 Allentown, PA, Aug. 06, 2020 GLOBE NEWSWIRE -- CrossAmerica Partners LP Reports Second Quarter 2020 Results Reported Second Quarter 2020 Operating Income of 6.3 million and Net Income of 5.2 million compared to Operating Income of 13.9 million and Net Income of 6.4 million for the Second Quarter 2019 Generated Second Quarter 2020 Adjusted EBITDA of 27.7 million and Distributable Cash Flow of 26.0 million compared to Second Quarter 2019 Adjusted EBITDA of 27.7 million and Distributable Cash Flow of 22.3 million Reported Second Quarter 2020 Gross Profit for the Wholesale Segment of 40.7 million compared to 33.4 million of Gross Profit for the Second Quarter 2019 Reported Second Quarter 2020 Gross Profit for the Retail Segment of 15.9 million compared to 8.1 million of Gross Profit for the Second Quarter 2019 Distributed 260.2 million wholesale fuel gallons during the Second Quarter 2020 at an average wholesale fuel margin per gallon of 10.8 cents The Distribution Coverage Ratio for the current quarter was 1.31 times compared to 1.24 times for the comparable period of 2019. The Distribution Coverage Ratio was 1.21 times for the trailing twelve months ended June 30, 2020, as compared to 1.06 times for the trailing twelve months ended June 30, 2019 The Board of Directors of CrossAmericas General Partner declared a quarterly distribution of 0.5250 per limited partner unit attributable to the Second Quarter 2020 Allentown, PA August 6, 2020 CrossAmerica Partners LP NYSE: CAPL CrossAmerica or the Partnership, a leading wholesale fuels distributor and owner and lessor of real estate used in the retail distribution of motor fuels, today reported financial results for the second quarter ended June 30, 2020.Our operating results in the second quarter demonstrate the resiliency of our business model and validate the strategic actions we have executed. Despite the challenging environment, we generated superior results to the prior year and improved the strategic and financial position of the Partnership, said Charles Nifong, CEO and President of CrossAmerica. We continued to execute our plan during the quarter, closing on the retail acquisition, two separate asset exchanges, and continuing select single site divestitures, all while dealing with the challenges of COVID 19. Our results are a testament to the character and strength of our people, and I thank them for all their efforts during these difficult times.Second Quarter ResultsConsolidated ResultsOperating income was 6.3 million for the second quarter 2020 compared to 13.9 million achieved in the second quarter 2019. Net income was 5.2 million or 0.14 per diluted common unit for the second quarter 2020, compared to Net income of 6.4 million or 0.18 per diluted common unit for the same period in 2019. Adjusted EBITDA was 27.7 million for the second quarter 2020, flat when compared to 27.7 million for the same period in 2019. The declines in both Operating and Net income were primarily driven by a 10.9 million loss on lease terminations in connection with the April 2020 acquisition of retail and wholesale assets and the overall impact from the COVID-19 Pandemic. These unfavorable drivers were partially offset by the positive impact from all the transactions completed over the past year as well as 6.1 million in gains related to the properties sold in the asset exchanges with Circle K.Non-GAAP measures used in this release include EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. These Non-GAAP measures are further described and reconciled to their most directly comparable GAAP measures in the Supplemental Disclosure Regarding Non-GAAP Financial Measures section of this release.Wholesale SegmentDuring the second quarter 2020, CrossAmericas Wholesale segment generated 40.7 million in gross profit compared to 33.4 million in gross profit for the second quarter 2019, representing an increase of 22. The Partnership distributed, on a wholesale basis, 260.2 million gallons of motor fuel at an average wholesale gross profit of 0.108 per gallon, resulting in motor fuel gross profit of 28.2 million. For the three-month period ended June 30, 2019, CrossAmerica distributed, on a wholesale basis, 258.6 million gallons of fuel at an average wholesale gross profit of 0.074 per gallon, resulting in motor fuel gross profit of 19.0 million. The 48 increase in motor fuel gross profit was primarily due to a 46 increase in fuel margin per gallon. The main drivers of the increase were dealer tank wagon DTW margins resulting from the decrease in crude oil prices during the quarter and an increase in DTW volume. With the recent acquisition of retail and wholesale assets, the percentage of variable-pricedDTW business has increased from 17 for the first quarter 2020 to 28 for the second quarter 2020. In addition, the asset exchanges