XML 28 R20.htm IDEA: XBRL DOCUMENT v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 13. 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.

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

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Three Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

527,990

 

 

$

524,475

 

 

$

—

 

 

$

1,052,465

 

Revenues from food and merchandise sales

 

 

—

 

 

 

105,287

 

 

 

—

 

 

 

105,287

 

Rent income

 

 

10,634

 

 

 

4,032

 

 

 

—

 

 

 

14,666

 

Other revenue

 

 

1,149

 

 

 

5,450

 

 

 

—

 

 

 

6,599

 

Total revenues

 

 

539,773

 

 

 

639,244

 

 

 

—

 

 

 

1,179,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

510,189

 

 

 

478,014

 

 

 

—

 

 

 

988,203

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

74,261

 

 

 

—

 

 

 

74,261

 

Cost of goods sold - Rent expense

 

 

2,487

 

 

 

1,279

 

 

 

—

 

 

 

3,766

 

Gross profit

 

 

27,097

 

 

 

85,690

 

 

 

—

 

 

 

112,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

21,563

 

 

 

—

 

 

 

21,563

 

Maintenance and environmental costs

 

 

1,417

 

 

 

7,014

 

 

 

—

 

 

 

8,431

 

Other items (a)

 

 

4,913

 

 

 

20,118

 

 

 

22,490

 

 

 

47,521

 

Operating income (loss)

 

$

20,767

 

 

$

36,995

 

 

$

(22,490

)

 

$

35,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

885,602

 

 

$

897,553

 

 

$

—

 

 

$

1,783,155

 

Revenues from food and merchandise sales

 

 

—

 

 

 

195,952

 

 

 

—

 

 

 

195,952

 

Rent income

 

 

21,173

 

 

 

8,053

 

 

 

—

 

 

 

29,226

 

Other revenue

 

 

2,255

 

 

 

10,259

 

 

 

—

 

 

 

12,514

 

Total revenues

 

 

909,030

 

 

 

1,111,817

 

 

 

—

 

 

 

2,020,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

853,348

 

 

 

811,232

 

 

 

—

 

 

 

1,664,580

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

137,974

 

 

 

—

 

 

 

137,974

 

Cost of goods sold - Rent expense

 

 

5,265

 

 

 

2,618

 

 

 

—

 

 

 

7,883

 

Gross profit

 

 

50,417

 

 

 

159,993

 

 

 

—

 

 

 

210,410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

42,891

 

 

 

—

 

 

 

42,891

 

Maintenance and environmental costs

 

 

2,645

 

 

 

14,640

 

 

 

—

 

 

 

17,285

 

Other items (a)

 

 

10,122

 

 

 

41,163

 

 

 

39,927

 

 

 

91,212

 

Operating income (loss)

 

$

37,650

 

 

$

61,299

 

 

$

(39,927

)

 

$

59,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

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

 

(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.

 

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Operating income

 

$

35,272

 

 

$

41,497

 

 

$

59,022

 

 

$

43,498

 

Other income, net

 

 

212

 

 

 

136

 

 

 

369

 

 

 

266

 

Interest expense

 

 

(11,342

)

 

 

(12,569

)

 

 

(22,092

)

 

 

(25,413

)

Income before income taxes

 

$

24,142

 

 

$

29,064

 

 

$

37,299

 

 

$

18,351

 

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

 

 

 

June 30,

 

 

December 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

 

2024

 

Receivables from fuel and merchandise sales

 

$

33,639

 

 

$

28,316

 

 

$

30,115

 

Receivables for rent and other lease-related charges

 

 

846

 

 

 

937

 

 

 

2,122

 

Total accounts receivable

 

$

34,485

 

 

$

29,253

 

 

$

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 $9.6 million and $9.9 million at June 30, 2026 and December 31, 2025, 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, 2026 and 2025 and $1.0 million for each of the six months ended June 30, 2026 and 2025.

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