CrossAmerica Partners LP: Reports Second Quarter 2016 Results
(Thomson Reuters ONE) -
P
CrossAmerica Partners LP Reports Second Quarter 2016 Results
- Reported Second Quarter 2016 Net Income available to CrossAmerica limited
partners of $2.8
million compared to a Second Quarter 2015 Net Loss of $0.2 million
- Generated Second Quarter 2016 Adjusted EBITDA of $27.1 million, up 42%
over Second
Quarter 2015
- Generated Second Quarter 2016 Distributable Cash Flow of $21.2 million, up
48% over Second
Quarter 2015
- Announced a quarterly distribution of $0.6025 per unit attributable to the
second quarter of 2016,
a 7.1% increase compared with the distribution attributable to the second
quarter of 2015
- Reported Second Quarter 2016 Distribution Coverage Ratio of 1.07x versus
1.04x for the Second
Quarter 2015
Allentown, PA August 5, 2016 - CrossAmerica Partners LP (NYSE: CAPL)
("CrossAmerica" or the "Partnership"), a leading wholesale fuels distributor and
owner and lessor of real estate used in the retail distribution of motor fuels,
today reported financial results for the second quarter ended June 30, 2016.
"We successfully executed on our strategic, operational and financial goals for
the second quarter," said Jeremy Bergeron, President of CrossAmerica. "A strong
performance from our recently acquired stores, continued integration and cost
controls across our base business, and specific steps that we took to further
strengthen our balance sheet were evident in our results."
Three Months
Consolidated Results
Operating income was $9.4 million for the second quarter 2016 compared to $3.7
million achieved in the second quarter 2015. EBITDA was $23.1 million for the
three month period ended June 30, 2016, up 53% over the $15.1 million for the
same period in 2015. Adjusted EBITDA was $27.1 million for the second quarter
2016 compared to $19.1 million for the same period in 2015, representing an
increase of 42%. The increase in EBITDA and Adjusted EBITDA was due primarily
to an increase in the gross profit at CrossAmerica's wholesale segment from
rental income, as the Partnership continued to execute on its dealerization
strategy, moving acquired assets out of the retail segment to the wholesale
segment (non-GAAP measures, including EBITDA, as described are reconciled to the
corresponding GAAP measures in the Supplemental Disclosure section of this
release).
"By bringing in a lessee dealer to operate our sites, we stabilize cash flow by
removing the retail margin variability," said Bergeron. "In addition,
dealerization avails us of more qualifying income through dealer rent while
eliminating the labor and maintenance expense of operating the store."
Wholesale Segment
During the second quarter 2016, CrossAmerica distributed, on a wholesale basis,
265.9 million gallons of motor fuel at an average wholesale gross profit of
$0.054 per gallon, resulting in motor fuel gross profits of $14.3 million. For
the three month period ended June 30, 2015, CrossAmerica distributed, on a
wholesale basis, 277.1 million gallons of fuel at an average wholesale gross
profit of $0.053 per gallon, resulting in motor fuel gross profits of $14.6
million. The decrease in motor fuel gross profit was primarily due to the
decline in motor fuel gallons sold as a result of the Partnership's termination
of low margin wholesale fuel supply contracts and other assets acquired in the
PMI acquisition.
CrossAmerica's gross profit from its Other revenues for the wholesale segment,
which primarily consist of rental income, was $14.8 million for the second
quarter of 2016 compared to $9.5 million for the same period in 2015. The
increase in rental income was primarily associated with acquisitions completed
in 2015 and the continued conversion of company-operated stores to lessee dealer
sites.
The Partnership recorded $4.2 million in income from its 17.5% equity interest
in CST Fuel Supply LP in the second quarter of 2016, compared to $1.2 million
for the same period in 2015. The increase is a result of the additional 12.5%
interest acquired in July 2015.
