Welcome to the to the CrossAmerica Partners Third Quarter Earnings Call. My name is Richard and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to Maura Topper. You may begin.

Thank you, operator. Good morning, and thank you for joining the CrossAmerica Partners third quarter 2022 earnings call. With me today is Charles Nifong, CEO and President. Charles will provide some opening comments, a brief overview of CrossAmerica's operational performance and highlights from the quarter, and then I will discuss the financial results. At the end, we will open up the call to questions. I should point out that today's call will follow some presentation slides that we will utilize during this morning's event. These slides are available as part of the webcast and are posted on the CrossAmerica website. Before we begin, I would like to remind everyone that today's call, including the question-and-answer session, may include forward-looking statements regarding expected revenue, future plans, future operational metrics and opportunities and expectations of the organization. There can be no assurance that management's expectations, beliefs and projections will be achieved or that actual results will not differ from expectations. Please see CrossAmerica's filings with the Securities and Exchange Commission, including annual reports on Form 10-K and quarterly reports on Form 10-Q for a discussion of important factors that could affect our actual results. Forward-looking statements represent the judgment of CrossAmerica's management as of today's date, and the organization disclaims any intent or obligation to update any forward-looking statements. During today's call, we may also provide certain performance measures that do not conform to U.S. generally accepted accounting principles or GAAP. We have provided schedules that reconcile these non-GAAP measures with our reported results on a GAAP basis as part of our earnings press release. Today's call is being webcast, and a recording of this conference call will be available on the CrossAmerica website for a period of 60 days. With that, I will now turn the call over to Charles.

Thank you, Maura. Maura and I appreciate everyone joining us this morning on election day. There's a lot going on today. So we thank you for making the time in your schedule to be with us this morning. During today's call, I will briefly go through some of the operating highlights for the third quarter. I'll also provide some color in the market and a few other updates similar to what I provided on previous calls. Maura will then review in more detail the financial results. Now if you turn to slide 4, I will briefly review some of our operating results. For the third quarter of 2022, our wholesale fuel gross profit increased 24% to $42.2 million, compared to $34.1 million in the third quarter of 2021. This growth was driven by an increase in fuel margin. Wholesale segment gross profit was $56.8 million, an increase of 18% or $8.6 million when compared to the third quarter of 2021. Our wholesale fuel volume was 338 million gallons for the third quarter 2022, a decline of 5% when compared to the same period in 2021 largely due to lower volume in our base business partially offset by the acquisition of assets from 711, which occurred primarily during the third quarter of 2021. Nationally, it was another challenging quarter for fuel volume. Based on Energy Information Administration data, gasoline demand was down nationally approximately 6% for the quarter. On a same store basis our wholesale volume declined approximately 8% for the quarter. If we look at recent weeks, over the last four weeks of data, our same store volumes down approximately 4% to 5% relative to the prior year. National demand based on EIA data for approximately the same time period continued to remain down about 6% relative to the prior…

Thank you, Charles. If you would please turn to slide 6. I'd like to review our third quarter results for the partnership. We reported net income of $27.6 million for the third quarter of 2022 compared to net income of $8.9 million in the third quarter of 2021. The increase in net income was primarily driven by the year-over-year increases in operating income in both the wholesale and retail segments with each segment benefiting from the acquisition of assets from 711, along with a favorable fuel margin environment. Adjusted EBITDA was $62.2 million for the third quarter of 2022 which was an increase of 73% when compared to adjusted EBITDA of $35.9 million for third quarter of 2021. Our distributable cash flow for the third quarter of 2022 was $50.9 million versus $30.4 million for the third quarter of 2021. 67% increase in distributable cash flow is primarily due to the increase in operating income in both the wholesale and retail segments, partially offset by an increase in cash interest expense. These strong earnings figures resulted in the generation of $53 million of cash flow from earnings to the third quarter of 2022 compared to the generation of $27 million of cash flow from earnings in the third quarter of 2021. Additionally, we benefited from the declining fuel price environment during the third quarter of 2022, which contributed to additional cash flow generated from working capital of $19 million. For total operating cash flow generated during the quarter at $72 million, an increase of more than $36 million compared to the third quarter of 2021. Charles noted earlier the multiple factors impacting our top line and gross profit performance during the quarter. Turning to our expense profile. We saw a 36% increase in our operating expenses compared to the prior…

Thank you. We will now begin the question-and-answer session. [Operator Instructions].

It doesn't look like we have any questions at the moment. Should you have questions later. As always feel free to reach out to us. We'll be happy to address them. Thank you everyone for joining us a day. Have a good day.

And thank you ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.