Crossamerica Partners Lp · NYSE:CAPL
Crossamerica Partners Lp — May 2017 MLPA Conference
23 slides from Crossamerica Partners Lp's conference presentation, May 31, 2017
Slide 1: May 2017 MLPA Conference
May 2017 MLPA Conference Jeremy Bergeron, President, and Steven Stellato, Chief Accounting Officer
Slide 2: Safe Harbor Statement
Investor Update May 2017 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
Slide 3: CrossAmerica Business Overview
CrossAmerica Business Overview Jeremy Bergeron, President 3
Slide 4: CrossAmerica Partners LP Overview
Investor Update May 2017 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 over $80 million – Operates 75 retail si
Slide 5: 2016 and Recent Highlights
Investor Update May 2017 2016 and Recent Highlights • Acquisitions in 2016 – 31 stores acquired from S/S/G Corp (Franchised Holiday Stores), approx. 26 million annual fuel gallons – 55 lessee dealer and 25 independent dealer accounts acquired from State Oil, approx. 60 million annual gallons • Portf
Slide 6: History of Growth
Investor Update May 2017 2012 Dunmore Oil Acquisition (Pennsylvania) Express Lane Acquisition (Florida) 2013 Rocky Top Acquisition (Tennessee) Rogers Acquisition (Tennessee) 2014 2014 2015 2016 Manchester Acquisition (Virginia) Atlas Acquisition (Chicago) Landmark Industries Acquisition (Texas) Drop
Slide 7: Growth Drivers
Investor Update May 2017 Growth Drivers • Capital Discipline – Executed M&A strategy with two accretive acquisitions in 2016 – Leveraged real estate with sale-leaseback transaction – Unlocked additional capacity with credit facility enhancements – Sustaining CapEx of less than $1 million in 2016 • P
Slide 8: Overview of Business Segments
Investor Update May 2017 Overview of Business Segments Wholesale Fuels Distributor Convenience Store Lessor Convenience Store Operator • Purchase and sale of wholesale motor fuel – Distribute branded and unbranded fuel (83% of the motor fuel we distributed in 2016 was branded) – Distribute motor fue
Slide 9: Wholesale Segment
Investor Update May 2017 Wholesale Segment • Wholesale Fuel Supply – Averaged 5.2 cpg in 2016 on 1.04 billion gallons • Historically averaged 5-7 cpg margin • Fluctuates based on value of prompt-payment discounts and other factors, including dealer-tank-wagon margins – Supply Contracts • 83% of supp
Slide 10: Wholesale Segment – Fuel
Investor Update May 2017 Wholesale Segment – Fuel 10 Fuel Volume Distributed by Brand (2016, gallons in millions) 308 260 234 70 44 41 26 21 16 15 UNBRANDED Distributed 1.04 billion gallons of motor fuel in 2016 71% increase from IPO year of 2012 OTHER BRANDS
Slide 11: Wholesale Segment – Rent
Investor Update May 2017 Wholesale Segment – Rent • Rental Income (annuity stream) has become a sizable portion of cash flow contribution – We own nearly 60% of all sites from which we generate rental income – Gross Rental Income grew 25% from 2015 to 2016 • Own convenient fueling locations in areas
Slide 12: Retail Segment
Investor Update May 2017 Retail Segment • Own/Lease and Operate 75 Convenience Stores(1) – All located in Minnesota and Wisconsin – Operate under three store brands • FreedomValu, Holiday, or SuperAmerica – Merchandise and Services • In 2016, averaged sales of $3,790 pspd at 24.6% margin • Own/Lease
Slide 13: Transaction Overview
Investor Update May 2017 Transaction Overview • Couche-Tard subsidiary to acquire CST 2Q 2017 – Includes assets related to CrossAmerica – Circle K, a subsidiary of Couche-Tard • Organizational Relationship Upon Closing – Couche-Tard controls the general partner of CrossAmerica – Couche-Tard owns 20%
Slide 14: Strategic Benefit to CAPL
Investor Update May 2017 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 – Heig
Slide 15: CrossAmerica Financial Overview
CrossAmerica Financial Overview Steven Stellato, Chief Accounting Officer 15
Slide 16: Operating Results
Investor Update May 2017 Operating Results Operating Results (in thousands, except for per gallon and site count) 2016 2015 % Change WHOL ES AL E Motor Fuel Distribution Sites (period avg.) 1,128 1,064 6% Volume of Gallons Distributed 1,034,585 1,051,357 (2%) Wholesale Fuel Margin per Gallon $0.052
Slide 17: Financial Summary
Investor Update May 2017 $39,296 $44,063 $69,733 $81,628 $54,904 $61,424 $90,314 $103,634 $1.73 $2.08 $2.23 $2.40 $0 $20 ,000 $40 ,000 $60 ,000 $80 ,000 $10 0,000 $12 0,000 2013 2014 2015 2016 Distributable Cash Flow (in thousands) Adjusted EBITDA (in thousands) Distributions Paid (in dollars per un
Slide 18: Drivers of Cash Flow
Investor Update May 2017 Drivers of Cash Flow Segment Gross Profit(1) Category Gross Profit(1) (1) Presented before intersegment eliminations. In addition, Rent is combined with the Wholesale and Retail Segments 18 2016 73% 27% Wholesale Retail $113 million $43 million 35% 6% $9 million 40% 19% Whol
Slide 19: Portfolio Optimization
Investor Update May 2017 Portfolio Optimization • Continued focus on managing expenses and execution of our integration strategy – Divested of low-margin, high-expense commercial fuels business acquired with PMI acquisition • Divestiture was cash flow positive despite 80 million gallon reduction of
Slide 20: Executing with Measured Growth
Investor Update May 2017 Executing with Measured Growth • Declared distribution attributable to first quarter 2017 of $0.6175 per unit – 0.5 cent per unit increase over distributions attributable to fourth quarter 2016 – Increased annual per unit distribution by 6.1% for 2016 over 2015 • Ended 1Q17
Slide 21: Appendix
CROSSAMERICA Appendix PARTNERS LP Investor Update
Slide 22: Non-GAAP Financial Measures
Investor Update May 2017 Non-GAAP Financial Measures 22
Slide 23: Non-GAAP Reconciliation
Investor Update May 2017 Non-GAAP Reconciliation 23