CrossAmerica Partners LP (CAPL) Bundle
A Brief History of CrossAmerica Partners LP
Company Overview
CrossAmerica Partners LP, established in 2014, operates as a wholesale distributor of motor fuels and a retailer through its convenience store outlets. The company primarily serves lessee dealers and independent dealers, managing a significant portfolio of retail sites across the United States.
Financial Performance
For the three months ended September 30, 2024, CrossAmerica reported operating revenues of $1,079,163,000, a decrease from $1,210,023,000 in the same period in 2023. The gross profit increased to $111,226,000 compared to $100,440,000 year-over-year. The net income for the same period was $10,708,000, down from $12,292,000 in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Operating Revenues | $1,079,163,000 | $1,210,023,000 | -10.8% |
| Gross Profit | $111,226,000 | $100,440,000 | 10.3% |
| Net Income | $10,708,000 | $12,292,000 | -12.9% |
Distributions and Equity Transactions
In 2024, CrossAmerica Partners paid distributions of $19,975,000 for each quarter, maintaining a consistent cash distribution policy. The total distributions paid on common units for the nine months ended September 30, 2024, were $59,880,000.
Debt and Financing
As of September 30, 2024, CrossAmerica's total debt and finance lease obligations amounted to $781,189,000, with a CAPL Credit Facility balance of $772,419,000. The effective interest rate on the facility was reported at 6.5%.
Capital Expenditures
The company incurred total capital expenditures of $44,648,000 for the nine months ended September 30, 2024, which included $25,517,000 in lease termination payments related to the Applegreen acquisition.
Acquisition Activities
In January 2024, CrossAmerica completed the Applegreen acquisition, transitioning 59 lessee dealer sites to company-operated locations for a total consideration of $16.9 million.
Market Conditions
The average wholesale fuel selling price decreased by 14% in 2024, impacting revenues significantly. The average spot price of WTI crude oil decreased to $76.43 per barrel, down from $82.25 per barrel year-over-year.
Future Outlook
CrossAmerica Partners continues to adapt to market conditions and consumer demands, focusing on expanding its retail segment while managing operational challenges associated with fluctuating fuel prices and competitive pressures.
A Who Owns CrossAmerica Partners LP (CAPL)
Ownership Structure
As of 2024, CrossAmerica Partners LP (CAPL) has a diverse ownership structure primarily composed of institutional and individual investors, alongside significant holdings by insiders.
Major Shareholders
The following table outlines the major shareholders of CrossAmerica Partners LP as of 2024:
| Shareholder | Type of Ownership | Percentage Ownership | Number of Units Owned |
|---|---|---|---|
| Topper Group | Institutional | Approximately 24% | 9,170,000 |
| John B. Reilly, III | Individual | Approximately 6% | 2,300,000 |
| BlackRock, Inc. | Institutional | Approximately 5% | 1,900,000 |
| Wellington Management | Institutional | Approximately 4% | 1,500,000 |
| Other Institutional Investors | Institutional | Approximately 10% | 3,800,000 |
| Public Float | Retail | Approximately 51% | 19,276,688 |
Unit Distribution and Accretion
As of September 30, 2024, the total number of common units issued and outstanding was 38,046,688. The distribution activity is as follows:
| Quarter Ended | Record Date | Payment Date | Cash Distribution (per unit) | Cash Distribution (in thousands) |
|---|---|---|---|---|
| December 31, 2023 | February 2, 2024 | February 9, 2024 | $0.5250 | $19,941 |
| March 31, 2024 | May 3, 2024 | May 10, 2024 | $0.5250 | $19,964 |
| June 30, 2024 | August 2, 2024 | August 9, 2024 | $0.5250 | $19,975 |
| September 30, 2024 | November 4, 2024 | November 13, 2024 | $0.5250 | $19,975 |
Preferred Membership Interests
As of September 30, 2024, preferred membership interests and their associated accretion are as follows:
| Period | Accretion Amount |
|---|---|
| Three Months Ended September 30, 2024 | $0.582 million |
| Nine Months Ended September 30, 2024 | $1.911 million |
| Three Months Ended September 30, 2023 | $0.629 million |
| Nine Months Ended September 30, 2023 | $1.845 million |
Debt and Financial Obligations
As of September 30, 2024, CAPL's debt and finance lease obligations were structured as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| CAPL Credit Facility | $772,419 |
| Finance Lease Obligations | $8,770 |
| Total Debt and Finance Lease Obligations | $781,189 | Current Portion | $3,233 |
| Noncurrent Portion | $777,956 |
Overall, the ownership of CrossAmerica Partners LP reflects a blend of institutional, individual, and public investors, with the Topper Group being the largest stakeholder. The financial structure indicates a reliance on both equity distributions and debt financing to support ongoing operations and investments.
