• CrossAmerica Partners LP Reports Second Quarter 2022 Results

    ソース: Nasdaq GlobeNewswire / 08 8 2022 16:15:01   America/New_York

    Allentown, PA, Aug. 08, 2022 (GLOBE NEWSWIRE) --  

    CrossAmerica Partners LP Reports Second Quarter 2022 Results

    • Reported Second Quarter 2022 Operating Income of $21.1 million and Net Income of $14.0 million compared to Operating Income of $8.2 million and Net Income of $4.8 million for the Second Quarter 2021
    • Generated Second Quarter 2022 Adjusted EBITDA of $41.4 million and Distributable Cash Flow of $32.4 million compared to Second Quarter 2021 Adjusted EBITDA of $29.7 million and Distributable Cash Flow of $25.0 million
    • Reported Second Quarter 2022 Gross Profit for the Wholesale Segment of $55.0 million compared to $44.2 million of Gross Profit for the Second Quarter 2021
    • Distributed 342.8 million wholesale fuel gallons during the Second Quarter 2022 at an average wholesale fuel margin per gallon of 11.8 cents compared to 331.6 million wholesale fuel gallons at an average wholesale fuel margin per gallon of 9.2 cents during the Second Quarter 2021, an increase of 3% in gallons distributed and an increase of 28% in margin per gallon
    • Reported Second Quarter 2022 Gross Profit for the Retail Segment of $34.9 million compared to $21.1 million of Gross Profit for the Second Quarter 2021
    • Retail Segment sold 128.8 million retail fuel gallons during the Second Quarter 2022, including 45.1 million same store retail fuel gallons, a 2% increase compared to 44.3 million same store retail fuel gallons sold during the Second Quarter 2021
    • The Distribution Coverage Ratio was 1.63 times for the three months ended June 30, 2022 and 1.48 times for the trailing twelve months ended June 30, 2022
    • The Board of Directors of CrossAmerica’s General Partner declared a quarterly distribution of $0.5250 per limited partner unit attributable to the Second Quarter 2022

    Allentown, PA August 8, 2022 – CrossAmerica Partners LP (NYSE: CAPL) (“CrossAmerica” or the “Partnership”), a leading wholesale fuels distributor, convenience store operator, and owner and lessor of real estate used in the retail distribution of motor fuels, today reported financial results for the second quarter ended June 30, 2022.

     

    "CrossAmerica had another strong quarter despite a challenging fuel price environment and overall economic conditions,” said Charles Nifong, President and CEO of CrossAmerica. “Our results reflect the robustness of our operations and demonstrate the continued successful execution of our strategic plan as evident in the sustained growth and strength in our operational and financial metrics compared to prior quarters.”

     

    Second Quarter Results

     

    Consolidated Results

     

    Key Operating MetricsQ2 2022Q2 2021
    Operating Income$21.1M$8.2M
    Adjusted EBITDA$41.4M$29.7M
    Distributable Cash Flow$32.4M$25.0M
    Distribution Coverage Ratio – Current Quarter1.63x1.26x
    Distribution Coverage Ratio - TTM ended 6/30/221.48x1.22x

    CrossAmerica reported Operating Income of $21.1 million and Net Income of $14.0 million or earnings of $0.35 per diluted common unit for the second quarter 2022 compared to Operating Income of $8.2 million and Net Income of $4.8 million or earnings of $0.13 per diluted common unit during the same period of 2021. During the second quarter 2022, Adjusted EBITDA and Distributable Cash Flow increased by 39% and 30%, respectively, as compared to the second quarter 2021. Each metric, as well as the Distribution Coverage Ratio, benefited from the overall performance in both the wholesale and retail segments, as well as the growth of the organization as a result of the acquisition of assets from 7-Eleven during the second half of 2021.

    Non-GAAP measures used in this release include EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. These Non-GAAP measures are further described and reconciled to their most directly comparable GAAP measures in the Supplemental Disclosure Regarding Non-GAAP Financial Measures section of this release.

