CrossAmerica Partners LP Reports Third Quarter 2021 Results
CrossAmerica Partners LP (CAPL) announced its third quarter 2021 financial results, reporting an operating income of $12.6 million and a net income of $8.9 million. This marks a decrease from $23.7 million and $21.2 million in Q3 2020, respectively. However, Adjusted EBITDA increased by 20% to $35.9 million, and Distributable Cash Flow rose to $30.4 million, demonstrating growth in operational performance despite challenges. The company distributed approximately 354.6 million gallons of fuel, showing an 8% increase in volume. Additionally, CrossAmerica closed on 98 properties from 7-Eleven, enhancing its retail footprint.
- Adjusted EBITDA rose 20% to $35.9 million from $30.0 million in Q3 2020.
- Distributable Cash Flow increased to $30.4 million, up from $29.7 million in Q3 2020.
- Gross Profit for the Wholesale Segment reached $48.2 million compared to $42.8 million in Q3 2020.
- Retail segment gross profit improved to $27.9 million, significantly up from $19.5 million in Q3 2020.
- The company distributed 354.6 million gallons of fuel, an 8% increase from the previous year.
- Operating income dropped to $12.6 million from $23.7 million year-over-year.
- Net income decreased to $8.9 million, down from $21.2 million in Q3 2020.
- Operating expenses in the Retail segment surged by 35% to $25.9 million, driven by the acquisition-related costs.
Allentown, Nov. 08, 2021 (GLOBE NEWSWIRE) --
CrossAmerica Partners LP Reports Third Quarter 2021 Results
- Reported Third Quarter 2021 Operating Income of
$12.6 million and Net Income of$8.9 million compared to Operating Income of$23.7 million and Net Income of$21.2 million for the Third Quarter 2020 - Generated Third Quarter 2021 Adjusted EBITDA of
$35.9 million and Distributable Cash Flow of$30.4 million compared to Third Quarter 2020 Adjusted EBITDA of$30.0 million and Distributable Cash Flow of$29.7 million - Reported Third Quarter 2021 Gross Profit for the Wholesale Segment of
$48.2 million compared to$42.8 million of Gross Profit for the Third Quarter 2020 - Distributed 354.6 million wholesale fuel gallons during the Third Quarter 2021 at an average wholesale fuel margin per gallon of 9.6 cents compared to 327.4 million wholesale fuel gallons at an average wholesale fuel margin per gallon of 9.4 cents during the Third Quarter 2020, an increase of
8% in gallons distributed and an increase of2% in margin per gallon - Reported Third Quarter 2021 Gross Profit for the Retail Segment of
$27.9 million compared to$19.5 million of Gross Profit for the Third Quarter 2020 - Retail segment sold 110.5 million retail fuel gallons during the Third Quarter 2021, including 49.4 million same store retail fuel gallons, a
14% increase compared to 43.2 million same store retail fuel gallons sold during the Third Quarter 2020 - The Distribution Coverage Ratio was 1.53 times for the three months ended September 30, 2021 and 1.22 times for the trailing twelve months ended September 30, 2021
- The Board of Directors of CrossAmerica’s General Partner declared a quarterly distribution of
$0.52 50 per limited partner unit attributable to the Third Quarter 2021 - Through September 30, 2021, CrossAmerica had closed on 98 properties related to the previously announced acquisition of 106 convenience store properties from 7-Eleven, Inc.
Allentown, PA November 8, 2021 – 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, 2021.
“We had another strong quarter despite continuing challenges from COVID and the crude oil price environment. As of today, we have also closed on substantially all of the assets from our 7-Eleven acquisition,” said Charles Nifong, CEO and President of CrossAmerica. “Our results this quarter reflect the benefit of these newly acquired assets as well as the positive impact of our ongoing strategic initiatives on our overall business. We remain highly focused on the successful integration of our new sites and on executing our strategic plan to further drive our profitability.”
