Company Quick10K Filing
CrossAmerica Partners
Price1.00 EPS-21,501,000
Shares-0 P/E-0
MCap-0 P/FCF-0
Net Debt522 EBIT46
TEV522 TEV/EBIT11
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-07
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-26
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-06
10-Q 2019-03-31 Filed 2019-05-07
10-K 2018-12-31 Filed 2019-02-26
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-08-07
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-02-27
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-06-30 Filed 2017-08-08
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-02-28
10-Q 2016-09-30 Filed 2016-11-08
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-19
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-11
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-03-10
10-Q 2013-09-30 Filed 2013-11-12
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-14
10-K 2012-12-31 Filed 2013-03-28
10-Q 2012-09-30 Filed 2012-12-10
8-K 2020-08-06 Earnings, Regulation FD, Exhibits
8-K 2020-07-23 Officers, Regulation FD, Exhibits
8-K 2020-05-06
8-K 2020-05-05
8-K 2020-04-23
8-K 2020-04-14
8-K 2020-04-07
8-K 2020-03-25
8-K 2020-02-25
8-K 2020-02-06
8-K 2020-01-22
8-K 2020-01-15
8-K 2020-01-15
8-K 2019-12-06
8-K 2019-11-19
8-K 2019-11-07
8-K 2019-10-29
8-K 2019-10-24
8-K 2019-09-05
8-K 2019-08-05
8-K 2019-07-18
8-K 2019-05-21
8-K 2019-05-06
8-K 2019-04-25
8-K 2019-04-01
8-K 2019-02-25
8-K 2019-01-29
8-K 2018-12-17
8-K 2018-11-06
8-K 2018-10-24
8-K 2018-08-06
8-K 2018-07-13
8-K 2018-07-09
8-K 2018-05-07
8-K 2018-04-25
8-K 2018-02-26
8-K 2018-02-23
8-K 2018-01-24

CAPL 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1.Description of Business and Other Disclosures
Note 2. Asset Exchange Transaction with Circle K
Note 3. Cst Fuel Supply Exchange Agreement
Note 4. Retail and Wholesale Acquisition
Note 5. Assets Held for Sale
Note 6. Inventories
Note 7. Property and Equipment
Note 8. Intangible Assets
Note 9. Debt
Note 10. Interest Rate Swap Contracts
Note 11. Operating Leases of Retail Sites As Lessee
Note 12. Related - Party Transactions
Note 13. Commitments and Contingencies
Note 14. Fair Value Measurements
Note 15. Equity - Based Compensation
Note 16. Income Taxes
Note 17. Net Income per Limited Partner Unit
Note 18. Segment Reporting
Note 19. Supplemental Cash Flow Information
Note 20. 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 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 capl-ex311_9.htm
EX-31.2 capl-ex312_6.htm
EX-32.1 capl-ex321_7.htm
EX-32.2 capl-ex322_8.htm

CrossAmerica Partners Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
96076857638419202012201420172020
Assets, Equity
835665495325155-152012201420172020
Rev, G Profit, Net Income
1508316-51-118-1852012201420172020
Ops, Inv, Fin

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2020-06-30

 

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 June 30, 2020

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.     

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 July 31, 2020, the registrant had outstanding 37,868,046 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 June 30, 2020 (unaudited) and December 31, 2019

 

1

Consolidated Statements of Operations (unaudited) for the Three and Six Months Ended June 30, 2020 and 2019

 

2

Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended June 30, 2020 and 2019

 

3

Consolidated Statements of Equity and Comprehensive Income (unaudited) for the Three and Six Months Ended June 30, 2020 and 2019

 

4

Condensed Notes to Consolidated Financial Statements

 

5

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

 

25

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

46

Item 4. Controls and Procedures

 

46

PART II - OTHER INFORMATION

 

47

Item 1. Legal Proceedings

 

47

Item 1A. Risk Factors

 

47

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

47

Item 6. Exhibits

 

48

SIGNATURE

 

49

 

 

 

 


 

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 at any point during 2019 or 2020:

 

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, which merged into Circle K Stores. Inc on February 28, 2020, 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. From July 1, 2015 through March 25, 2020, we owned a 17.5% limited partner interest in CST Fuel Supply. See Note 3 to the financial statements for information regarding the closing of the CST Fuel Supply Exchange.

 

 

 

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 the Topper Group

 

 

 

DMP

 

Dunne Manning Partners LLC, an entity affiliated with the Topper Group and controlled by Joseph V. Topper, Jr. Since November 19, 2019, DMP has owned 100% of the membership interests in the sole member of the General Partner.

