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, 2021

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 condensed consolidated financial statements.


	Retail		Wholesale		GPMP			All Other			Total
For the Three Months Ended June 30, 2021	(in thousands)
Revenues
Fuel revenue	$	768,716	$	690,521	$	1,526		$	—		$	1,460,763
Merchandise revenue		426,365		—		—			—			426,365
Other revenues, net		17,252		5,212		264			—			22,728
Total revenues from external customers		1,212,333		695,733		1,790			—			1,909,856
Inter-segment		—		—		1,092,926			317			1,093,243
Total revenues from reportable segments		1,212,333		695,733		1,094,716			317			3,003,099
Operating income		71,215		5,992		23,610			317			101,134
Interest and financial expenses, net						(3,859	)		—			(3,859	)
Income tax expense									(55	)		(55	)
Income from equity investment									26			26
Net income from reportable segments											$	97,246

For the Three Months Ended June 30, 2020
Revenues
Fuel revenue	$	385,519	$	21,281	$	712		$	—		$	407,512
Merchandise revenue		391,697		—		—			—			391,697
Other revenues, net		13,615		1,307		179			—			15,101
Total revenues from external customers		790,831		22,588		891			—			814,310
Inter-segment		—		—		230,178			—			230,178
Total revenues from reportable segments		790,831		22,588		231,069			—			1,044,488
Operating income		76,767		780		7,284			—			84,831
Interest and financial expenses, net						(921	)		—			(921	)
Income tax expense									(43	)		(43	)
Loss from equity investment									(178	)		(178	)
Net income from reportable segments											$	83,689


	Retail		Wholesale		GPMP			All Other			Total
For the Six Months Ended June 30, 2021	(in thousands)
Revenues
Fuel revenue	$	1,345,020	$	1,216,009	$	2,681		$	—		$	2,563,710
Merchandise revenue		785,646		—		—			—			785,646
Other revenues, net		34,229		10,151		519			—			44,899
Total revenues from external customers		2,164,895		1,226,160		3,200			—			3,394,255
Inter-segment		—		—		1,912,393			634			1,913,027
Total revenues from reportable segments		2,164,895		1,226,160		1,915,593			634			5,307,282
Operating income		111,562		8,300		43,733			634			164,229
Interest and financial expenses, net						(7,700	)		—			(7,700	)
Income tax expense									(111	)		(111	)
Income from equity investment									20			20
Net income from reportable segments											$	156,438

For the Six Months Ended June 30, 2020
Revenues
Fuel revenue	$	918,405	$	50,219	$	1,929		$	—		$	970,553
Merchandise revenue		715,376		—		—			—			715,376
Other revenues, net		25,315		2,590		394			—			28,299
Total revenues from external customers		1,659,096		52,809		2,323			—			1,714,228
Inter-segment		—		—		609,303			2,378			611,681
Total revenues from reportable segments		1,659,096		52,809		611,626			2,378			2,325,909
Operating income		98,178		1,058		16,070			2,378			117,684
Interest and financial (expenses) income, net						(1,768	)		23			(1,745	)
Income tax expense									(205	)		(205	)
Loss from equity investment									(411	)		(411	)
Net income from reportable segments											$	115,323

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 is as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
	(in thousands)
Total revenues from reportable segments	$	3,003,099		$	1,044,488		$	5,307,282		$	2,325,909
Other revenues, net		(42	)		(35	)		(85	)		(73	)
Elimination of inter-segment revenues		(1,093,243	)		(230,178	)		(1,913,027	)		(611,681	)
Total revenues	$	1,909,814		$	814,275		$	3,394,170		$	1,714,155

Schedule of Reconciliation of Net Income from Reportable Segments to Net (Loss) Income

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


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
	(in thousands)
Net income from reportable segments	$	97,246		$	83,689		$	156,438		$	115,323
Amounts not allocated to segments:
Other revenues, net		(42	)		(35	)		(85	)		(73	)
Store operating expenses		675			(801	)		1,252			(1,693	)
General and administrative expenses		(31,068	)		(19,582	)		(57,070	)		(37,707	)
Depreciation and amortization		(23,431	)		(14,970	)		(45,830	)		(30,198	)
Other expenses, net		(1,195	)		(1,733	)		(2,867	)		(5,909	)
Interest and other financial expenses, net		(8,455	)		(11,592	)		(33,548	)		(19,797	)
Income tax expense		(8,157	)		(2,467	)		(7,379	)		(294	)
Net income	$	25,573		$	32,509		$	10,911		$	19,652