ARKO Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting (Tables)

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2022

Inter-segment transactions primarily included the distribution of fuel by GPMP to GPM and its subsidiaries that sell 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, 2022	(in thousands)
Revenues
Fuel revenue	$	1,117,849	$	966,434	$	1,571		$	—		$	2,085,854
Merchandise revenue		431,751		—		—			—			431,751
Other revenues, net		16,667		5,733		258			—			22,658
Total revenues from external customers		1,566,267		972,167		1,829			—			2,540,263
Inter-segment		—		—		1,738,243			302			1,738,545
Total revenues from reportable segments		1,566,267		972,167		1,740,072			302			4,278,808
Operating income		71,847		9,786		21,799			302			103,734
Interest and financial expenses, net						(1,819	)		—			(1,819	)
Income from equity investment									28			28
Net income from reportable segments											$	101,943

For the Three Months Ended June 30, 2021
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


	Retail		Wholesale		GPMP			All Other			Total
For the Six Months Ended June 30, 2022	(in thousands)
Revenues
Fuel revenue	$	1,972,516	$	1,694,131	$	2,733		$	—		$	3,669,380
Merchandise revenue		798,736		—		—			—			798,736
Other revenues, net		32,991		11,455		512			—			44,958
Total revenues from external customers		2,804,243		1,705,586		3,245			—			4,513,074
Inter-segment		—		—		3,013,964			604			3,014,568
Total revenues from reportable segments		2,804,243		1,705,586		3,017,209			604			7,527,642
Operating income		117,526		17,199		42,406			604			177,735
Interest and financial expenses, net						(4,264	)		—			(4,264	)
Income tax benefit									177			177
Income from equity investment									37			37
Net income from reportable segments											$	173,685

For the Six Months Ended June 30, 2021
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

Schedule of Reconciliation of Total Revenues from Reportable Segments to Total Revenues

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 June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
	(in thousands)
Total revenues from reportable segments	$	4,278,808		$	3,003,099		$	7,527,642		$	5,307,282
Other revenues, net		—			(42	)		—			(85	)
Elimination of inter-segment revenues		(1,738,545	)		(1,093,243	)		(3,014,568	)		(1,913,027	)
Total revenues	$	2,540,263		$	1,909,814		$	4,513,074		$	3,394,170

Schedule of Reconciliation of Net Income from Reportable Segments to Net Income (Loss)

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 June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
	(in thousands)
Net income from reportable segments	$	101,943		$	97,246		$	173,685		$	156,438
Amounts not allocated to segments:
Other revenues, net		—			(42	)		—			(85	)
Store operating expenses		747			675			1,331			1,252
General and administrative expenses		(32,197	)		(31,068	)		(63,276	)		(57,070	)
Depreciation and amortization		(22,511	)		(23,431	)		(45,305	)		(45,830	)
Other expenses, net		(1,197	)		(1,195	)		(2,318	)		(2,867	)
Interest and other financial expenses, net		(5,822	)		(8,455	)		(19,654	)		(33,548	)
Income tax expense		(9,157	)		(8,157	)		(10,339	)		(7,379	)
Net income	$	31,806		$	25,573		$	34,124		$	10,911