Company: CAPL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028082
Chunk: 62

Company: CrossAmerica Partners LP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1A
Chunk 62
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 to pay quarterly distribution at current levels or at all.

The amount of cash we can distribute on our common units principally depends upon the amount of cash we generate from our operations, which will fluctuate from quarter to quarter based on, among other things:

•demand for motor fuel products in the markets we serve, including seasonal fluctuations, and the margin per gallon we earn selling and distributing motor fuel;

•the wholesale price of motor fuel and its impact on the payment discounts we receive and the fees we pay on credit and debit card sales;

•demand for merchandise and services in the markets we serve, including seasonal fluctuations, and the margin percentage we earn;

•seasonal trends in the industries in which we operate;

•supply, and the impact that severe storms could have to our suppliers’ and customers’ operations;

•competition from other companies that sell motor fuel products or operate retail sites in our targeted market areas;

•the inability to identify and acquire suitable sites or to negotiate acceptable leases for such sites;

•the potential inability to obtain adequate financing to fund our expansion;

•the level of our operating costs, including payments to the Topper Group under the Omnibus Agreement;

•prevailing economic conditions;

•regulatory actions affecting the supply of or demand for motor fuel, our operations, our existing contracts or our operating costs; and

•volatility of prices for motor fuel.

In addition, the actual amount of cash we will have available for distribution will depend on other factors such as:

•the level and timing of capital expenditures we make;

•the level and timing of sales of sites in connection with our real estate optimization plan;

•the restrictions contained in our credit facilities;

•our debt service requirements and other liabilities;

•the cost of acquisitions, if any;

•fluctuations in our working capital needs;

•our ability to borrow under the CAPL Credit Facility and access capital markets on favorable terms, or at all; and

•the amount, if any, of cash reserves established by our General Partner in its discretion. 

Incurring additional debt may significantly increase our interest expense and financial leverage and issuing additional limited partner interests may result in significant unitholder dilution and would increase the aggregate amount of cash required to maintain the cash distribution rate, which could materially decrease our ability to pay distributions. Consequently, there is no guarantee that we will distribute quarterly cash distributions to our unitholders in any quarter.

The amount of cash we have available for distribution to unitholders depends primarily on our cash flow rather than on our profitability, which may