Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.24.3
Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting

12. Segment Reporting

The reportable segments were determined based on information reviewed by the chief operating decision maker for operational decision-making purposes, and the segment information is prepared on the same basis that the Company’s chief operating decision maker reviews such financial information. The Company’s reportable segments are retail, wholesale, fleet fueling and GPMP. The Company’s chief operating decision maker (“CODM”) utilizes operating income from each segment to assess its operating performance and to make decisions about allocating resources to each segment.

The retail segment includes the operation of a chain of retail stores, which includes convenience stores selling fuel products and other merchandise to retail customers. At its retail convenience stores, the Company owns the merchandise and fuel inventory and employs personnel to manage the store.

The wholesale segment supplies fuel to dealers, sub-wholesalers and bulk and spot purchasers, on either a cost plus or consignment basis. For consignment arrangements, the Company retains ownership of the fuel inventory at the site, is responsible for the pricing of the fuel to the end consumer, and shares the gross profit with the dealers.

The fleet fueling segment includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations), and commissions from the sales of fuel using proprietary fuel cards that provide customers access to a nationwide network of fueling sites.

The GPMP segment includes GPMP and includes its sale and supply of fuel to substantially all of GPM’s sites that sell fuel in the retail and wholesale segments, at GPMP’s cost of fuel (including taxes and transportation) plus a fixed margin (currently 5.0 cents

per gallon), and charges a fixed fee primarily to sites in the fleet fueling segment which are not supplied by GPMP (currently 5.0 cents per gallon sold). GPMP also supplies fuel to a limited number of dealers.

The “All Other” segment includes the results of non-reportable segments which do not meet both quantitative and qualitative criteria as defined under ASC 280, Segment Reporting.

The majority of general and administrative expenses, depreciation and amortization, net other expenses, net interest and other financial expenses, income taxes and minor other income items including intercompany operating leases are not allocated to the segments.

With the exception of goodwill, assets and liabilities relevant to the reportable segments are generally not assigned to any particular segment, but rather, managed and reviewed by the CODM at the consolidated level. All reportable segment revenues were generated from sites within the U.S. and substantially all of the Company’s assets were within the U.S.

Inter-segment transactions primarily included the distribution of fuel by GPMP to substantially all of GPM’s sites that sell fuel (both in the retail and wholesale segments) and charges by GPMP primarily to sites that sell fuel in the fleet fueling segment which are not supplied by GPMP. The effect of these inter-segment transactions was eliminated in the condensed consolidated financial statements.

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended September 30, 2024

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

929,783

 

 

$

720,646

 

 

$

125,933

 

 

$

822

 

 

$

6,687

 

 

$

1,783,871

 

Merchandise revenue

 

 

469,616

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

469,616

 

Other revenues, net

 

 

16,082

 

 

 

6,751

 

 

 

2,335

 

 

 

209

 

 

 

372

 

 

 

25,749

 

Total revenues from external
  customers

 

$

1,415,481

 

 

$

727,397

 

 

$

128,268

 

 

$

1,031

 

 

$

7,059

 

 

$

2,279,236

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,188,188

 

 

$

5,132

 

 

$

1,193,320

 

Operating income (loss) from
  segments

 

$

71,022

 

 

$

8,172

 

 

$

10,838

 

 

$

25,576

 

 

$

(322

)

 

$

115,286

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

$

(8,590

)

 

 

 

 

$

(8,590

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

29

 

 

$

29

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended September 30, 2023

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,086,405

 

 

$

843,891

 

 

$

145,496

 

 

$

1,044

 

 

$

9,556

 

 

$

2,086,392

 

Merchandise revenue

 

 

506,425

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

506,425

 

Other revenues, net

 

 

19,750

 

 

 

6,265

 

 

 

2,575

 

 

 

253

 

 

 

394

 

 

 

29,237

 

Total revenues from external
  customers

 

$

1,612,580

 

