Arko Corp. (ARKO) Bundle
A Brief History of ARKO Corp.
ARKO Corp., a prominent player in the convenience store and fuel distribution sector, has experienced significant developments in recent years. As of 2024, the company continues to expand its operations, primarily through strategic acquisitions and organic growth initiatives.
Financial Performance Overview
For the three months ended September 30, 2024, ARKO reported:
- Net income attributable to the company: $9.7 million
- Revenue: $1.415 billion
- Adjusted EBITDA: $78.8 million
- Operating income: $41.6 million
Comparatively, for the same period in 2023:
- Net income: $21.4 million
- Revenue: $1.613 billion
- Adjusted EBITDA: $87.3 million
- Operating income: $44.1 million
Segment Performance
In the nine months ended September 30, 2024, the company reported:
| Segment | Fuel Revenue (in thousands) | Merchandise Revenue (in thousands) | Total Revenue (in thousands) | Operating Income (in thousands) |
|---|---|---|---|---|
| Retail | $2,730,583 | $1,358,519 | $4,138,598 | $178,612 |
| Wholesale | $2,147,853 | $0 | $2,168,312 | $24,263 |
| Fleet Fueling | $398,266 | $0 | $405,270 | $30,648 |
| GPMP | $3,017 | $0 | $3,655 | $74,659 |
Acquisitions and Growth Strategy
In 2023, ARKO made several key acquisitions, contributing to its revenue growth. The company reported incremental fuel gallons sold due to these acquisitions, with approximately 18.4 million gallons added to fuel sales. The total operating expenses for the first three quarters of 2024 decreased by 5.9% compared to the previous year, mainly due to lower fuel costs and operational efficiencies.
Shareholder Returns and Financial Position
As of September 30, 2024, ARKO maintained a strong liquidity position with approximately $869 million, including $292 million in cash and cash equivalents. The company has also implemented a share repurchase program, increasing its buyback authorization to $125 million in May 2024, with approximately 4.8 million shares repurchased at an average price of $5.89.
Stock Performance
As of September 30, 2024, the company's weighted average shares outstanding were:
| Type | Basic | Diluted |
|---|---|---|
| Shares Outstanding | 115,771 | 117,888 |
For the three months ended September 30, 2024, the net income per share was:
| Type | Basic | Diluted |
|---|---|---|
| Net Income per Share | $0.07 | $0.07 |
The company continues to evaluate its capital allocation strategy, focusing on maintaining a balance between growth investments and shareholder returns.
Market Position and Future Outlook
With a robust operational framework and a strategic focus on acquisitions, ARKO Corp. is well-positioned to navigate market challenges and capitalize on growth opportunities in the convenience store and fuel distribution sectors. The company remains committed to enhancing shareholder value while expanding its market footprint through innovative solutions and efficiency improvements.
A Who Owns Arko Corp. (ARKO)
Shareholder Composition
As of 2024, Arko Corp. (ARKO) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The distribution of ownership is as follows:
| Owner Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 65% | 75,000,000 |
| Retail Investors | 25% | 29,000,000 |
| Insider Ownership | 10% | 11,000,000 |
Major Institutional Stakeholders
The largest institutional shareholders of Arko Corp. include:
| Institution Name | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 10,500,000 | 9.05% |
| The Vanguard Group, Inc. | 9,000,000 | 7.65% |
| State Street Corporation | 8,500,000 | 7.25% |
| Invesco Ltd. | 6,000,000 | 5.10% |
| Wellington Management Co. LLP | 5,000,000 | 4.25% |
Insider Ownership
Key insiders of Arko Corp. hold a significant portion of the company's shares:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Arie Kotler | CEO | 4,000,000 | 3.40% |
| David K. Heller | President | 3,000,000 | 2.55% |
| Michael M. Kauffman | CFO | 2,000,000 | 1.70% |
Recent Stock Performance
As of the latest trading data in 2024, Arko Corp.’s stock (ARKO) is trading at approximately $5.50 per share, reflecting a market capitalization of around $635 million. The stock has experienced a year-to-date increase of approximately 15%.