Third Quarter Results
Consolidated Results
CrossAmerica reported Operating Income of
Adjusted EBITDA was
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 Segment
During the third quarter 2021, CrossAmerica’s Wholesale segment generated
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 2021 was
CrossAmerica’s gross profit from rent for the Wholesale segment was
Operating expenses increased
Operating income for the Wholesale segment was
Retail Segment
For the third quarter 2021, the Retail segment reported motor fuel gross profit of
The Retail segment sold 110.5 million of retail fuel gallons during the third quarter 2021, a
CrossAmerica’s merchandise gross profit and other revenues increased
Operating expenses increased
Operating income for the Retail segment was
Acquisition Activity
As of September 30, 2021, CrossAmerica had closed on 98 sites for total consideration of
Divestment of Assets
During the three and nine months ended September 30, 2021, CrossAmerica sold 14 and 23 properties for
Liquidity and Capital Resources
As of September 30, 2021, CrossAmerica had
Distributions
On October 21, 2021, the Board of the Directors of CrossAmerica’s General Partner (“Board”) declared a quarterly distribution of
Distributable Cash Flow and Distribution Coverage Ratio
Distributable Cash Flow was
Conference Call
The Partnership will host a conference call on November 9, 2021 at 9:00 a.m. Eastern Time to discuss third quarter 2021 earnings results. The conference call numbers are 800-774-6070 or 630-691-2753 and the passcode for both is 8674133#. 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, | |||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,247 | $ | 513 | ||||
| Accounts receivable, net of allowances of | 39,169 | 28,519 | ||||||
| Accounts receivable from related parties | 836 | 931 | ||||||
| Inventory | 39,552 | 23,253 | ||||||
| Assets held for sale | 3,901 | 9,898 | ||||||
| Other current assets | 18,290 | 11,707 | ||||||
| Total current assets | 109,995 | 74,821 | ||||||
| Property and equipment, net | 756,642 | 570,856 | ||||||
| Right-of-use assets, net | 170,939 | 167,860 | ||||||
| Intangible assets, net | 120,308 | 92,912 | ||||||
| Goodwill | 100,115 | 88,764 | ||||||
| Other assets | 22,006 | 19,129 | ||||||
| Total assets | $ | 1,280,005 | $ | 1,014,342 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of debt and finance lease obligations | $ | 9,923 | $ | 2,631 | ||||
| Current portion of operating lease obligations | 34,828 | 31,958 | ||||||
| Accounts payable | 85,717 | 63,978 | ||||||
| Accounts payable to related parties | 9,205 | 5,379 | ||||||
| Accrued expenses and other current liabilities | 24,527 | 23,267 | ||||||
| Motor fuel and sales taxes payable | 23,233 | 19,735 | ||||||
| Total current liabilities | 187,433 | 146,948 | ||||||
| Debt and finance lease obligations, less current portion | 795,626 | 527,299 | ||||||
| Operating lease obligations, less current portion | 141,979 | 141,380 | ||||||
| Deferred tax liabilities, net | 13,917 | 15,022 | ||||||
| Asset retirement obligations | 45,430 | 41,450 | ||||||
| Other long-term liabilities | 34,071 | 32,575 | ||||||
| Total liabilities | 1,218,456 | 904,674 | ||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
| Common units—37,891,701 and 37,868,046 units issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 61,396 | 112,124 | ||||||
| Accumulated other comprehensive income (loss) | 153 | (2,456 | ) | |||||
| Total equity | 61,549 | 109,668 | ||||||
| Total liabilities and equity | $ | 1,280,005 | $ | 1,014,342 | ||||
CROSSAMERICA PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of Dollars, Except Unit and Per Unit Amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating revenues (a) | $ | 985,122 | $ | 591,022 | $ | 2,501,740 | $ | 1,381,119 | ||||||||
| Costs of sales (b) | 909,391 | 528,750 | 2,306,047 | 1,225,470 | ||||||||||||
| Gross profit | 75,731 | 62,272 | 195,693 | 155,649 | ||||||||||||
| Income from CST Fuel Supply equity interests | — | — | — | 3,202 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Operating expenses (c) | 34,548 | 27,508 | 95,021 | 63,328 | ||||||||||||
| General and administrative expenses | 9,903 | 5,363 | 24,429 | 15,440 | ||||||||||||
| Depreciation, amortization and accretion expense | 19,118 | 18,590 | 56,732 | 51,867 | ||||||||||||
| Total operating expenses | 63,569 | 51,461 | 176,182 | 130,635 | ||||||||||||
