Welcome to the CrossAmerica Partners Fourth Quarter and Full Year 2022 Earnings Call. My name is Hilda, and I will be your operator for today's call. [Operator Instructions] 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 fourth quarter and full year 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 for 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 today. We thank you for taking the time to be with us on the call. During today's call, I will briefly go through some of the operating highlights for the fourth quarter and full year. I will also provide some color on the market and a few other updates similar to what I typically review on our calls. Maura will then review in more detail the financial results. Before we get into the operating results, I wanted to note that starting with these quarterly results, we have changed our segment reporting to simplify the assessment of the performance of our operating segments. You will see this new segment reporting in both our earnings press release and our 2022 Form 10-K. Maura will provide more specifics during her section of this morning's presentation. Now if you turn to Slide 4, I will briefly review some of our operating results. For the fourth quarter of 2022, our wholesale fuel gross profit increased 4% to $18.7 million compared to $18 million in the fourth quarter of 2021. This growth was driven by an increase in fuel margin. Wholesale segment gross profit was $32.8 million, an increase of 6% when compared to the gross profit of $31.1 million for the fourth quarter of 2021. Our wholesale fuel margin increased 12% from $0.078 per gallon in the fourth quarter of 2021 to $0.087 per gallon in the fourth quarter of 2022. The year-over-year increase was primarily driven by better sourcing costs due to our brand consolidation and other initiatives and by higher crude oil prices, which generate higher terms discounts for our fuel purchases. With our revised segment reporting, our wholesale segment now has less variable margin fuel supply gallons than it previously did. As…

Thank you, Charles. If you would please turn to Slide 8, I would like to review our fourth quarter and full year results for the partnership. We reported net income of $17.1 million for the fourth quarter of 2022 compared to net income of $12 million in the fourth 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 favorable fuel margin environment that Charles spoke about in his comments. Adjusted EBITDA was $44.3 million for the fourth quarter of 2022, which was an increase of 20% when compared to adjusted EBITDA of $37 million for the fourth quarter of 2021. Our distributable cash flow for the fourth quarter of 2022 was $33.3 million versus $31 million for the fourth quarter of 2021. The 8% increase in distributable cash flow was primarily due to the increase in operating income in both the wholesale and retail segments, partially offset by an increase in cash interest expense. Although our interest expense was impacted by the rising rate environment we experienced in 2022, as with prior periods, we continue to benefit from the interest rate swaps we have in place on $300 million of our revolving credit facility at an attractive swap rate of approximately 50 basis points. Our distribution coverage for the current quarter was 1.67x compared to 1.56x for the fourth quarter of 2021. The partnership paid a distribution of $0.525 per unit during the fourth quarter of 2022 attributable to the third quarter of 2022 for a total of almost $20 million. For the full year of 2022, net income increased over $40 million to $63.7 million. Adjusted EBITDA was $179.8 million for the full year of 2022 compared…

It appears we don't have any questions today. Should you have some questions later, please reach out to us. We'll be happy to address them. We thank everyone for joining us on the call today. Have a good day.

Thank you. This concludes today's conference. Thank you for participating. You may now disconnect.