2015 Q2 Form 10-Q Financial Statement

#000153884915000028 Filed on August 07, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $650.1M $763.8M
YoY Change -14.89% 56.46%
Cost Of Revenue $609.0M $736.9M
YoY Change -17.36% 58.34%
Gross Profit $41.17M $26.95M
YoY Change 52.78% 18.19%
Gross Profit Margin 6.33% 3.53%
Selling, General & Admin $7.614M $10.68M
YoY Change -28.72% 179.63%
% of Gross Profit 18.49% 39.64%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $11.41M $7.270M
YoY Change 56.96% 91.32%
% of Gross Profit 27.72% 26.98%
Operating Expenses $39.10M $25.43M
YoY Change 53.76% 565.63%
Operating Profit $3.674M $1.574M
YoY Change 133.42% -82.72%
Interest Expense $4.743M $3.712M
YoY Change 27.77% 5.91%
% of Operating Profit 129.1% 235.83%
Other Income/Expense, Net $190.0K $119.0K
YoY Change 59.66% 19.0%
Pretax Income -$879.0K -$2.019M
YoY Change -56.46% -135.49%
Income Tax -$907.0K -$3.911M
% Of Pretax Income
Net Earnings $30.00K $1.892M
YoY Change -98.41% -65.41%
Net Earnings / Revenue 0.0% 0.25%
Basic Earnings Per Share -$0.01 $0.10
Diluted Earnings Per Share -$0.01 $0.10
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.600M $900.0K
YoY Change 411.11% 80.0%
Cash & Equivalents $4.590M $864.0K
Short-Term Investments
Other Short-Term Assets $9.439M $10.37M
YoY Change -8.97% 453.6%
Inventory $18.25M $14.34M
Prepaid Expenses
Receivables $30.12M $35.40M
Other Receivables $0.00 $0.00
Total Short-Term Assets $75.08M $88.62M
YoY Change -15.29% 219.42%
LONG-TERM ASSETS
Property, Plant & Equipment $478.8M $348.2M
YoY Change 37.51% 45.06%
Goodwill $83.08M $29.12M
YoY Change 185.36% 416.61%
Intangibles $84.11M $72.78M
YoY Change 15.56% 120.33%
Long-Term Investments
YoY Change
Other Assets $10.55M $9.749M
YoY Change 8.16% -8.89%
Total Long-Term Assets $662.7M $468.7M
YoY Change 41.39% 61.6%
TOTAL ASSETS
Total Short-Term Assets $75.08M $88.62M
Total Long-Term Assets $662.7M $468.7M
Total Assets $737.8M $557.3M
YoY Change 32.38% 75.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $47.71M $55.82M
YoY Change -14.53% 144.59%
Accrued Expenses $18.17M $11.54M
YoY Change 57.38% 134.21%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $8.260M $52.00K
YoY Change 15784.62% -97.92%
Total Short-Term Liabilities $85.99M $79.34M
YoY Change 8.38% 106.88%
LONG-TERM LIABILITIES
Long-Term Debt $266.0M $299.7M
YoY Change -11.23% 61.24%
Other Long-Term Liabilities $16.01M $14.66M
YoY Change 9.19% 12.94%
Total Long-Term Liabilities $282.0M $314.3M
YoY Change -10.28% 58.09%
TOTAL LIABILITIES
Total Short-Term Liabilities $85.99M $79.34M
Total Long-Term Liabilities $282.0M $314.3M
Total Liabilities $435.3M $476.0M
YoY Change -8.54% 55.93%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $302.5M $81.40M
YoY Change
Total Liabilities & Shareholders Equity $737.8M $557.3M
YoY Change 32.38% 75.37%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income $30.00K $1.892M
YoY Change -98.41% -65.41%
Depreciation, Depletion And Amortization $11.41M $7.270M
YoY Change 56.96% 91.32%
Cash From Operating Activities $5.600M $1.700M
YoY Change 229.41% -87.68%
INVESTING ACTIVITIES
Capital Expenditures -$300.0K -$3.000M
YoY Change -90.0% -25.0%
Acquisitions
YoY Change
Other Investing Activities -$100.0K -$98.60M
YoY Change -99.9% -4386.96%
Cash From Investing Activities -$500.0K -$101.6M
YoY Change -99.51% 5876.47%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -5.400M 99.30M
YoY Change -105.44% -948.72%
NET CHANGE
Cash From Operating Activities 5.600M 1.700M
Cash From Investing Activities -500.0K -101.6M
Cash From Financing Activities -5.400M 99.30M
Net Change In Cash -300.0K -600.0K
YoY Change -50.0% -250.0%
FREE CASH FLOW
Cash From Operating Activities $5.600M $1.700M
Capital Expenditures -$300.0K -$3.000M
Free Cash Flow $5.900M $4.700M
YoY Change 25.53% -73.6%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentration Risk</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Dunne Manning Stores LLC (formerly known as Lehigh Gas-Ohio, LLC) (&#8220;DMS&#8221; or &#8220;affiliated dealer&#8221;) is an operator of retail sites that purchases a significant portion of its motor fuel requirements from us on a wholesale basis and then re-sells motor fuel on a retail basis. DMS also leases real estate from us. The financial results of DMS are not consolidated with ours. For the </font><font style="font-family:inherit;font-size:10pt;">three and six months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">, CrossAmerica