Attached files
file | filename |
---|---|
8-K - 8-K - TravelCenters of America Inc. /MD/ | a13-13973_38k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
|
Contacts: |
|
Timothy A. Bonang, Vice President of Investor Relations, or |
|
Carlynn Finn, Senior Manager of Investor Relations |
|
(617) 796-8251 |
|
www.tatravelcenters.com |
TravelCenters of America LLC Announces Second Quarter 2013 Results
Westlake, OH (Aug 6, 2013): TravelCenters of America LLC (NYSE: TA) today announced financial results for the three and six months ended June 30, 2013.
At June 30, 2013, TAs business included 247 locations in 42 U.S. states and in Canada operating under the TravelCenters of America, TA, Petro Stopping Centers, or Petro travel center brand names and other brand names. TAs results were:
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
|
|
(in thousands, except per share amounts) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Revenues |
|
$ |
2,018,754 |
|
$ |
2,041,507 |
|
$ |
3,976,105 |
|
$ |
4,036,376 |
|
Net income |
|
$ |
15,984 |
|
$ |
29,852 |
|
$ |
3,845 |
|
$ |
15,667 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net income per share: |
|
|
|
|
|
|
|
|
| ||||
Basic and diluted |
|
$ |
0.54 |
|
$ |
1.04 |
|
$ |
0.13 |
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
| ||||
Supplemental Data: |
|
|
|
|
|
|
|
|
| ||||
Retail fuel sales volume (excluding wholesale) gallons |
|
515,337 |
|
505,729 |
|
1,005,148 |
|
995,517 |
| ||||
Total fuel revenues |
|
$ |
1,635,400 |
|
$ |
1,689,007 |
|
$ |
3,260,507 |
|
$ |
3,372,200 |
|
Fuel gross margin |
|
$ |
89,812 |
|
$ |
96,137 |
|
$ |
166,740 |
|
$ |
164,583 |
|
|
|
|
|
|
|
|
|
|
| ||||
Total nonfuel sales |
|
$ |
380,041 |
|
$ |
348,743 |
|
$ |
709,235 |
|
$ |
656,897 |
|
Nonfuel gross margin |
|
$ |
208,103 |
|
$ |
194,329 |
|
$ |
391,932 |
|
$ |
365,713 |
|
Nonfuel gross margin percentage |
|
54.8 |
% |
55.7 |
% |
55.3 |
% |
55.7 |
% | ||||
|
|
|
|
|
|
|
|
|
| ||||
EBITDAR(1) |
|
$ |
86,618 |
|
$ |
94,115 |
|
$ |
143,586 |
|
$ |
143,821 |
|
(1) A reconciliation that shows the calculation of earnings before interest, taxes, depreciation, amortization and rent, or EBITDAR, from net income determined in accordance with U.S. generally accepted accounting principles, or GAAP, appears in the supplemental data below.
Business Commentary
TAs EBITDAR for the second quarter of 2013 decreased by approximately $7.5 million, or 8.0%, to $86.6 million, versus EBITDAR for the 2012 second quarter of $94.1 million. The decline is largely attributable to a decline in fuel gross margin per gallon, which averaged $0.17 during the 2013 second quarter versus $0.19 during the 2012 second quarter. The impact of the decline in margin per gallon was only partially offset by a 1.9% increase in fuel sales volume, nonfuel activities and EBITDAR attributable to new sites.
Net income for the second quarter of 2013 decreased approximately $13.9 million, or 46.5%, to $16.0 million ($0.54 per share), versus net income for the 2012 second quarter of $29.9 million ($1.04 per share). The decline is largely attributable to the decline in EBITDAR noted above and increases in depreciation and amortization and the cost of financing attributable largely to the capital projects and acquisitions made by TA during 2012 and 2013; the operations at many of the 20 sites acquired during those periods have not yet reached fully-stabilized levels currently expected by TA.
Thomas M. OBrien, TAs CEO, made the following statement regarding the 2013 second quarter results:
The 2013 second quarter results are reflective of softer industry conditions than experienced in the 2012 second quarter. Despite that softness, I remain excited about the future opportunities I expect our leadership position in our industry and our capital investments will provide.
