Company Quick10K Filing
CrossAmerica Partners
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 -0 $-0
10-Q 2019-11-08 Quarter: 2019-09-30
10-Q 2019-08-06 Quarter: 2019-06-30
10-Q 2019-05-07 Quarter: 2019-03-31
10-K 2019-02-26 Annual: 2018-12-31
10-Q 2018-11-07 Quarter: 2018-09-30
10-Q 2018-08-07 Quarter: 2018-06-30
10-Q 2018-05-08 Quarter: 2018-03-31
10-K 2018-02-27 Annual: 2017-12-31
10-Q 2017-11-08 Quarter: 2017-09-30
10-Q 2017-08-08 Quarter: 2017-06-30
10-Q 2017-05-09 Quarter: 2017-03-31
10-K 2017-02-28 Annual: 2016-12-31
10-Q 2016-11-08 Quarter: 2016-09-30
10-Q 2016-08-05 Quarter: 2016-06-30
10-Q 2016-05-06 Quarter: 2016-03-31
10-K 2016-02-19 Annual: 2015-12-31
10-Q 2015-11-06 Quarter: 2015-09-30
10-Q 2015-08-07 Quarter: 2015-06-30
10-Q 2015-05-08 Quarter: 2015-03-31
10-K 2015-02-27 Annual: 2014-12-31
10-Q 2014-11-07 Quarter: 2014-09-30
10-Q 2014-08-11 Quarter: 2014-06-30
10-Q 2014-05-08 Quarter: 2014-03-31
10-K 2014-03-10 Annual: 2013-12-31
10-Q 2013-11-12 Quarter: 2013-09-30
10-Q 2013-08-09 Quarter: 2013-06-30
10-Q 2013-05-14 Quarter: 2013-03-31
10-K 2013-03-28 Annual: 2012-12-31
10-Q 2012-12-10 Quarter: 2012-09-30
8-K 2020-01-15 Enter Agreement, Sale of Shares, Regulation FD, Exhibits
8-K 2020-01-15 Enter Agreement, Exhibits
8-K 2019-12-06 Officers
8-K 2019-11-19 Enter Agreement, Leave Agreement, Off-BS Arrangement, Control, Officers, Exhibits
8-K 2019-11-07 Earnings, Exhibits
8-K 2019-10-29 Enter Agreement, Exhibits
8-K 2019-10-24 Regulation FD, Exhibits
8-K 2019-09-05 M&A, Regulation FD, Exhibits
8-K 2019-08-05 Earnings, Exhibits
8-K 2019-07-18 Regulation FD, Exhibits
8-K 2019-05-21 Enter Agreement, M&A, Regulation FD, Exhibits
8-K 2019-05-06 Earnings, Exhibits
8-K 2019-04-25 Regulation FD, Exhibits
8-K 2019-04-01 Enter Agreement, Leave Agreement, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2019-02-25 Earnings, Exhibits
8-K 2019-01-29 Regulation FD, Exhibits
8-K 2018-12-17 Enter Agreement, Regulation FD, Exhibits
8-K 2018-11-06 Earnings, Exhibits
8-K 2018-10-24 Regulation FD, Exhibits
8-K 2018-08-06 Earnings, Exhibits
8-K 2018-07-13 Regulation FD, Exhibits
8-K 2018-07-09 Officers
8-K 2018-05-07 Earnings, Regulation FD, Exhibits
8-K 2018-04-25 Enter Agreement, Exhibits
8-K 2018-02-26 Earnings, Exhibits
8-K 2018-02-23 Officers, Regulation FD, Exhibits
8-K 2018-01-24 Officers, Amend Bylaw, Regulation FD, Exhibits
CAPL 2019-09-30
Part I - Financial Information
Item 1. Financial Statements
Note 1.Description of Business and Other Disclosures
Note 2. Asset Exchange Transactions with Circle K
Note 3. Assets Held for Sale
Note 4. Inventories
Note 5. Property and Equipment
Note 6. Intangible Assets
Note 7. Goodwill
Note 8. Debt
Note 9. Operating Leases
Note 10. Related-Party Transactions
Note 11. Commitments and Contingencies
Note 12. Fair Value Measurements
Note 13. Equity-Based Compensation
Note 14. Income Taxes
Note 15. Net Income per Limited Partner Unit
Note 16. Segment Reporting
Note 17. Supplemental Cash Flow Information
Note 18. Separation Benefits
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-31.1 capl-ex311_7.htm
EX-31.2 capl-ex312_9.htm
EX-32.1 capl-ex321_8.htm
EX-32.2 capl-ex322_6.htm

