• ARKO Corp. Reports Third Quarter 2024 Results

    Источник: Nasdaq GlobeNewswire / 07 ноя 2024 16:05:43   America/New_York

    RICHMOND, Va., Nov. 07, 2024 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced financial results for the third quarter ended September 30, 2024.

    Third Quarter 2024 Key Highlights (vs. Year-Ago Quarter)1,2

    • Net income for the quarter was $9.7 million compared to $21.5 million.
    • Adjusted EBITDA for the quarter was $78.8 million, as compared to $87.3 million for the prior year period; performance for the quarter was at the midpoint of the Company’s previously issued guidance of $70 million to $86 million.
    • Retail fuel margin for the quarter was 41.3 cents per gallon, as compared to 40.3 cents for the prior year period.
    • Merchandise margin rate for the quarter was 32.8%, as compared to 31.7% for the prior year period.
    • Merchandise contribution for the quarter was $154.0 million, as compared to $160.7 million for the prior year period.
    • Retail fuel contribution for the quarter was $117.1 million, as compared to $121.3 million for the prior year period.

    ___________________
    1 See Use of Non-GAAP Measures below.
    2 All figures for fuel contribution and fuel margin per gallon exclude the estimated fixed margin or fixed fee paid to the Company’s wholesale fuel distribution subsidiary, GPM Petroleum LP (“GPMP”) for the cost of fuel (intercompany charges by GPMP).


    Other Key Highlights

    • As part of the Company’s developing transformation plan, the Company converted 51 retail stores to dealer sites in the nine months ended on September 30, 2024. The Company expects to convert another approximately 100 retail stores by the end of the fourth quarter of 2024, which together with the initial 51 stores is expected to represent a cumulative annualized benefit to combined wholesale segment and retail segment Operating Income of approximately $8.5 million. Such conversions are part of our channel optimization strategy, which is expected to yield a cumulative annualized benefit to combined wholesale segment and retail segment Operating Income of approximately $15 million to $20 million.
    • The Company has expanded its pipeline to eight NTI (new to industry) stores, including two Dunkin’ locations. During the quarter, the Company opened a NTI Handy Mart store in Newport, North Carolina. The Company expects to open three more NTI stores later this year, with the balance over the course of 2025.
    • The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on December 3, 2024 to stockholders of record as of November 19, 2024.

    “As our customers continue to face macroeconomic pressure related to inflation and elevated prices for everyday goods, we continue to focus on delivering essential value to our customers,” said Arie Kotler, Chairman, President, and CEO of ARKO.

    Mr. Kotler continued: “Our focus on operational excellence, improving customer offerings, and strengthening store-level performance remains a top priority. We believe that we are well-positioned to manage near-term macroeconomic challenges, and we remain confident in ARKO’s long-term potential for sustained growth. We believe the improvements in our operations and investments in our stores will guide us through the current environment and build the foundation for our multi-year transformation.”

    Third Quarter 2024 Segment Highlights

    Retail

     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
     2024  2023  2024  2023 
     (in thousands) 
    Fuel gallons sold 283,189   300,796   822,134   843,286 
    Same store fuel gallons sold decrease (%) 1 (6.6%)  (5.3%)  (6.6%)  (4.5%)
    Fuel contribution 2$117,090  $121,266  $328,004  $325,986 
    Fuel margin, cents per gallon 3 41.3   40.3   39.9   38.7 
    Same store fuel contribution 1,2$113,192  $118,250  $306,673  $317,828 
    Same store merchandise sales (decrease) increase (%) 1 (7.7%)  0.1%  (5.7%)  1.4%
    Same store merchandise sales excluding cigarettes (decrease) increase (%) 1 (5.7%)  1.0%  (4.3%)  3.9%
    Merchandise revenue$469,616  $506,425  $1,358,519  $1,391,274 
    Merchandise contribution 4$154,019  $160,726  $444,696  $438,349 
    Merchandise margin 5 32.8%  31.7%  32.7%  31.5%
    Same store merchandise contribution 1,4$147,223  $154,719  $413,992  $424,789 
    Same store site operating expenses 1$192,548  $195,334  $557,425  $555,631 
                
    1 Same store is a common metric used in the convenience store industry. We consider a store a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. Refer to Use of Non-GAAP Measures below for discussion of this measure. 
                
