v3.26.3
Segment Reporting
 9 Months Ended
Sep. 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 nine months ended September 30, 2025, respectively, we converted 13 and 37 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 September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

535,803

 

 

$

530,601

 

 

$

—

 

 

$

1,066,404

 

Revenues from food and merchandise sales

 

 

—

 

 

 

108,024

 

 

 

—

 

 

 

108,024

 

Rent income

 

 

10,162

 

 

 

4,031

 

 

 

—

 

 

 

14,193

 

Other revenue

 

 

1,023

 

 

 

4,931

 

 

 

—

 

 

 

5,954

 

Total revenues

 

 

546,988

 

 

 

647,587

 

 

 

—

 

 

 

1,194,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

521,436

 

 

 

493,051

 

 

 

—

 

 

 

1,014,487

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

75,272

 

 

 

—

 

 

 

75,272

 

Cost of goods sold - Rent expense

 

 

2,433

 

 

 

1,257

 

 

 

—

 

 

 

3,690

 

Gross profit

 

 

23,119

 

 

 

78,007

 

 

 

—

 

 

 

101,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

21,680

 

 

 

—

 

 

 

21,680

 

Maintenance and environmental costs

 

 

821

 

 

 

7,858

 

 

 

—

 

 

 

8,679

 

Other items (a)

 

 

4,972

 

 

 

20,943

 

 

 

21,141

 

 

 

47,056

 

Operating income (loss)

 

$

17,326

 

 

$

27,526

 

 

$

(21,141

)

 

$

23,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

401,161

 

 

$

438,828

 

 

$

—

 

 

$

839,989

 

Revenues from food and merchandise sales

 

 

—

 

 

 

110,685

 

 

 

—

 

 

 

110,685

 

Rent income

 

 

11,274

 

 

 

3,893

 

 

 

—

 

 

 

15,167

 

Other revenue

 

 

1,221

 

 

 

4,785

 

 

 

—

 

 

 

6,006

 

Total revenues

 

 

413,656

 

 

 

558,191

 

 

 

—

 

 

 

971,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

385,443

 

 

 

398,096

 

 

 

—

 

 

 

783,539

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

78,704

 

 

 

—

 

 

 

78,704

 

Cost of goods sold - Rent expense

 

 

3,428

 

 

 

1,406

 

 

 

—

 

 

 

4,834

 

Gross profit

 

 

24,785

 

 

 

79,985

 

 

 

—

 

 

 

104,770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

23,080

 

 

 

—

 

 

 

23,080

 

Maintenance and environmental costs

 

 

1,543

 

 

 

7,155

 

 

 

—

 

 

 

8,698

 

Other items (a)

 

 

5,358

 

 

 

20,405

 

 

 

19,142

 

 

 

44,905

 

Operating income (loss)

 

$

17,884

 

 

$

29,345

 

 

$

(19,142

)

 

$

28,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,421,405

 

 

$

1,428,154

 

 

$

—

 

 

$

2,849,559

 

Revenues from food and merchandise sales

 

 

—

 

 

 

303,976

 

 

 

—

 

 

 

303,976

 

Rent income

 

 

31,335

 

 

 

12,084

 

 

 

—

 

 

 

43,419

 

Other revenue

 

 

3,278

 

 

 

15,190

 

 

 

—

 

 

 

18,468

 

Total revenues

 

 

1,456,018

 

 

 

1,759,404

 

 

 

—

 

 

 

3,215,422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

1,374,784

 

 

 

1,304,283

 

 

 

—

 

 

 

2,679,067

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

213,246

 

 

 

—

 

 

 

213,246

 

Cost of goods sold - Rent expense

 

 

7,698

 

 

 

3,875

 

 

 

—

 

 

 

11,573

 

Gross profit

 

 

73,536

 

 

 

238,000

 

 

 

—

 

 

 

311,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

64,570

 

 

 

—

 

 

 

64,570

 

Maintenance and environmental costs

 

 

3,466

 

 

 

22,498

 

 

 

—

 

 

 

25,964

 

Other items (a)

 

 

15,094

 

 

 

62,107

 

 

 

61,068

 

 

 

138,269

 

Operating income (loss)

 

$

54,976

 

 

$

88,825

 

 

$

(61,068

)

 

$

82,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Nine Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,166,520

 

 

$

1,256,162

 

 

$

—

 

 

$

2,422,682

 

Revenues from food and merchandise sales

 

 

—

 

 

 

308,085

 

 

 

—

 

 

 

308,085

 

Rent income

 

 

36,409

 

 

 

11,419

 

 

 

—

 

 

 

47,828

 

Other revenue

 

 

3,804

 

 

 

13,848

 

 

 

—

 

 

 

17,652

 

Total revenues

 

 

1,206,733

 

 

 

1,589,514

 

 

 

—

 

 

 

2,796,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

1,119,873

 

 

 

1,145,461

 

 

 

—

 

 

 

2,265,334

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

220,685

 

 

 

—

 

 

 

220,685

 

Cost of goods sold - Rent expense

 

 

10,555

 

 

 

4,097

 

 

 

—

 

 

 

14,652

 

Gross profit

 

 

76,305

 

 

 

219,271

 

 

 

—

 

 

 

295,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

69,113

 

 

 

—

 

 

 

69,113

 

Maintenance and environmental costs

 

 

4,437

 

 

 

22,274

 

 

 

—

 

 

 

26,711

 

Other items (a)

 

 

16,755

 

 

 

61,785

 

 

 

49,627

 

 

 

128,167

 

Operating income (loss)

 

$

55,113

 

 

$

66,099

 

 

$

(49,627

)

 

$

71,585

 

(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 include 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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Operating income

 

$

23,711

 

 

$

28,087

 

 

$

82,733

 

 

$

71,585

 

Other income, net

 

 

238

 

 

 

152

 

 

 

607

 

 

 

418

 

Interest expense

 

 

(12,176

)

 

 

(11,786

)

 

 

(34,268

)

 

 

(37,199

)

Income before income taxes

 

$

11,773

 

 

$

16,453

 

 

$

49,072

 

 

$

34,804

 

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

 

 

 

September 30,

 

 

December 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

 

2024

 

Receivables from fuel and merchandise sales

 

$

31,606

 

 

$

28,316

 

 

$

30,115

 

Receivables for rent and other lease-related charges

 

 

774

 

 

 

937

 

 

 

2,122

 

Total accounts receivable

 

$

32,380

 

 

$

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 $9.9 million at both September 30, 2026 and December 31, 2025. Amortization of such costs is recorded against operating revenues and amounted to $0.5 million for each of the three months ended September 30, 2026 and 2025 and $1.5 million and $1.6 million for the nine months ended September 30, 2026 and 2025, respectively.

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