ARKO Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting (Tables)

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2023

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

Schedule of Reconciliation of Total Revenues from Reportable Segments to Total Revenues

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

Schedule of Reconciliation of Net Income from Reportable Segments to Net Income (Loss)

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