CrossAmerica Partners LP reported a decrease in financial performance for the fiscal year ending December 31, 2024, with total operating revenues of $4.1 billion, down 7% from $4.4 billion in 2023. The partnership's net income also fell to $22.5 million, a decline of 47% compared to $42.6 million in the previous year. The decrease in revenues was primarily attributed to a significant drop in wholesale segment revenues, which fell by 18% due to a 12% decrease in volume and a 7% decline in average wholesale selling prices, largely influenced by fluctuations in crude oil prices.
In terms of operational changes, CrossAmerica transitioned 59 lessee dealer sites to company-operated sites as part of its Applegreen Acquisition, which was finalized in early 2024. This acquisition, valued at $16.9 million, included the termination of existing lease agreements and the purchase of inventory at these locations. The partnership also amended its CAPL Credit Facility to accommodate lease termination expenses related to this acquisition. As of December 31, 2024, CrossAmerica operated 365 company-operated sites and distributed motor fuel to approximately 1,600 sites across 34 states.
The partnership's retail segment saw a revenue increase of 6%, driven by a 9% rise in volume due to the conversion of sites, although the average retail fuel selling price decreased by 6%. Merchandise revenues in the retail segment increased by 23%, reflecting the growth in the average company-operated site count. However, operating expenses rose by 25%, primarily due to the increased number of company-operated sites. The wholesale segment's gross profit decreased by 16%, reflecting the impact of site conversions and a net loss of independent dealer contracts.
Looking ahead, CrossAmerica anticipates that its results for 2025 will continue to be influenced by the volatility of crude oil prices and the ongoing evaluation of the highest and best use for its properties. The partnership plans to pursue further acquisitions and divestitures to optimize its asset portfolio, which may impact gross profit across its wholesale and retail segments. The partnership's ability to maintain or increase distributions to unitholders will depend on its operational performance and market conditions.
About CrossAmerica Partners LP
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