    Wholesale Segment

     

    Key Operating MetricsQ2 2022Q2 2021
    Wholesale segment gross profit$55.0M$44.2M
    Wholesale motor fuel gallons distributed342.8M331.6M
    Average wholesale gross profit per gallon$0.118$0.092

     

    During the second quarter 2022, CrossAmerica’s wholesale segment gross profit increased 24% compared to the second quarter 2021. This was driven by an increase in motor fuel gross profit resulting from a 3% increase in fuel volume distributed and a 28% increase in fuel margin per gallon. The main driver of the volume increase was the acquisition of assets from 7-Eleven. The Partnership’s wholesale fuel margin benefited from its ongoing strategic initiatives, increased volume to CrossAmerica’s company operated retail sites, higher dealer tank wagon (DTW) margins due to greater volatility in the price of crude oil and subsequent increase in fuel price volatility in the second quarter 2022 as compared to the second quarter 2021 and higher terms discounts as a result of higher fuel prices during the quarter as compared to the same period in 2021.

    Retail Segment

    Key Operating MetricsQ2 2022Q2 2021
    Retail segment gross profit$34.9M$21.1M
    Retail motor fuel gallons distributed128.8M89.8M
    Same store retail motor fuel gallons distributed45.1M44.3M
    Motor fuel gross profit$9.3M$4.9M
    Same store merchandise sales excluding cigs.$28.2M$28.0M
    Merchandise gross profit$20.2M$12.0M
    Merchandise gross profit percentage27.3%26.5%

     

    For the second quarter 2022, the retail segment generated a 66% increase in gross profit compared to the second quarter 2021 due to increased retail fuel gallons sold, higher fuel margins and higher merchandise gross profit.

     

    The retail segment sold 128.8 million of retail fuel gallons during the second quarter 2022, a 43% increase over second quarter 2021. This increased volume resulted from the increase in company operated sites as a result of the acquisition of assets from 7-Eleven, which occurred primarily during the third quarter 2021. Same store fuel volume for the second quarter 2022 increased to 45.1 million gallons from 44.3 million gallons during the second quarter 2021, an increase of 2%. Additionally, the retail segment generated higher fuel margins for the three months ended June 30, 2022, as compared to the same period in 2021 due to the segment having a higher proportion of company operated retail locations as compared to commission agent locations than during the second quarter 2021.

     

    CrossAmerica’s merchandise gross profit and other revenue increased due to the increase in company operated sites driven by the acquisition of assets from 7-Eleven, which occurred primarily during the third quarter 2021. Merchandise gross profit percentage increased from 26.5% to 27.3% with same store merchandise sales excluding cigarettes increasing approximately1% for the second quarter 2022 when compared to the second quarter 2021.

    Divestment Activity

     

    During the three and six months ended June 30, 2022, CrossAmerica sold five and nine properties for $2.3 million and $3.8 million in proceeds, resulting in a net gain of $0.5 million and $0.9 million, respectively.

     

    Liquidity and Capital Resources

     

    As of June 30, 2022, CrossAmerica had $626.6 million outstanding under its CAPL Credit Facility and $159.0 million outstanding under its JKM Credit Facility. As of August 4, 2022, after taking into consideration debt covenant restrictions, approximately $135.5 million was available for future borrowings under the CAPL Credit Facility. Leverage, as defined in the CAPL Credit Facility, which excludes any pro forma EBITDA from CrossAmerica’s recent acquisition, was 4.5 times as of June 30, 2022, compared to 5.1 times as of December 31, 2021. As of June 30, 2022, CrossAmerica was in compliance with its financial covenants under the credit facilities.

     

    Distributions

     

    On July 21, 2022, the Board of the Directors of CrossAmerica’s General Partner (“Board”) declared a quarterly distribution of $0.5250 per limited partner unit attributable to the second quarter 2022. As previously announced, the distribution will be paid on August 10, 2022 to all unitholders of record as of August 3, 2022. The amount and timing of any future distributions is subject to the discretion of the Board as provided in CrossAmerica’s Partnership Agreement.

     

     

     

    Conference Call

     

    The Partnership will host a conference call on August 9, 2022 at 9:00 a.m. Eastern Time to discuss second quarter 2022 earnings results. The conference call numbers are 866-374-5140 or 404-400-0571 and the passcode for both is 77652712#. A live audio webcast of the conference call and the related earnings materials, including reconciliations of non-GAAP financial measures to GAAP financial measures and any other applicable disclosures, will be available on that same day on the investor section of the CrossAmerica website (www.crossamericapartners.com). A slide presentation for the conference call will also be available on the investor section of the Partnership’s website. To listen to the audio webcast, go to https://caplp.gcs-web.com/webcasts-presentations. After the live conference call, an archive of the webcast will be available on the investor section of the CrossAmerica website at https://caplp.gcs-web.com/webcasts-presentations within 24 hours after the call for a period of sixty days.

