ARKO Corporation (ARKO)

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ARKO Reports Record Revenue and Profitability in 2022
February 27 2023 - 04:30PM
GlobeNewswire Inc.
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ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced financial results for the quarter and year ended December 31, 2022.

Fourth Quarter and Full Year 2022 Key Highlights1

Operating income for the quarter was $33.7 million, compared to $28.4 million in the prior year quarter. For the year, operating income was $167.0 million, compared to $142.1 million in 2021.
Net income for the quarter was $12.86 million, compared to $12.93 million in the prior year period. Net income for the year was $72.0 million, compared to $59.4 million for the prior year.
Adjusted EBITDA was $72.4 million for the quarter, compared to $58.4 million in the prior year period. For the year, Adjusted EBITDA was $301.1 million, compared to $256.6 million in 2021.
Completed two accretive acquisitions, marking 22 acquisitions closed since 2013: Certain assets of Quarles Petroleum, Incorporated (“Quarles”); and the equity of Pride Convenience Holdings LLC (“Pride”). Announced two pending acquisitions to acquire the assets of Transit Energy Group LLC (“TEG”) and WTG Fuels Holdings LLC (“WTG”).
Same store merchandise sales excluding cigarettes increased 4.3% for the quarter and 2.6% for the year compared to the prior year periods and increased 9.2% on a two-year stack basis for the quarter and 7.4% for the year.
Merchandise margin increased 50 basis points to 30.5% for the fourth quarter, and 110 basis points for the full year.
Merchandise revenue for the year was $1.65 billion, an increase of $31.2 million compared to 2021. Merchandise revenue for the fourth quarter was $403.1 million, an increase of $7 million compared to the prior year period.
Retail fuel gross profit increased 16.3% for the fourth quarter to $104.3 million and increased 19.0% for the year to $416.2 million.
ARKO Corp.’s Board of Directors declared a quarterly dividend of $0.03 per share of common stock.

“ARKO had another excellent year in 2022, with strong performance that highlights our strength as a convenience retailer, with a clear strategy that has continued to drive growth in our business,” said Arie Kotler, Chairman, President and Chief Executive Officer of ARKO. “Our core convenience store business performed very well as the many initiatives undertaken this year matured. We successfully pursued accretive acquisitions, closing two, with two more slated to close in the first half of the year. We are focused on disciplined capital allocation, enhancing stores, building value for our customers through multiple initiatives, and pursuing strategic acquisitions. With our strong cash flow and balance sheet, I have confidence that we can continue to execute and create stockholder value over the long-term.”

They missed estimates on revenue and earnings for Q4



Simply Wall St
Sat, March 27, 2021, 3:11 AM

Arko Corp. (NASDAQ:ARKO) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. Unfortunately, Arko delivered a serious earnings miss. Revenues of US$3.3b were 20% below expectations, and statutory earnings per share of US$0.14 missed estimates by 29%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

After the latest results, the three analysts covering Arko are now predicting revenues of US$6.57b in 2021. If met, this would reflect a huge 101% improvement in sales compared to the last 12 months. Arko is also expected to turn profitable, with statutory earnings of US$0.27 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.36b and earnings per share (EPS) of US$0.31 in 2021. While next year's revenue estimates increased, there was also a substantial drop in EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

The analysts also cut Arko's price target 5.1% to US$12.33, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in sales. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Arko analyst has a price target of US$13.00 per share, while the most pessimistic values it at US$12.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Arko's rate of growth is expected to accelerate meaningfully, with the forecast 101% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 16% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Arko
to grow faster than the wider industry.
The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Arko. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Arko. Long-term earnings power is much more important than next year's profits.

https://finance.yahoo.com/news/earnings-miss-arko-corp-missed-071130535.html

March 25 2021 - 07:05AM
GlobeNewswire Inc.

ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), a growing leader in the U.S. convenience store industry, today announced financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter and Full Year 2020 Key Highlights

