CrossAmerica Partners LP: Reports Second Quarter 2015 Results
(Thomson Reuters ONE) -
CrossAmerica Partners LP Reports Second Quarter 2015 Results
- Generated record total gross profit of $38.3 million compared to the second
quarter of 2014 total gross profit of $26.9 million, an increase of 42%.
- The Partnership generated $1.2 million in income in the second quarter from
its equity interest in CST Fuel Supply.
- Generated Record Distributable Cash Flow of $14.3 million and Distribution
Coverage Ratio of 1.04X in the Second Quarter.
-Maintains Guidance of 7% to 9% Distributable Cash Flow Per Unit Growth Rate for
2015.
Allentown, PA, August 7, 2015 - CrossAmerica Partners LP (NYSE: CAPL),
headquartered in Allentown, PA, a leading wholesale distributor of motor fuels
and owner and lessee of real estate used in the retail distribution of motor
fuels, today reported financial results for the second quarter ended June 30,
2015.
"During the second quarter, we saw solid growth in our wholesale fuel supply
sales and rental income, thanks to our acquisitions and strategic alliance with
CST Brands. Our wholesale operating income saw an 11 percent increase with
total wholesale volumes increasing 24 percent," said Joe Topper, CEO of
CrossAmerica Partnership. "The NTI and fuel drop transactions with CST Brands
and the One Stop acquisition completed on July 1 provides us with additional
cash flow to further increase our unit distribution over time."
Wholesale Segment
During the second quarter 2015, we distributed, on a wholesale basis, 277.1
million gallons of motor fuel at an average wholesale gross margin of $0.053 per
gallon, resulting in a wholesale motor fuel gross profit of $14.6 million. For
the three month period ending June 30, 2014, we distributed, on a wholesale
basis, 222.9 million gallons of fuel at an average wholesale gross margin of
$0.067 per gallon, resulting in a wholesale motor fuel gross profit of $15.0
million. The decrease of 3% in gross profit from wholesale fuel sales for the
second quarter of 2015 relative to 2014 was attributable to a decline in the
average wholesale fuel margin partially offset by a 24% increase in volume
driven by the acquisitions that have been completed since April 2014. Wholesale
fuel margin per gallon for the quarter was approximately 22% lower relative to
the second quarter 2014, primarily due to the decline in the margin we receive
from purchase discounts provided to us by our suppliers. The Partnership
receives certain discounts from suppliers based on a percentage of the purchase
price of fuel and the dollar value of these discounts varies with the price of
wholesale motor fuel.
Our gross profit from our Other revenues for the wholesale segment, which
primarily consist of rental income, was $6.9 million for the second quarter of
2015 compared to $6.2 million for the same period in 2014. The increase in
rental income was primarily associated with our previously announced
acquisitions of Nice N Easy and Landmark stores, which we lease to CST.
Retail Segment
For the second quarter 2015, we sold 57.3 million gallons at an average retail
motor fuel gross margin of $0.095 per gallon, net of commissions and credit card
fees, resulting in a retail gross profit of $5.4 million. For the same period
in 2014, we sold 32.3 million gallons at an average retail motor fuel gross
margin of $0.052 per gallon, net of commissions and credit card fees, resulting
in a retail gross profit of $1.7 million. The increase in retail gross profit
from retail motor fuel sales for the second quarter of 2015 relative to 2014 was
due primarily to the PMI and Erickson acquisitions. During the quarter, we also
generated $9.9 million in gross margin from the sale of food and merchandise
from our PMI and Erickson acquisitions. For the same period in 2014, we
generated $3.2 million in gross margin from the sale of food and merchandise.
Non-GAAP Metrics
Distributable Cash Flow (See Supplemental Disclosure Regarding Non-GAAP
Financial Information below) was $14.3 million for the three month period ended
June 30, 2015 compared to $13.5 million for the same period in 2014. The
increase in Distributable Cash Flow was due primarily to an increase in earnings
driven primarily by the 2014 and 2015 acquisitions, including the fuel drop
executed in January 2015, when compared to the same period in 2014.
Distributable Cash Flow per diluted limited partner unit was $0.57 for the three
months ended June 30, 2015 and we made limited partner distribution per unit of
$0.5475 during the quarter, resulting in a Distribution Coverage Ratio of 1.04
times.
