TravelCenters of America (TA) Misses Q1 EPS by $1.13, Revenues Miss

TravelCenters of America (NASDAQ: TA) reported Q1 EPS of ($1.81), $1.13 worse than the analyst estimate of ($0.68). Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.4 billion.

Jonathan M. Pertchik, TA's CEO, made the following statement regarding the 2020 first quarter results:

"We navigated through a challenging first quarter, the latter part of which was heavily impacted by the COVID-19 pandemic. Our fuel sales volume during the first quarter increased 3.6%, which was driven entirely by diesel fuel sales volume. Our gasoline sales volume, after being up most of the first quarter, declined significantly beginning mid-March as consumers responded to the COVID-19 pandemic. Despite the decrease in gasoline sales volume, total fuel gross margin was strong in March as both diesel fuel and gasoline costs declined as a result of reduced demand, which resulted in a 9.6% increase in our fuel gross margin for the 2020 first quarter.

"The strong fuel gross margin was more than offset by a decline in our nonfuel gross margin primarily due to the government-mandated stay at home orders and temporary closures of certain full service restaurants that were issued in mid-March, which affected the traffic at locations we operate. In addition to dealing with the effects of the COVID-19 pandemic, the results from our truck service and stores were largely impacted by unseasonably mild weather experienced in the 2020 first quarter as compared to extreme cold weather in the 2019 first quarter.

"On April 30, 2020, TA commenced a company-wide reorganization, which includes an approximately 130 position reduction in force, numerous leadership changes, the creation of both a corporate development and also a procurement group, which we expect to result in approximately $13.1 million of net annual savings in selling, general and administrative expense, and the planning for a wide array and long list of initiatives to improve overall company performance, by addressing both top line and bottom line challenges and opportunities."

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

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Z Squared outlines AI power strategy and Paradox Data acquisition
• Optimum Communications gets NYSE non-compliance notice over stock price