August 6, 2018 - 4:15 PM EDT
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CrossAmerica Partners LP: Reports Second Quarter 2018 Results

CrossAmerica Partners LP Reports Second Quarter 2018 Results

      -          Reported Second Quarter 2018 Operating Loss of $1.6 million and a Net Loss of $6.9 million, driven by a $7.6 million impairment charge related to the Partnership's FTC-required divestiture of nine Upper Midwest sites in connection with Circle K's acquisition of Holiday and a $6.0 million loss on lease terminations.

                  o    Regarding the divestiture, Circle K has agreed to compensate CrossAmerica for an amount to be determined representing the difference between the value for the sites and the proceeds of the sale to FTC approved third-party buyers.

                  o    The lease terminations are primarily related to CrossAmerica's decision to recapture 43 sites from a master lease agreement in Florida in anticipation of transitioning those sites to Applegreen, a third party multi-site operator and developer.

      -          Generated Second Quarter 2018 Adjusted EBITDA of $28.2 million and Distributable Cash Flow of $20.0 million, respectively.

      -          Distribution Coverage for the Second Quarter 2018 was 1.11 times compared to 0.78 times for the First Quarter 2018 and 1.01 times for the Second Quarter 2017.

      -          Reported Second Quarter 2018 Gross Profit for the Wholesale Segment of $33.5 million or a 6% increase when compared to the Second Quarter 2017.

      -          Generated Second Quarter 2018 Gross Profit for the Retail Segment of $10.6 million or a 5% increase when compared to the Second Quarter 2017.

      -          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 2018.

             
Allentown, PA August 6, 2018 - CrossAmerica Partners LP (NYSE: CAPL) ("CrossAmerica" or the "Partnership"), a leading wholesale fuels distributor 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, 2018.

"For the second quarter, both our wholesale and retail segments performed well with a nearly 6% year-over-year increase in gross profit," said Gerardo Valencia, CEO and President of CrossAmerica. "We were able to grow Adjusted EBITDA 2% to $28.2 million compared to $27.8 million in the second quarter of 2017 and improved our distribution coverage ratio from 1.01 times for the second quarter 2017 to 1.11 times for the second quarter 2018 despite our decision announced in May to pay some of our overhead expenses with cash instead of equity." Valencia went on to say, "During the second quarter, we continued to see improvement in our overall operations, including the performance of the Jet-Pep assets in Alabama. We agreed to terms with Applegreen, a leading retail operator and developer, to operate and develop 43 of CrossAmerica's properties in Florida. This improvement along with a continued focus on cost reductions with our General Partner places us in a great position for future growth."

Second Quarter Results

Consolidated Results

For the second quarter 2018, the Partnership reported an Operating loss of $1.6 million compared to Operating income of $2.7 million achieved in the second quarter 2017, driven by a $7.6 million impairment charge related to the Partnership's FTC-required divestiture of nine Upper Midwest sites in connection with Circle K's acquisition of Holiday and a $6.0 million loss on lease terminations, primarily related to CrossAmerica's recapture of sites from a master lease agreement in Florida in anticipation of transitioning those sites to Applegreen, a third party multi-site operator and developer. EBITDA was $20.3 million for the three month period ended June 30, 2018 compared to $16.1 million for the same period in 2017, representing a 26% increase. Adjusted EBITDA was $28.2 million for the second quarter 2018 compared to $27.8 million for the same period in 2017, representing an increase of 2%. The increase in EBITDA and Adjusted EBITDA was due to an increase in gross profits in both the wholesale and retail segments and a reduction in general and administrative expenses (Non-GAAP measures, including EBITDA, as described are reconciled to the corresponding GAAP measures in the Supplemental Disclosure section of this release).

