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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2024.

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to .

Commission File Number 001-39828

 

img27460766_0.jpg

ARKO Corp.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

 

85-2784337

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer
Identification No.)

 

8565 Magellan Parkway

Suite 400

Richmond, Virginia 23227-1150

(Address of Principal Executive Offices) (Zip Code)

(804) 730-1568

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

Common Stock, $0.0001 par value per share

 

ARKO

 

Nasdaq Capital Market

Warrants to purchase common stock

 

ARKOW

 

Nasdaq Capital Market

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ NO

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ YES NO

As of November 5, 2024, the registrant had 115,771,318 shares of its common stock, par value $0.0001 per share (“common stock”) outstanding.

 

 


Table of Contents

 

TABLE OF CONTENTS

 

 

 

 

Page

PART I. FINANCIAL INFORMATION

 

 

Item 1.

Financial Statements

 

5

 

Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (unaudited)

 

5

 

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (unaudited)

 

6

 

Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited)

 

7

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited)

 

8

 

Notes to Condensed Consolidated Financial Statements (unaudited)

 

11

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

24

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

41

Item 4.

Controls and Procedures

 

42

PART II. OTHER INFORMATION

 

 

Item 1.

Legal Proceedings

 

43

Item 1A.

Risk Factors

 

43

Item 2.

Unregistered Sales of Equity Securities, and Use of Proceeds

 

43

Item 3.

Defaults Upon Senior Securities

 

43

Item 4.

Mine Safety Disclosures

 

43

Item 5.

Other Information

 

43

Item 6.

Exhibits

 

44

Signatures

 

45

 

 

 

2


Table of Contents

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements about our expectations, beliefs or intentions regarding our business, financial condition, results of operations, strategies or prospects. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described below and in “Item 1A-Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 and this Quarterly Report on Form 10-Q, and described from time to time in our other filings with the Securities and Exchange Commission (the “SEC”). We do not undertake any obligation to update forward-looking statements, except to the extent required by applicable law. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA. These forward-looking statements are only predictions and reflect our views as of the date they are made with respect to future events and financial performance.

Risks and uncertainties, the occurrence of which could adversely affect our business, include the following:

changes in economic conditions and consumer confidence in the United States;
our ability to successfully develop, implement, and achieve the anticipated benefits of the Transformation Plan (as defined below), including the planned conversion of certain retail stores within our retail segment to dealer sites within our wholesale segment, which may not occur on commercially reasonable terms, if at all;
significant changes in the current consumption of, and related regulations and litigation related to, cigarettes and other tobacco products;
changes in the wholesale prices of motor fuel;
significant changes in demand for fuel-based modes of transportation;
the highly competitive fragmented industry in which we operate, characterized by many similar competing products and services;
our ability to make acquisitions and divestitures on economically acceptable terms;
our ability to successfully integrate acquired operations or otherwise realize the expected benefits from our acquisitions;
negative events or developments associated with branded motor fuel suppliers;
we depend on several principal suppliers for our fuel purchases and one principal supplier for merchandise;
a portion of our revenue is generated under fuel supply agreements with dealers that must be renegotiated or replaced periodically;
the retail sale, distribution, transportation and storage of motor fuels is subject to environmental protection and operational safety laws and regulations that may expose us or our customers to significant costs and liabilities;
failure to comply with applicable laws and regulations;
the loss of key senior management personnel or the failure to recruit or retain qualified personnel;
unfavorable weather conditions;
payment-related risks that may result in higher operating costs or the inability to process payments;
significant disruptions of information technology systems, breaches of data security or compromised data;
evolving laws, regulations, standards, and contractual obligations related to data privacy and security regulations, and our actual or perceived failure to comply with such obligations;
our failure to adequately secure, maintain, and enforce our intellectual property rights and third-party claims of infringement upon their intellectual property rights;
our dependence on third-party transportation providers for the transportation of most of our motor fuel;

 

3


Table of Contents

 

our operations present risks which may not be fully covered by insurance;
our variable rate debt;
the agreements governing our indebtedness contain various restrictions and financial covenants;
the majority of our common stock is held by a limited number of stockholders and management and their interests may conflict with yours;
our corporate structure includes Israeli subsidiaries that may have adverse tax consequences and expose us to additional tax liabilities;
we may not be able to maintain an effective system of internal control over financial reporting and we may not be able to accurately report our financial results or prevent fraud;
the market price and trading volume of our common stock may be volatile and could decline significantly; and
sales of a substantial number of shares of our common stock in the public market could cause the prices of our common stock to decline.

