Q2 2024 Crossamerica Partners LP Earnings Call Transcript
Key Points
- CrossAmerica Partners LP (CAPL) achieved a 7% year-over-year increase in retail segment operating income for the second quarter, driven by successful site conversions from wholesale to retail.
- The retail segment generated a 16% increase in gross profit, with merchandise gross profit up 23% and motor fuel gross profit up 10% compared to the same period in 2023.
- Retail fuel margin increased by 1% year-over-year, with a significant 21% increase from the first quarter of 2024.
- The company successfully increased its overall retail site count by 43 sites during the second quarter, reflecting active execution of its strategy to expand retail operations.
- CAPL reported a slight increase in adjusted EBITDA by 1% year-over-year, demonstrating resilience despite a challenging market environment.
- Net income for the second quarter of 2024 decreased to $12.4 million from $14.5 million in the second quarter of 2023.
- Distributable cash flow declined to $26.1 million from $30.4 million year-over-year, primarily due to increased interest expenses and higher sustaining capital spending.
- Retail same-store volume declined by 2% for the quarter, reflecting ongoing challenges in national fuel demand.
- Operating expenses increased by $6 million compared to the second quarter of 2023, driven by higher costs in the retail segment due to site conversions.
- The wholesale segment experienced an 11% decline in gross profit, attributed to a decrease in fuel volume despite an increase in fuel margin per gallon.
Good morning, ladies and gentlemen, and welcome to the CrossAmerica Partners second Quarter 2024 earnings conference call. (Operator Instructions) This call is being recorded on Friday, August 9, 2024.
I would now like to turn the conference over to Maura Topper, Chief Financial Officer. Please go ahead.
Thank you, operator. Good morning and thank you for joining the CrossAmerica Partners second quarter 2024 earnings call. With me today is Charles Nifong, CEO and President. We'll start off the call today for Charles providing some opening comments and an overview of CrossAmerica's operational performance for the quarter, and then I will discuss the financial results. We will then open up the call to questions.
Today's call will follow the presentation slides that are available as part of the webcast and are posted on the CrossAmerica website.
Before we begin, I would like to remind everyone that today's call, including the question and
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