Investment Activity
During the six months ended June 30, 2013, TA purchased six locations (two of which were previously franchisee operated locations) for an aggregate of $27.9 million and made capital investments of $84.7 million, including $21.9 million to improve locations TA purchased during 2011 through 2013.
Capital Activity
On January 15, 2013, TA sold $110 million of 8.25% Senior Notes due 2028 in a public offering for net proceeds of approximately $105.1 million. During the 2013 first half, TA sold to Hospitality Properties Trust, or HPT, $45.2 million of improvements to sites leased from HPT for increased rent, pursuant to the terms of the lease agreements.
Supplemental Data
In addition to the historical financial results prepared in accordance with GAAP, TA furnishes supplemental data that it believes may help investors better understand TAs business. Included in this supplemental data is same site operating data for the locations that were operated by TA continuously since the beginning of the earliest applicable period presented. A presentation of EBITDAR, and a reconciliation that shows the calculation of EBITDAR from net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, also appears in the supplemental data.
Conference Call:
Later today, at 10:00 a.m. Eastern Time, TA will host a conference call to discuss its financial results and other activities for the three months ended June 30, 2013. Following managements remarks, there will be a question and answer period.
The conference call telephone number is (877) 260-8898. Participants calling from outside the United States and Canada should dial (612) 332-0718. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available for about a week after the call. To hear the replay, dial (320) 365-3844. The replay pass code is 296759.
A live audio webcast of the conference call will also be available in a listen only mode on our web site at www.tatravelcenters.com. To access the webcast, participants should visit our web site about five minutes before the call. The archived webcast will be available for replay on our web site for about one week after the call. The transcription, recording and retransmission in any way of TAs second quarter conference call is strictly prohibited without the prior written consent of TA. The Companys website is not incorporated as part of this press release.
About TravelCenters of America LLC:
TA primarily operates and franchises travel centers under the TravelCenters of America, TA, Petro Stopping Centers and Petro brand names and offers diesel and gasoline fueling, restaurants, truck repair facilities, stores and other services. TAs nationwide business includes locations in 42 U.S. states and in Canada.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER TA USES WORDS SUCH AS BELIEVE, EXPECT, ANTICIPATE, INTEND, PLAN, ESTIMATE OR SIMILAR EXPRESSIONS, TA IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON TAS PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. AMONG OTHERS, THE FORWARD LOOKING STATEMENTS WHICH APPEAR IN THIS PRESS RELEASE THAT MAY NOT OCCUR INCLUDE:
· THIS PRESS RELEASE STATES THAT THE OPERATIONS AT MANY OF TAS RECENTLY ACQUIRED SITES HAVE NOT YET REACHED FULLY-STABILIZED LEVELS CURRENTLY EXPECTED BY TA. THE IMPLICATIONS OF THIS STATEMENT ARE THAT OPERATIONS AT RECENTLY ACQUIRED SITES WILL IMPROVE TO A LEVEL THAT WILL RESULT IN INCREASES IN EBITDAR AND NET INCOME IN THE FUTURE. IN FACT, THERE ARE MANY FACTORS WHICH WILL IMPACT TA S FUTURE OPERATIONS THAT MAY CAUSE TA TO OPERATE LESS PROFITABLY OR UNPROFITABLY IN ANNUAL AND/OR QUARTERLY PERIODS IN ADDITION TO THOSE STATED ITEMS, INCLUDING SOME FACTORS WHICH ARE BEYOND TAS CONTROL SUCH AS SEASONALITY, THE CONDITION OF THE U.S. ECONOMY GENERALLY, THE FUTURE DEMAND FOR TAS GOODS AND SERVICES AND COMPETITION IN TAS BUSINESS;
· THIS PRESS RELEASE REFERENCES LOCATIONS THAT TA HAS PURCHASED DURING 2013. THE IMPLICATION OF THIS STATEMENT MAY BE THAT TA WILL BE ABLE TO OPERATE ITS PURCHASED LOCATIONS PROFITABLY. MANY OF THE LOCATIONS TA HAS ACQUIRED PRODUCED OPERATING RESULTS WHICH MAY HAVE CAUSED THE PRIOR OWNERS TO EXIT THESE BUSINESSES AND TAS ABILITY TO OPERATE THESE LOCATIONS PROFITABLY DEPENDS UPON MANY FACTORS, INCLUDING TAS ABILITY TO INTEGRATE NEW OPERATIONS INTO ITS EXISTING OPERATIONS, AND SOME FACTORS WHICH ARE BEYOND TAS CONTROL SUCH AS THE LEVEL OF DEMAND FOR TAS GOODS AND SERVICES ARISING FROM THE U.S. ECONOMY GENERALLY; AND
· THIS PRESS RELEASE STATES THAT DURING THE FIRST HALF OF 2013 TA MADE CAPITAL INVESTMENTS OF $84.7 MILLION FOR IMPROVEMENTS TO EXISTING AND ACQUIRED LOCATIONS, AND SOLD TO HPT $45.2 MILLION OF IMPROVEMENTS TO LOCATIONS LEASED FROM HPT. TAS REGULAR OPERATIONS REQUIRE LARGE AMOUNTS OF CAPITAL INVESTMENT TO MAINTAIN THE COMPETITIVENESS OF TAS LOCATIONS AND HPT IS NOT OBLIGATED TO PURCHASE IMPROVEMENTS TO LEASED LOCATIONS FROM TA. FURTHER, TA IS OBLIGATED TO PAY INCREASED RENT AS A RESULT OF CAPITAL IMPROVEMENTS IT SELLS TO HPT PURSUANT TO THE TERMS OF THE LEASES WITH HPT. THERE CAN BE NO ASSURANCE THAT TA WILL HAVE SUFFICIENT WORKING CAPITAL OR CASH LIQUIDITY TO FUND FUTURE CAPITAL INVESTMENTS.
THESE AND OTHER UNEXPECTED RESULTS MAY BE CAUSED BY VARIOUS FACTORS, SOME OF WHICH ARE BEYOND TAS CONTROL, INCLUDING:
· THE IMPACT OF CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS ON TA, ITS CUSTOMERS AND ITS FRANCHISEES;
· COMPLIANCE WITH, AND CHANGES TO, FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS, ACCOUNTING RULES, TAX RATES AND SIMILAR MATTERS;
· COMPETITION WITHIN THE TRAVEL CENTER INDUSTRY;
· FUTURE FUEL PRICE INCREASES, FUEL PRICE VOLATILITY, COMPETITION OR OTHER FACTORS MAY CAUSE TA TO NEED MORE WORKING CAPITAL TO MAINTAIN ITS INVENTORIES AND CARRY ITS ACCOUNTS RECEIVABLE THAN TA NOW EXPECTS;
· ACQUISITIONS MAY SUBJECT TA TO ADDITIONAL OR GREATER RISKS THAN TAS CONTINUING OPERATIONS, INCLUDING THE ASSUMPTION OF UNKNOWN LIABILITIES;