Wholesale Segment

During the second quarter 2018, CrossAmerica's wholesale segment generated $33.5 million in gross profit compared to $31.6 million in gross profit for the second quarter 2017, representing a 6% increase. The Partnership distributed, on a wholesale basis, 272.4 million gallons of motor fuel at an average wholesale gross profit of $0.066 per gallon, resulting in motor fuel gross profit of $17.9 million. For the three month period ended June 30, 2017, CrossAmerica distributed, on a wholesale basis, 266.5 million gallons of fuel at an average wholesale gross profit of $0.056 per gallon, resulting in motor fuel gross profit of $14.9 million. The 20% increase in motor fuel gross profit was primarily due to a 2% increase in volume driven primarily by the November 2017 Jet-Pep Assets acquisition. In addition, the Partnership realized an 18% higher margin per gallon primarily due to higher dealer-tank wagon (DTW) margins and increased payment discounts and incentives due to the increase in motor fuel prices as a result of the increase in crude oil prices.

The prices paid by the Partnership to its motor fuel suppliers for wholesale motor fuel (which affects the cost of sales) are highly correlated to the price of crude oil. The average daily spot price of West Texas Intermediate crude oil increased approximately 42% to $68.07 per barrel during the second quarter 2018 as compared to $48.10 per barrel during the same period in 2017. 

CrossAmerica's gross profit from rent and other for the wholesale segment, which primarily consists of rental income, was $15.5 million for the second quarter 2018 compared to $16.7 million for the second quarter 2017, representing a decrease of 7%. This was primarily as a result of a reduction in rental income from DMS at the Partnership's sites in Florida and as a result of the September 2017 divestiture of 29 sites.

Operating expenses decreased $0.7 million primarily as a result of lower real estate taxes, maintenance and environmental costs.

Adjusted EBITDA for the wholesale segment was $30.2 million for the second quarter 2018 compared to $27.7 million for the same period in 2017. As discussed above, the year-over-year increase was primarily driven by an increase in motor fuel gross profit and a decline in operating expenses, which was offset slightly by a decrease in rent and other (see Supplemental Disclosure Regarding Non-GAAP Financial Information below).

Retail Segment

For the second quarter 2018, the Partnership sold 54.1 million gallons of motor fuel at an average retail motor fuel gross profit of $0.047 per gallon, net of commissions and credit card fees, resulting in motor fuel gross profit of $2.5 million. For the same period in 2017, CrossAmerica sold 40.6 million gallons in its retail segment at an average gross profit of $0.051 per gallon, net of commissions and credit card fees, resulting in motor fuel gross profit of $2.1 million. The 22% increase in motor fuel gross profit is attributable due to an increase in the average number of retail sites during the second quarter 2018 due to the acquisition of the Jet-Pep sites. The Partnership realized a slightly lower margin per gallon after incorporating a large number of commission agent sites in 2018 as compared to 2017, which have lower margins than the rest of the Retail business. 

During the quarter, the Partnership generated $6.4 million in gross profit from merchandise and services versus $6.8 million for the same period in 2017. Gross profit from rent and other for the retail segment was $1.6 million for the second quarter 2018 compared to $1.2 million for the same period in 2017, reflecting an increase of 37%. Adjusted EBITDA for the retail segment was $1.9 million for the second quarter 2018 compared to $1.5 million for the second quarter 2017. 

The increase in gross profit and Adjusted EBITDA were primarily due to an increase in motor fuel and rent and other gross profit, partially offset by a decrease in merchandise and service gross profit (see Supplemental Disclosure Regarding Non-GAAP Financial Information below).

Distributable Cash Flow and Distribution Coverage Ratio

Distributable Cash Flow was $20.0 million for the three month period ended June 30, 2018, compared to $21.2 million for the same period in 2017. The decrease in Distributable Cash Flow was due primarily to a decrease in equity-funded omnibus expenses and an increase in cash interest expense from additional borrowings to fund the Partnership's recent acquisitions and an increase in the average rate on the Partnership's credit facility borrowings, partially offset by incremental EBITDA generated by the Partnership's Jet-Pep sites and synergies in general and administrative expenses. The Distribution Coverage Ratio was 1.11 times for the three months ended June 30, 2018 (see Supplemental Disclosure Regarding Non-GAAP Financial Information below).

