Crossamerica Partners Lp · NYSE:CAPL
Crossamerica Partners Lp — Q2 2015 Earnings Presentation
22 slides from Crossamerica Partners Lp's earnings presentation, Aug 7, 2015
Slide 1: Q2 2015 Earnings Call
Q2 2015 Earnings Call August 7, 2015
Slide 2: Safe Harbor Statements
Safe Harbor Statements Forward-Looking Statements Statements contained in this presentation that state the Company’s or management’s expectations or predictions of the future are forward-looking statements and are intended to be covered by the safe harbor provisions of the Securities Act of 1933, as
Slide 3: Overview & Store Initiatives
Overview & Store Initiatives Kim Lubel President, CEO and Chairman of the Board 3
Slide 4: 2Q15 Results Summary
2Q15 Results Summary (Amounts in millions except Earnings per Share, Distributable Cash Flow per LP Unit and Distribution Coverage) 4 Three Months Ended June 30, % Change Gross Profit $277 $280 (1%) EBITDA $80 $88 (9%) Earnings per Share $0.32 $0.43 (26%) Three Months Ended June 30, % Change Gross P
Slide 5: Growing our Food Program
Growing our Food Program • Implementing synergies from Nice N Easy to ensure great tasting food offerings across all day-parts – Program will be implemented in 5 NTI prototypes in the greater San Antonio area in 4Q15 – Modeled after Nice N Easy’s Made-to-Order and pizza programs (will continue to of
Slide 6: Food Offerings
Food Offerings 6
Slide 7: Expanding Grocery Offerings
Expanding Grocery Offerings • Enhances large store product mix • Provides a fill-in alternative to grocery and drug stores • Implementing in 50 stores across the Central Texas, San Antonio and Houston markets in 3Q15 7
Slide 8: CrossAmerica Partners
CrossAmerica Partners Joe Topper, CEO Jeremy Bergeron, President 8
Slide 9: CrossAmerica Wholesale Segment
CrossAmerica Wholesale Segment Three Months Ended June 30, % Change Total Volume of Gallons Distributed (in thousands) 277,126 222,850 24% Margin – Total System1 $0.053 $0.067 (21%) Wholesale Rental Income2 (in thousands) $10,920 $9,990 9% Wholesale Segment Adjusted EBITDA $18,448 $16,304 13% 2015 2
Slide 10: CrossAmerica Retail Segment
CrossAmerica Retail Segment 10 Three Months Ended June 30, % Change Total Volume of Gallons Distributed (in thousands) 57,307 32,238 78% Fuel Margin – Total System* $0.095 $0.052 83% Retail Segment Adjusted EBITDA $4,595 $4,652 (1%) Site Count (Average sites - period ending 06/30/2015) 206 119 73% 2
Slide 11: Continuous Growth
Continuous Growth 11 • One Stop Acquisition – 55 sites in West Virginia • 41 company operated retail sites • 4 commission agents • 9 wholesale dealer sites • 1 stand alone QSR – Rationale • Expand on existing presence in the West Virginia / Virginia market • Leverage existing relationship with Exxon
Slide 12: Financial Overview
Financial Overview Clay Killinger EVP and Chief Financial Officer 12
Slide 13: CST Key Metrics
CST Key Metrics Gross Profit (mm) Three Months Ended June 30, % Change Motor Fuel $59 $65 (9%) Merchandise $112 $103 9% Other $15 $14 7% Key Metrics Three Months Ended June 30, % Change Core Stores (EOP) 993 1,044 (5%) Motor Fuel Gallons Sold (PSPD) 5,246 4,987 5% Motor Fuel CPG (net of CC) $0.1256
Slide 14: Key Metrics - Canadian Retail
Key Metrics Three Months Ended June 30, % Change in USD % Change in CAD Total Retail Stores (EOP) 859 850 1% 1% Motor Fuel Gallons Sold (PSPD) 3,201 3,256 (2%) (2%) Motor Fuel CPG (net of CC) $0.2340 $0.2460 (5%) 8% Company Operated Stores (EOP) 292 279 5% 5% Merchandise Sales (PSPD) $2,355 $2,589 (
Slide 15: Solid Financial Position to Support Growth
15 Solid Financial Position to Support Growth CST Brands, Inc. June 30, 2015 Cash $343 Debt $1,013 Net Revolver Capacity $276 Note: Amounts in millions
Slide 16: CST Guidance
CST Guidance (in USD) Retail Segment Gallons (PSPD) 5,250 to 5,350 4,921 3,250 to 3,350 3,370 Merchandise Sales (PSPD) $4,100 to $4,200 $3,686 $2,350 to $2,450 $2,767 Merchandise Gross Margin (%) 30.0% to 31.0% 30.2% 27.0% to 28.0% 26.6% U.S. Canada Category Ranges (mm) Operating Expenses $179 to $1
Slide 17: Historical Fuel Margins
Historical Fuel Margins • Monthly data provided on the Investor Relations website • Enhances transparency of a key gross profit driver for CST • Updates for the first two months of each quarter will be posted approximately two weeks after month-end • Data for the last month of a quarter will post fo
Slide 18: CrossAmerica Key Metrics
CrossAmerica Key Metrics 18 CrossAmerica has guided to a target of 7-9% distribution per unit growth rate for 2015 and a long-term coverage target ≥ 1.1x Three months ended June 30, % Change 1Q15 Adjusted EBITDA $19.1 $17.1 12% $15.6 Distributable Cash Flow, $mm $14.3 $13.5 6% $10.1 Wholesale Gross
Slide 19: Solid Financial Position to Support Growth
19 Solid Financial Position to Support Growth CrossAmerica Partners LP Net Revolver Capacity, As of 6/30/15 $140 *Net Revolver Capacity, As of 07/01/15 $99 Coverage Ratio, Qtr. Ended 06/30/15 1.04x Note: Amounts in millions *Adjusted for close of Asset Drops and One Stop Acquisition
Slide 20: Completed Dropdown Transactions
Completed Dropdown Transactions Transaction #1 January 2015 5% interest in CST Fuel Supply $50.4 M in CrossAmerica units* $142.0 M in Cash + $119.5 M in CrossAmerica units* $261.5 M in Total Value Transaction #2 July 2015 12.5% interest in CST Fuel Supply Real Property of 29 NTI Stores & 20 *Unit va
Slide 21: Benefits of Recent Dropdowns
Benefits of Recent Dropdowns 21 Benefits to CST • Received $142 million of cash • This funds approximately 65% of our 2015 expected U.S. NTI CAPEX program • Realized “gain” of approximately $138 million (unrecognized for accounting purposes) • Ownership interest in CrossAmerica increases to 15.9% •
Slide 22: Q&A Session
Q&A Session
CrossAmerica Partners — Q2 2015 Earnings Presentation on 6ix