CrossAmerica Partners LP (CAPL) Mission Statement
Overview of Mission Statement
The mission of CrossAmerica Partners LP (CAPL) focuses on delivering high-quality fuel and convenience products while maximizing value for stakeholders. The company aims to enhance customer experience through its extensive network of retail sites and to maintain operational excellence in the energy distribution sector.
Financial Performance and Key Metrics
As of September 30, 2024, CAPL's financial performance can be summarized by the following key metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Revenues | $1,079,163,000 | $1,210,023,000 | $3,154,066,000 | $3,371,578,000 |
| Cost of Sales | $967,937,000 | $1,109,583,000 | $2,856,730,000 | $3,091,355,000 |
| Gross Profit | $111,226,000 | $100,440,000 | $297,336,000 | $280,223,000 |
| Operating Income | $27,096,000 | $24,145,000 | $42,228,000 | $61,108,000 |
| Net Income | $10,708,000 | $12,292,000 | $5,592,000 | $25,849,000 |
| Earnings per Common Unit (Diluted) | $0.27 | $0.31 | $0.15 | $0.63 |
Operational Highlights
CAPL has reported operational metrics that reflect its mission to grow and optimize its retail network:
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Company Operated Retail Sites | 372 | 293 |
| Commission Agent Sites | 225 | 189 |
| Total Retail Segment Sites | 597 | 482 |
| Volume of Gallons Sold | 148,380,000 | 132,160,000 |
| Average Retail Fuel Margin per Gallon | $0.406 | $0.372 |
Market Position and Strategy
In alignment with its mission, CAPL has strategically focused on expanding its market presence through acquisitions and enhancing its service offerings. The conversion of lessee dealer sites to company-operated sites has been a critical component of this strategy, driving revenue growth and operational efficiency.
Distribution Policy
CAPL maintains a consistent distribution policy, with quarterly distributions as follows:
| Quarter Ended | Cash Distribution per Unit | Total Cash Distribution (in thousands) |
|---|---|---|
| December 31, 2023 | $0.5250 | $19,941 |
| March 31, 2024 | $0.5250 | $19,964 |
| June 30, 2024 | $0.5250 | $19,975 |
| September 30, 2024 | $0.5250 | $19,975 |
Future Outlook
Looking ahead, CAPL is positioned to continue its growth trajectory by leveraging its enhanced operational capabilities and expanding its retail network. The focus remains on maximizing profitability while delivering value to its stakeholders.
How CrossAmerica Partners LP (CAPL) Works
Company Overview
CrossAmerica Partners LP (CAPL) operates as a wholesale distributor of motor fuel and a retail convenience store operator. The company engages in the purchase and distribution of motor fuel and operates a network of retail fuel sites and convenience stores across the United States.
Financial Performance
For the three months ended September 30, 2024, CrossAmerica reported operating revenues of $1,079,163 thousand compared to $1,210,023 thousand for the same period in 2023, reflecting a decrease of 11%. The costs of sales for the same period were $967,937 thousand, resulting in a gross profit of $111,226 thousand, which is an increase from $100,440 thousand year-over-year.
Gross Profit Analysis
The breakdown of gross profit for the three months ended September 30, 2024 is as follows:
| Category | Gross Profit (Thousands) |
|---|---|
| Motor Fuel | $45,759 |
| Merchandise | $30,494 |
| Rent | $2,403 |
| Other Revenue | $4,931 |
| Total Gross Profit | $83,587 |
Operating Expenses
For the three months ended September 30, 2024, total operating expenses were $88,812 thousand, which includes:
- Operating expenses: $60,766 thousand
- General and administrative expenses: $7,310 thousand
- Depreciation, amortization, and accretion expense: $20,736 thousand
Net Income and Earnings
Net income for the three months ended September 30, 2024 was $10,708 thousand, compared to $12,292 thousand for the same period in 2023. Earnings per common unit for the same period were $0.27 (basic and diluted).
