Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

10. Segment Reporting

The reportable segments were determined based on information reviewed by the Company’s chief operating decision maker (“CODM”) for operational decision-making purposes, and the segment information is prepared on the same basis on which the

CODM reviews such financial information. The Company’s reportable segments are retail, wholesale, fleet fueling and GPMP. The CODM utilizes operating income from each segment to assess its operating performance and to make decisions about allocating resources to each segment. Arie Kotler, the Company’s President, Chief Executive Officer and Chairman of the Board is the CODM.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that rent expenses for each segment are recognized and measured on the basis of cash payments.

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 retail 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 includes its sale and supply of fuel to substantially all of GPM’s 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 primarily to sites in the fleet fueling segment which are not supplied by GPMP (currently 5.0 cents per gallon sold).

The “All Other” segment includes the results of non-reportable segments which do not meet both quantitative and qualitative criteria as defined under ASC 280, Segment Reporting.

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown; however, the fuel costs in the retail, wholesale and fleet segments exclude the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.

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. Other segment expenses include utilities, telephone, upkeep and taxes, insurance, supplies, advertising, and certain other expenses. Other segment expenses in the GPMP segment also include general and administrative expenses, depreciation and amortization, and other income, net.

With the exception of goodwill, assets and liabilities relevant to the reportable segments are generally not assigned to any particular segment, but rather, managed and reviewed by the CODM 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 substantially all of GPM’s sites that sell fuel (both in the retail and wholesale segments) and charges by GPMP primarily to sites that sell fuel in the fleet fueling segment which are not supplied by GPMP. The effect of these inter-segment transactions was eliminated in the interim financial statements.

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended March 31, 2025

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

690,686

 

 

$

629,492

 

 

$

118,406

 

 

$

496

 

 

$

7,836

 

 

$

1,446,916

 

Merchandise revenue

 

 

354,485

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

354,485

 

Other revenues, net

 

 

14,547

 

 

 

10,352

 

 

 

2,118

 

 

 

155

 

 

 

332

 

 

 

27,504

 

Total revenues from external
  customers

 

$

1,059,718

 

 

$

639,844

 

 

$

120,524

 

 

$

651

 

 

$

8,168

 

 

$

1,828,905

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

940,531

 

 

$

5,085

 

 

$

945,616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

605,413

 

 

$

609,445

 

 

$

103,104

 

 

$

916,588

 

 

 

 

 

 

 

Merchandise costs

 

 

236,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

71,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

19,416

 

 

 

1,669

 

 

 

1,045

 

 

 

 

 

 

 

 

 

 

Rent

 

 

33,838

 

 

 

8,656

 

 

 

2,854

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

15,659

 

 

 

991

 

 

 

918

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

36,658

 

 

 

453

 

 

 

1,611

 

 

 

2,668

 

 

 

13,085

 

 

 

 

Operating income from segments

 

$

40,151

 

 

$

18,630

 

 

$

10,992

 

 

$

21,926

 

 

$

168

 

 

$

91,867

 

Interest and other financial
  expenses, net

 

 

 

 

 

 

 

 

 

 

$

(7,478

)

 

 

 

 

$

(7,478

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

21

 

 

$

21

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended March 31, 2024

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

824,428

 

 

$

664,514

 

 

$

132,193

 

 

$

1,205

 

 

$

8,992

 

 

$

1,631,332

 

Merchandise revenue

 

 

414,655

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

414,655

 

Other revenues, net

 

 

16,679

 

 

 

6,858

 

 

 

2,385

 

 

 

207

 

 

 

338

 

 

 

26,467

 

Total revenues from external
  customers

 

$

1,255,762

 

 

$

671,372

 

 

$

134,578

 

 

$

1,412

 

 

$

9,330

 

 

$

2,072,454

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,102,541

 

 

$

5,253

 

 

$

1,107,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

731,495

 

 

$

643,784

 

 

$

118,277

 

 

$

1,077,821

 

 

 

 

 

 

 

Merchandise costs

 

 

279,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

82,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

21,747

 

 

 

1,870

 

 

 

1,082

 

 

 

 

 

 

 

 

 

 

Rent

 

 

35,489

 

 

 

5,686

 

 

 

2,706

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

16,484

 

 

 

740

 

 

 

1,250

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

41,774

 

 

 

1,003

 

 

 

1,505

 

 

 

2,805

 

 

 

14,478

 

 

 

 

Operating income from segments

 

$

46,513

 

 

$

18,289

 

 

$

9,758

 

 

$

23,327

 

 

$

105

 

 

$

97,992

 

Interest and other financial
  expenses, net

 

 

 

 

 

 

 

 

 

 

$

(6,528

)

 

 

 

 

$

(6,528

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

22

 

 

$

22

 

 

A reconciliation of operating income from reportable segments to consolidated loss before income taxes on the condensed consolidated statements of operations was as follows:

 

 

 

For the Three Months
Ended March 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Operating income from reportable segments

 

$

91,699

 

 

$

97,887

 

All other operating income

 

 

168

 

 

 

105

 

Intercompany charges by GPMP 1

 

 

(24,437

)

 

 

(25,963

)

Interest and other financial expenses, net

 

 

(7,478

)

 

 

(6,528

)

Amounts not allocated to segments:

 

 

 

 

 

 

Site operating expenses

 

 

(3,145

)

 

 

(3,350

)

General and administrative expenses

 

 

(40,785

)

 

 

(41,197

)

Depreciation and amortization

 

 

(33,047

)

 

 

(29,872

)

Other expenses, net

 

 

(2,217

)

 

 

(2,476

)

Interest and other financial (expenses) income, net

 

 

(6,373

)

 

 

4,071

 

Loss before income taxes

 

$

(25,615

)

 

$

(7,323

)

 

1 Represents the estimated fixed margin or fixed fee (currently 5.0 cents per gallon) paid to GPMP for the cost of fuel and recorded by GPMP as inter-segment revenues.