Sale ("Dropdown") of CST Wholesale Fuel Supply Equity Interests and NTI
Convenience Stores
On July 1, 2015, we closed on the purchase of an additional 12.5% limited
partner equity interest in CST Fuel Supply in exchange for approximately 3.3
million common units and cash in the amount of $17.5 million, an aggregate
consideration of $110.9 million. We also completed the purchase of the real
property at 29 new-to-industry stores (NTIs) from CST in exchange for 0.3
million common units and cash in the amount of $124.4 million, an aggregate
consideration of $134 million. These transactions were approved by the
conflicts committee of the General Partner and the executive committee and full
Board of Directors of CST.
As of August 5, 2015, CrossAmerica's total equity interest in CST Fuel Supply is
17.5%.
Liquidity and Capital Resources
Our revolving credit facility is secured by substantially all of the assets of
CrossAmerica and its subsidiaries. As of June 30, 2015, after taking into
account letters of credit and debt covenant constraints to availability,
approximately $139.5 million was available for future borrowings. Subsequent to
the July 2015 acquisitions, the availability for future borrowings was
approximately $98.9 million. In connection with future acquisitions, the
revolving credit facility requires, among other things, that we have, after
giving effect to such acquisition, at least $20 million of borrowing
availability under the revolving credit facility and unrestricted cash on the
balance sheet on the date of such acquisition.
Distributions
The Board of the Directors of our General Partner declared a quarterly
distribution of $0.5475 per unit on June 5, 2015 with respect to the first
quarter of 2015. The distribution was paid on June 19, 2015 to all unitholders
of record as of June 15, 2015. We anticipate that the Board of Directors will
consider the declaration of future distributions with respect to the second
quarter of 2015 at its next scheduled Board meeting in September to align the
distribution declaration and payment with CST's dividend declaration and payment
schedule. The amount and timing of any distribution is subject to the
discretion of the Board of Directors of our General Partner.
Conference Call
The Company will host a conference call on August 7, 2015 at 9:00 a.m. Eastern
Time (8:00 a.m. Central Time) to discuss second quarter earnings results. The
conference call numbers are 800-774-6070 or 630-691-2753 and the passcode for
both is 5854571#. A live audio webcast of the conference call and the related
earnings materials, including reconciliations of any non-GAAP financial measures
to GAAP financial measures and any other applicable disclosures, will be
available on that same day on the investor section of the CrossAmerica website
(www.crossamericapartners.com). A slide presentation for the conference call
will also be available on the investor section of the Company's website. To
listen to the audio webcast, go to http://www.crossamericapartners.com/en-
us/investors/eventsandpresentations. After the live conference call, a replay
will be available for a period of thirty days. The replay numbers are
888-843-7419 or 630-652-3042 and the passcode for both is 5854571#. An archive
of the webcast will be available on the investor section of the CrossAmerica
website at www.crossamericapartners.com/en-us/investors/eventsandpresentations
within 24 hours after the call for a period of sixty days.
