ARKO - Earnings call transcript Q2 2022

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Operator

Greetings, and welcome to the Arko Corp.

Second Quarter 2022 Financial Results Conference Call. A question-and-answer session will follow the formal presentation. [Operator Instructions] I would now like to turn the conference over to your host, Ross Parman, Vice President of Investor Relations and Government Affairs. Please go ahead.

Ross Parman

you. Thank welcome Quarter and Call Earnings Arko's Webcast. and to morning, XXXX Second Conference Good are Chairman, Arie Executive call today's On Kotler, Don Chief Officer; President Bassell, Financial Officer. and Chief and

with release, report presentation press available website Arco's arkocorp.com. on and earnings Our are as filed our the quarterly earnings at SEC

Litigation EBITDA could will, use cause to refer to from non-GAAP press XX-K forward-looking Before the beliefs statements a of differ course detailed for of ended Act statements materially from and Form any refer June XXXX adjusted call, words today's of expect, and management by Reform information will uncertainties including Form filings results the today. that involve our are we XX, based actual could, on on our and and the management such SEC, that report release, to call, Private report within measures, annual the XX-Q references EBITDA. and periods. unaudited. risks expressed quarter statements Please to is with financial XXXX, these may on differ today identified quarter please Please made statements. other quarterly as our second note estimate, discussion including materially or statements forward-looking similar the for this actual project those risks of that those forward-looking in described These in and meaning implied to And Securities note on same-store of that future our cause measures, begin, make may, These and could management's and be intend, XXXX. all financial expectations during of results as the only speak plan, may current the

provide in refer non-GAAP I Please with our to our a for reconciliations most not information locations. to While of our presented isolation useful believes note the GAAP considered of GAAP. release this also measures is accordance be our financial today as substitute call financial measures. the that remote investors, conducting press for intended respective information would presentation to the for to information comparable measures in these like non-GAAP company or our from earnings directly we're

As brief or this now And would issues in call. delays, be to such, over understanding. there minor and advance like may technical talk thank your other call cross Arie. turn We patience during to the for you I

Arie Kotler

and year-over-year results morning, everyone, joining model ability and the Thank business growth you and strength of strategy. income, six quarter strong our versus Arko in execute net an growth of comparable second second was us. at Good you, the the our quarter. over-time to focus $XX Ross. for second generated for company straight our resiliency thank prior million, Adjusted increase marking quarter over quarters. high quarter XX% $XX.X EBITDA the for Arko million year's for long-term an EBITDA

use as financial well in stock, performance the extremely a common programs results, all we of happy dividend. half quarterly investment and strong of first as the a our during of the facilitated as year, of lot these repurchase continue As areas continued which third I'm and hiring stores with our a and view to our our performance our and of great declaration we business. capital accomplished so strength of retention

quarter our margin saw sales. categories. of basis. XXX historic a products. on fuel. good key market food, other total inflation navigated quarter, In has Merchandise sales, merchandise center job share in stores for and done excluding items, the on the focused executing in The beer points was tobacco we XX.X% to And In inflation maintained we stock a dollar volatility strategy This by store and XX.X% increased our X.X% store total we managing stores, and quarter, in marketing XXXX. basis grew of frozen cigarettes, compared remaining and same-store to second growing particular, in quarter this two-year team second

strategy, out strategic execution increased focus short frozen the has year moved In has ground case is of was prior here quarter. well. fruit The in very to a XX.X% building selling quickly implement offering study, this our food the for compared quarters. gained it prior and to executed rapidly program terms frozen and of team us It

this our are We prices volume We executed also a XX.X% and movement the is volatile manage quarter Total very $XXX.X while was price compared million fuel, to results. remaining seek fuel great optimize our a in XXXX. second gross competitive. low, We through strategy of consistent. had profit strong strategy margin quarter increase high quarter and achieved to million, whether a $XXX.X or to profitability in

