ARKO Corp. Reports First Quarter 2025 Results
RICHMOND, Va., May 08, 2025 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) ("ARKO" or the "Company"), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Key Highlights (vs. Year-Ago Quarter) (1,2)
-- Net loss for the quarter was $12.7 million compared to a net loss of $0.6
million.
-- Adjusted EBITDA for the quarter was $30.9 million compared to $33.2
million.
-- Merchandise margin for the quarter increased to 33.2% compared to 32.5%.
-- Merchandise contribution for the quarter was $117.6 million compared to
$134.9 million; more than half of the merchandise contribution decline
for the quarter was associated with the Company's accretive dealerization
program.
-- Retail fuel margin for the quarter was 37.9 cents per gallon compared to
36.4 cents per gallon.
-- Retail fuel contribution for the quarter was $85.3 million compared to
$92.9 million; more than half of the retail fuel contribution decline for
the quarter was associated with the Company's accretive dealerization
program.
Other Key Highlights
-- As part of the Company's developing transformation plan, the Company
converted 59 retail stores to dealer sites during the three months ended
March 31, 2025. In April of 2025, the Company converted 18 additional
retail stores to dealer sites and plans to convert a meaningful number of
additional stores throughout 2025. The Company continues to expect that,
at scale, this channel optimization will yield a cumulative annualized
operating income benefit in excess of $20 million.
-- The Company advanced its store remodeling initiative, which is expected
to include an expanded and refined merchandise assortment with an
enhanced in-store experience and a focus on food. These remodels are
designed to elevate the customer experience through improved store layout
and convenience. The Company began construction of the first of its seven
planned pilot remodels in early May 2025 and expects to begin
construction on the second pilot remodel in mid-May 2025.
-- In the first quarter of 2025, the Company opened a new Dunkin' store and
a fastmarket$(R)$ location. Additionally, the Company expects to open four
NTI (new-to-industry) stores in the second half of 2025. Three of these
NTIs have started construction, with one store awaiting a final permit.
-- On March 12, 2025, the Company started its Fueling America's Future
campaign in its stores, centered around providing enrolled loyalty
customers with both value promotions inside the store and significant
discounts at the pump.
-- The Board declared a quarterly dividend of $0.03 per share of common
stock to be paid on May 30, 2025 to stockholders of record as of May 19,
2025.
(1) See Use of Non-GAAP Measures below.
(2) All figures for fuel costs, fuel contribution and fuel margin per gallon exclude the estimated fixed margin or fixed fee paid to the Company's wholesale fuel distribution subsidiary, GPM Petroleum LP ("GPMP") for the cost of fuel (intercompany charges by GPMP).
"Despite a pressured consumer environment, we effectively navigated ongoing macroeconomic headwinds in the first quarter," said Arie Kotler, Chairman, President and Chief Executive Officer of ARKO. "We delivered results above the midpoint of our guidance, underscoring our commitment to execution with discipline and remaining focused on what we can control. This quarter, we also faced incremental pressure from adverse weather conditions in January and February, which impacted sales and increased snow removal expenses across key regions, and from lapping of a leap day in the first quarter of the prior year. We also continued to advance key elements of our transformation strategy - converting company-operated retail stores to dealer sites, advancing our NTI store rollout, and enhancing customer engagement through food service and targeted loyalty initiatives both in-store and at the pump. We remain focused on executing across the business while keeping our long-term strategic priorities firmly in view."
Mr. Kotler continued: "As we move forward in 2025, we remain committed to driving shareholder returns. We repurchased 1.3 million shares during the first quarter, with substantially all of those repurchases executed in March. We are focused on using all available tools to support long-term value creation and taking a disciplined approach to capital deployment. These actions reflect our commitment to shareholders and represent a strategic and thoughtful path to delivering meaningful returns."