Liquidity and Capital Resources

As part of Circle K's acquisition of Holiday, the FTC issued a decree in which nine sites were required to be divested to FTC approved third-party buyers. Since this is a forced divestiture of assets for the Partnership, Circle K has agreed to compensate CrossAmerica for an amount to be determined representing the difference between the value for the Upper Midwest sites and the proceeds of the sale to FTC approved third-party buyers. CrossAmerica anticipates Circle K's payment to the Partnership will be made once the FTC has approved the proposed third-party buyers. This payment will be accounted for as a transaction between entities under common control and thus recorded as a contribution to partners' capital. The Partnership currently anticipates FTC approval and the closing of the divestitures as well as the resulting payment by Circle K to occur in 2018.
   
As of August 2, 2018, after taking into consideration debt covenant constraints, approximately $83.9 million was available for future borrowings under the Partnership's revolving credit facility. In connection with future acquisitions, the revolving credit facility requires, among other things, that CrossAmerica have, after giving effect to such acquisition, at least, in the aggregate, $20 million of borrowing availability under the revolving credit facility and unrestricted cash on the balance sheet on the date of such acquisition.

Distributions

On July 13, 2018, 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 of 2018. As previously announced, the distribution will be paid on August 13, 2018 to all unitholders of record as of August 6, 2018. The amount and timing of any future distributions is subject to the discretion of the Board (see Supplemental Disclosure Regarding Non-GAAP Financial Information below).

Conference Call

The Partnership will host a conference call on August 7, 2018 at 9:00 a.m. Eastern Time to discuss second quarter 2018 earnings results. The conference call numbers are 877-615-4335 or 847-944-7271 and the passcode for both is 9222849#. 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 http://www.crossamericapartners.com/en-us/investors/eventsandpresentations.  After the live conference call, a replay will be available for a period of thirty days. The replay numbers are 888-843-7419 or 630-652-3042 and the passcode for both is 9222849#. An archive of the webcast will be available on the investor section of the CrossAmerica website at www.crossamericapartners.com/en-us/investors/eventsandpresentations within 24 hours after the call for a period of sixty days.
CROSSAMERICA PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of Dollars, Except Unit and Per Unit Amounts)
(Unaudited)

    Three Months Ended June 30,     Six Months Ended June 30,  
    2018     2017     2018     2017  
Operating revenues(a)   $ 673,295     $ 528,789     $ 1,227,865     $ 998,075  
Costs of sales(b)     629,323       487,167       1,143,942       919,007  
Gross profit     43,972       41,622       83,923       79,068  
                                 
Income from CST Fuel Supply equity interests     3,740       3,830       7,545       7,433  
Operating expenses:                                
Operating expenses     15,691       16,222       32,033       31,482  
General and administrative expenses     4,810       11,920       9,530       17,737  
Depreciation, amortization and accretion expense     21,932       14,278       37,432       28,626  
Total operating expenses     42,433       42,420       78,995       77,845  
Loss on dispositions and lease terminations, net     (6,847 )     (314 )     (6,617 )     (358 )
Operating (loss) income     (1,568 )     2,718       5,856       8,298  
Other income (expense), net     89       127       183       245  
Interest expense     (8,157 )     (6,795 )     (16,209 )     (13,497 )
Loss before income taxes     (9,636 )     (3,950 )     (10,170 )     (4,954 )
Income tax (benefit) expense     (2,698 )     49       (2,425 )     (2,652 )
Net loss     (6,938 )     (3,999 )     (7,745 )     (2,302 )
Less: net loss attributable to noncontrolling interests     (3 )     (6 )     (5 )     (5 )
Net loss attributable to limited partners     (6,935 )     (3,993 )     (7,740 )     (2,297 )
IDR distributions     (133 )     (1,055 )     (1,313 )     (2,047 )
Net loss available to limited partners   $ (7,068 )   $ (5,048 )   $ (9,053 )   $ (4,344 )
                                 