As dollar merchandise margin results we in-store that believe gallon we maintaining our growth. sent maintain per growth show, can while

done strong states. have delivered Michigan, they we I've prices stores believe strategy results and the driving higher enables summer, While visiting excellent as prices, results fuel through decline with Carolinas the other throughout many also fuel that been recently. as Virginia, the we

items continue fuel this promotion, believe out offering rewards some the with fulfill territory think how our doing as that are around to basic and discounts competition. level. in-store listen customers demand We I how I and stores of see as And well get that past their customers are compelling executing In store communities purchases. to driving we and to the our great important it's and we our are at stores, see associates. needs. buy I on

a have offering resonating implement compelling are continue customers. that and very our We key to initiatives with

multiple an deliver and successful company us us factors combination to pursue to advantage once. at deliver initiatives. This right scale that the identify opportunities our resources One ability stockholders. of is The believe for we of this allow great and enable the company's results is that our make to

For five quarter. example, we this remodel completed store

door Sbarro an the coffee visited yield where converting there the four is believe by that our Store total for in Richmond, XX opened of We high-margin out a also clearly opening bean-to-cup across grab our program location of to year. follows open in this with quickly freezers I go in are stores achieve Sbarro and We XX which more for and under of we our have was of hit Sbarro successful program on by eight air open delis five and implement quarter Pizza. right a our of on to I business foodservice, recently moved the line with program Sbarros investing and to remodel footprint rollout goal end of aspects This customers. coolers. and our pace categories now. includes Sbarros construction the extensive

quarters, in stores, XXX machines goal exceeding a total store we installation. Over of the bean-to-cup coffee last of our few XXX installed

I we cost-conscious believe quarter, by freshness confirmed almost increased My very also am XX%, drinker, coffee are we that high-quality priced bean-to-cup This made off other for and making. and offer. iced our that consistently we park coffee about we visits beans, a along these top store competitively consumers. I machines it machine, coffee. serious with the want coffee are investments new quality sales unit our that to of speak I and the some believe with knocked bean the of we

now currently track Subways extremely On and our are can to Dunkin' announced We're growing whom home remodel out customers. and year, and We we XXX,XXX out approximately We will and Subway many deals six and our loyalty we other points continued loyalty features. directly commence customized Dunkin' pleased under enable communicate consumer to announce additional We're fast remain communication to program, with in QX, offers. modeled app functionality development, forward new response for loyalty roll special plan as the of earning on the in X.X with to about these on serve was this we stores. on engineering moving million-plus which us excited delivery, Texas. remodeled in used them program. We treating with as million our rewards store and order have well and Atlanta, provide customers new-to-industry redeeming enrolled two to

from that territories. Another acquired $XX.X asset years, on is strategy. of our acquisition approximately including Petroleum successful accretive The to non-GAAP acquisitions cold line business, been footprint our fueling forward-looking July. we key Quarles the assets at XX late in bottom executed growth of less will closed and our measures, consistently basis. fueled factor in Petroleum estimated with that of annualized into an XX seamlessly than which highly EBITDA has acquisition We've fleet Using in expect fit adjusted Quarles million areas the cardlocksite acquisition prime in our

the organic XXX approximately have connection years Importantly, stored and seasoned acquisition. brands continued who with trust we have of welcome family of acquisition Quarles's of Quarles presents XX name want believe to community opportunities been operation. employees operators who the joined this warmly I our expansion. Their in over for the growth

store historically advantage during and We of important our line the million, opportunities be terms remember company Arko's Arko. total acquisition, tends million of $XXX industry the to to cost equivalents large of the investments approximately credit. use a approximately that financial million that in approximately was created current composed pipeline grown given Right XX and well has pressure believe operator is In strong June is a cash resilient market very as advantage, cash under positioned our position. convenience market. like and there robust has deal It's now, of to recession. for short-term conditions liquidity to and of available $XXX and $XXX

our real the commitment property our have disposal. estate billion In at addition, we from extended capital $X.XX real

also in that positive longer areas investing on our the term. impact are We in have will stores believe we

chargers charging in installed We Level that Pantry stores in at previously fast These chargers We support of at be X adding deployed chargers Marysville, type will and EVs. capabilities EV are all Ohio. by ChargePoint on installed Village just fast working Colorado. X announced

the in EV of are strategy. early We charging our stages

level. exploring identifying the partnerships subsidies at and are grants corporate We and

