CAPL

• Expense Management

  • The company has achieved seven consecutive quarters of declining total operating expenses company-wide
  • Management remains focused on efficient expense management at both store locations and the corporate level
  • Prioritizes investments in customer-facing site initiatives that drive long-term business health and site sustainability, while pursuing operational efficiencies in overhead functions

• Capital Expenditures

  • Total capital expenditures in Q2 2026 were $7.4 million, split between $2.5 million in growth-related capital and $4.9 million in sustaining capital
  • The company accelerated maintenance capital spending in the quarter following strong H1 2026 results, with a continued focus on supporting site resiliency
  • Growth capital is focused on company-operated locations, particularly food-related investments that are expected to boost merchandise sales and margin results

• Balance Sheet and Capital Structure

  • The partnership paid a distribution of 52.5 cents per unit in Q2 2026
  • An amendment to the company's credit facility was executed on July 15, 2026, extending the maturity date from March 31, 2028 to July 15, 2031 and removing the SOFR credit spread adjustment; additional details are available in the July 16 SEC Form 8-K filing
  • Strong segment performance and completed asset sale activities reduced the credit facility balance by ~$10 million during the quarter, bringing year-to-date 2026 debt reduction to $20 million
  • The credit facility defined leverage ratio decreased to 3.57 times as of Q2 2026, down from 3.65 times as of June 30, 2025; management targets a leverage ratio of approximately 4x
  • Lower average interest rates and an existing interest rate swap portfolio reduced cash interest expense from $12.1 million in Q2 2025 to $10.9 million in Q2 2026; approximately 60% of the current credit facility balance is swapped to a blended fixed rate of ~3.4%, with an effective total interest rate of 5.5% at quarter-end
  • Management prioritizes durable cash flow generation, using core operations and targeted real estate optimization to maintain a strong balance sheet and generate value for unitholders

Management did not issue specific revised or new quantitative financial guidance for full-year 2026. The company reaffirmed its long-term strategic priorities: maintaining a strong balance sheet, generating durable consistent cash flows from its optimized asset portfolio, and delivering value to unitholders. Management noted the partnership delivered a strong first half of 2026 and is positioned for continued success through the second half of the year.

The company operates two business segments: Retail and Wholesale. Total consolidated operating expenses for Q2 2026 were $55 million, a $2.9 million year-over-year decrease, marking the seventh consecutive quarter of declining total operating expenses. For the Retail segment: operating expenses declined $2.1 million (4% YoY), average site count decreased ~7% YoY, and same-store operating expenses were down 3% YoY driven by reduced store-level employment costs from efficient staffing initiatives. For the Wholesale segment: operating expenses declined $0.8 million (11% YoY), driven by a year-over-year decline in lessee dealer/controlled site count from asset sales and a smaller portion of site conversions to the Retail segment. G&A expenses for the quarter were $6.8 million, a slight YoY increase driven by higher legal fees and equity compensation expense.

No explicit discussion of material business risks, operational failures, or emerging downside threats was included in the provided earning call transcript.

No investor or analyst questions were raised during the Q&A session. The conference was closed after no questions were received from the audience.