Crossamerica Partners (CAPL) Q4 2024 earnings summary

Executive summary

• Full-year 2024 net income was $22.5 million, down from $42.6 million in 2023, with adjusted EBITDA at $145.5 million, reflecting higher operating expenses and interest costs.

• Distributable cash flow for 2024 was $86.0 million, down from $116.7 million, and distribution coverage ratio dropped to 1.08x from 1.46x.

• Retail segment gross profit rose 14% to $289.7 million for the year, while wholesale segment gross profit declined 16% to $108.6 million.

• Strategic focus included converting lessee dealer sites to company-operated, divesting select locations, and optimizing the real estate portfolio.

• Distribution per unit remained flat at $2.10 for the year.

Financial highlights

• Q4 2024 net income was $16.9 million, nearly flat year-over-year, aided by an $11.5 million gain from real estate divestitures and a $1.8 million tax benefit.

• Q4 adjusted EBITDA was $35.5 million, down 26% year-over-year; distributable cash flow fell to $21.1 million from $35.8 million.

• Retail segment Q4 gross profit increased 9% to $75.1 million; wholesale segment gross profit fell 22% to $25.9 million.

• Retail margin per gallon was stable at $0.368 for the year; wholesale margin per gallon was $0.082, down 13%.

• Operating expenses increased to $228.0 million in 2024, mainly due to higher company-operated site count.

Outlook and guidance

• Continued focus on optimizing the portfolio through strategic site conversions to Retail and ongoing divestitures in 2025.

• Plans to recycle capital from divestitures into growth opportunities and balance sheet strengthening.

• Management remains committed to maintaining operational performance and cash flow to manage leverage at approximately 4x.

• Future distributions remain at the discretion of the Board.