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CrossAmerica Partners LP (CAPL)

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Previous Close17.40
Open17.43
Bid17.00 x 800
Ask17.60 x 800
Day's Range17.18 - 17.65
52 Week Range6.81 - 19.79
Volume26,593
Avg. Volume41,237
Market Cap668.37M
Beta (5Y Monthly)2.23
PE Ratio (TTM)6.30
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield2.10 (11.90%)
Ex-Dividend DateNov 02, 2020
1y Target EstN/A
  • CrossAmerica Partners LP Reports Third Quarter 2020 Results and Announces Appointment of New Chief Financial Officer
    GlobeNewswire

    CrossAmerica Partners LP Reports Third Quarter 2020 Results and Announces Appointment of New Chief Financial Officer

    Allentown, Nov. 04, 2020 (GLOBE NEWSWIRE) -- CrossAmerica Partners LP Reports Third Quarter 2020 Results and Announces Appointment of New Chief Financial Officer * Reported Third Quarter 2020 Operating Income of $23.7 million and Net Income of $21.2 million compared to Operating Income of $12.3 million and Net Income of $7.2 million for the Third Quarter 2019 * Generated Third Quarter 2020 Adjusted EBITDA of $30.0 million and Distributable Cash Flow of $29.7 million compared to Third Quarter 2019 Adjusted EBITDA of $29.0 million and Distributable Cash Flow of $25.7 million * Reported Third Quarter 2020 Gross Profit for the Wholesale Segment of $42.8 million compared to $36.2 million of Gross Profit for the Third Quarter 2019 * Reported Third Quarter 2020 Gross Profit for the Retail Segment of $19.5 million compared to $4.9 million of Gross Profit for the Third Quarter 2019 * Distributed 327.4 million wholesale fuel gallons during the Third Quarter 2020 at an average wholesale fuel margin per gallon of 9.4 cents * The Distribution Coverage Ratio for the current quarter was 1.50 times compared to 1.42 times for the comparable period of 2019. The Distribution Coverage Ratio was 1.24 times for the trailing twelve months ended September 30, 2020, as compared to 1.14 times for the trailing twelve months ended September 30, 2019 * The Board of Directors of CrossAmerica’s General Partner declared a quarterly distribution of $0.5250 per limited partner unit attributable to the Third Quarter 2020  * Announced appointment of Eric Javidi as Chief Financial Officer, effective November 5, 2020              Allentown, PA November 4, 2020 – CrossAmerica Partners LP (NYSE: CAPL) (“CrossAmerica” or the “Partnership”), a leading wholesale fuels distributor, convenience store operator, and owner and lessor of real estate used in the retail distribution of motor fuels, today reported financial results for the third quarter ended September 30, 2020.“As with last quarter, our operating results demonstrate the durability of our business model and validate the strategic actions we took earlier in the year.  Our newly acquired assets added meaningfully to our results this quarter and our overall financial position continues to be strong,” said Charles Nifong, CEO and President of CrossAmerica. “This quarter, we executed the final asset exchange transaction with Circle K, which positions the Partnership to now focus on future opportunities. Although COVID 19 continues to impact the business, we saw an overall improved operating environment in the quarter relative to the second quarter.”Third Quarter ResultsConsolidated ResultsOperating income was $23.7 million for the third quarter 2020 compared to $12.3 million achieved in the third quarter 2019. Net income was $21.2 million or $0.56 per diluted common unit for the third quarter 2020, compared to Net income of $7.2 million or $0.20 per diluted common unit for the same period in 2019. Adjusted EBITDA was $30.0 million for the third quarter 2020, a 3% increase when compared to $29.0 million for the same period in 2019. The increases in Operating and Net income and Adjusted EBITDA were primarily driven by the positive impact from all the transactions completed over the past year, partially offset by the impact of the COVID-19 Pandemic. During the three months ended September 30, 2020, Operating and Net income also benefited from $11.4 million in gains related to properties sold in asset exchanges with Circle K along with $2.2 million in gains in connection with the Partnership’s ongoing real estate rationalization effort.Non-GAAP measures used in this release include EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. These Non-GAAP measures are further described and reconciled to their most directly comparable GAAP measures in the Supplemental Disclosure Regarding Non-GAAP Financial Measures section of this release.Wholesale SegmentDuring the third quarter 2020, CrossAmerica’s Wholesale segment generated $42.8 million in gross profit compared to $36.2 million in gross profit for the third quarter 2019, representing an increase of 18%. The Partnership distributed, on a wholesale basis, 327.4 million gallons of motor fuel at an average wholesale gross profit of $0.094 per gallon, resulting in motor fuel gross profit of $30.7 