CrossAmerica Partners Earnings 2019-09-30

CAPL 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
RRTS 337 843 622 1,524 0 -269 -173 514 0% -3.0 -32%
AE 142 302 152 1,840 0 3 18 10 0% 0.5 1%
SINO 11 21 5 40 6 -6 -5 8 14% -1.5 -31%
SUN 5,470 4,691 16,805 639 204 371 2,993 4% 8.1 4%
GEL 6,555 4,197 2,689 0 32 571 2,490 0% 4.4 0%
NGL 6,395 4,303 24,810 768 537 919 2,579 3% 2.8 8%
MMLP 701 738 910 320 -156 -84 594 35% -7.1 -22%
GLP 2,764 2,278 13,230 703 81 88 -10 5% -0.1 3%
SRLP 946 822 3,619 189 47 131 -6 5% -0.0 5%
CAPL 929 825 2,295 167 20 109 532 7% 4.9 2%

10-Q 1 capl-10q_20190930.htm 10-Q capl-10q_20190930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                         to                   

 

Commission File No. 001-35711

 

CROSSAMERICA PARTNERS LP

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

45-4165414

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

 

600 Hamilton Street, Suite 500

Allentown, PA

 

18101

(Zip Code)

(610) 625-8000

(Address of Principal Executive Offices)

 

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Units

CAPL

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer  

 

Smaller reporting company

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    Yes      No  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

 

As of November 4, 2019, the registrant had outstanding 34,459,936 common units.

 


 

TABLE OF CONTENTS

 

 

 

PAGE

 

 

 

Commonly Used Defined Terms

 

i

PART I - FINANCIAL INFORMATION

 

1

Item 1. Financial Statements

 

1

Consolidated Balance Sheets as of September 30, 2019 (unaudited) and December 31, 2018

 

1

Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2019 and 2018

 

2

Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2019 and 2018

 

3

Consolidated Statements of Equity and Comprehensive Income (unaudited) for the Three and Nine Months Ended September 30, 2019 and 2018

 

4

Condensed Notes to Consolidated Financial Statements

 

5

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

27

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

48

Item 4. Controls and Procedures

 

48

PART II - OTHER INFORMATION

 

49

Item 1. Legal Proceedings

 

49

Item 1A. Risk Factors

 

49

Item 6. Exhibits

 

49

SIGNATURE

 

50

 

 

 

 


 

COMMONLY USED DEFINED TERMS

 

The following is a list of certain acronyms and terms generally used in the industry and throughout this document:

 

 

CrossAmerica Partners LP and subsidiaries:

 

CrossAmerica Partners LP

 

CrossAmerica, the Partnership, we, us, our

 

 

 

LGW

 

Lehigh Gas Wholesale LLC

 

 

 

LGPR

 

LGP Realty Holdings LP

 

 

 

LGWS

 

Lehigh Gas Wholesale Services, Inc. and subsidiaries

 

 

 

CrossAmerica Partners LP related parties:

 

Circle K

 

Circle K Stores Inc., a Texas corporation, and a wholly owned subsidiary of Couche-Tard

 

 

 

Couche-Tard

 

Alimentation Couche-Tard Inc. (TSX: ATD.A ATD.B)

 

 

 

CST

 

CST Brands, LLC and subsidiaries, indirectly owned by Circle K.

 

 

 

CST Fuel Supply

 

CST Fuel Supply LP is the parent of CST Marketing and Supply, indirectly owned by Circle K. Since July 1, 2015, we have owned a 17.5% limited partner interest in CST Fuel Supply.

