CrossAmerica Partners LP Reports 11% Decline in Q3 2024 Revenues, Net Income Down 14%

CrossAmerica Partners LP reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, operating revenues totaled $1,079.2 million, a decrease of $131 million (11%) from $1,210.0 million in Q3 2023. This decline was primarily driven by a 26% drop in wholesale segment revenues, attributed to a 14% decrease in average wholesale fuel selling prices and a 14% reduction in volume. Conversely, retail segment revenues increased by $33 million (6%), supported by a 12% rise in volume from site conversions, despite a 9% decrease in average retail fuel prices. Gross profit for the quarter rose to $111.2 million, up from $100.4 million in the prior year, reflecting improved merchandise and motor fuel gross profit in the retail segment.

Net income for Q3 2024 was $10.7 million, down from $12.3 million in Q3 2023, while net income available to limited partners decreased to $10.1 million from $11.7 million. Earnings per common unit fell to $0.27 from $0.31. For the nine months ended September 30, 2024, net income was $5.6 million, a significant decline from $25.8 million in the same period of 2023.

The company’s total assets decreased to $1.13 billion as of September 30, 2024, from $1.18 billion at the end of 2023. Total liabilities increased to $1.16 billion, up from $1.15 billion, while total current liabilities rose to $172.8 million from $161.1 million. The common units issued and outstanding increased slightly to 38,046,688 from 37,983,154.

Strategically, CrossAmerica Partners completed the acquisition of assets from Applegreen Midwest, LLC and Applegreen Florida, LLC for $16.9 million, which involved the termination of lease agreements at 59 locations. This acquisition is expected to enhance retail segment performance, although it also led to increased operating expenses. The company recorded impairment charges of $3.2 million in Q3 2024, compared to an insignificant amount in the prior year, primarily related to real estate rationalization efforts.

Cash and cash equivalents rose to $7.8 million as of September 30, 2024, from $5.0 million at the end of 2023. The company reported net cash provided by operating activities of $76.7 million for the nine months ended September 30, 2024, a slight decrease from $79.0 million in the same period of 2023.

Overall, CrossAmerica Partners LP's financial performance reflects the challenges of fluctuating fuel prices and strategic shifts in its operational model, particularly through acquisitions and site conversions.