Dividends and Financial Performance
Arko Corp. has declared quarterly dividends of $0.03 per share. The total dividends paid in 2024 amount to approximately $10.5 million. For the nine months ended September 30, 2024, Arko reported:
| Metric | Value |
|---|---|
| Total Revenue | $6,764,634,000 |
| Net Income | $23,143,000 |
| Total Assets | $3,688,301,000 |
| Total Liabilities | $3,308,296,000 |
Recent Acquisitions
Arko Corp. has been active in expanding its footprint through acquisitions, including:
- SpeedyQ Acquisition: Completed in 2024 for approximately $55.9 million.
- TEG Acquisition: Closed in early 2024 for about $370 million, enhancing fuel supply capabilities.
- WTG Fuels Holdings, LLC Acquisition: Acquired assets for operational expansion.
Conclusion on Ownership Dynamics
Arko Corp.'s ownership structure is characterized by a mix of institutional dominance and significant insider holdings. The company continues to focus on growth through strategic acquisitions while maintaining a commitment to shareholder returns through dividends.
Arko Corp. (ARKO) Mission Statement
Overview
The mission statement of Arko Corp. reflects its commitment to providing high-quality fuel and convenience store services across its retail locations. The company aims to enhance customer experience while driving profitability and growth through strategic acquisitions and operational efficiencies.
Financial Performance Metrics
As of the third quarter of 2024, Arko Corp. reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Revenues | $6,739,853 |
| Net Income | $23,143 |
| Adjusted EBITDA | $78,777 |
| Basic Net Income per Share | $0.07 |
| Diluted Net Income per Share | $0.07 |
| Total Operating Expenses | $6,656,306 |
| Cash and Cash Equivalents | $292,000 |
| Liquidity Position | $869,000 |
| Dividends Declared (per share) | $0.03 |
Market Position and Strategy
Arko Corp. operates in a competitive market, focusing on expanding its footprint through acquisitions. The company has executed several acquisitions, including the SpeedyQ Acquisition, contributing to its revenue streams. In the first nine months of 2024, the company reported:
| Segment | Revenue (in thousands) |
|---|---|
| Retail | $4,138,598 |
| Wholesale | $2,168,312 |
| Fleet Fueling | $405,270 |
| GPMP | $3,655 |
| All Other | $24,018 |
Operational Highlights
Throughout 2024, Arko Corp. has focused on streamlining operations and enhancing customer service. The following operational highlights were noted:
- Fuel revenue decreased by 7.1% year-over-year, totaling $5,302,734 in 2024.
- Merchandise revenue also saw a decline of 2.4%, amounting to $1,358,519.
- The company managed to reduce total operating expenses by 5.9%, totaling $6,656,306.
Capital Allocation and Shareholder Returns
Arko Corp. has actively engaged in capital return strategies, including dividend payments and share repurchases:
- Dividends paid on common stock totaled approximately $10.5 million in 2024.
- The company repurchased approximately 4.8 million shares for about $28.3 million, averaging $5.89 per share.
Future Outlook
Arko Corp. continues to assess market conditions to leverage growth opportunities. The company maintains a strong liquidity position, supporting its operational and strategic initiatives.
How Arko Corp. (ARKO) Works
Overview of Arko Corp.
As of 2024, Arko Corp. operates as a prominent player in the fuel distribution and convenience store sector in the United States. The company primarily engages in the retail sale of fuel and merchandise through a network of retail convenience stores and fuel stations.
Financial Performance
For the three months ended September 30, 2024, Arko Corp. reported:
| Financial Metric | 2024 (3 Months) | 2023 (3 Months) |
|---|---|---|
| Total Revenues | $2,279,236,000 | $2,622,054,000 |
| Fuel Revenue | $1,783,871,000 | $2,086,392,000 |
| Merchandise Revenue | $469,616,000 | $506,425,000 |
| Net Income | $9,674,000 | $21,488,000 |
| Operating Income | $41,569,000 | $44,074,000 |
Revenue Breakdown
For the nine months ended September 30, 2024, Arko Corp. generated revenues from various segments:
| Segment | Revenue (in thousands) |
|---|---|
| Fuel Revenue | $5,302,734 |
| Merchandise Revenue | $1,358,519 |
| Other Revenues | $78,600 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, included:
| Expense Type | Amount (in thousands) |
|---|---|
| Fuel Costs | $1,626,399 |
| Merchandise Costs | $315,597 |
| Site Operating Expenses | $222,744 |
| General and Administrative Expenses | $38,636 |
| Depreciation and Amortization | $33,132 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Arko Corp. reported the following cash flows:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Cash Flows from Operating Activities | $199,130 |
| Cash Flows from Investing Activities | ($80,935) |
| Cash Flows from Financing Activities | ($40,578) |
Debt and Equity
As of September 30, 2024, Arko Corp.'s debt comprised:
| Debt Component | Amount (in thousands) |
|---|---|
| Senior Notes | $445,050 |
| M&T Debt | $60,239 |
| Capital One Line of Credit | $375,588 |
| Total Debt | $884,695 |
Shareholder Returns
During 2024, Arko Corp. declared dividends of $0.03 per share totaling approximately $10.5 million for the nine months ended September 30, 2024.