     

     

    CROSSAMERICA PARTNERS LP

    CONSOLIDATED BALANCE SHEETS

    (Thousands of Dollars, except unit data)

     

      June 30,  December 31, 
      2022  2021 
    ASSETS      
    Current assets:      
    Cash and cash equivalents $3,572  $7,648 
    Accounts receivable, net of allowances of $542 and $458, respectively  48,456   33,331 
    Accounts receivable from related parties  1,194   1,149 
    Inventory  56,770   46,100 
    Assets held for sale  4,649   4,907 
    Other current assets  20,804   13,180 
    Total current assets  135,445   106,315 
    Property and equipment, net  745,594   755,454 
    Right-of-use assets, net  164,934   169,333 
    Intangible assets, net  100,232   114,187 
    Goodwill  99,409   100,464 
    Other assets  29,794   24,389 
    Total assets $1,275,408  $1,270,142 
           
    LIABILITIES AND EQUITY      
    Current liabilities:      
    Current portion of debt and finance lease obligations $5,575  $10,939 
    Current portion of operating lease obligations  35,212   34,832 
    Accounts payable  87,730   67,173 
    Accounts payable to related parties  7,581   7,679 
    Accrued expenses and other current liabilities  21,121   20,682 
    Motor fuel and sales taxes payable  21,325   22,585 
    Total current liabilities  178,544   163,890 
    Debt and finance lease obligations, less current portion  788,199   810,635 
    Operating lease obligations, less current portion  135,328   140,149 
    Deferred tax liabilities, net  9,505   12,341 
    Asset retirement obligations  46,212   45,366 
    Other long-term liabilities  46,533   41,203 
    Total liabilities  1,204,321   1,213,584 
           
    Commitments and contingencies      
           
    Preferred membership interests  24,993    
           
    Equity:      
    Common units—37,912,710 and 37,896,556 units issued and
    outstanding at June 30, 2022 and December 31, 2021, respectively
      32,412   53,528 
    Accumulated other comprehensive income  13,682   3,030 
    Total equity  46,094   56,558 
    Total liabilities and equity $1,275,408  $1,270,142 

     

    CROSSAMERICA PARTNERS LP

    CONSOLIDATED STATEMENTS OF OPERATIONS

    (Thousands of Dollars, Except Unit and Per Unit Amounts)

     

      Three Months Ended June 30,  Six Months Ended June 30, 
      2022  2021  2022  2021 
    Operating revenues (a) $1,475,033  $859,334  $2,568,244  $1,516,618 
    Cost of sales (b)  1,386,088   794,240   2,400,469   1,396,656 
    Gross profit  88,945   65,094   167,775   119,962 
                 
    Operating expenses:            
    Operating expenses (c)  42,216   31,070   84,325   60,473 
    General and administrative expenses  5,680   6,876   12,163   14,526 
    Depreciation, amortization and accretion expense  19,919   19,583   40,194   37,614 
    Total operating expenses  67,815   57,529   136,682   112,613 
    (Loss) gain on dispositions and lease terminations, net  (58)  597   (302)  (51)
    Operating income  21,072   8,162   30,791   7,298 
    Other income, net  102   204   232   292 
    Interest expense  (7,321)  (3,870)  (13,982)  (7,367)
    Income before income taxes  13,853   4,496   17,041   223 
    Income tax benefit  (113)  (293)  (1,972)  (599)
    Net income  13,966   4,789   19,013   822 
    Accretion of preferred membership interests  563      563    
    Net income available to limited partners $13,403  $4,789  $18,450  $822 
                 
    Basic and diluted earnings per common unit $0.35  $0.13  $0.49  $0.02 
                 
    Weighted-average limited partner units:            
    Basic common units  37,912,710   37,874,868   37,906,463   37,872,079 
    Diluted common units  37,957,434   37,905,010   37,951,466   37,902,225 
                 
    Supplemental information:            
    (a) includes excise taxes of: $71,601  $50,047  $138,460  $93,753 
    (a) includes rent income of:  20,849   20,862   41,476   41,334 
    (b) excludes depreciation, amortization and accretion            
    (b) includes rent expense of:  5,945   6,031   11,786   11,944 
    (c) includes rent expense of:  3,801   3,265   7,509   6,461 