| Gain on dispositions and lease terminations, net | 426 | 12,881 | 375 | 79,237 | ||||||||||||
| Operating income | 12,588 | 23,692 | 19,886 | 107,453 | ||||||||||||
| Other income, net | 127 | 143 | 419 | 358 | ||||||||||||
| Interest expense | (4,928 | ) | (3,522 | ) | (12,295 | ) | (13,183 | ) | ||||||||
| Income before income taxes | 7,787 | 20,313 | 8,010 | 94,628 | ||||||||||||
| Income tax benefit | (1,065 | ) | (892 | ) | (1,664 | ) | (3,868 | ) | ||||||||
| Net income | 8,852 | 21,205 | 9,674 | 98,496 | ||||||||||||
| IDR distributions | — | — | — | (133 | ) | |||||||||||
| Net income available to limited partners | $ | 8,852 | $ | 21,205 | $ | 9,674 | $ | 98,363 | ||||||||
| Basic and diluted earnings per common unit | $ | 0.23 | $ | 0.56 | $ | 0.26 | $ | 2.64 | ||||||||
| Weighted-average limited partner units: | ||||||||||||||||
| Basic common units | 37,887,493 | 37,867,647 | 37,877,273 | 37,202,087 | ||||||||||||
| Diluted common units | 37,906,799 | 37,868,610 | 37,898,036 | 37,202,087 | ||||||||||||
| Supplemental information: | ||||||||||||||||
| (a) includes excise taxes of: | $ | 62,427 | $ | 47,222 | $ | 156,180 | $ | 95,929 | ||||||||
| (a) includes rent income of: | 21,498 | 19,747 | 62,832 | 62,859 | ||||||||||||
| (b) excludes depreciation, amortization and accretion | ||||||||||||||||
| (b) includes rent expense of: | 5,968 | 6,036 | 17,912 | 19,088 | ||||||||||||
| (c) includes rent expense of: | 3,353 | 3,310 | 9,814 | 5,832 | ||||||||||||
CROSSAMERICA PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
| Nine Months Ended September 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 9,674 | $ | 98,496 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation, amortization and accretion expense | 56,732 | 51,867 | ||||||
| Amortization of deferred financing costs | 1,182 | 781 | ||||||
| Credit loss expense | 70 | 1,014 | ||||||
| Deferred income tax benefit | (2,199 | ) | (4,047 | ) | ||||
| Equity-based employee and director compensation expense | 1,096 | 83 | ||||||
| Gain on dispositions and lease terminations, net | (375 | ) | (87,225 | ) | ||||
| Changes in operating assets and liabilities, net of acquisitions | 10,087 | 25,534 | ||||||
| Net cash provided by operating activities | 76,267 | 86,503 | ||||||
| Cash flows from investing activities: | ||||||||
| Principal payments received on notes receivable | 151 | 246 | ||||||
| Proceeds from Circle K in connection with CST Fuel Supply Exchange | — | 23,049 | ||||||
| Proceeds from sale of assets | 11,012 | 13,757 | ||||||
| Capital expenditures | (32,370 | ) | (24,439 | ) | ||||
| Cash paid in connection with acquisitions, net of cash acquired | (261,993 | ) | (28,244 | ) | ||||
| Net cash used in investing activities | (283,200 | ) | (15,631 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings under revolving credit facilities | 167,000 | 159,098 | ||||||
| Repayments on revolving credit facilities | (43,452 | ) | (170,580 | ) | ||||
| Borrowings under the Term Loan Facility | 159,950 | — | ||||||
| Payments of finance lease obligations | (1,944 | ) | (1,830 | ) | ||||
| Payments of deferred financing costs | (7,135 | ) | — | |||||
| Distributions paid on distribution equivalent rights | (93 | ) | (8 | ) | ||||
| Distributions paid to holders of the IDRs | — | (133 | ) | |||||
| Distributions paid on common units | (59,659 | ) | (57,871 | ) | ||||
| Net cash provided by (used in) financing activities | 214,667 | (71,324 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 7,734 | (452 | ) | |||||
| Cash and cash equivalents at beginning of period | 513 | 1,780 | ||||||
| Cash and cash equivalents at end of period | $ | 8,247 | $ | 1,328 | ||||
Segment Results
Wholesale
The 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, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Gross profit: | ||||||||||||||||
| Motor fuel–third party | $ | 18,180 | $ | 15,505 | $ | 52,232 | $ | 40,722 | ||||||||
| Motor fuel–intersegment and related party | 15,943 | 15,181 | 33,633 | 38,023 | ||||||||||||
| Motor fuel gross profit | 34,123 | 30,686 | 85,865 | 78,745 | ||||||||||||
| Rent gross profit | 13,264 | 11,853 | 38,730 | 38,244 | ||||||||||||
| Other revenues | 795 | 290 | 2,658 | 1,705 | ||||||||||||
| Total gross profit | 48,182 | 42,829 | 127,253 | 118,694 | ||||||||||||
| Income from CST Fuel Supply equity interests (a) | — | — | — | 3,202 | ||||||||||||
| Operating expenses | (8,686 | ) | (8,329 | ) | (29,608 | ) | (26,912 | ) | ||||||||
