Key highlights from its fourth quarter and full year 2020 performance include:
- 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, materially enhancing our wholesale business and providing a future opportunity to meaningfully reduce fuel procurement costs. Added 1,453 wholesale sites to its network in addition to 84 retail sites, which increased its footprint through expansion into 10 new states and will double its gallons sold.
- On Dec. 22, 2020, ARKO acquired all minority interests in its operating company, GPM Investments LLC (GPM). Additionally, ARKO purchased all of the minority interests with the exception of a third-party with a 0.29% holding in one of its subsidiaries that distributes fuel to its locations (GPMP).
“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,” said ARKO CEO Arie Kotler. “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.”
ARKO recently announced the pending acquisition of 61 sites from ExpressStop, Kotler noted, and remains focused on driving the next chapter of growth through a multi-year remodel program and other compelling organic growth opportunities that Kotler expects will deliver long-term value for all of the company’s stakeholders.
GPM Investments operates or supplies stores in 33 states and Washington D.C., with approximately 3,000 locations comprised of approximately 1,350 company-operated stores and 1,600 dealer sites to which it supplies fuel.