     

     

    CROSSAMERICA PARTNERS LP

    CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Thousands of Dollars)

     

      Six Months Ended June 30, 
      2022  2021 
    Cash flows from operating activities:      
    Net income $19,013  $822 
    Adjustments to reconcile net income to net cash provided by
    operating activities:
          
    Depreciation, amortization and accretion expense  40,194   37,614 
    Amortization of deferred financing costs  1,370   521 
    Credit loss expense  88   32 
    Deferred income tax benefit  (2,836)  (921)
    Equity-based employee and director compensation expense  954   754 
    Loss on dispositions and lease terminations, net  302   51 
    Changes in operating assets and liabilities, net of acquisitions  (4,426)  2,141 
    Net cash provided by operating activities  54,659   41,014 
           
    Cash flows from investing activities:      
    Principal payments received on notes receivable  66   85 
    Proceeds from sale of assets  3,793   5,600 
    Capital expenditures  (16,403)  (21,911)
    Cash paid in connection with acquisitions, net of cash acquired  (1,885)  (4,166)
    Net cash used in investing activities  (14,429)  (20,392)
           
    Cash flows from financing activities:      
    Borrowings under revolving credit facilities  57,600   57,000 
    Repayments on revolving credit facilities  (61,620)  (36,399)
    Borrowings under the Term Loan Facility  1,120    
    Repayments on the Term Loan Facility  (24,600)   
    Net proceeds from issuance of preferred membership interests  24,430    
    Payments of finance lease obligations  (1,337)  (1,287)
    Payments of deferred financing costs  (6)   
    Distributions paid on distribution equivalent rights  (93)  (63)
    Distributions paid on common units  (39,800)  (39,765)
    Net cash used in financing activities  (44,306)  (20,514)
    Net increase in cash and cash equivalents  (4,076)  108 
           
    Cash and cash equivalents at beginning of period  7,648   513 
    Cash and cash equivalents at end of period $3,572  $621 

     

    Segment Results

    Wholesale

    The following table highlights the results of operations and certain operating metrics of the Wholesale segment (thousands of dollars, except for the number of distribution sites and per gallon amounts):

      Three Months Ended June 30,  Six Months Ended June 30, 
      2022  2021  2022  2021 
    Gross profit:            
    Motor fuel–third party $19,034  $18,529  $35,219  $34,052 
    Motor fuel–intersegment and related party  21,467   11,961   38,086   17,690 
    Motor fuel gross profit  40,501   30,490   73,305   51,742 
    Rent gross profit  12,646   12,973   24,985   25,466 
    Other revenues  1,807   729   3,593   1,863 
    Total gross profit  54,954   44,192   101,883   79,071 
    Operating expenses  (10,690)  (10,948)  (20,762)  (20,922)
    Operating income $44,264  $33,244  $81,121  $58,149 
    Motor fuel distribution sites (end of period): (a)            
    Motor fuel–third party            
    Independent dealers (b)  637   675   637   675 
    Lessee dealers (c)  645   651   645   651 
    Total motor fuel distribution–third party sites  1,282   1,326   1,282   1,326 
    Motor fuel–intersegment and related party            
    Commission agents (Retail segment) (c)  199   202   199   202 
    Company operated retail sites (Retail segment) (d)  253   152   253   152 
    Total motor fuel distribution–intersegment and
    related party sites
      452   354   452   354 
    Motor fuel distribution sites (average during the period):            
    Motor fuel-third party distribution  1,289   1,328   1,295   1,333 
    Motor fuel-intersegment and related party distribution  454   353   454   355 
    Total motor fuel distribution sites  1,743   1,681   1,749   1,688 
    Volume of gallons distributed (in thousands)            
    Third party  214,413   242,392   418,328   456,100 
    Intersegment and related party  128,425   89,233   244,754   167,305 
    Total volume of gallons distributed  342,838   331,625   663,082   623,405 
                 
    Wholesale margin per gallon $0.118  $0.092  $0.111  $0.083 

    (a) In addition, as of June 30, 2022 and 2021, respectively, CrossAmerica distributed motor fuel to 15 and 14 sub-wholesalers who distributed to additional sites.