million. For the three-month period ended September 30, 2019, CrossAmerica distributed, on a wholesale basis, 260.3 million gallons of fuel at an average wholesale gross profit of $0.080 per gallon, resulting in motor fuel gross profit of $20.8 million. The 47% increase in motor fuel gross profit was driven by a 26% increase in fuel volume distributed and an 18% increase in fuel margin per gallon. The main drivers of the volume increase were the asset exchanges with Circle K, the CST Fuel Supply Exchange and the acquisition of retail and wholesale assets, partially offset by the impact of the COVID-19 Pandemic. The increase in fuel margin per gallon was primarily driven by dealer tank wagon (DTW) margins resulting from a favorable price environment in the quarter and an increase in overall DTW volume. With the acquisition of retail and wholesale assets earlier this year, in addition to an overall increase in wholesale volume, the percentage of variable-priced business has increased from 18% of the gallons sold to CrossAmerica’s customers for the third quarter 2019 to 28% of the gallons sold to its customers for the third quarter 2020. This increase was partially offset by lower terms discounts as a result of lower crude prices.The prices paid by the Partnership to its motor fuel suppliers for wholesale motor fuel (which affects the cost of sales) are highly correlated to the price of crude oil. The average daily spot price of West Texas Intermediate crude oil during the third quarter 2020 was $40.89 per barrel, a 27% decrease, as compared to the average daily spot price of $56.34 per barrel during the same period in 2019. CrossAmerica’s gross profit from Rent for the Wholesale segment was $11.9 million for the third quarter 2020 compared to $14.3 million for the third quarter 2019, representing a decrease of 17%. The decrease in rent was primarily driven by terminating leases at sites the Partnership previously leased to other parties but now operates itself as part of the acquisition of retail and wholesale assets earlier this year, partially offset by the impact of the conversion of 46 company operated sites to dealer operated sites in the third quarter 2019 and the CST Fuel Supply Exchange.   Operating income for the Wholesale segment was $34.5 million for the third quarter 2020 compared to $31.5 million for the same period in 2019, an increase of 9%. As discussed above, the year-over-year increase was primarily driven by an increase in motor fuel gross profit, partially offset by the decrease in rent margin discussed above and the decrease in income from CST Fuel Supply as a result of the CST Fuel Supply Exchange.Retail SegmentFor the third quarter 2020, the Retail Segment reported motor fuel gross profit of $3.5 million. For the same period in 2019, CrossAmerica generated motor fuel gross profit of $1.2 million. The $2.2 million or 180% increase in motor fuel gross profit is attributable to a 119% increase in volume driven by the increase in company operated and commission sites as a result of the April 2020 acquisition of retail and wholesale assets and the March 2020 CST Fuel Supply Exchange, partially offset by the conversion of 46 company operated sites to dealer operated sites in the third quarter 2019 and the impact of the COVID-19 Pandemic. In addition, CrossAmerica realized a 28% higher average margin per gallon as the higher retail fuel margins at its company operated sites comprised a larger percentage of the overall retail fuel margins in 2020 as compared to 2019.Merchandise gross profit increased $10.3 million, rent gross profit increased $0.3 million or 17% and operating expenses increased $14.8 million due to the factors listed above. Excluding rent expense, operating expenses at CrossAmerica’s company operated sites increased $11.5 million. The average company operated site count increased by 123 sites and the operating expenses on a per-store basis decreased 4% relative to the third quarter 2019. Additionally, a greater percentage of the Partnership’s company operated sites are leased than in the prior year, and so the rent component of operating expenses at the company operated sites increased $3.3 million.Operating income for the Retail segment was $0.3 million for the third quarter 2020 compared to $0.5 million for the third quarter 2019, primarily as a result of changes in operations noted above.Distributable Cash Flow and Distribution Coverage RatioDistributable Cash Flow was $29.7 million for the three-month period ended September 30, 2020, compared to $25.7 million for the same period in 2019. The 16% increase in Distributable Cash Flow was primarily due to the increase in operating income in the Wholesale Segment and a decrease in cash interest. Both periods benefited from a current tax benefit related primarily to bonus depreciation on eligible assets acquired in the asset exchanges and capital expenditures. The Distribution Coverage Ratio for the current quarter was 1.50 times compared to 1.42 times for the third quarter 