Basic and diluted earnings per limited partner unit   $ (0.21 )   $ (0.15 )   $ (0.26 )   $ (0.13 )
                                 
Weighted-average limited partner units:                                
Basic common units     34,336,386       33,798,905       34,247,232       33,694,116  
Diluted common units(c)     34,346,097       33,806,925       34,257,559       33,717,612  
                                 
Distribution paid per common unit   $ 0.5250     $ 0.6175     $ 1.1525     $ 1.2300  
Distribution declared (with respect to each respective
  period) per common unit
  $ 0.5250     $ 0.6225     $ 1.0500     $ 1.2400  
Supplemental information:                                
(a) Includes excise taxes of:   $ 25,450     $ 20,094     $ 49,808     $ 38,647  
(a) Includes revenues from fuel sales to and rental
  income from related parties of:
    124,550       104,759       228,071       198,976  
(a) Includes rental income of:     21,461       22,005       43,182       43,446  
(b) Includes rental expense of:     4,980       4,926       9,795       9,717  
(c) Diluted common units were not used in the calculation of diluted earnings per common unit for the three and six
  months ended June 30, 2018 and 2017 because to do so would have been antidilutive.
 

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,  
    2018     2017     2018     2017  
Gross profit:                                
Motor fuel-third party   $ 9,491     $ 9,037     $ 17,124     $ 16,902  
Motor fuel-intersegment and related party     8,447       5,854       15,114       11,335  
Motor fuel gross profit     17,938       14,891       32,238       28,237  
Rent and other     15,537       16,696       31,916       32,666  
Total gross profit     33,475       31,587       64,154       60,903  
Income from CST Fuel Supply equity interests(a)     3,740       3,830       7,545       7,433  
Operating expenses     (7,026 )     (7,739 )     (15,346 )     (15,006 )
Adjusted EBITDA(b)   $ 30,189     $ 27,678     $ 56,353     $ 53,330  
Motor fuel distribution sites (end of period):(c)                                
Motor fuel-third party                                
Independent dealers(d)     373       390       373       390  
Lessee dealers(e)     452       434       452       434  
Total motor fuel distribution-third party sites     825       824       825       824  
Motor fuel-intersegment and related party                                
DMS (related party)(f)     130       151       130       151  
Circle K (related party)     43       43       43       43  
Commission agents (Retail segment)(g)     176       82       176       82  
Company operated retail sites (Retail segment)     71       71       71       71  
Total motor fuel distribution-intersegment
  and related party sites
    420       347       420       347  
Motor fuel distribution sites (average during the
  period):
                               
Motor fuel-third party distribution     830       822       827       822  
Motor fuel-intersegment and related party
  distribution
    421       357       428       360  
Total motor fuel distribution sites     1,251       1,179       1,255       1,182  
Volume of gallons distributed (in thousands)                                
Third party     169,637       169,914       318,896       321,594  
Intersegment and related party     102,763       96,597       203,012       183,337  
Total volume of gallons distributed     272,400       266,511       521,908       504,931  
                                 
Wholesale margin per gallon   $ 0.066     $ 0.056     $ 0.062     $ 0.056  

(a)      Represents income from the Partnership's equity interest in CST Fuel Supply.
(b)      Please see the reconciliation of the segment's Adjusted EBITDA to consolidated net income under the heading "Supplemental Disclosure Regarding Non-GAAP Financial Measures."
(c)      In addition, as of June 30, 2018 and 2017, respectively, CrossAmerica distributed motor fuel to 13 and 14 sub-wholesalers who distributed to additional sites.
(d)      The decrease in the independent dealer site count was primarily attributable to the termination or non-renewal of fuel supply contracts, a significant number of which were low margin.
(e)      The increase in the lessee dealer site count was primarily attributable to converting sites operated by DMS and commission agents to lessee dealers.
(f)      The decrease in the DMS site count was primarily attributable to converting DMS sites to lessee dealer sites.
(g)      The increase in the commission agent site count was primarily due to the 101 commission sites acquired in the Jet-Pep Assets acquisition, partially offset by the conversion of commission sites to lessee dealer sites.

