Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 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 earned from the sale of fuel with the consignment dealers. For cost plus arrangements, the Company sells fuel to dealers and bulk and spot purchasers on a fixed-fee basis. The sales price is determined according to the terms of the relevant agreement, which typically reflects the Company’s total fuel costs plus the cost of transportation and a margin, with the Company generally retaining any prompt pay discounts and rebates.

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 primarily includes its inter-segment 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 an inter-segment 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 June 30, 2025

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

748,103

 

 

$

696,671

 

 

$

118,121

 

 

$

353

 

 

$

6,294

 

 

$

1,569,542

 

Merchandise revenue

 

 

400,126

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

400,126

 

Other revenues, net

 

 

14,622

 

 

 

12,501

 

 

 

2,245

 

 

 

191

 

 

 

292

 

 

 

29,851

 

Total revenues from external
  customers

 

$

1,162,851

 

 

$

709,172

 

 

$

120,366

 

 

$

544

 

 

$

6,586

 

 

$

1,999,519

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,008,786

 

 

$

5,389

 

 

$

1,014,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

640,231

 

 

$

671,282

 

 

$

100,353

 

 

$

982,722

 

 

 

 

 

 

 

Merchandise costs

 

 

265,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

70,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

21,384

 

 

 

1,823

 

 

 

1,136

 

 

 

 

 

 

 

 

 

 

Rent

 

 

33,383

 

 

 

9,451

 

 

 

2,845

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

14,854

 

 

 

1,277

 

 

 

1,255

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

36,319

 

 

 

2,097

 

 

 

1,698

 

 

 

2,660

 

 

 

12,125

 

 

 

 

Operating income (loss) from
  segments

 

$

80,370

 

 

$

23,242

 

 

$

13,079

 

 

$

23,948

 

 

$

(150

)

 

$

140,489

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(7,797

)

 

 

 

 

$

(7,797

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

26

 

 

$

26

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended June 30, 2024

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

976,372

 

 

$

762,693

 

 

$

140,140

 

 

$

990

 

 

$

7,336

 

 

$

1,887,531

 

Merchandise revenue

 

 

474,248

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

474,248

 

Other revenues, net

 

 

16,735

 

 

 

6,850

 

 

 

2,284

 

 

 

222

 

 

 

293

 

 

 

26,384

 

Total revenues from external
  customers

 

$

1,467,355

 

 

$

769,543

 

 

$

142,424

 

 

$

1,212

 

 

$

7,629

 

 

$

2,388,163

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,282,870

 

 

$

4,886

 

 

$

1,287,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

858,391

 

 

$

738,707

 

 

$

122,280

 

 

$

1,255,682

 

 

 

 

 

 

 

Merchandise costs

 

 

318,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

83,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

24,997

 

 

 

2,082

 

 

 

1,064

 

 

 

 

 

 

 

 

 

 

Rent

 

 

36,390

 

 

 

5,522

 

 

 

2,833

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

15,670

 

 

 

809

 

 

 

1,210

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

41,513

 

 

 

1,153

 

 

 

1,335

 

 

 

2,644

 

 

 

12,812

 

 

 

 

Operating income (loss) from
  segments

 

$

87,925

 

 

$

21,270

 

 

$

13,702

 

 

$

25,756

 

 

$

(297

)

 

$

148,356

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(8,583

)

 

 

 

 

$

(8,583

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

28

 

 

$

28

 

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Six Months Ended June 30, 2025

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,438,789

 

 

$

1,326,163

 

 

$

236,527

 

 

$

849

 

 

$

14,130

 

 

$

3,016,458

 

Merchandise revenue

 

 

754,611

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

754,611

 

Other revenues, net

 

 

29,169

 

 

 

22,853

 

 

 

4,363

 

 

 

346

 

 

 

624

 

 

 

57,355

 

Total revenues from external
  customers

 

$

2,222,569

 

 

$

1,349,016

 

 

$

240,890

 

