FOR IMMEDIATE RELEASE
Kristin Brown, Director of Investor Relations
TravelCenters of America Inc. Announces Second Quarter 2020 Financial Results
Fuel Gross Margin Increased 19.6% and Adjusted Fuel Gross Margin Increased 9.6% for the 2020 Second Quarter
Net Income Increased 78.3%, Adjusted EBITDA Increased 22.1% and Adjusted EBITDAR Increased 6.5% for the 2020 Second Quarter
Net Income Per Share of Common Stock Attributable to Common Stockholders of $0.26 and Adjusted Net Income Per Share of Common Stock Attributable to Common Stockholders of $0.59 for the 2020 Second Quarter
Westlake, OH (August 5, 2020): TravelCenters of America Inc. (Nasdaq: TA) today announced financial results for the three and six months ended June 30, 2020.
Jonathan M. Pertchik, TA's CEO, made the following statement regarding the 2020 second quarter results:
"Despite the challenges presented by a global pandemic and a corresponding shutdown of major portions of the U.S. economy for a large part of the 2020 second quarter, our newly constituted senior leadership team, together with our broader organization, generated increases of 78.3% in net income, 22.1% in adjusted EBITDA and 6.5% in adjusted EBITDAR over the prior year second quarter. Although nonfuel revenues decreased 14.8% during the second quarter, adjusted EBITDAR margin increased to 20.7% as compared to 17.2% last year. The improved year-over-year performance was a consequence of improved discipline in managing expenses, prompt furloughing of employees in response to reduced business as a result of COVID-19 and business management improvements. In addition, fuel gross margin increased by 19.6% and adjusted fuel gross margin increased by 9.6% versus prior year, driven by a favorable fuel purchasing environment, changes to our approach to pricing and the federal biodiesel blenders' tax credit.
"On a strategic front, in early July, we raised approximately $80.1 million of net proceeds in an equity offering intended primarily to fund deferred maintenance and other capital expenditures necessary to update property conditions and implement growth initiatives, as well as for working capital and for general corporate purposes. With this capital raise complete, our management team in place and our plan to transform the business in hand, we can focus our collective energy on executing through operational initiatives to improve TA’s performance and create long term value for our stockholders."
The following table summarizes TA's financial results for the 2020 and 2019 second quarters.
|(in thousands, except per share amounts)||Three Months Ended|
|Net income||$||2,156 || ||$||1,209 || |
|Net income attributable to common stockholders||2,124 || ||1,178 || |
Net income per share of common stock attributable to common stockholders
(basic and diluted)
|$||0.26 || ||$||0.15 || |
The following information was filed by Travelcenters Of America Llc (TA) on Wednesday, August 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.