TravelCenters of America reported higher third-quarter revenue and a net loss tied to the sale of its convenience store business.
For the period ended Sept. 30, the company posted a net loss of $70.5 million, or $1.77 per share, compared with a net profit of $62.2 million, or $1.58 a share a year earlier.
“The estimated loss we recognized in connection with our decision to sell the stand-alone convenience stores was the primary driver of our net loss for the quarter,” Andrew Rebholz, CEO of TA, said in a statement. The company intends “to spend more time managing our core travel centers business, thoughtfully pursuing our growth programs and addressing the company’s leverage,” he added.
The carrying value of the convenience stores business exceeded the agreed purchase price less costs to sell, resulting in a loss on disposal of $78.7 million that includes transaction costs of $9 million as of Sept. 30, TA reported.
The sale of the convenience stores is expected to be completed before the end of the year.
At the same time, adjusted earnings before interest, taxes, depreciation and amortization exceeded the prior-year quarter — $31.3 million compared with $30.6 million.
TA operates under the Petro Stopping Centers brand in some areas. (TT file photo)
Revenue climbed to $1.65 billion compared with $1.37 billion in the 2017 period.
Fuel revenues increased by $264.5 million, or 29.1%, in the 2018 third quarter compared with the 2017 third quarter, primarily due to higher market prices for fuel during the most recent quarter.
Its fuel gross margin increased by $7.5 million, or 10.7%, as a result of the increase in fuel sales volumes and a more favorable purchasing environment in the 2018 quarter.
“I believe expanding the geographic footprint of our travel center brands will enable TA to remain a preferred provider that can grow its customer base by fulfilling the needs of both traditional and nontraditional customers,” Rebholz said.
TA operates 259 travel centers in 43 states, primarily along the U.S. interstate highway system, and the province of Ontario, principally under the TA and Petro Stopping Centers brands. The sites offer services including diesel and gasoline fueling, restaurants and truck repair.