CrossAmerica Partners LP Reports Fourth Quarter and Full Year 2024 Results

Allentown, PA, Feb. 26, 2025 (GLOBE NEWSWIRE) -- CrossAmerica Partners LP Reports Fourth Quarter and Full Year 2024 Results Reported Fourth Quarter 2024 Net Income of $16.9 million, Adjusted EBITDA of $35.5 million and Distributable Cash Flow of $21.1 million compared to Fourth Quarter 2023 Net Income of $16.7 million, Adjusted EBITDA of $47.6 million and Distributable Cash Flow of $35.8 millionGenerated Full Year 2024 Net Income of $22.5 million, Adjusted EBITDA of $145.5 million and Distributable Cash Flow of $86.0 million compared to Full Year 2023 Net Income of $42.6 million, Adjusted EBITDA of $165.8 million and Distributable Cash Flow of $116.7 millionReported Fourth Quarter 2024 Gross Profit for the Retail Segment of $75.1 million compared to $69.0 million of Gross Profit for the Fourth Quarter 2023 and Fourth Quarter 2024 Gross Profit for the Wholesale Segment of $25.9 million compared to $33.0 million of Gross Profit for the Fourth Quarter 2023Generated Full Year 2024 Gross Profit for the Retail Segment of $289.7 million compared to $253.5 million of Gross Profit for the Full Year 2023 and Full Year 2024 Gross Profit for the Wholesale Segment of $108.6 million compared to $128.8 million of Gross Profit for the Full Year 2023Leverage, as defined in the CAPL Credit Facility, was 4.36 times as of December 31. 2024, compared to 4.21 times as of December 31, 2023The Distribution Coverage Ratio was 1.06 times for the Fourth Quarter 2024 compared to 1.80 times for the Fourth Quarter 2023 and for the Full Year 2024 was 1.08 times compared to 1.46 times for the comparable period of 2023 Allentown, PA February 26, 2025 – 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 fourth quarter and full year ended December 31, 2024. "We delivered a solid fourth quarter, with growth in our same-store retail gallons and sales, though our financial performance did not match the record levels of the prior year," said Charles Nifong, President & CEO of CrossAmerica. "Throughout the year, we made significant progress on our strategic goal of converting sites to our retail class of trade, while also successfully divesting select locations to strengthen our long-term financial and competitive position. While our full-year results were impacted by a challenging first quarter and inflationary pressures on our core retail customers, we remain confident in the strength of our business, the execution of our strategy, and the foundation we have built for future growth." Fourth Quarter and Full Year Results Consolidated Results Key Operating MetricsQ4 2024Q4 2023 FY2024FY2023Net Income$16.9M$16.7M $22.5M$42.6MOperating Expenses$59.4M$48.7M $228.0M$194.7MAdjusted EBITDA$35.5M$47.6M $145.5M$165.8MDistributable Cash Flow$21.1M$35.8M $86.0M$116.7MDistribution Coverage Ratio1.06x1.80x 1.08x1.46x CrossAmerica reported declines in Adjusted EBITDA, Distributable Cash Flow and its Distribution Coverage Ratio for the fourth quarter 2024 compared to the historically strong results of the fourth quarter 2023. The decline was primarily driven by a decrease in motor fuel margin per gallon in the both the retail and wholesale segments and an increase in operating expenses due to the conversion of certain lessee dealer sites to company operated and commission agent sites. This was partially offset by an increase in merchandise gross profit in the retail segment. For the full year 2024, CrossAmerica reported declines in Net Income, Adjusted EBITDA, Distributable Cash Flow and its Distribution Coverage Ratio when compared to the full year 2023 primarily due to an increase in operating expenses in the retail segment due to the conversion of certain lessee dealer sites to company operated and commission agent sites. This was partially offset by an increase in motor fuel and merchandise gross profit in the retail segment. The year-over-year decline in Net Income, Distributable Cash Flow and Distribution Coverage was primarily driven by the decline in Adjusted EBITDA noted above in addition to an $8.6 million increase in interest expense due to the termination of certain favorable interest rate swaps at the end of the first quarter 2024. Retail Segment Key Operating MetricsQ4 2024Q4 2023 FY2024FY2023Retail segment gross profit$75.1M$69.0M $289.7M$253.5M Retail segment motor fuel gallons distributed141.4M124.5M 554.5M506.5MSame store motor fuel gallons distributed119.9M117.5M 449.3M453.8MRetail segment motor fuel gross profit$39.8M$40.0M $150.9M$138.7MRetail segment margin per gallon, before