ambition our EV store increase footprint. adoption Our in loyal make drivers is customers to as

policy, recently you and encourage released also our our We read it. to ESG website I to visit

for stores, lot on efforts. they look the progress year, we policy global JDC, in refugee was our a and partnered significant sharing mile. year. to crisis leading want their and are willing this neighboring how made with go this and alleviate by quarter, this always I organization have recent thank the extra I'm to stakeholders associates humanitarian to accomplishment a struck with work. One Every We reporting all-in I later baseline countries. of help all visit Throughout excellent forward Ukraine

donations sale. collect the of help associates Our point at

with community match supplier with We generous dollar our We a a over raised $XXX,XXX. also collectively per donor. by JDC partnered dollar

customers We are of support community. for supplier our the grateful associates, and

well again I is truly I delivered results, call the excellent over success. and believe yet Don. have We Arko positioned for to continued financial turn will

Donald Bassell

And good contribution with and wholesale segment our an We had increase contribution fuel results. we're in company Increased the and everyone. this acquisition, about stores, field and ExpressStop quarter you, history. same second Thank Handy July. at the of for Mart Quarles excited late excellent contribution morning, best these in acquisitions quarter. Arie, XXXX contributed merchandise also closed in combined The results which in to

operations We team are Quarles's easily analysts. on a highly for segment working This will investors the reporting our with performance keep become all fourth financial now. Quarles the our for integrating and company. accessible experienced

recorded the by the applies associated Merchandise percent margin XX.X% noted increased per fuel the Getting second the hedging in This XXX XX.X%. with date acquisition, engaging the to on hedging dollars an based points X QX of for to results fuel current number on already fuel strong but also to to in as month risk company quarter this Retail fuel the of our increase or XXXX is retail customers fleet versus point. prior to gallon the $X.XXX profitability, the from this, million as intercompany in prices formula results. I margin elevated the sale. of to million price to the low, would the versus environment, to fueling versus of prices like dollars. while reiterate to fuel manage fuel Whether margin into $X price are second strategy The versus for margin associated an decline, several we RAC that fuel quarter optimize and quarter prices increased but to gallon an resilient company XXXX. grew manage We until now tied I positions. risk immaterial basis delivered fuel the increased we've This enables XX% overall per charges year, With cardlock, demonstrated have believe strive $X.XX gallons only $XX.X where XX.X%. excellent buy per company XXXX margin high prior the this of results system actual year is operations. quarters. transactions excluding volume prior million achieve quarter, we approximately with

discounts charges million wholesale prior compared fuel intercompany million, by increased $X.X fuel approximately margin to period intercompany XXXX, prompt-pay to the to gallon these fuel Fuel $X.XXX second for the locations prior of costs and the of due in year or $X.X locations per higher increased gallon from Fuel of greater period. rebates. to excluding profitability, XX.X%. contribution quarter charges, gallon For related cents increase greater the per XXXX second per quarter compared to versus excluding $X.XXX supply increased year an

total for to greater Volumes second fuel fuel improved retail realize This to gallons through grew dates quarter consignment Fuel locations rate the per discounts locations of contribution dollar the quarter. to related XX.X% strong quarter, million continued margins. sold contribution gallon margin primarily XXXX, per higher XX% the costs, prompt-pay due consignment from gallon to compared or compared wholesale. company greater to increased prior Fuel margin also $X.XX consignment locations. $X.X to $X.XXX the of year and from were RAC to

However, dollar contribution fuel of wholesale. it for accounted for margin total approximately XX%

quarter second increase as on, million same including operating $XX.X or result prior acquisitions. of store higher a XXXX card to XX.X% increased stores, expenses our credit in due Moving year at expenses fees and personnel versus costs, an

seeing we In applicant improving. are pool our terms of hiring,

are historical While and retain we continue while marketing. pool, and a special smaller inherent turnover incentives to keeping recruiting vacancies industry see fill up with to store the through we steps our staff to opening additional taking than

Net Moving million by versus on results. prior $X.X and $X.X to to financial more the quarter expenses year quarter. decreased the for million interest other

million warrants. in EBITDA associated adjustments of of to fair XXXX. compared was $X.X million, million quarter, we Adjusted value primarily public $XX During the the our increase current with or X.X% an second $X.X recorded quarter favorable

