TravelCenters of America LLC (Nasdaq: TA) today announced
financial results for the three months and year ended
December 31, 2016:
(in thousands, except per share and per
gallon amounts
unless indicated otherwise)
Three Months Ended December 31, Year
EndedDecember 31, 2016 2015
2016 2015 Total revenues $ 1,424,287 $
1,351,056 $ 5,511,405 $ 5,850,633 (Loss) income before income taxes
(10,849 ) (4,227 ) (3,662 ) 44,258 Net (loss) income attributable
to common shareholders (6,493 ) (1,608 ) (2,018 ) 27,719 Net
(loss) income per common share attributable to
common shareholders (basic and
diluted)
$ (0.17 ) $ (0.04 ) $ (0.05 ) $ 0.72 Supplemental Data: Fuel
sales volume (gallons): Diesel fuel 400,881 420,606 1,660,976
1,722,209 Gasoline 134,945 123,786 544,448
407,894 Total fuel sales volume (gallons) 535,826
544,392 2,205,424 2,130,103 Total fuel
revenues $ 941,852 $ 896,049 $ 3,530,149 $ 4,055,448 Fuel gross
margin 101,050 103,270 404,777 414,494 Fuel gross margin per gallon
$ 0.189 $ 0.190 $ 0.184 $ 0.195 Total nonfuel revenues $
478,218 $ 451,975 $ 1,963,904 $ 1,782,761 Nonfuel gross margin
256,353 240,609 1,053,077 962,766 Nonfuel gross margin percentage
53.6 % 53.2 % 53.6 % 54.0 % Adjusted EBITDA(1) $ 24,101 $
21,154 $ 116,453 $ 149,688
(1) A reconciliation of earnings before interest, taxes,
depreciation and amortization, and loss on extinguishment of debt,
or Adjusted EBITDA, from net (loss) income attributable to common
shareholders, the most directly comparable financial measure
calculated and presented in accordance with U.S. generally accepted
accounting principles, or GAAP, appears in the supplemental data
below.
Thomas M. O'Brien, TA's CEO, made the following statement
regarding the 2016 fourth quarter results:
"During the 2016 fourth quarter, our business strategies
resulted in gains in nonfuel gross margin as well as continued
improvement in operating efficiencies as reflected in lower site
level operating expenses on a same site basis. We grew site level
gross margin in excess of site level operating expenses in total
and on a same site basis. Fuel gross margin was negatively impacted
by the absence in the 2016 period of an $8.0 million pretax benefit
in the 2015 fourth quarter related to biodiesel fuel tax credits;
our 2016 performance made up for all but $2.2 million of this
amount, however net income attributable to common shareholders
declined, largely as a result of increased depreciation expense
associated with investments in new locations and existing site
improvements that were placed in service during the last year. The
combination of our internal and external growth activities outpaced
headwinds of increased fuel efficiency for heavy duty truck
engines, the impact of competition and a softness in freight
volume, resulting in an increase in Adjusted EBITDA of 13.9% in the
2016 fourth quarter versus 2015. Our results also reflect continued
improvement in financial contributions from our recently acquired
sites, and I remain confident in the prospect of realizing the
expected results from these investments."
Fourth Quarter 2016 Business
Commentary
Fuel sales volume decreased by 8.6 million gallons, or 1.6%, in
the 2016 fourth quarter compared to the 2015 fourth quarter
primarily due to a decrease in same site fuel volume. The same site
fuel sales volume decrease was attributed to fuel efficiency gains
by TA's commercial diesel fuel customers, new sites opened by
competition and a relatively soft trucking freight environment.
Fuel revenue increased by $45.8 million, or 5.1%, in the 2016
fourth quarter compared to the 2015 fourth quarter due to both
newly acquired locations and same site results. Same site fuel
revenues increased due to higher market prices for fuel, which was
offset by lower volumes. Fuel gross margin decreased slightly by
$2.2 million ($0.001 per gallon), to $101.1 million ($0.189 per
gallon) primarily as a result of the decline in fuel volume.
Nonfuel revenue increased $26.2 million, or 5.8%, in the 2016
fourth quarter compared to the 2015 fourth quarter: $25.1 million
of the increase was due to sites acquired since the beginning of
the 2015 fourth quarter, while $1.1 million, or 0.2%, of the
increase was attributable to same sites. Nonfuel gross margin
increased $15.7 million, or 6.5%, in the 2016 fourth quarter
compared to the 2015 fourth quarter primarily due to an $11.7
million increase from newly acquired locations, while $4.0 million
of the increase was attributable to growth in same site nonfuel
gross margin. Same site nonfuel gross margin in the 2016 fourth
quarter was 54.2% of nonfuel revenue, compared to 53.4% in the 2015
fourth quarter, a change largely attributable to the positive
impact of TA's purchasing and pricing strategies and TA's marketing
initiatives.