    2 Calculated as fuel revenue less fuel costs; excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel. 
                
    3 Calculated as fuel contribution divided by fuel gallons sold. 
                
    4 Calculated as merchandise revenue less merchandise costs. 
                
    5 Calculated as merchandise contribution divided by merchandise revenue. 


    Total merchandise contribution for the third quarter of 2024 decreased $6.7 million, or 4.2%, compared to the third quarter of 2023, primarily due to a decrease in same store merchandise contribution of approximately $7.5 million and a decrease from underperforming retail stores that were closed or converted to dealers, which was partially offset by approximately $2.7 million in incremental merchandise contribution from recent acquisitions. Same store merchandise contribution decreased primarily due to lower same store sales caused by a decline in customer transactions reflecting the challenging macro-economic environment. The impact of the same store sales decline was partially offset by an increase in same store merchandise margin rate, which increased 100 basis points as compared to the year-ago period.

    For the third quarter of 2024, retail fuel contribution decreased $4.2 million to $117.1 million compared to the prior year period, with gallon demand declines reflecting the challenging macro-economic environment. The impact of the gallon demand decline was partially offset by resilient fuel margin capture of 41.3 cents per gallon, which was up 1.0 cent per gallon compared to the third quarter of 2023. The decline in retail fuel contribution was caused by a reduction in same store fuel contribution of $5.1 million and a decrease from underperforming retail stores that were closed or converted to dealers, which was partially offset by incremental fuel contribution from recent acquisitions of approximately $2.2 million.

    Wholesale

     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
     2024  2023  2024  2023 
     (in thousands) 
    Fuel gallons sold – fuel supply locations 203,187   205,836   593,479   601,399 
    Fuel gallons sold – consignment agent locations 39,155   45,365   115,997   127,861 
    Fuel contribution 1 – fuel supply locations$12,077  $13,222  $35,926  $36,896 
    Fuel contribution 1 – consignment locations$11,283  $13,107  $32,150  $34,412 
    Fuel margin, cents per gallon 2 – fuel supply locations 5.9   6.4   6.1   6.1 
    Fuel margin, cents per gallon 2 – consignment agent locations 28.8   28.9   27.7   26.9 
                
    1 Calculated as fuel revenue less fuel costs; excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel. 
                
    2 Calculated as fuel contribution divided by fuel gallons sold. 


    In wholesale, total fuel contribution was approximately $23.4 million for the third quarter of 2024 compared to $26.3 million for the third quarter of 2023. Fuel contribution for the third quarter of 2024 at fuel supply locations decreased by $1.2 million, and fuel contribution at consignment agent locations decreased by $1.8 million, compared to the prior year period, with corresponding decreases in fuel margin per gallon, primarily due to decreased prompt pay discounts related to lower fuel costs and lower volumes. For the third quarter of 2024, site operating expenses decreased by $0.2 million compared to the prior year period.

    Fleet Fueling

     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
     2024  2023  2024  2023 
     (in thousands) 
    Fuel gallons sold – proprietary cardlock locations 34,089   34,277   103,216   97,710 
    Fuel gallons sold – third-party cardlock locations 3,105   2,985   9,575   6,631 
    Fuel contribution 1 – proprietary cardlock locations$15,699  $13,497  $46,789  $41,539 
    Fuel contribution 1 – third-party cardlock locations$482  $794  $1,168  $971 
    Fuel margin, cents per gallon 2 – proprietary cardlock locations 46.1   39.4   45.3   42.5 
    Fuel margin, cents per gallon 2 – third-party cardlock locations 15.5   26.6   12.2   14.6 
                
    1 Calculated as fuel revenue less fuel costs; excludes the estimated fixed fee paid to GPMP for the cost of fuel. 
                
    2 Calculated as fuel contribution divided by fuel gallons sold. 


    In fleet fueling, fuel contribution increased by $1.9 million compared to the third quarter of 2023. At proprietary cardlocks, fuel contribution increased by $2.2 million, and fuel margin per gallon also increased for the third quarter of 2024 compared to the third quarter of 2023. At third-party cardlock locations, fuel contribution decreased by $0.3 million, and fuel margin per gallon also decreased for the third quarter of 2024 compared to the third quarter of 2023. These changes were primarily due to differing market conditions impacting the third quarters of 2024 and 2023.