Retail

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

    Three Months Ended June 30,     Six Months Ended June 30,  
    2018     2017     2018     2017  
Gross profit:                                
Motor fuel   $ 2,541     $ 2,076     $ 4,697     $ 3,239  
Merchandise and services     6,434       6,789       12,176       12,550  
Rent and other     1,588       1,156       3,061       2,370  
Total gross profit     10,563       10,021       19,934       18,159  
Operating expenses     (8,665 )     (8,483 )     (16,687 )     (16,476 )
Adjusted EBITDA(a)   $ 1,898     $ 1,538     $ 3,247     $ 1,683  
                                 
Retail sites (end of period):                                
Commission agents(b)     176       82       176       82  
Company operated retail sites     71       72       71       72  
Total system sites at the end of the period     247       154       247       154  
                                 
Total system operating statistics:                                
Average retail fuel sites during the period     248       163       249       166  
Motor fuel sales (gallons per site per day)     2,402       2,734       2,349       2,573  
Motor fuel gross profit per gallon, net of credit
  card fees and commissions
  $ 0.047     $ 0.051     $ 0.044     $ 0.042  
                                 
Commission agents statistics:                                
Average retail fuel sites during the period     177       91       178       94  
Motor fuel gross profit per gallon, net of credit
  card fees and commissions
  $ 0.017     $ 0.010     $ 0.015     $ 0.011  
                                 
Company operated retail site statistics:                                
Average retail fuel sites during the period     71       72       71       72  
Motor fuel gross profit per gallon, net of credit
  card fees
  $ 0.109     $ 0.097     $ 0.105     $ 0.078  
Merchandise and services gross profit percentage,
  net of credit card fees
    24.6 %     24.5 %     25.0 %     24.3 %

(a)      Please see the reconciliation of the segment's Adjusted EBITDA to consolidated net income under the heading "Supplemental Disclosure Regarding Non-GAAP Financial Measures" below.
(b)      The increase in the commission agent site count was primarily driven by the 101 sites acquired in the November 2017 Jet-Pep Assets acquisition, partially offset by the conversion of commission sites in the Retail Segment to lessee dealer sites in the Wholesale Segment.

Supplemental Disclosure Regarding Non-GAAP Financial Measures

CrossAmerica uses non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net income available to the Partnership before deducting interest expense, income taxes, depreciation, amortization and accretion. Adjusted EBITDA represents EBITDA as further adjusted to exclude equity funded expenses related to incentive compensation and the Amended Omnibus Agreement, gains or losses on dispositions and lease terminations, certain acquisition related costs, such as legal and other professional fees and severance expenses associated with recently acquired companies, and certain other 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. Distribution Coverage Ratio is computed by dividing Distributable Cash Flow by the weighted average diluted common units and then dividing that result by the distributions paid per limited partner unit.

EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are used as supplemental financial measures by management and by external users of the CrossAmerica financial statements, such as investors and lenders. EBITDA and Adjusted EBITDA are used to assess the 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 CrossAmerica 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 the Partnership'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 the Partnership's unit-holders.

