Business
ARKO Corp. Reports First Quarter 2023 Results
Strong Quarter Led by Higher Merchandise Contribution and Acquisitions RICHMOND, Va., May 08, 2023 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) (“ARKO” or
About this update from Arko Corp.
[{"type":"text","content":"Strong Quarter Led by Higher Merchandise Contribution and Acquisitions\nRICHMOND, Va., May 08, 2023 (GLOBE NEWSWIRE) -- 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 ended March 31, 2023. First Quarter 2023 Key Highlights1 Operating income for the quarter was $9.0 million, compared to $19.3 million in the prior year quarter.Net loss for the quarter was $2.5 million, compared to net income of $2.3 million in the prior year quarter.Adjusted EBITDA for the quarter was $47.5 million, a decrease of $2.6 million, as compared to the prior year quarter.Same store merchandise sales excluding cigarettes increased 7.6% for the quarter compared to 0.1% in the prior year period; same store merchandise sales increased 3.8% for the quarter compared to the prior year period.Merchandise gross profit contribution grew by $8.1 million for the quarter, or 7.7%, on a same store basis, as compared to the prior year period.Merchandise margin increased 120 basis points to 30.7% for the quarter compared to 29.5% in the prior year period. Other Key Highlights On March 1, 2023, closed acquisition of the assets of Transit Energy Group and its affiliates (\"TEG\") adding 135 convenience stores and 192 dealer locations; WTG Fuels Holdings LLC (\"WTG\") acquisition expected to close in Q2 2023.Currently available capital of more than $2 billion dollars, including cash, lines of credit and Oak Street agreement. Renewal and increase of GPMP credit line to $800 million, extending maturity to 2028.Amended and extended the program agreement with Oak Street, a division of Blue Owl Capital (“Oak Street”), with capacity of up to $1.5 billion until September 2024. Released significantly updated fas REWARDS® loyalty app, with promising early results.ARKO Corp.’s Board of Directors declared a quarterly dividend of $0.03 per share of common stock to be paid on June 1, 2023, to stockholders of record as of May 19, 2023. “This was another strong quarter, with robust in-store performance as we continued to execute our strategy to grow our core convenience store business and our many initiatives continued to gain traction, showing that our value proposition, customer service, and merchandising mix is resonating with customers...