| Operating income | $ | 39,496 | $ | 34,500 | $ | 97,645 | $ | 94,984 | ||||||||
| Motor fuel distribution sites (end of period): (b) | ||||||||||||||||
| Motor fuel–third party | ||||||||||||||||
| Independent dealers (c) | 676 | 683 | 676 | 683 | ||||||||||||
| Lessee dealers (d) | 643 | 672 | 643 | 672 | ||||||||||||
| Total motor fuel distribution–third party sites | 1,319 | 1,355 | 1,319 | 1,355 | ||||||||||||
| Motor fuel–intersegment and related party | ||||||||||||||||
| Commission agents (Retail segment) (d) | 200 | 211 | 200 | 211 | ||||||||||||
| Company operated retail sites (Retail segment) (e) | 248 | 149 | 248 | 149 | ||||||||||||
| Total motor fuel distribution–intersegment and related party sites | 448 | 360 | 448 | 360 | ||||||||||||
| Motor fuel distribution sites (average during the period): | ||||||||||||||||
| Motor fuel-third party distribution | 1,325 | 1,345 | 1,330 | 1,253 | ||||||||||||
| Motor fuel-intersegment and related party distribution | 395 | 364 | 368 | 327 | ||||||||||||
| Total motor fuel distribution sites | 1,720 | 1,709 | 1,698 | 1,580 | ||||||||||||
| Volume of gallons distributed (in thousands) | ||||||||||||||||
| Third party | 244,545 | 242,826 | 700,645 | 613,250 | ||||||||||||
| Intersegment and related party | 110,087 | 84,541 | 277,392 | 195,008 | ||||||||||||
| Total volume of gallons distributed | 354,632 | 327,367 | 978,037 | 808,258 | ||||||||||||
| Wholesale margin per gallon | $ | 0.096 | $ | 0.094 | $ | 0.088 | $ | 0.097 | ||||||||
(a) Represents income from CrossAmerica’s equity interest in CST Fuel Supply. The CST Fuel Supply Exchange closed on March 25, 2020.
(b) In addition, as of September 30, 2021 and 2020, CrossAmerica distributed motor fuel to 14 sub-wholesalers who distributed to additional sites.
(c) The decrease in the independent dealer site count was primarily attributable to loss of contracts, most of which were lower margin, partially offset by the increase in independent dealer sites as a result of the real estate rationalization effort and the resulting reclassification of the sites from a lessee dealer or commission site to an independent dealer site when CrossAmerica continues to supply the sites after divestiture.
(d) The decreases in the lessee dealer and commission agent site counts were primarily attributable to the real estate rationalization effort.
(e) The increase in the company operated site count was primarily attributable to the 98 company operated sites from the acquisition of assets from 7-Eleven.
Retail
The following table highlights the results of operations and certain operating metrics of the Retail segment (in thousands, except for the number of retail sites):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Gross profit: | ||||||||||||||||
| Motor fuel | $ | 7,750 | $ | 3,487 | $ | 18,120 | $ | 7,176 | ||||||||
| Merchandise | 15,543 | 12,305 | 37,876 | 21,689 | ||||||||||||
| Rent | 2,266 | 1,858 | 6,190 | 5,527 | ||||||||||||
| Other revenue | 2,310 | 1,825 | 6,480 | 3,046 | ||||||||||||
| Total gross profit | 27,869 | 19,475 | 68,666 | 37,438 | ||||||||||||
| Operating expenses | (25,862 | ) | (19,179 | ) | (65,413 | ) | (36,416 | ) | ||||||||
| Operating income | $ | 2,007 | $ | 296 | $ | 3,253 | $ | 1,022 | ||||||||
| Retail sites (end of period): | ||||||||||||||||
| Commission agents (a) | 200 | 211 | 200 | 211 | ||||||||||||
| Company operated retail sites (b) | 248 | 149 | 248 | 149 | ||||||||||||
| Total system sites at the end of the period | 448 | 360 | 448 | 360 | ||||||||||||
| Total system operating statistics: | ||||||||||||||||
| Average retail fuel sites during the period | 395 | 359 | 368 | 289 | ||||||||||||
| Volume of gallons sold (in thousands) | 110,523 | 85,902 | 278,564 | 177,855 | ||||||||||||
| Commission agents statistics: | ||||||||||||||||
| Average retail fuel sites during the period | 201 | 209 | 203 | 196 | ||||||||||||
| Company operated retail site statistics: | ||||||||||||||||
| Average retail fuel sites during the period | 194 | 150 | 165 | 93 | ||||||||||||
| Same store fuel volume (c) | 49,444 | 43,232 | n/a | n/a | ||||||||||||
| Same store merchandise sales (c) | $ | 43,604 | $ | 43,605 | n/a | n/a | ||||||||||
| Merchandise gross profit percentage | 26.7 | % | 26.6 | % | 26.8 | % | 26.1 | % | ||||||||
(a) The decrease in the commission site count was primarily attributable to the real estate rationalization effort.
