CrossAmerica Partners LP Reports Second Quarter 2024 Results

Allentown. PA, Aug. 07, 2024 (GLOBE NEWSWIRE) —

CrossAmerica Partners LP Reports Second Quarter 2024 Results

  • Reported Second Quarter 2024 Net Income of $12.4 million, Adjusted EBITDA of $42.6 million and Distributable Cash Flow of $26.1 million compared to Net Income of $14.5 million, Adjusted EBITDA of $42.2 million and Distributable Cash Flow of $30.4 million for the Second Quarter 2023
  • Reported Second Quarter 2024 Gross Profit for the Retail Segment of $76.6 million compared to $66.0 million of Gross Profit for the Second Quarter 2023 and Second Quarter 2024 Gross Profit for the Wholesale Segment of $28.1 million compared to $31.7 million of Gross Profit for the Second Quarter 2023
  • Leverage, as defined in the CAPL Credit Facility, was 4.39 times as of June 30, 2024, compared to 4.49 times as of March 31, 2024
  • The Distribution Coverage Ratio for the trailing twelve months ended June 30, 2024 was 1.32 times compared to 1.68 times for the comparable period of 2023
  • 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 2024

Allentown, PA August 7, 2024 – 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, 2024.

“Our financial results for the second quarter were significantly improved from the first quarter, despite a continued overall soft fuel demand environment,” said Charles Nifong, President and CEO of CrossAmerica. “Our results reflect our continued successful execution of our strategy.  We realized strong results in our retail segment, with increases in overall gallons, sales and segment operating income and we converted an additional 43 sites to the retail segment during the quarter. Our distribution coverage ratio for the quarter was solid, materially higher than in the first quarter, and our balance sheet remains strong.  Overall, our results demonstrate the stability of our business and that we remain well positioned for future growth.”

Second Quarter Results

Consolidated Results

Key Operating Metrics Q2 2024 Q2 2023
Net Income $12.4M $14.5M
Operating Expenses $55.8M $49.8M
Adjusted EBITDA $42.6M $42.2M
Distributable Cash Flow $26.1M $30.4M
Distribution Coverage Ratio: Current Quarter 1.30x 1.53x
Distribution Coverage Ratio: Trailing 12 Months 1.32x 1.68x

CrossAmerica reported an increase in Adjusted EBITDA and declines in Net Income and Distributable Cash Flow for the second quarter 2024 compared to the second quarter 2023. The slight increase in Adjusted EBITDA year-over-year for the quarter was primarily driven by an increase in the retail segment’s motor fuel and merchandise gross profit, offset by an increase in operating expenses primarily related to the conversion of certain lessee dealer and commission agent sites to company operated sites. The declines in Net Income and Distributable Cash Flow were primarily driven by an increase in interest expense relative to the prior year mainly due to the expiration of certain favorable interest rate hedges that occurred at the start of the quarter.

Retail Segment

Key Operating Metrics Q2 2024 Q2 2023
Retail segment gross profit $76.6M $66.0M
     
Retail segment motor fuel gallons distributed 143.0M 130.8M
Same store motor fuel gallons distributed 121.0M 123.3M
Retail segment motor fuel gross profit $39.3M $35.7M
Retail segment margin per gallon, before deducting credit card fees and commissions $ 0.373   $ 0.370  
     
Same store merchandise sales excluding cigarettes* $53.5M $52.6M
Merchandise gross profit* $29.8M $24.2M
Merchandise gross profit percentage*   28.3 %   29.0 %
     
Operating Expenses $48.6M $39.9M
Retail Sites (end of period)   589     482  

*Includes only company operated retail sites

For the second quarter 2024, the retail segment generated a 16% increase in gross profit compared to the second quarter 2023. The increase for the second quarter 2024 was primarily due to higher motor fuel (+10%) and merchandise (+23%) gross profit.

The retail segment sold 143.0 million of retail fuel gallons during the second quarter 2024, which was an increase of 9% when compared to the second quarter 2023. This volume increase was primarily driven by the conversion of lessee dealer sites to company operated and commission agent sites over the past year and during the quarter, offset by a 2% decline in volume for same store locations.

