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)

6 Months Ended

Jun. 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. 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

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 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

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 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