Site level operating expenses increased $5.1 million, or 2.2%,
in the 2016 fourth quarter compared to the 2015 fourth quarter: a
$9.2 million increase due to locations acquired since the beginning
of the 2015 fourth quarter, partially offset by a $4.1 million
decrease in same site results. On a same site basis, site level
operating expenses as a percentage of nonfuel revenues improved
from the prior year quarter by 1.1% to 49.8%.
Selling, general and administrative expenses for the 2016 fourth
quarter increased $2.9 million, or 8.6%, compared to the 2015
fourth quarter, principally as a result of increased personnel
costs, which resulted from increased field management and corporate
staffing required to support the growth of TA's business, as well
as planned increased spending on marketing and promotional
activities.
Real estate rent expense increased $5.4 million, or 8.7%, in the
2016 fourth quarter compared to the 2015 fourth quarter primarily
resulting from 2016 and 2015 sale and leaseback transactions with
Hospitality Properties Trust, or HPT.
Net loss attributable to common shareholders for the 2016 fourth
quarter was $6.5 million ($0.17 per common share) compared to $1.6
million ($0.04 per common share) for the 2015 fourth quarter. The
change in net loss attributable to common shareholders was
primarily due to increases in depreciation and amortization
expenses, and expenses related to financing and managing newly
acquired and developed locations (including real estate rent,
interest and selling, general and administrative expenses), a
decrease in fuel gross margin, and increased competition. These
decreases were partially offset by an increase in nonfuel gross
margin in excess of site level operating expenses generated by TA's
locations.
Adjusted EBITDA for the 2016 fourth quarter increased by $2.9
million, or 13.9%, as compared to the 2015 fourth quarter. Adjusted
EBITDA increased as a result of the increase in nonfuel gross
margin due to both same sites and newly acquired locations,
partially offset by increases in site level operating expenses due
to newly acquired locations and a decrease in fuel gross
margin.
Travel Centers Segment
Both fuel and nonfuel revenues increased, resulting in an
increase in total revenues of $30.6 million, or 2.6%, in the 2016
fourth quarter compared to the 2015 fourth quarter. The increase in
total revenues was primarily due to increases in fuel prices on a
same site basis, plus the addition of new locations opened during
2016.
Site level gross margin in excess of site level operating
expenses increased in the 2016 fourth quarter by $2.7 million, or
2.4%, as compared to the 2015 fourth quarter principally due to an
increase in nonfuel gross margin and a decrease in operating
expenses on a same site basis, partially offset by a decrease in
fuel gross margin.
Convenience Stores Segment
Both fuel and nonfuel revenues increased, resulting in an
increase in total revenues of $34.1 million, or 22.8%, in the 2016
fourth quarter compared to the 2015 fourth quarter. The increases
in both fuel and nonfuel revenues were due to locations acquired
since the beginning of the 2015 fourth quarter (49 locations).
Site level gross margin in excess of site level operating
expenses increased in the 2016 fourth quarter by $4.7 million, or
97.0%, as compared to the 2015 fourth quarter due to improvements
at same sites and the addition of locations acquired in 2015 and
2016.
Investment and Growth
Activities
From the beginning of 2011, when TA began its acquisition
program, to December 31, 2016, TA has invested $855.0 million
to develop, purchase and improve 318 travel centers, convenience
stores and standalone restaurants. For the year ended
December 31, 2016, these investments produced site level gross
margin in excess of site level operating expenses of $100.0
million, or, on a sequential basis, $8.3 million, or 9.0%, greater
than site level gross margin in excess of site level operating
expenses for the twelve months ended September 30, 2016.
TA believes that its investments require a period after they are
developed or acquired and upgrades are completed to reach their
expected stabilized financial results, generally three years for
travel centers and one year for convenience stores.
TA acquired or developed 39 travel centers during the 2011 to
2016 period. Of those, 36 are included in the "Travel Centers
Segment Same Site Operating Data" for the year ended
December 31, 2016 and 2015. As of December 31, 2016, TA has
invested $312.1 million (including improvements) in these 36
locations, and they generated $54.3 million of gross margin in
excess of site level operating expenses during the year ended
December 31, 2016. The remaining three locations were
developed by TA for a total investment of $64.9 million; and they
generated $3.5 million of gross margin in excess of site level
operating expenses during the year ended December 31, 2016;
however, TA has operated these locations for less than the full
year 2016 (one opened in each of January, March and May).