with Circle K, the CST Fuel Supply Exchange and the acquisition of retail and wholesale assets generated incremental fuel gross profit, partially offset by the loss of volume driven by the COVID-19 Pandemic and lower terms discounts as a result of lower crude prices.The prices paid by the Partnership to its motor fuel suppliers for wholesale motor fuel which affects the cost of sales are highly correlated to the price of crude oil. The average daily spot price of West Texas Intermediate crude oil during the second quarter 2020 was 27.96 per barrel, a 53 decrease, as compared to the average daily spot price of 59.88 per barrel during the same period in 2019. CrossAmericas gross profit from Rent for the Wholesale segment was 12.3 million for the second quarter 2020 compared to 13.6 million for the second quarter 2019, representing a decrease of 10. The decrease in Rent was primarily driven by terminating leases in connection with the acquisition of retail and wholesale assets and 0.5 million in short-term concessions stemming from the COVID-19 Pandemic, partially offset by the impact of the conversion of 46 company operated sites to dealer operated sites in the third quarter 2019 and the CST Fuel Supply Exchange. Operating expenses increased 2.1 million or 28 primarily as a result of a 0.8 million increase in management fees driven by the increase in headcount primarily related to the April 2020 acquisition of retail and wholesale assets and a general increase in operating expenses driven by the increase in the number of controlled sites due to the asset exchanges with Circle K and the CST Fuel Supply Exchange.Operating income for the Wholesale segment was 31.2 million for the second quarter 2020 compared to 29.7 million for the same period in 2019. As discussed above, the year-over-year increase was primarily driven by an increase in motor fuel gross profit.Retail SegmentFor the second quarter 2020, the Retail Segment reported motor fuel gross profit of 3.3 million. For the same period in 2019, CrossAmerica generated motor fuel gross profit of 1.9 million. The 1.4 million or 73 increase in motor fuel gross profit is attributable to a 38 increase in volume driven by the increase in company operated and commission sites as a result of the April 2020 acquisition of retail and wholesale assets and the March 2020 CST Fuel Supply Exchange, partially offset by the divestiture of 17 company operated sites in May 2019 in connection with the first tranche of the asset exchange with Circle K, the conversion of 46 company operated sites to dealer operated sites in the third quarter of 2019 and the impact of the COVID-19 Pandemic. In addition, CrossAmerica realized a 27 higher average margin per gallon as the higher retail fuel margins at its company operated sites comprised a larger percentage of the overall retail fuel margins in 2020 as compared to 2019.The merchandise gross profit increased 5.3 million or 127, rent gross profit increased 0.5 million or 32 and operating expenses increased 8.8 million or 129 due to the factors listed above.Operating income for the Retail segment was 0.3 million for the second quarter 2020 compared to 1.3 million for the second quarter 2019, primarily as a result of changes in operations noted above.Distributable Cash Flow and Distribution Coverage RatioDistributable Cash Flow was 26.0 million for the three-month period ended June 30, 2020, compared to 22.3 million for the same period in 2019. The 17 increase in Distributable Cash Flow was primarily due to the increase in operating income in the Wholesale Segment and decreases in cash interest and current tax expense. The Distribution Coverage Ratio for the current quarter was 1.31 times compared to 1.24 times for the second quarter 2019. The Distribution Coverage Ratio was 1.21 times for the trailing twelve months ended June 30, 2020, as compared to 1.06 times for the trailing twelve months ended June 30, 2019 see Supplemental Disclosure Regarding Non-GAAP Financial Measures section of this release.Liquidity and Capital ResourcesAs of July 31, 2020, after taking into consideration debt covenant restrictions, approximately 197.8 million was available for future borrowings under the Partnerships revolving credit facility, an increase of 105.8 million and 34.2 million, respectively, in availability compared to December 31, 2019 and March 31, 2020. As of June 30, 2020, CrossAmerica had 503.7 million outstanding under its revolving credit facility. Leverage, as defined under CrossAmericas credit facility, was 3.96 times as of June 30, 2020, compared to 4.19 times as of March 31, 2020.DistributionsOn July 23, 2020, the Board of the Directors of CrossAmericas General Partner Board declared a quarterly distribution of 0.5250 per limited partner unit attributable to the second quarter 2020. 