Adjusted EBITDA for the wholesale segment was $25.9 million for the second
quarter of 2016 compared to $17.7 million for the same period in 2015. The $8.2
million increase was primarily driven by an increase in rental income, income
from the Partnership's equity interest in CST Fuel Supply and a reduction in
overall operating expenses, partially offset by a decrease in fuel profit as
discussed above (see Supplemental Disclosure Regarding Non-GAAP Financial
Information below).
Retail Segment
For the second quarter 2016, the Partnership sold 40.8 million gallons of motor
fuel at an average retail motor fuel gross profit of $0.058 per gallon, net of
commissions and credit card fees, resulting in motor fuel gross profits of $2.4
million. For the same period in 2015, CrossAmerica sold 57.3 million gallons in
its retail segment at an average gross profit of $0.081 per gallon, net of
commissions and credit card fees, resulting in motor fuel gross profit of $4.6
million. The decrease in motor fuel gross profit was primarily attributable to
a 29% decrease in fuel volumes due to the dealerization of sites.
During the quarter, the Partnership generated $8.0 million in gross profit from
the sale of food and merchandise versus $11.4 million for the same period in
2015. The decrease in merchandise gross profit was also primarily due to
converting company-operated stores to dealer-operated sites.
Adjusted EBITDA for the retail segment was $2.7 million for the second quarter
of 2016 compared to $4.6 million for the same period in 2015. The decrease was
primarily caused by the continued conversion of company-operated stores to
dealer sites (see Supplemental Disclosure Regarding Non-GAAP Financial
Information below).
Distributable Cash Flow and Distribution Coverage Ratio
Distributable Cash Flow was $21.2 million for the three month period ended
June 30, 2016 compared to $14.3 million for the same period in 2015. The
increase in Distributable Cash Flow was due primarily to an increase in earnings
driven by acquisitions in addition to lower operating and general and
administrative expenses. Distributable Cash Flow per diluted limited partner
unit was $0.6368 for the three months ended June 30, 2016 and the Partnership
paid a limited partner distribution per unit of $0.5975 during the quarter,
resulting in a Distribution Coverage Ratio of 1.07 times for the three months
ended June 30, 2016 (see Supplemental Disclosure Regarding Non-GAAP Financial
Information below).
Six Months
Operating income was $15.3 million for the six months ended June 30, 2016
compared to $3.2 million achieved in the same period of 2015. EBITDA was $41.3
million for the six month period ended June 30, 2016, up 59% over the $26.0
million for the same period in 2015. Adjusted EBITDA was $49.3 million for the
six month period ended June 30, 2016 compared to $34.6 million for the same
period in 2015, representing an increase of 42%. The increase in EBITDA and
Adjusted EBITDA was due primarily to an increase in the gross profit at the
Partnership's wholesale segment primarily driven by an increase in rental
income, income from the Partnership's equity interest in CST Fuel Supply and a
reduction in overall operating expenses (see Supplemental Disclosure Regarding
Non-GAAP Financial Information below).
Subsequent Events
Refund payment related to CST sale of California and Wyoming Assets
On July 7, 2016, CrossAmerica announced that CST provided a refund payment to
the purchase price paid by the Partnership for its 17.5% interest in CST Fuel
Supply resulting from the sale by CST of 79 retail sites in California and
Wyoming to 7-Eleven, to which CST Fuel Supply no longer supplies motor fuel. The
purpose of the refund payment was to make CrossAmerica whole for the decrease in
the value of its interest in CST Fuel Supply arising from sales volume
decreases. The total refund payment received by the Partnership, as approved by
the independent conflicts committee of the Board and by the executive committee
of the board of directors of CST, was approximately $18.2 million.
Acquisition of State Oil Assets
On July 15, 2016, CrossAmerica entered into a definitive agreement to acquire
certain assets of State Oil Company, consisting of 55 lessee dealer accounts,
25 independent dealer accounts, three company-operated locations, two non-fuel
sites and certain other assets located in the greater Chicago market for
approximately $45 million, including working capital. The acquisition is subject
to customary conditions to closing and is expected to close in the third quarter
of 2016.