    Site Operating Expenses

    For the quarter ended September 30, 2024, convenience store operating expenses decreased $3.1 million, or 1.5%, as compared to the prior year period, primarily due to a decrease in same store expenses of $2.8 million, or 1.4%, and a decrease from underperforming retail stores that were closed or converted to dealers. This decline in same store expenses was primarily related to lower personnel costs and lower credit card fees. These decreases were partially offset by $3.8 million of incremental expenses related to recent acquisitions.

    Liquidity and Capital Expenditures

    As of September 30, 2024, the Company’s total liquidity was approximately $869 million, consisting of approximately $292 million of cash and cash equivalents and approximately $577 million of availability under lines of credit. Outstanding debt was $885 million, resulting in net debt, excluding lease related financing liabilities, of approximately $593 million. Capital expenditures were approximately $29.3 million for the quarter ended September 30, 2024.

    Quarterly Dividend and Share Repurchase Program

    The Company’s ability to return cash to its stockholders through its cash dividend program and share repurchase program is consistent with its capital allocation framework and reflects the Company’s confidence in the strength of its cash generation ability and strong financial position.

    The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on December 3, 2024 to stockholders of record as of November 19, 2024.

    There was approximately $25.7 million remaining under the share repurchase program as of September 30, 2024.

    Company-Operated Retail Store Count and Segment Update

    The following tables present certain information regarding changes in the retail, wholesale and fleet fueling segments for the periods presented:

     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
    Retail Segment2024  2023  2024  2023 
    Number of sites at beginning of period 1,548   1,547   1,543   1,404 
    Acquired sites —   7   21   166 
    Newly opened or reopened sites 1   1   2   4 
    Company-controlled sites converted to consignment or fuel supply locations, net (49)  (2)  (51)  (13)
    Closed or divested sites (9)  (1)  (24)  (9)
    Number of sites at end of period 1,491   1,552   1,491   1,552 


     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
    Wholesale Segment 12024  2023  2024  2023 
    Number of sites at beginning of period 1,794   1,824   1,825   1,674 
    Acquired sites —   —   —   190 
    Newly opened or reopened sites 2 10   34   30   58 
    Consignment or fuel supply locations converted from Company-controlled or fleet fueling sites, net 49   2   51   13 
    Closed or divested sites (21)  (35)  (74)  (110)
    Number of sites at end of period 1,832   1,825   1,832   1,825 
                
    1 Excludes bulk and spot purchasers. 
    2 Includes all signed fuel supply agreements irrespective of fuel distribution commencement date.

    		 


     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
    Fleet Fueling Segment2024  2023  2024  2023 
    Number of sites at beginning of period 294   293   298   183 
    Acquired sites —   —   —   111 
    Closed or divested sites (14)  (2)  (18)  (3)
    Number of sites at end of period 281   295   281   295 


    Fourth Quarter and Full Year 2024 Guidance

    The Company currently expects fourth quarter 2024 Adjusted EBITDA to range between $53 million and $63 million, with an assumed range of average retail fuel margin from 38 to 42 cents per gallon. This outlook translates to a full year 2024 Adjusted EBITDA range of $245 million to $255 million.

    The Company is not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with its stock price, as well as depreciation and amortization related to its capital allocation as part of its focus on accelerating organic growth.

    Conference Call and Webcast Details

    The Company will host a conference call today to discuss these results at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 800-343-4136 or 203-518-9848.

    A simultaneous, live webcast will also be available on the Investor Relations section of the Company’s website at https://www.arkocorp.com/news-events/ir-calendar. The webcast will be archived for 30 days.

    About ARKO Corp.

    ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, we operate A Family of Community Brands that offer delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. Our high value fas REWARDS® loyalty program offers exclusive savings on merchandise and gas. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites; and fleet fueling, which includes the operation of proprietary and third-party cardlock locations, and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

    Forward-Looking Statements

    This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company’s ability to maintain the listing of its common stock and warrants on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.

    Use of Non-GAAP Measures

    The Company discloses certain measures on a “same store basis,” which is a non-GAAP measure. Information disclosed on a “same store basis” excludes the results of any store that is not a “same store” for the applicable period. A store is considered a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. The Company believes that this information provides greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States (“GAAP”).