2019. The Distribution Coverage Ratio was 1.24 times for the trailing twelve months ended September 30, 2020, as compared to 1.14 times for the trailing twelve months ended September 30, 2019 (see Supplemental Disclosure Regarding Non-GAAP Financial Measures section of this release).Liquidity and Capital ResourcesAs of October 29, 2020, after taking into consideration debt covenant restrictions, approximately $235 million was available for future borrowings under the Partnership’s revolving credit facility, an increase of $32 million and $143 million, respectively, in availability compared to June 30, 2020 and December 31, 2019. As of September 30, 2020, CrossAmerica had $507.5 million outstanding under its revolving credit facility. Leverage, as defined under CrossAmerica’s credit facility, was 3.83 times as of September 30, 2020, compared to 3.96 times as of June 30, 2020 and 4.70 times as of December 31, 2019.DistributionsOn October 22, 2020, the Board of the Directors of CrossAmerica’s General Partner (“Board”) declared a quarterly distribution of $0.5250 per limited partner unit attributable to the third quarter 2020. As previously announced, the distribution will be paid on November 10, 2020 to all unitholders of record as of November 3, 2020. The amount and timing of any future distributions is subject to the discretion of the Board as provided in CrossAmerica’s Partnership Agreement.Completion of Asset Exchange Transactions with Circle KOn December 17, 2018, CrossAmerica and Circle K announced an agreement to exchange assets in a series of transactions. During the third quarter 2020, the two entities completed the sixth and final asset exchange as outlined below:         ·On September 15, 2020, the sixth exchange was completed and entailed Circle K transferring to the Partnership 23 (17 fee; 6 leased) U.S. company-operated convenience and fuel retail stores having an aggregate value of approximately $20.4 million, and the Partnership transferred to Circle K the real property for four of the CrossAmerica properties having an aggregate value of approximately $20.0 million. As the sixth exchange was the final exchange contemplated by the Asset Exchange Agreement, Circle K also transferred a $6.7 million cash payment to the Partnership in connection with the closing, in accordance with the terms of the Asset Exchange Agreement.Divestment of AssetsDuring the third quarter 2020, CrossAmerica, as part of its ongoing real estate rationalization effort, divested a total of seven properties, and received $3.8 million in connection with these sales. Through the first nine months ended September 30, 2020, CrossAmerica has sold 20 properties and received $13.3 million in proceeds. Appointment of Eric Javidi as Chief Financial Officer The Board appointed Mr. Javidi as Chief Financial Officer of the partnership effective November 5, 2020.  Jon Benfield, the Interim Chief Financial Officer, will remain with the partnership and was appointed Chief Accounting Officer, effective November 5, 2020. Mr. Javidi was most recently President and CEO of Southcross Holdings L.P. Prior to joining Southcross Holdings, he was a Managing Director at Kayne Anderson Capital Advisors, L.P., where he was primarily focused on investments within the energy infrastructure space. Prior to joining Kayne Anderson, Mr. Javidi held positions as an investment banker with UBS, Barclays and Lehman Brothers, focused on the global energy industry.“It is an honor to welcome Eric to the CrossAmerica team as our new CFO,” said Charles Nifong, President & Chief Executive Officer of CrossAmerica. “Eric has a solid record of achievement and brings to the partnership strong leadership and a wealth of financial and strategic acumen. I also thank Jon Benfield for his tremendous efforts in the interim CFO role during a challenging period.  He did an outstanding job. With Eric and Jon in their new roles, the financial function of the partnership, and the partnership overall, is well positioned for future success.”Eric Javidi stated; “It is an exciting time to join CrossAmerica.  The Partnership has made significant strategic progress over the past year; I look forward to building on that momentum and delivering value to the unitholders.”Conference CallThe Partnership will host a conference call on November 5, 2020 at 9:00 a.m. Eastern Time to discuss third quarter 2020 earnings results. The conference call numbers are 800-774-6070 or 630-691-2753 and the passcode for both is 7265208. A live audio webcast of the conference call and the related earnings materials, including reconciliations of non-GAAP financial measures to GAAP financial measures and any other applicable disclosures, will be available on that same day on the investor section of the CrossAmerica website (www.crossamericapartners.com). A slide presentation for the conference call will also be available on the investor section of the Partnership’s website. To listen to the audio webcast, go to https://caplp.gcs-web.com/webcasts-presentations.  