CrossAmerica Partners LP Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Retail Segment: Had positive quarter with same-store inside sales, same-store fuel volume, merchandise gross profit, and store merchandise margin percentage up year-over-year. Converted 107 sites to retail class of trade. Experienced impact from winter weather on volume and inside sales post-quarter end.
• Wholesale Segment: Gross profit declined due to volume and margin drops. Volume decline mainly from site conversions to retail.
• Site Conversions and Divestitures: Converted 107 sites to retail class of trade in 2024. Divested 11 sites in Q4 2024 for $17.3M and 30 properties in full year 2024 for $36.3M.
• Expense Management: Retail segment operating expenses increased due to higher site count, especially company-operated locations. Wholesale segment operating expenses decreased due to lower site count. G&A expenses had mixed changes.

Segment Performance

• Retail Segment (Fourth Quarter 2024): Gross profit increased 5% to $75.1 million. Merchandise gross profit rose 27% to $28.1 million. Fuel gross profit had a slight decrease. Site count increased by 99. On a same-store basis, same-store inside sales up 1%, same-store fuel volume up 2%.
• Wholesale Segment (Fourth Quarter 2024): Gross profit declined 22% to $25.9 million due to volume and margin decline. Fuel volume decreased 12%, fuel margin declined 13%.
• Retail Segment (Full Year 2024): Gross profit increased 14% to $289.7 million. Merchandise gross profit rose 22%, motor fuel gross profit up 9%, other revenue up 23%. Same-store fuel volume down 1%, same-store inside sales (excluding cigarettes) down 1%.
• Wholesale Segment (Full Year 2024): Gross profit was $108.6 million, a 16% decline from 2023. Fuel volume declined 12%, fuel margin down 1%.

Guidance

• 2025 plans include optimizing portfolio by strategically converting sites to retail. Focus on executing retail basics for customer experience and value. Continue portfolio divestitures to recycle capital and strengthen balance sheet. Partner with wholesale customers to drive mutual success.

Risks

• Macroeconomic conditions impacting fuel and inside sales demand.
• Fuel margin volatility due to crude oil price fluctuations.
• Inflationary pressures affecting consumer spending and operational costs.
• Interest rate environment impacting borrowing costs.
• Weather events (like winter weather) affecting volume and sales in certain markets.

Q: A: Q: A: Operator stated no questions during the session