CrossAmerica Partners(CAPL)2024-02-26 16:00Financial Performance - Net income for full year 2023 was 63.7 million in 2022[24] - Net income for Q4 2023 was 17.1 million in Q4 2022[54] - Full-year net income for 2023 was 63.7 million in 2022[54] - Adjusted EBITDA for full year 2023 was 179.8 million in 2022[28] - Adjusted EBITDA for Q4 2023 was 44.3 million in Q4 2022[54] - Full-year Adjusted EBITDA for 2023 was 179.8 million in 2022[54] - Distributable Cash Flow for Q4 2023 was 33.3 million in Q4 2022[54] - Full-year Distributable Cash Flow for 2023 was 140.9 million in 2022[54] - Net cash provided by operating activities decreased 27.4% to 161.3 million in 2022[24] Fuel Margins and Volume - CrossAmerica's wholesale segment gross profit increased 1% in Q4 2023 compared to Q4 2022, driven by a 3% increase in motor fuel gross profit due to an 8% rise in fuel margin per gallon, partially offset by a 4% decline in wholesale volume distributed[1] - The retail segment sold 124.5 million gallons of retail fuel in Q4 2023, with same-store fuel volume declining 3% from 118.4 million gallons in Q4 2022 to 114.6 million gallons[4] - The retail segment's average fuel margin per gallon increased 8% from 0.415 in Q4 2023, generating 0.396 in 2022 to 128.8 million, primarily due to a 1% decrease in motor fuel gross profit[46] - Average wholesale gross profit per gallon decreased from 0.086 in 2023[46] Retail Segment Performance - For the full year 2023, CrossAmerica's retail segment gross profit increased 3%, driven by an 18% increase in merchandise revenue and a 26% increase in other revenue[5] - CrossAmerica's total retail segment sites increased from 455 at the end of 2022 to 495 at the end of 2023, with company-operated retail sites increasing from 255 to 296[6] - CrossAmerica's merchandise gross profit percentage increased from 27.5% in 2022 to 28.2% in 2023 for company-operated retail sites[6] - Merchandise gross profit and other revenue increased 19% to 253.5 million in 2023 from 4.9 million or 22% in Q4 2023 compared to Q4 2022, driven by higher retail prices and improved product margins[33] - Same store merchandise sales excluding cigarettes increased by 5% in Q4 2023 compared to Q4 2022[33] - Merchandise gross profit percentage increased from 27.5% in Q4 2022 to 28.2% in Q4 2023, primarily due to improved margins in packaged beverages and deli categories[33] - Retail segment gross profit increased by 14% in Q4 2023 compared to Q4 2022, driven by increases in motor fuel (11%) and merchandise (18%) gross profit[39] Credit Facility and Leverage - As of December 31, 2023, CrossAmerica had 125.4 million available for future borrowings as of February 22, 2024[3] - The company's leverage ratio under the CAPL Credit Facility increased from 3.7 times at the end of 2022 to 4.2 times at the end of 2023[3] - CrossAmerica's leverage ratio increased from 3.7 times in 2022 to 4.2 times in 2023[36] - Distribution Coverage Ratio for Q4 2023 was 1.80 times, compared to 1.67 times in Q4 2022[36] - Distribution Coverage Ratio improved to 1.80x in Q4 2023 from 1.67x in Q4 2022[54] Asset and Site Management - CrossAmerica entered into an agreement to acquire assets from Applegreen Midwest, LLC and Applegreen Florida, LLC, converting 59 lessee dealer sites to company-operated sites, with lease terminations expected in Q1 and Q2 2024[2] - Total assets decreased from 1,181.7 million in 2023, a decline of 6%[15] - Motor fuel distribution sites decreased 6.3% from 1,282 in 2022 to 1,201 in 2023[25] - CrossAmerica sold ten properties for 6.5 million[34] - Company-operated site count increased due to the conversion of lessee dealer and commission agent sites, primarily in Q2 2023[48] - Commission agent site count decreased due to conversions to company-operated sites, mainly in Q1 2023, offset by conversions from lessee dealer sites in Q4 2023[48] - CrossAmerica distributes fuel to approximately 1,700 locations and owns or leases approximately 1,100 sites across 34 states[55] Distributions and Cash Flow - CrossAmerica declared a quarterly distribution of 82.79 per barrel in Q4 2022 to $78.53 per barrel in Q4 2023[1]