CROSSAMERICA PARTNERS LP
CONSOLIDATED STATEMENTS OF INCOME
(Thousands of Dollars, Except per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ------------------------------
2015 2014 2015 2014
------------- ------------- --------------- --------------
Operating
revenues((a)) $ 647,448 $ 763,845 $ 1,125,217 $ 1,245,866
Cost of sales((b)) 609,147 736,897 1,051,920 1,202,251
------------- ------------- --------------- --------------
Gross profit 38,301 26,948 73,297 43,615
------------- ------------- --------------- --------------
Income from CST Fuel
Supply 1,177 - 2,275 -
Operating expenses:
Operating expenses 16,435 7,475 30,172 9,643
General and
administrative
expenses 8,380 10,682 19,698 15,209
Depreciation,
amortization and
accretion expense 11,411 7,270 22,913 13,236
------------- ------------- --------------- --------------
Total operating
expenses 36,226 25,427 72,783 38,088
------------- ------------- --------------- --------------
Gain on sales of
assets, net 422 53 452 1,533
------------- ------------- --------------- --------------
Operating income 3,674 1,574 3,241 7,060
Other income, net 190 119 249 223
Interest expense (4,743 ) (3,712 ) (9,021 ) (7,739 )
------------- ------------- --------------- --------------
Income (loss) before
income taxes (879 ) (2,019 ) (5,531 ) (456 )
Income tax expense
(benefit) (907 ) (3,911 ) (2,588 ) (3,776 )
------------- ------------- --------------- --------------
Consolidated net
income (loss) 28 1,892 (2,943 ) 3,320
Net loss
attributable to
noncontrolling
interests 2 - 7 -
------------- ------------- --------------- --------------
Net income (loss)
attributable to
CrossAmerica limited
partners 30 1,892 (2,936 ) 3,320
--------------------------- ------------------------------
Distributions to
incentive
distribution right
holders (195 ) (31 ) (365 ) (62 )
--------------------------- ------------------------------
Net income (loss)
available to
CrossAmerica limited
partners $ (165 ) $ 1,861 $ (3,301 ) $ 3,258
------------- ------------- --------------- --------------
Net income
(loss) per
CrossAmerica limited
partner unit:
Basic earnings per
common unit $ (0.01 ) $ 0.10 $ (0.13 ) $ 0.17
Diluted earnings per
common unit $ (0.01 ) $ 0.10 $ (0.13 ) $ 0.17
Basic and diluted
earnings per
subordinated unit $ (0.01 ) $ 0.10 $ (0.13 ) $ 0.17
Weighted-average
CrossAmerica limited
partner units:
Basic common units 17,582,365 11,194,203 17,260,533 11,155,140
Diluted common
units((c)) 17,629,855 11,194,203 17,354,742 11,171,076
Basic and diluted
subordinated units 7,525,000 7,525,000 7,525,000 7,525,000
------------- ------------- --------------- --------------
Total diluted common
and subordinated
units((c)) 25,154,855 18,719,203 24,879,742 18,696,076
------------- ------------- --------------- --------------
Distribution per
common and
subordinated units $ 0.5475 $ 0.5125 $ 1.0900 $ 1.0250
Supplemental
information:
(a) Includes excise
taxes of: $ 26,714 $ 17,269 $ 47,224 $ 25,584
(a) Includes
revenues from fuel
sales to related
parties of: $ 139,216 $ 237,173 $ 238,140 $ 435,384
(a) Includes income
from rentals of: $ 11,920 $ 10,763 $ 23,652 $ 21,458
(b) Includes
expenses from fuel
sales to related
parties of: $ 135,431 $ 232,222 $ 231,471 $ 426,849
(b) Includes
expenses from
rentals of: $ 4,408 $ 3,976 $ 7,930 $ 7,791
(c) Diluted common units are not used in the calculation of diluted earnings per
common unit because to do so would be
antidilutive.
Segment Results
Wholesale
The following table highlights the results of operations and certain operating
metrics of our Wholesale segment (thousands of dollars, except for the number of
distribution sites and per gallon amounts):
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ----------------------------
2015 2014 2015 2014
------------- ------------- ------------- --------------
Operating revenues:
Motor fuel-third party $ 306,360 $ 411,135 $ 537,971 $ 654,617
Motor fuel- 248,411 292,450 414,674 511,540
intersegment and
related party
------------- ------------- ------------- --------------
Motor fuel operating 554,771 703,585 952,645 1,166,157
revenues
Other((a)) 10,920 9,990 22,129 19,768
------------- ------------- ------------- --------------
Total operating $ 565,691 $ 713,575 $ 974,774 $ 1,185,925
revenues
------------- ------------- ------------- --------------
Gross profit:
Motor fuel-third party $ 6,521 $ 8,254 $ 13,669 $ 12,937
Motor fuel- 8,076 6,776 14,060 11,453
intersegment and
related party
