CrossAmerica Partners LP · NYSE:CAPL
CrossAmerica Partners LP — Investor Presentation (February 2017)
22 slides from CrossAmerica Partners LP's investor presentation, Feb 28, 2017
Slide 1: February 2017 Investor Update
February 2017 Investor Update Jeremy Bergeron, President
Slide 2: Safe Harbor Statement
Investor Update February 2017 Safe Harbor Statement Statements contained in this presentation that state the Partnership’s or management’s expectations or predictions of the future are forward-looking statements. The words “believe,” “expect,” “should,” “intends,” “estimates,” “target” and other sim
Slide 3: CrossAmerica Partners LP Overview
Investor Update February 2017 CrossAmerica Partners LP Overview* • Master limited partnership and leading wholesale fuels distributor, convenience store lessor, and c-store operator – Distributes annually over 1 billion gallons of fuel – Annual gross rental income over $80 million – Operates 76 c-st
Slide 4: 2016 Highlights
Investor Update February 2017 2016 Highlights • Acquisitions – 31 stores acquired from S/S/G Corp (Franchised Holiday Stores), approx. 26 million annual fuel gallons – 55 lessee dealer and 25 independent dealer accounts acquired from State Oil, approx. 60 million annual gallons • Portfolio Optimizat
Slide 5: History of Growth
Investor Update February 2017 2012 Dunmore Oil Acquisition (Pennsylvania) Express Lane Acquisition (Florida) 2013 Rocky Top Acquisition (Tennessee) Rogers Acquisition (Tennessee) 2014 2014 2015 2016 Manchester Acquisition (Virginia) Atlas Acquisition (Chicago) Landmark Industries Acquisition (Texas)
Slide 6: Growth Drivers
Investor Update February 2017 Growth Drivers • Capital Discipline – Executed M&A strategy with two accretive acquisitions in 2016 – Leveraged real estate with sale-leaseback transaction – Unlocked additional capacity with credit facility enhancements – Sustaining CapEx of less than $1 million in 201
Slide 7: Overview of Business Segments
Investor Update February 2017 Overview of Business Segments Wholesale Fuels Distributor Convenience Store Lessor Convenience Store Operator • Purchase and sale of wholesale motor fuel – Distribute branded and unbranded fuel (83% of the motor fuel we distributed in 2016 was branded) – Distribute moto
Slide 8: Wholesale Segment
Investor Update February 2017 Wholesale Segment • Wholesale Fuel Supply – Averaged 5.2 cpg in 2016 on 1.04 billion gallons • Historically averaged 5-7 cpg margin • Fluctuates based on value of prompt-payment discounts and other factors, including dealer-tank-wagon margins – Supply Contracts • 83% of
Slide 9: Wholesale Segment – Fuel
Investor Update February 2017 Wholesale Segment – Fuel 9 Fuel Volume Distributed by Brand (2016, gallons in millions) 308 260 234 70 44 41 26 21 16 15 UNBRANDED Distributed 1.04 billion gallons of motor fuel in 2016 71% increase from IPO year of 2012 OTHER BRANDS
Slide 10: Wholesale Segment – Rent
Investor Update February 2017 Wholesale Segment – Rent • Rental Income (annuity stream) has become a sizable portion of cash flow contribution – We own nearly 60% of all sites from which we generate rental income – Gross Rental Income grew 25% from 2015 to 2016 • Own convenient fueling locations in
Slide 11: Retail Segment
Investor Update February 2017 Retail Segment • Own/Lease and Operate 76 Convenience Stores(1) – All located in Minnesota and Wisconsin – Operate under three store brands • FreedomValu, Holiday, or SuperAmerica – Merchandise and Services • In 2016, averaged sales of $3,790 pspd at 24.6% margin • Own/
Slide 12: Portfolio Optimization
Investor Update February 2017 Portfolio Optimization • Continued focus on managing expenses and execution of our integration strategy – Divested of low-margin, high-expense commercial fuels business acquired with PMI acquisition • Divestiture was cash flow positive despite 80 million gallon reductio
Slide 13: Drivers of Cash Flow
Investor Update February 2017 Drivers of Cash Flow Segment Gross Profit(1) Category Gross Profit(1) (1) Presented before intersegment eliminations 13 2016 73% 27% Wholesale Retail $113 million $43 million 35% 5% $9 million 38% 22% Wholesale Fuel Retail Fuel Rent Merch & Other $59 million $34 million
Slide 14: Operating Results
Investor Update February 2017 Operating Results Operating Results (in thousands, except for per gallon and site count) 2016 2015 % Change WHOL ES AL E Motor Fuel Distribution Sites (period avg.) 1,128 1,064 6% Volume of Gallons Distributed 1,034,585 1,051,357 (2%) Wholesale Fuel Margin per Gallon $0
Slide 15: Financial Summary
Investor Update February 2017 $39,296 $44,063 $69,733 $81,628 $54,904 $61,424 $90,314 $103,634 $1.73 $2.08 $2.23 $2.40 $0 $20 ,000 $40 ,000 $60 ,000 $80 ,000 $10 0,000 $12 0,000 2013 2014 2015 2016 Distributable Cash Flow (in thousands) Adjusted EBITDA (in thousands) Distributions Paid (in dollars p
Slide 16: Executing with Measured Growth
Investor Update February 2017 Executing with Measured Growth • Declared distribution attributable to fourth quarter of $0.6125 per unit – 0.5 cent per unit increase over distributions attributable to third quarter 2016 – Increased annual per unit distribution by 6.1% for 2016 over 2015 – Continue to
Slide 17: Transaction Overview
Investor Update February 2017 Transaction Overview • Couche-Tard subsidiary to acquire CST – Includes assets related to CrossAmerica • Organizational Relationship Upon Closing – Couche-Tard controls the general partner of CrossAmerica through its 100% ownership of the general partner interest – Couc
Slide 18: Strategic Benefit to CAPL
Investor Update February 2017 Strategic Benefit to CAPL • Provides continuity with a sponsor whose management culture is aligned with CrossAmerica – Disciplined operator with best practices in acquisitions and integration – Strong and consistent financial performance throughout all economic cycles –
Slide 19: Combined Wholesale
Investor Update February 2017 Combined Wholesale 19 West Coast Region Couche-Tard CrossAmerica CODO 89 0 DODO 233 0 Arizona Region Couche-Tard CrossAmerica CODO 0 0 DODO 0 0 Southwest Region Couche-Tard CrossAmerica CODO 2 22 DODO 88 16 Gulf Region Couche-Tard CrossAmerica CODO 4 44 DODO 47 6 Southe
Slide 20: Appendix
CROSSAMERICA Appendix PARTNERS LP Investor Update
Slide 21: Non-GAAP Financial Measures
Investor Update February 2017 Non-GAAP Financial Measures 21
Slide 22: Non-GAAP Reconciliation
Investor Update February 2017 Non-GAAP Reconciliation 22
CrossAmerica Partners — Investor Presentation (February 2017) on 6ix