Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting

11. 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 defines segment earnings as operating income.

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 Company operated 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 primarily includes its sale and supply of fuel to GPM and its subsidiaries related to substantially all of its 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 to sites in the fleet fueling segment and certain Company sites which are not supplied by GPMP (currently 5.0 cents per gallon sold). GPMP also supplies fuel to a small number of dealers and bulk and spot purchasers.

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 Company revised the composition of the “All Other” segment in the third quarter of 2022 in conjunction with the closing of the Quarles Acquisition.

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 not assigned to any particular segment, but rather, managed 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 GPM and substantially all of its sites that sell fuel (both in the retail and wholesale segments) and charges by GPMP to sites that sell fuel in the fleet fueling segment and certain Company sites 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, 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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,472,316

 

 

 

6,241

 

 

 

1,478,557

 

Total revenues from reportable
  segments

 

 

1,612,580

 

 

 

850,156

 

 

 

148,071

 

 

 

1,473,613

 

 

 

16,191

 

 

 

4,100,611

 

Operating income

 

 

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

)

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

118,003

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended September 30, 2022

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,028,323

 

 

$

827,436

 

 

$

120,813

 

 

$

1,437

 

 

$

1,565

 

 

$

1,979,574

 

Merchandise revenue

 

 

445,822

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

445,822

 

Other revenues, net

 

 

16,651

 

 

 

5,693

 

 

 

923

 

 

 

261

 

 

 

723

 

 

 

24,251

 

Total revenues from external customers

 

 

1,490,796

 

 

 

833,129

 

 

 

121,736

 

 

 

1,698

 

 

 

2,288

 

 

 

2,449,647

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,445,072

 

 

 

857

 

 

 

1,445,929

 

Total revenues from reportable
  segments

 

 

1,490,796

 

 

 

833,129

 

 

 

121,736

 

 

 

1,446,770

 

 

 

3,145

 

 

 

3,895,576

 

Operating income

 

 

84,849

 

 

 

10,459

 

 

 

6,629

 

 

 

23,388

 

 

 

245

 

 

 

125,570

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

 

 

 

(3,209

)

 

 

—

 

 

 

(3,209

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(44

)

 

 

(44

)

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

122,317

 

 

 

 

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,981,724

 

 

 

13,844

 

 

 

3,995,568

 

Total revenues from reportable
  segments

 

 

4,393,819

 

 

 

2,358,744

 

 

 

399,338

 

 

 

3,985,266

 

 

 

37,972

 

 

 

11,175,139

 

Operating income

 

 

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

)

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

307,515

 

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Nine Months Ended September 30, 2022

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,000,839

 

 

$

2,521,567

 

 

$

120,813

 

 

$

4,170

 

 

$

1,565

 

 

$

5,648,954

 

Merchandise revenue

 

 

1,244,558

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,244,558

 

Other revenues, net

 

 

49,642

 

 

 

17,148

 

 

 

923

 

 

 

773

 

 

 

723

 

 

 

69,209

 

Total revenues from external customers

 

 

4,295,039

 

 

 

2,538,715

 

 

 

121,736

 

 

 

4,943

 

 

 

2,288

 

 

 

6,962,721

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,459,036

 

 

 

1,461

 

 

 

4,460,497

 

Total revenues from reportable
  segments

 

 

4,295,039

 

 

 

2,538,715

 

 

 

121,736

 

 

 

4,463,979

 

 

 

3,749

 

 

 

11,423,218

 

Operating income

 

 

202,375

 

 

 

27,658

 

 

 

6,629

 

 

 

65,794

 

 

 

849

 

 

 

303,305

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

 

 

 

(7,473

)

 

 

—

 

 

 

(7,473

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

177

 

 

 

177

 

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

(7

)

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

296,002

 

 

A reconciliation of total revenues from reportable segments to total revenues on the condensed consolidated statements of operations was as follows:

 

 

 

For the Three Months
Ended September 30,

 

 

For the Nine Months
Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Total revenues from segments

 

$

4,100,611

 

 

$

3,895,576

 

 

$

11,175,139

 

 

$

11,423,218

 

Elimination of inter-segment revenues

 

 

(1,478,557

)

 

 

(1,445,929

)

 

 

(3,995,568

)

 

 

(4,460,497

)

Total revenues

 

$

2,622,054

 

 

$

2,449,647

 

 

$

7,179,571

 

 

$

6,962,721

 

 

A reconciliation of net income from reportable segments to net income on the condensed consolidated statements of operations was as follows:

 

 

 

For the Three Months
Ended September 30,

 

 

For the Nine Months
Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Net income from segments

 

$

118,003

 

 

$

122,317

 

 

$

307,515

 

 

$

296,002

 

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

 

 

 

Store operating expenses

 

 

(3,760

)

 

 

576

 

 

 

(10,041

)

 

 

1,907

 

General and administrative expenses

 

 

(43,262

)

 

 

(35,245

)

 

 

(124,785

)

 

 

(98,521

)

Depreciation and amortization

 

 

(31,872

)

 

 

(24,218

)

 

 

(89,424

)

 

 

(69,523

)

Other expenses, net

 

 

(3,885

)

 

 

(951

)

 

 

(11,561

)

 

 

(3,269

)

Interest and other financial expenses, net

 

 

(5,743

)

 

 

(16,587

)

 

 

(27,415

)

 

 

(36,241

)

Income tax expense

 

 

(7,993

)

 

 

(20,898

)

 

 

(10,849

)

 

 

(31,237

)

Net income

 

$

21,488

 

 

$

24,994

 

 

$

33,440

 

 

$

59,118