First Quarter 2025 Segment Highlights
Retail
For the Three Months
Ended March 31,
--------------------------
2025 2024
------------ --------
(in thousands)
Fuel gallons sold 225,063 255,464
Same store fuel gallons sold decrease (%)
(1) (6.2%) (6.7%)
Fuel contribution (2) $ 85,273 $ 92,933
Fuel margin, cents per gallon (3) 37.9 36.4
Same store fuel contribution (1,2) $ 83,027 $ 86,275
Same store merchandise sales decrease (%)
(1) (6.9%) (4.1%)
Same store merchandise sales excluding
cigarettes decrease (%) (1) (5.2%) (3.0%)
Merchandise revenue $ 354,485 $414,655
Merchandise contribution (4) $ 117,570 $134,918
Merchandise margin (5) 33.2% 32.5%
Same store merchandise contribution (1,4) $ 114,046 $120,666
Same store site operating expenses (1) $ 169,994 $172,325
(1) Same store is a common metric used in the convenience
store industry. The Company considers a store a same
store beginning in the first quarter in which the
store had a full quarter of activity in the prior
year. Refer to Use of Non-GAAP Measures below for
discussion of this measure.
(2) Calculated as fuel revenue less fuel costs; excludes
the estimated fixed margin or fixed fee paid to GPMP
for the cost of fuel.
(3) Calculated as fuel contribution divided by fuel
gallons sold.
(4) Calculated as merchandise revenue less merchandise
costs.
(5) Calculated as merchandise contribution divided
by merchandise revenue.
Merchandise contribution for the first quarter of 2025 decreased $17.3 million, or 12.9%, compared to the first quarter of 2024, while merchandise margin increased to 33.2% in the first quarter of 2025 compared to 32.5% in the prior year period. The decrease in merchandise contribution was due to a decrease of $12.8 million related to retail stores that were closed or converted to dealers in the trailing 12 month period and a decrease in same store merchandise contribution of $6.6 million, primarily caused by a decline in customer transactions reflecting the challenging macroeconomic environment as well as severe weather conditions in January and February 2025 in certain of the markets in which the Company operates. These decreases were partially offset by an increase in merchandise contribution of $1.8 million from the SpeedyQ acquisition that closed in April 2024. Merchandise contribution at same stores decreased in the first quarter of 2025 primarily due to lower contribution from several core destination categories and cigarettes.
Fuel contribution for the first quarter of 2025 decreased $7.7 million, or 8.2%, compared to the first quarter of 2024, with a same store fuel contribution decrease of $3.2 million attributable to gallon demand declines, reflecting the challenging macroeconomic environment as well as severe weather conditions in January and February 2025 in certain of the markets in which the Company operates. Fuel margin of 37.9 cents per gallon was up 1.5 cents per gallon compared to the first quarter of 2024. In addition, a decrease in retail fuel contribution of $5.8 million was related to retail stores that were closed or converted to dealers in the trailing 12 month period, partially offset by incremental fuel contribution from the SpeedyQ acquisition of approximately $1.3 million.
Wholesale
For the Three Months
Ended March 31,
------------------------
2025 2024
------------- ---------
(in thousands)
Fuel gallons sold -- fuel supply locations 191,077 186,731
Fuel gallons sold -- consignment agent
locations 36,515 37,504
Fuel contribution (1) -- fuel supply
locations $ 11,453 $ 11,562
Fuel contribution (1) -- consignment agent
locations $ 8,594 $ 9,168
Fuel margin, cents per gallon (2) -- fuel
supply locations 6.0 6.2
Fuel margin, cents per gallon (2) --
consignment agent locations 23.5 24.4
(1) Calculated as fuel revenue less fuel costs; excludes
the estimated fixed margin or fixed fee paid to GPMP
for the cost of fuel.
(2) Calculated as fuel contribution divided by fuel gallons sold. Note: Comparable wholesale sites exclude retail stores converted to dealers, until the first quarter in which these sites had a full quarter of wholesale activity in the prior year.
For the first quarter of 2025, wholesale operating income increased $0.3 million, compared to the first quarter of 2024. Additional operating income from retail sites converted to dealers in the trailing 12 month period more than offset reduced operating income at comparable wholesale sites.
