Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.2
Segment Reporting
 6 Months Ended
Jun. 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 qualitive 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. 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, 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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,366,786

 

 

 

4,545

 

 

 

1,371,331

 

Total revenues from reportable
  segments

 

 

1,518,923

 

 

 

817,249

 

 

 

122,822

 

 

 

1,368,120

 

 

 

13,358

 

 

 

3,840,472

 

Operating income

 

 

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

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

114,247

 

 

 

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended June 30, 2022

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,117,849

 

 

$

966,434

 

 

$

1,571

 

 

$

—

 

 

$

2,085,854

 

Merchandise revenue

 

 

431,751

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

431,751

 

Other revenues, net

 

 

16,667

 

 

 

5,733

 

 

 

258

 

 

 

—

 

 

 

22,658

 

Total revenues from external customers

 

 

1,566,267

 

 

 

972,167

 

 

 

1,829

 

 

 

—

 

 

 

2,540,263

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

1,738,243

 

 

 

302

 

 

 

1,738,545

 

Total revenues from reportable
  segments

 

 

1,566,267

 

 

 

972,167

 

 

 

1,740,072

 

 

 

302

 

 

 

4,278,808

 

Operating income

 

 

71,847

 

 

 

9,786

 

 

 

21,799

 

 

 

302

 

 

 

103,734

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(1,819

)

 

 

—

 

 

 

(1,819

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

28

 

 

 

28

 

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

101,943

 

 

 

 

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,509,408

 

 

 

7,603

 

 

 

2,517,011

 

Total revenues from reportable
  segments

 

 

2,781,239

 

 

 

1,508,588

 

 

 

251,267

 

 

 

2,511,653

 

 

 

21,781

 

 

 

7,074,528

 

Operating income

 

 

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

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

189,512

 

 

 

 

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Six Months Ended June 30, 2022

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,972,516

 

 

$

1,694,131

 

 

$

2,733

 

 

$

—

 

 

$

3,669,380

 

Merchandise revenue

 

 

798,736

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

798,736

 

Other revenues, net

 

 

32,991

 

 

 

11,455

 

 

 

512

 

 

 

—

 

 

 

44,958

 

Total revenues from external customers

 

 

2,804,243

 

 

 

1,705,586

 

 

 

3,245

 

 

 

—

 

 

 

4,513,074

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

3,013,964

 

 

 

604

 

 

 

3,014,568

 

Total revenues from reportable
  segments

 

 

2,804,243

 

 

 

1,705,586

 

 

 

3,017,209

 

 

 

604

 

 

 

7,527,642

 

Operating income

 

 

117,526

 

 

 

17,199

 

 

 

42,406

 

 

 

604

 

 

 

177,735

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(4,264

)

 

 

—

 

 

 

(4,264

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

177

 

 

 

177

 

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

37

 

 

 

37

 

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

173,685

 

 

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 June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Total revenues from reportable segments

 

$

3,840,472

 

 

$

4,278,808

 

 

$

7,074,528

 

 

$

7,527,642

 

Elimination of inter-segment revenues

 

 

(1,371,331

)

 

 

(1,738,545

)

 

 

(2,517,011

)

 

 

(3,014,568

)

Total revenues

 

$

2,469,141

 

 

$

2,540,263

 

 

$

4,557,517

 

 

$

4,513,074

 

 

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 June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Net income from reportable segments

 

$

114,247

 

 

$

101,943

 

 

$

189,512

 

 

$

173,685

 

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

 

 

 

Store operating expenses

 

 

(3,604

)

 

 

747

 

 

 

(6,281

)

 

 

1,331

 

General and administrative expenses

 

 

(41,879

)

 

 

(32,197

)

 

 

(81,523

)

 

 

(63,276

)

Depreciation and amortization

 

 

(30,995

)

 

 

(22,511

)

 

 

(57,552

)

 

 

(45,305

)

Other expenses, net

 

 

(4,956

)

 

 

(1,197

)

 

 

(7,676

)

 

 

(2,318

)

Interest and other financial expenses, net

 

 

(13,320

)

 

 

(5,822

)

 

 

(21,672

)

 

 

(19,654

)

Income tax expense

 

 

(5,014

)

 

 

(9,157

)

 

 

(2,856

)

 

 

(10,339

)

Net income

 

$

14,479

 

 

$

31,806

 

 

$

11,952

 

 

$

34,124