 

$

1,195

 

 

$

14,754

 

 

$

3,828,424

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,949,317

 

 

$

10,474

 

 

$

1,959,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

1,245,644

 

 

$

1,280,727

 

 

$

203,457

 

 

$

1,899,310

 

 

 

 

 

 

 

Merchandise costs

 

 

502,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

142,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

40,800

 

 

 

3,492

 

 

 

2,181

 

 

 

 

 

 

 

 

 

 

Rent

 

 

67,221

 

 

 

18,107

 

 

 

5,699

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

30,513

 

 

 

2,268

 

 

 

2,173

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

72,977

 

 

 

2,550

 

 

 

3,309

 

 

 

5,328

 

 

 

25,210

 

 

 

 

Operating income from segments

 

$

120,521

 

 

$

41,872

 

 

$

24,071

 

 

$

45,874

 

 

$

18

 

 

$

232,356

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(15,275

)

 

 

 

 

$

(15,275

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

47

 

 

$

47

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Six Months Ended June 30, 2024

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,800,800

 

 

$

1,427,207

 

 

$

272,333

 

 

$

2,195

 

 

$

16,328

 

 

$

3,518,863

 

Merchandise revenue

 

 

888,903

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

888,903

 

Other revenues, net

 

 

33,414

 

 

 

13,708

 

 

 

4,669

 

 

 

429

 

 

 

631

 

 

 

52,851

 

Total revenues from external
  customers

 

$

2,723,117

 

 

$

1,440,915

 

 

$

277,002

 

 

$

2,624

 

 

$

16,959

 

 

$

4,460,617

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,385,411

 

 

$

10,139

 

 

$

2,395,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

1,589,886

 

 

$

1,382,491

 

 

$

240,557

 

 

$

2,333,503

 

 

 

 

 

 

 

Merchandise costs

 

 

598,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

166,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

46,744

 

 

 

3,952

 

 

 

2,146

 

 

 

 

 

 

 

 

 

 

Rent

 

 

71,879

 

 

 

11,208

 

 

 

5,539

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

32,154

 

 

 

1,549

 

 

 

2,460

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

83,287

 

 

 

2,156

 

 

 

2,840

 

 

 

5,449

 

 

 

27,290

 

 

 

 

Operating income (loss) from
  segments

 

$

134,438

 

 

$

39,559

 

 

$

23,460

 

 

$

49,083

 

 

$

(192

)

 

$

246,348

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(15,111

)

 

 

 

 

$

(15,111

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

50

 

 

$

50

 

 

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

 

 

 

For the Three Months
Ended June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Operating income from reportable segments

 

$

140,639

 

 

$

148,653

 

 

$

232,338

 

 

$

246,540

 

All other operating (loss) income

 

 

(150

)

 

 

(297

)

 

 

18

 

 

 

(192

)

Intercompany charges by GPMP 1

 

 

(26,421

)

 

 

(28,196

)

 

 

(50,858

)

 

 

(54,159

)

Interest and other financial expenses, net

 

 

(7,797

)

 

 

(8,583

)

 

 

(15,275

)

 

 

(15,111

)

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

 

 

 

Site operating expenses

 

 

(2,949

)

 

 

(3,582

)

 

 

(6,094

)

 

 

(6,932

)

General and administrative expenses

 

 

(39,922

)

 

 

(41,635

)

 

 

(80,707

)

 

 

(82,832

)

Depreciation and amortization

 

 

(31,762

)

 

 

(31,734

)

 

 

(64,809

)

 

 

(61,606

)

Other income (expenses), net

 

 

17,255

 

 

 

(261

)

 

 

15,038

 

 

 

(2,737

)

Interest and other financial expenses, net

 

 

(11,721

)

 

 

(12,784

)

 

 

(18,094

)

 

 

(8,713

)

Income before income taxes

 

$

37,172

 

 

$

21,581

 

 

$

11,557

 

 

$

14,258

 

 

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.