Q1 2024 Arko Corp. Earnings Call Transcript
Key Points
- ARKO Corp reported an adjusted EBITDA of $36.6 million for Q1 2024, which was above the midpoint of the guidance range provided in the previous call.
- Despite a decline in same-store merchandise sales, ARKO Corp achieved a 4.6% increase on a two-year stack basis, excluding cigarettes.
- The company saw significant merchandise margin rate expansion, which helped offset the decline in same-store merchandise sales, leading to modest growth in merchandise contribution over the prior year.
- ARKO Corp has been actively enhancing its merchandise mix and expanding its food offerings, which are expected to drive traffic and improve profitability.
- The company continues to leverage its multi-segment operating model and has made progress in converting retail stores to wholesale, reducing operating expenses and corporate G&A.
- Same-store merchandise sales declined compared to the strong prior year quarter, indicating potential challenges in consumer spending patterns.
- ARKO Corp experienced a decrease in fuel contribution and regulatory statewide elimination of Virginia gaming income, which negatively impacted financial performance.
- Same-store operating expenses were up 3.3% for the quarter, driven by higher hourly wage rates, accelerated repair and maintenance, and elevated workers' comp claims.
- The company reported a net loss of $0.6 million for the quarter, compared to a net loss of $2.5 million in the year-ago period, showing continued financial strain.
- Same-store fuel gallon demand was down 6.7% for the quarter, which could indicate a decrease in customer traffic or shifts in consumer behavior towards fuel purchases.
Thank you. Good afternoon, and welcome to ARKO's First Quarter 2024 Earnings Conference Call and Webcast. On today's call are Rick Cutler, Chairman, President and Chief Executive Officer, and Robb Giammatteo, Executive Vice President and Chief Financial Officer, our earnings press release and quarterly report on Form 10 Q for the first quarter of 2024 as filed with the SEC are available on ARKO's website at w. w. w. dot ARKO corp.com.
During our call today, unless otherwise stated, management will compare results to the same period in 2023.
Before we begin, please note that our first quarter 2024 financial information is unaudited. During this call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please review the forward-looking and cautionary statements section at the end of our first quarter 2024 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during the call today.
Any forward-looking statements made during this call
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
