Business
ARKO Reports Record Merchandise Revenue and Net Income
Merchandise Revenue of $434.7 million Net Income of $35.6 million Adjusted EBITDA, Net of Incremental Bonuses, Increases 39.9% to $80.2 million Same Store
About this update from Arko Corp.
[{"type":"text","content":"Merchandise Revenue of $434.7 million Net Income of $35.6 million Adjusted EBITDA, Net of Incremental Bonuses, Increases 39.9% to $80.2 million Same Store Merchandise Sales Excluding Cigarettes Increase 1.8% for Third Quarter and 8.7% on a Two-Year Stack Basis* Strategic In-store Initiatives Deliver Merchandise Margin Expansion of 270 Basis Points RICHMOND, Va., Nov. 10, 2021 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), a growing leader in the U.S. convenience store industry, today announced financial results for the third quarter ended September 30, 2021. Third Quarter 2021 Key Highlights* Operating income was $54.7 million for the quarter, an increase of 70.4%, compared to $32.1 million for the third quarter of 2020Net income for the quarter was $35.6 million, an increase of 107.4% and quarterly record for the Company, compared to $17.2 million for the third quarter of 2020Adjusted EBITDA, net of incremental bonuses, increased 39.9% to $80.2 million for the quarter, the Company’s strongest quarterly amount to date, as compared to the prior year periodSame store merchandise sales excluding cigarettes, increased 1.8% compared to the prior year period, and 8.7% on a two-year stack basisMerchandise sales margin increased 270 basis points to 30.6% from 27.9% in the prior year periodRetail fuel margin cents per gallon increased by 11.3% versus the prior year period to 34.5 cents per gallonSigned 70 dealer supply agreements including renewals in the third quarter Recent Developments Issued $450 million aggregate principal amount of 5.125% Senior Notes due 2029 (the “Senior Notes”) in October, with net proceeds used primarily to repay an outstanding term loan and line of credit, which increased our availability under our lines of credit by $200 million, created well-laddered corporate debt and delayed meaningful debt maturities until 2029Acquired in November 36 company-operated Handy Mart convenience stores and gas stations, plus one under development site, all located in North Carolina, in conjunction with Oak Street Real Estate Capital, LLC (“Oak Street”)In October, Oak Street purchased and leased to us approximately $150 million of real estate previously leased to us by other landlords, resulting in a reduction of rent of approximately $2.3 million annually “Our third quarter results demonstrate our team...