 

4


Table of Contents

 

PART I. FINANCIAL INFORMATION

Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to the “Company,” “ARKO,” “we,” “our,” “ours,” and “us” refer to ARKO Corp., a Delaware corporation, including our consolidated subsidiaries.

Item 1. Financial Statements

ARKO Corp.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except share data)

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

291,697

 

 

$

218,120

 

Restricted cash

 

 

27,314

 

 

 

23,301

 

Short-term investments

 

 

5,132

 

 

 

3,892

 

Trade receivables, net

 

 

117,890

 

 

 

134,735

 

Inventory

 

 

236,487

 

 

 

250,593

 

Other current assets

 

 

101,428

 

 

 

118,472

 

Total current assets

 

 

779,948

 

 

 

749,113

 

Non-current assets:

 

 

 

 

 

 

Property and equipment, net

 

 

740,761

 

 

 

742,610

 

Right-of-use assets under operating leases

 

 

1,406,429

 

 

 

1,384,693

 

Right-of-use assets under financing leases, net

 

 

159,110

 

 

 

162,668

 

Goodwill

 

 

300,032

 

 

 

292,173

 

Intangible assets, net

 

 

187,999

 

 

 

214,552

 

Equity investment

 

 

2,964

 

 

 

2,885

 

Deferred tax asset

 

 

58,573

 

 

 

52,293

 

Other non-current assets

 

 

52,485

 

 

 

49,377

 

Total assets

 

$

3,688,301

 

 

$

3,650,364

 

Liabilities

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Long-term debt, current portion

 

$

15,372

 

 

$

16,792

 

Accounts payable

 

 

209,102

 

 

 

213,657

 

Other current liabilities

 

 

173,578

 

 

 

179,536

 

Operating leases, current portion

 

 

70,120

 

 

 

67,053

 

Financing leases, current portion

 

 

11,175

 

 

 

9,186

 

Total current liabilities

 

 

479,347

 

 

 

486,224

 

Non-current liabilities:

 

 

 

 

 

 

Long-term debt, net

 

 

869,323

 

 

 

828,647

 

Asset retirement obligation

 

 

87,331

 

 

 

84,710

 

Operating leases

 

 

1,424,834

 

 

 

1,395,032

 

Financing leases

 

 

211,380

 

 

 

213,032

 

Other non-current liabilities

 

 

236,081

 

 

 

266,602

 

Total liabilities

 

 

3,308,296

 

 

 

3,274,247

 

Commitments and contingencies — see Note 13

 

 

 

 

 

 

Series A redeemable preferred stock (no par value) - authorized: 1,000,000 shares; issued and
   outstanding:
1,000,000 and 1,000,000 shares, respectively; redemption value: $100,000 and $100,000,
   in the aggregate, respectively

 

 

100,000

 

 

 

100,000

 

Shareholders' equity:

 

 

 

 

 

 

Common stock (par value $0.0001) - authorized: 400,000,000 shares; issued: 130,153,836 and 125,268,525 shares, respectively; outstanding: 115,771,318 and 116,171,208 shares, respectively

 

 

12

 

 

 

12

 

Treasury stock, at cost - 14,382,518 and 9,097,317 shares, respectively

 

 

(106,123

)

 

 

(74,134

)

Additional paid-in capital

 

 

272,604

 

 

 

245,007

 

Accumulated other comprehensive income

 

 

9,119

 

 

 

9,119

 

Retained earnings

 

 

104,393

 

 

 

96,097

 

Total shareholders' equity

 

 

280,005

 

 

 

276,101

 

Non-controlling interest

 

 

 

 

 

16

 

Total equity

 

 

280,005

 

 

 

276,117

 

Total liabilities, redeemable preferred stock and equity

 

$

3,688,301

 

 

$

3,650,364

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

5


Table of Contents

 

ARKO Corp.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)

 

 

 

For the Three Months
Ended September 30,

 

 

For the Nine Months
Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue 1

 

$

1,783,871

 

 

$

2,086,392

 

 

$

5,302,734

 

 

$

5,705,156

 

Merchandise revenue

 

 

469,616

 

 

 

506,425

 

 

 

1,358,519

 

 

 

1,391,274

 

Other revenues, net

 

 

25,749

 

 

 

29,237

 

 

 

78,600

 

 

 

83,141

 

Total revenues

 

 

2,279,236

 

 

 

2,622,054

 

 

 

6,739,853

 

 

 

7,179,571

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs 1

 

 

1,626,399

 

 

 

1,923,869

 

 

 

4,855,462

 

 

 

5,262,854

 

Merchandise costs

 

 

315,597

 

 

 

345,699

 

 

 

913,823

 

 

 

952,925

 

Site operating expenses

 

 