Net earnings improvement of 66% for the quarter to a loss of $6.7 million compared to the prior quarter in 2019, and net income for the year of $30.1 million, an increase of 164%.
Operating cash flow generated of $47.3 million for the quarter, an increase of 774%, and $173.8 million for 2020, an increase of 302%.
Retail fuel margin for the quarter increase of 48% to 29.3 cents per gallon and increase for the full year of 54% to 31.9 cents per gallon, which more than offset reduced same stores gallons sold of 15.8% and 16.5% for the quarter and full year, respectively.
Same store merchandise sales increase of 3.3% and 3.5% for the fourth quarter and full year, respectively, with an increase of 4.5% in the period from April to December 2020, compared to the same period in the prior year. Same store merchandise margin increased to 27.1% from 26.6% for the quarter and increased to 27.1% from 27.0% for the full year.
Adjusted EBITDA, net of incremental bonuses for the quarter was $40.6 million, an increase of 249%; Adjusted EBITDA, net of incremental bonuses for the year was $183.4 million, an increase of 135%, which was in line with the Company’s previously increased expectations for full year 2020.
Completed the purchase of the business of Empire Petroleum Partners, LLC (the “Empire Acquisition”), materially enhancing our wholesale business and providing a future opportunity to meaningfully reduce fuel procurement costs. Added 1,453 wholesale sites to our network in addition to 84 retail sites, which increased our footprint through expansion into 10 new states and will double our gallons sold.
On December 22, 2020, ARKO acquired all minority interests in GPM Investments, LLC (GPM), our operating company. Additionally, we purchased all of the minority interests with the exception of a third-party with a 0.29% holding in one of our subsidiaries that distributes fuel to our locations (GPMP).

Arie Kotler, Chief Executive Officer of ARKO Corp., commented, “This quarter marked an important milestone as we became a U.S.-listed public company, and we are pleased to have reported strong financial results in the midst of a challenging operating environment. Our industry is highly fragmented and ripe for consolidation, and we are proud that we have built a large platform with our strong track record of acquisitions. We recently announced the pending acquisition of 61 sites from ExpressStop and remain focused on driving the next chapter of growth through our multi-year remodel program and other compelling organic growth opportunities that we expect will deliver long-term value for all of our stakeholders.”

on 3/19
Arko started at buy with $12 stock price target at Stifel Nicolaus

400k block at 9.72
earnings in the morning on 3/25

*ARKO shares are trading higher after Raymond James initiated coverage on the stock with a Strong Buy and a price target of $13 per share.

1/26/2021 BMO Capital Markets Initiated Coverage Outperform $13.00

last 8.19

GPM Embarks on Remodel Plan With GSP Design Expertise
Richmond-based c-store chain to redesign 360 sites with added foodservice capability to refresh some of its regional brands.

By Thomas Mulloy | December 23, 2020

https://cstoredecisions.com/2020/12/23/gpm-embarks-on-remodel-plan-with-gsp-design-expertise/

Over the next three to five years, Richmond, Va.-based c-store chain GPM Investments plans to remodel approximately 360 sites among its portfolio of brands in key locations across the country, including fas mart, E-Z Mart and Scotchman. Handling the design work for the new-look stores will be GSP, a leading provider of end-to-end retail services and solutions.

“Delivering on customer expectations is key for GPM,” said GPM Executive Vice President, Chief Merchandising and Marketing Officer Michael Bloom. “This redesign project is intended to meet and exceed these expectations to help revitalize our regional brands. We look forward to introducing our fresh, modern look to both new and existing customers across our markets.”

On announcing the redesign project, GSP called it an exciting time for GPM Investments and expressing gratitude be entrusted with the extensive remodeling initiative.

“Our goal is to build an unforgettable store experience that will successfully increase same-store sales as well as act as the formula for future rollouts,” said GSP Vice President of New Business Development Craig Neuhoff.

The newly designed stores will feature expanded food offerings including grab-and-go and prepared food menu options, frozen food and pizza.

Founded in 2003, GPM has grown to become the 7th largest convenience store chain in the United States with 2,930 locations in 33 states plus Washington D.C. It’s portfolio is comprised of 1,350 company-operated stores and 1,580 dealer sites to which it supplies fuel.

“The prototype our design team created takes a holistic approach to developing a cohesive store, fuel food service brand designed to surprise, delight and improve the overall customer experience,” explained GSP Vice President of Design Services Steven Cohen. “With long-term brand success in mind, GSP’s new store redesign package impacts the entire interior and exterior of the store and includes key category merchandising strategies such as beer caves, foodservice and a robust beverage experience intended to optimize traffic to categories within the store as well as create excitement about various in-store product offerings.”

