Slide 1: 3Q 2016 Earnings Call
3Q 2016 Earnings Call November 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Statements contained in this presentation 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 fo
Slide 3: CrossAmerica Business Overview
CrossAmerica Business Overview Jeremy Bergeron, President 3
Slide 4: Partnership Overview
Partnership Overview • Leading motor fuel wholesale distributor, convenience store lessor and c-store operator – Distributes annually over 1 billion gallons – Annual gross rental income over $85 million – Operates 78 c-stores(1) – 17.5% equity interest in CST Brands’ wholesale fuels business, approx
Slide 5: Continuing Accretive Growth
Continuing Accretive Growth 5 52 Lessee Dealers, 25 Indep. Dealers, 3 Company Ops* $41.8 Million Purchase 60 Million Gallons Chicago Market Marathon, Citgo, Phillips 66, Mobil, BP, Shell Sep 27, 2016 close date Asset Purchase Rationale • 56 valuable fee sites in Greater Chicago • Located in proximit
Slide 6: Strategy Execution
Strategy Execution 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 144 122 116 97 124 80 78 Company Operated Site Count (end of period) PMI Erickson OneStop Holiday Company Operated Wholesale Fuel Margin Retail Fuel Margin Retail Merchandise Margin − Operating Expenses − Income Taxes Lessee D
Slide 7: Operating Results
2010 2011 2012 2013 2014 2015 3Q16 516,200 530,500 605,162 637,845 906,200 1,051,357 1,025,523 Operating Results Operating Results (in thousands, except for per gallon and site count) Three Months ended Sep 30, 2016 2015 % Change Total Motor Fuel Sites (period avg.) 1,115 1,094 2% Total Volume of Ga
Slide 8: Transaction Overview
Transaction Overview 8 Operating Subsidiaries 55% Limited Partner Interest CrossAmerica Partners LP NYSE: CAPL Public Unitholders Joseph Topper & Affiliates CST Brands, Inc. Canadian Operations* US Operations CrossAmerica General Partner Alimentation Couche-Tard Inc. TSX: ATD.A ATD.B 25% Limited Par
Slide 9: Strategic Benefit to CAPL
Strategic Benefit to CAPL • Provides continuity with a sponsor whose management culture is aligned with CrossAmerica – Disciplined operator with best practices in acquisitions and integration – Strong and consistent financial performance throughout all economic cycles – Heightened focus on growing f
Slide 10: Combined Wholesale
Combined Wholesale 10 West Coast Region Couche-Tard CrossAmerica CODO 89 0 DODO 233 0 Arizona Region Couche-Tard CrossAmerica CODO 0 0 DODO 0 0 Southwest Region Couche-Tard CrossAmerica CODO 2 22 DODO 88 16 Gulf Region Couche-Tard CrossAmerica CODO 4 44 DODO 47 6 Southeast Region Couche-Tard CrossAm
Slide 11: CrossAmerica Financial Overview
CrossAmerica Financial Overview Steven Stellato, Chief Accounting Officer 11
Slide 12: 3Q 2016 Results
3Q 2016 Results 12 (1) See the (i) reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow (or “DCF”) to net income and (ii) the definitions of EBITDA, Adjusted EBITDA and DCF in the appendix of this presentation. KEY METRICS Three Months ended Sep 30, 2016 2015 % Change Gross Profit $
Slide 13: 3Q15 vs 3Q16 Adjusted EBITDA
3Q15 vs 3Q16 Adjusted EBITDA(1) (in thousands) $27,086 $30,963 $1,684 ($731) ($1,144) ($2,491) ($1,195) Acquisitions & Integration(2) Impact of Supplier Terms Discounts Q3 2015 Adjusted EBITDA(1) Q3 2016 Adjusted EBITDA(1) Net, Misc.(3) Retail Fuel CPG Margin (1) See the (i) reconciliation of EBITDA
Slide 14: Executing with Measured Growth
Executing with Measured Growth • Declared distribution attributable to third quarter of $0.6075 per unit – 0.5 cent per unit increase over distribution attributable to second quarter 2016 – Expect to increase per unit distribution by 5%-7% for 2016 over 2015 – Continue to target a long-term distribu
Slide 15: Appendix
Appendix 15
Slide 16: Non-GAAP Financial Measures
16 Non-GAAP Financial Measures
Slide 17: ‘The lowing able presets recoocilstions of EBITDA, Adjusted EBITDA, and Disibuble Cath Flow net
‘The lowing able presets recoocilstions of EBITDA, Adjusted EBITDA, and Disibuble Cath Flow net income, the ost <dzectly comparable US. GAAP fnneal measure fo cach fhe pends inated (a thousands, excep fox pr wat meu): Sustaining : Distributable Cash Flow S124 S50 S59 Tae S53 ‘Weigued average ted com