v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 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 months ended March 31, 2025, we converted 18 sites from lessee dealer sites in the wholesale segment to company operated or commission 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 March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

357,612

 

 

$

373,078

 

 

$

—

 

 

$

730,690

 

Revenues from food and merchandise sales

 

 

—

 

 

 

90,665

 

 

 

—

 

 

 

90,665

 

Rent income

 

 

10,539

 

 

 

4,021

 

 

 

—

 

 

 

14,560

 

Other revenue

 

 

1,106

 

 

 

4,809

 

 

 

—

 

 

 

5,915

 

Total revenues

 

 

369,257

 

 

 

472,573

 

 

 

—

 

 

 

841,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

343,159

 

 

 

333,218

 

 

 

—

 

 

 

676,377

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

63,713

 

 

 

—

 

 

 

63,713

 

Cost of goods sold - Rent expense

 

 

2,778

 

 

 

1,339

 

 

 

—

 

 

 

4,117

 

Gross profit

 

 

23,320

 

 

 

74,303

 

 

 

—

 

 

 

97,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

21,327

 

 

 

—

 

 

 

21,327

 

Maintenance and environmental costs

 

 

1,228

 

 

 

7,625

 

 

 

—

 

 

 

8,853

 

Other items (a)

 

 

5,209

 

 

 

21,047

 

 

 

17,437

 

 

 

43,693

 

Operating income (loss)

 

$

16,883

 

 

$

24,304

 

 

$

(17,437

)

 

$

23,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(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 (loss) before income taxes follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Operating income

 

$

23,750

 

 

$

2,001

 

Other income, net

 

 

157

 

 

 

130

 

Interest expense

 

 

(10,750

)

 

 

(12,844

)

Income (loss) before income taxes

 

$

13,157

 

 

$

(10,713

)

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

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Receivables from fuel and merchandise sales

 

$

31,267

 

 

$

28,316

 

Receivables for rent and other lease-related charges

 

 

677

 

 

 

937

 

Total accounts receivable

 

$

31,944

 

 

$

29,253

 

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 $9.7 million and $9.9 million at March 31, 2026 and December 31, 2025, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.5 million for both the three months ended March 31, 2026 and 2025.

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