 

 

 

DMR

 

Dunne Manning Realty LP, an entity affiliated with the Topper Group

 

 

 

DMS

 

 

Dunne Manning Stores LLC (formerly known as Lehigh Gas-Ohio, LLC), an entity affiliated with the Topper Group. Through April 14, 2020, DMS was an operator of retail motor fuel stations. DMS leased retail sites from us in accordance with a master lease agreement and purchased a significant portion 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. See Note 4 to the financial statements regarding the acquisition of retail and wholesale assets from the Topper Group and related termination of the fuel supply and master lease agreements with us.

 

 

 

General Partner

 

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

 

 

 

Topper Group

 

Joseph V. Topper, Jr., collectively with his affiliates and family trusts that have ownership interests in the Partnership. Joseph V. Topper, Jr. is the founder of the Partnership and a member of the Board. The Topper Group is a related party and large holder of our common units

 

 

 

TopStar

 

TopStar Inc., an entity affiliated with a family member of Joseph V. Topper, Jr. TopStar is an operator of convenience stores that leases retail sites from us, and since April 14, 2020, also purchases 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

 

 

 

 

 

 

i


 

Other Defined Terms:

 

 

 

 

 

ASC

 

Accounting Standards Codification

 

 

 

ASU

 

Accounting Standards Update

 

 

 

Board

 

Board of Directors of our General Partner

 

 

 

BP

 

BP p.l.c.

 

 

 

CDC

 

The Centers for Disease Control and Prevention

 

 

 

Circle K 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 Circle K Omnibus Agreement were approved by the independent conflicts committee of the Board. Pursuant to the Circle K Omnibus Agreement, CST Services agreed, among other things, to provide, or cause to be provided, to the Partnership certain management services. See Note 12 to the financial statements for information regarding the termination of this agreement and the concurrent entering into the Transitional Omnibus Agreement.

 

 

 

COVID-19 Pandemic

 

In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China. In March 2020, the World Health Organization declared the outbreak a pandemic.

 

 

 

CST Fuel Supply Exchange

 

Exchange Agreement, dated November 19, 2019, between the Partnership and Circle K, which closed effective March 25, 2020. Pursuant to the Exchange Agreement, Circle K transferred to the Partnership certain owned and leased convenience store properties and related assets (including fuel supply agreements) and wholesale fuel supply contracts covering additional sites, and, in exchange, the Partnership transferred to Circle K 100% of the limited partnership units it held in CST Fuel Supply.

 

 

 

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, 2019

 

 

 

FTC

 

U.S. Federal Trade Commission

 

 

 

GP Purchase

 

Purchase by DMP from subsidiaries of Circle K of: 1) 100% of the membership interests in the sole member of the General Partner; 2) 100% of the Incentive Distribution Rights issued by the Partnership; and 3) an aggregate of 7,486,131 common units of the Partnership. These transactions closed on November 19, 2019.

 

 

 

IDRs

 

Incentive Distribution Rights represented the right to receive an increasing percentage of quarterly distributions after the target distribution levels were achieved. As a result of the GP Purchase, DMP owned 100% of the outstanding IDRs from November 19, 2019 through February 6, 2020. See Note 17 to the financial statements for information regarding the elimination of the IDRs.

 

 

 

Internal Revenue Code

 

Internal Revenue Code of 1986, as amended

 

 

 

IPO

 

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

 

 

 

ii


 

LIBOR

 

London Interbank Offered Rate

 

 

 

MD&A

 

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

 

 

 

Marathon

 

Marathon Petroleum Company LP

 

 

 

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. See Note 17 to the financial statements regarding the elimination of the IDRs, which triggered the need to further amend the Partnership Agreement.

 

 

 

Predecessor Entity

 

Wholesale distribution contracts and real property and leasehold interests contributed to the Partnership in connection with the IPO

 

 

 

SEC

 

U.S. Securities and Exchange Commission

 

 

 

Terms Discounts

 

Discounts for prompt payment and other rebates and incentives from our suppliers for a majority 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.

 

 

 

Topper Group Omnibus

Agreement

 

The Topper Group Omnibus Agreement, effective January 1, 2020, by and among the Partnership, the General Partner and DMI. The terms of the Topper Group Omnibus Agreement were approved by the independent conflicts committee of the Board, which is composed of the independent directors of the Board. Pursuant to the Topper Group Omnibus Agreement, DMI agrees, among other things, to provide, or cause to be provided, to the Partnership certain management services at cost without markup.

