Crossamerica Partners Lp · NYSE:CAPL
Crossamerica Partners Lp — EIC Investor Conference 2022
25 slides from Crossamerica Partners Lp's conference presentation, May 16, 2022
Slide 1: EIC Investor Conference May 16, 2022
EIC Investor Conference May 16, 2022 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements 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,” “anticipates,” “estimates,” “target” and other similar expre
Slide 3: CrossAmerica Overview - Investor Update May 2022
(CROSSAMERICA PARTNERS LP CrossAmerica Overview Investor Update May 2022
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 Distributed more than 1.3 billion gallons of fuel in 2021 Rental gross profit of $59 million in 2021 Operates over 250 convenience stores Employees mor
Slide 5: Wholesale Distribution – Approximately 1,750 Locations Across the U.S.
Wholesale Distribution – Approximately 1,750 Locations Across the U.S.
Slide 6: Company History
Company History Strong organizational history of acquisitions From 2012 IPO through 2019, completed 18 acquisitions for total consideration of almost $1 billion On November 19,2019, investment entities controlled by Founder and current Chairman, Joe Topper, purchased 100% of the interest in CrossAme
Slide 7: Overview of Business Segments
Overview of Business Segments Wholesale Fuels Distributor Convenience Store Lessor Convenience Store Operator Purchase and sale of wholesale motor fuel Distribute branded and unbranded motor fuel to approx. 1,750 sites located in 34 states Significant contracts with branded suppliers Provide fuel to
Slide 8: Wholesale Segment – Fuels Distribution
Wholesale Segment – Fuels Distribution Important Factors Wholesale Segment supplies third party operators and our own Retail Segment Fuel margin impacted by dealer-tank-wagon (“DTW” or variable) margins; price of fuel; prompt pay discounts (fuel prices) and other factors Volume impacted by continued
Slide 9: Wholesale Segment – Fuels Distribution: Volume by Brand
Wholesale Segment – Fuels Distribution Fuel Volume Purchased by Brand as of 12/31/21 Distributed 1.33 billion gallons of motor fuel for the full year of 2021 and 1.12 billion gallons for the full year 2020 VARIOUSOTHER BRANDS
Slide 10: Wholesale Segment - Rental Income
Wholesale Segment - Rental Income Important Factors *Property control at 1,156 sites drives value and flexibility for overall organization 694 owned sites and 462 leased sites Leasing of locations to third party operators provides relatively stable stream of income to the partnership Rental income g
Slide 11: Retail Segment
Retail Segment Own/Lease and Operate 255 Convenience Stores Located in: MA, NC, NY, OH, PA, RI, SC, TN, VA & WV Currently operate convenience store 7 brands Goal to consolidate under Joe’s Kwik Marts brands in the future All newly acquired assets from 7-Eleven branded as Joe’s Kwik Marts Currently s
Slide 12: Retail Segment Retail Fuel Margin and Merchandise
Retail Segment Retail Fuel Margin Wholesale Segment distributes to the Retail Segment on DTW (variable margin basis), capturing qualifying wholesale fuel supply income Merchandise Diversified product offering including packaged food and beverage; tobacco; grocery and personal care items; ATM; lotter
Slide 13: Acquisition Driving Material Growth: Adjusted EBITDA Trend
Acquisition Driving Material Growth Adjusted EBITDA Trend Acquisition of assets from 7-Eleven occurred over the course of Q3 2021 Beginning with Q3 2021, acquisition drives material increase in Adjusted EBITDA and FCF compared to prior years +20% + 51% + 55%
Slide 14: Growth and Performance
Growth and Performance Disciplined Growth Operational Performance Topper Group GP Purchase November 2019
Slide 15: Strengthened Financial Position
Strengthened Financial Position Annualized distribution of $2.10 per unit since Q2 2018 Commitment to a secure distribution Target coverage ratio of 1.2x+
Slide 16: Capital Structure
Capital Structure CAPL Credit Facility $750M Revolver Matures April 2024 JKM Credit Facility $185M Term Loan and $15M Revolver Matures July 2026 Secured by assets of CAPL subsidiary created for acquisition of 7-11 assets JKM Preferred Security $25M convertible preferred equity security issued March
Slide 17: Capital Resources
Capital Resources Real Estate Rationalization Focus on divestment of non-core properties Growth oriented capital expenditures Focus on site rebranding and upgrades Supported substantially by our major fuel supply partners CAPL and JKM Credit Facilities Continue to demonstrate financial flexibility t
Slide 18: Strong Sponsorship
Strong Sponsorship General partner controlled by entities affiliated with Joseph V. Topper, Jr. (“Topper Group”) Mr. Topper is the founder of CAPL and Chairman of the Board Topper Group controls ~38.5% of CAPL units Entities affiliated with John B. Reilly, III control 13.2% of CAPL units Topper Grou
Slide 19: Summary
Summary Continue to execute on strategic plan put in place after acquiring the GP in late 2019 Added retail portfolio and have grown it with recent acquisition of assets from 7-Eleven Leveraging scale in wholesale operations simplifying the business to enhance efficiencies Strong portfolio of owned
Slide 20: Appendix
‘> 2 (CROSSAMERICA PARTNERS LP Appendix Investor Update May 2022 20
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance At the core of our mission, CrossAmerica is a responsible, people-focused organization, committed to the well-being of our employees, customers and the environment. Environmental: Focus on environmental protection and regulations, employee training and timely and
Slide 22: Distribution Coverage Performance since GP Acquisition in November 2019
Distribution Coverage Performance since GP Acquisition in November 2019 In 2017 and 2018, the quarterly coverage ratios ranged between 0.78X and 1.19X with annual coverage ratios of 0.97X in 2017 and 1.03X in 2018, respectively
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures We use the 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 accretion (which includ
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 Dece
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 Marc