------------- ------------- ------------- --------------
Motor fuel gross 14,597 15,030 27,729 24,390
profit
Other((b)) 6,941 6,244 14,908 12,386
------------- ------------- ------------- --------------
Total gross profit 21,538 21,274 42,637 36,776
------------- ------------- ------------- --------------
Income from CST Fuel 1,177 - 2,275 -
Supply((c))
Operating expenses 4,267 4,970 7,990 6,803
Depreciation, 7,672 6,290 16,445 11,769
amortization and
accretion expense
Gain on sales of 422 53 452 1,533
assets, net
------------- ------------- ------------- --------------
Operating income $ 11,198 $ 10,067 $ 20,929 $ 19,737
------------- ------------- ------------- --------------
Adjusted EBITDA((j)) $ 18,448 $ 16,304 $ 36,922 $ 29,973
Motor fuel
distribution sites
(end of period):((d))
Motor fuel-third party
Independent 379 430 379 430
dealers((e))
Lessee dealers 235 202 235 202
------------- ------------- ------------- --------------
Total motor fuel 614 632 614 632
sites-third party
------------- ------------- ------------- --------------
Motor fuel-
intersegment and
related party
Affiliated dealers 199 234 199 234
(related party)
CST (related party) 43 - 43 -
Commission agents 70 67 70 67
(retail segment)
Retail convenience 124 87 124 87
stores (retail
segment)
------------- ------------- ------------- --------------
Total motor fuel 436 388 436 388
sites-intersegment and
related party
------------- ------------- ------------- --------------
Motor fuel
distribution sites
(average during the
period):
Motor fuel-third party 608 539 613 509
sites
Motor fuel-related 447 365 441 340
party sites
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ------------------------
2015 2014 2015 2014
------------ ------------ ------------ -----------
Total volume of gallons 277,126 222,850 510,938 382,431
distributed (in thousands)
Motor fuel gallons
distributed per site per
day:((f))
Motor fuel-third party sites
Total weighted average motor 2,567 2,589 2,434 2,220
fuel distributed-third party
sites
Independent dealers 2,966 2,989 2,781 2,483
Lessee dealers 1,885 1,908 1,801 1,804
Motor fuel-intersegment and
related party sites
Total weighted average motor 3,084 2,456 2,800 2,443
fuel distributed-
intersegment
and related party
sites((g))
Affiliated dealers (related 2,609 2,765 2,457 2,528
party)
CST (related party) 5,239 - 5,163 -
Commission agents (retail 2,992 2,905 2,860 2,949
segment)
Retail convenience stores 3,143 675 2,563 679
(retail segment)((h))
Wholesale margin per gallon- $ 0.0527 $ 0.0674 $ 0.0543 $ 0.0638
total system
Wholesale margin per gallon- $ 0.0430 $ 0.0584 $ 0.0475 $ 0.0557
third party((i))
Wholesale margin per gallon- $ 0.0644 $ 0.0832 $ 0.0629 $ 0.0763
intersegment and related
party
(a) Primarily consists of rental income.
(b) Primarily consists of rental income, net of rent expense on subleased
properties.
(c) Represents distributions from our ownership in CST Fuel
Supply.
(d) In addition, we distribute motor fuel to 14 sub-wholesalers who distribute
to additional sites.
(e) The decline in the independent dealer site count was primarily
attributable to 29 terminated motor fuel supply contracts that were not
renewed as well as the motor fuel supply contracts related to 13 sites
for which we supplied the motor fuel sold to DMS.
(f) Includes 56.8 million and 19.7 million gallons of intersegment volumes
distributed from our wholesale segment to our retail segments three months ended
June 30, 2015 and 2014, respectively. Includes 96.2 million and 34.9 million
gallons of intersegment volumes distributed from our wholesale segment to our
retail segments for the six months ended June 30, 2015 and 2014, respectively.
(g) Does not include the motor fuel gallons distributed to 14 sub-
wholesalers.
(h) Motor fuel gallons distributed per site per day increased at our retail
convenience stores as a result of the 87 sites acquired in the May
2014 PMI acquisition and 64 sites acquired in the February 2015
Erickson acquisition. The remaining portion of the increase is due
to sites that were dealerized during the period.
(i) Includes the wholesale gross margin for motor fuel distributed to 14
sub-wholesalers.
(j) Adjusted EBITDA represents operating income adjusted to exclude gains on
sales of assets, net and depreciation, amortization and accretion expense.
Please see the reconciliation of our segment's Adjusted EBITDA to consolidated
net income under the heading "Supplemental Disclosure Regarding Non-GAAP
Financial Measures."