 

 

 

CST Marketing and Supply

 

CST Marketing and Supply, LLC, indirectly owned by Circle K. It is CST’s wholesale motor fuel supply business, which provides wholesale fuel distribution to the majority of CST’s legacy U.S. retail convenience stores on a fixed markup per gallon.

 

 

 

CST Services

 

CST Services, LLC, a wholly owned subsidiary of Circle K

 

 

 

DMI

 

Dunne Manning Inc. (formerly Lehigh Gas Corporation), an entity affiliated with Joseph V. Topper, Jr., a member of the Board, a related party and large holder of our common units

 

 

 

DMS

 

 

Dunne Manning Stores LLC (formerly known as Lehigh Gas-Ohio, LLC), an entity affiliated with the family of Joseph V. Topper, Jr., a member of the Board, a related party and large holder of our common units. DMS is an operator of retail motor fuel stations. DMS leases retail sites from us in accordance with a master lease agreement and DMS purchases substantially all of its motor fuel for these sites from us on a wholesale basis under rack plus pricing. The financial results of DMS are not consolidated with ours.

 

 

 

General Partner

 

CrossAmerica GP LLC, the General Partner of CrossAmerica, a Delaware limited liability company, indirectly owned by Circle K.

 

 

 

Topstar

 

Topstar Enterprises, an entity affiliated with Joseph V. Topper, Jr. Topstar is an operator of convenience stores that leases retail sites from us but does not purchase fuel from us.

 

 

 

Recent Acquisitions:

 

 

 

Franchised Holiday Stores

 

The franchised Holiday stores acquired in March 2016

 

 

 

Jet-Pep Assets

 

The assets acquired from Jet-Pep, Inc. in November 2017

 

 

 

Other Defined Terms:

 

 

 

 

 

Amended Omnibus Agreement

 

The Amended and Restated Omnibus Agreement, dated October 1, 2014, as amended effective January 1, 2016, February 1, 2018 and April 29, 2019 by and among CrossAmerica, the General Partner, DMI, DMS, CST Services and Joseph V. Topper, Jr., which amends and restates the original omnibus agreement that was executed in connection with CrossAmerica’s IPO on October 30, 2012. The terms of the Amended Omnibus Agreement were approved by the conflicts committee of the Board. Pursuant to the Amended Omnibus Agreement, CST Services agrees, among other things, to provide, or cause to be provided, to the Partnership certain management services.

 

 

 

Applegreen

 

Applegreen plc or one of its subsidiaries

 

 

 

ASC

 

Accounting Standards Codification

 

 

 

ASU

 

Accounting Standards Update

 

 

 

i


 

Board

 

Board of Directors of our General Partner

 

 

 

BP

 

BP p.l.c.

 

 

 

DTW

 

Dealer tank wagon contracts, which are variable cent per gallon priced wholesale motor fuel distribution or supply contracts. DTW also refers to the pricing methodology under such contracts

 

 

 

EBITDA

 

Earnings before interest, taxes, depreciation, amortization and accretion, a non-GAAP financial measure

 

 

 

EMV

 

Payment method based upon a technical standard for smart payment cards, also referred to as chip cards

 

 

 

Exchange Act

 

Securities Exchange Act of 1934, as amended

 

 

 

ExxonMobil

 

ExxonMobil Corporation

 

 

 

FASB

 

Financial Accounting Standards Board

 

 

 

Form 10-K

 

CrossAmerica’s Annual Report on Form 10-K for the year ended December 31, 2018

 

 

 

FTC

 

U.S. Federal Trade Commission

 

 

 

Getty Lease

 

In May 2012, the Predecessor Entity, which represents the portion of the business of DMI and its subsidiaries and affiliates contributed to the Partnership in connection with the IPO, entered into a 15-year master lease agreement with renewal options of up to an additional 20 years with Getty Realty Corporation.

 

 

 

IDRs

 

Incentive Distribution Rights represent the right to receive an increasing percentage of quarterly distributions after the target distribution levels have been achieved, as defined in our Partnership Agreement. Circle K is the indirect owner of 100% of the outstanding IDRs of CrossAmerica.

