Arko Corp., the parent company of convenience retailer GPM Investments, reported net loss for first-quarter 2024was $0.6 million compared to $2.5 millionfor the prior-year quarter.
Adjusted EBITDA(earnings before interest, taxes, depreciation and amortization) for first-quarter 2024 were $36.6 million versus the prior-year quarter driven by lower fuel contribution, regulatory state-wide elimination of Virginia gaming income, and increases in same store operating expenses.
- GPM Investments is No. 6 on CSP’s 2024 Top 40 Update to the 2023 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2024 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
As part of the convenience-store retailer’s focus on accelerating organic growth, the company said it is in the process of developing a multi-year transformation plan, including converting a “meaningful number of locations as dealer sites within the company’s wholesale segment,” to improve profitability Arie Kotler, CEO, president and chairman, said on the company's earnings call.
Other highlights included:
- More aggressive and targeted capital allocation toward strategic sub-segments of its retail stores to drive traffic and improve profitability.
- Continued development and execution of a pilot program to improve customer experience and value proposition, in partnership with a nationally renowned consulting firm, with plans to expand refined offering across larger store network.
“We firmly believe our current valuation does not fully reflect the underlying value of our business, which has grown to become one of the largest convenience store operators in the United States and a Fortune 500 company,” Kotler said. “Given this disconnect, I am pleased to announce that the board has approved an expansion of our share repurchase program to $125 million, which we believe will support long-term value creation for our valued stockholders.”
GPM, Richmond, Virginia, has more than 1,540 c-stores under more than 25 regional store brands, including Fas Mart, Li’l Cricket and Scotchman.
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