CrossAmerica Partners LP Reports Second Quarter 2024 Results
Intellectia.AI2024-08-08
CrossAmerica Partners LP Reports Second Quarter 2024 Results
Allentown, PA, Aug. 07, 2024 - CrossAmerica Partners LP (NYSE: CAPL), a leading wholesale fuels distributor and convenience store operator, today announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate (Q2 2024) |
|---|---|---|---|---|
| Total Revenue | $1.275 billion | NA | NA | $1.27 billion |
| Net Income | $12.4 million | $14.5 million | -14.5% | NA |
| Adjusted EBITDA | $42.6 million | $42.2 million | +0.9% | NA |
| Distributable Cash Flow | $26.1 million | $30.4 million | -14.1% | NA |
| Earnings Per Share (EPS) | NA | NA | NA | $0.06 |
Interpretation: CrossAmerica Partners saw a minor increase in Adjusted EBITDA, attributed largely to an uptick in its retail segment's motor fuel and merchandise gross profits. However, the partnership experienced declines in both net income and distributable cash flow year-over-year, primarily due to increased interest expenses following the expiration of favorable interest rate hedges.
Revenue Performance by Segment
| Segment | Q2 2024 Gross Profit | Q2 2023 Gross Profit | Change |
|---|---|---|---|
| Retail | $76.6 million | $66.0 million | +16% |
| Wholesale | $28.1 million | $31.7 million | -11% |
Interpretation: The retail segment demonstrated a strong performance with a 16% increase in gross profit, driven by a 10% rise in motor fuel gross profit and a 23% increase in merchandise gross profit. Conversely, the wholesale segment saw an 11% decline in gross profit, primarily due to the conversion of lessee dealer sites to company-operated sites and a net loss of independent dealer contracts.
Key Operational Data
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Retail Fuel Gallons Sold | 143.0 million | NA | +9% |
| Merchandise Gross Profit % | 28.3% | 29.0% | -0.7 pp |
| Company-operated Sites | Not Provided | Not Provided | +79 sites |
Comments from Company Officers: Charles Nifong, President and CEO of CrossAmerica, commented: “Our financial results for the second quarter were significantly improved from the first quarter, despite a continued overall soft fuel demand environment. Our results reflect our continued successful execution of our strategy. We realized strong results in our retail segment, with increases in overall gallons, sales, and segment operating income.”
Dividends
On July 23, 2024, the Board of Directors declared a quarterly distribution of $0.5250 per limited partner unit attributable to the second quarter. The distribution will be paid on August 9, 2024, to all unitholders of record as of August 2, 2024.
Forward Guidance
No specific forward guidance was provided in the earnings release.
Stock Price Movement
Following the earnings release, CrossAmerica's stock price saw an increase of approximately 1.27%.
CrossAmerica Partners LP remains focused on executing its growth strategy and maintaining a robust balance sheet, indicating a stable outlook even amid fluctuating market conditions. The company's consistent focus on operational efficiencies and strategic site conversions positions it well for future growth.
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