deducting credit card fees and commissions$0.376 $0.415 $0.368 $0.369 Same store merchandise sales excluding cigarettes*$53.4M$52.4M $192.4M$194.2MMerchandise gross profit*$28.1M$22.1M $109.9M$89.8MMerchandise gross profit percentage* 28.4% 28.2% 28.2% 28.4% Operating Expenses$52.2M$39.7M $196.2M$156.8MRetail Sites (end of period) 594 495 594 495 *Includes only company operated retail sites For the fourth quarter 2024, the retail segment generated a 9% increase in gross profit compared to the fourth quarter 2023. The retail segment average site count was approximately 22% higher during the fourth quarter 2024 compared to the fourth quarter 2023, primarily due to an increase in the company operated site count due to the conversion of certain lessee dealer and commission agent sites to company operated sites. The segment site count increase was the primary driver in a 27% increase in merchandise gross profit and a 14% increase in motor fuel gallons distributed. These increases were offset by a 9% decrease in fuel margin per gallon and an increase in operating expenses, with the latter due to the increased segment site count during the quarter compared to the prior year. Same store retail segment fuel volume for the fourth quarter 2024 increased 2% from 117.5 million gallons during the fourth quarter 2023 to 119.9 million gallons. Same store merchandise sales excluding cigarettes increased 2% for the fourth quarter 2024 when compared to the fourth quarter 2023. Merchandise gross profit percentage increased from 28.2% for the fourth quarter 2023 to 28.4% for the fourth quarter 2024. For the full year 2024, CrossAmerica's retail segment generated a 14% increase in gross profit when compared to the full year 2023. The increase was primarily due to an increase in merchandise (+22%) and other revenue (+23%). Operating expenses increased $39.5 million or 25% for the full year 2024 primarily due to a 25% increase in the average company operated store count. The retail segment sold 554.5 million of retail fuel gallons, which was an increase of 9% when compared to the full year 2023. The increase was primarily driven by the site count increase stemming from the conversion of certain lessee dealer sites to company operated and commission sites. The average fuel margin per gallon for the retail segment was relatively flat during the full year 2024 compared to the full year 2023, which combined with the increase in retail fuel gallons resulted in a 9% increase in motor fuel gross profit for the full year 2024. Same store retail segment fuel volume for the full year 2024 was 449.3 million gallons, a slight decrease from the 453.8 million same store gallons for the full year 2023. For the full year 2024, CrossAmerica’s merchandise gross profit and other revenue increased $23.8 million or 23% when compared to the full year 2023. The full year increase was primarily driven by an increase in the company operated site count due to the conversion of certain lessee dealer and commission agent sites to company operated sites, in addition to an increase in sales and margin percentage in CrossAmerica's base business. Same store merchandise sales excluding cigarettes decreased 1% for the full year 2024 when compared to the full year 2023. For the twelve months ended December 31, 2024, the merchandise gross profit percentage decreased to 28.2% from 28.4% for the full year 2023. Wholesale Segment Key Operating MetricsQ4 2024Q4 2023 FY2024FY2023Wholesale segment gross profit$25.9M$33.0M $108.6M$128.8MWholesale motor fuel gallons distributed180.5M205.3M 743.5M842.6MAverage wholesale gross margin per gallon$0.082$0.094 $0.085$0.086 During the fourth quarter 2024, CrossAmerica’s wholesale segment gross profit decreased 22% compared to the fourth 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. During the fourth quarter 2024, the total average site count in the wholesale segment during the fourth quarter 2024 declined 14% compared to the fourth quarter 2023, including a 24% decline in lessee dealer locations, primarily due to the conversion of sites to the retail class of trade. The motor fuel gross profit decline of 23% was driven by a 12% decrease in wholesale volume distributed and a 13% decline in margin per gallon, with predominately all 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. The decline in margin per gallon was primarily driven by the relative movements of crude oil prices in the two periods. For the full year 2024, the wholesale segment's gross profit declined 16% from $128.8 million in 2023 to $108.6 million for the full year 