CrossAmerica Partners(US:CAPL)2024-05-09 18:47Financial Data and Key Metrics Changes - For Q1 2024, the company reported a net loss of $17.5 million compared to a net loss of $1 million in Q1 2023, primarily due to a $15.9 million loss on the lease termination with Applegreen and a decline in adjusted EBITDA [9][14] - Adjusted EBITDA for Q1 2024 was $23.6 million, down $8.2 million from $31.7 million in Q1 2023 [9][14] - Distributable cash flow decreased to $11.7 million in Q1 2024 from $19.1 million in Q1 2023 [9][14] Business Line Data and Key Metrics Changes - Wholesale segment gross profit declined 14% to $27 million in Q1 2024 from $31.2 million in Q1 2023, driven by lower fuel margin, fuel volume, and rental income [2][9] - Retail segment generated $54.4 million in gross profit, a 7% increase from $50.9 million in Q1 2023, primarily due to merchandise growth [12][9] - Merchandise gross profit increased 18% to $21.4 million, with a gross profit margin percentage up approximately 30 basis points year-over-year [3][8] Market Data and Key Metrics Changes - Same-store retail volume declined 3% year-over-year, reflecting overall soft demand in the industry [3][12] - Wholesale volume was 184 million gallons in Q1 2024, down 9% from 201.9 million gallons in Q1 2023, with a significant portion of the decline attributed to site conversions [20][12] Company Strategy and Development Direction - The company is focused on increasing its exposure to retail fuel margins and overall retail business, as evidenced by the conversion of Applegreen sites to company-operated retail locations [22][21] - The company plans to optimize performance at newly converted sites and maintain a strong balance sheet while generating durable cash flows [16][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging start to the year, with Q1 typically being the weakest quarter, but expressed optimism for improvement as the year progresses into peak months [13][22] - The company noted that while financial results were soft, there were positive developments in site conversions and expense management [22][16] Other Important Information - Operating expenses increased by $6.4 million year-over-year, with a 20% increase in retail segment expenses due to a higher site count [14][15] - The company spent $6.1 million on capital expenditures in Q1 2024, with $4.5 million allocated to growth-related projects [24] Q&A Session Summary - There were no questions during the Q&A session, and participants were encouraged to reach out later for any inquiries [25]