TA acquired 228 convenience stores during the 2013 to 2016
period. Of these, 31 are included in the "Convenience Store Segment
Same Site Operating Data" for the year ended December 31, 2016
and 2015. As of December 31, 2016, TA has invested $66.5 million
(including improvements) in these 31 locations, and they generated
$11.6 million of gross margin in excess of site level operating
expenses during the year ended December 31, 2016. The
remaining 197 locations were acquired by TA in 2015 or 2016 for a
total investment of $376.9 million (including improvements), and
these convenience stores generated $23.2 million of gross margin in
excess of site level operating expenses during the year ended
December 31, 2016. The 29 convenience stores TA acquired
during 2016 were operated by TA for an average of nine months
during 2016 and some of these were fully or partially out of
service while being renovated.
TA acquired one standalone restaurant during 2015 and 50 during
2016. As of December 31, 2016, TA has invested $34.7 million
(including improvements) in these 51 locations, and they generated
$7.3 million of gross margin in excess of site level operating
expenses during the year ended December 31, 2016.
TA's growth activities have also contributed to growth in its
selling, general and administrative expenses, which were $139.1
million for the year ended December 31, 2016, a $17.3 million,
or 14.2% increase over the amount for the year ended December 31,
2015. TA estimates that approximately $10.0 million of this
increase can be attributed to the increase in TA's number of sites,
including such items as marketing, advertising, regional management
personnel and centralized corporate function support costs.
Other Growth Initiatives
TA's business requires TA to deliver a myriad of goods and
services to multiple customer types from each of TA's locations.
TA's business, in particular the travel center segment, also
requires significant capital expenditures to remain
competitive.
In addition to the investments in new locations described above,
TA made capital expenditures of $253.7 million in its business in
2016, some of which were improvements of the type TA typically
sells to HPT for an increase in rent and some of which were not yet
complete as of December 31, 2016. TA believes that approximately
$79.9 million of this amount can be considered to be investments to
maintain its product quality and competitive position, while the
remainder, or $173.8 million, can be considered to be investments
designed to provide incremental returns to TA. These returns on
investments may not exceed the cost of capital invested on a short
term basis. TA does expect, however, that on a longer term basis,
and especially during periods of economic and industry expansion,
these investments may provide attractive returns.
TA is currently undertaking several internal growth initiatives
that TA believes have the potential to grow its profitability and
that are geared toward a combination of (a) developing and
deploying new products and services to be delivered to existing
customers and (b) delivering existing and new products and services
to new customers.
Conference Call:
On Tuesday, February 28, 2017, 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 and year ended
December 31, 2016. 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 412-317-0088. The replay pass code is
10099937.
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 fourth 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 LLC:
TA's nationwide business includes travel centers located in 43
U.S. states and in Canada, standalone convenience stores in 11
states and standalone restaurants in 15 states. TA's travel centers
operate under the "TravelCenters of America," "TA," "Petro Stopping
Centers" and "Petro" brand names and offer diesel and gasoline
fueling, restaurants, truck repair services, travel/convenience
stores and other services which are designed to provide attractive
and efficient travel experiences to professional drivers and other
motorists. TA's convenience stores operate principally under the
"Minit Mart" brand name and offer gasoline fueling as well as
nonfuel products and services such as coffee, groceries, some fresh
foods and other convenience items. TA's standalone restaurants
operate principally under the "Quaker Steak & Lube" brand
name.
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 AS A RESULT OF
VARIOUS FACTORS. AMONG OTHERS, THE FORWARD LOOKING STATEMENTS WHICH
APPEAR IN THIS PRESS RELEASE THAT MAY NOT OCCUR INCLUDE STATEMENTS
THAT:
- TA'S CEO, MR. O'BRIEN, STATES IN THIS
PRESS RELEASE THAT TA'S INTERNAL AND EXTERNAL GROWTH ACTIVITIES HAD
A FAVORABLE EFFECT ON TA'S RESULTS AND HIS CONFIDENCE IN THE
PROSPECT OF TA REALIZING THE EXPECTED RESULTS FROM TA'S INVESTMENTS
IN ITS ACQUISITION, IMPROVEMENT AND DEVELOPMENT OF NEW SITES AND
OTHER GROWTH INITIATIVES. THESE STATEMENTS MAY IMPLY THAT TA'S
GROWTH STRATEGIES WILL GENERATE INCREASED NET INCOME ATTRIBUTABLE
TO COMMON SHAREHOLDERS. HOWEVER, MANY OF THE LOCATIONS TA HAS
ACQUIRED OR MAY ACQUIRE PRODUCED OPERATING RESULTS THAT CAUSED THE
PRIOR OWNERS TO EXIT THE BUSINESSES AND TA'S ABILITY TO OPERATE
THESE LOCATIONS PROFITABLY DEPENDS UPON MANY FACTORS, SOME OF WHICH
ARE BEYOND TA'S CONTROL. FURTHER, TA'S BUSINESS INITIATIVES MAY
FAIL, OR NOT CONTRIBUTE SUFFICIENTLY TO TA'S RESULTS TO OVERCOME
INCREASING DIESEL ENGINE EFFICIENCY, CHANGES IN THE ECONOMY, THE
EFFECTS OF COMPETITION OR OTHER FACTORS. ACCORDINGLY, TA MAY NOT
GENERATE INCREASED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
OR IT MAY TAKE LONGER THAN TA EXPECTS FOR ITS NET INCOME
ATTRIBUTABLE TO COMMON SHAREHOLDERS TO INCREASE.