2024. Similar to the fourth quarter, 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. Total average segment site count declined 11% year-over-year, including a 24% decline in lessee dealer locations, primarily due to the previously mentioned conversion to the retail class of trade. The motor fuel gross profit decline of 13% was driven by a 12% decrease in wholesale volume distributed and a 1% decline in margin per gallon, with predominately all 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. The slight decline in margin per gallon was driven by the relative movements of crude oil prices during the period. Divestment Activity During the three months ended December 31, 2024, CrossAmerica sold eleven sites for $17.3 million in proceeds, resulting in a net gain of $11.6 million. For the twelve months ended December 31, 2024, CrossAmerica sold thirty properties for $36.3 million in proceeds, resulting in a net gain of $23.3 million. These sales are part of CrossAmerica's ongoing real estate rationalization and class of trade optimization efforts. Liquidity and Capital Resources As of December 31, 2024, CrossAmerica had $767.5 million outstanding under its CAPL Credit Facility. As of December 31, 2024, after taking into consideration debt covenant restrictions, approximately $68.9 million was available for future borrowings under the CAPL Credit Facility. Leverage, as defined in the CAPL Credit Facility, was 4.36 times as of December 31, 2024, compared to 4.21 times as of December 31, 2023. As of December 31, 2024, CrossAmerica was in compliance with its financial covenants under the credit facility. Distributions On January 22, 2025, 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 fourth quarter 2024. As previously announced, the distribution was paid on February 13, 2025, to all unitholders of record as of February 3, 2025. 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 February 27, 2025, at 9:00 a.m. Eastern Time to discuss the fourth quarter and full year 2024 earnings results. The conference call numbers are 800-717-1738 or 646-307-1865 and the passcode for both is 43042. 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 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 twelve months ended December 31, 2024, were adjusted to gross it up for the sales that would have been recorded had CrossAmerica not changed models. CROSSAMERICA PARTNERS LPCONSOLIDATED BALANCE SHEETS(Thousands of Dollars, except unit data) December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $3,381 $4,990 Accounts receivable, net of allowances of $757 and $709, respectively 31,603 31,185 Accounts receivable from related parties 634 437 Inventory 63,169 52,344 Assets held for sale 8,994 400 Current portion of interest rate swap contracts 2,958 9,321 Other current assets 8,091 9,845 Total current assets 118,830 108,522 Property and equipment, net 656,300 705,217 Right-of-use assets, net 136,430 148,317 Intangible assets, net 77,242 95,261 Goodwill 99,409 99,409 Deferred tax assets 1,001 759 Interest rate swap contracts, less current portion 5,133 687 Other assets 20,380 23,510 Total assets $1,114,725 $1,181,682 LIABILITIES AND EQUITY Current liabilities: Current portion of debt and finance lease obligations $3,266 $3,083 Current portion of operating lease obligations 35,065 34,787 Accounts payable 73,986 68,986 Accounts payable to related parties 7,729 10,180 Accrued expenses and other current liabilities 24,044 23,674 Motor fuel and sales taxes payable 18,756 20,386 Total current liabilities 162,846 161,096 Debt and finance lease obligations, less current portion 763,932 753,880 Operating lease obligations, less current portion 106,296 118,723 Deferred tax liabilities, net 7,424 12,919 Asset retirement obligations 48,251 47,844 Interest rate swap contracts, less current portion 311 3,535 Other long-term liabilities 50,448 52,934 Total liabilities 1,139,508 1,150,931 Commitments and contingencies (Notes 15 and 16) Preferred membership interests 28,993 27,744 Equity: Common units— 38,059,702 and 37,983,154 units issued andoutstanding at December 31, 2024 and 2023, respectively (61,371) (2,392)Accumulated other comprehensive income 7,595 5,399 Total (deficit) equity (53,776) 3,007 Total liabilities and equity $1,114,725 $1,181,682 CROSSAMERICA PARTNERS LPCONSOLIDATED STATEMENTS OF OPERATIONS(Thousands of Dollars, Except Unit and Per Unit Amounts) (Unaudited)Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Operating revenues (a) $944,222 $1,014,685 $4,098,288 $4,386,263 Cost of sales (b) 843,239 912,640 3,699,969 4,003,995 