    (b) The decrease in the independent dealer site count was primarily attributable to loss of contracts, most of which were lower margin, partially offset by the increase in independent dealer sites as a result of the real estate rationalization effort and the resulting reclassification of the sites from a lessee dealer or commission site to an independent dealer site when CrossAmerica continues to supply the sites after divestiture.

    (c) The decreases in the lessee dealer and commission agent site counts were primarily attributable to the real estate rationalization effort.

    (d) The increase in the company operated site count was primarily attributable to the 106 company operated sites from the acquisition of assets from 7-Eleven, which occurred primarily during the third quarter 2021.

    Retail

    The following table highlights the results of operations and certain operating metrics of the Retail segment (in thousands, except for the number of retail sites):

      Three Months Ended June 30,  Six Months Ended June 30, 
      2022  2021  2022  2021 
    Gross profit:            
    Motor fuel $9,329  $4,937  $19,825  $10,370 
    Merchandise  20,165   11,969   36,847   22,333 
    Rent  2,258   1,858   4,705   3,924 
    Other revenue  3,194   2,311   6,282   4,170 
    Total gross profit  34,946   21,075   67,659   40,797 
    Operating expenses  (31,526)  (20,122)  (63,563)  (39,551)
    Operating income $3,420  $953  $4,096  $1,246 
                 
    Retail sites (end of period):            
    Commission agents (a)  199   202   199   202 
    Company operated retail sites(b)  253   152   253   152 
    Total system sites at the end of the period  452   354   452   354 
                 
    Total system operating statistics:            
    Average retail fuel sites during the period  454   353   454   355 
    Volume of gallons sold  128,815   89,806   244,855   168,041 
                 
    Commission agents statistics:            
    Average retail fuel sites during the period  200   203   200   204 
                 
    Company operated retail site statistics:            
    Average retail fuel sites during the period  254   150   254   151 
    Same store fuel volume (c)  45,078   44,340   83,721   80,578 
    Same store merchandise sales (c) $40,744  $42,017  $74,571  $76,877 
    Same store merchandise sales excluding cigarettes (c) $28,187  $27,952  $50,622  $50,295 
    Merchandise gross profit percentage  27.3%  26.5%  27.0%  26.9%

    (a) The decrease in the commission site count was primarily attributable to the real estate rationalization effort.

    (b) The increase in the company operated site count was primarily attributable to the 106 company operated sites from the acquisition of assets from 7-Eleven.

    (c) Same store fuel volume and same store merchandise sales include aggregated individual store results for all stores that had fuel volume or merchandise sales in all months for both periods. Same store merchandise sales includes store and cigarette sales and excludes branded food sales and other revenues such as lottery commissions and car wash sales.

     

    Supplemental Disclosure Regarding Non-GAAP Financial Measures

     

    CrossAmerica uses the non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net income before deducting interest expense, income taxes and depreciation, amortization and accretion (which includes certain impairment charges). Adjusted EBITDA represents EBITDA as further adjusted to exclude equity-based compensation expense, gains or losses on dispositions and lease terminations, net and certain discrete acquisition related costs, such as legal and other professional fees, separation benefit costs and certain other discrete non-cash items arising from purchase accounting. Distributable Cash Flow represents Adjusted EBITDA less cash interest expense, sustaining capital expenditures and current income tax expense. The Distribution Coverage Ratio is computed by dividing Distributable Cash Flow by distributions paid.

     

    EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are used as supplemental financial measures by management and by external users of our financial statements, such as investors and lenders. EBITDA and Adjusted EBITDA are used to assess CrossAmerica’s financial performance without regard to financing methods, capital structure or income taxes and the ability to incur and service debt and to fund capital expenditures. In addition, Adjusted EBITDA is used to assess the operating performance of the Partnership’s business on a consistent basis by excluding the impact of items which do not result directly from the wholesale distribution of motor fuel, the leasing of real property, or the day to day operations of CrossAmerica’s retail site activities. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are also used to assess the ability to generate cash sufficient to make distributions to CrossAmerica’s unitholders.

