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Press release content from Business Wire. The AP news staff was not involved in its creation.

TravelCenters of America Inc. Announces Third Quarter 2021 Financial Results

November 1, 2021 GMT

WESTLAKE, Ohio--(BUSINESS WIRE)--Nov 1, 2021--

TravelCenters of America Inc. (Nasdaq: TA) today announced financial results for the quarter ended September 30, 2021.

Jonathan M. Pertchik, TA’s Chief Executive Officer, made the following statement regarding the 2021 third quarter results:

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“TA’s strong operating results for the third quarter continue to demonstrate our successful execution on the transformation plan that we began implementing last year, as net income improved to $22.2 million from $8.7 million and Adjusted EBITDA improved by almost 28% to $65.2 million from $51.1 million as compared to the prior year period. We achieved resilient and improved profitability across nearly all business lines, despite significant ongoing COVID-related labor and supply chain challenges. Looking ahead, we are excited about ending this year strong and moving into next year as our capital plan will leverage our robust balance sheet through site refreshes, technology improvements and other activities, including possible acquisitions, to drive continuous, excellent performance and take our Company successfully into its 50 th anniversary year.”

Reconciliations to GAAP:

Adjusted net income, adjusted net income per share of common stock attributable to common stockholders, EBITDA, adjusted EBITDA, adjusted EBITDAR and adjusted EBITDAR margin are non-GAAP financial measures. The U.S. generally accepted accounting principles, or GAAP, financial measures that are most directly comparable to the non-GAAP measures disclosed herein are included in the supplemental tables below.

Third Quarter 2021 Highlights:

  • Cash and cash equivalents of $621.1 million and availability under TA’s revolving credit facility of $94.1 million for total liquidity of $715.2 million as of September 30, 2021.
  • The following table presents detailed results for TA’s fuel sales for the 2021 and 2020 third quarters.

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(in thousands, except per gallon amounts)

Three Months Ended

September 30,

 

 

2021

 

2020

 

Change

Fuel sales volume (gallons):

 

 

 

 

 

Diesel fuel

513,827

 

 

485,488

 

 

5.8

%

Gasoline

72,021

 

 

69,614

 

 

3.5

%

Total fuel sales volume

585,848

 

 

555,102

 

 

5.5

%

 

 

 

 

 

 

Fuel gross margin

$

106,010

 

 

$

80,123

 

 

32.3

%

Fuel gross margin per gallon

$

0.181

 

 

$

0.144

 

 

25.7

%

  • The following table presents detailed results for TA’s nonfuel revenues for the 2021 and 2020 third quarters.

(in thousands, except percentages)

Three Months Ended

September 30,

 

 

2021

 

2020

 

Change

Nonfuel revenues:

 

 

 

 

 

Store and retail services

$

197,842

 

 

$

179,517

 

 

10.2

%

Truck service

200,192

 

 

189,630

 

 

5.6

%

Restaurant

79,850

 

 

77,665

 

 

2.8

%

Diesel exhaust fluid

33,179

 

 

27,285

 

 

21.6

%

Total nonfuel revenues

$

511,063

 

 

$

474,097

 

 

7.8

%

 

 

 

 

 

 

Nonfuel gross margin

$

304,798

 

 

$

285,983

 

 

6.6

%

Nonfuel gross margin percentage

59.6

%

 

60.3

%

 

(70)

pts

  • Net income of $22.2 million improved $13.5 million, or 156.4%, and adjusted net income of $22.2 million improved $5.9 million, or 36.0%, as compared to the prior year period.
  • Adjusted EBITDA of $65.2 million increased $14.1 million, or 27.7%, as compared to the prior year period.
  • Adjusted EBITDAR of $129.1 million increased $14.1 million, or 12.2%, as compared to the prior year period.
  • Adjusted EBITDAR margin increased to 20.9% from 20.7% for the prior year period.

