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Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 14. SEGMENT REPORTING

We conduct our business in two reportable 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 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 months ended March 31, 2025 and 2024, respectively, we converted 18 and 53 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 quarter of 2024 include 31 sites from the Applegreen Acquisition. See Note 2 for additional information.

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

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

365,761

 

 

$

384,521

 

 

$

—

 

 

$

750,282

 

Revenues from food and merchandise sales

 

 

—

 

 

 

89,341

 

 

 

—

 

 

 

89,341

 

Rent income

 

 

13,284

 

 

 

3,918

 

 

 

—

 

 

 

17,202

 

Other revenue

 

 

1,195

 

 

 

4,455

 

 

 

—

 

 

 

5,650

 

Total revenues

 

 

380,240

 

 

 

482,235

 

 

 

—

 

 

 

862,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

349,997

 

 

 

353,341

 

 

 

—

 

 

 

703,338

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

64,428

 

 

 

—

 

 

 

64,428

 

Cost of goods sold - Rent expense

 

 

3,588

 

 

 

1,307

 

 

 

—

 

 

 

4,895

 

Gross profit

 

 

26,655

 

 

 

63,159

 

 

 

—

 

 

 

89,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

22,566

 

 

 

—

 

 

 

22,566

 

Maintenance and environmental costs

 

 

1,469

 

 

 

8,072

 

 

 

—

 

 

 

9,541

 

Other items (a)

 

 

5,701

 

 

 

21,066

 

 

 

28,939

 

 

 

55,706

 

Operating income (loss)

 

$

19,485

 

 

$

11,455

 

 

$

(28,939

)

 

$

2,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2024 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

450,579

 

 

$

389,852

 

 

$

—

 

 

$

840,431

 

Revenues from food and merchandise sales

 

 

—

 

 

 

76,432

 

 

 

—

 

 

 

76,432

 

Rent income

 

 

15,979

 

 

 

3,187

 

 

 

—

 

 

 

19,166

 

Other revenue

 

 

920

 

 

 

4,599

 

 

 

—

 

 

 

5,519

 

Total revenues

 

 

467,478

 

 

 

474,070

 

 

 

—

 

 

 

941,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

435,976

 

 

 

363,816

 

 

 

—

 

 

 

799,792

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

54,989

 

 

 

—

 

 

 

54,989

 

Cost of goods sold - Rent expense

 

 

4,540

 

 

 

879

 

 

 

—

 

 

 

5,419

 

Gross profit

 

 

26,962

 

 

 

54,386

 

 

 

—

 

 

 

81,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

18,865

 

 

 

—

 

 

 

18,865

 

Maintenance and environmental costs

 

 

2,203

 

 

 

6,348

 

 

 

—

 

 

 

8,551

 

Other items (a)

 

 

6,694

 

 

 

17,918

 

 

 

42,365

 

 

 

66,977

 

Operating income (loss)

 

$

18,065

 

 

$

11,255

 

 

$

(42,365

)

 

$

(13,045

)

 

(a)
For the Wholesale and Retail segments, other segment items includes real estate taxes, utilities, management fees, insurance and other operating expenses. For the Retail segment, other segment items also includes rent expense, store supplies and shrink. Other segment items that are not allocated to a segment include general and administrative expenses, depreciation, amortization and accretion expense and gains/losses on dispositions and lease terminations, net.
(b)
In connection with the retrospective adoption of ASU 2023-07, "Improvements in Reportable Segment Disclosures," we recast our results for the first quarter of 2024 to conform to the current year presentation.

 

A reconciliation from operating income (loss) to loss before income taxes follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Operating income (loss)

 

$

2,001

 

 

$

(13,045

)

Other income, net

 

 

130

 

 

 

249

 

Interest expense

 

 

(12,844

)

 

 

(10,541

)

Loss before income taxes

 

$

(10,713

)

 

$

(23,337

)

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

 

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Receivables from fuel and merchandise sales

 

$

27,380

 

 

$

30,115

 

Receivables for rent and other lease-related charges

 

 

2,009

 

 

 

2,122

 

Total accounts receivable

 

$

29,389

 

 

$

32,237

 

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 $9.3 million and $8.9 million at March 31, 2025 and December 31, 2024, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.5 million for both the three months ended March 31, 2025 and 2024.

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