Retail
The following table highlights the results of operations and certain operating
metrics of our Retail segment (thousands of dollars, except for the number of
convenience stores and per gallon amounts):
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- --------------------------
2015 2014 2015 2014
------------- ------------- ------------- ------------
Operating revenues:
Motor fuel $ 147,207 $ 117,229 $ 253,400 $ 170,531
Merchandise 41,864 13,903 69,849 13,903
Other((a)) 1,881 1,096 3,728 2,150
------------- ------------- ------------- ------------
Total operating revenues $ 190,952 $ 132,228 $ 326,977 $ 186,584
------------- ------------- ------------- ------------
Gross profit:
Motor fuel $ 5,422 $ 1,670 $ 10,139 $ 1,991
Merchandise 9,889 3,174 17,664 3,174
Other 1,452 830 2,857 1,674
------------- ------------- ------------- ------------
Total gross profit 16,763 5,674 30,660 6,839
------------- ------------- ------------- ------------
Operating expenses 12,168 2,505 22,182 2,840
Depreciation,
amortization and
accretion expense 3,739 980 6,468 1,467
------------- ------------- ------------- ------------
Operating income $ 856 $ 2,189 $ 2,010 $ 2,532
------------- ------------- ------------- ------------
Adjusted EBITDA((f)) $ 4,595 $ 4,652 $ 9,184 $ 5,482
Retail sites (end of
period):
Commission agents((b)) 70 67 70 67
Company operated
convenience stores((c),
(d)) 124 87 124 87
--------------------------- ------------- ------------
Total system sites at
the end of the period 194 154 194 154
--------------------------- ------------- ------------
Total system operating
statistics:
Average retail sites
during the period((d)) 206 119 205 88
Motor fuel sales
(gallons per site per
day) 3,057 2,977 2,800 2,996
Motor fuel gross profit
per gallon, net of
credit card fees and
commissions $ 0.0946 $ 0.0520 $ 0.0978 $ 0.0420
Commission agents
statistics:
Average retail sites
during the period 71 61 72 59
Motor fuel sales
(gallons per site per
day) 3,005 3,133 2,867 3,071
Motor fuel gross profit
per gallon, net of
credit card fees and
commissions $ 0.0209 $ 0.0153 $ 0.0297 $ 0.0175
Company operated
convenience store retail
site statistics:((d))
Average retail sites
during the period 135 58 132 29
Motor fuel sales
(gallons per site per
day) 3,085 2,814 2,763 2,814
Motor fuel gross profit
per gallon, net of
credit card fees $ 0.1326 $ 0.0931 $ 0.1365 $ 0.0931
Merchandise sales (per
site per day)((e)) $ 3,414 $ 2,620 $ 2,920 $ 2,620
Merchandise gross profit
percentage, net of
credit card fees((e)) 23.6 % 22.8 % 25.3 % 22.8 %
a) Primarily consists of rental income and car wash revenues.
b) A commission agent site is a site where we own or lease the property and
then lease or sublease the site to the commission agent, who pays rent to us and
operates all of the non-fuel related operations at the sites for their own
account.
c) Our company operated retail convenience stores are classified as non-core
to the consolidated operations of CST.
d) The increase in retail sites relates to 87 sites acquired in the May
2014 PMI acquisition and 64 sites acquired in the February 2015 Erickson
acquisition.
(e) During the second quarter of 2015, CrossAmerica began classifying the net
margin from lottery tickets within merchandise revenues and reflected this
change in presentation retrospectively.
(f) Adjusted EBITDA represents operating income adjusted to exclude
depreciation, amortization and accretion expense and inventory fair value
adjustments related to purchase accounting. Please see the reconciliation of our
segment's Adjusted EBITDA to consolidated net income under the heading
"Supplemental Disclosure Regarding Non-GAAP Financial Measures."
Supplemental Disclosure Regarding Non-GAAP Financial Measures
We use the non-GAAP financial measures EBITDA, Adjusted EBITDA, and
Distributable Cash Flow in this report. EBITDA represents net income before
deducting interest expense, income taxes and depreciation, amortization and
accretion. Adjusted EBITDA represents EBITDA as further adjusted to exclude
equity funded expenses related to incentive compensation and the Amended Omnibus
Agreement, gains or losses on sales of assets, certain discrete acquisition
related costs, such as legal and other professional fees and severance expenses
associated with recently acquired companies, and certain other discrete non-cash
items, such as inventory fair value adjustments arising from purchase
accounting. Distributable Cash Flow represents Adjusted EBITDA less cash
interest expense, sustaining capital expenditures and current income tax
expense.