     

Growth and Cost Control Strategies

During the 2020 second quarter, TA commenced a strategic transformation and turnaround plan, or its Transformation Plan, consisting of numerous initiatives across its organization for the purpose of expanding its travel center network, improving and enhancing operational efficiencies and profitability, and strengthening its financial position all in support of its core mission to return every traveler to the road better than they came. Among these initiatives was a corporate restructuring that resulted in immediate selling, general and administrative expense savings and the hiring of many new members of management. TA also created a centralized procurement group to drive economies of scale in pricing and increased leverage in vendor negotiations which is leading to substantial purchasing savings and a streamlined operation. Other key initiatives are focused in areas of liquidity, expanding TA’s franchise base, increasing diesel fuel and gasoline gross margin and fuel sales volume, increasing market share in the truck service business, improving merchandising and increasing gross margin in store and retail services, improving operating effectiveness in TA’s food service offerings and improving information technology systems, while focusing on opportunities to control and rationalize costs.

Since the beginning of 2019, TA has entered into franchise agreements for 52 travel centers to be operated under its travel center brand names; four of these franchised travel centers began operations during 2019, 10 began operations during 2020 and four began operations during the nine months ended September 30, 2021. TA expects the remaining 34 to open by the third quarter of 2023.

As a result of nationwide labor and supply chain challenges, TA’s capital expenditures plan has been impacted and it is currently expected to be in the range of $80.0 million to $100.0 million in 2021. We do not believe that this delay will have a material impact on the underlying operating business. The 2021 capital expenditures include projects to enhance the guest experience through significant upgrades at TA’s travel centers and to improve TA’s technology systems infrastructure. Approximately half of TA’s capital expenditures in 2021 are focused on growth initiatives that TA expects will meet or exceed TA’s 15% to 20% cash on cash return hurdle.

Importantly, TA is committed to embracing environmentally friendly sources of energy through its eTA division, which seeks to deliver sustainable and alternative energy to the marketplace and focus on working with the public sector, private companies and customers to facilitate a possible industry transformation. This business division extends TA’s commitment to providing the widest range of commercially prudent and practicable non-fuel offerings across its sites. Recent accomplishments include continued expansion of TA’s biodiesel blending capabilities, availability of diesel exhaust fluid, or DEF, at the pump and placement of electric vehicle charging stations. TA believes its large, well-located sites and its focus as a pure supplier may provide TA with the opportunity to make both fossil and, eventually, non-fossil fuels available and to potentially balance or adjust its product and service offerings as it may determine and subject to availability.

Conference Call

On November 2, 2021, at 10:00 a.m. Eastern time, TA will host a conference call to discuss its financial results and other activities for the three months ended September 30, 2021. Following management’s remarks, there will be a question and answer period.

The conference call telephone number is 877-329-4614. Participants calling from outside the United States and Canada should dial 412-317-5437. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available for about a week after the call. To hear the replay, dial 877-344-7529 in the United States, 855-669-9658 in Canada, and 412-317-0088 in other countries. The replay pass code is 10160345.

A live audio webcast of the conference call will also be available in a listen only mode on TA’s website at www.ta-petro.com. To access the webcast, participants should visit TA’s website about five minutes before the call. The archived webcast will be available for replay on TA’s website for about one week after the call. The transcription, recording and retransmission in any way of TA’s third quarter conference call is strictly prohibited without the prior written consent of TA. The Company’s website is not incorporated as part of this press release.

About TravelCenters of America Inc.

TravelCenters of America Inc. (Nasdaq: TA) is the nation’s largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its more than 18,000 team members serve guests in over 275 locations in 44 states and Canada, principally under the TA®, Petro Stopping Centers® and TA Express® brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking and other services dedicated to providing great experiences for its guests. TA is committed to sustainability, with its specialized business unit, eTA, focused on sustainable energy options for professional drivers and motorists, while leveraging alternative energy to support its own operations. TA operates over 600 full-service and quick-service restaurants and nine proprietary brands, including Iron Skillet® and Country Pride®. For more information, visit www.ta-petro.com.