· IN THE PAST, INCREASES IN FUEL PRICES HAVE REDUCED THE DEMAND FOR THE PRODUCTS AND SERVICES THAT TA SELLS BECAUSE HIGH FUEL PRICES MAY HAVE ENCOURAGED FUEL CONSERVATION, DIRECTED FREIGHT BUSINESS AWAY FROM TRUCKING OR OTHERWISE ADVERSELY AFFECTED THE BUSINESS OF TAS CUSTOMERS. FUTURE INCREASES IN FUEL PRICES MAY HAVE SIMILAR AND OTHER ADVERSE EFFECTS ON TAS BUSINESS AND SOME OF THESE PAST CONSEQUENCES MAY CONTINUE, WHICH MAY ADVERSELY AFFECT TAS BUSINESS EVEN IF FUEL PRICES DO NOT INCREASE;
· TAS SUPPLIERS MAY BE UNWILLING OR UNABLE TO MAINTAIN TAS CURRENT TERMS FOR PURCHASES ON CREDIT. IF TA IS UNABLE TO PURCHASE GOODS ON REASONABLE CREDIT TERMS, TAS REQUIRED WORKING CAPITAL MAY
INCREASE AND TA MAY INCUR MATERIAL LOSSES. IN TIMES OF RISING FUEL AND NONFUEL PRICES, TAS SUPPLIERS MAY BE UNWILLING OR UNABLE TO INCREASE THE CREDIT AMOUNTS THEY EXTEND TO TA, WHICH MAY REQUIRE TA TO INCREASE ITS WORKING CAPITAL INVESTMENT. ALSO, IN LIGHT OF TAS HISTORICAL OPERATING LOSSES, THE AVAILABILITY AND THE TERMS OF ANY CREDIT TA MAY BE ABLE TO OBTAIN ARE UNCERTAIN;
· MOST OF TAS TRUCKING CUSTOMERS TRANSACT BUSINESS WITH TA BY USE OF FUEL CARDS, WHICH ARE ISSUED BY THIRD PARTY FUEL CARD COMPANIES. THE FUEL CARD INDUSTRY HAS ONLY A FEW SIGNIFICANT PARTICIPANTS. FUEL CARD COMPANIES FACILITATE PAYMENTS TO TA, AND CHARGE TA FEES FOR THESE SERVICES. COMPETITION, OR LACK THEREOF, AMONG THE FUEL CARD COMPANIES MAY RESULT IN FUTURE INCREASES IN TAS TRANSACTION FEE EXPENSES OR WORKING CAPITAL REQUIREMENTS, OR BOTH;
· TA IS ROUTINELY INVOLVED IN LITIGATION AND OTHER LEGAL MATTERS INCIDENTAL TO THE ORDINARY COURSE OF ITS BUSINESS. DISCOVERY AND COURT DECISIONS DURING LITIGATION OFTEN HAVE UNANTICIPATED RESULTS. LITIGATION IS EXPENSIVE AND DISTRACTING TO MANAGEMENT. TA CAN PROVIDE NO ASSURANCE AS TO THE OUTCOME OF ANY OF THE LITIGATION MATTERS IN WHICH IT IS OR MAY BECOME INVOLVED;
· ACTS OF TERRORISM, GEOPOLITICAL RISKS, WARS, OUTBREAKS OF SO CALLED PANDEMICS OR OTHER MANMADE OR NATURAL DISASTERS BEYOND TAS CONTROL MAY ADVERSELY AFFECT TAS OPERATING RESULTS;
· ALTHOUGH TA BELIEVES THAT IT BENEFITS FROM ITS CONTINUING RELATIONSHIPS WITH HPT, REIT MANAGEMENT & RESEARCH LLC, OR RMR, AFFILIATES INSURANCE COMPANY, OR AIC, AND THEIR AFFILIATED AND RELATED PERSONS AND ENTITIES, ACTUAL AND POTENTIAL CONFLICTS OF INTEREST WITH TAS MANAGING DIRECTORS, HPT, RMR, AIC AND AFFILIATED AND RELATED PERSONS AND ENTITIES MAY PRESENT A CONTRARY PERCEPTION OR RESULT IN LITIGATION;
· AS A RESULT OF CERTAIN TRADING IN TAS SHARES DURING 2007, TA EXPERIENCED AN OWNERSHIP CHANGE AS DEFINED BY SECTION 382 OF THE INTERNAL REVENUE CODE, OR THE CODE. CONSEQUENTLY, TA IS UNABLE TO USE ITS NET OPERATING LOSS GENERATED IN 2007 TO OFFSET ANY FUTURE TAXABLE INCOME. IF TA EXPERIENCES ADDITIONAL OWNERSHIP CHANGES, AS DEFINED IN THE CODE, ITS NET OPERATING LOSSES GENERATED AFTER 2007 COULD ALSO BE SUBJECT TO USAGE LIMITATIONS; AND
· TAS LIMITED LIABILITY COMPANY AGREEMENT AND BYLAWS AND CERTAIN OF TAS OTHER AGREEMENTS AND BUSINESS LICENSES INCLUDE VARIOUS PROVISIONS WHICH MAY DETER A CHANGE OF CONTROL OF TA AND, AS A RESULT, TAS SHAREHOLDERS MAY BE UNABLE TO REALIZE A TAKE OVER PREMIUM FOR THEIR SHARES.