Our or million net almost income $XX.X was $X.X more of in XXXX. $XX.X million, an to increase million XX% than QX compared

June maintained short-term As our and we million. investments position, of approximately XXXX, $XXX of including cash strong liquidity equivalents and XX, cash

million. was leases, net capital $XXX excluding debt, resulting outstanding $XXX million, debt in Our approximately of

release, expenditures net Higher CapEx was for our in quarter facilitate of driven delis compared million second to cash dispensers investments by the stores, in quarter million XXXX. upgrades prior and expansion operating were provided the quarter. For versus and our to the to subsidiaries, including provide to installing $XX.X activities Capital and third tax quarter, the for business expect year equipment. earnings an $XX.X in we million bean-to-cup coffee Yesterday, million Sbarro $XX.X was field savings, remodeling $XX.X will initiated by will this third be streamline to completed change end in restructuring status cost that noted largely internal we of quarter. a in company the our that other certain which quarter, synergies by the operations and the include the long-term of

expect Given expense noncash quarter the approximately the of third restructuring, million. a tax we onetime to record $X.X in

use approximately announced per of of repurchased $XX million Our declared on repurchase second price quarterly average a opportunistic of an million under paid believe be September Board common stock to In previously We is share of million XXXX. dividend There Directors XX, of $XX at date $X.XX capital. million XXXX, record our stock shares $X.XX an of a August with company total the remaining common a program. XX, stock paid. quarter, of of this the $XX for are X.X

there As of of August X,XXX The to with were approximately X,XXX stock million retail continues common XX.X X, outstanding. sites. scale sites company wholesale and shares

the been call note results. turn quarter has I'll great of that I this back financial another Arie, As to

this through navigate execute we to challenging continue We as environment.

Arie Kotler

term. the make Thanks, right close as long confident as by that for delivering we capability we long-term Don. about place growth execution saying well believe I will me in have strategy the that

in well Our business has exceptionally challenging a environment. performed

stockholders. positioned to very is future well I our deliver to believe model value resilient, and Our we're

We year. second this very half of about the excited are

now take will your We questions.

Operator

the Markets. BMO question Bania first Capital Our comes with Kelly from [Operator line of Instructions]

Ben Wood

and Just a could Hi, quarter? gallons. for trying relative own with retail if to wanted Don. in have of and you Ben may how to decline. We is the quarter? on impacted the sales did get how sales And us same-store Wood prices Arie And start give same-store just Kelly. This maybe to come peak cadence of over a sense gas expectations for internal the gallon your that gallon

Arie Kotler

I as my higher here. about optimize We did basically is is on stay did that's the to volumes. margin. over it, can do is Well, question lead $X, staying less, over led to more by that here. Sure. currently market operate. markets, when to at in that's those entire there mentioned I mentioned goes always, career, what driving that. see, Thank seen, as what There especially we call, people the you I've no results which But strategy increase the of to our lower in way, the you. to And we business. less, very competitive through competitive the day And profitability price market we the end prices by were the to often the But coming really as never driving store and overall obviously, while

Ben Wood

then that, What more And helpful. wholesale following line seeing that for up retail? That's look challenged. growth? opportunities Great. you of or on side, Or wholesale in are kind guess down equally the I track on -- with less does

Arie Kotler

you thing. we coming leverage, mom trends at right are down sometime most we a accounts, that. percentage we to same pop. prices we direction. we from down last sold a I now, side. the retail retail I And sudden, wholesale least And the our a around sold right all And I are of talking mean, different the enjoy the as we same of as gallons -- in can But Those their the national slowdown probably mid-June. in July, because at price you was see almost those and the or we're are hit gallons think $X that as over the And same see, were see $X. $X And can time challenge the a guys time, at see down. mean, here actually dramatically. volume them when beginning going of they saw of I same see on thing in see mean, up now we are that

Ben Wood

on more helpful. that coming quarter are and increases price through? more just us could if super could Were prices. in one line what impact the And pass supplier side? able store I'm question the on the I inflation commentary side, you give And That's just any everything you in on Okay. you if inside more seeing sneak on the wondering to down had merchandise