Gross profit 100,983 102,045 398,319 382,268 Operating expenses: Operating expenses (c) 59,367 48,716 227,986 194,746 General and administrative expenses 6,716 6,940 28,756 27,031 Depreciation, amortization and accretion expense 18,080 18,944 75,983 77,158 Total operating expenses 84,163 74,600 332,725 298,935 Gain (loss) on dispositions and lease terminations, net 11,512 (483) 4,966 4,737 Operating income 28,332 26,962 70,560 88,070 Other income, net 176 192 780 790 Interest expense (13,402) (10,489) (52,320) (43,743)Income before income taxes 15,106 16,665 19,020 45,117 Income tax (benefit) expense (1,755) (78) (3,433) 2,525 Net income 16,861 16,743 22,453 42,592 Accretion of preferred membership interests 650 643 2,561 2,488 Net income available to limited partners $16,211 $16,100 $19,892 $40,104 Earnings per common unit Basic $0.43 $0.42 $0.52 $1.06 Diluted $0.42 $0.42 $0.52 $1.05 Weighted-average common units: Basic 38,046,688 37,970,720 38,027,587 37,957,727 Diluted 38,192,104 38,154,734 38,172,434 38,119,461 Supplemental information: (a) includes excise taxes of: $82,583 $72,696 $321,798 $295,762 (a) includes rent income of: 17,225 20,351 71,184 82,331 (b) excludes depreciation, amortization and accretion (b) includes rent expense of: 5,030 5,447 20,651 22,338 (c) includes rent expense of: 4,468 3,794 17,440 15,460 CROSSAMERICA PARTNERS LPCONSOLIDATED STATEMENTS OF CASH FLOWS(Thousands of Dollars) For the Year Ended December 31, 2024 2023 2022 Cash flows from operating activities: Net income $22,453 $42,592 $63,696 Adjustments to reconcile net income to net cash provided byoperating activities: Depreciation, amortization and accretion expense 75,983 77,158 80,625 Amortization of deferred financing costs 1,937 3,287 2,788 Credit loss expense 157 40 232 Deferred income tax (benefit) expense (6,147) 1,572 (1,753)Equity-based employee and director compensation expense 1,508 3,031 2,294 Gain on dispositions and lease terminations, net (4,966) (4,737) (1,143)Changes in operating assets and liabilities, net of acquisitions (3,143) (5,860) 14,578 Net cash provided by operating activities 87,782 117,083 161,317 Cash flows from investing activities: Principal payments received on notes receivable 152 213 203 Proceeds from sale of assets 35,374 6,234 13,344 Capital expenditures (26,318) (34,628) (30,351)Lease terminations payments to Applegreen, including inventorypurchases (25,517) — — Cash paid in connection with acquisitions, net of cash acquired — — (29,594)Net cash used in investing activities (16,309) (28,181) (46,398) Cash flows from financing activities: Borrowings under revolving credit facilities 113,000 240,900 114,100 Repayments on revolving credit facilities (101,500) (91,037) (138,538)Borrowings under the Term Loan Facility — — 1,120 Repayments on the Term Loan Facility — (158,980) (24,600)Net proceeds from issuance of preferred membership interests — — 24,430 Payments of finance lease obligations (3,082) (2,890) (2,724)Payments of deferred financing costs (74) (7,106) (474)Distributions paid on distribution equivalent rights (260) (241) (202)Income tax distributions paid on preferred membership interests (1,312) (900) — Distributions paid on common units (79,854) (79,712) (79,625)Net cash used in financing activities (73,082) (99,966) (106,513)Net (decrease) increase in cash and cash equivalents (1,609) (11,064) 8,406 Cash and cash equivalents at beginning of period 4,990 16,054 7,648 Cash and cash equivalents at end of period $3,381 $4,990 $16,054 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 and per gallon amounts): Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Gross profit: Motor fuel $39,832 $40,007 $150,916 $138,729 Merchandise 28,124 22,065 109,910 89,847 Rent 2,442 2,312 9,411 9,120 Other revenue 4,689 4,622 19,467 15,771 Total gross profit 75,087 69,006 289,704 253,467 Operating expenses (52,246) (39,664) (196,232) (156,758)Operating income $22,841 $29,342 $93,472 $96,709 Retail sites (end of period): Company operated retail sites (a) 365 296 365 296 Commission agents (b) 229 199 229 199 Total retail segment sites 594 495 594 495 Total retail segment statistics: Volume of gallons sold 141,377 124,486 554,490 506,535 Same store total system gallons sold (c) 119,919 117,458 449,265 453,750 Average retail fuel sites 595 487 569 476 Margin per gallon, before deducting credit card fees andcommissions $0.376 $0.415 $0.368 $0.369 Company operated site statistics: Average retail fuel sites 368 295 354 283 Same store fuel volume (c) 83,802 80,662 305,889 304,277 Margin per gallon, before deducting