For the second quarter 2024, CrossAmerica’s merchandise gross profit and other revenue increased 25% when compared to the second quarter 2023. The second quarter increase was primarily driven by an increase in the average company operated site count due to the conversion of certain lessee dealer and commission agent sites to company operated sites. Same store merchandise sales excluding cigarettes increased 2% for the second quarter 2024 when compared to the second quarter 2023. Merchandise gross profit percentage decreased from 29.0% for the second quarter 2023 to 28.3% for the second quarter 2024.

For the second quarter 2024, operating expenses for the retail segment increased 22% primarily driven by a 28% (79 site) increase in the average company operated site count due to the conversion of certain lessee dealer and commission agent sites to company operated sites.

Wholesale Segment

Key Operating Metrics Q2 2024 Q2 2023
Wholesale segment gross profit $28.1M $31.7M
Wholesale motor fuel gallons distributed 192.1M 218.1M
Average wholesale gross margin per gallon $ 0.087 $ 0.082

During the second quarter 2024, CrossAmerica’s wholesale segment gross profit decreased 11% compared to the second quarter 2023. This was driven by a decline in motor fuel and rent gross profit primarily due to the conversion of certain lessee dealer sites to company operated and commission agent sites and a net loss of independent dealer contracts. The motor fuel gross profit decline of 7% was driven by a 12% decrease in wholesale volume distributed, with a substantial portion of the wholesale volume decline attributable to the conversion of wholesale locations to retail locations and the associated volume for these locations is now reflected in CrossAmerica’s retail segment. This was partially offset by an increase of 6% in margin per gallon.

Divestment Activity

During the three months ended June 30, 2024, CrossAmerica sold ten properties for $11.9 million in proceeds, resulting in a net gain of $6.5 million.

Acquisition of Assets from Applegreen

As previously announced, the 59 site transaction with Applegreen closed on a rolling basis by site beginning during the first quarter 2024 and ending in April 2024. Additional details regarding this transaction are available in the CrossAmerica Partners Second Quarter 2024 Form 10-Q.

Liquidity and Capital Resources

As of June 30, 2024, CrossAmerica had $789.5 million outstanding under its CAPL Credit Facility. As of August 2, 2024, after taking into consideration debt covenant restrictions, approximately $116.0 million was available for future borrowings under the CAPL Credit Facility. Leverage, as defined in the CAPL Credit Facility, was 4.39 times as of June 30, 2024, compared to 4.49 times as of March 31, 2024. As of June 30, 2024, CrossAmerica was in compliance with its financial covenants under the credit facility.

Distributions

On July 23, 2024, 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 2024. As previously announced, the distribution will be paid on August 9, 2024 to all unitholders of record as of August 2, 2024. 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 8, 2024 at 9:00 a.m. Eastern Time to discuss the second quarter 2024 earnings results. The conference call numbers are 800-717-1738 or 646-307-1865 and the passcode for both is 29269. A live audio webcast of the conference call and the related earnings materials, including reconciliations of any 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). After the live conference call, an archive of the webcast will be available on the investor section of the CrossAmerica site at https://caplp.gcs-web.com/webcasts-presentations within 24 hours after the call for a period of sixty days.

Non-GAAP Measures and Same Store Metrics

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.

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 within the same segment. Same store merchandise sales excludes branded food sales and other revenues such as lottery commissions and car wash sales. Certain merchandise products have been transitioned from a gross profit model (whereby CrossAmerica owns the inventory and records sales and cost of sales) to a scan-based trading model (whereby a third party owns the inventory and CrossAmerica records a commission in other revenues). Same store merchandise sales for the three and six months ended June 30, 2024 were adjusted to gross it up for the sales that would have been recorded had CrossAmerica not changed models.

