CrossAmerica Partners LP (CAPL) Bundle
An Overview of CrossAmerica Partners LP (CAPL)
General Overview of CrossAmerica Partners LP (CAPL)
CrossAmerica Partners LP (CAPL) was formed in 2014 and operates as a limited partnership that primarily engages in the wholesale distribution of motor fuel and the retail sale of motor fuel and convenience store merchandise. As of 2024, CAPL operates over 597 retail sites, comprising both company-operated and commission agent sites. The company has shifted its strategy to focus on converting lessee dealer sites to company-operated sites, enhancing its operational footprint. The retail segment has seen a surge in merchandise sales, contributing to a more diversified revenue stream.
For the year 2024, CAPL reported total sales of approximately $3.15 billion, primarily driven by fuel sales and merchandise revenue. The company has established a robust presence in the motor fuel distribution market, leveraging its extensive network and operational efficiencies to maximize profitability.
Company's Financial Performance in the Latest Financial Reports
In the most recent financial statements for the nine months ended September 30, 2024, CrossAmerica Partners LP reported operating revenues of $3.15 billion, a decrease from $3.37 billion in the same period of 2023. The total gross profit for the same period was $297.34 million, up from $280.22 million, reflecting a gross profit margin increase driven by enhanced merchandise sales and operational efficiencies.
Key financial highlights include:
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Revenues | $3,154,066,000 | $3,371,578,000 |
| Gross Profit | $297,336,000 | $280,223,000 |
| Operating Income | $42,228,000 | $61,108,000 |
| Net Income | $5,592,000 | $25,849,000 |
| Earnings Per Common Unit (Basic) | $0.10 | $0.63 |
During the third quarter of 2024, CAPL experienced a gross profit increase of 11%, driven primarily by a rise in merchandise sales and a strategic increase in retail fuel margins. The company’s operating income for the nine months ended September 30, 2024, was reported at $42.23 million, reflecting ongoing efforts to optimize operational costs despite challenges in the wholesale segment.
Introduction to Company as a Leader in the Industry
CrossAmerica Partners LP stands as a prominent player in the fuel distribution and retail convenience store market. The company has effectively positioned itself as a leader by expanding its operational capabilities and diversifying its revenue streams. CAPL’s strategy includes transitioning lessee dealer sites to company-operated sites, which has significantly increased its retail footprint and enhanced customer engagement.
The company’s ability to adapt to market changes, invest in its infrastructure, and focus on customer service has solidified its status in the industry. CAPL’s commitment to operational excellence and strategic growth initiatives continues to drive its success, making it a noteworthy entity in the competitive landscape of motor fuel distribution and retailing.
Mission Statement of CrossAmerica Partners LP (CAPL)
Mission Statement Overview
CrossAmerica Partners LP (CAPL) is committed to providing high-quality fuel and convenience store products while ensuring operational excellence. The mission statement serves as a guiding principle, directing the company's strategic objectives and operational practices to meet customer needs and stakeholder expectations.
Core Component 1: Delivering Quality Products
CAPL emphasizes the importance of delivering high-quality fuel and convenience products. This commitment is reflected in their operational practices and supplier relationships. For instance, in the nine months ended September 30, 2024, CAPL reported operating revenues of $3.154 billion, showcasing the scale of their operations and the demand for their products.
| Metric | Value |
|---|---|
| Operating Revenues (9 months 2024) | $3.154 billion |
| Gross Profit (9 months 2024) | $297.3 million |
| Average Retail Fuel Sites | 595 |
| Volume of Gallons Sold (9 months 2024) | 413.1 million |
The gross profit margin per gallon of motor fuel sold was $0.406 for the three months ended September 30, 2024, reflecting the effectiveness of CAPL's pricing strategies.
Core Component 2: Operational Excellence
CAPL strives for operational excellence by optimizing its retail and wholesale distribution networks. The increase in company-operated retail sites, which rose to 372 by September 30, 2024, is a testament to their strategy of enhancing operational capabilities.
| Metric | Value |
|---|---|
| Company Operated Retail Sites | 372 |
| Commission Agent Sites | 225 |
| Total Retail Segment Sites | 597 |
| Operating Income (9 months 2024) | $70.6 million |
Operating income for the nine months ended September 30, 2024, was $70.6 million, driven by strategic site conversions and enhanced operational efficiencies.
Core Component 3: Commitment to Stakeholders
CAPL's mission statement reflects a commitment to all stakeholders, including customers, employees, and investors. The company distributed $19.975 million to common unit holders in the third quarter of 2024, indicating strong financial performance and a dedication to returning value to investors.
| Metric | Value |
|---|---|
| Cash Distribution per Common Unit | $0.5250 |
| Total Cash Distribution (Q3 2024) | $19.975 million |
| Net Income Available to Limited Partners (Q3 2024) | $10.126 million |
| Earnings per Common Unit (Q3 2024) | $0.27 |
These distributions reflect CAPL’s ongoing commitment to its stakeholders, reinforcing their mission to deliver value and quality across all operations.
Vision Statement of CrossAmerica Partners LP (CAPL)
Vision Statement of CrossAmerica Partners LP (CAPL)
As of 2024, CrossAmerica Partners LP aims to enhance its position as a leading provider of motor fuels and convenience store products. The vision reflects a commitment to operational excellence, strategic growth, and customer satisfaction.