- THIS PRESS RELEASE NOTES THAT TA IS
CURRENTLY UNDERTAKING SEVERAL INTERNAL GROWTH INITIATIVES THAT TA
BELIEVES HAVE THE POTENTIAL TO GROW ITS PROFITABILITY AND THAT ARE
GEARED TOWARD INCREASING PRODUCTS AND SERVICES IT SELLS TO ITS
EXISTING AND PROSPECTIVE CUSTOMERS. TA MAY NOT REALIZE THE BENEFITS
IT EXPECTS FROM THESE INITIATIVES AND COSTS IT INCURS IN DESIGNING,
IMPLEMENTING AND EXECUTING THESE INITIATIVES MAY EXCEED ANY
BENEFITS IT MAY REALIZE FROM THEM.
THE INFORMATION CONTAINED IN TA'S PERIODIC REPORTS, INCLUDING
TA'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED
DECEMBER 31, 2016, WHICH HAS BEEN OR WILL BE FILED WITH THE
U.S. SECURITIES AND EXCHANGE COMMISSION, OR 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.
TRAVELCENTERS OF AMERICA LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share
amounts)
Three Months Ended December 31, 2016
2015 Revenues: Fuel $ 941,852 $ 896,049
Nonfuel 478,218 451,975 Rent and royalties from franchisees 4,217
3,032 Total revenues 1,424,287 1,351,056
Cost of goods sold (excluding depreciation):
Fuel 840,802 792,779 Nonfuel 221,865 211,366 Total
cost of goods sold 1,062,667 1,004,145
Operating expenses: Site level operating 233,653 228,513
Selling, general and administrative 37,265 34,329 Real estate rent
67,460 62,063 Depreciation and amortization 27,844 19,297
Total operating expenses 366,222 344,202
(Loss) income from operations (4,602 ) 2,709
Acquisition costs 165 1,752 Interest expense, net 7,054 6,084
Income from equity investees 972 900
Loss before
income taxes (10,849 ) (4,227 ) Benefit for income taxes (4,304
) (2,619 )
Net loss (6,545 ) (1,608 ) Less net loss for
noncontrolling interests (52 ) —
Net loss attributable to
common shareholders $ (6,493 ) $ (1,608 )
Net loss
per common share attributable to common shareholders: Basic and
diluted $ (0.17 ) $ (0.04 )
These financial statements should be read in conjunction with
TA's Annual Report on Form 10-K for the year ended
December 31, 2016, to be filed with the U.S. Securities and
Exchange Commission.
TRAVELCENTERS OF AMERICA LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share
amounts)
Year EndedDecember 31, 2016
2015 Revenues: Fuel $ 3,530,149 $ 4,055,448
Nonfuel 1,963,904 1,782,761 Rent and royalties from franchisees
17,352 12,424 Total revenues 5,511,405 5,850,633
Cost of goods sold (excluding depreciation): Fuel
3,125,372 3,640,954 Nonfuel 910,827 819,995 Total cost of
goods sold 4,036,199 4,460,949
Operating
expenses: Site level operating 959,407 885,646 Selling, general
and administrative 139,052 121,767 Real estate rent 262,298 231,591
Depreciation and amortization 92,389 72,383 Total operating
expenses 1,453,146 1,311,387
Income from
operations 22,060 78,297 Acquisition costs 2,451 5,048
Interest expense, net 27,815 22,545 Income from equity investees
4,544 4,056 Loss on extinguishment of debt — 10,502
(Loss) income before income taxes (3,662 ) 44,258 (Benefit)
provision for income taxes (1,733 ) 16,539
Net (loss) income
(1,929 ) 27,719 Less net income for noncontrolling interests 89
—
Net (loss) income attributable to common
shareholders $ (2,018 ) $ 27,719
Net (loss) income
per common share attributable to common shareholders: Basic and
diluted $ (0.05 ) $ 0.72
These financial statements should be read in conjunction with
TA's Annual Report on Form 10-K for the year ended
December 31, 2016, to be filed with the U.S. Securities and
Exchange Commission.