222,744

 

 

 

226,698

 

 

 

665,366

 

 

 

637,383

 

General and administrative expenses

 

 

38,636

 

 

 

44,116

 

 

 

123,230

 

 

 

127,192

 

Depreciation and amortization

 

 

33,132

 

 

 

33,713

 

 

 

98,425

 

 

 

94,949

 

Total operating expenses

 

 

2,236,508

 

 

 

2,574,095

 

 

 

6,656,306

 

 

 

7,075,303

 

Other expenses, net

 

 

1,159

 

 

 

3,885

 

 

 

3,896

 

 

 

11,561

 

Operating income

 

 

41,569

 

 

 

44,074

 

 

 

79,651

 

 

 

92,707

 

Interest and other financial income

 

 

3,135

 

 

 

9,371

 

 

 

26,462

 

 

 

18,897

 

Interest and other financial expenses

 

 

(26,759

)

 

 

(23,950

)

 

 

(73,910

)

 

 

(67,238

)

Income before income taxes

 

 

17,945

 

 

 

29,495

 

 

 

32,203

 

 

 

44,366

 

Income tax expense

 

 

(8,300

)

 

 

(7,993

)

 

 

(9,139

)

 

 

(10,849

)

Income (loss) from equity investment

 

 

29

 

 

 

(14

)

 

 

79

 

 

 

(77

)

Net income

 

$

9,674

 

 

$

21,488

 

 

$

23,143

 

 

$

33,440

 

Less: Net income attributable to non-controlling interests

 

 

 

 

 

48

 

 

 

 

 

 

149

 

Net income attributable to ARKO Corp.

 

$

9,674

 

 

$

21,440

 

 

$

23,143

 

 

$

33,291

 

Series A redeemable preferred stock dividends

 

 

(1,446

)

 

 

(1,449

)

 

 

(4,305

)

 

 

(4,301

)

Net income attributable to common shareholders

 

$

8,228

 

 

$

19,991

 

 

$

18,838

 

 

$

28,990

 

Net income per share attributable to common shareholders – basic

 

$

0.07

 

 

$

0.17

 

 

$

0.16

 

 

$

0.24

 

Net income per share attributable to common shareholders –
  diluted

 

$

0.07

 

 

$

0.17

 

 

$

0.16

 

 

$

0.24

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

115,771

 

 

 

118,389

 

 

 

116,262

 

 

 

119,505

 

Diluted

 

 

117,888

 

 

 

120,292

 

 

 

117,342

 

 

 

120,602

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

1 Includes excise tax of:

 

$

301,998

 

 

$

311,921

 

 

$

875,228

 

 

$

883,420

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

6


Table of Contents

 

ARKO Corp.

Condensed Consolidated Statements of Changes in Equity

(Unaudited, in thousands, except share data)

 

 

Common Stock

 

 

Treasury

 

 

Additional

 

 

Accumulated
Other

 

 

Retained

 

 

Total

 

 

Non-

 

 

 

 

 

 

Shares

 

 

Par Value

 

 

Stock, at Cost

 

 

Paid-in Capital

 

 

Comprehensive Income

 

 

Earnings

 

 

Shareholders' Equity

 

 

Controlling Interests

 

 

Total Equity

 

Balance at July 1, 2023

 

 

118,842,462

 

 

$

12

 

 

$

(53,804

)

 

$

238,617

 

 

$

9,119

 

 

$

83,533

 

 

$

277,477

 

 

$

39

 

 

$

277,516

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

4,614

 

 

 

 

 

 

 

 

 

4,614

 

 

 

 

 

 

4,614

 

Transactions with non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

40

 

 

 

(40

)

 

 

 

Distributions to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(60

)

 

 

(60

)

Dividends on redeemable preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,449

)

 

 

(1,449

)

 

 

 

 

 

(1,449

)

Dividends declared (3 cents per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,559

)

 

 

(3,559

)

 

 

 

 

 

(3,559

)

Common stock repurchased

 

 

(1,540,642

)

 

 

 

 

 

(11,750

)

 

 

 

 

 

 

 

 

 

 

 

(11,750

)

 

 

 

 

 

(11,750

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,440

 

 

 

21,440

 

 

 

48

 

 

 

21,488

 

Balance at September 30, 2023

 

 

117,301,820

 

 

$

12

 

 

$

(65,554

)

 

$

243,271

 

 

$

9,119

 

 

$

99,965

 

 

$

286,813

 

 

$

(13

)

 

$

286,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at July 1, 2024

 

 

115,771,318

 

 

$

12

 

 

$

(106,123

)

 

$

270,455

 

 

$

9,119

 

 