     

    CrossAmerica believes the presentation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio provides useful information to investors in assessing the financial condition and results of operations. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio should not be considered alternatives to net income or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio have important limitations as analytical tools because they exclude some but not all items that affect net income. Additionally, because EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in the industry, CrossAmerica’s definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

     

    The following table presents reconciliations of EBITDA, Adjusted EBITDA, and Distributable Cash Flow to net income, the most directly comparable U.S. GAAP financial measure, for each of the periods indicated (in thousands, except for per unit amounts):

      Three Months Ended June 30,  Six Months Ended June 30, 
      2022  2021  2022  2021 
    Net income (a) $13,966  $4,789  $19,013  $822 
    Interest expense  7,321   3,870   13,982   7,367 
    Income tax benefit  (113)  (293)  (1,972)  (599)
    Depreciation, amortization and accretion expense  19,919   19,583   40,194   37,614 
    EBITDA  41,093   27,949   71,217   45,204 
    Equity-based employee and director compensation expense  222   386   954   754 
    (Gain) loss on dispositions and lease terminations, net  58   (597)  302   51 
    Acquisition-related costs (b)  10   1,967   878   4,361 
    Adjusted EBITDA  41,383   29,705   73,351   50,370 
    Cash interest expense  (6,631)  (3,610)  (12,612)  (6,846)
    Sustaining capital expenditures (c)  (1,663)  (1,040)  (3,217)  (2,432)
    Current income tax expense  (678)  (50)  (863)  (334)
    Distributable Cash Flow $32,411  $25,005  $56,659  $40,758 
    Distributions paid  19,904   19,884   39,800   39,765 
    Distribution Coverage Ratio (d) 1.63x  1.26x  1.42x  1.02x 

     

    (a) Beginning in the second quarter of 2022, CrossAmerica reconciled Adjusted EBITDA to Net Income rather than to Net income available to limited partners. The difference between Net income and Net income available to limited partners is that, beginning in the second quarter of 2022, the accretion of preferred membership interests issued in late March 2022 is a deduction from Net income in computing Net income available to limited partners. Because Adjusted EBITDA is used to assess our financial performance, without regard to capital structure, CrossAmerica believes Adjusted EBITDA should be reconciled with Net Income, so that the calculation isn’t impacted by the accretion of preferred membership interests. This approach is comparable to the reconciliation of Adjusted EBIDTA to Net income available to limited partners in past periods, as the Partnership has not recorded accretion of preferred membership interests in past periods.

    (b) Relates to certain discrete acquisition related costs, such as legal and other professional fees, separation benefit costs and certain purchase accounting adjustments associated with recently acquired businesses.

    (c) Under the Partnership Agreement, sustaining capital expenditures are capital expenditures made to maintain CrossAmerica’s long-term operating income or operating capacity. Examples of sustaining capital expenditures are those made to maintain existing contract volumes, including payments to renew existing distribution contracts, or to maintain the sites in conditions suitable to lease, such as parking lot or roof replacement/renovation, or to replace equipment required to operate the existing business.

    (d) In 2022, CrossAmerica updated its calculation of its Distribution Coverage Ratio to divide Distributable Cash Flow by distributions paid, whereas in prior periods, the Distribution Coverage Ratio was calculated as Distributable Cash Flow divided by the weighted-average diluted common units and then divided that result by distributions paid per limited partner unit.

    About CrossAmerica Partners LP

    CrossAmerica Partners LP is a leading wholesale distributor of motor fuels, convenience store operator, and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly owned and controlled by entities affiliated with Joseph V. Topper, Jr., the founder of CrossAmerica Partners and a member of the board of the general partner since 2012. Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,750 locations and owns or leases approximately 1,150 sites. With a geographic footprint covering 34 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Sunoco, Valero, Gulf, Citgo, Marathon and Phillips 66. CrossAmerica Partners LP ranks as one of ExxonMobil’s largest distributors by fuel volume in the United States and in the top 10 for additional brands. For additional information, please visit www.crossamericapartners.com.

    Contact

    Investor Relations: Randy Palmer, rpalmer@caplp.com or 210-742-8316

    Cautionary Statement Regarding Forward-Looking Statements

    Statements contained in this release that state the Partnership’s or management’s expectations or predictions of the future are forward-looking statements. The words “believe,” “expect,” “should,” “intends,” “estimates,” “target” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see CrossAmerica’s Form 10-K or Forms 10-Q filed with the Securities and Exchange Commission, and available on CrossAmerica’s website at www.crossamericapartners.com. The Partnership undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

    Note to Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100%) of CrossAmerica Partners LP’s distributions to non-U.S. investors as attributable to income that is effectively connected with a United States trade or business. Accordingly, CrossAmerica Partners LP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.


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