The Largest U.S. Convenience Store Chains
How They Measured Up in 2018's Rankings

https://www.thebalancesmb.com/largest-convenience-store-chains-2892782

The Rankings Data

The Convenience Store News Top 100 compares rankings of the 100 largest convenience store chains from 2017 and 2018. The list is arranged numerically, according to the 2018 rank of the retail chain. The numbers on the left of each store indicate the rankings of the chain in 2018 and 2017, as measured by the total U.S. store count when compared to a total of 100 of the largest convenience store chains. Several stores tied in the top spots with the same ranking:

2018-1 2017-1 7-Eleven Inc. (7-Eleven, Stripes)

2018-2 2017-2 Alimentation Couche-Tard Inc. (Circle K, Corner Store, Dairy Mart, Diamond)

2018-3 2017-3 Shell Oil/Motiva Enterprises LLC (Shell)

2018-4 2017-4 Marathon Petroleum Corp. (Marathon, Rich Oil, Speedway)

2018-5 2017-5 Chevron Corp. (Chevron, Chevron ExtraMile, Texaco)

2018-6 2017-7 Exxon Mobil Corp. (Exxon, Exxon Tiger Mart, Mobil, Mobil Mart)

2018-7 2017-6 BP North America (Amoco, Am-Pm, Arco, Arco Thrifty, BP,)

2018-8 2017-10 Casey’s General Stores Inc. (Casey’s General Store)

2018-9 2017-8 Sunoco LP (APlus, Aloha Island Mart, Coastal,)

2018-10 2017-36 Andeavor Corp. (Am-Pm/Andeavor, Flyers, Giant, Giant Service,)

2018-11 2017-11 CITGO Petroleum Corp. (CITGO)

2018-12 2017-14 GPM Investments LLC (Admiral Petroleum, Apple Market, BreadBox,)

2018-13 2017-12 ConocoPhillips/Phillips 66 (76, Conoco, Phillips 66)

2018-14 2017-13 Cumberland Farms Inc. (Cumberland Farms, Gulf)

2018-15 2017-n/a Valero Energy Corp. (Valero)

2018-16 2017-n/a EG Group (U.S. HQ) (Fresh Eats MKT, Kroger Express, Kroger Fuel)

2018-17 2017-16 Wawa Inc. (Wawa)

2018-18 2017-17 QuikTrip Corp. (QuikTrip)

2018-19 2017-18 RaceTrac Petroleum Inc. (RaceTrac, Raceway)

2018-20 2017-20 Pilot Flying J (Flying J, Mr. Fuel, Pilot Express, Pilot Food)

2018-21 2017-19 Military (Coast Guard Mini Mart, Marine Corps Shoppette,)

2018-22 2017-23 Kwik Trip Inc. (Kwik Star, Kwik Trip, Tobacco Outlet Plus Grocery)

2018-23 2017-21 Sheetz Inc. (Sheetz)

2018-24 2017-25 TravelCenters of America LLC (Minit Mart, Petro Stopping Center,)

2018-25 2017-27 Love’s Country Stores Inc. (Love’s Country Store, Love’s Travel Stop)

2018-26 2017-26 CHS Inc. (Ampride, Cenex, CHS, Zip Trip)

2018-27 2017-28 Kum & Go LC (Kum & Go)

2018-28 2017-29 COPEC Inc. (Delta Express, Discount Food Mart, Favorite)

2018-29 2017-30 Stewart’s Shops Corp. (Stewart’s Shop)

2018-30 2017-32 Allsup’s Convenience Stores Inc. (Allsup’s)

2018-31 2017-33 Maverik Inc. (Maverik)

2018-32 2017-37 Murphy USA Inc. (Murphy Express, Murphy USA)

2018-33 2017-38 United Pacific (C Stop, My Goods Market, United Oil,)

2018-34 2017-42 Global Partners LP/Alliance Energy Corp. (Alltown, Convenience Plus, Fast Freddie’s,)

2018-35 2017-39 Jacksons Food Stores Inc. (Jacksons Food Store)

2018-36 2017-31 Dunne Manning (Choice, Express Lane, Hy-Miler, Joe’s Kwik)

2018-37 2017-n/a Cal’s Convenience Inc. Stripes)

2018-38 2017-41 Landmark Industries Inc. (Timewise Food Store)

2018-39 2017-40 Fikes Wholesale Inc. (CEFCO Food Store, Food Fast)

2018-40 2017-35 United Refining Co. of Pennsylvania (Country Fair, Kwik Fill, Kwik Fill &)

2018-41 2017-46 Two Farms Inc. (Royal Farms)

2018-42 2017-43 Thorntons Inc. (Thorntons)

2018-43 2017-44 Meijer Inc. (Meijer Gas Station)

2018-44 2017-45 United Dairy Farmers (United Dairy Farmers)

2018-45 2017-47 Giant Eagle Inc. (GetGo)