(b) The increase in the company operated site count was primarily attributable to the 98 company operated sites from the acquisition of assets from 7-Eleven.
(c) Same store fuel volume and same store merchandise sales include aggregated individual store results for all stores that had fuel volume or merchandise sales in all months for both periods. Same store merchandise sales includes store and cigarette sales and excludes branded food sales and other revenues such as lottery commissions and car wash sales. Since CrossAmerica did not have any company operated sites in 2020, until the acquisition of retail and wholesale assets closed in April 2020, there are no same store metrics to present for the nine months ended September 30, 2021 and 2020.
Supplemental Disclosure Regarding Non-GAAP Financial Measures
CrossAmerica 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, and certain discrete acquisition related costs, such as legal and other professional fees, 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 benefit or 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, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net income available to limited partners | $ | 8,852 | $ | 21,205 | $ | 9,674 | $ | 98,363 | ||||||||
| Interest expense | 4,928 | 3,522 | 12,295 | 13,183 | ||||||||||||
| Income tax benefit | (1,065 | ) | (892 | ) | (1,664 | ) | (3,868 | ) | ||||||||
| Depreciation, amortization and accretion expense | 19,118 | 18,590 | 56,732 | 51,867 | ||||||||||||
| EBITDA | 31,833 | 42,425 | 77,037 | 159,545 | ||||||||||||
| Equity-based employee and director compensation expense | 342 | 35 | 1,096 | 83 | ||||||||||||
| Gain on dispositions and lease terminations, net (a) | (426 | ) | (12,881 | ) | (375 | ) | (79,237 | ) | ||||||||
| Acquisition-related costs (b) | 4,141 | 385 | 8,502 | 2,578 | ||||||||||||
| Adjusted EBITDA | 35,890 | 29,964 | 86,260 | 82,969 | ||||||||||||
| Cash interest expense | (4,267 | ) | (3,261 | ) | (11,113 | ) | (12,401 | ) | ||||||||
| Sustaining capital expenditures (c) | (975 | ) | (745 | ) | (3,407 | ) | (1,792 | ) | ||||||||
| Current income tax (expense) benefit (d) | (214 | ) | 3,784 | (548 | ) | 7,452 | ||||||||||
| Distributable Cash Flow | $ | 30,434 | $ | 29,742 | $ | 71,192 | $ | 76,228 | ||||||||
| Weighted-average diluted common units | 37,907 | 37,869 | 37,898 | 37,202 | ||||||||||||
| Distributions paid per limited partner unit (e) | $ | 0.5250 | $ | 0.5250 | $ | 1.5750 | $ | 1.5750 | ||||||||
| Distribution Coverage Ratio (f) | 1.53x | 1.50x | 1.19x | 1.30x | ||||||||||||
(a) CrossAmerica recorded gains on the sale of sites in connection with its ongoing real estate rationalization effort of
(b) 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.
(c) 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.
(d) Consistent with prior divestitures, the current income tax expense (benefit) excludes income tax incurred on the sale of sites.
(e) On October 21, 2021, the Board approved a quarterly distribution of
(f) 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 LP
CrossAmerica Partners LP is a leading wholesale distributor of motor fuels, convenience store operator, 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 1,800 locations and owns or leases approximately 1,200 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.
Contact
Investor Relations: Randy Palmer, rpalmer@caplp.com or 210-742-8316
Cautionary Statement Regarding Forward-Looking Statements
Statements 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 (
FAQ
What were CrossAmerica Partners LP's Q3 2021 financial results?
How did CrossAmerica's Adjusted EBITDA perform in Q3 2021?
What was the Distributable Cash Flow for CAPL in Q3 2021?
How many gallons of fuel did CrossAmerica distribute in Q3 2021?
What gross profit did CrossAmerica report for its retail segment in Q3 2021?
