TravelCenters of America (TA) Misses Q3 EPS by 17c, Miss on Revenues

TravelCenters of America (NASDAQ: TA) reported Q3 EPS of $0.04, $0.17 worse than the analyst estimate of $0.21. Revenue for the quarter came in at $1.66 billion versus the consensus estimate of $1.94 billion.

Andrew J. Rebholz, TA\'s CEO, made the following statement regarding the 2018 third quarter results:

"This past quarter, TA took a meaningful step forward in support of our strategy to be a more focused leader in the travel center industry. The decision to sell our standalone convenience stores business will allow us to spend more time managing our core travel centers business, thoughtfully pursuing our growth programs and addressing the company\'s leverage. We expect this sale will be completed before year end 2018.

"In addition to the standalone convenience stores divestment, we also opened our first four smaller format TA Express™ travel centers. We also have been actively engaged with several travel center network expansion opportunities; I am hopeful we will have some deals signed up before year end 2018. In addition to addressing our leverage, 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.

"The estimated loss we recognized in connection with our decision to sell the standalone convenience stores was the primary driver of our net loss for the quarter, but after adjusting for unique items in the 2018 and 2017 third quarters our adjusted income from continuing operations is comparable to the prior year quarter and our adjusted EBITDA exceeded the prior year quarter. The adjusted EBITDA amounts for the 2018 and 2017 third quarters exclude $5.4 million and $9.4 million, respectively, of EBITDA generated by the discontinued operations. Overall, after taking into consideration the number of significant unique items, during the 2018 third quarter our continuing operations generated approximately 2.9% more site level gross margin in excess of site level operating expenses than in the prior year quarter led by continued strong growth in our truck service business."

For earnings history and earnings-related data on TravelCenters of America (TA) click here.

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