After the live conference call, an archive of the webcast will be available on the investor section of the CrossAmerica website at https://caplp.gcs-web.com/webcasts-presentations within 24 hours after the call for a period of sixty days.CROSSAMERICA PARTNERS LP CONSOLIDATED BALANCE SHEETS (Thousands of Dollars, except unit data)  September 30,  December 31,    2020  2019    (Unaudited)      ASSETS         Current assets:         Cash and cash equivalents $1,328  $1,780  Accounts receivable, net of allowances of $992 and $557, respectively  35,302   38,051  Accounts receivable from related parties  2,960   4,299  Inventory  22,368   6,230  Assets held for sale  17,093   13,231  Other current assets  9,180   5,795  Total current assets  88,231   69,386  Property and equipment, net  565,288   565,916  Right-of-use assets, net  171,006   120,767  Intangible assets, net  97,599   44,996  Goodwill  88,764   88,764  Other assets  19,325   21,318  Total assets $1,030,213  $911,147            LIABILITIES AND EQUITY         Current liabilities:         Current portion of debt and finance lease obligations $2,585  $2,471  Current portion of operating lease obligations  32,437   23,485  Accounts payable  71,384   57,392  Accounts payable to related parties  4,298   431  Accrued expenses and other current liabilities  21,905   16,382  Motor fuel and sales taxes payable  20,627   12,475  Total current liabilities  153,236   112,636  Debt and finance lease obligations, less current portion  522,050   534,859  Operating lease obligations, less current portion  143,939   100,057  Deferred tax liabilities, net  15,410   19,369  Asset retirement obligations  41,015   35,589  Other long-term liabilities  34,488   30,240  Total liabilities  910,138   832,750            Commitments and contingencies                   Equity:         Common units—(37,868,046 and 34,494,441 units issued and    outstanding at September 30, 2020 and December 31, 2019, respectively)  123,076   78,397  Accumulated other comprehensive loss  (3,001)  —  Total equity  120,075   78,397  Total liabilities and equity $1,030,213  $911,147  CROSSAMERICA PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands of Dollars, Except Unit and Per Unit Amounts) (Unaudited)  Three Months Ended September 30,  Nine Months Ended September 30,    2020  2019  2020  2019  Operating revenues(a) $591,022  $559,736  $1,381,119  $1,637,050  Costs of sales(b)  528,750   518,591   1,225,470   1,517,458  Gross profit  62,272   41,145   155,649   119,592                    Income from CST Fuel Supply equity interests  —   3,927   3,202   11,087  Operating expenses:                 Operating expenses  27,508   12,978   63,328   42,541  General and administrative expenses  5,363   3,937   15,440   12,464  Depreciation, amortization and accretion expense  18,590   14,063   51,867   39,620  Total operating expenses  51,461   30,978   130,635   94,625  Gain (loss) on dispositions and lease terminations, net  12,881   (1,745)  79,237   (2,173) Operating income  23,692   12,349   107,453   33,881  Other income, net  143   168   358   352  Interest expense  (3,522)  (6,532)  (13,183)  (21,105) Income before income taxes  20,313   5,985   94,628   13,128  Income tax benefit  (892)  (1,180)  (3,868)  (690) Net income  21,205   7,165   98,496   13,818  IDR distributions  —   (133)  (133)  (399) Net income available to limited partners $21,205  $7,032  $98,363  $13,419                    Basic and diluted earnings per common unit $0.56  $0.20  $2.64  $0.39                    Weighted-average limited partner units:                 Basic common units  37,867,647   34,453,162   37,202,087   34,447,185  Diluted common units (c)  37,868,610   34,464,027   37,202,087   34,447,723                    Supplemental information:                 (a) Includes excise taxes of: $47,222  $21,292  $95,929  $61,642  (a) Includes rent income of:  19,747   22,921   62,859   66,519  (b) Includes rent expense of:  6,036   7,003   19,088   20,475  (c) Diluted common units were not used in the calculation of diluted earnings per common unit for the nine months ended       September 30, 2020 because to do so would have been antidilutive.  CROSSAMERICA PARTNERS LP CONSOLIDATED STATEMENTS OF CASH FLOWS (Thousands of Dollars) (Unaudited)  Nine Months Ended September 30,    2020  2019  Cash flows from operating activities:         Net income $98,496  $13,818  Adjustments to reconcile net income to net cash provided by    operating activities:         Depreciation, amortization and accretion expense  51,867   39,620  Amortization of deferred financing costs  781   776  Credit loss expense  1,014   259  Deferred income tax (benefit) expense  (4,047)  4,099  Equity-based employee and director compensation expense  83   547  (Gain) loss on dispositions and lease terminations, net  (87,225)  2,173  Changes in operating assets and liabilities, net of acquisitions  25,534   8,210  Net cash provided by operating activities  86,503   69,502            Cash flows from investing