EBITDA, Adjusted EBITDA, and Distributable Cash Flow are used as supplemental
financial measures by management and by external users of our financial
statements, such as investors and lenders. EBITDA and Adjusted EBITDA are used
to assess our financial performance without regard to financing methods, capital
structure or income taxes and our ability to incur and service debt and to fund
capital expenditures. In addition, Adjusted EBITDA is used to assess the
operating performance of our business on a consistent basis by excluding the
impact of items which do not result directly from our wholesale distribution of
motor fuel, the leasing of real property, or the day to day operations of our
retail convenience store activities. EBITDA, Adjusted EBITDA, and Distributable
Cash Flow are also used to assess our ability to generate cash sufficient to
make distributions to our unit-holders.
We believe the presentation of EBITDA, Adjusted EBITDA, and Distributable Cash
Flow provides useful information to investors in assessing our financial
condition and results of operations. EBITDA, Adjusted EBITDA, and Distributable
Cash Flow should not be considered alternatives to net income or any other
measure of financial performance or liquidity presented in accordance with U.S.
GAAP. EBITDA, Adjusted EBITDA, and Distributable Cash Flow have important
limitations as analytical tools because they exclude some but not all items that
affect net income. Additionally, because EBITDA, Adjusted EBITDA, and
Distributable Cash Flow may be defined differently by other companies in our
industry, our definitions may not be comparable to similarly titled measures of
other companies, thereby diminishing their utility.
The following table presents reconciliations of EBITDA, Adjusted EBITDA, and
Distributable Cash Flow to net income, the most directly comparable U.S. GAAP
financial measure, for each of the periods indicated (in thousands, except for
per unit amounts):
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ------------------------
2015 2014 2015 2014
------------ ------------ ------------ -----------
Net income (loss) available
to CrossAmerica limited
partners $ (165 ) $ 1,861 $ (3,301 ) $ 3,258
Interest expense 4,743 3,712 9,021 7,739
Income tax expense (benefit) (907 ) (3,911 ) (2,588 ) (3,776 )
Depreciation, amortization
and accretion 11,411 7,270 22,913 13,236
------------ ------------ ------------ -----------
EBITDA $ 15,082 $ 8,932 $ 26,045 $ 20,457
Equity funded expenses
related to incentive
compensation and the Amended
Omnibus Agreement((a)) 3,250 1,136 6,192 2,050
Gain on sales of assets, net (422 ) (53 ) (452 ) (1,533 )
Acquisition costs((b)) 1,150 5,638 2,152 5,951
Inventory fair value
adjustments - 1,483 706 1,483
------------ ------------ ------------ -----------
Adjusted EBITDA $ 19,060 $ 17,136 $ 34,643 $ 28,408
Cash interest expense (4,006 ) (3,321 ) (7,915 ) (6,365 )
Sustaining capital
expenditures((c)) (307 ) (425 ) (827 ) (984 )
Current income tax expense (428 ) 79 (1,487 ) (65 )
------------ ------------ ------------ -----------
Distributable Cash Flow
Available to Limited
Partners $ 14,319 $ 13,469 $ 24,414 $ 20,994
------------ ------------ ------------ -----------
Diluted common and
subordinated units 25,155 18,719 24,880 18,696
Distributable Cash Flow per
diluted limited partner unit $ 0.5692 $ 0.7195 $ 0.9813 $ 1.1229
Distributions paid per
limited partner unit $ 0.5475 $ 0.5125 $ 1.0900 $ 1.0250
Distribution coverage 1.04 x 1.40 x 0.90 x 1.10 x
(a) As approved by the independent conflicts committee of the General Partner
and the executive committee of and CST's board of directors,
CrossAmerica and CST mutually agreed to settle the second quarter 2015
amounts due under the terms of the Amended Omnibus
Agreement in limited partnership units.
