The following is a summary of the CrossAmerica Partners LP (CAPL) Q4 2023 Earnings Call Transcript:

Financial Performance:

• CrossAmerica Partners reported a Q4 net income of $16.7 million, slightly down from $17.1 million in Q4 2022, mainly due to higher interest expense.

• Q4 adjusted EBITDA was $47.6 million, up 8% from Q4 2022, with distributable cash flow also up 7% at $35.8 million.

• The company saw an increase in operating expenses due to an increase in the number of retail sites.

• For the full year 2023, net income decreased to $42.6 million from $63.7 million in 2022, with distributable cash flow also down at $116.7 million from $140.9 million in 2022.

• Capital expenditures of $12.9 million were spent during Q4, with a majority towards growth-related endeavors.

Business Progress:

• Increases in operating income were noticed in both wholesale and retail segments during Q4.

• CrossAmerica saw a 1% increase in wholesale segment gross profit to $33 million due to increased fuel margin.

• Despite a 4% decrease in wholesale volume, retail segment gross profit for Q4 2023 was $69 million, driven by an 11% increase in motor fuel profit, and an 18% increase in merchandise gross profit.

• The company paid down $9 million from its 2022 year-end balance and aims for an operational performance that can manage its leverage ratio of approximately 4x.

• CrossAmerica converted certain sites to company-operated locations, ended leases with Applegreen, and divested 10 properties for $9.2 million, indicating a move towards optimizing its portfolio.

More details: CrossAmerica IR

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