Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.1
Segment Reporting
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting

11. Segment Reporting

The reportable segments were determined based on information reviewed by the chief operating decision maker for operational decision-making purposes and the segment information is prepared on the same basis that the Company’s chief operating decision maker reviews such financial information. The Company’s reportable segments are retail, wholesale, fleet fueling and GPMP. The Company defines segment earnings as operating income.

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 Company operated 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 primarily includes its sale and supply of fuel to GPM and its subsidiaries related to substantially all of its 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 to sites in the fleet fueling segment and certain Company sites which are not supplied by GPMP (currently 5.0 cents per gallon sold). GPMP also supplies fuel to a small number of dealers and bulk and spot purchasers.

The “All Other” segment includes the results of non-reportable segments which do not meet both quantitative and qualitive criteria as defined under ASC 280, Segment Reporting. The Company revised the composition of the “All Other” segment in the third quarter of 2022 in conjunction with the closing of the Quarles Acquisition.

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.

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

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended March 31, 2023

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

843,473

 

 

$

684,848

 

 

$

127,494

 

 

$

741

 

 

$

5,108

 

 

$

1,661,664

 

Merchandise revenue

 

 

400,408

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

400,408

 

Other revenues, net

 

 

18,555

 

 

 

6,491

 

 

 

951

 

 

 

170

 

 

 

257

 

 

 

26,424

 

Total revenues from external
  customers

 

 

1,262,436

 

 

 

691,339

 

 

 

128,445

 

 

 

911

 

 

 

5,365

 

 

 

2,088,496

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,142,622

 

 

 

3,058

 

 

 

1,145,680

 

Total revenues from reportable
  segments

 

 

1,262,436

 

 

 

691,339

 

 

 

128,445

 

 

 

1,143,533

 

 

 

8,423

 

 

 

3,234,176

 

Operating income

 

 

41,631

 

 

 

7,550

 

 

 

8,424

 

 

 

22,622

 

 

 

324

 

 

 

80,551

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

 

 

 

(5,250

)

 

 

—

 

 

 

(5,250

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36

)

 

 

(36

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

75,265

 

 

 

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended March 31, 2022

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

854,667

 

 

$

727,697

 

 

$

1,162

 

 

$

—

 

 

$

1,583,526

 

Merchandise revenue

 

 

366,985

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

366,985

 

Other revenues, net

 

 

16,324

 

 

 

5,722

 

 

 

254

 

 

 

—

 

 

 

22,300

 

Total revenues from external customers

 

 

1,237,976

 

 

 

733,419

 

 

 

1,416

 

 

 

—

 

 

 

1,972,811

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

1,275,721

 

 

 

302

 

 

 

1,276,023

 

Total revenues from reportable
  segments

 

 

1,237,976

 

 

 

733,419

 

 

 

1,277,137

 

 

 

302

 

 

 

3,248,834

 

Operating income

 

 

45,679

 

 

 

7,413

 

 

 

20,607

 

 

 

302

 

 

 

74,001

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(2,445

)

 

 

—

 

 

 

(2,445

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

177

 

 

 

177

 

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

9

 

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

71,742

 

 

A reconciliation of total revenues from reportable segments to total revenues on the condensed consolidated statements of operations was as follows:

 

 

 

For the Three Months
Ended March 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Total revenues from reportable segments

 

$

3,234,176

 

 

$

3,248,834

 

Elimination of inter-segment revenues

 

 

(1,145,680

)

 

 

(1,276,023

)

Total revenues

 

$

2,088,496

 

 

$

1,972,811

 

 

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

 

 

 

For the Three Months
Ended March 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Net income from reportable segments

 

$

75,265

 

 

$

71,742

 

Amounts not allocated to segments:

 

 

 

 

 

 

Store operating expenses

 

 

(2,677

)

 

 

584

 

General and administrative expenses

 

 

(39,644

)

 

 

(31,079

)

Depreciation and amortization

 

 

(26,557

)

 

 

(22,794

)

Other expenses, net

 

 

(2,720

)

 

 

(1,121

)

Interest and other financial expenses, net

 

 

(8,352

)

 

 

(13,832

)

Income tax benefit (expense)

 

 

2,158

 

 

 

(1,182

)

Net (loss) income

 

$

(2,527

)

 

$

2,318