TravelCenters Profit Falls on Lower Margins, Debt Costs
TravelCenters of America’s second-quarter net income fell 72% to $3.77 million, or 10 cents per share, due to lower profits from fuel sales and one-time costs such as debt repayment.
In last year’s second quarter, net income was $13.6 million, or 36 cents.
Fuel sales rose 3.4% to 534.8 million gallons, but fuel sales profit margin fell by 3% to $96.3 million.
Revenue declined 24% to $1.58 billion from $2.08 billion because of a $533.1 million drop in fuel revenue as diesel prices declined.
Margins rose on nonfuel sales by more than 10%.
Debt repayment costs were $10.5 million for the quarter.
The company, which is based in Westlake, Ohio, also announced that its expansion program is continuing with the purchase during the quarter of 45 convenience stores and two travel centers, with the acquisition of an additional 121 convenience stores under discussion.
