Fuel distributor and convenience-store operator CrossAmerica Partners LP reported a “historic” fourth quarter as merchandise gross profit and other revenue saw increases.
During the quarter, which ended Dec. 31, the company’s retail segment generated a 14% increase in gross profit compared to the fourth quarter 2022. The increase for fourth-quarter 2023 was primarily due to higher motor fuel and merchandise gross profit.
“We finished the year with the best fourth quarter in our history,” said Charles Nifong, president and CEO of CrossAmerica. “Our financial results for the fourth quarter, and year overall, reflect the ongoing success of our business strategy.”
During the quarter, CrossAmerica reported a jump in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $47.6 million and distributable cash flow of $35.8 million compared to fourth-quarter 2022 adjusted EBITDA of $44.3 million and distributable cash flow of $33.3 million.
“We continue to execute well across all of our business operations, which is reflected in our excellent financial results for the past year and our strong balance sheet at year end. The partnership is well positioned to continue this success into 2024 and beyond,” he said.
The retail segment sold 124.5 million of retail fuel gallons during fourth-quarter 2023, which was relatively flat when compared to fourth-quarter 2022.
CrossAmerica’s merchandise gross profit and other revenue increased 22% when compared to fourth-quarter 2022. This was primarily due to an increase in overall store sales due to higher retail prices, improved product margins and an increase in the company operated site count due to the conversion of certain lessee dealer and commission agent sites to company operated sites. Same-store merchandise sales excluding cigarettes increased 5% for first-quarter 2023 when compared to the previous year.
Merchandise gross profit percentage increased from 27.5% for fourth-quarter 2022 to 28.2% for fourth-quarter 2023, primarily due to improved merchandise margins in the categories of packaged beverages and deli.
- CrossAmerica Partners ranked No. 33 on CSP’s 2023 Top 202 list of the largest U.S. convenience-store chains by company-owned store count.
The Allentown, Pennsylvania-based company and its Lehigh Gas Wholesale Services Inc. subsidiary last month entered into an agreement to acquire 59 convenience stores from Applegreen for $16.9 million.
CrossAmerica is a leading wholesale distributor of motor fuels, convenience-store operator, and owner and lessee of real estate used in the retail distribution of motor fuels
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