Liquidity and Capital Resources
As of August 3, 2016, after taking into consideration debt covenant constraints,
approximately $101 million was available for future borrowings under the
Partnership's revolving credit facility. In connection with future acquisitions,
the revolving credit facility requires, among other things, that CrossAmerica
have, after giving effect to such acquisition, at least, in the aggregate, $20
million of borrowing availability under the revolving credit facility and
unrestricted cash on the balance sheet on the date of such acquisition.
Distributions
On July 28, 2016, the Board of the Directors of CrossAmerica's General Partner
declared a quarterly distribution of $0.6025 per limited partner unit
attributable to the second quarter of 2016. As previously announced, the
distribution will be paid on August 15, 2016 to all unitholders of record as of
August 8, 2016. The amount and timing of any future distributions is subject to
the discretion of the Board of Directors of CrossAmerica's General Partner.
Based on current expectations, CrossAmerica anticipates growing per unit
distributions in 2016 by 5%-7% over 2015 levels while targeting the long-term
goal of maintaining an annual coverage ratio of at least 1.1x.
Conference Call
The Partnership will host a conference call on August 5, 2016 at 9:30 a.m.
Eastern Time (8:30 a.m. Central Time) to discuss 2016 second quarter earnings
results. The conference call numbers are 888-517-2513 or 847-619-6533 and the
passcode for both is 5854572#. 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
Partnership'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 5854572#. 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 OPERATIONS
(Thousands of Dollars, Except per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
--------------------------- --------------------------------
June 30, June 30,
--------------------------- --------------------------------
2016 2015 2016 2015
------------- ------------- ------------- ------------------
Operating
revenues((a)) $ 512,644 $ 650,136 $ 880,384 $ 1,130,593
Cost of sales((b)) 472,129 608,965 802,679 1,051,695
------------- ------------- ------------- ------------------
Gross profit 40,515 41,171 77,705 78,898
------------- ------------- ------------- ------------------
Income from CST
Fuel Supply equity 4,245 1,177 8,296 2,275
Operating
expenses:
Operating expenses 16,119 20,071 31,530 37,411
General and
administrative
expenses 4,921 7,614 11,926 18,060
Depreciation,
amortization and
accretion expense 14,262 11,411 27,162 22,913
------------- ------------- ------------- ------------------
Total operating
expenses 35,302 39,096 70,618 78,384
------------- ------------- ------------- ------------------
Gain (loss) on
sales of assets,
net (102 ) 422 (106 ) 452
------------- ------------- ------------- ------------------
Operating income 9,356 3,674 15,277 3,241
Other income, net 316 190 434 249
Interest expense (5,704 ) (4,743 ) (10,769 ) (9,021 )
------------- ------------- ------------- ------------------
Income (loss)
before income
taxes 3,968 (879 ) 4,942 (5,531 )
Income tax expense
(benefit) 338 (907 ) (457 ) (2,588 )
------------- ------------- ------------- ------------------
Consolidated net
income (loss) 3,630 28 5,399 (2,943 )
Net income (loss)
attributable to
noncontrolling
interests 4 (2 ) 6 (7 )
------------- ------------- ------------- ------------------
Net income (loss)
attributable to
CrossAmerica
limited
partners 3,626 30 5,393 (2,936 )
------------- ------------- ------------- ------------------
Distributions to
CST as holder of
the incentive
distribution
rights (820 ) (195 ) (1,579 ) (365 )
------------- ------------- ------------- ------------------
Net income (loss)
available to
CrossAmerica
limited partners $ 2,806 $ (165 ) $ 3,814 $ (3,301 )
------------- ------------- ------------- ------------------
Net income (loss)
per CrossAmerica
limited partner
unit:
Basic earnings per
common unit $ 0.08 $ (0.01 ) $ 0.11 $ (0.13 )
Diluted earnings
per common unit $ 0.08 $ (0.01 ) $ 0.11 $ (0.13 )
Basic and diluted
earnings per
subordinated unit $ - $ (0.01 ) $ 0.11 $ (0.13 )
Weighted-average
CrossAmerica
limited partner
units:
Basic common units 33,283,489 17,582,365 30,879,426 17,260,533
Diluted common
units ((c)) 33,292,023 17,629,855 30,928,204 17,354,742
Basic and diluted
subordinated units - 7,525,000 2,315,385 7,525,000
------------- ------------- ------------- ------------------
Total diluted
common and