    The Company defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition and divestiture costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges.

    At the segment level, the Company defines Operating Income, as adjusted, as operating income excluding the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel. Each of Operating Income, as adjusted, EBITDA and Adjusted EBITDA is a non-GAAP financial measure.

    The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. Additionally, the Company believes Operating Income, as adjusted provides greater comparability regarding its ongoing segment operating performance by eliminating intercompany charges at the segment level. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance.

    Operating Income, as adjusted, EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be considered as a substitute for net income or any other financial measure presented in accordance with GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

    Because non-GAAP financial measures are not standardized, same store measures, Operating Income, as adjusted, EBITDA and Adjusted EBITDA, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company’s use of these non-GAAP financial measures with those used by other companies.

    Company Contact
    Jordan Mann
    ARKO Corp.
    investors@gpminvestments.com

    Investor Contact
    Sean Mansouri, CFA
    Elevate IR
    (720) 330-2829
    ARKO@elevate-ir.com

       
     Condensed Consolidated Statements of Operations 
          
     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
     2024  2023  2024  2023 
     (in thousands) 
    Revenues:           
    Fuel revenue$1,783,871  $2,086,392  $5,302,734  $5,705,156 
    Merchandise revenue 469,616   506,425   1,358,519   1,391,274 
    Other revenues, net 25,749   29,237   78,600   83,141 
    Total revenues 2,279,236   2,622,054   6,739,853   7,179,571 
    Operating expenses:           
    Fuel costs 1,626,399   1,923,869   4,855,462   5,262,854 
    Merchandise costs 315,597   345,699   913,823   952,925 
    Site operating expenses 222,744   226,698   665,366   637,383 
    General and administrative expenses 38,636   44,116   123,230   127,192 
    Depreciation and amortization 33,132   33,713   98,425   94,949 
    Total operating expenses 2,236,508   2,574,095   6,656,306   7,075,303 
    Other expenses, net 1,159   3,885   3,896   11,561 
    Operating income 41,569   44,074   79,651   92,707 
    Interest and other financial income 3,135   9,371   26,462   18,897 
    Interest and other financial expenses (26,759)  (23,950)  (73,910)  (67,238)
    Income before income taxes 17,945   29,495   32,203   44,366 
    Income tax expense (8,300)  (7,993)  (9,139)  (10,849)
    Income (loss) from equity investment 29   (14)  79   (77)
    Net income$9,674  $21,488  $23,143  $33,440 
    Less: Net income attributable to non-controlling interests —   48   —   149 
    Net income attributable to ARKO Corp.$9,674  $21,440  $23,143  $33,291 
    Series A redeemable preferred stock dividends (1,446)  (1,449)  (4,305)  (4,301)
    Net income attributable to common shareholders$8,228  $19,991  $18,838  $28,990 
    Net income per share attributable to common shareholders – basic$0.07  $0.17  $0.16  $0.24 
    Net income per share attributable to common shareholders – diluted$0.07  $0.17  $0.16  $0.24 
    Weighted average shares outstanding:           
    Basic 115,771   118,389   116,262   119,505 
    Diluted 117,888   120,292   117,342   120,602 


       
     Condensed Consolidated Balance Sheets 
          
     September 30, 2024  December 31, 2023 
     (in thousands) 
    Assets     
    Current assets:     
    Cash and cash equivalents$291,697  $218,120 
    Restricted cash 27,314   23,301 
    Short-term investments 5,132   3,892 
    Trade receivables, net 117,890   134,735 
    Inventory 236,487   250,593 
    Other current assets 101,428   118,472 
    Total current assets 779,948   749,113 
    Non-current assets:     
    Property and equipment, net 740,761   742,610 
    Right-of-use assets under operating leases 1,406,429   1,384,693 
    Right-of-use assets under financing leases, net 159,110   162,668 
    Goodwill 300,032   292,173 
    Intangible assets, net 187,999   214,552 
    Equity investment 2,964   2,885 
    Deferred tax asset 58,573   52,293 
    Other non-current assets 52,485   49,377 
    Total assets$3,688,301  $3,650,364 
    Liabilities     
    Current liabilities:     
    Long-term debt, current portion$15,372  $16,792 
    Accounts payable 209,102   213,657 
    Other current liabilities 173,578   179,536 
    Operating leases, current portion 70,120   67,053 
    Financing leases, current portion 11,175   9,186 
    Total current liabilities 479,347   486,224 
    Non-current liabilities:     
    Long-term debt, net 869,323   828,647 
    Asset retirement obligation 87,331   84,710 
    Operating leases 1,424,834   1,395,032 
    Financing leases 211,380   213,032 
    Other non-current liabilities 236,081   266,602 
    Total liabilities 3,308,296   3,274,247 
          
