Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.2
Segment Reporting
6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting

10. 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 our chief operating decision maker reviews such financial information. The Company’s reporting segments are the retail segment, the wholesale segment and the GPMP segment. 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 independent dealers, sub-wholesalers and bulk 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 independent outside operators.

The GPMP segment includes GPM Petroleum LP (“GPMP”) and primarily includes the sale and supply of fuel to GPM and its subsidiaries selling fuel (both in the Retail and Wholesale segments) at GPMP’s cost of fuel (currently including taxes and certain transportation costs) plus a fixed margin (4.5 cents per gallon prior to October 1, 2020 and effective October 1, 2020 through September 30, 2021, 5.0 cents per gallon) and the supply of fuel to a small number of independent outside operators and bulk 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 majority of general and administrative expenses, depreciation and amortization, net other expenses, net interest and other financial expenses and income taxes are not allocated to the segments, as well as minor other income items including intercompany operating leases.

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 segment revenues were generated from sites within the U.S. and substantially all assets were within the U.S.

Inter-segment transactions primarily included the distribution of fuel by GPMP to GPM and its subsidiaries selling fuel (both in the Retail and Wholesale segments). The effect of these inter-segment transactions was eliminated in the condensed consolidated financial statements.

 

 

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended June 30, 2021

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

768,716

 

 

$

690,521

 

 

$

1,526

 

 

$

 

 

$

1,460,763

 

Merchandise revenue

 

 

426,365

 

 

 

 

 

 

 

 

 

 

 

 

426,365

 

Other revenues, net

 

 

17,252

 

 

 

5,212

 

 

 

264

 

 

 

 

 

 

22,728

 

Total revenues from external customers

 

 

1,212,333

 

 

 

695,733

 

 

 

1,790

 

 

 

 

 

 

1,909,856

 

Inter-segment

 

 

 

 

 

 

 

 

1,092,926

 

 

 

317

 

 

 

1,093,243

 

Total revenues from reportable segments

 

 

1,212,333

 

 

 

695,733

 

 

 

1,094,716

 

 

 

317

 

 

 

3,003,099

 

Operating income

 

 

71,215

 

 

 

5,992

 

 

 

23,610

 

 

 

317

 

 

 

101,134

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(3,859

)

 

 

 

 

 

(3,859

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(55

)

 

 

(55

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

26

 

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

97,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

385,519

 

 

$

21,281

 

 

$

712

 

 

$

 

 

$

407,512

 

Merchandise revenue

 

 

391,697

 

 

 

 

 

 

 

 

 

 

 

 

391,697

 

Other revenues, net

 

 

13,615

 

 

 

1,307

 

 

 

179

 

 

 

 

 

 

15,101

 

Total revenues from external customers

 

 

790,831

 

 

 

22,588

 

 

 

891

 

 

 

 

 

 

814,310

 

Inter-segment

 

 

 

 

 

 

 

 

230,178

 

 

 

 

 

 

230,178

 

Total revenues from reportable segments

 

 

790,831

 

 

 

22,588

 

 

 

231,069

 

 

 

 

 

 

1,044,488

 

Operating income

 

 

76,767

 

 

 

780

 

 

 

7,284

 

 

 

 

 

 

84,831

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(921

)

 

 

 

 

 

(921

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(43

)

 

 

(43

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

(178

)

 

 

(178

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

83,689

 

 

 

 

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Six Months Ended June 30, 2021

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,345,020

 

 

$

1,216,009

 

 

$

2,681

 

 

$

 

 

$

2,563,710

 

Merchandise revenue

 

 

785,646

 

 

 

 

 

 

 

 

 

 

 

 

785,646

 

Other revenues, net

 

 

34,229

 

 

 

10,151

 

 

 

519

 

 

 

 

 

 

44,899

 

Total revenues from external customers

 

 

2,164,895

 

 

 

1,226,160

 

 

 

3,200

 

 

 

 

 

 

3,394,255

 

Inter-segment

 

 

 

 

 

 

 

 

1,912,393

 

 

 

634

 

 

 

1,913,027

 

Total revenues from reportable segments

 

 

2,164,895

 

 

 

1,226,160

 

 

 

1,915,593

 

 

 

634

 

 

 

5,307,282

 

Operating income

 

 

111,562

 

 

 

8,300

 

 

 

43,733

 

 

 

634

 

 

 

164,229

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(7,700

)

 

 

 

 

 

(7,700

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(111

)

 

 

(111

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

20

 

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

156,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

918,405

 

 

$

50,219

 

 

$

1,929

 

 

$

 

 

$

970,553

 

Merchandise revenue

 

 

715,376

 

 

 

 

 

 

 

 

 

 

 

 

715,376

 

Other revenues, net

 

 

25,315

 

 

 

2,590

 

 

 

394

 

 

 

 

 

 

28,299

 

Total revenues from external customers

 

 

1,659,096

 

 

 

52,809

 

 

 

2,323

 

 

 

 

 

 

1,714,228

 

Inter-segment

 

 

 

 

 

 

 

 

609,303

 

 

 

2,378

 

 

 

611,681

 

Total revenues from reportable segments

 

 

1,659,096

 

 

 

52,809

 

 

 

611,626

 

 

 

2,378

 

 

 

2,325,909

 

Operating income

 

 

98,178

 

 

 

1,058

 

 

 

16,070

 

 

 

2,378

 

 

 

117,684

 

Interest and financial (expenses) income, net

 

 

 

 

 

 

 

 

(1,768

)

 

 

23

 

 

 

(1,745

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(205

)

 

 

(205

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

(411

)

 

 

(411

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

115,323

 

 

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

 

 

 

For the Three Months
Ended June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Total revenues from reportable segments

 

$

3,003,099

 

 

$

1,044,488

 

 

$

5,307,282

 

 

$

2,325,909

 

Other revenues, net

 

 

(42

)

 

 

(35

)

 

 

(85

)

 

 

(73

)

Elimination of inter-segment revenues

 

 

(1,093,243

)

 

 

(230,178

)

 

 

(1,913,027

)

 

 

(611,681

)

Total revenues

 

$

1,909,814

 

 

$

814,275

 

 

$

3,394,170

 

 

$

1,714,155

 

 

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

 

 

 

For the Three Months
Ended June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Net income from reportable segments

 

$

97,246

 

 

$

83,689

 

 

$

156,438

 

 

$

115,323

 

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues, net

 

 

(42

)

 

 

(35

)

 

 

(85

)

 

 

(73

)

Store operating expenses

 

 

675

 

 

 

(801

)

 

 

1,252

 

 

 

(1,693

)

General and administrative expenses

 

 

(31,068

)

 

 

(19,582

)

 

 

(57,070

)

 

 

(37,707

)

Depreciation and amortization

 

 

(23,431

)

 

 

(14,970

)

 

 

(45,830

)

 

 

(30,198

)

Other expenses, net

 

 

(1,195

)

 

 

(1,733

)

 

 

(2,867

)

 

 

(5,909

)

Interest and other financial expenses, net

 

 

(8,455

)

 

 

(11,592

)

 

 

(33,548

)

 

 

(19,797

)

Income tax expense

 

 

(8,157

)

 

 

(2,467

)

 

 

(7,379

)

 

 

(294

)

Net income

 

$

25,573

 

 

$

32,509

 

 

$

10,911

 

 

$

19,652