In 2024’s first quarter, Alltown Fresh owner Global Partners had a net loss of $5.6 million, compared with net income of $29 million in the same period of 2023, the company announced during its earnings call May 8 for the quarter ended March 31.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $56.9 million in first-quarter 2024 compared with $78.1 million in the same period of 2023.
“Our gasoline distribution and station operations segment performed well in the first quarter, posting healthy margins that partly offset less favorable market conditions in our wholesale and commercial segments,” said Eric Slifka, the company’s president and CEO. “Specific to our wholesale segment, certain products were negatively impacted by the timing of mark-to-market valuations, which have largely recovered in the month of April.”
In the first quarter, Global Partners successfully completed the integration of liquid energy terminals acquired in December from Motiva Enterprises, and those assets performed in line with the company’s expectations for the quarter, Slifka said.
- Global Partners is No. 21 on CSP’s 2024 Top 40 Update to the 2023 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2024 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
“In April, we closed on the purchase of four liquid energy terminals in the Northeast from Gulf Oil LP,” he said. This deal was for about $212 million, Slifka said. The locations are in Massachusetts, Connecticut and New Jersey.
New Opportunities
“This acquisition, which will be reflected in our results beginning in the second quarter of this year, further demonstrates our commitment to increasing the scale and strength of our growing energy distribution network,” Slifka said. “We are excited about the new opportunities the Gulf and Motiva transactions create to build on our strategic advantage and serve customers in these high-demand markets.”
Over the last five months, Global Partners acquired 29 terminals, more than doubling its overall network and total storage capacity for 9.9 million barrels, Slifka said.
These strategic acquisitions strengthen Global Partners’ terminal operations, expand its growth opportunities and enhance its earning power, he said.
The first quarter’s adjusted EBITDA was $56 million versus $76 million in the same period of 2023, while distributable cash flow (DCF) was $15.8 million in the first quarter compared with $46.3 million in 2023’s same period.
Adjusted DCF was $16 million in the first quarter of 2024 compared with $46.3 million in the quarter a year earlier.
Gross Profit
In addition, Slifka said, gross profit in first-quarter 2024 was $215.1 million compared with $222.1 million in the same period of 2023.
Combined product margin, which is gross profit adjusted for depreciation allocated to cost of sales, was $244.1 million in first-quarter 2024 compared with $244.8 million a year earlier.
Slifka said first-quarter 2023 also benefited from a falloff in prices during the quarter as opposed to first-quarter 2024, which had consistent increases in prices throughout the quarter.
“Station operation product margin, which includes the convenience-store prepared food sales, sundries and rental income, increased $3.4 million to $66.1 million in the first quarter as our team continues to execute well in our stores,” Slifka said. “At quarter end, we had a portfolio of 1,601 sites.”
In addition, Global Partners operated 64 sites in Texas under its Spring Partners retail joint venture.
Total sales at Global Partners were $4.1 billion in first-quarter 2024 compared with $4 billion in the same period of 2023. Wholesale segment sales were $2.6 billion in first-quarter 2024 compared with $2.5 billion a year earlier.
Elsewhere, gasoline distribution and station operations (GDSO) sales were $1.2 billion in first-quarter 2024 versus $1.3 billion a year earlier. Commercial segment sales were $278.6 million in first-quarter 2024 compared with $257.9 million in the same period of 2023.
Other first-quarter 2024 highlights:
- Total volume was 1.6 billion gallons compared with 1.4 billion gallons in the same period of 2023. Wholesale segment volume was 1.1 billion gallons compared with 928.6 million gallons in the same period of 2023.
- Product margin from station operations totaled $66.1 million compared with $62.7 million in first-quarter 2023.
- Wholesale segment product margin was $49.4 million compared with $53.1 million in the same period of 2023.
- Commercial segment product margin was $7 million compared with $8.1 million in the same period of 2023, primarily due to less favorable market conditions.
Waltham, Massachusetts-based Global Partners has about 1,700 locations across the Northeast and Mid-Atlantic, of which 353 are company owned. Brands include Alltown Fresh, Honey Farms and XtraMart, among others.
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