(b) Relates to certain discrete acquisition related costs, such as legal and
other professional fees and severance expenses associated with recently acquired
businesses.
(c) Under our Partnership agreement, sustaining capital expenditures are
capital expenditures made to maintain our long-term operating income or
operating capacity. Examples of sustaining capital expenditures are those made
to maintain existing contract volumes, including payments to renew existing
distribution contracts, or to maintain our sites in leasable condition, such as
parking lot or roof replacement/renovation, or to replace equipment required to
operate our existing business.
The following table reconciles segment Adjusted EBITDA to consolidated net
income (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ------------------------
2015 2014 2015 2014
------------ ------------ ------------ -----------
Wholesale Segment
Adjusted EBITDA $ 18,448 $ 16,304 $ 36,922 $ 29,973
Retail Segment
Adjusted EBITDA $ 4,595 $ 4,652 $ 9,184 $ 5,482
Total Segment
------------ ------------ ------------ -----------
Adjusted EBITDA $ 23,043 $ 20,956 $ 46,106 $ 35,455
------------ ------------ ------------ -----------
Reconciling items:
General and administrative
expenses (8,380 ) (10,682 ) (19,698 ) (15,209 )
Gain on sales of assets, net 422 53 452 1,533
Other income, net 190 119 249 223
Interest expense (4,743 ) (3,712 ) (9,021 ) (7,739 )
Income tax benefit 907 3,911 2,588 3,776
Depreciation, amortization
and accretion expense (11,411 ) (7,270 ) (22,913 ) (13,236 )
Inventory fair value
adjustment - (1,483 ) (706 ) (1,483 )
------------ ------------ ------------ -----------
Consolidated net income $ 28 $ 1,892 $ (2,943 ) $ 3,320
------------ ------------ ------------ -----------
About CrossAmerica Partners LP
CrossAmerica Partners, headquartered in Allentown, PA, is a leading wholesale
distributor of motor fuels and owner and lessee of real estate used in the
retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is
a wholly owned subsidiary of CST Brands, Inc., one of the largest independent
retailers of motor fuels and convenience merchandise in North America. Formed in
2012, CrossAmerica Partners distributes fuel to over 1,100 locations and owns or
leases nearly 750 sites in twenty-one states: Pennsylvania, New Jersey, Ohio,
Florida, New York, Massachusetts, Kentucky, New Hampshire, Maine, Tennessee,
Maryland, Delaware, Illinois, Indiana, West Virginia, Virginia, Texas,
Minnesota, Michigan, Wisconsin, and South Dakota. The Partnership has long-term
established relationships with several major oil brands, including ExxonMobil,
BP, Shell, Chevron, Sunoco, Valero, Gulf and Citgo. CrossAmerica Partners ranks
as one of ExxonMobil's largest distributors by fuel volume in the United States
and in the top 10 for additional brands. For additional information, please
visit www.crossamericapartners.com.
Contacts
Investors: Karen Yeakel, Vice President - Investor Relations, 610-625-8005
Randy Palmer, Director - Investor Relations, 210-692-2160
Safe Harbor Statement
Statements contained in this release that state the Company's or management's
expectations or predictions of the future are forward-looking statements. The
words "believe," "expect," "should," "intends," "estimates," "target" and other
similar expressions identify forward-looking statements. It is important to note
that actual results could differ materially from those projected in such
forward-looking statements. For more information concerning factors that could
cause actual results to differ from those expressed or forecasted, see
CrossAmerica's Form 10-Q or Form 10-K filed with the Securities and Exchange
Commission, and available on the CrossAmerica's website at
www.crossamericapartners.com. The Partnership undertakes no obligation to
publicly update or revise any statements in this release, whether as a result of
new information, future events or otherwise.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: CrossAmerica Partners LP via GlobeNewswire
[HUG#1944352]
Unternehmensinformation / Kurzprofil:
Datum: 07.08.2015 - 13:06 Uhr
Sprache: Deutsch
News-ID 412346
Anzahl Zeichen: 42847
contact information:
Town:
Allentown
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 140 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"CrossAmerica Partners LP: Reports Second Quarter 2015 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
CrossAmerica Partners LP (Nachricht senden)
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