activities:         Principal payments received on notes receivable  246   803  Proceeds from sale of assets to Circle K  23,049   3,148  Proceeds from sale of property and equipment  13,757   1,000  Capital expenditures  (24,439)  (18,398) Cash paid in connection with acquisitions, net of cash acquired  (28,244)  —  Net cash used in investing activities  (15,631)  (13,447)           Cash flows from financing activities:         Borrowings under the revolving credit facility  159,098   68,442  Repayments on the revolving credit facility  (170,580)  (62,442) Payments of long-term debt and finance lease obligations  (1,830)  (1,708) Payment of deferred financing costs  —   (3,441) Distributions paid on distribution equivalent rights  (8)  (63) Distributions paid to holders of the IDRs  (133)  (399) Distributions paid on common units  (57,871)  (54,250) Net cash used in financing activities  (71,324)  (53,861) Net (decrease) increase in cash and cash equivalents  (452)  2,194  Cash and cash equivalents at beginning of period  1,780   3,191  Cash and cash equivalents at end of period $1,328  $5,385  Segment ResultsWholesaleThe following table highlights the results of operations and certain operating metrics of the Wholesale segment (thousands of dollars, except for the number of distribution sites and per gallon amounts):   Three Months Ended September 30,  Nine Months Ended September 30,    2020  2019  2020  2019  Gross profit:                 Motor fuel–third party $15,505  $13,392  $40,722  $32,805  Motor fuel–intersegment and related party  15,181   7,451   38,023   21,844  Motor fuel gross profit  30,686   20,843   78,745   54,649  Rent gross profit  11,853   14,331   38,244   41,530  Other revenues  290   990   1,705   2,319  Total gross profit  42,829   36,164   118,694   98,498  Income from CST Fuel Supply equity interests(a)  —   3,927   3,202   11,087  Operating expenses  (8,329)  (8,572)  (26,912)  (24,098) Operating income $34,500  $31,519  $94,984  $85,487  Motor fuel distribution sites (end of period):(b)                 Motor fuel–third party                 Independent dealers(c)  683   370   683   370  Lessee dealers(d)  667   662   667   662  Total motor fuel distribution–third party sites  1,350   1,032   1,350   1,032  Motor fuel–intersegment and related party                 DMS (related party)(e)  —   68   —   68  Circle K(f)  5   28   5   28  Commission agents (Retail segment)(g)  211   169   211   169  Company operated retail sites (Retail segment)(h)  149   —   149   0  Total motor fuel distribution–intersegment    and related party sites  365   265   365   265  Motor fuel distribution sites (average during the    period):                 Motor fuel-third party distribution  1,345   965   1,253   909  Motor fuel-intersegment and related party    distribution  364   302   327   336  Total motor fuel distribution sites  1,709   1,267   1,580   1,245  Volume of gallons distributed (in thousands)                 Third party  242,826   188,261   613,250   514,058  Intersegment and related party  84,541   72,026   195,008   236,064  Total volume of gallons distributed  327,367   260,287   808,258   750,122                    Wholesale margin per gallon $0.094  $0.080  $0.097  $0.073  (a)      Represents income from CrossAmerica’s equity interest in CST Fuel Supply. (b)      In addition, as of September 30, 2020 and 2019, CrossAmerica distributed motor fuel to 14 and 13 sub-wholesalers who distributed to additional sites, respectively. (c)      The increase in the independent dealer site count was primarily attributable to the 288 independent dealer contracts acquired in the CST Fuel Supply Exchange and the asset exchange with Circle K which resulted in 26 Circle K sites being converted to independent dealers. (d)      The increase in the lessee dealer site count was primarily attributable to the 72 lessee dealer sites acquired in the asset exchanges with Circle K, the 18 lessee dealer sites acquired in the CST Fuel Supply Exchange and converting sites operated by DMS to lessee dealer sites, partially offset by the acquisition of retail and wholesale assets that resulted in the termination of leases at 48 lessee dealer sites and the real estate rationalization effort. (e)      The decrease in the DMS site count was primarily attributable to the acquisition of retail and wholesale assets that resulted in the termination of 54 leases with DMS and conversion of DMS sites to lessee dealer sites. (f)       The decrease in the Circle K site count was primarily attributable to the asset exchange with Circle K, which resulted in 26 Circle K sites being converted to independent dealer sites. (g)      The increase in the commission site count was primarily attributable to the 37 commission sites acquired in the CST Fuel Supply Exchange. (h)      The increase in the company operated site count was primarily attributable to the 154 company operated sites from the acquisition of retail and wholesale assets.RetailThe following table highlights the results of