The following is a summary of the CrossAmerica Partners LP (CAPL) Q4 2023 Earnings Call Transcript:
Financial Performance:
CrossAmerica Partners reported a Q4 net income of $16.7 million, slightly down from $17.1 million in Q4 2022, mainly due to higher interest expense.
Q4 adjusted EBITDA was $47.6 million, up 8% from Q4 2022, with distributable cash flow also up 7% at $35.8 million.
The company saw an increase in operating expenses due to an increase in the number of retail sites.
For the full year 2023, net income decreased to $42.6 million from $63.7 million in 2022, with distributable cash flow also down at $116.7 million from $140.9 million in 2022.
Capital expenditures of $12.9 million were spent during Q4, with a majority towards growth-related endeavors.
Business Progress:
Increases in operating income were noticed in both wholesale and retail segments during Q4.
CrossAmerica saw a 1% increase in wholesale segment gross profit to $33 million due to increased fuel margin.
Despite a 4% decrease in wholesale volume, retail segment gross profit for Q4 2023 was $69 million, driven by an 11% increase in motor fuel profit, and an 18% increase in merchandise gross profit.
The company paid down $9 million from its 2022 year-end balance and aims for an operational performance that can manage its leverage ratio of approximately 4x.
CrossAmerica converted certain sites to company-operated locations, ended leases with Applegreen, and divested 10 properties for $9.2 million, indicating a move towards optimizing its portfolio.
More details: CrossAmerica IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.