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, the Partnership'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,  
    2018     2017     2018     2017  
Net loss available to limited partners   $ (7,068 )   $ (5,048 )   $ (9,053 )   $ (4,344 )
Interest expense     8,157       6,795       16,209       13,497  
Income tax (benefit) expense     (2,698 )     49       (2,425 )     (2,652 )
Depreciation, amortization and accretion     21,932       14,278       37,432       28,626  
EBITDA     20,323       16,074       42,163       35,127  
Equity funded expenses related to incentive
  compensation and the Amended Omnibus
  Agreement (a)
    130       4,144       3,473       8,310  
Loss on dispositions and lease
  terminations, net (b)
    6,847       314       6,617       358  
Acquisition-related costs (c)     918       7,236       1,974       7,709  
Adjusted EBITDA     28,218       27,768       54,227       51,504  
Cash interest expense     (7,664 )     (6,488 )     (15,288 )     (12,645 )
Sustaining capital expenditures (d)     (637 )     (358 )     (1,427 )     (722 )
Current income tax benefit (expense)     38       239       (886 )     (120 )
Distributable Cash Flow   $ 19,955     $ 21,161     $ 36,626     $ 38,017  
Weighted average diluted common units     34,346       33,807       34,258       33,718  
Distributions paid per limited partner unit (e)   $ 0.5250     $ 0.6175     $ 1.1525     $ 1.2300  
Distribution Coverage Ratio (f)   1.11x     1.01x     0.93x     0.92x  

(a)      As approved by the independent conflicts committee of the Board, the Partnership, CST and Circle K mutually agreed to settle certain amounts due under the terms of the Amended Omnibus Agreement in limited partner units of the Partnership.
(b)      In June 2018, the Partnership executed master fuel supply and master lease agreements with a third party multi-site operator of retail motor fuel stations, to which CrossAmerica will transition 43 sites in Florida from DMS in the third and fourth quarters of 2018. The master fuel supply and master lease agreements have an initial 10-year term with four 5-year renewal options. During the second quarter of 2018, in connection with this transition, CrossAmerica accrued a $3.8 million contract termination payment expected to be paid in cash to DMS during the third quarter of 2018. Additionally, the Partnership recorded a $2.2 million charge to write off deferred rent income related to the recapture of these sites from the master lease agreement with DMS.
(c)      Relates to certain acquisition related costs, such as legal and other professional fees, severance expenses and purchase accounting adjustments associated with recently acquired businesses.
(d)      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.
(e)      On July 13, 2018, the Board approved a quarterly distribution of $0.5250 per unit attributable to the second quarter of 2018. The distribution will be paid on August 13, 2018 to all unitholders of record on August 6, 2018.
(f)       The distribution coverage ratio is computed by dividing Distributable Cash Flow by the weighted average diluted common units and then dividing that result by the distributions paid per limited partner unit.

The following table reconciles the segment Adjusted EBITDA to Consolidated Adjusted EBITDA presented in the table above (in thousands):

    Three Months Ended June 30,     Six Months Ended June 30,  
    2018     2017     2018     2017  
Adjusted EBITDA - Wholesale segment   $ 30,189     $ 27,678     $ 56,353     $ 53,330  
Adjusted EBITDA - Retail segment     1,898       1,538       3,247       1,683  
Adjusted EBITDA - Total segment   $ 32,087     $ 29,216     $ 59,600     $ 55,013  
Reconciling items:                                
Elimination of intersegment profit in ending
  inventory balance
    (66 )     14       (165 )     6  
General and administrative expenses     (4,810 )     (11,920 )     (9,530 )     (17,737 )
Other income (expense), net     89       127       183       245  
Equity funded expenses related to incentive
  compensation and the Amended Omnibus
  Agreement
    130       4,144       3,473       8,310  
Acquisition-related costs     918       7,236       1,974       7,709  
Net loss attributable to noncontrolling
  interests
    3       6       5       5  
IDR distributions     (133 )     (1,055 )     (1,313 )     (2,047 )
Consolidated Adjusted EBITDA   $ 28,218     $ 27,768     $ 54,227     $ 51,504  

About CrossAmerica Partners LP

CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is a wholly owned subsidiary of Alimentation Couche-Tard Inc. 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 1,300 locations and owns or leases approximately 900 sites. With a geographic footprint covering 32 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, 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, Director - Investor Relations, 210-692-2160

Safe Harbor Statement

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 the 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.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: CrossAmerica Partners LP via Globenewswire


Source: Thomson Reuters ONE (August 6, 2018 - 4:15 PM EDT)

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