    Series A redeemable preferred stock 100,000   100,000 
          
    Shareholders' equity:     
    Common stock 12   12 
    Treasury stock (106,123)  (74,134)
    Additional paid-in capital 272,604   245,007 
    Accumulated other comprehensive income 9,119   9,119 
    Retained earnings 104,393   96,097 
    Total shareholders' equity 280,005   276,101 
    Non-controlling interest —   16 
    Total equity 280,005   276,117 
    Total liabilities, redeemable preferred stock and equity$3,688,301  $3,650,364 


       
     Condensed Consolidated Statements of Cash Flows 
                
     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
     2024  2023  2024  2023 
     (in thousands) 
    Cash flows from operating activities:           
    Net income$9,674  $21,488  $23,143  $33,440 
    Adjustments to reconcile net income to net cash provided by operating activities:           
    Depreciation and amortization 33,132   33,713   98,425   94,949 
    Deferred income taxes 2,269   10,087   (3,660)  (4,028)
    Loss on disposal of assets and impairment charges 1,752   2,265   5,137   5,543 
    Foreign currency (gain) loss (16)  72   41   130 
    Gain from issuance of shares as payment of deferred consideration related to business acquisition —   —   (2,681)  — 
    Gain from settlement related to business acquisition —   —   (6,356)  — 
    Amortization of deferred financing costs and debt discount 668   644   2,000   1,857 
    Amortization of deferred income (3,757)  (2,373)  (10,126)  (6,302)
    Accretion of asset retirement obligation 628   572   1,871   1,690 
    Non-cash rent 3,634   3,860   10,805   10,418 
    Charges to allowance for credit losses 92   448   733   1,021 
    (Income) loss from equity investment (29)  14   (79)  77 
    Share-based compensation 2,149   4,614   8,262   13,238 
    Fair value adjustment of financial assets and liabilities 1,443   (6,379)  (10,763)  (11,627)
    Other operating activities, net 66   1,303   752   2,279 
    Changes in assets and liabilities:           
    Decrease (increase) in trade receivables 37,596   (44,314)  16,112   (62,487)
    Decrease (increase) in inventory 14,655   (9,178)  17,427   (17,386)
    Decrease (increase) in other assets 8,066   (17,464)  13,909   (28,429)
    (Decrease) increase in accounts payable (32,614)  15,087   (6,137)  29,667 
    Increase in other current liabilities 23,768   16,643   17,844   8,992 
    (Decrease) increase in asset retirement obligation (163)  —   (283)  46 
    Increase in non-current liabilities 6,143   1,719   22,754   5,719 
    Net cash provided by operating activities 109,156   32,821   199,130   78,807 
    Cash flows from investing activities:           
    Purchase of property and equipment (29,269)  (25,565)  (77,781)  (75,603)
    Purchase of intangible assets —   (10)  —   (45)
    Proceeds from sale of property and equipment 1,058   10,621   51,353   307,106 
    Business acquisitions, net of cash (91)  (13,268)  (54,549)  (494,904)
    Loans to equity investment, net 14   —   42   — 
    Net cash used in investing activities (28,288)  (28,222)  (80,935)  (263,446)
    Cash flows from financing activities:           
    Receipt of long-term debt, net —   4,600   47,556   78,833 
    Repayment of debt (6,714)  (6,006)  (20,563)  (16,517)
    Principal payments on financing leases (1,274)  (1,325)  (3,580)  (4,237)
    Early settlement of deferred consideration related to business acquisition —   —   (17,155)  — 
    Proceeds from sale-leaseback —   —   —   80,397 
    Payment of Ares Put Option —   —   —   (9,808)
    Common stock repurchased —   (11,636)  (31,989)  (25,199)
    Dividends paid on common stock (3,473)  (3,559)  (10,542)  (10,775)
    Dividends paid on redeemable preferred stock (1,446)  (1,449)  (4,305)  (4,301)
    Net cash (used in) provided by financing activities (12,907)  (19,375)  (40,578)  88,393 
    Net increase (decrease) in cash and cash equivalents and restricted cash 67,961   (14,776)  77,617   (96,246)
    Effect of exchange rate on cash and cash equivalents and restricted cash 11   (62)  (27)  (83)
    Cash and cash equivalents and restricted cash, beginning of period 251,039   235,278   241,421   316,769 
    Cash and cash equivalents and restricted cash, end of period$319,011  $220,440  $319,011  $220,440 


