• Retail Segment Operating Income: Increased 7% year-over-year for Q2 2024.

• Retail Gross Profit: $76.6 million, up 16% from Q2 2023.

• Merchandise Gross Profit: Increased 23% year-over-year.

• Motor Fuel Gross Profit: Increased 10% year-over-year.

• Retail Fuel Margin: $0.373 per gallon, up 1% from Q2 2023.

• Same-Store Retail Volume: Declined 2% year-over-year.

• Inside Sales (Excluding Cigarettes): Up 2% year-over-year on a same-store basis.

• Company-Operated Site Count: Increased by 80 sites year-over-year.

• Wholesale Segment Gross Profit: Declined 11% to $28.1 million.

• Wholesale Motor Fuel Gross Profit: Decreased 7% to $16.6 million.

• Wholesale Fuel Margin: Increased 6% to $0.087 per gallon.

• Wholesale Volume: 192.1 million gallons, down 12% year-over-year.

• Net Income: $12.4 million for Q2 2024, down from $14.5 million in Q2 2023.

• Adjusted EBITDA: $42.6 million, up 1% from Q2 2023.

• Distributable Cash Flow: $26.1 million, down from $30.4 million in Q2 2023.

• Distribution Coverage: 1.3 times for Q2 2024.

• Operating Expenses: Increased $6 million year-over-year.

• Capital Expenditures: $5.3 million, with $3.4 million for growth-related investments.

• Credit Facility Balance: $789.5 million as of June 30, 2024.

• Effective Interest Rate: 6.7% on the total credit facility.

• Warning! GuruFocus has detected 6 Warning Sign with CAPL.

Release Date: August 09, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CrossAmerica Partners LP (NYSE:CAPL) achieved a 7% year-over-year increase in retail segment operating income for the second quarter, driven by successful site conversions from wholesale to retail.

• The retail segment generated a 16% increase in gross profit, with merchandise gross profit up 23% and motor fuel gross profit up 10% compared to the same period in 2023.

• Retail fuel margin increased by 1% year-over-year, with a significant 21% increase from the first quarter of 2024.

• The company successfully increased its overall retail site count by 43 sites during the second quarter, reflecting active execution of its strategy to expand retail operations.

• CAPL reported a slight increase in adjusted EBITDA by 1% year-over-year, demonstrating resilience despite a challenging market environment.

Negative Points

• Net income for the second quarter of 2024 decreased to $12.4 million from $14.5 million in the second quarter of 2023.

• Distributable cash flow declined to $26.1 million from $30.4 million year-over-year, primarily due to increased interest expenses and higher sustaining capital spending.

• Retail same-store volume declined by 2% for the quarter, reflecting ongoing challenges in national fuel demand.

• Operating expenses increased by $6 million compared to the second quarter of 2023, driven by higher costs in the retail segment due to site conversions.

• The wholesale segment experienced an 11% decline in gross profit, attributed to a decrease in fuel volume despite an increase in fuel margin per gallon.