TRAVELCENTERS OF AMERICA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

Fuel

$

1,424,997

 

 

$

791,880

 

 

$

3,830,886

 

 

$

2,244,219

 

Nonfuel

511,063

 

 

474,097

 

 

1,460,787

 

 

1,304,674

 

Rent and royalties from franchisees

3,886

 

 

3,947

 

 

11,649

 

 

10,482

 

Total revenues

1,939,946

 

 

1,269,924

 

 

5,303,322

 

 

3,559,375

 

 

 

 

 

 

 

 

 

Cost of goods sold (excluding depreciation):

 

 

 

 

 

 

 

Fuel

1,318,987

 

 

711,757

 

 

3,547,154

 

 

1,990,241

 

Nonfuel

206,265

 

 

188,114

 

 

577,195

 

 

512,784

 

Total cost of goods sold

1,525,252

 

 

899,871

 

 

4,124,349

 

 

2,503,025

 

 

 

 

 

 

 

 

 

Site level operating expense

246,871

 

 

221,864

 

 

708,097

 

 

655,950

 

Selling, general and administrative expense

39,563

 

 

32,967

 

 

112,083

 

 

108,171

 

Real estate rent expense

63,898

 

 

65,226

 

 

191,378

 

 

191,893

 

Depreciation and amortization expense

24,276

 

 

32,299

 

 

72,244

 

 

89,113

 

Other operating expense (income), net

230

 

 

 

 

(642)

 

 

 

 

 

 

 

 

 

 

 

Income from operations

39,856

 

 

17,697

 

 

95,813

 

 

11,223

 

 

 

 

 

 

 

 

 

Interest expense, net

11,843

 

 

7,375

 

 

34,966

 

 

22,064

 

Other (income) expense, net

(1,034)

 

 

233

 

 

1,667

 

 

1,109

 

Income (loss) before income taxes

29,047

 

 

10,089

 

 

59,180

 

 

(11,950)

 

(Provision) benefit for income taxes

(6,847)

 

 

(1,432)

 

 

(13,776)

 

 

4,222

 

Net income (loss)

22,200

 

 

8,657

 

 

45,404

 

 

(7,728)

 

Less: net income (loss) for noncontrolling interest

 

 

52

 

 

(333)

 

 

104

 

Net income (loss) attributable to
common stockholders

$

22,200

 

 

$

8,605

 

 

$

45,737

 

 

$

(7,832)

 

 

 

 

 

 

 

 

 

Net income (loss) per share of common stock

attributable to common stockholders:

 

 

 

 

 

 

 

Basic and diluted

$

1.52

 

 

$

0.61

 

 

$

3.14

 

 

$

(0.76)

 

 

 

 

 

 

 

 

 

Weighted average vested shares of

common stock

14,254

 

 

13,779

 

 

14,239

 

 

9,890

 

Weighted average unvested shares of

common stock

327

 

 

286

 

 

334

 

 

358

 

These financial statements should be read in conjunction with TA’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, to be filed with the U.S. Securities and Exchange Commission.

TRAVELCENTERS OF AMERICA INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per share amounts)

TA believes the non-GAAP financial measures presented in the tables below are meaningful supplemental disclosures. Management uses these measures in developing internal budgets and forecasts and analyzing TA’s performance and believes that they may help investors gain a better understanding of changes in TA’s operating results and its ability to pay rent or service debt when due, make capital expenditures and expand its business. These non-GAAP financial measures also may help investors to make comparisons between TA and other companies and to make comparisons of TA’s financial and operating results between periods.

The non-GAAP financial measures TA presents should not be considered as alternatives to net income (loss) attributable to common stockholders, net income (loss), income (loss) from operations, operating margin, total fuel gross margin and nonfuel revenues or net income (loss) per share of common stock attributable to common stockholders as an indicator of TA’s operating performance or as a measure of TA’s liquidity. Also, the non-GAAP financial measures TA presents may not be comparable to similarly titled amounts calculated by other companies.

TA believes that adjusted net income (loss), adjusted net income (loss) per share of common stock attributable to common stockholders, EBITDA and adjusted EBITDA are meaningful disclosures that may help investors to better understand TA’s financial performance by providing financial information that represents the operating results of TA’s operations without the effects of items that do not result directly from TA’s normal recurring operations and may allow investors to better compare TA’s performance between periods and to the performance of other companies. TA calculates EBITDA as net income (loss) before interest, income taxes and depreciation and amortization expense, as shown below. TA calculates adjusted EBITDA by excluding items that it considers not to be normal, recurring, cash operating expenses or gains or losses.