operations and certain operating metrics of the Retail segment (thousands of dollars, except for the number of retail sites, gallons sold per day and per gallon amounts):  Three Months Ended September 30,  Nine Months Ended September 30,    2020  2019  2020  2019  Gross profit:                 Motor fuel $3,487  $1,247  $7,176  $4,683  Merchandise(a)  12,305   1,964   21,689   10,169  Rent  1,858   1,587   5,527   4,514  Other revenue(a)  1,825   131   3,046   1,507  Total gross profit  19,475   4,929   37,438   20,873  Operating expenses  (19,179)  (4,406)  (36,416)  (18,443) Operating income $296  $523  $1,022  $2,430                    Retail sites (end of period):                 Commission agents(b)  211   169   211   169  Company operated retail sites(c)  149   —   149   —  Total system sites at the end of the period  360   169   360   169                    Total system operating statistics:                 Average retail fuel sites during the period  359   196   289   219  Motor fuel sales (gallons per site per day)  2,601   2,173   2,892   2,154  Motor fuel gross profit per gallon, net of credit card    fees and commissions $0.041  $0.032  $0.040  $0.036                    Commission agents statistics:                 Average retail fuel sites during the period  209   169   196   170  Motor fuel gross profit per gallon, net of credit card    fees and commissions $0.015  $0.015  $0.015  $0.015                    Company operated retail site statistics:                 Average retail fuel sites during the period  150   27   93   48  Motor fuel gross profit per gallon, net of credit card    fees $0.066  $0.129  $0.078  $0.101  Merchandise gross profit percentage, net of credit    card fees(a)  26.6%  20.5%  26.1%  21.2% (a)      CrossAmerica reclassified revenues related to certain ancillary items such as car wash revenue, lottery commissions and ATM commissions from merchandise margin to other revenues to conform to the current year presentation, which amounted to $0.1 million and $1.5 million for the three and nine months ended September 30, 2019, respectively. This reclassification also impacted the merchandise gross profit percentages reported for the 2019 periods.    (b)      The increase in the commission site count was primarily attributable to the 37 commission sites acquired in the CST Fuel Supply Exchange. (c)      The increase in the company operated site count was primarily attributable to the 154 company operated sites from the acquisition of retail and wholesale assets.   Supplemental Disclosure Regarding Non-GAAP Financial MeasuresCrossAmerica uses the non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net income available to the Partnership before deducting interest expense, income taxes, depreciation, amortization and accretion (which includes certain impairment charges). Adjusted EBITDA represents EBITDA as further adjusted to exclude equity-based employee and director compensation expense, gains or losses on dispositions and lease terminations, net, certain discrete acquisition related costs, such as legal and other professional fees and separation benefit costs and certain other discrete non-cash items arising from purchase accounting. Distributable Cash Flow represents Adjusted EBITDA less cash interest expense, sustaining capital expenditures and current income tax expense. The Distribution Coverage Ratio is computed by dividing Distributable Cash Flow by the weighted average diluted common units and then dividing that result by the distributions paid per limited partner unit.EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are used as supplemental financial measures by management and by external users of the CrossAmerica financial statements, such as investors and lenders. EBITDA and Adjusted EBITDA are used to assess the financial performance without regard to financing methods, capital structure or income taxes and the ability to incur and service debt and to fund capital expenditures. In addition, Adjusted EBITDA is used to assess the operating performance of the CrossAmerica business on a consistent basis by excluding the impact of items which do not result directly from the wholesale distribution of motor fuel, the leasing of real property, or the day to day operations of the Partnership’s retail site activities. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are also used to assess the ability to generate cash sufficient to make distributions to the Partnership’s unitholders.CrossAmerica believes the presentation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio provides useful information to investors in assessing the financial condition and results of operations. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio should not be considered alternatives to net income or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio have important limitations as analytical tools because they exclude some but not all items that affect net income. Additionally, because EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in the industry, the Partnership’s definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.The following table presents reconciliations of EBITDA, Adjusted EBITDA, and Distributable Cash Flow to net income, the most directly comparable U.S. GAAP financial measure, for each of the periods indicated (in thousands, except for per unit amounts):  Three Months Ended September 30,  Nine Months Ended September 30,    2020  2019  2020  2019  Net income available to limited partners $21,205  $7,032  $98,363  $13,419  Interest expense  3,522   6,532   13,183   21,105  Income tax benefit  (892)  (1,180)  (3,868)  (690) Depreciation, amortization and accretion expense  18,590   14,063   51,867   39,620  EBITDA  42,425   26,447   159,545   73,454  Equity-based employee and director compensation expense  35   221   83   547  Loss (gain) on dispositions and lease terminations, net(a)  (12,881)  1,745   (79,237)  2,173  Acquisition-related costs(b)  385   538   2,578   1,943  Adjusted EBITDA  29,964   28,951   82,969   78,117  Cash interest expense  (3,261)  (6,301)  (12,401)  (20,329) Sustaining capital expenditures(c)  (745)  (466)  (1,792)  (1,229) Current income tax benefit(d)  3,784   3,561   7,452   4,789  Distributable Cash Flow $29,742  $25,745  $76,228  $61,348  Weighted-average diluted common units  37,869   34,464   37,202   34,448  Distributions paid per limited partner unit(e) $0.5250  $0.5250  $1.5750  $1.5750  Distribution Coverage Ratio(f) 1.50x  1.42x  1.30x  1.13x  1. CrossAmerica recorded gains on the sale of CAPL properties in connection with the asset exchange with Circle K of $11.4 million and $19.3 million for the three and nine months ended September 30, 2020, respectively. The Partnership also recorded gains on the sale of sites in connection with its ongoing real estate rationalization effort of $2.2 million and $4.0 million for the three and nine months ended September 30, 2020, respectively. During the nine months ended September 30, 2020, CrossAmerica recorded a $67.6 million gain on the sale of its 17.5% investment in CST Fuel Supply. Also, during the nine months ended September 30, 2020, CrossAmerica recorded a loss on lease terminations, including the non-cash write-off of deferred rent income associated with these leases, of $10.9 million. 2. Relates to certain discrete acquisition related costs, such as legal and other professional fees, separation benefit costs and certain purchase accounting adjustments associated with recently acquired businesses. 3. Under the Partnership Agreement, sustaining capital expenditures are capital expenditures made to maintain CrossAmerica’s long-term operating income or operating capacity. Examples of sustaining capital expenditures are those made to maintain existing contract volumes, including payments to renew existing distribution contracts, or to maintain CrossAmerica’s sites in conditions suitable to lease, such as parking lot or roof replacement/renovation, or to replace equipment required to operate the existing business. 4. Excludes current income tax incurred on the sale of sites. 5. On October 22, 2020, the Board approved a quarterly distribution of $0.5250 per unit attributable to the third quarter of 2020. The distribution is payable on November 10, 2020 to all unitholders of record on November 3, 2020. 6. The distribution coverage ratio is computed by dividing Distributable Cash Flow by the weighted-average diluted common units and then dividing that result by the distributions paid per limited partner unit.                 About CrossAmerica Partners LPCrossAmerica Partners LP is a leading wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly owned and controlled by entities affiliated with Joseph V. Topper, Jr., the founder of CrossAmerica Partners and a member of the board of the general partner since 2012. Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,700 locations and owns or leases approximately 1,100 sites. With a geographic footprint covering 34 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf, Citgo, Marathon and Phillips 66. CrossAmerica Partners LP ranks as one of ExxonMobil’s largest distributors by fuel volume in the United States and in the top 10 for additional brands. For additional information, please visit www.crossamericapartners.com.ContactInvestor Relations:      Randy Palmer, rpalmer@caplp.com or 210-742-8316Cautionary Statement Regarding Forward-Looking StatementsStatements contained in this release that state the Partnership’s or management’s expectations or predictions of the future are forward-looking statements. The words “believe,” “expect,” “should,” “intends,” “estimates,” “target” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see CrossAmerica’s Form 10-K or Forms 10-Q filed with the Securities and Exchange Commission, and available on CrossAmerica’s website at www.crossamericapartners.com. The Partnership undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.Note to Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100%) of CrossAmerica Partners LP’s distributions to non-U.S. investors as attributable to income that is effectively connected with a United States trade or business. Accordingly, CrossAmerica Partners LP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