2018-46 2017-50 QuickChek Inc. (QuickChek)

2018-47 2017-52 Sinclair Oil Corp. (Sinclair)

2018-48 2017-54 Hy-Vee Food Stores Inc. (Hy-Vee Gas Station)

2018-49 2017-55 Krauszer’s Food Store (Krauszer’s Food Store)

2018-50 2017-51 Convenient Food Mart Inc. (Convenient Food Mart)

2018-51 2017-31 CrossAmerica Partners LP (Freedom Valu Center, Jet Pep)

2018-51 2017-56 Blarney Castle Oil Co. (E Z Mart)

2018-53 2017-57 Go Mart Inc. (Go Mart)

2018-54 2017-108 Enmarket Inc. (E-Z Shop, Enmarket)

2018-54 2017-53 Kwik Stop Inc. (Kwik Stop)

2018-56 2017-59 Martin & Bayley Inc. (Huck’s)

2018-57 2017-49 Clark Brands LLC (Clark)

2018-57 2017-58 Englefield Oil Co. (Duchess Shoppe)

2018-59 2017-62 Terrible Herbst Inc. (Terrible Herbst)

2018-60 2017-60 7-Eleven Stores of Oklahoma (7-Eleven)

2018-61 2017-61 Plaid Pantries Inc. (Plaid Pantry)

2018-61 2017-110 Pester Marketing Co. (Alta Convenience, Kwik Stop, Smitty’s)

2018-63 2017-63 Mirabito Energy Products (Mirabito)

2018-64 2017-64 Little General Stores Inc. (Little General)

2018-64 2017-65 Stinker Stations (Stinker Stores)

2018-66 2017-68 True North Energy (True North)

2018-67 2017-66 Town Pump Inc. (Town Pump)

2018-68 2017-69 Panjwani Energy LLC (Star Stop)

2018-69 2017-75 C.A.R. Enterprises Inc. (2 Go Mart, Rebel)

2018-69 2017-72 M.M. Fowler Inc. (Family Fare)

2018-71 2017-86 Croton Holding Co. (Par Mar Stores)

2018-71 2017-n/a Empire Petroleum Partners LLC (Fast Market, Fiesta Mart, Quik Way Food Mart)

2018-73 2017-71 Express Mart Franchising Corp. (Express Mart)

2018-73 2017-84 Sampson Bladen Oil Co. Inc. (Han-dee Hugo’s)

2018-73 2017-94 BW Gas & Convenience LLC (Yesway)

2018-73 2017-67 Sam’s Food Store (Chucky’s Food Store, Hess/Aldin Associates,)

2018-77 2017-74 Victory Marketing LLC (Sprint Mart)

2018-77 2017-70 Tri Star Energy LLC (Daily’s, T Fuel, Tri Star Energy, Twice Daily)

2018-79 2017-73 Reid Stores Inc. (Crosby’s)

2018-80 2017-76 Gulshan Enterprises (Handi Plus, Handi Stop)

2018-81 2017-79 Johnson Oil Co. (Express Lane)

2018-81 2017-77 Toot N Totum Food Store Inc. (Toot N Totum)

2018-83 2017-78 The Spinx Co. Inc. (Spinx Store)

2018-84 2017-83 Newcomb Oil Co. (Five Star Food Mart)

2018-85 2017-82 FKG Oil Co. (Moto Mart)

2018-85 2017-80 Buchanan Oil Co. (Bucky’s)

2018-87 2017-n/a Turn Outz Inc. (One Stop WV, Stop In)

2018-87 2017-81 C. N. Brown Co. (Big Apple)

2018-89 2017-89 Southwest Georgia Oil Co. (Inland Sun Stop, S&S Food Store,)

2018-90 2017-87 MFA Oil Co. (Break Time, MFA Oil, Petro Card 24)

2018-91 2017-88 Gate Petroleum Co. (Gate)

2018-92 2017-91 CHR Corp. (Rutter’s)

2018-92 2017-90 Family Express Corp. (Family Express)

2018-94 2017-100 Southeast Petro Distribution (Sunshine Express, Sunshine Food Mart)

2018-95 2017-93 7-Eleven Hawaii Inc. (7-Eleven)

2018-95 2017-97 Weigel’s Stores Inc. (Weigel’s, Jug O Milk Store)

2018-97 2017-101 Sunmart Inc. (Sunmart)

2018-97 2017-98 Dandy Mini Marts Inc. (Dandy Mini Mart)

2018-97 2017-107 Clark’s Pump-N-Shop Inc. (Clark’s Pump-N-Shop)

2018-100 2017-96 Walters-Dimmick Petroleum Inc. (Johnny’s Markets)

2018-100 2017-99 Certified Oil Co. (Certified)

Haymaker Acquisition Corp. II, ARKO Holdings, GPM Investments Close Business Combination Under New Company ARKO Corp.; Will Trade Under Ticker 'ARKO' Starting Dec. 23
4:38 pm ET December 22, 2020 (Benzinga) Print

Haymaker Acquisition Corp. II, ARKO Holdings Ltd. and GPM Investments, LLC Close Business Combination under New Company ARKO Corp.