subordinated units
((c)) 33,292,023 25,154,855 33,243,589 24,879,742
------------- ------------- ------------- ------------------
Distribution paid
per common and
subordinated units $ 0.5975 $ 0.5475 $ 1.1900 $ 1.0900
Distribution
declared (with
respect to each
respective period)
per common and
subordinated units $ 0.6025 $ 0.5625 $ 1.2000 $ 1.1100
Supplemental
information:
(a) Includes
excise taxes of: $ 20,311 $ 26,714 $ 40,204 $ 47,224
(a) Includes
revenues from fuel
sales to related
parties of: $ 107,131 $ 139,216 $ 180,439 $ 238,140
(a) Includes
income from
rentals of: $ 20,351 $ 14,608 $ 39,882 $ 29,028
(b) Includes
expenses from fuel
sales to related
parties of: $ 103,513 $ 135,431 $ 173,765 $ 231,471
(b) Includes
expenses from
rentals of: $ 5,019 $ 4,408 $ 9,767 $ 7,930
(c) Diluted common units are not used in the calculation of diluted earnings
per common unit for the three and six months ended June 30, 2015 because to do
so would be antidilutive.
Segment Results
Wholesale
The following table highlights the results of operations and certain operating
metrics of the 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,
------------------------- ------------------------
2016 2015 2016 2015
------------ ------------ ------------ -----------
Gross profit:
Motor fuel-third party $ 7,512 $ 6,521 $ 13,126 $ 13,669
Motor fuel-intersegment and
related party 6,807 8,076 12,918 14,060
------------ ------------ ------------ -----------
Motor fuel gross profit 14,319 14,597 26,044 27,729
Rent and other((a)) 14,770 9,476 28,899 19,978
------------ ------------ ------------ -----------
Total gross profit 29,089 24,073 54,943 47,707
------------ ------------ ------------ -----------
Income from CST Fuel Supply 8,296 2,275
equity((b)) 4,245 1,177
Operating expenses((a)) 7,434 7,568 13,298 14,698
------------ ------------ ------------ -----------
Adjusted EBITDA((c)) $ 25,900 $ 17,682 $ 49,941 $ 35,284
Motor fuel distribution
sites (end of period):((d))
Motor fuel-third party
Independent dealers((e)) 384 379 384 379
Lessee dealers((f)) 361 235 361 235
------------ ------------ ------------ -----------
Total motor fuel
distribution-third party
sites 745 614 745 614
------------ ------------ ------------ -----------
Motor fuel-intersegment and
related party
Affiliated dealers (related
party) 184 199 184 199
CST (related party) 43 43 43 43
Commission agents (Retail
segment) 65 70 65 70
Company-operated retail
convenience stores (Retail
segment)((g)) 77 124 77 124
------------ ------------ ------------ -----------
Total motor fuel
distribution-intersegment
and
related party sites 369 436 369 436
------------ ------------ ------------ -----------
Motor fuel distribution sites (average
during the period):
Motor fuel-third party
distribution 739 609 711 612
Motor fuel-intersegment and
related party
distribution 380 445 393 431
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ----------------------
2016 2015 2016 2015
----------- ----------- ----------- ----------
Total volume of gallons
distributed (in thousands) 265,910 277,126 502,072 510,938
Motor fuel gallons distributed
per site per day:((h))
Motor fuel-third party
Total weighted average motor
fuel distributed-third
party 2,287 2,565 2,201 2,437
Independent dealers 2,441 2,964 2,385 2,784
Lessee dealers 2,118 1,883 1,985 1,805
Motor fuel-intersegment and
related party
Total weighted average motor
fuel distributed-
intersegment and related party 3,051 3,094 2,857 2,861
Affiliated dealers (related
party) 2,591 2,611 2,457 2,460
CST (related party) 5,250 5,239 5,016 4,999
Commission agents (Retail
segment) 3,167 2,988 2,968 2,861
Company-operated retail
convenience stores (Retail
segment) 2,858 3,173 2,598 2,784
Wholesale margin per gallon-
total system $ 0.054 $ 0.053 $ 0.052 $ 0.054
Wholesale margin per gallon-
third party((i)) $ 0.047 $ 0.043 $ 0.044 $ 0.048
Wholesale margin per gallon-
intersegment and related
party $ 0.065 $ 0.064 $ 0.063 $ 0.063
(a) Prior to 2016, CrossAmerica netted lease executory costs such as real estate
taxes, maintenance, and utilities that CrossAmerica paid and re-billed to
customers on its statement of operations. During the first quarter of 2016,
CrossAmerica began accounting for such amounts as rent income and operating
expenses and reflected this change in presentation retrospectively. This change
resulted in a $2.5 million and $5.1 million increase in rent and other income
and operating expenses for the three and six months ended June 30, 2015.
