CrossAmerica Partners LP: Reports Second Quarter 2017 Results
(Thomson Reuters ONE) -
CrossAmerica Partners LP Reports Second Quarter 2017 Results
- Reported Second Quarter 2017 Operating Income of $2.7 million and
a Net Loss of $4.0 million, which includes a $6.5 million one-time charge
related to CST merger related expenses
- Generated Second Quarter 2017 Adjusted EBITDA of $27.8 million and
Distributable Cash Flow of $21.2 million, respectively
- Reported Second Quarter 2017 Gross Profit for the Wholesale
Segment of $31.6 million or a 9% increase when compared to the Second Quarter
2016
- The Board of Directors of CrossAmerica's General Partner declared
a quarterly distribution of $0.6225 per limited partner unit attributable to the
Second Quarter 2017
Allentown, PA August 7, 2017 - 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, 2017.
"Due to our prior acquisitions and integration efforts, we modestly grew
Adjusted EBITDA for our investors in the second quarter, allowing us to increase
our distribution for the 13(th) consecutive quarter," said Jeremy Bergeron,
President and CEO of CrossAmerica. "With our pending acquisition of assets from
Jet Pep in Alabama, we are off to a great start with Circle K as our general
partner, as we execute our enhanced growth strategy together."
Three Months
Consolidated Results
Operating income was $2.7 million for the second quarter 2017 compared to $9.4
million achieved in the second quarter 2016. EBITDA was $16.1 million for the
three month period ended June 30, 2017 compared to $23.1 million for the same
period in 2016. Included in operating income and EBITDA for the second quarter
2017 is a $6.5 million charge recorded upon the closing of the CST Brands, Inc.
("CST") and Alimentation Couche-Tard Inc. ("Couche-Tard") merger, which was
completed on June 28, 2017, for separation benefits and retention bonuses.
Adjusted EBITDA was $27.8 million for the second quarter 2017 compared to $27.1
million for the same period in 2016, representing an increase of 2%. The
increase in Adjusted EBITDA was due primarily to an increase in the gross profit
at CrossAmerica's wholesale segment from both motor fuel and rental income.
(Non-GAAP measures, including EBITDA, as described are reconciled to the
corresponding GAAP measures in the Supplemental Disclosure section of this
release).
Wholesale Segment
During the second quarter 2017, CrossAmerica's wholesale segment generated $31.6
million in gross profit compared to $29.1 million in gross profit for the second
quarter 2016, representing a 9% increase. The Partnership distributed, on a
wholesale basis, 266.5 million gallons of motor fuel at an average wholesale
gross profit of $0.056 per gallon, resulting in motor fuel gross profit of $14.9
million. For the three month period ended June 30, 2016, CrossAmerica
distributed, on a wholesale basis, 265.9 million gallons of fuel at an average
wholesale gross profit of $0.054 per gallon, resulting in motor fuel gross
profit of $14.3 million. The increase in motor fuel gross profit was primarily
due to an increase in payment discounts and incentives due to the increase in
motor fuel prices as a result of the increase in crude oil prices, increased
dealer-tank wagon (DTW) margins as a result of the movements in crude prices
throughout both periods and incremental volumes from the State Oil acquisition.
The prices paid by the Partnership to its motor fuel suppliers for wholesale
motor fuel (which affects the cost of sales) are highly correlated to the price
of crude oil. The average daily spot price of West Texas Intermediate crude oil
increased approximately 6% to $48.10 per barrel during the second quarter 2017
as compared to $45.46 per barrel during the same period in 2016. This had a
positive impact on payment terms discounts that the Partnership receives from
its suppliers.
CrossAmerica's gross profit from Rent and Other for the wholesale segment, which
primarily consists of rental income, was $16.7 million for the second quarter
2017 compared to $14.8 million for the same period in 2016. The increase of 13%
in Rent and Other was primarily associated with the State Oil acquisition
completed in September 2016 and the continued conversion of company-operated
stores to lessee dealer sites, partially offset by 25 DMS sites being converted
to commission agent sites in 2016, which resulted in rent income from these 25
sites being included in the retail segment rather than the wholesale segment.