Fuel contribution was $20.0 million for the first quarter of 2025 compared to $20.7 million for the first quarter of 2024. Fuel contribution for the first quarter of 2025 at fuel supply locations decreased by $0.1 million, and fuel contribution at consignment agent locations decreased by $0.6 million, as compared to the prior year period, with fuel margin decreases of 0.2 cents per gallon and 0.9 cents per gallon, respectively, due principally to lower volumes at comparable wholesale sites primarily due to severe weather conditions in January and February 2025 in certain of the markets in which the Company operates, which was partially offset by incremental contribution from retail stores converted to dealers. For the first quarter of 2025, other revenues, net increased by approximately $3.5 million, and site operating expenses increased by $2.5 million in each case as compared to the first quarter of 2024, resulting primarily from retail stores which converted to dealers in the trailing 12 month period.
Fleet Fueling
For the Three Months
Ended March 31,
------------------------
2025 2024
------------- ---------
(in thousands)
Fuel gallons sold -- proprietary cardlock
locations 31,918 33,449
Fuel gallons sold -- third-party cardlock
locations 3,175 3,199
Fuel contribution (1) -- proprietary
cardlock locations $ 14,706 $ 13,669
Fuel contribution (1) -- third-party
cardlock locations $ 596 $ 247
Fuel margin, cents per gallon (2) --
proprietary cardlock locations 46.1 40.9
Fuel margin, cents per gallon (2) --
third-party cardlock locations 18.7 7.7
(1) Calculated as fuel revenue less fuel costs; excludes
the estimated fixed fee paid to GPMP for the cost
of fuel.
(2) Calculated as fuel contribution divided by fuel
gallons sold.
Fuel contribution for the first quarter of 2025 increased by $1.4 million compared to the first quarter of 2024. At proprietary cardlocks, fuel contribution increased by $1.0 million, and fuel margin per gallon also increased for the first quarter of 2025 compared to the first quarter of 2024 primarily due to favorable diesel margins. At third-party cardlock locations, fuel contribution increased by $0.4 million, and fuel margin per gallon also increased for the first quarter of 2025 compared to the first quarter of 2024, primarily due to the closure of underperforming third-party locations.
Site Operating Expenses
For the three months ended March 31, 2025, convenience store operating expenses decreased $20.8 million, or 10.5%, compared to the prior year period primarily due to a decrease of $22.2 million from retail stores that were closed or converted to dealers and a decrease in same store operating expenses of $2.3 million, or 1.4%, related to lower personnel costs and credit card fees, partially offset by higher snow removal expenses resulting from severe weather conditions in certain of the markets in which the Company operates. These decreases were partially offset by $3.3 million of incremental expenses related to the SpeedyQ acquisition that closed in April 2024.
Liquidity and Capital Expenditures
As of March 31, 2025, the Company's total liquidity was approximately $847 million, consisting of approximately $265 million of cash and cash equivalents and approximately $582 million of availability under lines of credit. Outstanding debt was $880 million, resulting in net debt, excluding lease related financing liabilities, of approximately $615 million. Capital expenditures were approximately $27.4 million for the quarter ended March 31, 2025, including the purchase of a fee property, investments in NTI stores, EV chargers, upgrades to fuel dispensers and other investments in stores.
Quarterly Dividend and Share Repurchase Program
The Company's ability to return cash to its stockholders through its cash dividend program and share repurchase program is consistent with its capital allocation framework and reflects the Company's confidence in the strength of its cash generation ability and strong financial position.
The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on May 30, 2025 to stockholders of record as of May 19, 2025.
During the quarter, the Company repurchased approximately 1.3 million shares of common stock under its previously announced repurchase program for approximately $5.2 million, or an average price of $4.01 per share. There was approximately $20.5 million remaining under the share repurchase program as of March 31, 2025.