 

 

 

Internal Revenue Code

 

Internal Revenue Code of 1986, as amended

 

 

 

IPO

 

Initial public offering of CrossAmerica Partners LP on October 30, 2012

 

 

 

LIBOR

 

London Interbank Offered Rate

 

 

 

MD&A

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

 

Motiva

 

Motiva Enterprises LLC

 

 

 

Partnership Agreement

 

The First Amended and Restated Agreement of Limited Partnership of CrossAmerica Partners LP, dated as of October 1, 2014, as amended

 

 

 

Plan

 

 

In connection with the IPO, the General Partner adopted the Lehigh Gas Partners LP 2012 Incentive Award Plan, a long-term incentive plan for employees, officers, consultants and directors of the General Partner and any of its affiliates who perform services for the Partnership

 

 

 

Predecessor Entity

 

Wholesale distribution business of DMS and real property and leasehold interests contributed to the Partnership in connection with the IPO

 

 

 

Retail Site

 

A general term to refer to convenience stores, including those operated by commission agents, independent dealers, Circle K, DMS or lessee dealers, as well as company operated sites

 

 

 

RIN

 

Renewable identification number, an identifier used by governmental agencies to track a specific batch of renewable fuel

 

 

 

SEC

 

U.S. Securities and Exchange Commission

 

 

 

Terms Discounts

 

Discounts for prompt payment and other rebates and incentives from our suppliers for most of the gallons of motor fuel purchased by us, which are recorded within cost of sales. Prompt payment discounts are based on a percentage of the purchase price of motor fuel.

 

 

 

U.S. GAAP

 

U.S. Generally Accepted Accounting Principles

 

 

 

UST

 

Underground storage tanks

 

 

 

ii


 

Valero

 

Valero Energy Corporation and, where appropriate in context, one or more of its subsidiaries, or all of them taken as a whole

 

 

 

WTI

 

West Texas Intermediate crude oil

 

 

iii


PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CROSSAMERICA PARTNERS LP

CONSOLIDATED BALANCE SHEETS

(Thousands of Dollars, except unit data)

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,385

 

 

$

3,191

 

Accounts receivable, net of allowances of $525 and $607, respectively

 

 

21,977

 

 

 

16,160

 

Accounts receivable from related parties

 

 

10,878

 

 

 

9,697

 

Inventories

 

 

5,841

 

 

 

14,083

 

Assets held for sale

 

 

5,831

 

 

 

2,218

 

Other current assets

 

 

6,334

 

 

 

5,513

 

Total current assets

 

 

56,246

 

 

 

50,862

 

Property and equipment, net

 

 

582,560

 

 

 

647,413

 

Right-of-use assets, net

 

 

122,474

 

 

 

 

Intangible assets, net

 

 

47,578

 

 

 

59,063

 

Goodwill

 

 

88,764

 

 

 

88,764

 

Other assets

 

 

21,439

 

 

 

20,820

 

Total assets

 

$

919,061

 

 

$

866,922

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of debt and finance lease obligations

 

$

2,427

 

 

$

2,296

 

Current portion of operating lease obligations

 

 

23,615

 

 

 

 

Accounts payable

 

 

40,379

 

 

 

32,632

 

Accounts payable to related parties

 

 

34,115

 

 

 

25,045

 

Accrued expenses and other current liabilities

 

 

17,065

 

 

 

17,871

 

Motor fuel taxes payable

 

 

12,479

 

 

 

10,604

 

Total current liabilities

 

 

130,080

 

 

 

88,448

 

Debt and finance lease obligations, less current portion

 

 

520,772

 

 

 

519,276

 

Operating lease obligations, less current portion

 

 

101,551

 

 

 

 

Deferred tax liabilities, net

 

 

19,899

 

 

 

19,929

 

Asset retirement obligations

 

 

35,741

 

 

 

32,747

 

Other long-term liabilities

 

 

19,226

 

 

 

95,589

 

Total liabilities

 

 

827,269

 

 

 

755,989

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Common units—(34,459,936 and 34,444,113 units issued and

   outstanding at September 30, 2019 and December 31, 2018, respectively)

 

 

91,792

 

 

 

110,933

 

General Partner’s interest

 

 

 

 

 

 

Total Partners’ Capital

 

 

91,792

 

 

 

110,933

 

Total liabilities and equity

 

$

919,061

 

 

$

866,922

 

 

See Condensed Notes to Consolidated Financial Statements.