Adjusted EBITDA for the wholesale segment was $27.7 million for the second
quarter of 2017 compared to $25.9 million for the same period in 2016. As
discussed above, the year-over-year improvement was driven by an increase in
wholesale gross profit per gallon and in rental income during the quarter (see
Supplemental Disclosure Regarding Non-GAAP Financial Information below).
Retail Segment
For the second quarter 2017, the Partnership sold 40.6 million gallons of motor
fuel at an average retail motor fuel gross profit of $0.051 per gallon, net of
commissions and credit card fees, resulting in motor fuel gross profits of $2.1
million. For the same period in 2016, CrossAmerica sold 40.8 million gallons in
its retail segment at an average gross profit of $0.058 per gallon, net of
commissions and credit card fees, resulting in motor fuel gross profit of $2.4
million. The decline in motor fuel gross profit is primarily due to a decline in
gallons sold related to the Partnership's execution of its dealerization
strategy of converting company-operated stores to dealer-operated sites, as well
as lower retail margins realized with the commission agent class of trade.
During the quarter, the Partnership generated $6.8 million in gross profit from
merchandise and services versus $8.0 million for the same period in 2016. Gross
profit from Rent and Other increased $0.1 million primarily from 25 DMS sites
being converted to commission agent sites in 2016, which resulted in rent income
from these 25 sites being included in the retail segment rather than the
wholesale segment. Operating expenses for the retail segment decreased $0.2
million from $8.7 million for the second quarter 2016 to $8.5 million for the
second quarter 2017. Adjusted EBITDA for the retail segment was $1.5 million
for the second quarter 2017 compared to $2.7 million for the same period in
2016. The decreases in merchandise and services gross profit, operating
expenses and Adjusted EBITDA were primarily due to the Partnership's
dealerization strategy of converting company-operated stores to dealer-operated
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 both the three month periods ended
June 30, 2017 and 2016. The flat Distributable Cash Flow was due primarily to
an increase in EBITDA driven by the wholesale segment's increase in motor fuel
gross profit and rental income, partially offset by an increase in cash interest
expense from additional borrowings to fund the Partnership's recent
acquisitions. The Distribution Coverage Ratio was 1.01 times for the three
months ended June 30, 2017 (see Supplemental Disclosure Regarding Non-GAAP
Financial Information below).
Six Months
Operating income was $8.3 million for the six months ended June 30, 2017
compared to $15.3 million achieved in the same period of 2016. EBITDA was $35.1
million for the six month period ended June 30, 2017 compared to $41.3 million
for the same period in 2016. Included in operating income and EBITDA in 2017 is
a $6.5 million charge recorded upon the closing of the CST and Couche-Tard
merger, which was completed on June 28, 2017, for separation benefits and
retention bonuses. Adjusted EBITDA was $51.5 million for the six month period
ended June 30, 2017 compared to $49.3 million for the same period in 2016,
representing an increase of 4%. The increase in Adjusted EBITDA was due
primarily to an increase in the gross profit at the Partnership's wholesale
segment primarily driven by an increase in both motor fuel gross profit and
rental income (see Supplemental Disclosure Regarding Non-GAAP Financial
Information below).
Subsequent Event
On August 7, 2017, it was announced that CrossAmerica had entered into a
definitive agreement to acquire certain assets of Holly Pond, AL based Jet Pep,
Inc. for a total consideration of $72 million. The assets consist of 102
commission operated retail sites, including 92 fee sites, 5 lease sites and 5
independent commission accounts. The locations sold nearly 91 million gallons
of unbranded fuel in 2016.
The acquisition is subject to customary conditions to closing and is expected to
close in the calendar fourth quarter of 2017. The Partnership expects the
acquisition to be accretive to distributable cash flow to limited partners.
Liquidity and Capital Resources
As of August 4, 2017, after taking into consideration debt covenant constraints,
approximately $90.1 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 26, 2017, the Board of the Directors of CrossAmerica's General Partner
("Board") declared a quarterly distribution of $0.6225 per limited partner unit
attributable to the second quarter of 2017. As previously announced, the
distribution will be paid on August 14, 2017 to all unitholders of record as of
August 7, 2017. The amount and timing of any future distributions is subject to
the discretion of the Board (see Supplemental Disclosure Regarding Non-GAAP
Financial Information below).