    Supplemental Disclosure of Non-GAAP Financial Information

      Reconciliation of EBITDA and Adjusted EBITDA 
                 
      For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
      2024  2023  2024  2023 
      (in thousands) 
    Net income $9,674  $21,488  $23,143  $33,440 
    Interest and other financing expenses, net  23,624   14,579   47,448   48,341 
    Income tax expense  8,300   7,993   9,139   10,849 
    Depreciation and amortization  33,132   33,713   98,425   94,949 
    EBITDA  74,730   77,773   178,155   187,579 
    Acquisition and divestiture costs (a)  1,729   1,127   3,919   7,980 
    Loss on disposal of assets and impairment charges (b)  1,752   2,265   5,137   5,543 
    Share-based compensation expense (c)  2,149   4,614   8,262   13,238 
    (Income) loss from equity investment (d)  (29)  14   (79)  77 
    Fuel and franchise taxes received in arrears (e)  (862)  —   (1,427)  — 
    Adjustment to contingent consideration (f)  (706)  952   (998)  (672)
    Other (g)  14   558   (957)  726 
    Adjusted EBITDA $78,777  $87,303  $192,012  $214,471 
                 
    Additional information            
    Non-cash rent expense (h) $3,634  $3,860  $10,805  $10,418 
                 
                 
    (a) Eliminates costs incurred that are directly attributable to business acquisitions and divestitures (including conversion of retail stores to dealer sites) and salaries of employees whose primary job function is to execute the Company's acquisition and divestiture strategy and facilitate integration of acquired operations. 
                 
    (b) Eliminates the non-cash loss from the sale of property and equipment, the loss recognized upon the sale of related leased assets, and impairment charges on property and equipment and right-of-use assets related to closed and non-performing sites. 
                 
    (c) Eliminates non-cash share-based compensation expense related to the equity incentive program in place to incentivize, retain, and motivate employees, certain non-employees and members of the Board. 
                 
    (d) Eliminates the Company's share of (income) loss attributable to its unconsolidated equity investment. 
                 
    (e) Eliminates the receipt of historical fuel and franchise tax amounts for multiple prior periods. 
                 
    (f) Eliminates fair value adjustments to the contingent consideration owed to the seller for the 2020 Empire acquisition. 
                 
    (g) Eliminates other unusual or non-recurring items that the Company does not consider to be meaningful in assessing operating performance. 
                 
    (h) Non-cash rent expense reflects the extent to which GAAP rent expense recognized exceeded (or was less than) cash rent payments. GAAP rent expense varies depending on the terms of the Company's lease portfolio. For newer leases, rent expense recognized typically exceeds cash rent payments, whereas, for more mature leases, rent expense recognized is typically less than cash rent payments. 


    Supplemental Disclosures of Segment Information

    Retail Segment

     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
     2024  2023  2024  2023 
     (in thousands) 
    Revenues:           
    Fuel revenue$929,783  $1,086,405  $2,730,583  $2,945,243 
    Merchandise revenue 469,616   506,425   1,358,519   1,391,274 
    Other revenues, net 16,082   19,750   49,496   57,302 
    Total revenues 1,415,481   1,612,580   4,138,598   4,393,819 
    Operating expenses:           
    Fuel costs 826,765   980,161   2,443,499   2,661,406 
    Merchandise costs 315,597   345,699   913,823   952,925 
    Site operating expenses 202,097   205,216   602,664   578,496 
    Total operating expenses 1,344,459   1,531,076   3,959,986   4,192,827 
    Operating income 71,022   81,504   178,612   200,992 
    Intercompany charges by GPMP 1 14,072   15,022   40,920   42,149 
    Operating income, as adjusted$85,094  $96,526  $219,532  $243,141 
                
    1 Represents the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel. 


    The table below shows financial information and certain key metrics of recent acquisitions in the Retail Segment that do not have (or have only partial) comparable information for any of the prior periods.