TA ACCUMULATED A SIGNIFICANT DEFICIT DURING THE YEARS 2007 THROUGH 2010. ALTHOUGH TA GENERATED NET INCOME FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2012, AND TAS PLANS ARE INTENDED TO GENERATE NET INCOME IN FUTURE PERIODS, THERE CAN BE NO ASSURANCE THAT THESE PLANS WILL SUCCEED.
RESULTS THAT DIFFER FROM THOSE STATED OR IMPLIED BY TAS FORWARD LOOKING STATEMENTS MAY ALSO BE CAUSED BY VARIOUS CHANGES IN TAS BUSINESS OR MARKET CONDITIONS, AS DESCRIBED MORE FULLY IN TAS PERIODIC REPORTS, INCLUDING TAS ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2012, FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION, OR SEC, AND TAS QUARTERLY REPORT ON FORM 10-Q FOR THE THREE MONTHS ENDED JUNE 30, 2013, TO BE FILED WITH THE SEC, UNDER WARNING CONCERNING FORWARD LOOKING STATEMENTS, AND RISK FACTORS AND ELSEWHERE IN THOSE REPORTS. COPIES OF THOSE REPORTS ARE OR WILL BE AVAILABLE AT THE WEBSITE OF THE U.S. SECURITIES AND EXCHANGE COMMISSION: WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS. EXCEPT AS REQUIRED BY LAW, TA UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
TRAVELCENTERS OF AMERICA LLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
|
|
Three Months Ended June 30, |
| ||||
|
|
2013 |
|
2012 |
| ||
Revenues: |
|
|
|
|
| ||
Fuel |
|
$ |
1,635,400 |
|
$ |
1,689,007 |
|
Nonfuel |
|
380,041 |
|
348,743 |
| ||
Rent and royalties |
|
3,313 |
|
3,757 |
| ||
Total revenues |
|
2,018,754 |
|
2,041,507 |
| ||
|
|
|
|
|
| ||
Cost of goods sold (excluding depreciation): |
|
|
|
|
| ||
Fuel |
|
1,545,588 |
|
1,592,870 |
| ||
Nonfuel |
|
171,938 |
|
154,414 |
| ||
Total cost of goods sold (excluding depreciation) |
|
1,717,526 |
|
1,747,284 |
| ||
|
|
|
|
|
| ||
Operating expenses: |
|
|
|
|
| ||
Site level operating |
|
190,646 |
|
176,088 |
| ||
Selling, general & administrative |
|
24,482 |
|
24,366 |
| ||
Real estate rent |
|
52,104 |
|
49,347 |
| ||
Depreciation and amortization |
|
14,025 |
|
12,405 |
| ||
Total operating expenses |
|
281,257 |
|
262,206 |
| ||
|
|
|
|
|
| ||
Income from operations |
|
19,971 |
|
32,017 |
| ||
|
|
|
|
|
| ||
Income from equity investees |
|
723 |
|
662 |
| ||
Acquisition costs |
|
(205 |
) |
(316 |
) | ||
Interest income |
|
307 |
|
360 |
| ||
Interest expense |
|
(4,430 |
) |
(2,482 |
) | ||
Income before income taxes |
|
16,366 |
|
30,241 |
| ||
Provision for income taxes |
|
382 |
|
389 |
| ||
Net income |
|
$ |
15,984 |
|
$ |
29,852 |
|
|
|
|
|
|
| ||
Net income per share: |
|
|
|
|
| ||
Basic and diluted |
|
$ |
0.54 |
|
$ |
1.04 |
|
These financial statements should be read in conjunction with TAs Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, to be filed with the U.S. Securities and Exchange Commission.