$

99,638

 

 

$

273,101

 

 

$

 

 

$

273,101

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

2,149

 

 

 

 

 

 

 

 

 

2,149

 

 

 

 

 

 

2,149

 

Dividends on redeemable preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,446

)

 

 

(1,446

)

 

 

 

 

 

(1,446

)

Dividends declared (3 cents per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,473

)

 

 

(3,473

)

 

 

 

 

 

(3,473

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,674

 

 

 

9,674

 

 

 

 

 

 

9,674

 

Balance at September 30, 2024

 

 

115,771,318

 

 

$

12

 

 

$

(106,123

)

 

$

272,604

 

 

$

9,119

 

 

$

104,393

 

 

$

280,005

 

 

$

 

 

$

280,005

 

 

 

 

Common Stock

 

 

Treasury

 

 

Additional

 

 

Accumulated
Other

 

 

Retained

 

 

Total

 

 

Non-

 

 

 

 

 

 

Shares

 

 

Par Value

 

 

Stock, at Cost

 

 

Paid-in Capital

 

 

Comprehensive Income

 

 

Earnings

 

 

Shareholders' Equity

 

 

Controlling Interests

 

 

Total Equity

 

Balance at January 1, 2023

 

 

120,074,542

 

 

$

12

 

 

$

(40,042

)

 

$

229,995

 

 

$

9,119

 

 

$

81,750

 

 

$

280,834

 

 

$

56

 

 

$

280,890

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

13,238

 

 

 

 

 

 

 

 

 

13,238

 

 

 

 

 

 

13,238

 

Transactions with non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

38

 

 

 

 

 

 

 

 

 

38

 

 

 

(38

)

 

 

 

Distributions to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(180

)

 

 

(180

)

Dividends on redeemable preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,301

)

 

 

(4,301

)

 

 

 

 

 

(4,301

)

Dividends declared (9 cents per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,775

)

 

 

(10,775

)

 

 

 

 

 

(10,775

)

Common stock repurchased

 

 

(3,313,751

)

 

 

 

 

 

(25,512

)

 

 

 

 

 

 

 

 

 

 

 

(25,512

)

 

 

 

 

 

(25,512

)

Vesting and settlement of restricted share units

 

 

541,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33,291

 

 

 

33,291

 

 

 

149

 

 

 

33,440

 

Balance at September 30, 2023

 

 

117,301,820

 

 

$

12

 

 

$

(65,554

)

 

$

243,271

 

 

$

9,119

 

 

$

99,965

 

 

$

286,813

 

 

$

(13

)

 

$

286,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2024

 

 

116,171,208

 

 

$

12

 

 

$

(74,134

)

 

$

245,007

 

 

$

9,119

 

 

$

96,097

 

 

$

276,101

 

 

$

16

 

 

$

276,117

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

8,262

 

 

 

 

 

 

 

 

 

8,262

 

 

 

 

 

 

8,262

 

Transactions with non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

(2,984

)

 

 

 

 

 

 

 

 

(2,984

)

 

 

(16

)

 

 

(3,000

)

Dividends on redeemable preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,305

)

 

 

(4,305

)

 

 

 

 

 

(4,305

)

Dividends declared (9 cents per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,542

)

 

 

(10,542

)

 

 

 

 

 

(10,542

)

Common stock repurchased

 

 

(5,285,201

)

 

 

 

 

 

(31,989

)

 

 

 

 

 

 

 

 

 

 

 

(31,989

)

 

 

 

 

 

(31,989

)

Vesting and settlement of restricted share units

 

 

1,467,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of shares

 

 

3,417,915

 

 

 

 

 

 

 

 

 

22,319

 

 

 

 

 

 

 

 

 

22,319

 

 

 

 

 

 

22,319

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,143

 

 

 

23,143

 

 

 

 

 

 

23,143

 

Balance at September 30, 2024

 

 

115,771,318

 

 

$

12

 

 

$

(106,123

)

 

$

272,604

 

 

$

9,119

 

 

$

104,393

 

 

$

280,005

 

 

$

 

 

$

280,005

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

7


Table of Contents

 

ARKO Corp.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

 

 

 

For the Nine Months
Ended September 30,

 

 

 

2024

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

23,143

 

 

$

33,440

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

98,425

 

 

 

94,949

 

Deferred income taxes

 

 

(3,660

)

 

 

(4,028

)

Loss on disposal of assets and impairment charges

 

 

5,137

 

 

 

5,543

 

Foreign currency loss

 

 

41

 

 

 

130

 

Gain from issuance of shares as payment of deferred consideration related to business
  acquisition (see Note 4)

 

 

(2,681

)