FOR IMMEDIATE RELEASE
Kristin Brown, Director of Investor Relations
TravelCenters of America Inc. Announces First Quarter 2020 Financial Results
Fuel Sales Volume Increased 3.6% for the 2020 First Quarter
Fuel Gross Margin Increased 9.6% for the 2020 First Quarter
Westlake, OH (May 5, 2020): TravelCenters of America Inc. (Nasdaq: TA) today announced financial results for the three months ended March 31, 2020.
Jonathan M. Pertchik, TA's CEO, made the following statement regarding the 2020 first quarter results:
"We navigated through a challenging first quarter, the latter part of which was heavily impacted by the COVID-19 pandemic. Our fuel sales volume during the first quarter increased 3.6%, which was driven entirely by diesel fuel sales volume. Our gasoline sales volume, after being up most of the first quarter, declined significantly beginning mid-March as consumers responded to the COVID-19 pandemic. Despite the decrease in gasoline sales volume, total fuel gross margin was strong in March as both diesel fuel and gasoline costs declined as a result of reduced demand, which resulted in a 9.6% increase in our fuel gross margin for the 2020 first quarter.
"The strong fuel gross margin was more than offset by a decline in our nonfuel gross margin primarily due to the government-mandated stay at home orders and temporary closures of certain full service restaurants that were issued in mid-March, which affected the traffic at locations we operate. In addition to dealing with the effects of the COVID-19 pandemic, the results from our truck service and stores were largely impacted by unseasonably mild weather experienced in the 2020 first quarter as compared to extreme cold weather in the 2019 first quarter.
"On April 30, 2020, TA commenced a company-wide reorganization, which includes an approximately 130 position reduction in force, numerous leadership changes, the creation of both a corporate development and also a procurement group, which we expect to result in approximately $13.1 million of net annual savings in selling, general and administrative expense, and the planning for a wide array and long list of initiatives to improve overall company performance, by addressing both top line and bottom line challenges and opportunities."
The following table summarizes TA's financial results for the 2020 and 2019 first quarters.
|(in thousands, except per share amounts)||Three Months Ended|
|Net loss || ||$||(18,541)|| ||$||(12,729)|| |
|Net loss attributable to common stockholders||(18,561)|| ||(12,747)|| |
Net loss per share of common stock attributable to common
stockholders (basic and diluted)(1)
|$||(2.23)|| ||$||(1.58)|| |
(1) Net loss per share of common stock attributable to common stockholders for the 2019 first quarter has been retrospectively adjusted to reflect the reverse stock split of TA's outstanding shares of common stock effective August 1, 2019.
The following information was filed by Travelcenters Of America Llc (TA) on Tuesday, May 5, 2020 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.