TRAVELCENTERS OF AMERICA LLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
|
|
Six Months Ended June 30, |
| ||||
|
|
2013 |
|
2012 |
| ||
Revenues: |
|
|
|
|
| ||
Fuel |
|
$ |
3,260,507 |
|
$ |
3,372,200 |
|
Nonfuel |
|
709,235 |
|
656,897 |
| ||
Rent and royalties |
|
6,363 |
|
7,279 |
| ||
Total revenues |
|
3,976,105 |
|
4,036,376 |
| ||
|
|
|
|
|
| ||
Cost of goods sold (excluding depreciation): |
|
|
|
|
| ||
Fuel |
|
3,093,767 |
|
3,207,617 |
| ||
Nonfuel |
|
317,303 |
|
291,184 |
| ||
Total cost of goods sold (excluding depreciation) |
|
3,411,070 |
|
3,498,801 |
| ||
|
|
|
|
|
| ||
Operating expenses: |
|
|
|
|
| ||
Site level operating |
|
374,579 |
|
346,225 |
| ||
Selling, general & administrative |
|
47,709 |
|
47,533 |
| ||
Real estate rent |
|
103,988 |
|
98,845 |
| ||
Depreciation and amortization |
|
27,248 |
|
24,264 |
| ||
Total operating expenses |
|
553,524 |
|
516,867 |
| ||
|
|
|
|
|
| ||
Income from operations |
|
11,511 |
|
20,708 |
| ||
|
|
|
|
|
| ||
Income from equity investees |
|
1,159 |
|
462 |
| ||
Acquisition costs |
|
(320 |
) |
(458 |
) | ||
Interest income |
|
542 |
|
582 |
| ||
Interest expense |
|
(8,495 |
) |
(4,994 |
) | ||
Income before income taxes |
|
4,397 |
|
16,300 |
| ||
Provision for income taxes |
|
552 |
|
633 |
| ||
Net income |
|
$ |
3,845 |
|
$ |
15,667 |
|
|
|
|
|
|
| ||
Net income per share: |
|
|
|
|
| ||
Basic and diluted |
|
$ |
0.13 |
|
$ |
0.54 |
|
These financial statements should be read in conjunction with TAs Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, to be filed with the U.S. Securities and Exchange Commission.
TRAVELCENTERS OF AMERICA LLC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
|
|
June 30, |
|
December 31, |
| ||
|
|
2013 |
|
2012 |
| ||
Assets |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
135,091 |
|
$ |
35,189 |
|
Accounts receivable, net |
|
179,084 |
|
106,273 |
| ||
Inventories |
|
192,404 |
|
191,006 |
| ||
Other current assets |
|
56,075 |
|
61,020 |
| ||
Total current assets |
|
562,654 |
|
393,488 |
| ||
|
|
|
|
|
| ||
Property and equipment, net |
|
609,444 |
|
576,512 |
| ||
Goodwill and intangible assets, net |
|
24,571 |
|
20,041 |
| ||
Other noncurrent assets |
|
33,414 |
|
28,240 |
| ||
Total assets |
|
$ |
1,230,083 |
|
$ |
1,018,281 |
|
|
|
|
|
|
| ||
Liabilities and Shareholders Equity |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
|
$ |
209,387 |
|
$ |
143,605 |
|
Current HPT Leases Liabilities |
|
31,557 |
|
28,354 |
| ||
Other current liabilities |
|
143,078 |
|
111,168 |
| ||
Total current liabilities |
|
384,022 |
|
283,127 |
| ||
|
|
|
|
|
| ||
Noncurrent HPT Leases liabilities |
|
344,750 |
|
351,135 |
| ||
Senior Notes due 2028 |
|
110,000 |
|
|
| ||
Other noncurrent liabilities |
|
32,579 |
|
30,585 |
| ||
Total liabilities |
|
871,351 |
|
664,847 |
| ||
|
|
|
|
|
| ||
Shareholders equity |
|
358,732 |
|
353,434 |
| ||
Total liabilities and shareholders equity |
|
$ |
1,230,083 |
|
$ |
1,018,281 |
|
These financial statements should be read in conjunction with TAs Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, to be filed with the U.S. Securities and Exchange Commission.
