CrossAmerica Partners LP has reported a “strong” second quarter and noted its financial results were “significantly improved from the first quarter, despite a continued overall soft fuel demand environment.”
The Allentown, Pennsylvania-based company reported its financial results for the second-quarter 2024 Thursday. The company said the retail segment generated a 16% increase in gross profit ($76.6 million) compared to $66.0 million in the second-quarter 2023.
“Our results reflect our continued successful execution of our strategy,” said Charles Nifong, president and CEO of CrossAmerica. “We realized strong results in our retail segment, with increases in overall gallons, sales and segment operating income and we converted an additional 43 sites to the retail segment during the quarter.”
The retail segment sold 143 million retail fuel gallons during second-quarter 2024, which was an increase of 9% when compared to second-quarter 2023.
CrossAmerica Partners had a net income of $12.4 million for second-quarter 2024 compared to net income of $14.5 million for second-quarter 2023.
The company delivered adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $42.6 million, up from second-quarter 2023 ($42.2 million), due primarily by an “increase in the retail segment’s motor fuel and merchandise gross profit, offset by an increase in operating expenses primarily related to the conversion of certain lessee dealer and commission agent sites to company operated sites,” CrossAmerica said in its report.
During the three months ended June 30, CrossAmerica sold 10 properties for $11.9 million in proceeds, resulting in a net gain of $6.5 million.
The company also said the 59-site transaction with Applegreen closed on a rolling basis by site beginning during first-quarter 2024 and ending in April 2024.
- CrossAmerica is No. 27 on CSP’s 2024 Top 202 ranking of U.S. c-store chains by store count. Applegreen is No. 32.
CrossAmerica Partners is a distributor of branded and unbranded petroleum for motor vehicles in the United States. It distributes fuel to approximately 1,700 locations and owns or leases approximately 1,100 sites.
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