(b) Represents income from our equity interest in CST Fuel Supply.
(c) Please see the reconciliation of our segment's Adjusted EBITDA to
consolidated net income under the heading "Results of Operations-
Non-GAAP Financial Measures.
(d) In addition, as of June 30, 2016 and 2015, we distributed motor fuel to 15
and 14 sub-wholesalers, respectively, who distribute to additional sites.
(e) The increase in the independent dealer site count was primarily attributable
to 21 independent dealer contracts assigned to us by CST and
nine wholesale fuel supply contracts acquired in the One Stop acquisition,
partially offset by 25 terminated motor fuel supply contracts that were not
renewed.
(f) The increase in the lessee dealer site count was primarily attributable to
converting 122 company-operated convenience stores in our Retail segment to
the lessee dealer customer group in our Wholesale segment between June 30, 2015
and June 30, 2016.
(g) The decrease in the company-operated retail site count was primarily
attributable to 122 company-operated convenience stores being converted to
dealer sites between June 30, 2015 and June 30, 2016, partially offset by the
41 sites acquired in the July 2015 One Stop acquisition and the 31 sites
acquired in the March 2016 Holiday acquisition.
(h) Does not include the motor fuel gallons distributed to sub-wholesalers.
(i) Includes the wholesale gross margin for motor fuel distributed to sub-
wholesalers.
Retail
The following table highlights the results of operations and certain operating
metrics of the 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,
----------------------- ----------------------
2016 2015 2016 2015
----------- ----------- ----------- ----------
Gross profit:
Motor fuel $ 2,361 $ 4,629 $ 4,890 $ 9,346
Merchandise and services 8,033 11,397 15,748 19,859
Other 1,019 1,072 1,992 2,148
----------- ----------- ----------- ----------
Total gross profit 11,413 17,098 22,630 31,353
----------- ----------- ----------- ----------
Operating expenses (8,685 ) (12,503 ) (18,232 ) (22,713 )
Inventory fair value
adjustments((a)) - - 91 706
----------- ----------- ----------- ----------
Adjusted EBITDA((b)) $ 2,728 $ 4,595 $ 4,489 $ 9,346
----------- ----------- ----------- ----------
Retail sites (end of period):
Commission agents 65 70 65 70
Company-operated convenience
stores((c)) 80 124 80 124
----------- ----------- ----------- ----------
Total system sites at the end of
the period 145 194 145 194
----------- ----------- ----------- ----------
Total system operating
statistics:
Average retail sites during the
period((c)) 150 206 162 198
Motor fuel sales (gallons per
site per day) 2,984 3,055 2,751 2,892
Motor fuel gross profit per
gallon, net of credit card
fees and commissions $ 0.058 $ 0.081 $ 0.060 $ 0.090
Commission agents statistics:
Average retail sites during the
period 65 71 66 72
Motor fuel sales (gallons per
site per day) 3,154 3,001 2,959 2,899
Motor fuel gross profit per
gallon, net of credit card
fees and commissions $ 0.019 $ 0.021 $ 0.018 $ 0.030
Company-operated convenience store retail
site statistics:
Average fueling sites during the
period((c)) 85 135 96 126
Motor fuel sales (gallons per
site per day) 2,853 3,083 2,608 2,888
Motor fuel gross profit per
gallon, net of credit card
fees $ 0.091 $ 0.112 $ 0.094 $ 0.125
Merchandise and services sales
(per site per day)((d)) $ 4,166 $ 3,534 $ 3,602 $ 3,180
Merchandise and services gross
profit percentage, net
of credit card fees 24.1 % 26.9 % 24.7 % 28.0 %
(a) The inventory fair value adjustments recorded during the six months ended
June 30, 2016 and 2015 represent the write-offs of the step-up in value ascribed
to inventory in our Holiday and Erickson acquisitions, respectively.
