Company News

GPM Investments Reports Nearly 12% Growth in Fuel Sales

Merchandise transactions up 2.4% during second quarter ending June 30
Photograph courtesy of GPM Investments

RICHMOND, Va. — Arko Corp., owner of convenience-store retailer GPM Investments, reported same-store increases of 2.4% in merchandise sales and 11.9% in fuel gallons sold in the second quarter of 2021.

“As a testament to the hard work and dedication of our team, as well as our multifaceted growth strategy, during the second quarter, we once again delivered strong financial performance,” said Arie Kotler, chairman, president and CEO of Arko.

“Not only was our in-store merchandising strategy on full display, but our M&A engine also proved to be highly productive, led by the continued successful integration of Empire Petroleum and the acquisition of the ExpressStop stores,” he added. “Integration efforts for the differentiated wholesale asset are running ahead of expectations as we’ve managed to extract notable cost synergies and generate incremental growth.”

Same-store merchandise sales increased 2.4% for the quarter and 4.3% excluding cigarettes as compared to the second quarter of 2020. Total merchandise contribution increased $15.3 million for the quarter compared to the prior year due to same-store sales growth coupled with a 140-basis point increase in merchandise margin and a $10.1 million contribution from the ExpressStop and Empire acquisitions,” the company said.

For second-quarter2021, retail fuel profitability increased approximately $2.2 million compared to the prior year period primarily due to the $15.6 million contribution from the ExpressStop and Empire acquisitions, which was offset by a decrease in same-store fuel profit of $11.9 million. While same-store gallons sold increased by 11.9% compared to second-quarter 2020, retail fuel margin cents per gallon decreased 19% to 34.3 cents per gallon primarily due to record-setting impact of the COVID-19 pandemic in the prior year.

Other highlights of the quarter included:

  • Operating income of $45.8 million for the quarter compared to $47.7 million in second-quarter 2020.
  • Net income for the quarter of $25.6 million compared to $32.5 million for second-quarter 2020.
  • Adjusted EBITDA of $75.7 million, or a 10.5% increase compared to the prior-year period.
  • Successful completion of the 19th acquisition of the company’s history, closing on the 60 retail convenience stores from the ExpressStop transaction during the quarter, adding 19 net new dealers during the quarter.
  • Extension of wholesale merchandise agreement with Core-Mark International and expanded coverage to include 1,055 locations, up from 865 previously.
  • Expansion of DoorDash delivery partnership, now operating in 684, or nearly half, of all company-operated stores.

With a strong balance sheet and clear strategic vision, we are excited to continue the strong execution of our priorities as we aim to drive growth and increase shareholder value,” Kotler said.

Arko Corp. owns 100% of GPM Investments LLC. Based in Richmond, Va., GPM Investments was founded in 2003 with 169 stores and has grown through acquisitions to become the sixth-largest convenience store chain in the United States, operating or supplying fuel to approximately 3,000 locations in 33 states and the District of Columbia, comprised of approximately 1,400 company-operated stores and approximately 1,650 dealer sites to which it supplies fuel.

The chain ranked No. 7 on CSP’s 2021 Top 202 list of the largest c-store chains in the United. States. 7-Eleven Inc.’s May closing of its acquisition of the Speedway chain from Marathon Petroleum moves GPM into the No. 6 position in the industry.

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