 

$

850,156

 

 

$

148,071

 

 

$

1,297

 

 

$

9,950

 

 

$

2,622,054

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,472,316

 

 

$

6,241

 

 

$

1,478,557

 

Operating income (loss) from
  segments

 

$

81,504

 

 

$

10,026

 

 

$

8,828

 

 

$

27,016

 

 

$

(521

)

 

$

126,853

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

$

(8,836

)

 

 

 

 

$

(8,836

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(14

)

 

$

(14

)

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Nine Months Ended September 30, 2024

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

2,730,583

 

 

$

2,147,853

 

 

$

398,266

 

 

$

3,017

 

 

$

23,015

 

 

$

5,302,734

 

Merchandise revenue

 

 

1,358,519

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,358,519

 

Other revenues, net

 

 

49,496

 

 

 

20,459

 

 

 

7,004

 

 

 

638

 

 

 

1,003

 

 

 

78,600

 

Total revenues from external
  customers

 

$

4,138,598

 

 

$

2,168,312

 

 

$

405,270

 

 

$

3,655

 

 

$

24,018

 

 

$

6,739,853

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

3,573,599

 

 

$

15,271

 

 

$

3,588,870

 

Operating income (loss) from
  segments

 

$

178,612

 

 

$

24,263

 

 

$

30,648

 

 

$

74,659

 

 

$

(707

)

 

$

307,475

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

 

 

$

(23,701

)

 

 

 

 

$

(23,701

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

79

 

 

$

79

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Nine Months Ended September 30, 2023

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

2,945,243

 

 

$

2,339,878

 

 

$

394,136

 

 

$

2,842

 

 

$

23,057

 

 

$

5,705,156

 

Merchandise revenue

 

 

1,391,274

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,391,274

 

Other revenues, net

 

 

57,302

 

 

 

18,866

 

 

 

5,202

 

 

 

700

 

 

 

1,071

 

 

 

83,141

 

Total revenues from external
  customers

 

$

4,393,819

 

 

$

2,358,744

 

 

$

399,338

 

 

$

3,542

 

 

$

24,128

 

 

$

7,179,571

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

3,981,724

 

 

$

13,844

 

 

$

3,995,568

 

Operating income (loss) from
  segments

 

$

200,992

 

 

$

24,343

 

 

$

26,596

 

 

$

76,646

 

 

$

(59

)

 

$

328,518

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

 

 

$

(20,926

)

 

 

 

 

$

(20,926

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(77

)

 

$

(77

)

 

A reconciliation of operating income from reportable segments to consolidated income before income taxes on the condensed consolidated statements of operations is as follows:

 

 

 

For the Three Months
Ended September 30,

 

 

For the Nine Months
Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Operating income from reportable segments

 

$

115,608

 

 

$

127,374

 

 

$

308,182

 

 

$

328,577

 

All other operating loss

 

 

(322

)

 

 

(521

)

 

 

(707

)

 

 

(59

)

Interest and other financial expenses, net

 

 

(8,590

)

 

 

(8,836

)

 

 

(23,701

)

 

 

(20,926

)

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

 

 

 

Site operating expenses

 

 

(3,497

)

 

 

(3,760

)

 

 

(10,429

)

 

 

(10,041

)

General and administrative expenses

 

 

(37,773

)

 

 

(43,262

)

 

 

(120,605

)

 

 

(124,785

)

Depreciation and amortization

 

 

(31,288

)

 

 

(31,872

)

 

 

(92,894

)

 

 

(89,424

)

Other expenses, net

 

 

(1,159

)

 

 

(3,885

)

 

 

(3,896

)

 

 

(11,561

)

Interest and other financial expenses, net

 

 

(15,034

)

 

 

(5,743

)

 

 

(23,747

)

 

 

(27,415

)

Income before income taxes

 

$

17,945

 

 

$

29,495

 

 

$

32,203

 

 

$

44,366