CrossAmerica Partners(US:CAPL)2024-05-08 22:25Financial Performance - For Q1 2024, CrossAmerica reported a total gross profit of $54.4 million, a 7% increase compared to $50.8 million in Q1 2023[4] - CrossAmerica's Adjusted EBITDA for Q1 2024 was $23.6 million, down from $31.7 million in Q1 2023[8] - The company recorded a net loss of $17.5 million in Q1 2024, compared to a net loss of $979,000 in Q1 2023[8] - Operating revenues for the three months ended March 31, 2024, were $941,548, a decrease of 7.4% from $1,016,159 in the same period of 2023[23] - Gross profit for the same period was $81,348, slightly down from $82,059, reflecting a gross margin of approximately 8.6%[23] - The net loss for the three months ended March 31, 2024, was $17,540, compared to a net loss of $979 in the same period of 2023[23] - Reported Q1 2024 Net Loss of $17.5 million, including a $15.9 million loss on lease terminations, compared to a Net Loss of $1.0 million in Q1 2023[31] - Adjusted EBITDA for Q1 2024 was $23.6 million, down from $31.7 million in Q1 2023, reflecting a decline in motor fuel gross profit due to rising crude oil prices[31][34] - Distributable Cash Flow for Q1 2024 was $11.7 million, compared to $19.1 million in Q1 2023, primarily driven by the decline in Adjusted EBITDA[31][34] Retail Segment Performance - The retail segment sold 121.7 million gallons of fuel in Q1 2024, a 2% increase from 119.1 million gallons in Q1 2023[13] - Merchandise gross profit increased by 21% year-over-year, driven by a rise in average company-operated site count and improved margins[14] - Same store merchandise sales excluding cigarettes increased by 2% in Q1 2024 compared to Q1 2023[14] - Retail Segment Gross Profit increased to $54.4 million in Q1 2024 from $50.8 million in Q1 2023, with a same store merchandise sales increase to $42.3 million[31][36][37] - Same store merchandise gross profit percentage improved to 28.1% in Q1 2024 from 27.8% in Q1 2023[37] Operating Expenses and Efficiency - Operating expenses for the retail segment rose by $7 million, or 20%, primarily due to a 22% increase in the average company-operated site count[15] - Operating expenses increased to $52.0 million in Q1 2024 from $45.6 million in Q1 2023, primarily due to the conversion of certain sites[31][34] - Cash flows from operating activities provided $5,816, down from $11,538 in the prior year, indicating a decrease in operational efficiency[25] Asset and Liability Management - Total current assets increased to $123,301 from $108,522, primarily driven by higher cash and cash equivalents, which rose to $6,278 from $4,990[21] - Total liabilities increased to $1,181,291 from $1,150,931, with a notable rise in debt and finance lease obligations, which reached $795,755[21] Distribution and Coverage Ratios - The distribution coverage ratio for Q1 2024 was 0.59x, down from 0.96x in Q1 2023[8] - CrossAmerica declared a quarterly distribution of $0.5250 per limited partner unit for Q1 2024, payable on May 10, 2024[18] - Distribution Coverage Ratio for the trailing twelve months ended March 31, 2024, was 1.37 times, down from 1.70 times for the comparable period in 2023[31][34] Strategic Acquisitions - The acquisition of assets from Applegreen involved a total consideration of $16.9 million for 59 locations, converting lessee dealer sites to company-operated sites[16] - CrossAmerica completed the conversion of 59 Applegreen lessee dealer locations to company-operated retail locations, expected to be accretive to financial results[32][43] Fuel Distribution and Volume - The average motor fuel distribution sites decreased to 1,172 from 1,271, reflecting a reduction in independent and lessee dealer counts[26] - The volume of gallons distributed was 184,025, down from 201,861, indicating a decline in sales volume[26] - Gross Profit for the Wholesale Segment in Q1 2024 was $27.0 million, a decrease of 14% from $31.2 million in Q1 2023, attributed to lower fuel margins and a decline in wholesale volume distributed[31][35]