ARKO (US:ARKO)2025-02-26 21:05Financial Performance - Net loss for Q4 2024 was $2.3 million compared to net income of $1.1 million in Q4 2023; full year net income decreased to $20.8 million from $34.6 million[6] - Adjusted EBITDA for Q4 2024 was $56.8 million, down from $61.8 million in Q4 2023; for the full year, it decreased to $248.9 million from $276.3 million[6] - Total revenues for Q4 2024 were $1,992,109, a decrease of 10.8% from $2,233,160 in Q4 2023[38] - Fuel revenue for the year ended December 31, 2024, was $6,858,919, down 8.1% from $7,464,372 in 2023[38] - Operating income for the year ended December 31, 2024, was $94,026, a decline of 20.3% from $118,014 in 2023[38] - Adjusted EBITDA for the year ended December 31, 2024, was $248,860, a decrease of 9.9% compared to $276,260 in 2023[43] - Total revenues for the year ended December 31, 2024, reached $60,465,000, with a quarterly revenue of $18,139,000[48] Margins and Contributions - Merchandise margin rate increased to 33.0% in Q4 2024 from 32.9% in Q4 2023; for the year, it rose to 32.8% from 31.8%[6] - Retail fuel margin for Q4 2024 was 38.7 cents per gallon, down from 39.2 cents per gallon in Q4 2023; for the year, it increased to 39.6 cents per gallon from 38.8 cents[6] - Retail fuel contribution for Q4 2024 decreased to $100.2 million from $109.3 million in Q4 2023; for the year, it was $428.2 million compared to $435.3 million[6] - Merchandise contribution for Q4 2024 was $134.9 million, down from $146.8 million in Q4 2023; for the year, it decreased to $579.6 million from $585.1 million[6] - Fuel revenue for the retail segment decreased to $3,509,935 for the year ended December 31, 2024, down from $3,858,777 in 2023, representing a decline of 9.0%[47] Expenses and Costs - Convenience store operating expenses decreased by $13.0 million, or 6.5%, in Q4 2024 compared to the prior year, mainly due to closures of underperforming stores[19] - For the year ended December 31, 2024, convenience store operating expenses increased by $11.2 million, or 1.4%, primarily due to $33.1 million of incremental expenses from recent acquisitions[20] - Total operating expenses for the Retail Segment in Q4 2024 were $1,141,074, a decrease of 12.6% from $1,305,104 in Q4 2023[47] - Fuel costs for the year ended December 31, 2024, were $3,081,719, down from $3,423,455 in 2023, indicating a reduction of 10.0%[47] - Total operating expenses for the wholesale segment were $640,739,000 for the three months ended December 31, 2024, down from $688,826,000 in the same period of 2023, a reduction of approximately 7.0%[49] Liquidity and Debt - As of December 31, 2024, total liquidity was approximately $841 million, consisting of $262 million in cash and cash equivalents and $579 million in availability under lines of credit[21] - Outstanding debt was $881 million, resulting in net debt of approximately $619 million, excluding lease-related financing liabilities[22] - Cash and cash equivalents increased to $261,758 as of December 31, 2024, from $218,120 in 2023[39] - Cash flows from operating activities for the year ended December 31, 2024, were $221,858, an increase of 62.9% from $136,094 in 2023[41] Store Operations and Acquisitions - The company converted 153 retail stores to dealer sites in 2024, with an expected annualized benefit of approximately $8.5 million to operating income[6] - The planned pipeline of new-to-industry (NTI) stores expanded to eight, with four expected to open in 2025[6] - The company acquired 21 sites in 2024 and closed or converted 25 sites, resulting in a total of 1,389 retail sites at the end of the year[25] - The company acquired seven Speedy's retail stores on April 9, 2024, which is expected to enhance market presence and revenue streams[48] Dividends - The board declared a quarterly dividend of $0.03 per share to be paid on March 21, 2025[7] - The company declared a quarterly dividend of $0.03 per share to be paid on March 21, 2025[23] Future Outlook - The company plans to focus on higher-growth categories and optimize its store portfolio to drive sustainable long-term growth[7] - The company expects Q1 2025 Adjusted EBITDA to range between $27 million and $33 million, with an average retail fuel margin of 37.0 to 39.0 cents per gallon[27]