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Segment Reporting
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting

Note 15. SEGMENT REPORTING

We conduct our business in two segments: 1) the wholesale segment and 2) the retail segment.

The wholesale segment includes the wholesale distribution of motor fuel to lessee dealers and independent dealers. We have exclusive motor fuel distribution contracts with lessee dealers who lease the property from us. We also have exclusive distribution contracts with independent dealers to distribute motor fuel but do not collect rent from the independent dealers.

The retail segment includes the retail sale of motor fuel at retail sites operated by commission agents and the sale of convenience merchandise items and the retail sale of motor fuel at company operated sites. A commission agent site is a retail site where we retain title to the motor fuel inventory and sell it directly to our end user customers. At commission agent retail sites, we manage motor fuel inventory pricing and retain the gross profit on motor fuel sales, less a commission to the agent who operates the retail site. Similar to our wholesale segment, we also generate revenues through leasing or subleasing real estate in our retail segment.

Unallocated items consist primarily of general and administrative expenses, depreciation, amortization and accretion expense, gains on dispositions and lease terminations, net, other income, interest expense and income tax expense. Total assets by segment are not presented as management does not currently assess performance or allocate resources based on that data.

During the three and six months ended June 30, 2024, respectively, we converted 42 and 95 sites from lessee dealer sites in the wholesale segment to company operated or commission sites in the retail segment, net. The sites converted during the first half of 2024 include 59 sites from the Applegreen Acquisition. See Note 2 for additional information. During the three and six months ended June 30, 2023, respectively, we converted 26 sites and 34 sites from lessee dealer sites in the wholesale segment to company operated or commission sites in the retail segment.

The following table reflects activity related to our reportable segments (in thousands):

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Three Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

509,335

 

 

$

494,450

 

 

$

—

 

 

$

1,003,785

 

Revenues from food and merchandise sales

 

 

—

 

 

 

105,393

 

 

 

—

 

 

 

105,393

 

Rent income

 

 

14,667

 

 

 

3,188

 

 

 

—

 

 

 

17,855

 

Other revenue

 

 

1,074

 

 

 

5,248

 

 

 

—

 

 

 

6,322

 

Total revenues

 

$

525,076

 

 

$

608,279

 

 

$

—

 

 

$

1,133,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

20,924

 

 

$

28,013

 

 

$

(20,760

)

 

$

28,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

580,935

 

 

$

455,315

 

 

$

—

 

 

$

1,036,250

 

Revenues from food and merchandise sales

 

 

—

 

 

 

83,666

 

 

 

—

 

 

 

83,666

 

Rent income

 

 

17,379

 

 

 

3,144

 

 

 

—

 

 

 

20,523

 

Other revenue

 

 

1,164

 

 

 

3,793

 

 

 

—

 

 

 

4,957

 

Total revenues

 

$

599,478

 

 

$

545,918

 

 

$

—

 

 

$

1,145,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

21,775

 

 

$

26,151

 

 

$

(20,073

)

 

$

27,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

959,914

 

 

$

884,302

 

 

$

—

 

 

$

1,844,216

 

Revenues from food and merchandise sales

 

 

—

 

 

 

181,825

 

 

 

—

 

 

 

181,825

 

Rent income

 

 

30,646

 

 

 

6,375

 

 

 

—

 

 

 

37,021

 

Other revenue

 

 

1,994

 

 

 

9,847

 

 

 

—

 

 

 

11,841

 

Total revenues

 

$

992,554

 

 

$

1,082,349

 

 

$

—

 

 

$

2,074,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

38,988

 

 

$

39,269

 

 

$

(63,125

)

 

$

15,132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,102,860

 

 

$

858,261

 

 

$

—

 

 

$

1,961,121

 

Revenues from food and merchandise sales

 

 

—

 

 

 

148,932

 

 

 

—

 

 

 

148,932

 

Rent income

 

 

35,335

 

 

 

6,508

 

 

 

—

 

 

 

41,843

 

Other revenue

 

 

2,411

 

 

 

7,248

 

 

 

—

 

 

 

9,659

 

Total revenues

 

$

1,140,606

 

 

$

1,020,949

 

 

$

—

 

 

$

2,161,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

43,444

 

 

$

40,918

 

 

$

(47,399

)

 

$

36,963

 

Receivables relating to the revenue streams above are as follows (in thousands):

 

 

June 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Receivables from fuel and merchandise sales

 

$

36,090

 

 

$

28,467

 

Receivables for rent and other lease-related charges

 

 

2,929

 

 

 

3,155

 

Total accounts receivable

 

$

39,019

 

 

$

31,622

 

Performance obligations are satisfied as fuel is delivered to the customer and as merchandise is sold to the consumer. Many of our fuel contracts with our customers include minimum purchase volumes measured on a monthly basis, for which our performance obligations are satisfied as services are rendered. Receivables from fuel are recognized on a per-gallon rate and are generally collected within 10 days of delivery.

The balance of unamortized costs incurred to obtain certain contracts with customers was $9.0 million and $10.0 million at June 30, 2024 and December 31, 2023, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.5 million for both the three months ended June 30, 2024 and 2023 and $1.0 million and $0.9 million for the six months ended June 30, 2024 and 2023, respectively.

Receivables from rent and other lease-related charges are generally collected at the beginning of the month.