Crossamerica Partners LP ( (CAPL) ) has released its Q4 earnings. Here is a breakdown of the information Crossamerica Partners LP presented to its investors.
CrossAmerica Partners LP is a prominent wholesale distributor of motor fuels, convenience store operator, and real estate owner and lessee in the retail distribution of motor fuels across the United States. The company boasts a significant presence in 34 states and maintains strong relationships with major oil brands.
In its latest earnings report, CrossAmerica Partners LP announced a net income of $16.9 million for the fourth quarter of 2024, slightly up from $16.7 million in the same period the previous year. However, the company experienced a decline in Adjusted EBITDA and Distributable Cash Flow compared to the previous year, primarily due to increased operating expenses and a decrease in motor fuel margins.
The retail segment showed a positive performance with a 9% increase in gross profit for the fourth quarter, driven by a higher site count and increased merchandise sales. Conversely, the wholesale segment saw a decline in gross profit by 22% due to a decrease in distribution sites and fuel margins. The company also reported divestment activities, selling 30 properties throughout the year, which contributed to its real estate rationalization efforts.
Looking ahead, CrossAmerica Partners LP remains optimistic about its strategic initiatives, including converting sites to retail operations and divesting select locations to enhance its financial and competitive position. Despite challenges such as inflationary pressures, the company is confident in its business strength and future growth potential.