  • CrossAmerica Partners LP Maintains Quarterly Distribution
    GlobeNewswire

    CrossAmerica Partners LP Maintains Quarterly Distribution

    Allentown, Oct. 22, 2020 (GLOBE NEWSWIRE) -- CrossAmerica Partners LP Maintains Quarterly Distribution ·Quarterly distribution of $0.5250 per unit attributable to the third quarter of 2020ALLENTOWN, PA (October 22, 2020) – CrossAmerica Partners LP (NYSE: CAPL) announced today that the Board of Directors of its general partner has approved a quarterly distribution of $0.5250 per unit attributable to the third quarter of 2020 (annualized $2.10 per unit). The distribution attributable to the third quarter is payable on November 10, 2020 to all unitholders of record on November 3, 2020.CrossAmerica will host a conference call on November 5th at 9:00 a.m. Eastern Time to discuss third quarter earnings results, which will be released after the market closes on Wednesday, November 4.About CrossAmerica Partners LPCrossAmerica Partners is a leading wholesale distributor of motor fuels and owner and lessor of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly owned and controlled by entities affiliated with Joseph V. Topper, Jr., the founder of CrossAmerica Partners and a member of the board of the general partner since 2012. Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,700 locations and owns or leases approximately 1,100 sites. With a geographic footprint covering 34 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf, Citgo, Marathon and Phillips 66. CrossAmerica Partners ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and in the top 10 for additional brands. For additional information, please visit www.crossamericapartners.com.Forward Looking StatementStatements contained in this release that state the Partnership’s or management's expectations or predictions of the future are forward-looking statements. The words "believe," "expect," "should," "intends," "estimates," "target," "plan" and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see CrossAmerica's Forms 10-Q or Form 10-K filed with the Securities and Exchange Commission and available on CrossAmerica's website at www.crossamericapartners.com.  The Partnership undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.Note to Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100%) of CrossAmerica Partners LP’s distributions to non-U.S. investors as attributable to income that is effectively connected with a United States trade or business. Accordingly, CrossAmerica Partners LP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.Contact – Randy Palmer, rpalmer@caplp.com or 210-742-8316

  • GlobeNewswire

    CrossAmerica Partners to Announce Third Quarter 2020 Earnings Results on November 4

    Allentown, Oct. 16, 2020 (GLOBE NEWSWIRE) -- CrossAmerica Partners to Announce Third Quarter 2020 Earnings Results on November 4ALLENTOWN, PA, October 16, 2020 – CrossAmerica Partners LP (NYSE: CAPL) today announced that it will release its third quarter 2020 results after the market closes on Wednesday, November 4, 2020. In conjunction with the news release, management will host a conference call on Thursday, November 5, at 9:00 a.m. Eastern Time.The conference call numbers are 800-774-6070 or 630-691-2753 and the passcode for both is 7265208. A live audio webcast of the conference call and the related earnings materials, including reconciliations of any non-GAAP financial measures to GAAP financial measures and any other applicable disclosures, will be available on that same day on the investor section of the CrossAmerica website (www.crossamericapartners.com).  To listen to the audio webcast, go to https://caplp.gcs-web.com/webcasts-presentations.After the live conference call, an archive of the webcast will be available on the investor section of the CrossAmerica site at https://caplp.gcs-web.com/webcasts-presentations within 24 hours after the call for a period of sixty days. About CrossAmerica Partners LPCrossAmerica Partners is a leading wholesale distributor of motor fuels and owner and lessor of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly owned and controlled by entities affiliated with Joseph V. Topper, Jr., the founder of CrossAmerica Partners and a member of the board of the general partner since 2012. Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,700 locations and owns or leases approximately 1,100 sites. With a geographic footprint covering 34 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf, Citgo, Marathon and Phillips 66. CrossAmerica Partners ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and in the top 10 for additional brands. For additional information, please visit www.crossamericapartners.com.ContactsInvestors: Randy Palmer, 210-742-8316 rpalmer@caplp.com