Company-Operated Retail Store Count and Segment Update
The following tables present certain information regarding changes in the retail, wholesale and fleet fueling segments for the periods presented:
For the Three Months
Ended March 31,
-----------------------
Retail Segment 2025 2024
----------- ---------
Number of sites at beginning of period 1,389 1,543
Newly opened or reopened sites 2 1
Company-controlled sites converted to
consignment or fuel supply locations, net (59) --
Sites closed, divested or converted to
rentals (3) (4)
---------- ---------
Number of sites at end of period 1,329 1,540
========== =========
For the Three Months
Ended March 31,
-----------------------
Wholesale Segment (1) 2025 2024
----------- ---------
Number of sites at beginning of period 1,922 1,825
Newly opened or reopened sites (2) 6 9
Consignment or fuel supply locations
converted
from Company-controlled sites, net 59 --
Closed or divested sites (26) (18)
---------- ---------
Number of sites at end of period 1,961 1,816
========== =========
(1) Excludes bulk and spot purchasers.
(2) Includes all signed fuel supply agreements irrespective
of fuel distribution commencement date.
For the Three Months
Ended March 31,
-------------------------
Fleet Fueling Segment 2025 2024
------------ -------
Number of sites at beginning of period 280 298
Newly opened or reopened sites 1 --
Closed or divested sites (1) (2)
----------- -------
Number of sites at end of period 280 296
=========== =======
Full Year and Second Quarter 2025 Guidance Range
The Company currently expects second quarter 2025 Adjusted EBITDA to range between $70 million and $80 million, with an assumed range of average total retail fuel margin from 42.5 to 44.5 cents per gallon. The Company is maintaining its full year 2025 Adjusted EBITDA range of $233 million to $253 million, with an assumed range of average total retail fuel margin from 40 to 42 cents per gallon.
The Company is not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with its stock price, as well as depreciation and amortization related to its capital allocation as part of its focus on accelerating organic growth.
Conference Call and Webcast Details
The Company will host a conference call today, May 8, 2025, to discuss these results at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 888-396-8049 or 416-764-8646.
A simultaneous, live webcast will also be available on the Investor Relations section of the Company's website at https://www.arkocorp.com/news-events/ir-calendar. The webcast will be archived for 30 days.
About ARKO Corp.
ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our highly recognizable Family of Community Brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which includes the operation of proprietary and third-party cardlock locations, and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.
Forward-Looking Statements
This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company's expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as "accretive," "anticipate," "aim," "believe," "continue," "could," "estimate," "expect, " "guidance," "intends," "may," "might," "plan," "possible," "potential, " "predict," "project," "should," "will," "would" and the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company's ability to maintain the listing of its common stock and warrants on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.
Use of Non-GAAP Measures
The Company discloses certain measures on a "same store basis," which is a non-GAAP measure. Information disclosed on a "same store basis" excludes the results of any store that is not a "same store" for the applicable period. A store is considered a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. The Company believes that this information provides greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States ("GAAP").
The Company defines EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition and divestiture costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures.
The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance.
EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be considered as a substitute for net income (loss) or any other financial measure presented in accordance with GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Because non-GAAP financial measures are not standardized, same store measures, EBITDA and Adjusted EBITDA, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company's use of these non-GAAP financial measures with those used by other companies.
Company Contact
Jordan Mann
ARKO Corp.