TRAVELCENTERS OF AMERICA LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
December 31, 2016 December 31,
2015 Assets Current assets: Cash and cash equivalents
$ 61,312 $ 172,087 Accounts receivable, net 107,246 91,580
Inventory 207,829 183,492 Other current assets 25,674 48,181
Total current assets 402,061 495,340 Property and equipment,
net 1,082,022 989,606 Goodwill 88,542 79,768 Other intangible
assets, net 37,738 26,209 Other noncurrent assets 49,478
30,618
Total assets $ 1,659,841 $ 1,621,541
Liabilities and Shareholders' Equity Current liabilities:
Accounts payable $ 157,964 $ 125,079 Current HPT Leases liabilities
39,720 37,030 Other current liabilities 132,648 133,513
Total current liabilities 330,332 295,622 Long term debt,
net 318,739 316,447 Noncurrent HPT Leases liabilities 381,854
385,498 Other noncurrent liabilities 75,837 74,655 Total
liabilities 1,106,762 1,072,222 Shareholders' equity (39,523
and 38,808 common shares outstanding at
December 31, 2016 and December 31, 2015,
respectively)
553,079 549,319
Total liabilities and shareholders'
equity $ 1,659,841 $ 1,621,541
These financial statements should be read in conjunction with
TA's Annual Report on Form 10-K for the year ended
December 31, 2016, to be filed with the U.S. Securities and
Exchange Commission.
TRAVELCENTERS OF AMERICA LLCRECONCILIATION OF
NON-GAAP FINANCIAL MEASURES(in thousands)
Non-GAAP financial measures are financial measures that are not
determined in accordance with GAAP. TA believes the non-GAAP
financial measures presented in the table below are meaningful
supplemental disclosures because they may help investors gain a
better understanding of changes in TA's operating results and its
ability to pay rent or service debt, make capital expenditures and
expand its business. These non-GAAP financial measures also may
help investors to make comparisons between TA and other companies
on both a GAAP and a non-GAAP basis. TA calculates Adjusted EBITDA
as earnings before interest, taxes, depreciation and amortization
and loss on extinguishment of debt, as shown below. TA believes
that Adjusted EBITDA is a meaningful disclosure that may help
investors to better understand its financial performance, including
by allowing investors to compare TA's performance between periods
and to the performance of other companies. Adjusted EBITDA is used
by management to evaluate TA's financial performance and compare
TA's performance over time and to the performance of its
competitors. This information should not be considered as an
alternative to net income or income from operations, as an
indicator of TA's operating performance or as a measure of TA's
liquidity. Also, Adjusted EBITDA as presented may not be comparable
to similarly titled amounts calculated by other companies.
TA believes that net (loss) income attributable to common
shareholders is the most comparable financial measure, determined
according to GAAP, to TA's presentation of Adjusted EBITDA. The
following table presents the reconciliation of this non-GAAP
financial measure to net (loss) income attributable to common
shareholders for the three months and year ended December 31,
2016 and 2015.
Three Months Ended December
31, Year EndedDecember 31, 2016
2015 2016 2015
Calculation of Adjusted EBITDA: Net (loss) income attributable to
common shareholders $ (6,493 ) $ (1,608 ) $ (2,018 ) $ 27,719 Add:
(benefit) provision for income taxes (4,304 ) (2,619 ) (1,733 )
16,539 Add: depreciation and amortization 27,844 19,297 92,389
72,383 Add: interest expense, net 7,054 6,084 27,815 22,545 Add:
loss on extinguishment of debt — — — 10,502
Adjusted EBITDA $ 24,101 $ 21,154 $ 116,453 $
149,688
TRAVELCENTERS OF AMERICA LLCSUPPLEMENTAL SAME
SITE OPERATING DATA(in thousands, except for number of locations,
percentage amounts and fuel gross margin per gallon)
CONSOLIDATED SAME SITE OPERATING
DATA
The following table presents consolidated operating data for the
periods noted for all of the locations in operation on
December 31, 2016, that were operated by TA continuously since
the beginning of the earliest period presented, with the exception
of five locations TA operates that are owned by an unconsolidated
joint venture in which TA owns a noncontrolling interest. This data
excludes revenues and expenses that were not generated at locations
TA operates, such as rents and royalties from franchisees and
corporate level selling, general and administrative expenses. TA
does not exclude locations from the same site comparisons as a
result of capital improvements to the site or changes in the
services offered.