1


CROSSAMERICA PARTNERS LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(Thousands of Dollars, except unit and per unit amounts)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Operating revenues(a)

 

$

559,736

 

 

$

670,810

 

 

$

1,637,050

 

 

$

1,898,675

 

Costs of sales

 

 

518,591

 

 

 

627,012

 

 

 

1,517,458

 

 

 

1,770,954

 

Gross profit

 

 

41,145

 

 

 

43,798

 

 

 

119,592

 

 

 

127,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from CST Fuel Supply equity interests

 

 

3,927

 

 

 

3,479

 

 

 

11,087

 

 

 

11,024

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

12,978

 

 

 

15,261

 

 

 

42,541

 

 

 

47,294

 

General and administrative expenses

 

 

3,937

 

 

 

4,310

 

 

 

12,464

 

 

 

13,840

 

Depreciation, amortization and accretion expense

 

 

14,063

 

 

 

13,993

 

 

 

39,620

 

 

 

51,425

 

Total operating expenses

 

 

30,978

 

 

 

33,564

 

 

 

94,625

 

 

 

112,559

 

Loss on dispositions and lease terminations, net

 

 

(1,745

)

 

 

(61

)

 

 

(2,173

)

 

 

(6,678

)

Operating income

 

 

12,349

 

 

 

13,652

 

 

 

33,881

 

 

 

19,508

 

Other income, net

 

 

168

 

 

 

104

 

 

 

352

 

 

 

287

 

Interest expense

 

 

(6,532

)

 

 

(8,145

)

 

 

(21,105

)

 

 

(24,354

)

Income (loss) before income taxes

 

 

5,985

 

 

 

5,611

 

 

 

13,128

 

 

 

(4,559

)

Income tax (benefit) expense

 

 

(1,180

)

 

 

303

 

 

 

(690

)

 

 

(2,122

)

Net income (loss)

 

 

7,165

 

 

 

5,308

 

 

 

13,818

 

 

 

(2,437

)

Less:  net loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

(5

)

Net income (loss) attributable to limited partners

 

 

7,165

 

 

 

5,308

 

 

 

13,818

 

 

 

(2,432

)

IDR distributions

 

 

(133

)

 

 

(133

)

 

 

(399

)

 

 

(1,446

)

Net income (loss) available to limited partners

 

$

7,032

 

 

$

5,175

 

 

$

13,419

 

 

$

(3,878

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) per limited partner unit

 

$

0.20

 

 

$

0.15

 

 

$

0.39

 

 

$

(0.11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average limited partner units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common units

 

 

34,453,162

 

 

 

34,439,416

 

 

 

34,447,185

 

 

 

34,311,998

 

Diluted common units(b)

 

 

34,464,027

 

 

 

34,439,416

 

 

 

34,447,723

 

 

 

34,311,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes excise taxes of:

 

$

21,292

 

 

$

25,176

 

 

$

61,642

 

 

$

74,984

 

(a) Includes revenues from fuel sales to and rental

      income from related parties of:

 

 

80,667

 

 

 

122,383

 

 

 

242,655

 

 

 

350,454

 

(b) Diluted common units were not used in the calculation of diluted earnings per common unit for the three and nine

      months ended September 30, 2018 because to do so would have been antidilutive.

 

 

See Condensed Notes to Consolidated Financial Statements.