investors@gpminvestments.com
Investor Contact
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
ARKO@elevate-ir.com
Condensed Consolidated Statements of Operations
----------------------------------------------------
For the Three Months Ended March 31,
----------------------------------------------------
2025 2024
----------------------- -----------------------
(in thousands)
Revenues:
Fuel revenue $ 1,446,916 $ 1,631,332
Merchandise
revenue 354,485 414,655
Other revenues,
net 27,504 26,467
--- ------------------ -------------------
Total revenues 1,828,905 2,072,454
Operating expenses:
Fuel costs 1,325,056 1,502,302
Merchandise costs 236,915 279,737
Site operating
expenses 199,981 218,931
General and
administrative
expenses 41,613 42,158
Depreciation and
amortization 34,887 31,716
--- ------------------ -------------------
Total operating
expenses 1,838,452 2,074,844
--- ------------------ -------------------
Other expenses,
net 2,217 2,476
--- ------------------ -------------------
Operating loss (11,764) (4,866)
Interest and
other financial
income 9,475 22,014
Interest and
other financial
expenses (23,326) (24,471)
--- ------------------ -------------------
Loss before income
taxes (25,615) (7,323)
Income tax
benefit 12,922 6,707
Income from
equity
investment 21 22
--- ------------------ -------------------
Net loss
attributable to
ARKO Corp. $ (12,672) $ $(594.SI)$
--- ------------------ -------------------
Series A redeemable
preferred stock
dividends (1,418) (1,414)
--- ------------------ -------------------
Net loss
attributable to
common
shareholders $ (14,090) $ (2,008)
=== ================== ===================
Net loss per share
attributable to
common
shareholders --
basic and diluted $ (0.12) $ (0.02)
Weighted average
shares
outstanding:
Basic and diluted 115,883 117,275
Condensed Consolidated Balance Sheets
------------------------------------------------
March 31, 2025 December 31, 2024
----------------------- -------------------
(in thousands)
Assets
Current assets:
Cash and cash
equivalents $ 265,420 $ 261,758
Restricted cash 24,117 30,650
Short-term
investments 5,665 5,330
Trade receivables,
net 110,046 95,832
Inventory 220,650 231,225
Other current assets 93,332 97,413
--- ------------------ ---------------
Total current assets 719,230 722,208
Non-current assets:
Property and
equipment, net 744,524 747,548
Right-of-use assets
under operating
leases 1,366,100 1,386,244
Right-of-use assets
under financing
leases, net 155,360 157,999
Goodwill 299,973 299,973
Intangible assets,
net 176,755 182,355
Equity investment 3,029 3,009
Deferred tax asset 83,075 67,689
Other non-current
assets 54,509 53,633
--- ------------------ ---------------
Total assets $ 3,602,555 $ 3,620,658
--- ------------------ ---------------
Liabilities
Current liabilities:
Long-term debt,
current portion $ 14,011 $ 12,944
Accounts payable 196,847 190,212
Other current
liabilities 167,337 159,239
Operating leases,
current portion 73,250 71,580
Financing leases,
current portion 11,486 11,515
--- ------------------ ---------------
Total current
liabilities 462,931 445,490
Non-current
liabilities:
Long-term debt, net 866,097 868,055
Asset retirement
obligation 87,712 87,375
Operating leases 1,390,419 1,408,293
Financing leases 209,536 211,051
Other non-current
liabilities 230,634 223,528
--- ------------------ ---------------
Total liabilities 3,247,329 3,243,792
--- ------------------ ---------------
Series A redeemable
preferred stock 100,000 100,000
Shareholders' equity:
Common stock 12 12
Treasury stock (113,514) (106,123)
Additional paid-in
capital 280,017 276,681
Accumulated other
comprehensive
income 9,119 9,119
Retained earnings 79,592 97,177
--- ------------------ ---------------
Total shareholders'
equity 255,226 276,866
--- ------------------ ---------------
Total liabilities,
redeemable preferred
stock and equity $ 3,602,555 $ 3,620,658
--- ------------------ ---------------
Condensed Consolidated Statements of Cash Flows
----------------------------------------------------
For the Three Months Ended March 31,
----------------------------------------------------
2025 2024
----------------------- ----------------------
(in thousands)
Cash flows from
operating
activities:
Net loss $ (12,672) $ (594)
Adjustments to
reconcile net loss
to net cash
provided by
operating
activities:
Depreciation and
amortization 34,887 31,716
Deferred income
taxes (15,386) (10,075)
Loss on disposal
of assets and
impairment
charges 1,528 2,664