In addition, TA believes that, because it leases a majority of its travel centers, presenting adjusted EBITDAR and adjusted EBITDAR margin may help investors compare the value of TA against companies that own and finance ownership of their properties with debt financing, since these measures eliminate the effects of variability in leasing methods and capital structures. These measures may also help investors evaluate TA’s valuation if it owned its leased properties and financed that ownership with debt, in which case the interest expense TA incurred for that debt financing would be added back when calculating EBITDA. Adjusted EBITDAR and adjusted EBITDAR margin are presented solely as valuation measures and should not be viewed as measures of overall operating performance or considered in isolation or as an alternative to net income (loss) because they exclude the real estate rent expense associated with TA’s leases and they are presented for the limited purposes referenced herein. TA calculates EBITDAR as net income (loss) before interest, income taxes, real estate rent expense and depreciation and amortization expense and adjusted EBITDAR by excluding items that it considers not to be normal, recurring, cash operating expenses or gains or losses. TA calculates adjusted EBITDAR margin as adjusted EBITDAR as a percentage of total fuel gross margin and nonfuel revenues.

TA believes that net income (loss) is the most directly comparable GAAP financial measure to adjusted net income (loss), EBITDA, adjusted EBITDA and adjusted EBITDAR, net income (loss) per share of common stock attributable to common stockholders is the most directly comparable GAAP financial measure to adjusted net income (loss) per share of common stock attributable to common stockholders and operating margin is the most directly comparable GAAP financial measure to adjusted EBITDAR margin.

The following tables present the reconciliations of the non-GAAP financial measures to the respective most directly comparable GAAP financial measures for the three and nine months ended September 30, 2021 and 2020.

TRAVELCENTERS OF AMERICA INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per share amounts)

Calculation of adjusted net income:

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2021

 

2020

 

2021

 

2020

Net income (loss)

 

$

22,200

 

 

$

8,657

 

 

$

45,404

 

 

$

(7,728)

 

Add: Reorganization Plan costs (1)

 

 

 

 

 

 

 

4,288

 

Add: Goodwill impairment (2)

 

 

 

 

 

 

 

3,046

 

Add: QSL impairment (3)

 

 

 

 

 

650

 

 

 

Add: Asset write offs (4)

 

 

 

2,372

 

 

 

 

8,906

 

Add: Field employee bonus expense (5)

 

 

 

 

 

 

 

3,769

 

Add: Executive compensation expense (6)

 

 

 

 

 

 

 

2,109

 

Add: Equity investment ownership dilution (7)

 

 

 

 

 

1,826

 

 

 

Add: Impairment of operating lease assets (8)

 

 

 

1,262

 

 

 

 

1,262

 

Add: Impairment of property and equipment (8)

 

 

 

6,610

 

 

 

 

6,610

 

Less: Gain on sale of assets, net (9)

 

 

 

 

 

(897)

 

 

 

Less: Tax impact of adjusting items (10)

 

 

 

(2,581)

 

 

(331)

 

 

(7,557)

 

Adjusted net income (11)

 

$

22,200

 

 

$

16,320

 

 

$

46,652

 

 

$

14,705

 

Calculation of adjusted net income per share of common stock attributable to

common stockholders (basic and diluted):

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2021

 

2020

 

2021

 

2020

Net income (loss) per share of common stock attributable to common stockholders

(basic and diluted)

 

$

1.52

 

 

$

0.61

 

 

$

3.14

 

 

$

(0.76)

 

Add: Reorganization Plan costs (1)

 

 

 

 

 

 

 

0.42

 

Add: Goodwill impairment (2)

 

 

 

 

 

 

 

0.30

 

Add: QSL impairment (3)

 

 

 

 

 

0.04

 

 

 

Add: Asset write offs (4)

 

 

 

0.17

 

 

 

 

0.87

 

Add: Field employee bonus expense (5)

 

 

 

 

 

 

 

0.37

 

Add: Executive compensation expense (6)

 

 

 

 

 

 

 

0.21

 

Add: Equity investment ownership dilution (7)

 

 

 

 

 

0.13

 

 

 

Add: Impairment of operating lease assets (8)

 

 

 

0.09

 

 

 

 

0.12

 

Add: Impairment of property and equipment (8)

 

 

 

0.47

 

 

 

 

0.64

 

Less: Gain on sale of assets, net (9)

 

 

 

 

 

(0.06)

 

 

 

Less: Tax impact of adjusting items (10)

 

 

 

(0.18)

 

 

(0.02)

 

 

(0.74)

 