Conference Call
The Partnership will host a conference call on August 8, 2017 at 9:00 a.m.
Eastern Time (8:00 a.m. Central Time) to discuss second quarter 2017 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
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 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 OPERATIONS
(Thousands of Dollars, Except Unit and Per Unit Amounts)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------- -------------------------------
2017 2016 2017 2016
-------------- -------------- -------------- --------------
Operating
revenues((a)) $ 528,789 $ 512,644 $ 998,075 880,384
Costs of
sales((b)) 487,167 472,129 919,007 802,679
-------------- -------------- -------------- --------------
Gross profit 41,622 40,515 79,068 77,705
Income from
CST Fuel
Supply equity
interests 3,830 4,245 7,433 8,296
Operating
expenses:
Operating
expenses 16,222 16,119 31,482 31,530
General and
administrative
expenses 11,920 4,921 17,737 11,926
Depreciation,
amortization
and accretion
expense 14,278 14,262 28,626 27,162
-------------- -------------- -------------- --------------
Total
operating
expenses 42,420 35,302 77,845 70,618
Loss on sales
of assets, net (314 ) (102 ) (358 ) (106 )
-------------- -------------- -------------- --------------
Operating
income 2,718 9,356 8,298 15,277
Other income,
net 127 316 245 434
Interest
expense (6,795 ) (5,704 ) (13,497 ) (10,769 )
-------------- -------------- -------------- --------------
Income (loss)
before income
taxes (3,950 ) 3,968 (4,954 ) 4,942
Income tax
expense
(benefit) 49 338 (2,652 ) (457 )
-------------- -------------- -------------- --------------
Consolidated
net income
(loss) (3,999 ) 3,630 (2,302 ) 5,399
Less: net
income (loss)
attributable
to
noncontrolling
interests (6 ) 4 (5 ) 6
-------------- -------------- -------------- --------------
Net income
(loss)
attributable
to
CrossAmerica
limited
partners (3,993 ) 3,626 (2,297 ) 5,393
IDR
distributions (1,055 ) (820 ) (2,047 ) (1,579 )
-------------- -------------- -------------- --------------
Net income
(loss)
available to
CrossAmerica
limited
partners $ (5,048 ) $ 2,806 $ (4,344 ) $ 3,814
-------------- -------------- -------------- --------------
Net income
(loss) per
CrossAmerica
limited
partner unit:
Basic earnings
per common
unit $ (0.15 ) $ 0.08 $ (0.13 ) $ 0.11
Diluted
earnings per
common unit $ (0.15 ) $ 0.08 $ (0.13 ) $ 0.11
Basic and
diluted
earnings per
subordinated
unit n/a n/a n/a $ 0.11
Weighted-
average
CrossAmerica
limited
partner units:
Basic common
units 33,798,905 33,283,489 33,694,116 30,879,426
Diluted common
units((c)) 33,806,925 33,292,023 33,717,612 30,928,204
Basic and
diluted
subordinated
units - - - 2,315,385
-------------- -------------- -------------- --------------
Total diluted
common and
subordinated
units((c)) 33,806,925 33,292,023 33,717,612 33,243,589
-------------- -------------- -------------- --------------
Distribution
paid per
common and
subordinated
unit $ 0.6175 $ 0.5975 $ 1.2300 $ 1.1900
Distribution
declared (with
respect to
each
respective
period) per
common and
subordinated
unit $ 0.6225 $ 0.6025 $ 1.2400 $ 1.2000
Supplemental
information:
(a) Includes
excise taxes
of: $ 20,094 $ 20,311 $ 38,647 $ 40,204
(a) Includes
revenues from
fuel sales to
related
parties of: $ 95,592 $ 107,131 $ 180,421 180,439
(a) Includes
rental income
of: $ 22,005 $ 20,351 $ 43,446 39,882
(b) Includes
rental expense
of: $ 4,926 $ 5,019 $ 9,717 9,767
(c) Diluted common units were not used in the calculation of diluted earnings
per common unit for the three and six months ended June 30, 2017 because to do
