Fuel distributor and convenience-store operator CrossAmerica Partners LPon Wednesday reported a loss of $18.2 million in its first quarter.
During the quarter, CrossAmerica also reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $23.6 million for first-quarter 2024, a decline of $8.2 million from first-quarter 2023 adjusted EBITDA of $31.7 million.
“The first quarter was a difficult operating environment, with generally increasing fuel prices that resulted in lower margins along with industry wide lower overall demand for both fuel and merchandise,” said President and CEO of CrossAmerica Charles Nifong.
On the upside, the Allentown, Pennsylvania-based company reported gross profit for the retail segment was $54.4 million compared to $50.8 million of first-quarter 2023.
“Our merchandise gross profit increased 18% to $21.4 million,” Nifong said. The increase for first-quarter 2024 was primarily due to increased sales from the higher store count and improvement in the company’s store merchandise gross margin percentage.
The company also said it began conversions of Applegreen lessee dealer locations to company operated retail locations during first-quarter 2024, with all 59 locations converted to company operated locations early in second-quarter 2024.
- CrossAmerica is No. 27 on CSP’s 2024 Top 40 Update to the 2023 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2024 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
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. Formed in 2012, CrossAmerica Partners is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,700 locations and owns or leases approximately 1,100 sites.
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