TRAVELCENTERS OF AMERICA LLC
CONSOLIDATED SUPPLEMENTAL DATA
(in thousands)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
Calculation of EBITDAR:(1) |
|
|
|
|
|
|
|
|
| ||||
Net income |
|
$ |
15,984 |
|
$ |
29,852 |
|
$ |
3,845 |
|
$ |
15,667 |
|
Add: income taxes |
|
382 |
|
389 |
|
552 |
|
633 |
| ||||
Add: depreciation and amortization |
|
14,025 |
|
12,405 |
|
27,248 |
|
24,264 |
| ||||
Deduct: interest income |
|
(307 |
) |
(360 |
) |
(542 |
) |
(582 |
) | ||||
Add: interest expense(2) |
|
4,430 |
|
2,482 |
|
8,495 |
|
4,994 |
| ||||
Add: real estate rent expense(3) |
|
52,104 |
|
49,347 |
|
103,988 |
|
98,845 |
| ||||
EBITDAR |
|
$ |
86,618 |
|
$ |
94,115 |
|
$ |
143,586 |
|
$ |
143,821 |
|
(1) EBITDAR is a not a GAAP financial measure. TA calculates EBITDAR as earnings before interest, taxes, depreciation, amortization and rent. TA believes EBITDAR is a useful indication of its operating performance and its ability to pay rent or service debt, make capital expenditures and expand its business. TA believes that EBITDAR is a meaningful disclosure that may help interested persons to better understand its financial performance, including comparing its performance between periods and to the performance of other companies. However, EBITDAR as presented may not be comparable to similarly titled amounts calculated by other companies. This information should not be considered as an alternative to net income, income from continuing operations, operating profit, cash flow from operations or any other operating or liquidity performance measure prescribed by U.S. generally accepted accounting principles, or GAAP.
(2) Interest expense included the following:
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
Interest related to TAs Senior Notes and Credit Facility |
|
$ |
2,742 |
|
$ |
533 |
|
$ |
5,115 |
|
$ |
1,071 |
|
HPT rent classified as interest |
|
1,743 |
|
1,810 |
|
3,484 |
|
3,620 |
| ||||
Amortization of deferred financing costs |
|
170 |
|
88 |
|
325 |
|
175 |
| ||||
Capitalized interest |
|
(316 |
) |
|
|
(641 |
) |
|
| ||||
Other |
|
91 |
|
51 |
|
212 |
|
128 |
| ||||
|
|
$ |
4,430 |
|
$ |
2,482 |
|
$ |
8,495 |
|
$ |
4,994 |
|
(3) Real estate rent expense recognized under GAAP differs from TAs obligation to pay cash for rent under its leases. Cash paid under real property lease agreements was $56,064 and $54,166 during the three month periods ended June 30, 2013 and 2012, respectively, while the total rent amounts expensed during the quarters ended June 30, 2013 and 2012, were $52,104 and $49,347, respectively. Cash paid under lease agreements was $112,323 and $107,744 during the six month periods ended June 30, 2013 and 2012, respectively, while the total rent amounts expensed during the six months ended June 30, 2013 and 2012, were $103,988 and $98,845, respectively. GAAP requires recognition of minimum lease payments payable during the lease term in equal amounts on a straight line basis over the lease term. In addition, under GAAP, a portion of the rent TA pays to HPT is classified as interest expense and a portion of the rent payments to HPT is applied to amortize a sale/leaseback financing obligation. Also, under GAAP, TA amortizes as a reduction of rent expense the deferred tenant improvement allowance that HPT paid to TA during the four years from 2007 through 2010 and the deferred gain realized on the sale of assets that TA leased back. A reconciliation of these amounts is as follows.
