term value [8] - The focus remains on identifying potential divestiture locations to free up capital for reducing leverage or investing in growth opportunities [31] - The company is committed to maintaining a healthy balance sheet and leverage profile to allow for opportunistic investments [40] Management's Comments on Operating Environment and Future Outlook - Management noted that the business continues to perform well across various operating environments, with strong underlying fundamentals and a healthy balance sheet [33] - The company has experienced year-over-year cost pressures in maintenance and supplies, but these have been offset by cost management efforts [37][49] - Management expressed optimism about continuing strong performance into Q4 2023 and 2024 [40] Other Important Information - The company ended the quarter with a total credit facility balance of $762.5 million, slightly up from the previous quarter [38] - The effective interest rate on the capital credit facility was 4.9%, benefiting from interest rate swaps [52] - Capital expenditures totaled $10.4 million, with $8.5 million allocated for growth-related projects [45] Q&A Session Summary Question: Were there any questions from participants? - There were no questions during the Q&A session, and participants were encouraged to reach out later if they had inquiries [41]