Crossamerica Partners (CAPL) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income was $16.9M, nearly flat year-over-year, aided by real estate divestiture gains and a tax benefit.

• Full-year 2024 net income declined 47% to $22.5M, with adjusted EBITDA down 12% to $145.5M, mainly due to higher operating expenses and interest costs.

• Retail segment gross profit rose 14% for the year, while wholesale segment gross profit declined 16%.

• Distributable cash flow decreased 26% to $86.0M for the year, with distribution coverage ratio dropping to 1.08x from 1.46x.

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

Financial highlights

• Q4 2024 adjusted EBITDA was $35.5M, down 26% year-over-year; distributable cash flow was $21.1M, down from $35.8M.

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

• Retail margin per gallon was stable for the year at $0.368; wholesale margin per gallon was $0.085, down 1%.

• Retail site count increased by 99 in Q4 year-over-year, reflecting strategic conversions.

• Operating expenses increased to $228.0M in FY 2024 from $194.7M in FY 2023, mainly due to higher company operated site count.

Outlook and guidance

• Continued focus on portfolio optimization, converting sites to Retail where strategic, and ongoing divestitures expected in 2025.

• Targeting leverage ratio around 4x as operational performance and cash flow management remain priorities.

• Emphasis on expense management and ramping up performance of converted stores in 2025.