Three
Months Ended December 31, Year EndedDecember
31, 2016 2015 Change
2016 2015 Change Number of same
site company
operated locations
401 401 — 249 249 — Diesel sales volume (gallons) 391,259
415,681 (5.9 ) % 1,608,676 1,695,051 (5.1 ) % Gasoline sales volume
(gallons) 118,394 115,014 2.9 % 315,896
314,294 0.5 % Total fuel sales volume (gallons) 509,653
530,695 (4.0 ) % 1,924,572 2,009,345
(4.2 ) % Fuel revenues $ 895,923 $ 872,995 2.6 % $ 3,061,682
$ 3,827,635 (20.0 ) % Fuel gross margin 97,657 102,659 (4.9 ) %
355,937 395,362 (10.0 ) % Fuel gross margin per gallon $ 0.192 $
0.193 (0.5 ) % $ 0.185 $ 0.197 (6.1 ) % Nonfuel revenues $
448,324 $ 447,270 0.2 % $ 1,697,635 $ 1,698,640 (0.1 ) % Nonfuel
gross margin 242,876 238,831 1.7 % 957,573 937,642 2.1 % Nonfuel
gross margin percentage 54.2 % 53.4 % 80 pts 56.4 % 55.2 % 120 pts
Total gross margin $ 340,533 $ 341,490 (0.3 ) % $ 1,313,510
$ 1,333,004 (1.5 ) % Site level operating expenses 223,403 227,455
(1.8 ) % 850,386 850,043 — % Site level operating expenses as a
percentage of nonfuel revenues
49.8 % 50.9 % (110 )pts 50.1 % 50.0 % 10 pts Site level gross
margin in excess of
site level operating expenses
$ 117,130 $ 114,035 2.7 % $ 463,124 $ 482,961 (4.1 ) %
TRAVELCENTERS OF AMERICA LLCSUPPLEMENTAL SAME
SITE OPERATING DATA(in thousands, except for number of locations,
percentage amounts and fuel gross margin per gallon)
TRAVEL CENTERS SEGMENT SAME SITE OPERATING
DATA
The following table presents operating data for the periods
noted for all of the travel centers in operation
on December 31, 2016, that were operated by TA
continuously since the beginning of the earliest period presented,
with the exception of two travel centers TA operates that
are owned by an unconsolidated joint venture in which TA owns a
noncontrolling interest. This data also excludes revenues and
expenses that were not generated at travel centers TA operates,
such as rents and royalties from franchisees and corporate level
selling, general and administrative expenses. TA does not exclude
locations from the same site comparisons as a result of capital
improvements to the site or changes in the services offered.
Three
Months Ended December 31, Year EndedDecember
31, Travel Centers 2016 2015
Change 2016 2015 Change
Number of same site company
operated travel center locations
220 220 — 217 217 — Diesel sales volume (gallons) 387,226
412,177 (6.1 ) % 1,605,279 1,691,991 (5.1 ) % Gasoline sales volume
(gallons) 69,674 66,467 4.8 % 278,235 275,664
0.9 % Total fuel sales volume (gallons) 456,900
478,644 (4.5 ) % 1,883,514 1,967,655 (4.3 ) %
Fuel revenues $ 804,678 $ 786,036 2.4 % $ 2,994,344 $
3,749,929 (20.1 ) % Fuel gross margin 86,735 91,644 (5.4 ) %
346,836 386,412 (10.2 ) % Fuel gross margin per gallon $ 0.190 $
0.191 (0.5 ) % $ 0.184 $ 0.196 (6.1 ) % Nonfuel revenues $
390,381 $ 391,241 (0.2 ) % $ 1,617,598 $ 1,618,983 (0.1 ) % Nonfuel
gross margin 224,772 222,890 0.8 % 931,315 911,677 2.2 % Nonfuel
gross margin percentage 57.6 % 57.0 % 60 pts 57.6 % 56.3 % 130 pts
Total gross margin $ 311,507 $ 314,534 (1.0 ) % $ 1,278,151
$ 1,298,089 (1.5 ) % Site level operating expenses 202,121 205,370
(1.6 ) % 828,390 827,603 0.1 % Site level operating expenses as a
percentage of nonfuel revenues
51.8 % 52.5 % (70 )pts 51.2 % 51.1 % 10 pts Site level gross margin
in excess of
site level operating expenses
$ 109,386 $ 109,164 0.2 % $ 449,761 $ 470,486 (4.4 ) %
TRAVELCENTERS OF AMERICA LLCSUPPLEMENTAL SAME
SITE OPERATING DATA(in thousands, except for number of locations,
percentage amounts and fuel gross margin per gallon)
CONVENIENCE STORES SEGMENT SAME SITE
OPERATING DATA
The following table presents operating data for the periods
noted for all of the convenience stores in operation on
December 31, 2016, that were operated by TA continuously since
the beginning of the earliest period presented, with the exception
of three convenience stores TA operates that are owned by
an unconsolidated joint venture in which TA owns a noncontrolling
interest. This data also excludes revenues and expenses that were
not generated at convenience stores TA operates, such as revenues
from a dealer operated convenience store and corporate level
selling, general and administrative expenses. TA does not exclude
locations from the same site comparisons as a result of capital
improvements to the site or changes in the services offered.