 

 

2


CROSSAMERICA PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Thousands of Dollars)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

13,818

 

 

$

(2,437

)

Adjustments to reconcile net income (loss) to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion expense

 

 

39,620

 

 

 

51,425

 

Amortization of deferred financing costs

 

 

776

 

 

 

1,227

 

Amortization of above market leases, net

 

 

 

 

 

(18

)

Provision for losses on doubtful accounts

 

 

259

 

 

 

278

 

Deferred income taxes

 

 

4,099

 

 

 

(3,124

)

Equity-based employee and director compensation expense

 

 

547

 

 

 

340

 

Amended Omnibus Agreement fees settled in common units

 

 

 

 

 

3,300

 

Loss on dispositions and lease terminations, net

 

 

2,173

 

 

 

6,678

 

Changes in operating assets and liabilities, net of acquisitions

 

 

8,210

 

 

 

(399

)

Net cash provided by operating activities

 

 

69,502

 

 

 

57,270

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Principal payments received on notes receivable

 

 

803

 

 

 

718

 

Proceeds from sale of assets

 

 

1,000

 

 

 

5,043

 

Proceeds from sale of assets to Circle K

 

 

3,148

 

 

 

 

Capital expenditures

 

 

(18,398

)

 

 

(10,217

)

Cash paid to Circle K in connection with acquisitions

 

 

 

 

 

(485

)

Net cash used in investing activities

 

 

(13,447

)

 

 

(4,941

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings under the revolving credit facility

 

 

68,442

 

 

 

106,720

 

Repayments on the revolving credit facility

 

 

(62,442

)

 

 

(96,220

)

Payments of long-term debt and finance lease obligations

 

 

(1,708

)

 

 

(2,319

)

Payments of sale leaseback obligations

 

 

 

 

 

(750

)

Payment of deferred financing costs

 

 

(3,441

)

 

 

(901

)

Distributions paid on distribution equivalent rights

 

 

(63

)

 

 

(22

)

Distributions paid to holders of the IDRs

 

 

(399

)

 

 

(1,446

)

Distributions paid to noncontrolling interests

 

 

 

 

 

(18

)

Distributions paid on common units

 

 

(54,250

)

 

 

(57,479

)

Net cash used in financing activities

 

 

(53,861

)

 

 

(52,435

)

Net increase (decrease) in cash and cash equivalents

 

 

2,194

 

 

 

(106

)

Cash and cash equivalents at beginning of period

 

 

3,191

 

 

 

3,897

 

Cash and cash equivalents at end of period

 

$

5,385

 

 

$

3,791

 

 

See Condensed Notes to Consolidated Financial Statements.

 

 

3


CROSSAMERICA PARTNERS LP

CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME

(Thousands of Dollars, except unit amounts)

(Unaudited)

 

 

 

Limited Partners’ Interest

 

 

General

 

 

Incentive

 

 

 

 

 

 

 

 

 

 

 

Common

Unitholders

 

 

Partner’s

Interest

 

 

Distribution

Rights

 

 

Noncontrolling

Interest

 

 

Equity

 

 

 

Units

 

 

Dollars

 

 

Dollars

 

 

Dollars

 

 

Dollars

 

 

Dollars

 

Balance at December 31, 2018

 

 

34,444,113

 

 

$

110,933

 

 

$

 

 

$

 

 

$

 

 

$

110,933

 

Transition adjustment upon adoption of ASC 842, net

   of tax

 

 

 

 

 

28,896

 

 

 

 

 

 

 

 

 

 

 

 

28,896

 

Net income and comprehensive income

 

 

 

 

 

79

 

 

 

 

 

 

133

 

 

 

 

 

 

212

 

Distributions paid

 

 

 

 

 

(18,099

)

 

 

 

 

 

(133

)

 

 

 

 

 

(18,232

)

Balance at March 31, 2019

 

 

34,444,113

 

 

$

121,809

 

 

$

 

 

$

 

 

$

 

 

$

121,809

 

Vesting of incentive and director awards, net of units

   withheld for tax

 

 

243

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Asset exchange with Circle K, net of tax

 

 

 

 

 

(6,357

)

 

 

 

 

 

 

 

 

 

 

 

(6,357

)

Net income and comprehensive income

 

 

 

 

 

6,308

 

 

 

 

 

 

133

 

 

 

 

 

 

6,441

 

Distributions paid

 

 

 

 

 

(18,099

)