Arie Kotler

the price increases, we be quarter, to were we to increase There's in -- to very have of and during we no saw prices question , last course, that continue competitive, able some some cases. while

I think That's The see what $XX customers loyal loyal go loyal customers continue basically to and we provide a during more customers. we great difference here over oil that's a spending between saw the we inflation. we nonloyal our trend an increase we is the with make to increase And as in we customers. able to through do than sure that customer. all customer. reason actually as And continue were our promotions actually I inflation, prices to the are nonroyal the customer think to to over be going continue

Operator

comes Bobby Griffin of line next from James. Raymond Please Our proceed. the question with

Bobby Griffin

strategy for gross there gallons. guys and my buddies. And a of starts the up the you how profit back you dollars, gallon of guess, the gallon Thanks there fuel inside just or the curious, for think I more hurt us store something? is versus circle store about when on decline look on from traffic certain of Good balancing well. just kind a first morning, think think GP as Don, at retail you you help business the maximizing anything is questions. Arie question us the taking the inside to decline that to level So about standpoint as

Arie Kotler

Sure, sure, sure.

very, mentioned I making we one We market And is California, any that sure We're in-store Bobby, people And watching this I data. on our carefully. we still $X that competitively. always and our of course. earlier, is reason as the is us something mark, this very of during IRI I always other we're mentioned. So maintain something watch That's that share, stay than the the think don't this career in this based and watching.

just gallons the So less -- over were did not profitability, when just they about that down we don't there. share. I lost It's because gallons talk that lieu have there. the it's income It's market we don't the markets we in just believe not business, discretionary drove that of increasing people

often. as market turning people see, reason think I working Again, increase to remain we right really another that in when like launches, to We're That's have that life. my saw in that's while gallons can think now I it's we coffee, mean, $X our put in stores And think I really people basically -- that we do mean to are don't you're direction in why are time are I our are historically. were something the to have with see But reason have what Those any profitability almost be do that actually with manufacturers have make They And And are impact also the that may that stores we saw that we never the that. purchases, now. actually price it's anything fuel less. the our to in driving I sure July, we items. more is the food for of actually reformatting place. coming in I to the we June, stores with investing I right going with this in often but that's on was I service. things as markets the the promotion less. down, able business. able that. of that believe sure actually in-store small you right we that because of share they're promotions. make the right said, visits. like coming reason inside while more We we right the

Bobby Griffin

difference in that number increase. in per there of the the helpful. I very the and And right hour just all hours Or now? press cost? Okay. of think That's $X.X out the cost stores. expenses, basis release, the Is side called trying Don, stores on think is personnel then, more to per being million labor of operating the the you inside Just running ran between hour on hours a you're store

Donald Bassell

being still a is worked in a getting There things. of the everybody obviously, Great up across as are it's more market. of one, is experiencing Yes. hours combination couple question average we're the because wage Number paying we pool better, because doing the too. applicant offering is bit we're where it. want there's not factor although incentives. things a But another -- there, little We're

One think that all so which is we of associates $XXX too. appreciate a things hours the XXX did, offered part the I we that our That's it employees -- existing for of for numbers, we

anybody offered we So for Day. of as employed that Memorial

who employees, new just any that are also gotten for recognition not not getting So too. something but employees have

a all think drivers the itself biggest going one is think up. three. But of hourly combination So the I I wage it's of

Bobby Griffin

you done Okay. quarter to from could on there potential savings And then you multiyear any think lastly streamlining, from us a be anything the over expectations period? about think the gain all the about could once benefit third that help into in that us, just that's or the early and XXXX? Or what realignment

Donald Bassell

Yes.

think starting will we at expect could but a over a We higher minimum place, $X.X than just But from it that. think minimum, at it year, a minimum, much a million million. be $X.X over at be we a

Bobby Griffin

details of luck Okay. I and appreciate second in best you. half. the the Thank

Operator

of Wells proceed. Please Bonadio line the with Anthony Our Fargo. comes question from next

Anthony Bonadio

Hey, good on the beat. morning, Congrats guys.