 

 

 

Transitional Omnibus

Agreement

 

Upon the closing of the GP Purchase, the Circle K Omnibus Agreement was terminated and the Partnership entered into a Transitional Omnibus Agreement, dated as of November 19, 2019, among the Partnership, the General Partner and Circle K. Pursuant to the Transitional Omnibus Agreement, Circle K agreed, among other things, to continue to provide, or cause to be provided, to the Partnership certain management services, administrative and operating services, as provided under the Circle K Omnibus Agreement through June 30, 2020 with respect to certain services, unless earlier terminated or unless the parties extend the term of certain services. In addition, from January 1, 2020 until the closing of the CST Fuel Supply Exchange, the General Partner provided Circle K with certain administrative and operational services, on the terms and conditions set forth in the Transitional Omnibus Agreement.

 

 

 

U.S. GAAP

 

U.S. Generally Accepted Accounting Principles

 

 

 

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)

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,185

 

 

$

1,780

 

Accounts receivable, net of allowances of $1,181 and $557, respectively

 

 

35,743

 

 

 

38,051

 

Accounts receivable from related parties

 

 

3,322

 

 

 

4,299

 

Inventory

 

 

19,606

 

 

 

6,230

 

Assets held for sale

 

 

12,139

 

 

 

13,231

 

Other current assets

 

 

9,020

 

 

 

5,795

 

Total current assets

 

 

82,015

 

 

 

69,386

 

Property and equipment, net

 

 

572,471

 

 

 

565,916

 

Right-of-use assets, net

 

 

163,360

 

 

 

120,767

 

Intangible assets, net

 

 

95,523

 

 

 

44,996

 

Goodwill

 

 

88,764

 

 

 

88,764

 

Other assets

 

 

19,527

 

 

 

21,318

 

Total assets

 

$

1,021,660

 

 

$

911,147

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of debt and finance lease obligations

 

$

2,540

 

 

$

2,471

 

Current portion of operating lease obligations

 

 

30,808

 

 

 

23,485

 

Accounts payable

 

 

67,893

 

 

 

57,392

 

Accounts payable to related parties

 

 

8,242

 

 

 

431

 

Accrued expenses and other current liabilities

 

 

19,597

 

 

 

16,382

 

Motor fuel and sales taxes payable

 

 

25,579

 

 

 

12,475

 

Total current liabilities

 

 

154,659

 

 

 

112,636

 

Debt and finance lease obligations, less current portion

 

 

518,614

 

 

 

534,859

 

Operating lease obligations, less current portion

 

 

137,893

 

 

 

100,057

 

Deferred tax liabilities, net

 

 

16,394

 

 

 

19,369

 

Asset retirement obligations

 

 

40,079

 

 

 

35,589

 

Other long-term liabilities

 

 

35,507

 

 

 

30,240

 

Total liabilities

 

 

903,146

 

 

 

832,750

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Common units—(37,866,005 and 34,494,441 units issued and

   outstanding at June 30, 2020 and December 31, 2019, respectively)

 

 

121,732

 

 

 

78,397

 

Accumulated other comprehensive loss

 

 

(3,218

)

 

 

 

Total equity

 

 

118,514

 

 

 

78,397

 

Total liabilities and equity

 

$

1,021,660

 

 

$

911,147

 

 

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating revenues(a)

 

$

398,402

 

 

$

605,528

 

 

$

790,097

 

 

$

1,077,314

 

Costs of sales(b)

 

 

340,754

 

 

 

564,158

 

 

 

696,720

 

 

 

998,867

 

Gross profit

 

 

57,648

 

 

 

41,370

 

 

 

93,377

 

 

 

78,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from CST Fuel Supply equity interests

 

 

 

 

 

3,734

 

 

 

3,202

 

 

 

7,160

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

25,097

 

 

 

14,210

 

 

 

35,820

 

 

 

29,563

 

General and administrative expenses

 

 

5,597

 

 

 

4,109

 

 

 

10,077

 

 

 

8,527

 

Depreciation, amortization and accretion expense

 

 

16,050

 

 

 

12,496

 

 

 

33,277

 

 

 

25,557

 

Total operating expenses

 

 

46,744

 

 

 

30,815

 

 

 

79,174

 

 

 

63,647

 

(Loss) gain on dispositions and lease terminations, net

 

 

(4,575

)

 

 

(369

)

 

 

66,356

 