 

 

 

 

 

(133

)

 

 

 

 

 

(18,232

)

Balance at June 30, 2019

 

 

34,444,356

 

 

$

103,665

 

 

$

 

 

$

 

 

$

 

 

$

103,665

 

Vesting of incentive and director awards, net of units

   withheld for tax

 

 

15,580

 

 

 

263

 

 

 

 

 

 

 

 

 

 

 

 

263

 

Asset exchange with Circle K, net of tax

 

 

 

 

 

(1,053

)

 

 

 

 

 

 

 

 

 

 

 

(1,053

)

Net income and comprehensive income

 

 

 

 

 

7,032

 

 

 

 

 

 

133

 

 

 

 

 

 

7,165

 

Distributions paid

 

 

 

 

 

(18,115

)

 

 

 

 

 

(133

)

 

 

 

 

 

(18,248

)

Balance at September 30, 2019

 

 

34,459,936

 

 

$

91,792

 

 

$

 

 

$

 

 

$

 

 

$

91,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

 

34,111,461

 

 

$

171,337

 

 

$

 

 

$

 

 

$

(318

)

 

$

171,019

 

Issuance of units to Circle K for the payment of fees

   under the Amended Omnibus Agreement

 

 

136,882

 

 

 

3,218

 

 

 

 

 

 

 

 

 

 

 

 

3,218

 

Net (loss) income and comprehensive (loss) income

 

 

 

 

 

(1,985

)

 

 

 

 

 

1,180

 

 

 

(2

)

 

 

(807

)

Distributions paid

 

 

 

 

 

(21,415

)

 

 

 

 

 

(1,180

)

 

 

(18

)

 

 

(22,613

)

Balance at March 31, 2018

 

 

34,248,343

 

 

$

151,155

 

 

$

 

 

$

 

 

$

(338

)

 

$

150,817

 

Issuance of units to Circle K for the payment of fees

   under the Amended Omnibus Agreement

 

 

155,236

 

 

 

3,300

 

 

 

 

 

 

 

 

 

 

 

 

3,300

 

Vesting of incentive and director awards, net of units

   withheld for tax

 

 

29,995

 

 

 

642

 

 

 

 

 

 

 

 

 

 

 

 

642

 

Acquisition of leasehold interest in three sites from

   Circle K

 

 

 

 

 

(56

)

 

 

 

 

 

 

 

 

 

 

 

(56

)

Net (loss) income and comprehensive (loss) income

 

 

 

 

 

(7,068

)

 

 

 

 

 

133

 

 

 

(3

)

 

 

(6,938

)

Distributions paid

 

 

 

 

 

(18,002

)

 

 

 

 

 

(133

)

 

 

 

 

 

(18,135

)

Balance at June 30, 2018

 

 

34,433,574

 

 

$

129,971

 

 

$

 

 

$

 

 

$

(341

)

 

$

129,630

 

Vesting of incentive and director awards, net of units

   withheld for tax

 

 

10,539

 

 

 

(150

)

 

 

 

 

 

 

 

 

341

 

 

 

191

 

Net (loss) income and comprehensive (loss) income

 

 

 

 

 

5,175

 

 

 

 

 

 

133

 

 

 

 

 

 

5,308

 

Distributions paid

 

 

 

 

 

(18,084

)

 

 

 

 

 

(133

)

 

 

 

 

 

(18,217

)

Balance at September 30, 2018

 

 

34,444,113

 

 

$

116,912

 

 

$

 

 

$

 

 

$

 

 

$

116,912

 

 

See Condensed Notes to Consolidated Financial Statements.

 

 

4


CROSSAMERICA PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

Note 1.DESCRIPTION OF BUSINESS AND OTHER DISCLOSURES

Description of Business

Our business consists of:

 

the wholesale distribution of motor fuels;

 

the retail distribution of motor fuels to end customers at retail sites operated by commission agents or, through September 2019, us;

 

the owning or leasing of retail sites used in the retail distribution of motor fuels and, in turn, generating rental income from the lease or sublease of the retail sites; and

 

through September 2019, t