Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.1
Segment Reporting
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

9. 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 our chief operating decision maker reviews such financial information. The Company’s reporting segments are the retail segment, the wholesale segment and the GPMP segment. 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 independent dealers, sub-wholesalers and bulk 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 independent outside operators.

The GPMP segment includes GPM Petroleum LP (“GPMP”) and primarily includes the sale and supply of fuel to GPM and its subsidiaries selling fuel (both in the Retail and Wholesale segments) at GPMP’s cost of fuel (currently including taxes and certain transportation) plus a fixed margin (4.5 cents per gallon prior to October 1, 2020 and effective October 1, 2020 through September 30, 2021, 5.0 cents per gallon) and the supply of fuel to a small number of independent outside operators and bulk purchasers.

The “All Other” segment includes the results of non-reportable segments which do not meet both quantitative and qualitive 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 financing expenses and income taxes are not allocated to the segments, as well as minor other income items including intercompany operating leases.

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 segment revenues were generated from sites within the US and substantially all assets were within the US.

Inter-segment transactions primarily included the distribution of fuel by GPMP to GPM and its subsidiaries selling fuel (both in the Retail and Wholesale segments). The effect of these inter-segment transactions was eliminated in the consolidated financial statements.

 

For the three months ended March 31, 2021

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

576,304

 

 

$

525,488

 

 

$

1,155

 

 

$

—

 

 

$

1,102,947

 

Merchandise revenue

 

 

359,281

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

359,281

 

Other revenues, net

 

 

16,977

 

 

 

4,939

 

 

 

255

 

 

 

—

 

 

 

22,171

 

Total revenues from external customers

 

 

952,562

 

 

 

530,427

 

 

 

1,410

 

 

 

—

 

 

 

1,484,399

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

819,467

 

 

 

317

 

 

 

819,784

 

Total revenues from reportable segments

 

 

952,562

 

 

 

530,427

 

 

 

820,877

 

 

 

317

 

 

 

2,304,183

 

Operating income

 

 

40,347

 

 

 

2,308

 

 

 

20,123

 

 

 

317

 

 

 

63,095

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(3,841

)

 

 

—

 

 

 

(3,841

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(56

)

 

 

(56

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

(6

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

59,192

 

 

For the three months ended March 31, 2020

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

532,886

 

 

$

28,938

 

 

$

1,217

 

 

$

—

 

 

$

563,041

 

Merchandise revenue

 

 

323,679

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

323,679

 

Other revenues, net

 

 

11,700

 

 

 

1,283

 

 

 

215

 

 

 

—

 

 

 

13,198

 

Total revenues from external customers

 

 

868,265

 

 

 

30,221

 

 

 

1,432

 

 

 

—

 

 

 

899,918

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

379,125

 

 

 

2,378

 

 

 

381,503

 

Total revenues from reportable segments

 

 

868,265

 

 

 

30,221

 

 

 

380,557

 

 

 

2,378

 

 

 

1,281,421

 

Operating income

 

 

21,411

 

 

 

278

 

 

 

8,786

 

 

 

2,378

 

 

 

32,853

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(847

)

 

 

23

 

 

 

(824

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

(162

)

 

 

(162

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

(233

)

 

 

(233

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

31,634

 

 

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,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Total revenues from reportable segments

 

$

2,304,183

 

 

$

1,281,421

 

Other revenues, net

 

 

(43

)

 

 

(38

)

Elimination of inter-segment revenues

 

 

(819,784

)

 

 

(381,503

)

Total revenues

 

$

1,484,356

 

 

$

899,880

 

 

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

 

 

 

For the three months ended
March 31,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Net income from reportable segments

 

$

59,192

 

 

$

31,634

 

Amounts not allocated to segments:

 

 

 

 

 

 

Other revenues, net

 

 

(43

)

 

 

(38

)

Store operating expenses

 

 

577

 

 

 

(892

)

General and administrative expenses

 

 

(26,002

)

 

 

(18,125

)

Depreciation and amortization

 

 

(22,399

)

 

 

(15,228

)

Other expenses, net

 

 

(1,672

)

 

 

(4,176

)

Interest and other financial expenses, net

 

 

(25,093

)

 

 

(8,205

)

Income tax benefit

 

 

778

 

 

 

2,173

 

Net loss

 

$

(14,662

)

 

$

(12,857

)