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TravelCenters of America Inc. reported fourth-quarter net income soared and revenue nearly doubled.
Net income for the quarter ended Dec. 31 jumped to $12.7 million, or 87 cents per diluted share, compared with a net loss of $7.1 million, negative 42 cents, a year earlier.
Revenue reached $2 billion compared with $1.2 billion in the 2020 period, driven by fuel sales that climbed to $1.5 billion compared with $840 million a year earlier. Nonfuel revenue increased to $485.9 million compared with $442.7 million in the 2020 period.
“During the fourth quarter, the quality and resilience of TA’s business model has demonstrated yet again our ability to achieve improved profitability across nearly all business lines, resulting in a 278% increase in net income and a 48% increase in adjusted earnings before interest, taxes, depreciation and amortization as compared with the prior-year period,” Jonathan Pertchik, TA’s CEO, said in a release. “Additionally, our focus on operational improvements, as well as pricing and labor efficiency, further supported achieving these results despite ongoing COVID-related labor and supply chain challenges and inflationary cost pressures.”
The Westlake, Ohio-based company reported it is increasing its biodiesel blending capabilities, as well as expanding its ability to offer DEF at the pump. It is preparing to offer hydrogen fuel for sale at one of its sites and continues to actively explore other opportunities, such as electric vehicle charging for medium- and heavy-duty trucks.
Last April, Nikola Corp. and TCA agreed to collaborate on the installation of hydrogen fueling stations for heavy-duty trucks at two existing TA-Petro sites.
The company also intends to expand investments of capital and human resources in its truck service business, particularly its TA Truck Service Emergency Roadside Assistance, TA Truck Service Mobile Maintenance and Commercial Tire Network programs.
TA Truck Service Emergency Roadside Assistance operates 24 hours per day, seven days per week. As of Dec. 31, this program included a fleet of approximately 600 heavy-duty emergency vehicles equipped with GPS technology at the company’s travel centers and other sites and third-party roadside service providers in 49 U.S. states and 10 Canadian provinces — or about 14,000 locations.
For the full year, net income was $58.1 million, $4.01, compared with a net loss of $14.9 million, negative $1.23, compared with a year earlier.
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Revenue was $7.3 billion compared with $4.8 billion compared with the 2020 period.
In its quarterly filing, the company said U.S. economic conditions have improved significantly from the low points experienced during the pandemic. It cited government spending on pandemic relief, infrastructure and other factors as those that may have helped increase its 2021 diesel fuel sales volume by 10.6% and total nonfuel revenues by 11.4% compared with the prior year.
The company is the nation’s largest publicly traded full-service travel center network, TA noted. Founded in 1972, 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.