EX-99 3 capl-ex99_2.htm EX-99.2 INVESTOR PRESENTATION Q1-23

May 2023 First Quarter 2023 Earnings Call Exhibit 99.2

Forward Looking 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,” “anticipates”, “estimates,” “target” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see CrossAmerica’s annual reports on Form 10-K, quarterly reports on Form 10-Q and other reports filed with the Securities and Exchange Commission and available on the Partnership’s website at www.crossamericapartners.com. If any of these factors materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement you see or hear during this presentation reflects our current views as of the date of this presentation with respect to future events. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.

CrossAmerica Business OverviewCharles Nifong, CEO & President

First Quarter Operations Motor Fuel Gross Profit from the Wholesale Segment increased 3% $16.7 million in 1Q23 versus $16.2 million in 1Q22 Driven by fuel margin increase Overall Gross Profit for the Wholesale Segment increased 3% ($31.2 million for 1Q23 versus $30.3 million for 1Q22) Wholesale fuel margin increased 5%, while fuel volume declined 1% 8.3 cents in 1Q23 versus 7.9 cents in 1Q22 Benefited from better sourcing costs and other initiatives Wholesale fuel volume distributed for 1Q23 was 201.9 million gallons compared to 203.9 million gallons in 1Q22 Volume declined primarily due to lower volume in base business, partially offset by the volume generated by the acquisition of assets from Community Service Stations, Inc. Retail Segment’s Gross Profit increased 5% year-over-year $50.8 million in 1Q23 versus $48.5 million in 1Q22 Increase driven by motor fuel (+2%) and merchandise (+9%) gross profit Fuel margin per gallon, before deducting for credit card fees and commissions, for the retail segment of 31.8 cents in 1Q23 compared to 31.9 cents per gallon in 1Q22 Retail fuel volume for 1Q23 increased 3% when compared to 1Q22 (119.1 million gallons sold in 1Q23 versus 116.0 million gallons in 1Q22)

CrossAmerica Financial OverviewMaura Topper, Chief Financial Officer

First Quarter Results Summary OPERATING RESULTS (in thousands, except for distributions per unit and coverage) Three Months ended Mar 31, 2023 2022 % Change Net Income ($979) $5,047 (119%) Adjusted EBITDA $31,738 $31,968 (1%) Distributable Cash Flow $19,132 $24,248 (21%) Weighted Avg. Diluted Units 37,940 37,959 0% Distribution Paid per LP Unit $0.5250 $0.5250 0% Distributions Paid $19,918 $19,896 0% Distribution Coverage (Paid Basis – current quarter) 0.96x 1.22x (21%) Distribution Coverage (Paid Basis – trailing twelve months) 1.70x 1.39x 22% Note: See the reconciliation of Adjusted EBITDA and Distributable Cash Flow (or “DCF”) to net income and the definitions of EBITDA, Adjusted EBITDA and DCF in the appendix of this presentation.

Capital Strength Capital Expenditures Q1 2023 capital expenditures of $6.0 million, including $4.0 million of growth capex Growth capital projects during the quarter included dispensers for newly converted company operated Retail locations and store upgrade/rebranding work Credit Facility Amendment Amended and restated CAPL Credit Facility on 3/31/23 Upsized borrowing capacity to $925 million from $750 million Paid off and terminated subsidiary JKM Credit Facility Interest Rate Management Entered new interest rate swaps in April 2023 Total spot start notional of $200 million; 5-year term; rate ~3.3% Total forward start (1 Year) notional of $100 million; 4-year term; rate ~2.9% Complement existing $300 million notional swaps expiring 4/1/24 Coverage and Leverage Goals Continue to manage debt levels and our coverage ratio Leverage ratio at 4.05x at 3/31/23

Appendix First Quarter 2023 Earnings Call

Non-GAAP Financial Measures Non-GAAP Financial Measures We use non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net income available to us before deducting interest expense, income taxes and depreciation, amortization and accretion, which includes certain impairment charges. Adjusted EBITDA represents EBITDA as further adjusted to exclude equity funded expenses related to incentive compensation and operating expenses payable to affiliates of the general partner, gains or losses on dispositions and lease terminations, certain acquisition related costs, such as legal and other professional fees and severance expenses associated with recently acquired companies, and certain other non-cash items arising from purchase accounting. Distributable Cash Flow represents Adjusted EBITDA less cash interest expense, sustaining capital expenditures and current income tax expense. Distribution Coverage Ratio is computed by dividing Distributable Cash Flow by the weighted average diluted common units and then dividing that result by the distributions paid per limited partner unit. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are used as supplemental financial measures by management and by external users of our financial statements, such as investors and lenders. EBITDA and Adjusted EBITDA are used to assess our financial performance without regard to financing methods, capital structure or income taxes and the ability to incur and service debt and to fund capital expenditures. In addition, Adjusted EBITDA is used to assess our operating performance of our business on a consistent basis by excluding the impact of items which do not result directly from the wholesale distribution of motor fuel, the leasing of real property, or the day to day operations of our retail site activities. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are also used to assess our ability to generate cash sufficient to make distributions to our unitholders. We believe the presentation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio provides useful information to investors in assessing our financial condition and results of operations. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio should not be considered alternatives to net income or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio have important limitations as analytical tools because they exclude some but not all items that affect net income. Additionally, because EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Non-GAAP Reconciliation The following table presents reconciliations of EBITDA, Adjusted EBITDA, and Distributable Cash Flow to net income, the most directly comparable U.S. GAAP financial measure, for each of the periods indicated (in thousands, except for per unit amounts): Three Months Ended March 31, 2023 2022 Net (loss) income (a) $ (979 ) $ 5,047 Interest expense 12,012 6,661 Income tax benefit (1,662 ) (1,859 ) Depreciation, amortization and accretion expense 19,820 20,275 EBITDA 29,191 30,124 Equity-based employee and director compensation expense 561 732 Loss on dispositions and lease terminations, net 1,767 244 Acquisition-related costs (b) 219 868 Adjusted EBITDA 31,738 31,968 Cash interest expense (10,163 ) (5,981 ) Sustaining capital expenditures (c) (2,049 ) (1,554 ) Current income tax expense (394 ) (185 ) Distributable Cash Flow $ 19,132 $ 24,248 Distributions paid 19,918 19,896 Distribution Coverage Ratio (a) 0.96x 1.22x Beginning in 2022, CrossAmerica reconciled Adjusted EBITDA to Net income rather than to Net income available to limited partners. The difference between Net income and Net income available to limited partners is that, beginning in the second quarter of 2022, the accretion of preferred membership interests issued in late March 2022 is a deduction from Net income in computing Net income available to limited partners. Because Adjusted EBITDA is used to assess CrossAmerica’s financial performance without regard to capital structure, the partnership believes Adjusted EBITDA should be reconciled with Net income, so that the calculation isn’t impacted by the accretion of preferred membership interests. This approach is comparable to the reconciliation of Adjusted EBITDA to Net income available to limited partners in past periods, as CrossAmerica has not recorded accretion of preferred membership interests in past periods. (b) Relates to certain discrete acquisition-related costs, such as legal and other professional fees, separation benefit costs and certain purchase accounting adjustments associated with recently acquired businesses. (c) Under the Partnership Agreement, sustaining capital expenditures are capital expenditures made to maintain CrossAmerica's long-term operating income or operating capacity. Examples of sustaining capital expenditures are those made to maintain existing contract volumes, including payments to renew existing distribution contracts, or to maintain the sites in conditions suitable to lease, such as parking lot or roof replacement/renovation, or to replace equipment required to operate the existing business.