Distribution to Unitholders
CrossAmerica Partners LP distributed $0.5250 per common unit for each quarter in 2024, totaling $19,975 thousand per quarter.
Debt and Financial Obligations
As of September 30, 2024, CrossAmerica's total debt and finance lease obligations amounted to $781,189 thousand, which includes:
- CAPL Credit Facility: $772,419 thousand
- Finance lease obligations: $8,770 thousand
The effective interest rate on the CAPL Credit Facility was 6.5%.
Capital Expenditures
For the nine months ended September 30, 2024, total capital expenditures were $44,648 thousand, broken down as follows:
- Sustaining capital: $6,162 thousand
- Growth capital: $12,969 thousand
- Lease termination payments to Applegreen: $25,517 thousand
Operational Metrics
As of September 30, 2024, the company operated:
| Type of Site | Number of Sites |
|---|---|
| Company Operated Retail Sites | 372 |
| Commission Agents | 225 |
| Total Retail Segment Sites | 597 |
Wholesale Distribution Metrics
For the three months ended September 30, 2024, the company distributed:
- Volume of gallons distributed: 186,946 thousand
- Margin per gallon: $0.090
Market Trends and Impact Factors
The average spot price of WTI crude oil decreased by 7% from $82.25 per barrel in Q3 2023 to $76.43 per barrel in Q3 2024, impacting revenue and cost of sales.
Future Commitments
As of September 30, 2024, the future minimum volume purchase requirements under fuel supply agreements totaled 4,317,598 thousand gallons, with significant commitments extending into 2028.
How CrossAmerica Partners LP (CAPL) Makes Money
Revenue Streams
CrossAmerica Partners LP (CAPL) generates revenue primarily through two segments: wholesale and retail. The wholesale segment encompasses the distribution of motor fuels to lessee dealers and independent dealers. The retail segment includes the sale of motor fuels and convenience merchandise at retail sites.
Wholesale Fuel Distribution
In the wholesale segment, CAPL has exclusive motor fuel distribution contracts with lessee dealers who lease the properties from the partnership. For the nine months ended September 30, 2024, revenues from fuel sales to external customers in this segment amounted to $1,416,361,000.
Retail Operations
CAPL operates retail sites, generating revenue from the direct sale of motor fuels and convenience merchandise. During the same period, revenues from food and merchandise sales in the retail segment reached $291,266,000. Additionally, rental income from leasing properties to third parties contributed $53,959,000.
| Revenue Source | Amount (in thousands) |
|---|---|
| Wholesale Fuel Sales | $1,416,361 |
| Retail Fuel Sales | $1,374,464 |
| Food and Merchandise Sales | $291,266 |
| Rental Income | $53,959 |
| Other Revenue | $18,016 |
| Total Revenue | $3,154,066 |
Operating Performance
For the nine months ended September 30, 2024, CAPL reported an operating income of $42,228,000. The cost of sales during this period was $2,856,730,000, leading to a gross profit of $297,336,000.
Cost Structure
The operating expenses for the same period totaled $248,562,000, which includes general and administrative expenses of $22,040,000 and depreciation, amortization, and accretion expenses of $57,903,000.
Cash Flow Analysis
In terms of cash flow, CAPL generated $76,672,000 from operating activities for the nine months ended September 30, 2024. This is a slight decrease from $78,989,000 in the same period of the previous year.
Debt and Financing
As of September 30, 2024, CAPL had total debt and finance lease obligations amounting to $772,419,000. Interest expenses for the nine months totaled $38,918,000, reflecting the cost of financing operations.
Market Position and Strategy
The company continues to optimize its operations through strategic acquisitions, including the recent acquisition of assets from Applegreen, which involved a cash payment of $25,517,000 and the conversion of 59 sites from lessee dealer sites to company-operated sites.
Distribution Policy
CAPL has maintained a consistent cash distribution policy, with distributions of $0.5250 per common unit paid quarterly, totaling $19,975,000 for each quarter in 2024.
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Resources:
- CrossAmerica Partners LP (CAPL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CrossAmerica Partners LP (CAPL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CrossAmerica Partners LP (CAPL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.