CROSSAMERICA PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(Thousands of Dollars, except unit data)

    June 30,     December 31,  
    2024     2023  
ASSETS            
Current assets:            
Cash and cash equivalents   $ 5,490     $ 4,990  
Accounts receivable, net of allowances of $755 and $709, respectively     38,931       31,185  
Accounts receivable from related parties     88       437  
Inventory     63,583       52,344  
Assets held for sale     2,486       400  
Current portion of interest rate swap contracts     6,478       9,321  
Other current assets     8,499       9,845  
Total current assets     125,555       108,522  
Property and equipment, net     685,306       705,217  
Right-of-use assets, net     142,126       148,317  
Intangible assets, net     85,819       95,261  
Goodwill     99,409       99,409  
Deferred tax assets     818       759  
Interest rate swap contracts, less current portion     4,873       687  
Other assets     20,767       23,510  
Total assets   $ 1,164,673     $ 1,181,682  
             
LIABILITIES AND EQUITY            
Current liabilities:            
Current portion of debt and finance lease obligations   $ 3,183     $ 3,083  
Current portion of operating lease obligations     35,259       34,787  
Accounts payable     75,281       68,986  
Accounts payable to related parties     7,551       10,180  
Accrued expenses and other current liabilities     24,298       23,674  
Motor fuel and sales taxes payable     19,821       20,386  
Total current liabilities     165,393       161,096  
Debt and finance lease obligations, less current portion     786,674       753,880  
Operating lease obligations, less current portion     111,946       118,723  
Deferred tax liabilities, net     7,877       12,919  
Asset retirement obligations     48,607       47,844  
Interest rate swap contracts     430       3,535  
Other long-term liabilities     51,925       52,934  
Total liabilities     1,172,852       1,150,931  
             
Commitments and contingencies (Note 11)            
             
Preferred membership interests     29,073       27,744  
             
Equity:            
Common units— 38,027,194 and 37,983,154 units issued and
outstanding at June 30, 2024 and December 31, 2023, respectively
    (47,893 )     (2,392 )
Accumulated other comprehensive income     10,641       5,399  
Total (deficit) equity     (37,252 )     3,007  
Total liabilities and equity   $ 1,164,673     $ 1,181,682  

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,  
    2024     2023     2024     2023  
Operating revenues (a)   $ 1,133,355     $ 1,145,396     $ 2,074,903     $ 2,161,555  
Costs of sales (b)     1,028,593       1,047,672       1,888,793       1,981,772  
Gross profit     104,762       97,724       186,110       179,783  
                         
Operating expenses:                        
Operating expenses (c)     55,825       49,798       107,853       95,421  
General and administrative expenses     7,892       7,475       14,730       13,214  
Depreciation, amortization and accretion expense     18,446       19,298       37,167       39,118  
Total operating expenses     82,163       76,571       159,750       147,753  
Gain (loss) on dispositions and lease terminations, net     5,578       6,700       (11,228 )     4,933  
Operating income     28,177       27,853       15,132       36,963  
Other income, net     158       163       407       424  
Interest expense     (14,208 )     (10,683 )     (24,749 )     (22,695 )
Income (loss) before income taxes     14,127       17,333       (9,210 )     14,692  
Income tax expense (benefit)     1,703       2,797       (4,094 )     1,135  
Net income (loss)     12,424       14,536       (5,116 )     13,557  
Accretion of preferred membership interests     672       615       1,329       1,216  
Net income (loss) available to limited partners   $ 11,752     $ 13,921     $ (6,445 )   $ 12,341  
                         
Earnings (loss) per common unit                        
Basic   $ 0.31     $ 0.37     $ (0.17 )   $ 0.33  
Diluted   $ 0.31     $ 0.36     $ (0.17 )   $ 0.32  
                         
Weighted-average common units:                        
Basic     38,027,194       37,952,950       38,010,739       37,946,676  
Diluted     38,199,490       38,150,236       38,010,739       38,143,697  
                         
Supplemental information:                        
(a) includes excise taxes of:   $ 82,394     $ 76,191     $ 153,106     $ 146,075  
(a) includes rent income of:     17,855       20,523       37,021       41,843  
(b) excludes depreciation, amortization and accretion                        
(b) includes rent expense of:     5,192       5,658       10,611       11,212  
(c) includes rent expense of:     4,497       3,911       8,439       7,709  