Adjusted net income per share of common stock attributable to common stockholders (basic and diluted) (11)

 

$

1.52

 

 

$

1.16

 

 

$

3.23

 

 

$

1.43

 

Calculation of EBITDA, adjusted EBITDA and adjusted EBITDAR:

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2021

 

2020

 

2021

 

2020

Net income (loss)

 

$

22,200

 

 

$

8,657

 

 

$

45,404

 

 

$

(7,728)

 

Add (less): Provision (benefit) for

income taxes

 

6,847

 

 

1,432

 

 

13,776

 

 

(4,222)

 

Add: Depreciation and amortization expense

 

24,276

 

 

32,299

 

 

72,244

 

 

89,113

 

Add: Interest expense, net

 

11,843

 

 

7,375

 

 

34,966

 

 

22,064

 

EBITDA

 

65,166

 

 

49,763

 

 

166,390

 

 

99,227

 

Add: Reorganization Plan costs (1)

 

 

 

 

 

 

 

4,288

 

Add: Field employee bonus expense (5)

 

 

 

 

 

 

 

3,769

 

Add: Executive compensation expense (6)

 

 

 

 

 

 

 

2,109

 

Add: Equity investment ownership dilution (7)

 

 

 

 

 

1,826

 

 

 

Add: Impairment of operating lease assets (8)

 

 

 

1,262

 

 

 

 

1,262

 

Less: Gain on sale of assets, net (9)

 

 

 

 

 

(897)

 

 

 

Adjusted EBITDA (11)

 

65,166

 

 

51,025

 

 

167,319

 

 

110,655

 

Add: Real estate rent expense

 

63,898

 

 

65,226

 

 

191,378

 

 

191,893

 

Less: Impairment of operating lease assets (8)

 

 

 

(1,262)

 

 

 

 

(1,262)

 

Adjusted EBITDAR (11)

 

$

129,064

 

 

$

114,989

 

 

$

358,697

 

 

$

301,286

 

Calculation of operating margin:

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2021

 

2020

 

2021

 

2020

Total revenues

 

$

1,939,946

 

 

$

1,269,924

 

 

$

5,303,322

 

 

$

3,559,375

 

Income from operations

 

39,856

 

 

17,697

 

 

95,813

 

 

11,223

 

Operating margin

 

2.1

%

 

1.4

%

 

1.8

%

 

0.3

%

 

Calculation of adjusted EBITDAR margin:

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2021

 

2020

 

2021

 

2020

Fuel gross margin

 

$

106,010

 

$

80,123

 

$

283,732

 

 

$

253,978

 

Nonfuel revenues

 

511,063

 

474,097

 

1,460,787

 

 

1,304,674

 

Total fuel gross margin and nonfuel revenues

 

$

617,073

 

$

554,220

 

$

1,744,519

 

 

$

1,558,652

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR (11)

 

$

129,064

 

 

$

114,989

 

 

$

358,697

 

 

$

301,286

 

Adjusted EBITDAR margin

 

20.9

%

 

20.7

%

 

20.6

%

 

