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ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC, and stands as one of the largest operators of convenience stores and fuel wholesalers in the United States. Based in Richmond, VA, ARKO Corp. operates under a family of recognizable community brands, offering a wide range of products including prepared foods, snacks, candy, beverages, and popular quick-serve restaurant brands. The company also features the high-value fas REWARDS® loyalty program, which provides exclusive savings on merchandise and fuel.
ARKO Corp. operates in four primary segments: Retail, which includes convenience stores selling merchandise and fuel; Wholesale, which supplies fuel to independent dealers and consignment agents; GPM Petroleum, responsible for selling and supplying fuel while charging a fixed fee, mainly to fleet fueling sites; and Fleet Fueling, which includes the operation of proprietary and third-party cardlock locations and issues proprietary fuel cards that offer access to a network of fueling sites.
Recently, ARKO announced its financial results for the fourth quarter and full year of 2023. Over the past three years, the company has significantly expanded its geographic footprint through acquisitions, delivering approximately $166 million in net income and about $850 million in cumulative adjusted EBITDA. For the full year of 2023, ARKO reported $290.4 million in adjusted EBITDA, holding the performance within 3.5% of 2022 levels despite a 3.4% decline in national fuel gallon demand.
Notable highlights from the year include a 2.5% increase in same store merchandise sales excluding cigarettes and an overall increase of 16.7% in total merchandise contribution. The company's focus on improving customer experience and store productivity remains central to its growth strategy. ARKO also announced a new investor day planned for later in the year to reveal its multi-year roadmap for enhancing organic performance and driving shareholder value.
Furthermore, ARKO continues to invest in its loyalty program and its core destination categories. The company’s fas REWARDS® loyalty program has been a pivotal part of its strategy, offering customers significant savings and exceptional value.
As of the end of 2023, ARKO had a total liquidity of approximately $831 million. The company's capital expenditures for the year were around $111.2 million, which include purchases of properties, upgrades to fuel dispensers, and other store investments. Additionally, ARKO has amended its program agreement with Oak Street, extending the term and increasing the capacity to $1.5 billion, allowing for further strategic investments.
Looking ahead, ARKO aims to focus more on organic growth and will continue leveraging its significant acquisitions to enhance its market presence and operational efficiency.
ARKO Corp. has urged TravelCenters of America’s Board to consider its acquisition proposal of $92 per share, which surpasses BP's offer of $86. ARKO believes its proposal offers a premium of $6 per share and adds nearly $100 million in value for TravelCenters' shareholders. The company emphasizes its strong financial position and history of successful acquisitions without financing conditions. ARKO is ready to commence due diligence and enter into a merger agreement similar to BP's. The Board's engagement with ARKO could lead to a superior proposal for TravelCenters' shareholders.
ARKO Corp. (Nasdaq: ARKO), a leading convenience store operator in the U.S., will participate in the Raymond James & Associates 44th Annual Institutional Investors Conference. Chairman, President, and CEO Arie Kotler is scheduled to present on March 6, 2023, at 9:50 AM ET. The presentation will be accessible via a live audio webcast. ARKO, which owns GPM Investments, operates across four segments: retail, wholesale, fleet fueling, and GPM Petroleum. The company's extensive network provides quality products and a loyalty program offering savings.
ARKO Corp. has successfully completed the acquisition of Transit Energy Group (TEG), expanding its convenience store operations into Alabama and Mississippi. This marks ARKO's 23rd acquisition since 2013, significantly enhancing its retail footprint in the Southeastern U.S. TEG operates around 135 convenience stores and supplies fuel to approximately 190 independent dealers. The total transaction value is around $370 million, with $50 million deferred. ARKO aims to leverage its expertise in merchandising and marketing to improve TEG's stores, potentially increasing cash flow and adjusted EBITDA.
ARKO Corp. reported robust financial results for 2022, with operating income rising to $167 million, up from $142.1 million in 2021. Net income reached $72 million, compared to $59.4 million previous year. The Adjusted EBITDA for the year was $301.1 million, an increase from $256.6 million. The company announced two acquisitions, continuing growth with 22 total since 2013. Same store merchandise sales increased by 4.3% in Q4 and 2.6% for the year. ARKO remains committed to strategic expansions, with a quarterly dividend of $0.03 declared. Strong liquidity stood at approximately $675 million.
ARKO Corp. (Nasdaq: ARKO) will release its fourth-quarter and full-year financial results for 2022 on February 27, 2023, after market close. A conference call is scheduled for February 28, 2023, at 10:00 a.m. ET, where investors can dial in or participate via a live webcast. ARKO operates convenience stores and is a fuel wholesaler in the U.S., owning GPM Investments. The company focuses on retail and wholesale fuel supply, along with various convenience food offerings. More details will be available during the earnings call, aiming to provide insights into their operational performance.
ARKO Corp. (NASDAQ: ARKO) announced on January 10, 2023, that CFO Don Bassell will retire by the end of 2023 after 16 years with the company. He plans to assist in the transition until approximately April 2024. Bassell has played a crucial role in transforming ARKO into a leading convenience store operator, overseeing over 20 acquisitions and building a robust finance team. The company will begin the search for his successor, evaluating both internal and external candidates to ensure a seamless transition and continued growth.
ARKO Corp. has completed its second acquisition of 2022, acquiring Pride Convenience Holdings for approximately $230 million plus inventory. This acquisition adds 31 convenience stores, expanding ARKO's footprint into Massachusetts, making it the 34th state of operation. The acquisition is expected to generate $12.2 million in annual Adjusted EBITDA. ARKO aims to enhance Pride's operations and brand through its existing resources. This strategic move underscores ARKO's growth strategy, which has transformed the company into one of the largest convenience store operators in the U.S.
ARKO Corp. has announced the acquisition of WTG Fuels Holdings for approximately $140.4 million, expanding its operations in Texas and New Mexico. This move will add over 200 retail stores and significantly boost ARKO's fleet fueling operations by increasing its sites from 183 to over 290. The deal is expected to enhance ARKO’s annual Adjusted EBITDA by approximately $10.6 million. The acquisition is the fourth for ARKO in 2022 and aligns with its strategy of systematic growth and value creation for stockholders.
ARKO Corp. (NASDAQ: ARKO) reported strong Q3 2022 results, showcasing a 20.1% increase in operating income to $65.7 million, and net income of $25 million. Adjusted EBITDA rose to a record $99.5 million, a 24.1% increase year-over-year. Merchandise revenue reached $445.8 million, with a 4.3% increase in merchandise contribution. Fuel profitability surged by 28.5% to $155.1 million. The Board has raised the quarterly dividend by 50%. The company also announced the acquisition of Transit Energy Group’s convenience stores, reflecting its growth strategy.
ARKO Corp. (Nasdaq: ARKO) is set to report its third quarter results for the period ending September 30, 2022, on November 7, 2022, after market close. A conference call will be held on November 8, 2022, at 10:00 a.m. ET, allowing investors to discuss the results. The Company operates in the convenience store and fuel wholesaling sector, owning GPM Investments, and offers a range of products through its various retail and wholesale segments.
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