CROSSAMERICA PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)

    Six Months Ended June 30,  
    2024     2023  
Cash flows from operating activities:            
Net (loss) income   $ (5,116 )   $ 13,557  
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
           
Depreciation, amortization and accretion expense     37,167       39,118  
Amortization of deferred financing costs     968       2,325  
Credit loss expense     81       37  
Deferred income tax (benefit) expense     (5,100 )     582  
Equity-based employee and director compensation expense     574       1,123  
Loss (gain) on dispositions and lease terminations, net     11,228       (4,933 )
Changes in operating assets and liabilities, net of acquisitions     (5,079 )     (4,546 )
Net cash provided by operating activities     34,723       47,263  
             
Cash flows from investing activities:            
Principal payments received on notes receivable     81       107  
Proceeds from sale of assets     10,733       4,533  
Capital expenditures     (11,411 )     (11,328 )
Lease terminations payments to Applegreen, including inventory purchases     (25,517 )      
Net cash used in investing activities     (26,114 )     (6,688 )
             
Cash flows from financing activities:            
Borrowings under revolving credit facilities     70,013       205,900  
Repayments on revolving credit facilities     (36,500 )     (50,546 )
Repayments on the Term Loan Facility           (158,980 )
Payments of finance lease obligations     (1,513 )     (1,417 )
Payments of deferred financing costs     (74 )     (7,022 )
Distributions paid on distribution equivalent rights     (130 )     (111 )
Income tax distributions paid on preferred membership interests           (119 )
Distributions paid on common units     (39,905 )     (39,843 )
Net cash used in financing activities     (8,109 )     (52,138 )
Net increase (decrease) in cash and cash equivalents     500       (11,563 )
             
Cash and cash equivalents at beginning of period     4,990       16,054  
Cash and cash equivalents at end of period   $ 5,490     $ 4,491  

Segment Results

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,  
    2024     2023     2024     2023  
Gross profit:                        
Motor fuel   $ 39,289     $ 35,737     $ 65,326     $ 62,497  
Merchandise     29,849       24,232       51,292       42,355  
Rent     2,258       2,263       4,566       4,774  
Other revenue     5,248       3,793       9,847       7,248  
Total gross profit     76,644       66,025       131,031       116,874  
Operating expenses     (48,631 )     (39,874 )     (91,762 )     (75,956 )
Operating income   $ 28,013     $ 26,151     $ 39,269     $ 40,918  
                         
Retail sites (end of period):                        
Company operated retail sites (a)     372       292       372       292  
Commission agents (b)     217       190       217       190  
Total system sites at the end of the period     589       482       589       482  
                         
Total retail segment statistics:                        
Volume of gallons sold     143,016       130,804       264,733       249,889  
Same store total system gallons sold (c)     120,974       123,263       226,000       232,697  
Average retail fuel sites     576       477       545       468  
Margin per gallon, before deducting credit card fees and commissions     0.373       0.370       0.343       0.345  
                         
Company operated site statistics:                        
Average retail fuel sites     365       286       340       273  
Same store fuel volume (c)     83,013       83,739       152,931       156,229  
Margin per gallon, before deducting credit card fees   $ 0.397     $ 0.394     $ 0.365     $ 0.369  
Same store merchandise sales (c)   $ 75,748     $ 75,719     $ 134,534     $ 133,872  
Same store merchandise sales excluding cigarettes   $ 53,520     $ 52,630     $ 94,113     $ 91,897  
Merchandise gross profit percentage     28.3 %     29.0 %     28.2 %     28.4 %
                         
Commission site statistics:                        
Average retail fuel sites     211       191       205       195  
Margin per gallon, before deducting credit card fees and commissions   $ 0.315     $ 0.320     $ 0.292     $ 0.297  

(a) The increase in the company operated site count was primarily attributable to the conversion of certain lessee dealer and commission agent sites to company operated sites.
(b) The increase in the commission agent site count was primarily attributable to the conversion of certain lessee dealer sites to commission agent sites, partially offset by the conversion of certain commission agent sites to company operated sites.
(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 excludes branded food sales and other revenues such as lottery commissions and car wash sales. Certain merchandise products have been transitioned from a gross profit model (whereby CrossAmerica owns the inventory and records sales and cost of sales) to a scan-based trading model (whereby a third party owns the inventory and CrossAmerica records a commission in other revenues). Same store merchandise sales for the three and six months ended June 30, 2024 were adjusted to gross it up for the sales that would have been recorded had CrossAmerica not changed models.

