Crossamerica Partners Lp · NYSE:CAPL
Crossamerica Partners Lp — Q2 2017 Earnings Presentation
16 slides from Crossamerica Partners Lp's earnings presentation, Aug 8, 2017
Slide 1: Second Quarter 2017 Earnings Call
August 2017 Second Quarter 2017 Earnings Call Exhibit 99.3
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 forw
Slide 3: CrossAmerica Business Overview
CrossAmerica Business Overview Jeremy Bergeron, President & CEO
Slide 4: CrossAmerica Partners LP Overview
CrossAmerica Partners LP Overview Master limited partnership and leading wholesale fuels distributor, convenience store lessor, and c-store operator Distributes annually over 1 billion gallons of fuel Annual gross rental income of over $80 million Operates 72 retail sites 17.5% equity interest in CS
Slide 5: Second Quarter Operating Results
Second Quarter Operating Results OPERATING RESULTS (in thousands, except for per gallon and site count) Three Months ended June 30, 2017 2016 % Change Total Motor Fuel Distribution Sites (period avg.) 1,179 1,119 5% Total Volume of Gallons Distributed 266,511 265,910 0% Wholesale Fuel Margin per Gal
Slide 6: Drivers of Cash Flow
Drivers of Cash Flow Segment Gross Profit(1) Category Gross Profit(1) (1) Presented before intersegment eliminations. In addition, Rent is combined from the Wholesale and Retail Segments 2Q 2017 $32 million $10 million $18 million $7 million $15 million 2Q 2016 $29 million $11 million $16 million $8
Slide 7: Second Quarter 2017 Highlights
Second Quarter 2017 Highlights Adjusted EBITDA(1) Increased Adjusted EBITDA 2% from Second Quarter 2016 to Second Quarter 2017 Capital Strength Leverage, as defined under our credit facility, was 4.25X as of June 30, 2017 Sustained Distribution Growth Declared distribution attributable to second qua
Slide 8: Circle K Integration Strategy
Circle K Integration Strategy Strategy is to leverage the strengths of each organization by simplifying the two businesses – Retail @ Circle K and Wholesale @ CrossAmerica Step 1: Organizational Alignment Combine management of Circle K wholesale, National Wholesale Fuels “NWF”, with CrossAmerica to
Slide 9: Circle K Integration Strategy: Simplify Structure
Circle K Integration Strategy Step 2: Simplify Structure Provides clear understanding, and line-of-sight, with how EBITDA is earned in each organization and growth will occur Unwinds cash flow entanglement within Circle K Maximizes qualified income at CrossAmerica Will execute in a measured way to e
Slide 10: Acquisition of Jet-Pep Assets
Acquisition of Jet-Pep Assets Largely fee-based, commission operated – 92 fee sites Unbranded business provides supply flexibility and site enhancement opportunities Fills geographic gap in south Great initial transaction with ACT Circle K CrossAmerica Partners Sites to be acquired by: 97 Commission
Slide 11: CrossAmerica Financial Overview
CrossAmerica Financial Overview Evan Smith, Chief Financial Officer
Slide 12: Second Quarter Results Summary
Second Quarter Results Summary(1) (in millions, except for per unit amounts) KEY METRICS Three Months ended June 30, 2017 2016 % Change Gross Profit $41.6 $40.5 3% Adjusted EBITDA $27.8 $27.1 2% Distributable Cash Flow $21.2 $21.2 0% Weighted Avg. Diluted Units 33.8 33.3 2% Distribution Paid per LP
Slide 13: Executing with Measured Growth
Executing with Measured Growth Declared distribution attributable to second quarter of $0.6225 per unit 0.5 cent per unit increase over distributions attributable to first quarter 2017 13 consecutive quarters of distribution growth Ended 2Q17 with leverage ratio of 4.25x, as defined under our credit
Slide 14: Appendix
Appendix Second Quarter 2017 Earnings Call
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures We use non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net income available to us before deducting interest expense, income taxes and depreciation, amortization and
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income (loss) available to CrossAmerica limited partners $ (5,048 ) $ 2,806 $ (4,344 ) $ 3,814 Interest expense 6,795 5,704 13,497 10,769 Income tax expense (benefit) 49 338 (2,652 ) (457 ) Deprecia
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