CrossAmerica Partners LP Q1 FY2025 earnings call

• Charles discussed challenging start to the year for the industry, with fuel and inside store merchandise demand subdued. Retail same-store fuel volume was in line with market, while inside sales excluding cigarettes outperformed. Site conversions continued, with 64 net new retail sites added. Wholesale segment saw fuel margin improvement but volume decline due to site conversions. Maura discussed financial results, including net loss of $7.1 million in Q1 2025 vs $17.5 million in Q1 2024, adjusted EBITDA increase, distributable cash flow decline, and operating expenses changes related to site growth and rationalization.

Retail Segment

• Gross profit increased 16% to $63.2 million in Q1 2025 compared to $54.4 million in Q1 2024. Retail fuel margin was $0.339 per-gallon in Q1 2025, up 10% YoY from $0.308 per-gallon in Q1 2024. Same-store fuel volume declined 4% YoY (adjusted for leap year impact, ~3%). Inside sales excluding cigarettes declined 1% YoY. Merchandise gross profit increased 16% to $24.9 million, driven by higher store count.

Wholesale Segment

• Gross profit declined 1% to $26.7 million in Q1 2025 compared to $27 million in Q1 2024. Wholesale fuel gross profit increased 8% to $15.8 million. Fuel margin rose 23% to $0.097 per gallon. Wholesale volume was 162.9 million gallons in Q1 2025, down 11% YoY. Base rent decreased due to site conversions.

• Uncertainty from tariffs impacting fuel and merchandise costs. Potential foreign components in products adding to market uncertainty. Market volatility due to economic and tariff changes.