(b) Please see the reconciliation of CrossAmerica's segment Adjusted EBITDA to
consolidated net income under the heading "Supplemental Disclosure Regarding
Non-GAAP Financial Measures."
(c) The decrease in retail sites relates to the conversion of 122 company-
operated sites to lessee dealer since June 30, 2015, partially offset by the 42
One Stop and 34 Holiday sites acquired since June 30, 2015.
(d) Includes the results from car wash sales and commissions from lottery,
money orders, air/water/vacuum services and ATM fees.
Supplemental Disclosure Regarding Non-GAAP Financial Measures
CrossAmerica uses non-GAAP financial measures EBITDA, Adjusted EBITDA, and
Distributable Cash Flow. EBITDA represents net income available to CrossAmerica
limited partners 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 CrossAmerica's
financial statements, such as investors and lenders. EBITDA and Adjusted EBITDA
are used to assess the Partnership's financial performance without regard to
financing methods, capital structure or income taxes and the ability to incur
and service debt and to fund capital expenditures. In addition, Adjusted EBITDA
is used to assess the operating performance of CrossAmerica's business on a
consistent basis by excluding the impact of items which do not result directly
from the wholesale distribution of motor fuel, the leasing of real property, or
the day to day operations of the Partnership's retail convenience store
activities. EBITDA, Adjusted EBITDA, and Distributable Cash Flow are also used
to assess the ability to generate cash sufficient to make distributions to
CrossAmerica's unit-holders.
The Partnership believes the presentation of EBITDA, Adjusted EBITDA, and
Distributable Cash Flow provides useful information to investors in assessing
the 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
CrossAmerica's industry, the Partnership's 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,
------------------------- ------------------------
2016 2015 2016 2015
------------ ------------ ------------ -----------
Net income available to
CrossAmerica limited
partners $ 2,806 (165 ) $ 3,814 (3,301 )
Interest expense 5,704 4,743 10,769 9,021
Income tax expense (benefit) 338 (907 ) (457 ) (2,588 )
Depreciation, amortization
and accretion 14,262 11,411 27,162 22,913
------------ ------------ ------------ -----------
EBITDA $ 23,110 $ 15,082 $ 41,288 $ 26,045
Equity funded expenses
related to incentive
compensation and the Amended
Omnibus Agreement((a)) 3,343 3,250 6,625 6,192
(Gain) loss on sales of
assets, net 102 (422 ) 106 (452 )
Acquisition related
costs((b)) 563 1,150 1,223 2,152
Inventory fair value
adjustments - - 91 706
------------ ------------ ------------ -----------
Adjusted EBITDA $ 27,118 $ 19,060 $ 49,333 $ 34,643
Cash interest expense (5,354 ) (4,006 ) (10,049 ) (7,915 )
Sustaining capital
expenditures((c)) (198 ) (307 ) (329 ) (827 )
Current income tax expense (365 ) (428 ) (465 ) (1,487 )
------------ ------------ ------------ -----------
Distributable Cash Flow $ 21,201 $ 14,319 $ 38,490 $ 24,414
------------ ------------ ------------ -----------
Weighted average diluted
common and subordinated
units((d)) 33,292 25,155 33,244 24,880
Distributable Cash Flow per
diluted limited partner unit $ 0.6368 $ 0.5692 $ 1.1578 $ 0.9813
Distributions paid per
limited partner unit((e)) $ 0.5975 $ 0.5475 $ 1.1900 $ 1.0900
Distribution coverage 1.07 x 1.04 x 0.97 x 0.90 x
(a) As approved by the independent conflicts committee of the Board of
Directors of the General Partner and the executive committee of CST and its
board of directors, CrossAmerica and CST mutually agreed to settle certain
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 the First Amended and Restated Partnership Agreement of
CrossAmerica, as amended, sustaining capital expenditures are capital
expenditures made to maintain the 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 CrossAmerica's sites in leasable condition, such as
parking lot or roof replacement/renovation, or to replace equipment required to
operate the existing business.