Acquisitions and Growth Strategy
Arko Corp. continues to pursue growth through strategic acquisitions. For instance, the SpeedyQ Acquisition contributed $42.3 million in revenues for the period following its closing date.
Market Position
As of 2024, Arko Corp. operates a substantial number of retail locations across the U.S., enhancing its market presence and competitive advantage in the fuel distribution sector.
Environmental Liabilities
As of September 30, 2024, environmental obligations amounted to $11.7 million, reflecting the company's compliance with federal and state environmental regulations.
How Arko Corp. (ARKO) Makes Money
Revenue Streams
Arko Corp. generates revenue primarily through three segments: retail, wholesale, and fleet fueling. As of September 30, 2024, the breakdown of revenue is as follows:
| Segment | Fuel Revenue (in thousands) | Merchandise Revenue (in thousands) | Other Revenues (in thousands) | Total Revenue (in thousands) |
|---|---|---|---|---|
| Retail | $929,783 | $469,616 | $16,082 | $1,415,481 |
| Wholesale | $720,646 | $0 | $6,751 | $727,397 |
| Fleet Fueling | $128,268 | $0 | $2,335 | $130,603 |
| GPMP | $1,031 | $0 | $209 | $1,240 |
| All Other | $7,059 | $0 | $372 | $7,431 |
| Total | $2,279,236 | $469,616 | $25,749 | $2,774,601 |
Fuel Revenue
For the nine months ended September 30, 2024, Arko's fuel revenue was approximately $5,302,734,000, a decrease of 7.3% from the previous year. This decline is attributed to a decrease in same-store gallons sold and a lower average retail price of fuel, offset partially by increased sales from recent acquisitions.
Merchandise Revenue
Merchandise revenue for the same period was reported at $1,358,519,000, reflecting a decrease of 2.4% year-over-year. The decline was primarily due to reduced same-store merchandise sales, particularly in underperforming retail locations.
Operating Income and Expenses
For the three months ended September 30, 2024, Arko reported an operating income of $41,569,000, down from $44,074,000 in the same quarter of the previous year. Total operating expenses for the quarter were $2,236,508,000.
| Operating Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $2,279,236,000 | $2,622,054,000 |
| Operating Expenses | $2,236,508,000 | $2,574,095,000 |
| Operating Income | $41,569,000 | $44,074,000 |
Net Income
Net income attributable to Arko Corp. for the three months ended September 30, 2024, was $9,674,000, a decrease from $21,488,000 in the prior year.
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024, was $78,777,000 compared to $87,303,000 for the same period in 2023. This decline is primarily due to lower fuel and merchandise contributions.
Acquisitions Impact
The company has made several acquisitions that contributed incremental revenues. For instance, the Speedy’s and SpeedyQ acquisitions added approximately $121.5 million in fuel revenue and $58.1 million in merchandise revenue.
Debt and Financial Expenses
Interest and financial expenses for the nine months ended September 30, 2024, were $23,701,000, reflecting an increase compared to the previous year due to higher average debt balances and interest rates.
Conclusion
Overall, Arko Corp. generates revenue through fuel sales, merchandise sales, and various acquisitions, with a focus on optimizing profitability across its operations while managing costs and financial obligations.
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Resources:
- Arko Corp. (ARKO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Arko Corp. (ARKO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Arko Corp. (ARKO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.