credit card fees $0.401 $0.467 $0.394 $0.400 Same store merchandise sales (c) $76,680 $76,051 $277,914 $278,288 Same store merchandise sales excluding cigarettes (c) $53,366 $52,407 $192,448 $194,191 Merchandise gross profit percentage 28.4% 28.2% 28.2% 28.4% Commission site statistics: Average retail fuel sites 227 192 215 193 Margin per gallon, before deducting credit card fees andcommissions $0.318 $0.305 $0.309 $0.306 (a) The increase in the company operated site count from December 31, 2023 to December 31, 2024 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 from December 31, 2023 to December 31, 2024 was primarily attributable to the conversion of certain lessee dealer sites to commission agent sites, partially offset by the conversion of certain commission 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 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 twelve months ended December 31, 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 EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Gross profit: Motor fuel gross profit $14,780 $19,252 $62,892 $72,680 Rent gross profit 9,753 12,592 41,122 50,873 Other revenues 1,363 1,195 4,601 5,248 Total gross profit 25,896 33,039 108,615 128,801 Operating expenses (7,121) (9,052) (31,754) (37,988)Operating Income $18,775 $23,987 $76,861 $90,813 Motor fuel distribution sites (end of period): (a) Independent dealers (b) 607 632 607 632 Lessee dealers (c) 434 569 434 569 Total motor fuel distribution sites 1,041 1,201 1,041 1,201 Average motor fuel distribution sites 1,044 1,209 1,093 1,235 Volume of gallons distributed 180,453 205,296 743,535 842,636 Margin per gallon $0.082 $0.094 $0.085 $0.086 (a) In addition, CrossAmerica distributed motor fuel to sub-wholesalers who distributed to additional sites.(b) The decrease in the independent dealer site count from December 31, 2023 to December 31, 2024 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 site count from December 31, 2023 to December 31, 2024 was primarily attributable to the conversion of certain lessee dealer sites to company operated and commission agent sites, including through the Applegreen acquisition and the Partnership'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 on common units. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are used as supplemental financial measures by management and by external users of CrossAmerica's 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 EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Net income $16,861 $16,743 $22,453 $42,592 Interest expense 13,402 10,489 52,320 43,743 Income tax (benefit) expense (1,755) (78) (3,433) 2,525 Depreciation, amortization and accretion 18,080 18,944 75,983 77,158 EBITDA 46,588 46,098 147,323 166,018 Equity-based employee and director compensation expense 374 947 1,508 3,031 (Gain) loss on dispositions and lease terminations, net (a) (11,512) 483 (4,966) (4,737)Acquisition-related costs (b) 13 99 1,674 1,460 Adjusted EBITDA 35,463 47,627 145,539 165,772 Cash interest expense (12,918) (10,008) (50,384) (40,456)Sustaining capital expenditures (c) (2,125) (2,332) (8,287) (7,654)Current income tax benefit (expense) (d) 662 505 (864) (953)Distributable Cash Flow $21,082 $35,792 $86,004 $116,709 Distributions paid $19,975 $19,935 $79,854 $79,712 Distribution Coverage Ratio 1.06x 1.80x 1.08x 1.46x (a) During the twelve months ended December 31, 2024, CrossAmerica recorded $23.3 million in net gains in connection with the Partnership's ongoing real estate rationalization effort. CrossAmerica also recorded a $16.0 million loss on lease terminations with Applegreen, including a $1.5 million non-cash write-off of deferred rent income. In addition, CrossAmerica recorded $2.4 million of other net losses on lease terminations and asset disposals. During the fourth quarter of 2024, CrossAmerica recorded $11.6 million in net gains in connection with the Partnership's ongoing real estate rationalization effort. CrossAmerica also recorded $0.1 million of other net losses 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 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 $0.3 million and $1.9 million of current income tax incurred on sales of sites for the fourth quarter and full year 2024, respectively. 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 1,600 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, rpalmer@caplp.com 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.

CrossAmerica Partners LP Reports Fourth Quarter and Full Year 2024 Results

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