(d) Includes 47,490 and 94,209 dilutive units that are not included in the
calculation of diluted earnings per unit for the three and six months ended June
30, 2015, respectively, because to do so would be anti-dilutive.
(e) The board of directors of CrossAmerica's General Partner approved a
quarterly distribution of $0.6025 per unit attributable to the second quarter of
2016. The distribution is payable on August 15, 2016 to all unitholders of
record on August 8, 2016.
The following table reconciles segment Adjusted EBITDA to consolidated Adjusted
EBITDA (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ------------------------
2016 2015 2016 2015
------------ ------------ ------------ -----------
Adjusted EBITDA - Wholesale
segment $ 25,900 $ 17,682 $ 49,941 $ 35,284
Adjusted EBITDA - Retail
segment 2,728 4,595 4,489 9,346
------------ ------------ ------------ -----------
Adjusted EBITDA - Total
segment $ 28,628 $ 22,277 $ 54,430 $ 44,630
------------ ------------ ------------ -----------
Reconciling items:
Elimination of intersegment
profit in ending inventory
balance 13 - 132 (162 )
General and administrative
expenses (4,921 ) (7,614 ) (11,926 ) (18,060 )
Other income, net 316 190 434 249
Equity funded expenses
related to incentive
compensation and the Amended
Omnibus Agreement 3,343 3,250 6,625 6,192
Acquisition related costs 563 1,150 1,223 2,152
Net (income) loss
attributable to
noncontrolling interests (4 ) 2 (6 ) 7
Distributions to incentive
distribution right holders (820 ) (195 ) (1,579 ) (365 )
------------ ------------ ------------ -----------
Consolidated Adjusted EBITDA $ 27,118 $ 19,060 $ 49,333 $ 34,643
------------ ------------ ------------ -----------
About CrossAmerica Partners LP
CrossAmerica Partners 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
LP is a distributor of branded and unbranded petroleum for motor vehicles in the
United States and distributes fuel to more than 1,100 locations and owns or
leases more than 800 sites. With a geographic footprint covering 29 states, the
Partnership has well-established relationships with several major oil brands,
including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf, Citgo, Marathon
and Phillips 66. 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, Executive Director - Investor Relations, 610-625-8005
Randy Palmer, Executive Director - Investor Relations, 210-692-2160
Safe Harbor Statement
Statements contained in this release that state the Partnership'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-K or Forms 10-Q 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.
Note to Non-United States Investors: This release is intended to be a qualified
notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees
should treat one hundred percent (100%) of CrossAmerica Partners LP's
distributions to non-U.S. investors as attributable to income that is
effectively connected with a United States trade or business. Accordingly,
CrossAmerica Partners LP's distributions to non-U.S. investors are subject to
federal income tax withholding at the highest applicable effective tax rate.
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#2033438]
Unternehmensinformation / Kurzprofil:
Datum: 05.08.2016 - 12:00 Uhr
Sprache: Deutsch
News-ID 487581
Anzahl Zeichen: 46323
contact information:
Town:
Allentown
Kategorie:
Business News
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