Business
ARKO Reports Third Quarter 2022 Results
Operating Income of $65.7 Million Increased Year-over-Year by 20.1%; Net Income of $25 Million; Q3 2022 Adjusted EBITDA Reaches $99.5 Million, all-time
About this update from Arko Corp.
[{"type":"text","content":"Operating Income of $65.7 Million Increased Year-over-Year by 20.1%; Net Income of $25 Million; Q3 2022 Adjusted EBITDA Reaches $99.5 Million, all-time Company High and 24.1% Increase Compared to Q3 2021; Board Raises Quarterly Dividend by 50%\nRICHMOND, Va., Nov. 07, 2022 (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 September 30, 2022. Third Quarter 2022 Key Highlights: Operating income was $65.7 million for the quarter, an increase of 20.1% compared to $54.7 million in Q3 2021Net income for the third quarter was $25.0 million, which includes a one-time, non-cash tax expense of approximately $8.7 million in connection with an internal entity realignment and streamlining, compared to net income of $35.6 million in Q3 2021, which included a tax benefit the Company recorded of approximately $5.5 millionAdjusted EBITDA increased 24.1% to $99.5 million, the Company’s strongest to date, compared to $80.2million in Q3 2021Merchandise revenue of $445.8 million for the third quarter compared to $434.7 million in Q3 2021; total merchandise contribution increased $5.8 million, or 4.3%, to $138.9 million, compared to Q3 2021Merchandise margin reached all-time high, increased 60 basis points to 31.2% compared to 30.6% in Q3 2021Third quarter same store merchandise sales excluding cigarettes increased 4.3% compared to Q3 2021, or 6.1% on a two-year stack*Fuel profitability increased 28.5%, to $155.1 million for the quarter compared to $120.7 million in Q3 2021ARKO Corp.’s Board of Directors increased the quarterly dividend by 50%Acquired Quarles Petroleum’s fleet fueling and dealer business; ARKO’s 21st acquisition in less than 10 years, including 121 proprietary Quarles-branded cardlock sites, 63 third-party cardlock sites for fleet fueling operations, and 46 independent dealer locations “ARKO delivered excellent results and performance across our business this quarter,” said Arie Kotler, President, Chairman and Chief Executive Officer of ARKO. “In addition, following the acquisition in July of the Quarles fleet fueling and dealer business, since the end of the second quarter we also announced agreements to complete two more strategic and accretive acquisitions. Th...