Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an overview of CrossAmerica Partners' retail segment performance for the fourth quarter of 2024? A: Charles Nifong, CEO, reported that the retail segment's gross profit increased by 9% to $75.1 million, driven by an increase in merchandise margin. However, there was a slight decrease in motor fuel gross profit. Despite weak fuel demand and soft inside store sales industry-wide, CrossAmerica's same-store volume and inside store sales outperformed the market. Retail fuel margins declined by 9% year-over-year due to less favorable price volatility in crude oil prices.
Q: How did the wholesale segment perform in the fourth quarter of 2024? A: The wholesale segment's gross profit declined by 22% to $25.9 million, primarily due to a decline in both fuel volume and margin per gallon. The conversion of certain lessee dealer sites to company-operated and commission agent sites, now accounted for in the retail segment, significantly impacted the wholesale segment's performance.
Q: What were the key financial results for CrossAmerica Partners in the fourth quarter of 2024? A: Maura Topper, CFO, stated that the net income was $16.9 million, slightly up from $16.7 million in the previous year. Adjusted EBITDA was $35.5 million, down 26% from the previous year. Distributable cash flow decreased to $21.1 million from $35.8 million in the fourth quarter of 2023, primarily due to lower adjusted EBITDA and higher cash interest expenses.
Q: What strategic actions did CrossAmerica Partners undertake in 2024? A: The company converted 107 sites to its retail class of trade, either as company-operated sites or commissioned locations, to enhance long-term profitability. They also divested 30 properties for $36.3 million in proceeds, focusing on recycling capital to strengthen the balance sheet and invest in growth opportunities.
Q: What are the expectations for CrossAmerica Partners in 2025? A: The company plans to continue optimizing its portfolio by strategically converting sites to retail and focusing on providing value and a great experience to customers. They also aim to maintain a strong balance sheet, continue portfolio divestitures, and adapt to market conditions to generate strong results for unit holders.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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