XML 29 R21.htm IDEA: XBRL DOCUMENT v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2025, respectively, we converted six and 24 sites from lessee dealer sites in the wholesale segment to company operated or commission agent sites in the retail segment, net. 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 agent sites in the retail segment, net, including 59 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 June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

399,598

 

 

$

432,813

 

 

$

—

 

 

$

832,411

 

Revenues from food and merchandise sales

 

 

—

 

 

 

108,059

 

 

 

—

 

 

 

108,059

 

Rent income

 

 

11,851

 

 

 

3,608

 

 

 

—

 

 

 

15,459

 

Other revenue

 

 

1,388

 

 

 

4,608

 

 

 

—

 

 

 

5,996

 

Total revenues

 

 

412,837

 

 

 

549,088

 

 

 

—

 

 

 

961,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

384,433

 

 

 

394,024

 

 

 

—

 

 

 

778,457

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

77,553

 

 

 

—

 

 

 

77,553

 

Cost of goods sold - Rent expense

 

 

3,539

 

 

 

1,384

 

 

 

—

 

 

 

4,923

 

Gross profit

 

 

24,865

 

 

 

76,127

 

 

 

—

 

 

 

100,992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

23,468

 

 

 

—

 

 

 

23,468

 

Maintenance and environmental costs

 

 

1,425

 

 

 

7,048

 

 

 

—

 

 

 

8,473

 

Other items (a)

 

 

5,696

 

 

 

20,312

 

 

 

1,546

 

 

 

27,554

 

Operating income (loss)

 

$

17,744

 

 

$

25,299

 

 

$

(1,546

)

 

$

41,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2024 (b)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

492,696

 

 

 

455,161

 

 

 

—

 

 

 

947,857

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

75,544

 

 

 

—

 

 

 

75,544

 

Cost of goods sold - Rent expense

 

 

4,262

 

 

 

930

 

 

 

—

 

 

 

5,192

 

Gross profit

 

 

28,118

 

 

 

76,644

 

 

 

—

 

 

 

104,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

22,881

 

 

 

—

 

 

 

22,881

 

Maintenance and environmental costs

 

 

1,364

 

 

 

6,303

 

 

 

—

 

 

 

7,667

 

Other items (a)

 

 

5,830

 

 

 

19,447

 

 

 

20,760

 

 

 

46,037

 

Operating income (loss)

 

$

20,924

 

 

$

28,013

 

 

$

(20,760

)

 

$

28,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

765,359

 

 

$

817,334

 

 

$

—

 

 

$

1,582,693

 

Revenues from food and merchandise sales

 

 

—

 

 

 

197,400

 

 

 

—

 

 

 

197,400

 

Rent income

 

 

25,135

 

 

 

7,526

 

 

 

—

 

 

 

32,661

 

Other revenue

 

 

2,583

 

 

 

9,063

 

 

 

—

 

 

 

11,646

 

Total revenues

 

 

793,077

 

 

 

1,031,323

 

 

 

—

 

 

 

1,824,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

734,431

 

 

 

747,364

 

 

 

—

 

 

 

1,481,795

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

141,981

 

 

 

—

 

 

 

141,981

 

Cost of goods sold - Rent expense

 

 

7,127

 

 

 

2,691

 

 

 

—

 

 

 

9,818

 

Gross profit

 

 

51,519

 

 

 

139,287

 

 

 

—

 

 

 

190,806

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

46,034

 

 

 

—

 

 

 

46,034

 

Maintenance and environmental costs

 

 

2,894

 

 

 

15,119

 

 

 

—

 

 

 

18,013

 

Other items (a)

 

 

11,397

 

 

 

41,379

 

 

 

30,485

 

 

 

83,261

 

Operating income (loss)

 

$

37,228

 

 

$

36,755

 

 

$

(30,485

)

 

$

43,498

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Six Months Ended June 30, 2024 (b)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

928,673

 

 

 

818,976

 

 

 

—

 

 

 

1,747,649

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

130,533

 

 

 

—

 

 

 

130,533

 

Cost of goods sold - Rent expense

 

 

8,802

 

 

 

1,809

 

 

 

—

 

 

 

10,611

 

Gross profit

 

 

55,079

 

 

 

131,031

 

 

 

—

 

 

 

186,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

41,746

 

 

 

—

 

 

 

41,746

 

Maintenance and environmental costs

 

 

3,567

 

 

 

12,650

 

 

 

—

 

 

 

16,217

 

Other items (a)

 

 

12,524

 

 

 

37,366

 

 

 

63,125

 

 

 

113,015

 

Operating income (loss)

 

$

38,988

 

 

$

39,269

 

 

$

(63,125

)

 

$

15,132

 

(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 three and six months ended June 30, 2024, to conform to the current year presentation.

 

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Operating income

 

$

41,497

 

 

$

28,177

 

 

$

43,498

 

 

$

15,132

 

Other income, net

 

 

136

 

 

 

158

 

 

 

266

 

 

 

407

 

Interest expense

 

 

(12,569

)

 

 

(14,208

)

 

 

(25,413

)

 

 

(24,749

)

Income (loss) before income taxes

 

$

29,064

 

 

$

14,127

 

 

$

18,351

 

 

$

(9,210

)

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

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Receivables from fuel and merchandise sales

 

$

31,677

 

 

$

30,115

 

Receivables for rent and other lease-related charges

 

 

1,546

 

 

 

2,122

 

Total accounts receivable

 

$

33,223

 

 

$

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 $9.8 million and $8.9 million at June 30, 2025 and December 31, 2024, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.5 million for each of the three months ended June 30, 2025 and 2024 and $1.0 million for each of the six months ended June 30, 2025 and 2024, respectively.

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