Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.24.2.u1
Segment Reporting
 6 Months Ended
Jun. 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 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 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 June 30, 2024

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

976,372

 

 

$

762,693

 

 

$

140,140

 

 

$

990

 

 

$

7,336

 

 

$

1,887,531

 

Merchandise revenue

 

 

474,248

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

474,248

 

Other revenues, net

 

 

16,735

 

 

 

6,850

 

 

 

2,284

 

 

 

222

 

 

 

293

 

 

 

26,384

 

Total revenues from external
  customers

 

$

1,467,355

 

 

$

769,543

 

 

$

142,424

 

 

$

1,212

 

 

$

7,629

 

 

$

2,388,163

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,282,870

 

 

$

4,886

 

 

$

1,287,756

 

Operating income (loss) from
  segments

 

$

73,823

 

 

$

9,131

 

 

$

11,833

 

 

$

25,756

 

 

$

(383

)

 

$

120,160

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

$

(8,583

)

 

 

 

 

$

(8,583

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

28

 

 

$

28

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended June 30, 2023

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,015,365

 

 

$

811,139

 

 

$

121,146

 

 

$

1,057

 

 

$

8,393

 

 

$

1,957,100

 

Merchandise revenue

 

 

484,561

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

484,561

 

Other revenues, net

 

 

18,997

 

 

 

6,110

 

 

 

1,676

 

 

 

277

 

 

 

420

 

 

 

27,480

 

Total revenues from external
  customers

 

$

1,518,923

 

 

$

817,249

 

 

$

122,822

 

 

$

1,334

 

 

$

8,813

 

 

$

2,469,141

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,366,786

 

 

$

4,545

 

 

$

1,371,331

 

Operating income from segments

 

$

77,857

 

 

$

6,767

 

 

$

9,344

 

 

$

27,008

 

 

$

138

 

 

$

121,114

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

$

(6,840

)

 

 

 

 

$

(6,840

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(27

)

 

$

(27

)

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Six Months Ended June 30, 2024

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,800,800

 

 

$

1,427,207

 

 

$

272,333

 

 

$

2,195

 

 

$

16,328

 

 

$

3,518,863

 

Merchandise revenue

 

 

888,903

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

888,903

 

Other revenues, net

 

 

33,414

 

 

 

13,708

 

 

 

4,669

 

 

 

429

 

 

 

631

 

 

 

52,851

 

Total revenues from external
  customers

 

$

2,723,117

 

 

$

1,440,915

 

 

$

277,002

 

 

$

2,624

 

 

$

16,959

 

 

$

4,460,617

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,385,411

 

 

$

10,139

 

 

$

2,395,550

 

Operating income (loss) from
  segments

 

$

107,590

 

 

$

16,091

 

 

$

19,810

 

 

$

49,083

 

 

$

(385

)

 

$

192,189

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

$

(15,111

)

 

 

 

 

$

(15,111

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

50

 

 

$

50

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Six Months Ended June 30, 2023

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,858,838

 

 

$

1,495,987

 

 

$

248,640

 

 

$

1,798

 

 

$

13,501

 

 

$

3,618,764

 

Merchandise revenue

 

 

884,849

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

884,849

 

Other revenues, net

 

 

37,552

 

 

 

12,601

 

 

 

2,627

 

 

 

447

 

 

 

677

 

 

 

53,904

 

Total revenues from external
  customers

 

$

2,781,239

 

 

$

1,508,588

 

 

$

251,267

 

 

$

2,245

 

 

$

14,178

 

 

$

4,557,517

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,509,408

 

 

$

7,603

 

 

$

2,517,011

 

Operating income from segments

 

$

119,488

 

 

$

14,317

 

 

$

17,768

 

 

$

49,630

 

 

$

462

 

 

$

201,665

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

$

(12,090

)

 

 

 

 

$

(12,090

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(63

)

 

$

(63

)

 

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 June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Operating income from reportable segments

 

$

120,543

 

 

$

120,976

 

 

$

192,574

 

 

$

201,203

 

All other operating (loss) income

 

 

(383

)

 

 

138

 

 

 

(385

)

 

 

462

 

Interest and other financial expenses, net

 

 

(8,583

)

 

 

(6,840

)

 

 

(15,111

)

 

 

(12,090

)

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

 

 

 

Site operating expenses

 

 

(3,582

)

 

 

(3,604

)

 

 

(6,932

)

 

 

(6,281

)

General and administrative expenses

 

 

(41,635

)

 

 

(41,879

)

 

 

(82,832

)

 

 

(81,523

)

Depreciation and amortization

 

 

(31,734

)

 

 

(30,995

)

 

 

(61,606

)

 

 

(57,552

)

Other expenses, net

 

 

(261

)

 

 

(4,956

)

 

 

(2,737

)

 

 

(7,676

)

Interest and other financial expenses, net

 

 

(12,784

)

 

 

(13,320

)

 

 

(8,713

)

 

 

(21,672

)

Income before income taxes

 

$

21,581

 

 

$

19,520

 

 

$

14,258

 

 

$

14,871