so would have been 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,
------------------------ -----------------------------
2017 2016 2017 2016
---------- ----------- ------------- ---------------
Gross profit:
Motor fuel-third
party $ 9,037 $ 7,512 $ 16,902 $ 13,126
Motor fuel-
intersegment and
related party 5,854 6,807 11,335 12,918
---------- ----------- ----------- ------------
Motor fuel gross
profit 14,891 14,319 28,237 26,044
Rent and other 16,696 14,770 32,666 28,899
---------- ----------- ----------- ------------
Total gross profit 31,587 29,089 60,903 54,943
Income from CST
Fuel Supply
equity((a)) 3,830 4,245 7,433 8,296
Operating expenses (7,739 ) (7,434 ) (15,006 ) (13,298 )
---------- ----------- ----------- ------------
Adjusted
EBITDA((b)) $ 27,678 $ 25,900 $ 53,330 $ 49,941
---------- ----------- ----------- ------------
Motor fuel
distribution sites
(end of
period):((c))
Motor fuel-third
party
Independent
dealers((d)) 390 384 390 384
Lessee
dealers((e)(f)) 434 361 434 361
---------- ----------- ----------- ------------
Total motor fuel
distribution-third
party sites 824 745 824 745
---------- ----------- ----------- ------------
Motor fuel-
intersegment and
related party
DMS (related
party)((f)) 151 184 151 184
CST (related party) 43 43 43 43
Commission agents
(Retail
segment)((f)) 82 65 82 65
Company operated
retail sites
(Retail
segment)((g)) 71 77 71 77
---------- ----------- ----------- ------------
Total motor fuel
distribution-
intersegment
and related party
sites 347 369 347 369
---------- ----------- ----------- ------------
Motor fuel
distribution sites
(average during the
period):
Motor fuel-third
party distribution 822 739 822 711
Motor fuel-
intersegment and
related party
distribution 357 380 360 393
----------- ----------- ----------- -------------
Total motor fuel
distribution sites 1,179 1,119 1,182 1,104
----------- ----------- ----------- ------------
Volume of gallons
distributed (in
thousands)
Third party 169,914 160,551 321,594 297,916
Intersegment and
related party 96,597 105,359 183,337 204,156
----------- ----------- ------------- -------------
Total 266,511 265,910 504,931 502,072
----------- ----------- ------------- -------------
Wholesale margin
per gallon $ 0.056 $ 0.054 $ 0.056 $ 0.052
(a) Represents income from the Partnership's equity interest in CST Fuel
Supply.
(b) Please see the reconciliation of the segment's Adjusted EBITDA to
consolidated net income under the heading "Results of Operations-Non-GAAP
Financial Measures."
(c) In addition, as of June 30, 2017 and 2016, CrossAmerica distributed
motor fuel to 14 sub-wholesalers who distributed to additional sites.
(d) The increase in the independent dealer site count was primarily
attributable to 25 wholesale fuel supply contracts acquired in the State Oil
Assets acquisition, partially offset by a net 19 terminated motor fuel supply
contracts that were not renewed.
(e) The increase in the lessee dealer site count was primarily attributable
to converting 9 company operated retail sites in the Retail segment to lessee
dealers in the Wholesale segment and the 49 sites acquired in the September
2016 State Oil Assets acquisition.
(f) During the fourth quarter of 2016, the Partnership recaptured 25 sites
from DMS and operated them as commission agent sites. During the second quarter
of 2017, CrossAmerica converted some of these recaptured sites to lessee
dealers.
(g) The decrease in the company operated retail site count was primarily
attributable to company operated retail sites being converted to lessee dealer
sites.