NEW YORK, Dec. 22, 2020 (GLOBE NEWSWIRE) -- Haymaker Acquisition Corp. II (NASDAQ:HYAC) ("Haymaker"), a publicly traded special purpose acquisition company and ARKO Holdings Ltd. ("Arko Holdings"), an Israeli public holding company (TASE: AKHO) whose primary asset is a controlling stake in GPM Investments, LLC ("GPM"), a rapidly growing leader in the U.S. convenience store industry, announced today that they have satisfied all closing conditions and completed their previously announced business combination. Under the terms of the business combination agreement, Haymaker and Arko Holdings combined under a new company, ARKO Corp. ("ARKO"). Shares of ARKO common stock and ARKO warrants are expected to trade on the Nasdaq Stock Market under the symbols "ARKO" and "ARKOW," respectively, beginning on December 23, 2020. The business combination was approved by Haymaker's shareholders on December 8, 2020 and by Arko Holdings' shareholders on November 18, 2020.


Arie Kotler, Chief Executive Officer of ARKO, commented, "Today marks an important milestone as we drive the next chapter of our growth as a U.S.-listed public company. We operate in an attractive and highly fragmented industry and have built a proven platform for acquisitions, as demonstrated by our successful track record of closing transactions. In combination with our attractive remodel program, and the compelling organic growth opportunities we are executing against, we look forward to building on the success we have driven to date, and delivering value for all of our stakeholders."

Remarking from Haymaker, Steven Heyer and Andrew Heyer stated, "We are excited to announce the closing of our combination with Arko Holdings. Arie and his talented team have established a proven platform for growth that will be further strengthened by this combination, and enhanced by the planned multi-year remodel and other organic initiatives. We are looking forward to seeing the team capitalize on the attractive opportunities that lie ahead through established strategic initiatives that are underway."

The business combination was funded through a combination of cash in Haymaker's trust account and a private placement investment of $100 million in convertible preferred stock from affiliates of MSD Partners, L.P. for a total amount of $295 million.

Raymond James & Associates, Inc. served as lead financial and capital markets advisor. Nomura Securities International, Inc., Stifel, Nicolaus & Company, Incorporated, BMO Capital Markets Corp., and Citigroup Global Markets Inc. served as financial advisors and capital markets advisors to Haymaker. Cantor Fitzgerald & Co. served as capital markets advisor to Haymaker and Morgan Stanley & Co. LLC served as financial and capital markets advisor to Arko Holdings. DLA Piper LLP (US), Gornitzky & Co., and Ellenoff Grossman & Schole LLP served as legal advisors to Haymaker. Greenberg Traurig, LLP and S. Friedman & Co. acted as legal advisors to Arko Holdings.

About GPM:

Based in Richmond, VA, GPM was founded in 2003 with 169 stores and has grown through acquisitions to become the 7th largest convenience store chain in the United States, with approximately 3,000 locations comprised of approximately 1,350 company-operated stores and 1,600 dealer sites to which it supplies fuel, in 33 states and Washington D.C. GPM operates in three segments: retail, which consists of fuel and merchandise sales to retail consumers; wholesale, which supplies fuel to third-party dealers and consignment agents; and GPM Petroleum, which supplies fuel to GPM and its subsidiaries selling fuel (both in the retail and wholesale segments) as well as subwholesalers and bulk purchasers.

About Haymaker Acquisition Corp II:

Haymaker was a $400 million blank check company formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Haymaker's acquisition and value creation strategy was to identify, acquire and, after its initial business combination, build a company in the consumer, retail, media, or hospitality industries. Haymaker was led by Chief Executive Officer and Executive Chairman Steven J. Heyer, President Andrew R. Heyer, Chief Financial Officer Christopher Bradley, and Senior Vice President Joseph Tonnos. For more information about Haymaker, please visit www.haymakeracquisition.com.