Three
Months Ended December 31, Year EndedDecember
31, Convenience Stores 2016
2015 Change 2016 2015
Change Number of same site company
operated convenience store
locations
181 181 — 32 32 — Fuel sales volume (gallons) 52,753 52,051
1.3 % 41,058 41,690 (1.5 ) % Fuel revenues $ 91,245 $ 86,959 4.9 %
$ 67,338 $ 77,706 (13.3 ) % Fuel gross margin 10,922 11,015 (0.8 )
% 9,101 8,950 1.7 % Fuel gross margin per gallon $ 0.207 $ 0.212
(2.4 ) % $ 0.222 $ 0.215 3.3 % Nonfuel revenues $ 57,943 $
56,029 3.4 % $ 80,037 $ 79,657 0.5 % Nonfuel gross margin 18,104
15,941 13.6 % 26,258 25,965 1.1 % Nonfuel gross margin percentage
31.2 % 28.5 % 270 pts 32.8 % 32.6 % 20 pts Total gross
margin $ 29,026 $ 26,956 7.7 % $ 35,359 $ 34,915 1.3 % Site level
operating expenses 21,282 22,085 (3.6 ) % 21,996 22,440 (2.0 ) %
Site level operating expenses as a
percentage of nonfuel revenues
36.7 % 39.4 % (270 )pts 27.5 % 28.2 % (70 )pts Site level gross
margin in excess of
site level operating expenses
$ 7,744 $ 4,871 59.0 % $ 13,363 $ 12,475 7.1 %
TRAVELCENTERS OF AMERICA LLCBUSINESS SEGMENT
INFORMATION (UNAUDITED)(in thousands)
The following tables present business segment information for
travel centers and convenience stores, or TA's reportable segments,
for the three months ended and year ended December 31, 2016
and 2015.
Three Months Ended December 31, 2016
TravelCenters
ConvenienceStores
Corporateand Other Consolidated
Revenues: Fuel $ 813,899 $ 109,548 $ 18,405 $ 941,852
Nonfuel 395,878 74,290 8,050 478,218 Rent and royalties from
franchisees 3,072 57 1,088 4,217 Total
revenues 1,212,849 183,895 27,543 1,424,287
Site level gross margin in excess of
site level operating expenses
$ 115,267 $ 9,472 $ 3,228 $ 127,967
Corporate operating expenses: Selling, general and
administrative $ 37,265 $ 37,265 Real estate rent 67,460 67,460
Depreciation and amortization 27,844 27,844
Loss
from operations (4,602 ) Acquisition costs 165 165
Interest expense, net 7,054 7,054 Income from equity investees 972
972
Loss before income taxes (10,849 ) Benefit
for income taxes (4,304 ) (4,304 )
Net loss (6,545 ) Less
net loss for noncontrolling interests (52 )
Net loss
attributable to common shareholders $ (6,493 )
Supplemental data:
Gross margin
Fuel $ 87,915 $
12,995 $ 140 $ 101,050 Nonfuel 228,601 22,326 5,426 256,353 Rent
and royalties from franchisees 3,072 57 1,088
4,217 Total gross margin $ 319,588 $ 35,378 $ 6,654
$ 361,620 Site level operating expenses $ 204,321
$ 25,906 $ 3,426 $ 233,653
TRAVELCENTERS OF AMERICA LLC
BUSINESS SEGMENT INFORMATION
(UNAUDITED)
(in thousands)
Three Months Ended December 31, 2015
TravelCenters
ConvenienceStores
Corporateand Other Consolidated
Revenues Fuel $ 787,008 $ 90,293 $ 18,748 $ 896,049 Nonfuel
392,179 59,519 277 451,975 Rent and royalties from franchisees
3,032 — — 3,032 Total revenues
1,182,219 149,812 19,025 1,351,056
Site level gross margin in excess of
site level operating expenses
$ 112,555 $ 4,809 $ 1,034 $ 118,398
Corporate operating expenses Selling, general and
administrative $ 34,329 $ 34,329 Real estate rent 62,063 62,063
Depreciation and amortization 19,297 19,297
Income
from operations 2,709 Acquisition costs 1,752 1,752
Interest expense, net 6,084 6,084 Income from equity investees 900
900
Loss before income taxes (4,227 ) Benefit