Foreign currency
loss 16 27
Gain from
issuance of
shares as
payment of
deferred
consideration
related to
business
acquisition -- (2,681)
Gain from
settlement
related to
business
acquisition -- (6,356)
Amortization of
deferred
financing costs
and debt
discount 664 664
Amortization of
deferred income (4,990) (1,946)
Accretion of
asset retirement
obligation 608 616
Non-cash rent 3,307 3,484
Charges to
allowance for
credit losses 217 327
Income from
equity
investment (21) (22)
Share-based
compensation 3,336 3,329
Fair value
adjustment of
financial assets
and liabilities (7,059) (10,772)
Other operating
activities, net 20 624
Changes in assets
and liabilities:
Increase in
trade
receivables (14,431) (24,304)
Decrease in
inventory 10,575 188
Decrease in
other assets 5,325 5,095
Increase in
accounts
payable 6,694 21,347
Increase
(decrease) in
other current
liabilities 17,370 (4,152)
Decrease in
asset
retirement
obligation (317) (55)
Increase in
non-current
liabilities 13,731 3,631
--- ------------------ ------------------
Net cash provided
by operating
activities 43,402 12,755
--- ------------------ ------------------
Cash flows from
investing
activities:
Purchase of
property and
equipment (27,392) (29,228)
Proceeds from sale
of property and
equipment 473 2,039
Prepayment for
acquisition -- (1,000)
Loans to equity
investment, net 15 14
--- ------------------ ------------------
Net cash used in
investing
activities (26,904) (28,175)
--- ------------------ ------------------
Cash flows from
financing
activities:
Receipt of
long-term debt,
net -- 41,588
Repayment of debt (5,690) (6,635)
Principal payments
on financing
leases (1,380) (1,135)
Early settlement of
deferred
consideration
related to
business
acquisition -- (17,155)
Common stock
repurchased (7,382) (31,921)
Dividends paid on
common stock (3,495) (3,596)
Dividends paid on
redeemable
preferred stock (1,418) (1,414)
Net cash used in
financing
activities (19,365) (20,268)
--- ------------------ ------------------
Net decrease in
cash and cash
equivalents and
restricted cash (2,867) (35,688)
Effect of exchange
rate on cash and
cash equivalents
and restricted
cash (4) (19)
Cash and cash
equivalents and
restricted cash,
beginning of
period 292,408 241,421
--- ------------------ ------------------
Cash and cash
equivalents and
restricted cash,
end of period $ 289,537 $ 205,714
=== ================== ==================
Supplemental Disclosure of Non-GAAP Financial Information
Reconciliation of EBITDA and Adjusted EBITDA
---------------------------------------------------
For the Three Months Ended March 31,
---------------------------------------------------
2025 2024
------------------------ --------------------
(in thousands)
Net loss $ (12,672) $ (594)
Interest and other
financing expenses,
net 13,851 2,457
Income tax benefit (12,922) (6,707)
Depreciation and
amortization 34,887 31,716
--- ------------------- ----------------
EBITDA 23,144 26,872
Acquisition and
divestiture costs
(a) 1,150 680
Loss on disposal of
assets and
impairment charges
(b) 1,528 2,664
Share-based
compensation
expense (c) 3,336 3,329
Income from equity
investment (d) (21) (22)
Fuel and franchise
taxes received in
arrears (e) -- (565)
Adjustment to
contingent
consideration (f) (66) 18
Accrual related to
potential wage and
hour claim (g) 2,023 --
Other (h) (239) 189
--- ------------------- ----------------
Adjusted EBITDA $ 30,855 $ 33,165
=== =================== ================
Additional
information
Non-cash rent
expense (i) $ 3,307 $ 3,484
(a) Eliminates costs incurred that are directly attributable
to business acquisitions and divestitures (including
conversion of retail stores to dealer sites) and salaries
of employees whose primary job function is to execute
the Company's acquisition and divestiture strategy
and facilitate integration of acquired operations.
(b) Eliminates the non-cash loss from the sale or
disposal of property and equipment, the loss recognized
upon the sale of related leased assets, and impairment
charges on property and equipment and right-of-use
assets related to closed and non-performing sites.
(c) Eliminates non-cash share-based compensation expense
related to the equity incentive program in place to
incentivize, retain, and motivate our employees and
members of the Board.
(d) Eliminates our share of income attributable to
our unconsolidated equity investment.
(e) Eliminates the receipt of historical fuel and
franchise tax amounts for multiple prior periods.