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
retail sites and per gallon amounts):
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -------------------------
2017 2016 2017 2016
---------- ---------- ----------- -----------
Gross profit:
Motor fuel $ 2,076 $ 2,361 $ 3,239 $ 4,890
Merchandise and services 6,789 8,033 12,550 15,748
Rent and other 1,156 1,019 2,370 1,992
---------- ---------- ----------- -----------
Total gross profit 10,021 11,413 18,159 22,630
Operating expenses (8,483 ) (8,685 ) (16,476 ) (18,232 )
Inventory fair value
adjustments((a)) - - - 91
---------- ---------- ----------- -----------
Adjusted EBITDA((b)) $ 1,538 $ 2,728 $ 1,683 $ 4,489
---------- ---------- ----------- -----------
Retail sites (end of
period):
Commission agents((c)) 82 65 82 65
Company operated retail
sites((d)) 72 80 72 80
---------- ---------- ----------- -----------
Total system sites at
the end of the period 154 145 154 145
---------- ---------- ----------- -----------
Total system operating
statistics:
Average retail fuel
sites during the
period((c)(d)) 163 150 166 162
Motor fuel sales
(gallons per site per
day) 2,734 2,984 2,573 2,751
Motor fuel gross profit
per gallon, net of
credit card
fees and commissions $ 0.051 $ 0.058 $ 0.042 $ 0.060
Commission agents
statistics:
Average retail fuel
sites during the
period((c)) 91 65 94 66
Motor fuel gross profit
per gallon, net of
credit card
fees and commissions $ 0.010 $ 0.019 $ 0.011 $ 0.018
Company operated retail
site statistics:
Average retail fuel
sites during the
period((d)) 72 85 72 96
Motor fuel gross profit
per gallon, net of
credit card
fees $ 0.097 $ 0.091 $ 0.078 $ 0.094
Merchandise and services
gross profit percentage,
net of credit card
fees 24.5 % 24.1 % 24.3 % 24.7 %
(a) The inventory fair value adjustment represents the expensing of the
step-up in value ascribed to inventory acquired in the Franchised Holiday Stores
acquisition.
(b) Please see the reconciliation of the segment's Adjusted EBITDA to
consolidated net income under the heading "Results of Operations-Non-GAAP
Financial Measures" below.
(c) During the fourth quarter of 2016, the Partnership recaptured 25 sites
from DMS and operated them as commission agent sites. During the second quarter
of 2017, CrossAmerica converted some of these recaptured sites to lessee
dealers.
(d) The decrease in company operated retail sites relates to the conversion
of company operated retail sites to lessee dealer sites.
Supplemental Disclosure Regarding Non-GAAP Financial Measures
CrossAmerica uses non-GAAP financial measures EBITDA, Adjusted EBITDA,
Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net
income available to the Partnership before deducting interest expense, income
taxes, 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 arising from purchase
accounting. Distributable Cash Flow represents Adjusted EBITDA less cash
interest expense, sustaining capital expenditures and current income tax
expense. Distribution Coverage Ratio is computed by dividing Distributable Cash
Flow by the weighted average diluted common and subordinated units and then
dividing that result by the distributions paid per limited partner unit.
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio
are used as supplemental financial measures by management and by external users
of the CrossAmerica financial statements, such as investors and lenders. EBITDA
and Adjusted EBITDA are used to assess the 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 the CrossAmerica 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 site activities. EBITDA,
Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are
also used to assess the ability to generate cash sufficient to make
distributions to the Partnership's unit-holders.
CrossAmerica believes the presentation of EBITDA, Adjusted EBITDA, Distributable
Cash Flow and Distribution Coverage Ratio provides useful information to
investors in assessing the financial condition and results of operations.
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio
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, Distributable Cash Flow and Distribution Coverage Ratio
have important limitations as analytical tools because they exclude some but not
all items that affect net income. Additionally, because EBITDA, Adjusted EBITDA,
Distributable Cash Flow and Distribution Coverage Ratio may be defined
differently by other companies in the 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,
----------------------- --------------------------
2017 2016 2017 2016
---------- ---------- ------------- ------------
Net income (loss)
available to
CrossAmerica limited
partners $ (5,048 ) $ 2,806 $ (4,344 ) $ 3,814
Interest expense 6,795 5,704 13,497 10,769
Income tax expense
(benefit) 49 338 (2,652 ) (457 )
Depreciation,
amortization and
accretion 14,278 14,262 28,626 27,162
---------- ---------- ------------- ------------
EBITDA 16,074 23,110 35,127 41,288
Equity funded expenses
related to incentive
compensation and the
Amended Omnibus
Agreement(a) 4,144 3,343 8,310 6,625
Loss on sales of assets,
net 314 102 358 106
Acquisition-related
costs(b) 7,236 563 7,709 1,223
Inventory fair value
adjustments - - - 91
---------- ---------- ------------- ------------
Adjusted EBITDA 27,768 27,118 51,504 49,333
Cash interest expense (6,488 ) (5,354 ) (12,645 ) (10,049 )
Sustaining capital
expenditures(c) (358 ) (198 ) (722 ) (329 )
Current income tax
expense 239 (365 ) (120 ) (465 )
---------- ---------- ------------- ------------
Distributable Cash Flow $ 21,161 $ 21,201 $ 38,017 $ 38,490
---------- ---------- ------------- ------------
Weighted average diluted
common and subordinated
units 33,807 33,292 33,718 33,244
Distributions paid per
limited partner unit(d) $ 0.6175 $ 0.5975 $ 1.2300 $ 1.1900
Distribution Coverage
Ratio(e) 1.01x 1.07x 0.92x 0.97x
(a) As approved by the independent conflicts committee of the Board and the
executive committee of CST and its board of directors, the Partnership and CST
mutually agreed to settle certain amounts due under the terms of the Amended
Omnibus Agreement in limited partner units of the Partnership.