thinking of ask have fuel to And so OPUS how in of which first the as I sustainable margins. level what sort a The far historically. quickly Is declined, just sort future? data sense with like, foreseeable prices at point seen continued weeks again on guys what looks accelerate then the to we of into level what in five makes prices be are gas think you I seeing more we've given QX? in wanted So that July line should some assuming out about

Arie Kotler

down, of this we comment only in thing are people with Anthony, historically, a There I can't yes, come we people declining fuel correlation an QX. on is driving And is correlation price and increase think I not comment on that is I are day, out see The between relying everybody driving getting I something want of and price more, just that, fuel on, absolutely end gallons. saw of and just only that at remember to we there. and that. the the make sure of more fuel. that can

sales, looking stores. because you're We excluding business and the others. points is some we this of XXX increase inside bit important, is good. health something on very insights of a very our If deliver cigarettes, our inside are The than increase very, very, basis little different

for see more mean I what $X. $X see. our store. down is I looking the of fuel, really profit in can inside gross is at imagine, you this you're up was of of If the end with are fuel day, million gross to think profit than going when can on same price price $X.X as of the that store you lieu that's what a we And

Anthony Bonadio

that in a helpful. just it. It big different just points help piggybacking solid you And prepared quarter. are versus obviously, on factors? mix remarks. then Got much there? what guess that, understand basis other sounded new play of guys initiatives, us That's what XXX in And the role another PR on Can the coffee like how the the from was extent then on merch a starting to go came grab you things I margins, based coolers, and said to contributor mix your machines like

Arie Kotler

sure. Sure,

Alcohol, X%. frozen were increase same increase increased up snacks, sweet in of we X%. of snack And the over thing with mentioned, I foods, the also again, -- salty actually an goes XX.X% sales. quarter, bigger with was driver the margin So as sorry, an a to see this beer an over XX.X%

margin. an packs packs, as to and the that we packs, that alcohol they of OTP. driver. six not or I buy right another well lower given people decline cigarettes but was course, think increase thing only XX continue in see now always as inflation, go have XX may mention we cigarettes, as I to may a sales see is well OTP

increased in moving are quarter increase are that's to I an this we're because see OTP Those driving of X.X% believe forward of margin categories X.XX%. a continue the the categories increase that However, lot. to basically And going really And with that additional that. margin.

Anthony Bonadio

That's helpful. guys. luck. Thanks so much, Good

Operator

Our Stifel. next the Please comes proceed. of Mark Astrachan from line question with

Mark Astrachan

about everyone. questions the of Arie, of And and trying talk gas of the same-store to just Two traffic fuel prices that how today drivers on different get here? could heightened relative maybe kind sales down. Thanks, And even strokes asking from relative sort a ebbs question, and to to in some a margin the you on of think quick and generally general second see retail of magnitude One, bit why into continuing for the me. maybe about to pre-pandemic we're we're costs we fuel questions levels, broader June. of get stores other I morning, of impact or building or higher and sense slightly up then flows think

you that how it of if get Thank looking about talk the going makes about and second a kind think kind forward of could sense sense. maybe backwards, So of through we if cadence quarter, to can you.

Arie Kotler

you all little a comment full time prices. on a was the I'm fuel with buzzy. second hard the as Sure. said, first basically I question, line had high quarter, Mark, going of to hearing

fuel high small business, do As secondary I role markets, a the we are in market prices, in think town. earlier, lot I of said especially a that we

not were repeat driving just again. because the that sales. in-store our less. in money think And Again, is impact going just there's pockets. their again, that less this People I'm did that I it think -- issue I is to

the difference I came in that Our they are that line people really the more did in-store here they versus over And was in change as trips often, said, with and our only see pandemic, small think the pandemic in sales, trips just think did the I is that behavior the expectations. were in but And it's now the came -- during coming less more of back what before sizes right people often people big again. that we coming sizes, often, is there. lot bought over I pandemic,

impact. of price more think over is fuel and think I coming something again baskets again, just will will is, $X. more people often, less, often I don't think coming but over actually that see buying this jump that this we unless here. smaller I don't driving

As it's dramatically as will I $X. of be the a fact, below business actually, matter gas of going improve to our price think,