Commitment to Operational ExcellenceCrossAmerica Partners LP emphasizes a strong dedication to operational excellence by optimizing its retail and wholesale operations. The company operates a total of 597 retail sites, which includes 372 company-operated sites and 225 commission agent sites. This operational scale allows CAPL to leverage efficiencies and improve service delivery across its network.
In the latest financial reports, CrossAmerica Partners LP reported a gross profit of $83.6 million for the three months ended September 30, 2024, representing a 24% increase from the previous year. This increase is primarily driven by a 26% rise in motor fuel gross profit, attributed to a volume increase of 12% due to the expanded average retail site count.
Strategic Growth Initiatives
The company’s vision includes ambitious growth initiatives, particularly through strategic acquisitions and site conversions. In 2024, CAPL transitioned 59 sites from lessee dealer sites to company-operated sites as a result of the Applegreen Acquisition, enhancing its operational footprint.
| Year | Number of Retail Sites | Gross Profit (in millions) | Operating Income (in millions) |
|---|---|---|---|
| 2023 | 482 | 67.6 | 26.5 |
| 2024 | 597 | 83.6 | 31.4 |
This strategic focus on expanding operational capabilities is reflected in the significant increase in both gross profit and operating income, indicating a robust approach to capitalizing on market opportunities.
Customer-Centric ApproachCrossAmerica Partners LP aims to enhance customer satisfaction through a commitment to quality service and product availability. The company reported a 27.9% merchandise gross profit percentage for the three months ended September 30, 2024. This focus on improving the product mix and service quality is crucial for attracting and retaining customers in a competitive market.
The company’s retail segment achieved a volume of 148,380 gallons sold for the three months ended September 30, 2024, up from 132,160 gallons in the same period of 2023. This increase underscores the effectiveness of CAPL’s customer engagement strategies and product offerings.
Financial Stability and Performance
As part of its vision, CrossAmerica Partners LP maintains a focus on financial stability, managing debt levels, and ensuring sustainable growth. As of September 30, 2024, the total debt and finance lease obligations stood at $781.2 million, with an effective interest rate of 6.5%. The company’s ability to maintain compliance with financial covenants under the CAPL Credit Facility demonstrates prudent financial management.
In the nine months ended September 30, 2024, CrossAmerica reported total operating revenues of $3.15 billion, reflecting a strategic alignment of operational capabilities with financial performance.
ConclusionCrossAmerica Partners LP's vision for 2024 encompasses a comprehensive approach to operational excellence, strategic growth, customer satisfaction, and financial stability. The company’s proactive strategies and performance metrics reflect its commitment to becoming a leader in the fuel and convenience store industry.
Core Values of CrossAmerica Partners LP (CAPL)
Integrity
The core value of integrity emphasizes the importance of ethical behavior and transparency in all operations. CrossAmerica Partners LP (CAPL) demonstrates its commitment to integrity through stringent compliance with regulatory standards and ethical business practices.
In 2024, CAPL maintained a high compliance rate with federal and state regulations, ensuring all operational practices met legal requirements. The company reported a commitment to ethical sourcing, with 81% of its motor fuel purchased from four suppliers, fostering transparency in supply chain management.
Customer Focus
Customer focus is vital for CAPL, driving efforts to enhance service quality and satisfaction. The company has implemented various initiatives to engage with customers effectively.
- CAPL operates 597 retail sites, an increase from 482 in the previous year, demonstrating a commitment to accessibility for customers.
- In 2024, the company achieved a gross profit of $214.6 million from its retail segment, reflecting an increase in customer engagement and sales.
Innovation
Innovation drives CAPL's operational strategies, focusing on optimizing processes and enhancing customer experience. The company has invested in technology to streamline operations.
For instance, CAPL has allocated $44.6 million in capital expenditures for 2024, which includes investments in technology and infrastructure aimed at improving service delivery and operational efficiency.
Teamwork
Teamwork is essential at CAPL, fostering collaboration across various departments to achieve common goals. The company emphasizes employee development and engagement initiatives.
During the nine months ended September 30, 2024, CAPL reported $93.5 million in expenses related to employee costs under the Omnibus Agreement, highlighting its investment in human resources.
Responsibility
Responsibility reflects CAPL's commitment to environmental sustainability and community engagement. The company actively participates in initiatives that promote sustainable practices.
CAPL has committed to environmentally responsible operations, with maintenance and environmental remediation costs totaling $2.4 million for the nine months ended September 30, 2024. This commitment underscores the importance of environmental stewardship in its business model.
| Core Value | Examples of Commitment | Key Metrics (2024) |
|---|---|---|
| Integrity | Compliance with regulations | 81% of motor fuel from four suppliers |
| Customer Focus | Enhanced customer engagement initiatives | $214.6 million gross profit from retail segment |
| Innovation | Investment in technology and infrastructure | $44.6 million in capital expenditures |
| Teamwork | Employee development initiatives | $93.5 million in employee-related expenses |
| Responsibility | Environmental sustainability initiatives | $2.4 million in environmental remediation costs |
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Updated on 16 Nov 2024
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.