(b) Relates to certain discrete acquisition related costs, such as legal
and other professional fees, severance expenses and purchase accounting
adjustments associated with recently acquired businesses. Acquisition-related
costs for the three and
six months ended June 30, 2017 include severance and benefit expenses
and retention bonuses paid to certain EICP participants associated with CST's
merger with Couche-Tard.
(c) Under the Partnership Agreement, sustaining capital expenditures are
capital expenditures made to maintain CrossAmerica's 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 the sites in conditions suitable to
lease, such as parking lot or roof replacement/renovation, or to replace
equipment required to operate the existing business.
(d) On July 26, 2017, the Board approved a quarterly distribution of
$0.6225 per unit attributable to the second quarter of 2017. The distribution is
payable on August 14, 2017 to all unitholders of record on August 7, 2017.
(e) The distribution coverage ratio is computed by dividing Distributable
Cash Flow by the weighted average diluted common and subordinated units and then
dividing that result by the distributions paid per limited partner unit.
The following table reconciles the segment Adjusted EBITDA to Consolidated
Adjusted EBITDA presented in the table above (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ --------------------------
2017 2016 2017 2016
----------- ---------- ------------- ------------
Adjusted EBITDA -
Wholesale segment $ 27,678 $ 25,900 $ 53,330 $ 49,941
Adjusted EBITDA -
Retail segment 1,538 2,728 1,683 4,489
----------- ---------- ----------- -----------
Adjusted EBITDA - Total
segment $ 29,216 $ 28,628 $ 55,013 $ 54,430
Reconciling items:
Elimination of
intersegment profit in
ending
inventory balance 14 13 6 132
General and
administrative expenses (11,920 ) (4,921 ) (17,737 ) (11,926 )
Other income, net 127 316 245 434
Equity funded expenses
related to incentive
compensation and the
Amended Omnibus
Agreement 4,144 3,343 8,310 6,625
Acquisition-related
costs 7,236 563 7,709 1,223
Net (income) loss
attributable to
noncontrolling
interests 6 (4 ) 5 (6 )
IDR distributions (1,055 ) (820 ) (2,047 ) (1,579 )
----------- ---------- -----------
Consolidated Adjusted
EBITDA $ 27,768 $ 27,118 $ 51,504 $ 49,333
----------- ---------- ----------- -----------
About CrossAmerica Partners LP
CrossAmerica Partners LP 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
Alimentation Couche-Tard Inc. 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 approximately 1,200 locations and owns or leases
approximately 900 sites. With a geographic footprint covering 29 states, the
Partnership has well-established relationships with several major oil brands,
including ExxonMobil, BP, Motiva, Equilon, Chevron, Sunoco, Valero, Gulf, Citgo,
Marathon and Phillips 66. CrossAmerica Partners LP 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.
Contact
Investor Relations: Randy Palmer, 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 Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: CrossAmerica Partners LP via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 07.08.2017 - 22:05 Uhr
Sprache: Deutsch
News-ID 555553
Anzahl Zeichen: 44228
contact information:
Town:
Allentown
Kategorie:
Business News
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"CrossAmerica Partners LP: Reports Second Quarter 2017 Results"
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CrossAmerica Partners LP (Nachricht senden)
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