Donald Bassell

me margin about increased I the let in. question don't Mark, Arie think first the hear level. jump could

when things mean up this about million we gone is though $X.X the margins retail amount. I prices. even talked I also, think went increased, higher to have of They to about think, cards a tremendous One due up credit

fuel our of credit is most cards. on So bought

We've also run a have you So lot we about cost of most to just had. the the inflation of we after credit people higher were see site, cards think to as got it. it due to different when increased margin, way think which than

going have You of costs have increased kinds costs, labor through. all you

that things are And talking increased no is hold, think that also margin. started. that what area has and our between support to been we're going lot of of I lower increased an since are kind happened a costs these of business seeing cards one pandemic knows competitors some drivers labor, So We've but about. of credit in future what there's cost of the the because the

Operator

line proceed. Martinson from with of Please Jefferies. question next Karru Our comes the

Karru Martinson

feel expand I gas Historically, down. or like prices morning. industry as the has even to come hold Good able been margin

do had Or of feel this those are still is summer, kind spike this unprecedented dynamics the a different that we Given holding? you situation?

Arie Kotler

dynamic the holding. still think I Yes, is

volatility the It's thing. of July. depends have that maintain dropped almost that's very dropped mean margin. volatility. price in And to and by to dramatically. very I $X.XX. The weeks, think dropped you is a as great. something really $X.XX, I dramatically, of period, beginning in couple price like price always very, from that's is over what the But always you Basically good helpful same also historically, when a saw short like mentioned, -- mentioned, it we really really,

Karru Martinson

when then like today you look a you out, And guys or year Okay. just for XXst acquisition? you tuck-ins additional certainly recognizing larger more acquisition. perhaps for transformative even look landscape What's the the did

Arie Kotler

question. Sure. That's a good

To a think great XX And this past very a I areas active operating So probably time is chain best be hard chain our small we savvy because years. lot a of I operator. environment. over The us. I is practice is in one very opportunity a very, very, the over that tell having the very everybody this very, of can here pipeline midsized mean that's or pipeline that for active.

liquidity. enough have We

us We meaningful the course, deal-making the some help over acquisitions tremendously course, out next are and have basically and few there Street, the those after acquisitions of with ability, we Oak of will strategic there's to months partnership go course, of that, exploring.

Operator

Our Barclays. with next proceed. question comes from Hale the Holden of line Please

Hale Holden

kind considering financing the as in that's either the of the Kind you're good their on there there valuations out seen that's out kind the normal there. same higher valuations? of changes options, the that's you're spread above if there, spread M&A costs Hi, market or was or bring theme I sellers wondering morning. cost way you've if fuel gas thinking about out of down

Arie Kotler

are as down that there big see of I amount valuations XX going past our got out reasonable at strategy you paid We imagine. one a of not don't is think the over just Sellers is valuation, continue. can as in thing. expectation I what acquisition the of just happening that deals for we pursuing expectation are that mean deals bring we going given we sellers' overpay to out we transaction believe never there. Everybody to terms did.

interest market who think you And as determine mentioned, is I out rate is will up. there. going the

are Oak at line agreement of Oak available basically Our a the for rate. that available that Street, the with in have year, very, commitment $X.XX we the credit of attractive have with plus we very hand on billion next a cash Street

a very going that's think spot. good I something basically very, is to us put this in

attractive And bit you guys very, raised of put the can very a As the for rates on that over we actually makes think that our I little us at those we seven in years. remember, valuation deals. fixed bonds terms

Operator

session. Kotler this Ladies for turn I'd our call like the concludes back and Arie to to remarks. gentlemen, question-and-answer And closing any

Arie Kotler

the the Enjoy just to cups. rest try Thank Thank all you, make of summer. And coffee guys the rest summer, thank enjoying operator. like stop of sure course, you everybody, wish of us today. I stores the I one you, you sure would excellent our the the rest that enjoy make to, you're you. of while of best. again, at day. And the iced one you joining of for our

Operator

today's conference. Thank concludes your participation. This for you

now You disconnect. may

Arko (ARKO) 13 Aug 222022 Q2 Earnings call transcript