(f) Eliminates fair value adjustments to the contingent
consideration owed to the seller for the 2020 Empire
acquisition.
(g) Eliminates non-recurring expenses accrued in net
loss related to a potential wage and hour collective
action.
(h) Eliminates other unusual or non-recurring items
that we do not consider to be meaningful in assessing
operating performance.
(i) Non-cash rent expense reflects the extent to which
GAAP rent expense recognized exceeded (or was less
than) cash rent payments. GAAP rent expense varies
depending on the terms of the Company's lease portfolio.
For newer leases, rent expense recognized typically
exceeds cash rent payments, whereas, for more mature
leases, rent expense recognized is typically less
than cash rent payments.
Supplemental Disclosures of Segment Information
Retail Segment
For the Three Months
Ended March 31,
---------------------------
2025 2024
-------------- -----------
(in thousands)
Revenues:
Fuel revenue $ 690,686 $ 824,428
Merchandise revenue 354,485 414,655
Other revenues, net 14,547 16,679
---------- ----------
Total revenues 1,059,718 1,255,762
Operating expenses:
Fuel costs (1) 605,413 731,495
Merchandise costs 236,915 279,737
Site operating expenses 177,239 198,017
---------- ----------
Total operating expenses 1,019,567 1,209,249
---------- ----------
Operating income $ 40,151 $ 46,513
---------- ----------
(1) Excludes the estimated fixed margin or fixed fee
paid to GPMP for the cost of fuel.
The table below shows financial information and certain key metrics of the SpeedyQ Acquisition in the retail segment, for which there is no comparable information for the prior period.
For the Three Months Ended March 31,
2025
---------------------------------------
SpeedyQ (1)
---------------------------------------
(in thousands)
Date of Acquisition: Apr 9, 2024
Revenues:
Fuel revenue $ 9,220
Merchandise revenue 5,679
Other revenues, net 254
----- --------------------------------
Total revenues 15,153
Operating expenses:
Fuel costs (2) 7,951
Merchandise costs 3,874
Site operating expenses 3,281
----- --------------------------------
Total operating expenses 15,106
----- --------------------------------
Operating income $ 47
----- --------------------------------
Fuel gallons sold 3,091
Fuel contribution (3) $ 1,269
Merchandise contribution (4) $ 1,805
Merchandise margin (5) 31.8%
(1) Acquisition of 21 SpeedyQ retail stores.
(2) Excludes the estimated fixed margin paid to GPMP
for the cost of fuel.
(3) Calculated as fuel revenue less fuel costs.
(4) Calculated as merchandise revenue less merchandise
costs.
(5) Calculated as merchandise contribution divided
by merchandise revenue.
Wholesale Segment
For the Three Months
Ended March 31,
------------------------
2025 2024
------------- ---------
(in thousands)
Revenues:
Fuel revenue $ 629,492 $ 664,514
Other revenues, net 10,352 6,858
--------- --------
Total revenues 639,844 671,372
Operating expenses:
Fuel costs (1) 609,445 643,784
Site operating expenses 11,769 9,299
--------- --------
Total operating expenses 621,214 653,083
--------- --------
Operating income $ 18,630 $ 18,289
--------- --------
(1) Excludes the estimated fixed margin or fixed fee
paid to GPMP for the cost of fuel.
Fleet Fueling Segment
For the Three Months
Ended March 31,
------------------------
2025 2024
------------- ---------
(in thousands)
Revenues:
Fuel revenue $ 118,406 $ 132,193
Other revenues, net 2,118 2,385
--- -------- --------
Total revenues 120,524 134,578
Operating expenses:
Fuel costs (1) 103,104 118,277
Site operating expenses 6,428 6,543
--- -------- --------
Total operating expenses 109,532 124,820
--- -------- --------
Operating income $ 10,992 $ 9,758
--- -------- --------
(1) Excludes the estimated fixed fee paid to GPMP
for the cost of fuel.
(END) Dow Jones Newswires
May 08, 2025 16:05 ET (20:05 GMT)
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