19.3

%

(1)Reorganization Plan Costs. On April 30, 2020, TA commenced a company-wide reorganization plan, or the Reorganization Plan. During the nine months ended September 30, 2020, TA recognized $4.3 million of costs related to the Reorganization Plan, which were included in selling, general and administrative expense in TA’s consolidated statements of operations and comprehensive income (loss).
(2)Goodwill Impairment. During the nine months ended September 30, 2020, TA recognized a goodwill impairment charge of $3.0 million with respect to its QSL reporting unit, which were recognized in depreciation and amortization expense in TA’s consolidated statements of operations and comprehensive income (loss).
(3)QSL Impairment. TA had classified its QSL business as held for sale as of December 31, 2020. During the nine months ended September 30, 2021 and prior to the sale, which was completed on April 21, 2021, TA recorded additional impairment charges of $650 relating to its QSL business, which were included in depreciation and amortization expense in TA’s consolidated statements of operations and comprehensive income (loss). Refer to note 8 below for more information on the sale of QSL.
(4)Asset Write Offs. During the nine months ended September 30, 2020, TA wrote off $0.8 million of intangibles relating to three QSL franchises that closed in April 2020. During the three and nine months ended September 30, 2020, TA wrote off $2.4 million and $8.1 million, respectively, related to truck service programs that were canceled. These amounts were included in depreciation and amortization expense in TA’s consolidated statements of operations and comprehensive income (loss).
(5)Field Employee Bonus Expense. In March and April 2020, TA paid cash bonuses to certain employees who continued to work at its locations during the COVID-19 pandemic. These bonuses resulted in additional compensation expense of $3.8 million for the nine months ended September 30, 2020, which was included in site level operating expense in TA’s consolidated statements of operations and comprehensive income (loss).
(6)Executive Compensation Expense. TA agreed to accelerate the vesting of previously granted stock awards and make cash payments as part of TA’s retirement and separation agreements with certain former executive officers. The accelerations and cash payments resulted in additional compensation expense of $2.1 million for the nine months ended September 30, 2020, which was included in selling, general and administrative expense in TA’s consolidated statements of operations and comprehensive income (loss).
(7)Equity Investment Ownership Dilution. During the nine months ended September 30, 2021, TA reduced its ownership in Epona, LLC, owner of QuikQ LLC, an equity method investment, to less than 50%, for which a loss of $1.8 million was included in other expense (income), net in TA’s consolidated statements of operations and comprehensive income (loss).
(8)Impairment of Property and Equipment and Operating Lease Assets. During the three and nine months ended September 30, 2020, TA recognized $6.6 million and $1.3 million of impairment charges to property and equipment and operating lease assets, respectively, related to certain standalone QSL restaurants. The impairment charges were recognized in depreciation and amortization expense and real estate rent expense, respectively, in TA’s consolidated statements of operations and comprehensive income (loss).
(9)Gain on Sale of Assets, Net. In May 2021, TA sold a property located in Mesquite, Texas for a sales price of $2.2 million, excluding selling costs. TA recognized a gain on the sale of $1.5 million. On April 21, 2021, TA completed the sale of its QSL business for $5.0 million, excluding costs to sell and certain closing adjustments. TA recognized a loss on the sale of $0.6 million. The gain and loss on the sale of assets were included in other operating expense (income), net for the nine months ended September 30, 2021.
(10)Tax Impact of Adjusting Items. TA calculated the income tax impact of the adjustments described above by using its estimated statutory income tax rates of 21.0% and 25.2% for the three and nine months ended September 30, 2021 and 2020, respectively.
(11) Reconciliations from net income (loss), or net income (loss) per share of common stock attributable to common stockholders (basic and diluted), the financial measures determined in accordance with GAAP to the non-GAAP financial measures disclosed herein, are included in the supplemental table above.

TRAVELCENTERS OF AMERICA INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)

 

September 30,
2021

 

December 31,
2020

Assets:

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

621,103

 

 

$

483,151

 

Accounts receivable, net

149,410

 

 

94,429

 

Inventory

169,543

 

 

172,830

 

Other current assets

22,129

 

 

35,506

 

Total current assets

962,185

 

 

785,916

 

 

 

 

 

Property and equipment, net

789,403

 

 

801,789

 

Operating lease assets

1,680,902

 

 

1,734,883

 

Goodwill

22,213

 

 

22,213

 

Intangible assets, net

11,060

 

 

11,529

 

Other noncurrent assets

110,438

 

 

87,530

 

Total assets

$

3,576,201

 

 

$

3,443,860

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

249,982

 

 

$

158,075

 

Current operating lease liabilities

116,046

 

 

111,255

 

Other current liabilities

207,311

 

 

175,867

 

Total current liabilities

573,339

 

 

445,197

 

 

 

 

 

Long term debt, net

524,925

 

 

525,397

 

Noncurrent operating lease liabilities

1,685,084

 

 

1,763,166

 

Other noncurrent liabilities

104,602

 

 

69,121

 

Total liabilities

2,887,950

 

 

2,802,881

 

 

 

 

 

Stockholders' equity (14,579 and 14,574 shares of common stock outstanding

as of September 30, 2021 and December 31, 2020, respectively)

688,251

 

 

640,979

 

Total liabilities and stockholders' equity

$

3,576,201

 

 

$

3,443,860

 

These financial statements should be read in conjunction with TA’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, to be filed with the U.S. Securities and Exchange Commission.

