The following is a summary of the CrossAmerica Partners LP Common Units (CAPL) Q3 2024 Earnings Call Transcript:
Financial Performance:
CrossAmerica Partners reported a net income of $10.7 million for Q3 2024, down from $12.3 million in Q3 2023.
Adjusted EBITDA slightly decreased by 1% to $43.9 million in Q3 2024 from $44.2 million in Q3 2023.
Distributable cash flow declined to $27.1 million in Q3 2024 from $31.4 million in the previous year, primarily due to an increase in interest expense and higher sustaining capital spending.
Business Progress:
Retail segment saw a 24% increase in gross profit and a 19% increase in operating income, with notably higher fuel margins.
Wholesale segment gross profit declined by 16% due to a drop in fuel volume, partially offset by higher margins per gallon.
CrossAmerica increased company-operated retail site count by 79 sites from last year and continued active property divestitures, enhancing their strategic shift towards retail operations.
Opportunities:
The conversion from wholesale to retail operations has increased exposure to higher retail fuel margins.
Continued investment and strategy in converting sites highlight potential for robust retail segment growth and enhanced profitability.
Risks:
Retail segment experienced a soft demand environment with flat same-store sales and a slight decline in inside sales despite strong fuel margin performance.
More details: CrossAmerica IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
