FOR IMMEDIATE RELEASE
Kristin Brown, Director of Investor Relations
TravelCenters of America Inc. Announces Third Quarter 2019 Financial Results
Third Quarter Income From Continuing Operations Increased 17.8%;
Fuel Sales Volume Increased 4.3%;
TA Enters IHOP Agreement to Rebrand 94 Restaurants to IHOP Brand
Westlake, OH (November 5, 2019): TravelCenters of America Inc. (Nasdaq: TA) today announced financial results for the three and nine months ended September 30, 2019.
Andrew J. Rebholz, TA's CEO, made the following statement regarding the 2019 third quarter results:
"Our third quarter operating results reflect continued growth in our business. As compared to the prior year quarter, we posted increases in both total and same site fuel sales volume, both total and same site nonfuel revenues, income from continuing operations and net income (loss), and we also increased our EBITDA. The growth in site level operating expense was largely in line with, and due to, our increased level of nonfuel sales other than for certain increases in maintenance, insurance and property tax expenses. Our selling, general and administrative expense for the 2019 third quarter was largely flat sequentially. We believe our strategy is working, although freight market headwinds somewhat tempered the growth in our business.
"Net income for the third quarter of $1.9 million was a $72.4 million improvement over the prior year third quarter, which included a $72.1 million loss from discontinued operations, net of taxes; discontinued operations aside, we increased income from continuing operations by 17.8% and EBITDA by 1.7% over the prior year third quarter.
"We continued to expand our travel center network during the third quarter, signing franchise agreements for three additional travel centers, bringing the total for 2019 to 10, of which three have started operations under our brands thus far. We have a number of additional potential franchise locations in the pipeline and expect to acquire one operating travel center business and one development parcel of land in the next few months.
"Also, I am pleased to note that we continue to accelerate our restaurant rebranding program pursuant to the franchise development agreement we recently entered with IHOP to rebrand and convert up to 94 of the restaurants at our travel centers to IHOP over the next five years. I believe the introduction of this brand to our travel centers will earn a 20% return on our investment, due in part to increased gasoline sales volume and additional store sales from the anticipated increase in customers visiting our sites.
"The strategy we adopted in May 2018 to refocus our efforts on our core travel center operations, to grow that business and reduce our financial leverage has been successful to date and we expect to continue to pursue this strategy."
The following information was filed by Travelcenters Of America Llc (TA) on Tuesday, November 5, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.