Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.24.1.u1
Segment Reporting
 3 Months Ended
Mar. 31, 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 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 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 and bulk 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 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 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 March 31, 2024

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

824,428

 

 

$

664,514

 

 

$

132,193

 

 

$

1,205

 

 

$

8,992

 

 

$

1,631,332

 

Merchandise revenue

 

 

414,655

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

414,655

 

Other revenues, net

 

 

16,679

 

 

 

6,858

 

 

 

2,385

 

 

 

207

 

 

 

338

 

 

 

26,467

 

Total revenues from external customers

 

 

1,255,762

 

 

 

671,372

 

 

 

134,578

 

 

 

1,412

 

 

 

9,330

 

 

 

2,072,454

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,102,541

 

 

 

5,253

 

 

 

1,107,794

 

Total revenues from segments

 

 

1,255,762

 

 

 

671,372

 

 

 

134,578

 

 

 

1,103,953

 

 

 

14,583

 

 

 

3,180,248

 

Operating income (loss)

 

 

33,767

 

 

 

6,960

 

 

 

7,977

 

 

 

23,327

 

 

 

(2

)

 

 

72,029

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

 

 

 

(6,528

)

 

 

—

 

 

 

(6,528

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

 

 

 

22

 

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

65,523

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended March 31, 2023

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

843,473

 

 

$

684,848

 

 

$

127,494

 

 

$

741

 

 

$

5,108

 

 

$

1,661,664

 

Merchandise revenue

 

 

400,408

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

400,408

 

Other revenues, net

 

 

18,555

 

 

 

6,491

 

 

 

951

 

 

 

170

 

 

 

257

 

 

 

26,424

 

Total revenues from external
  customers

 

 

1,262,436

 

 

 

691,339

 

 

 

128,445

 

 

 

911

 

 

 

5,365

 

 

 

2,088,496

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,142,622

 

 

 

3,058

 

 

 

1,145,680

 

Total revenues from segments

 

 

1,262,436

 

 

 

691,339

 

 

 

128,445

 

 

 

1,143,533

 

 

 

8,423

 

 

 

3,234,176

 

Operating income

 

 

41,631

 

 

 

7,550

 

 

 

8,424

 

 

 

22,622

 

 

 

324

 

 

 

80,551

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

 

 

 

(5,250

)

 

 

—

 

 

 

(5,250

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36

)

 

 

(36

)

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

75,265

 

 

 

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 March 31,

 

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Total revenues from segments

 

$

3,180,248

 

 

$

3,234,176

 

Elimination of inter-segment revenues

 

 

(1,107,794

)

 

 

(1,145,680

)

Total revenues

 

$

2,072,454

 

 

$

2,088,496

 

 

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 March 31,

 

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Net income from segments

 

$

65,523

 

 

$

75,265

 

Amounts not allocated to segments:

 

 

 

 

 

 

Site operating expenses

 

 

(3,350

)

 

 

(2,677

)

General and administrative expenses

 

 

(41,197

)

 

 

(39,644

)

Depreciation and amortization

 

 

(29,872

)

 

 

(26,557

)

Other expenses, net

 

 

(2,476

)

 

 

(2,720

)

Interest and other financial income (expenses), net

 

 

4,071

 

 

 

(8,352

)

Income tax benefit

 

 

6,707

 

 

 

2,158

 

Net loss

 

$

(594

)

 

$

(2,527

)