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,  
    2024     2023     2024     2023  
Gross profit:                        
Motor fuel gross profit   $ 16,639     $ 17,933     $ 31,241     $ 34,641  
Rent gross profit     10,405       12,602       21,844       25,857  
Other revenues     1,074       1,164       1,994       2,411  
Total gross profit     28,118       31,699       55,079       62,909  
Operating expenses     (7,194 )     (9,924 )     (16,091 )     (19,465 )
Operating income   $ 20,924     $ 21,775     $ 38,988     $ 43,444  
                         
Motor fuel distribution sites (end of period): (a)                        
Independent dealers (b)     618       641       618       641  
Lessee dealers (c)     457       586       457       586  
Total motor fuel distribution sites     1,075       1,227       1,075       1,227  
                         
Average motor fuel distribution sites     1,096       1,236       1,134       1,253  
                         
Volume of gallons distributed     192,111       218,131       376,136       419,992  
                         
Margin per gallon   $ 0.087     $ 0.082     $ 0.083     $ 0.082  

(a) In addition, CrossAmerica distributed motor fuel to sub-wholesalers who distributed to additional sites.
(b) The decrease in the independent dealer site count was primarily attributable to the net loss of contracts, partially offset by divestitures of certain lessee dealer sites but with continued fuel supply.
(c) The decrease in the lessee dealer count was primarily attributable to the conversion of certain lessee dealer sites to company operated sites, including through the Applegreen Acquisition, and CrossAmerica’s real estate rationalization effort.

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,  
    2024     2023     2024     2023  
Net income (loss)   $ 12,424     $ 14,536     $ (5,116 )   $ 13,557  
Interest expense     14,208       10,683       24,749       22,695  
Income tax expense (benefit)     1,703       2,797       (4,094 )     1,135  
Depreciation, amortization and accretion expense     18,446       19,298       37,167       39,118  
EBITDA     46,781       47,314       52,706       76,505  
Equity-based employee and director compensation expense     369       562       574       1,123  
(Gain) loss on dispositions and lease terminations, net (a)     (5,578 )     (6,700 )     11,228       (4,933 )
Acquisition-related costs (b)     998       1,022       1,630       1,241  
Adjusted EBITDA     42,570       42,198       66,138       73,936  
Cash interest expense     (13,723 )     (10,207 )     (23,781 )     (20,370 )
Sustaining capital expenditures (c)     (1,926 )     (1,436 )     (3,568 )     (3,485 )
Current income tax expense (d)     (870 )     (160 )     (1,007 )     (554 )
Distributable Cash Flow   $ 26,051     $ 30,395     $ 37,782     $ 49,527  
Distributions paid on common units     19,964       19,925       39,905       39,843  
Distribution Coverage Ratio   1.30x     1.53x     0.95x     1.24x  

(a) During the three months ended June 30, 2024, CrossAmerica recorded a $6.5 million net gain in connection with its ongoing real estate rationalization effort, partially offset by $0.9 million of net losses on lease terminations and asset disposals, including non-cash write-offs of deferred rent income. During the three months ended June 30, 2023, CrossAmerica recorded a $6.1 million net gain in connection with its ongoing real estate rationalization effort and a $0.6 million net gain on lease terminations and asset disposals.
(b) Relates to certain acquisition-related costs, such as legal and other professional fees, separation benefit costs and purchase accounting adjustments associated with recent acquisitions.
(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)    Excludes income tax incurred on the sale of sites.

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 1,700 locations and owns or leases approximately 1,100 sites. With a geographic footprint covering 34 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Marathon, Valero, Phillips 66 and other major brands. 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, [email protected] or 610-625-8000

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.


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