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash payments to HPT for rent |
|
$ |
53,473 |
|
$ |
51,713 |
|
$ |
107,125 |
|
$ |
102,897 |
|
Other cash rental payments |
|
2,591 |
|
2,453 |
|
5,198 |
|
4,847 |
| ||||
Total cash payments under real property leases |
|
56,064 |
|
54,166 |
|
112,323 |
|
107,744 |
| ||||
Adjustments for: |
|
|
|
|
|
|
|
|
| ||||
Accrued estimated percentage rent not yet paid |
|
584 |
|
208 |
|
584 |
|
208 |
| ||||
Noncash straight line rent accrual HPT |
|
(523 |
) |
(1,013 |
) |
(900 |
) |
(1,134 |
) | ||||
Noncash straight line rent accrual other |
|
3 |
|
54 |
|
24 |
|
163 |
| ||||
Amortization of sale/leaseback financing obligation |
|
(512 |
) |
(549 |
) |
(1,022 |
) |
(1,098 |
) | ||||
Portion of rent payments classified as interest expense |
|
(1,743 |
) |
(1,810 |
) |
(3,484 |
) |
(3,620 |
) | ||||
Amortization of deferred tenant improvements allowance |
|
(1,692 |
) |
(1,692 |
) |
(3,384 |
) |
(3,384 |
) | ||||
Amortization of deferred gain on sale/leaseback transactions |
|
(77 |
) |
(17 |
) |
(153 |
) |
(34 |
) | ||||
Total amount expensed as rent |
|
$ |
52,104 |
|
$ |
49,347 |
|
$ |
103,988 |
|
$ |
98,845 |
|
SUPPLEMENTAL SAME SITE OPERATING DATA
The following table presents operating data for all of the locations in operation on June 30, 2013, that were operated by TA continuously since the beginning of the earliest applicable period presented. This data excludes revenues and expenses that were not generated at locations TA operates, such as rents and royalties from franchises, and corporate level selling, general and administrative expenses.
TRAVELCENTERS OF AMERICA LLC
SAME SITE OPERATING DATA(1)
(in thousands, except for number of locations and percentage amounts)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| ||||||||||||
|
|
2013 |
|
2012 |
|
Change |
|
2013 |
|
2012 |
|
Change |
| ||||
Number of company operated locations |
|
192 |
|
192 |
|
|
|
191 |
|
191 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Fuel sales volume (gallons) |
|
482,022 |
|
500,122 |
|
(3.6 |
)% |
943,299 |
|
984,615 |
|
(4.2 |
)% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Fuel revenues |
|
$ |
1,512,711 |
|
$ |
1,600,826 |
|
(5.5 |
)% |
$ |
3,026,024 |
|
$ |
3,193,318 |
|
(5.2 |
)% |
Fuel gross margin |
|
$ |
84,594 |
|
$ |
95,670 |
|
(11.6 |
)% |
$ |
158,089 |
|
$ |
163,230 |
|
(3.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Nonfuel revenues |
|
$ |
359,389 |
|
$ |
347,284 |
|
3.5 |
% |
$ |
670,585 |
|
$ |
653,442 |
|
2.6 |
% |
Nonfuel gross margin |
|
$ |
196,657 |
|
$ |
193,542 |
|
1.6 |
% |
$ |
370,485 |
|
$ |
363,870 |
|
1.8 |
% |
Nonfuel gross margin percentage |
|
54.7 |
% |
55.7 |
% |
(100 |
)pts |
55.2 |
% |
55.7 |
% |
(50 |
)pts | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total gross margin |
|
$ |
281,251 |
|
$ |
289,212 |
|
(2.8 |
)% |
$ |
528,574 |
|
$ |
527,100 |
|
0.3 |
% |
Site level operating expenses |
|
$ |
178,720 |
|
$ |
173,436 |
|
3.0 |
% |
$ |
347,442 |
|
$ |
339,244 |
|
2.4 |
% |
Site level operating expenses as a percentage of nonfuel revenues |
|
49.7 |
% |
49.9 |
% |
20 |
pts |
51.8 |
% |
51.9 |
% |
10 |
pts | ||||
Site level gross margin in excess of site level operating expense |
|
$ |
102,531 |
|
$ |
115,776 |
|
(11.4 |
)% |
$ |
181,132 |
|
$ |
187,856 |
|
(3.6 |
)% |
(1) Excludes two locations TA operates that are owned by a joint venture and locations operated by TAs franchisees.
(End)