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TravelCenters of America Inc. saw net income and revenue climb in the third quarter amid strength in nearly all business lines.
“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,” CEO Jonathan Pertchik said in a release.
The company for the period ended Sept. 30 reported net income of $22.2 million, or $1.52 per diluted share, compared with $8.6 million, 61 cents, in the 2020 period.
Revenue climbed to $1.9 billion compared with $1.2 billion a year earlier.
Revenue from fuel spiked to $1.4 billion compared with $792 million a year earlier.
TA sold 585,848 gallons of fuel in the quarter, of which 513,827 were diesel, according to the Westlake, Ohio-based company. A year earlier, it sold a total of 555,102 gallons.
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Its fuel gross margin per gallon was 18.1 cents compared with 14.4 cents a year earlier.
Nonfuel revenue totaled $511 million, a gain of 7.8% compared with the 2020 period — within that segment revenue from truck service reached $200 million, up 5.6% compared with a year earlier.
“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 50th anniversary year,” Pertchik added.
The company said its transformation plan consists 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.”
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, it reported, 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.
TA is the nation’s largest publicly traded full-service travel center network. Founded in 1972, it noted it has 18,000 team members serving guests in more than 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.
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