Warning Concerning Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever TA uses words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, TA is making forward-looking statements. These forward-looking statements are based upon TA’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by TA’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond TA’s control. Among others, the forward-looking statements which appear in this press release that may not occur include:

  • Statements about increased operating results may imply that TA will realize similar or better results in the future and that TA’s business may be profitable in the future. TA operates in a highly competitive industry and its business is subject to various market and other risks and challenges. As a result, TA may not be able to realize similar or better results in the future and it may fail to be profitable in the future for these or other reasons. Since TA became publicly traded in 2007, TA’s operations have generated losses and only occasionally generated profits;
  • Statements about TA commencing numerous initiatives that it believes will improve and enhance its operational efficiencies and profitability, increase diesel fuel and gasoline gross margin and fuel sales volume, increase market share in the truck service industry, improve merchandising and gross margin in store and retail services, improve operating effectiveness in its full service restaurants and expand its franchise base. Further, TA’s statements about performance improvements it believes it has already realized from certain of these changes. However, TA may not be able to recognize the improvements to its operating results that it anticipates. In addition, the costs incurred to complete the initiatives may be more than TA anticipates;
  • Statements about activities that will drive continuous and excellent future performance. TA may not be able to complete the planned activities in a timely manner or at all, and such activities may not have the anticipated operational or financial benefits;
  • Statements about various divisional changes and TA’s expected benefits from those changes. TA may not realize the benefits it expects from these changes;
  • Statements about TA’s capital plan and the resulting benefits TA expects for its business and performances. Capital plans may take longer to complete and cost more than expected. Further, the projects pursued may not turn out as planned and may result in TA not realizing the benefits it expects;
  • Statements about TA’s targeted returns on its capital expenditures. TA may not be able to realize those returns;
  • Statements about the commitment of TA’s 2021 capital expenditures plan being in the range of $80.0 million and $100.0 million. TA may spend less or more than that amount;
  • Statements about expected opening of new franchised locations and expecting to expand TA’s network by entering into new franchise agreements. TA may not succeed in entering these agreements and the commencement and stabilization of any new franchises may not occur, may be delayed or may not open, and these franchises may not be successful or generate the royalties for TA that it expects;
  • Statements about investing capital into relationships with companies that supply, distribute or store electric or other non-fossil fuel, alternative energy resources. TA may decide not to invest capital into these relationships and these relationships may not materialize or become beneficial, and if TA does further pursue this business or make these investments TA may not realize the returns or other benefits it may expect and TA could realize losses; and
  • Statements about TA’s eTA division, its management, its strategy and plan development, its California Energy Commission grant and its developing of collaborative relationships with groups in both electric and hydrogen vehicles. The alternative fuel market is still in its early stages and it is not clear which, if any, of those fuels and technologies will achieve commercial success and scale. As a result, it is uncertain how TA’s business may change, adapt or evolve for the new fuels and technologies. TA’s pursuit of any of these may not be successful and it may incur losses with respect to these efforts.

The information contained in TA’s periodic reports, including TA’s Annual Report on Form 10-K for the year ended December 31, 2020, which has been filed with the U.S. Securities and Exchange Commission, or SEC, and TA’s Quarterly Reports on Form 10-Q for the periods ended March 31, 2021, June 30, 2021 and September 30, 2021, which have been or will be filed with the SEC, under the caption “Risk Factors,” or elsewhere in those reports, or incorporated therein, identifies other important factors that could cause differences from TA’s forward-looking statements. TA’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements. Except as required by law, TA does not intend to update or change any forward-looking statement as a result of new information, future events or otherwise.

View source version on businesswire.com:https://www.businesswire.com/news/home/20211101005918/en/

CONTACT: Kristin Brown, Director of Investor Relations

(617) 796-8251

www.ta-petro.com

KEYWORD: OHIO UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: TRANSPORTATION AUTOMOTIVE TECHNOLOGY TRAVEL TRUCKING TRANSPORT OTHER AUTOMOTIVE GENERAL AUTOMOTIVE OIL/GAS ENERGY MOBILE/WIRELESS

SOURCE: TravelCenters - Financial

Copyright Business Wire 2021.

PUB: 11/01/2021 04:15 PM/DISC: 11/01/2021 04:16 PM

http://www.businesswire.com/news/home/20211101005918/en