     For the Three Months Ended
    September 30, 2024    		  For the Nine Months Ended
    September 30, 2024    		 
     Speedy's 1  SpeedyQ 2  Total  Speedy's 1  SpeedyQ 2  Total 
     (in thousands) 
    Date of Acquisition:Aug 15, 2023  Apr 9, 2024     Aug 15, 2023  Apr 9, 2024    
    Revenues:                 
    Fuel revenue$4,894  $14,222  $19,116  $14,248  $27,578  $41,826 
    Merchandise revenue 2,668   7,512   10,180   7,577   14,250   21,827 
    Other revenues, net 50   271   321   156   498   654 
    Total revenues 7,612   22,005   29,617   21,981   42,326   64,307 
    Operating expenses:                 
    Fuel costs 4,400   12,466   16,866   12,873   24,280   37,153 
    Merchandise costs 1,713   5,363   7,076   4,806   10,236   15,042 
    Site operating expenses 1,195   3,329   4,524   3,307   6,387   9,694 
    Total operating expenses 7,308   21,158   28,466   20,986   40,903   61,889 
    Operating income 304   847   1,151  $995  $1,423  $2,418 
    Intercompany charges by GPMP 3 79   212   291   229   405   634 
    Operating income, as adjusted$383  $1,059  $1,442  $1,224  $1,828  $3,052 
    Fuel gallons sold 1,590   4,240   5,830   4,593   8,097   12,690 
    Fuel contribution 4$573  $1,968  $2,541  $1,604  $3,703  $5,307 
    Merchandise contribution 5$955  $2,149  $3,104  $2,771  $4,014  $6,785 
    Merchandise margin 6 35.8%  28.6%     36.6%  28.2%   
                      
    1 Acquisition of seven Speedy's retail stores. 
                      
    2 Acquisition of 21 SpeedyQ retail stores. 
                      
    3 Represents the estimated fixed margin paid to GPMP for the cost of fuel. 
                      
    4 Calculated as fuel revenue less fuel costs; excludes the estimated fixed margin paid to GPMP for the cost of fuel. 
                      
    5 Calculated as merchandise revenue less merchandise costs. 
                      
    6 Calculated as merchandise contribution divided by merchandise revenue. 


    Wholesale Segment

     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
     2024  2023  2024  2023 
     (in thousands) 
    Revenues:           
    Fuel revenue$720,646  $843,891  $2,147,853  $2,339,878 
    Other revenues, net 6,751   6,265   20,459   18,866 
    Total revenues 727,397   850,156   2,168,312   2,358,744 
    Operating expenses:           
    Fuel costs 709,408   830,121   2,115,367   2,305,098 
    Site operating expenses 9,817   10,009   28,682   29,303 
    Total operating expenses 719,225   840,130   2,144,049   2,334,401 
    Operating income 8,172  $10,026  $24,263  $24,343 
    Intercompany charges by GPMP 1 12,122   12,559   35,590   36,528 
    Operating income, as adjusted$20,294  $22,585  $59,853  $60,871 
                
    1 Represents the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel. 


    Fleet Fueling Segment

     For the Three Months
    Ended September 30,    		  For the Nine Months
    Ended September 30,    		 
     2024  2023  2024  2023 
     (in thousands) 
    Revenues:           
    Fuel revenue$125,933  $145,496  $398,266  $394,136 
    Other revenues, net 2,335   2,575   7,004   5,202 
    Total revenues 128,268   148,071   405,270   399,338 
    Operating expenses:           
    Fuel costs 111,554   133,037   355,761   356,703 
    Site operating expenses 5,876   6,206   18,861   16,039 
    Total operating expenses 117,430   139,243   374,622   372,742 
    Operating income 10,838   8,828   30,648   26,596 
    Intercompany charges by GPMP 1 1,802   1,832   5,452   5,077 
    Operating income, as adjusted$12,640  $10,660  $36,100  $31,673 
                
    1 Represents the estimated fixed fee paid to GPMP for the cost of fuel. 

    Primary Logo

Опубликовать