for income taxes (2,619 ) (2,619 )
Net loss (1,608 ) Less
net income for noncontrolling interests —
Net loss
attributable to common shareholders $ (1,608 )
Supplemental data:
Gross margin
Fuel $ 91,790 $
11,439 $ 41 $ 103,270 Nonfuel 223,582 16,817 210 240,609 Rent and
royalties from franchisees 3,032 — — 3,032
Total gross margin $ 318,404 $ 28,256 $ 251 $
346,911 Site level operating expenses $ 205,849 $
23,447 $ (783 ) $ 228,513
TRAVELCENTERS OF AMERICA LLC
BUSINESS SEGMENT INFORMATION
(UNAUDITED)
(in thousands)
Year Ended December 31, 2016
TravelCenters
ConvenienceStores
Corporateand Other
Consolidated Revenues Fuel $ 3,036,861
$ 420,747 $ 72,541 $ 3,530,149 Nonfuel 1,644,411 294,852 24,641
1,963,904 Rent and royalties from franchisees 13,628 306
3,418 17,352 Total revenues 4,694,900
715,905 100,600 5,511,405
Site level
gross margin in excess of
site level operating expenses
$ 468,912 $ 36,660 $ 10,227 $ 515,799
Corporate operating expenses Selling, general and
administrative $ 139,052 $ 139,052 Real estate rent 262,298 262,298
Depreciation and amortization 92,389 92,389
Income
from operations 22,060 Acquisition costs 2,451 2,451
Interest expense, net 27,815 27,815 Income from equity investees
4,544 4,544
Loss before income taxes (3,662 )
Benefit for income taxes (1,733 ) (1,733 )
Net loss (1,929 )
Less net income for noncontrolling interests 89
Net loss
attributable to common shareholders $ (2,018 )
Supplemental data:
Gross margin
Fuel $ 352,361 $ 51,900 $ 516 $
404,777 Nonfuel 946,308 90,047 16,722 1,053,077 Rent and royalties
from franchisees 13,628 306 3,418 17,352 Total
gross margin $ 1,312,297 $ 142,253 $ 20,656 $
1,475,206 Site level operating expenses $ 843,385 $
105,593 $ 10,429 $ 959,407
TRAVELCENTERS OF AMERICA LLC
BUSINESS SEGMENT INFORMATION
(UNAUDITED)
(in thousands)
Year Ended December 31, 2015
TravelCenters
ConvenienceStores
Corporateand Other
Consolidated Revenues Fuel $ 3,763,536
$ 224,894 $ 67,018 $ 4,055,448 Nonfuel 1,626,646 155,197 918
1,782,761 Rent and royalties from franchisees 12,424 —
— 12,424 Total revenues 5,402,606 380,091
67,936 5,850,633
Site level gross margin in
excess of
site level operating expenses
$ 483,564 $ 17,259 $ 3,215 $ 504,038
Corporate operating expenses Selling, general and
administrative $ 121,767 $ 121,767 Real estate rent 231,591 231,591
Depreciation and amortization 72,383
72,383
Income from operations 78,297 Acquisition costs 5,048
5,048 Interest expense, net 22,545 22,545 Income from equity
investees 4,056 4,056 Loss on extinguishment of debt 10,502
10,502
Income before income taxes 44,258 Provision for
income taxes 16,539 16,539
Net income 27,719 Less net
income for noncontrolling interests —
Net income attributable to
common shareholders $ 27,719
Supplemental data:
Gross margin
Fuel $ 388,502 $ 26,060 $ (68 ) $
414,494 Nonfuel 915,794 46,314 658 962,766 Rent and royalties from
franchisees 12,424 — — 12,424 Total gross
margin $ 1,316,720 $ 72,374 $ 590 $ 1,389,684
Site level operating expenses $ 833,156 $ 55,115
$ (2,625 ) $ 885,646
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170228005487/en/
TravelCenters of America LLCKatie Strohacker, 617-796-8251Senior
Director of Investor Relationswww.ta-petro.com
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