 

 

(428

)

Operating income

 

 

6,329

 

 

 

13,920

 

 

 

83,761

 

 

 

21,532

 

Other income, net

 

 

78

 

 

 

98

 

 

 

215

 

 

 

184

 

Interest expense

 

 

(4,121

)

 

 

(7,236

)

 

 

(9,661

)

 

 

(14,573

)

Income before income taxes

 

 

2,286

 

 

 

6,782

 

 

 

74,315

 

 

 

7,143

 

Income tax (benefit) expense

 

 

(2,944

)

 

 

341

 

 

 

(2,976

)

 

 

490

 

Net income

 

 

5,230

 

 

 

6,441

 

 

 

77,291

 

 

 

6,653

 

IDR distributions

 

 

 

 

 

(133

)

 

 

(133

)

 

 

(266

)

Net income available to limited partners

 

$

5,230

 

 

$

6,308

 

 

$

77,158

 

 

$

6,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per common unit

 

$

0.14

 

 

$

0.18

 

 

$

2.09

 

 

$

0.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average limited partner units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic common units

 

 

37,736,329

 

 

 

34,444,180

 

 

 

36,865,651

 

 

 

34,444,147

 

Diluted common units

 

 

37,738,150

 

 

 

34,461,024

 

 

 

36,867,495

 

 

 

34,461,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes excise taxes of:

 

$

33,770

 

 

$

19,906

 

 

$

48,707

 

 

$

40,350

 

(a) Includes rent income of:

 

 

20,424

 

 

 

21,960

 

 

 

43,112

 

 

 

43,598

 

(b) Includes rent expense of:

 

 

6,132

 

 

 

6,813

 

 

 

13,052

 

 

 

13,472

 

 

See Condensed Notes to Consolidated Financial Statements.

 

 

2


CROSSAMERICA PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Thousands of Dollars)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

77,291

 

 

$

6,653

 

Adjustments to reconcile net income to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion expense

 

 

33,277

 

 

 

25,557

 

Amortization of deferred financing costs

 

 

521

 

 

 

545

 

Credit loss expense

 

 

627

 

 

 

49

 

Deferred income taxes

 

 

(3,063

)

 

 

1,718

 

Equity-based employee and director compensation expense

 

 

48

 

 

 

326

 

(Gain) loss on dispositions and lease terminations, net

 

 

(74,189

)

 

 

428

 

Changes in operating assets and liabilities, net of acquisitions

 

 

27,131

 

 

 

(1,106

)

Net cash provided by operating activities

 

 

61,643

 

 

 

34,170

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Principal payments received on notes receivable

 

 

172

 

 

 

692

 

Proceeds from Circle K in connection with CST Fuel Supply Exchange

 

 

16,396

 

 

 

2,757

 

Proceeds from sale of property and equipment

 

 

9,954

 

 

 

902

 

Capital expenditures

 

 

(10,760

)

 

 

(10,710

)

Cash paid in connection with acquisitions, net of cash acquired

 

 

(22,342

)

 

 

 

Net cash used in investing activities

 

 

(6,580

)

 

 

(6,359

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings under the revolving credit facility

 

 

63,201

 

 

 

46,634

 

Repayments on the revolving credit facility

 

 

(78,527

)

 

 

(34,334

)

Payments of long-term debt and finance lease obligations

 

 

(1,207

)

 

 

(1,124

)

Payment of deferred financing costs

 

 

 

 

 

(3,441

)

Distributions paid on distribution equivalent rights

 

 

(2

)

 

 

(31

)

Distributions paid to holders of the IDRs

 

 

(133

)

 

 

(266

)

Distributions paid on common units

 

 

(37,990

)

 

 

(36,167

)

Net cash used in financing activities

 

 

(54,658

)

 

 

(28,729

)

Net increase (decrease) in cash and cash equivalents

 

 

405

 

 

 

(918

)

Cash and cash equivalents at beginning of period

 

 

1,780

 

 

 

3,191

 

Cash and cash equivalents at end of period

 

$

2,185

 

 

$

2,273

 

 

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

 

 

Incentive

 

 

Accumulated other

 

 

 

 

 

 

 

Common

Unitholders

 

 

Distribution

Rights

 

 

comprehensive loss

 

 

Total Equity

 

 

 

Units

 

 

Dollars

 

 

Dollars

 

 

Dollars

 

 

Dollars

 

Balance at December 31, 2019

 

 

34,494,441

 

 

$

78,397

 

 

$