distributed approximately </font><font style="font-family:inherit;font-size:10pt;">17%</font><font style="font-family:inherit;font-size:10pt;"> of its total wholesale distribution volumes to DMS and DMS accounted for approximately </font><font style="font-family:inherit;font-size:10pt;">42%</font><font style="font-family:inherit;font-size:10pt;"> of our rental income. For more information regarding transactions with DMS, see Note </font><font style="font-family:inherit;font-size:10pt;">9</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For the </font><font style="font-family:inherit;font-size:10pt;">six months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">, CrossAmerica&#8217;s wholesale business purchased approximately </font><font style="font-family:inherit;font-size:10pt;">27%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">25%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">23%</font><font style="font-family:inherit;font-size:10pt;"> of its motor fuel from ExxonMobil, BP and Motiva, respectively. </font><font style="font-family:inherit;font-size:10pt;">No</font><font style="font-family:inherit;font-size:10pt;"> other fuel suppliers accounted for </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> or more of CrossAmerica&#8217;s fuel purchases in the </font><font style="font-family:inherit;font-size:10pt;">first half of</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of August 5, 2015, CrossAmerica&#8217;s total equity interest in CST Fuel Supply is </font><font style="font-family:inherit;font-size:10pt;">17.5%</font><font style="font-family:inherit;font-size:10pt;">. Valero Energy Corporation (&#8220;Valero&#8221;) supplied substantially all of the motor fuel purchased by CST Fuel Supply for resale to CST&#8217;s U.S. Retail segment during 2015. During the three and six months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">, CST Fuel Supply purchased </font><font style="font-family:inherit;font-size:10pt;">$1.1 billion</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$2.0 billion</font><font style="font-family:inherit;font-size:10pt;">, respectively, of motor fuel from Valero.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The store personnel at the convenience stores we acquired from Petroleum Marketers Incorporated (&#8220;PMI&#8221;) are employees of Pinehurst Services LLC (&#8220;Pinehurst&#8221;), to which we pay a management fee pursuant to the terms of an employee staffing agreement. Pinehurst employs approximately </font><font style="font-family:inherit;font-size:10pt;">650</font><font style="font-family:inherit;font-size:10pt;"> people that support our PMI convenience store operations and is owned and managed by an unrelated party.&#160;We incurred </font><font style="font-family:inherit;font-size:10pt;">$5.0 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$11.1 million</font><font style="font-family:inherit;font-size:10pt;"> in management fees for the </font><font style="font-family:inherit;font-size:10pt;">three and six months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">, respectively, under the employee staffing agreement, which is primarily included in operating expenses on the statement of operations.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications </font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The statement of operations was revised from the presentation included in our Form 10-K to conform to that presented in the Form 10-K for the year ended December 31, 2014 filed by CST. As a result, certain reclassifications were made to prior period amounts to conform to the current year presentation. These reclassifications had no impact on net income or equity for any periods.</font></div></div>
us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results and outcomes could differ from those estimates and assumptions. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions.</font></div></div>

Files In Submission

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0001538849-15-000028-index-headers.html Edgar Link pending
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0001538849-15-000028.txt Edgar Link pending
0001538849-15-000028-xbrl.zip Edgar Link pending
caplimga01.jpg Edgar Link pending
caplq2-15exhibit101incenti.htm Edgar Link pending
caplq2-15exhibit23secondam.htm Edgar Link pending
caplq2-15exhibit24addendum.htm Edgar Link pending
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