TravelCenters of America (TA) Misses Q2 EPS by 9c, Revenues Beat

TravelCenters of America (NASDAQ: TA) reported Q2 EPS of $0.59, $0.09 worse than the analyst estimate of $0.68. Revenue for the quarter came in at $986.1 million versus the consensus estimate of $913.02 million.

• Fuel Gross Margin Increased 19.6% and Adjusted Fuel Gross Margin Increased 9.6% for the 2020 Second Quarter
• Net Income Increased 78.3%, Adjusted EBITDA Increased 22.1% and Adjusted EBITDAR Increased 6.5% for the 2020 Second Quarter
• Net Income Per Share of Common Stock Attributable to Common Stockholders of $0.26 and Adjusted Net Income Per Share of Common Stock Attributable to Common Stockholders of $0.59 for the 2020 Second Quarter

"Despite the challenges presented by a global pandemic and a corresponding shutdown of major portions of the U.S. economy for a large part of the 2020 second quarter, our newly constituted senior leadership team, together with our broader organization, generated increases of 78.3% in net income, 22.1% in adjusted EBITDA and 6.5% in adjusted EBITDAR over the prior year second quarter. Although nonfuel revenues decreased 14.8% during the second quarter, adjusted EBITDAR margin increased to 20.7% as compared to 17.2% last year. The improved year-over-year performance was a consequence of improved discipline in managing expenses, prompt furloughing of employees in response to reduced business as a result of COVID-19 and business management improvements. In addition, fuel gross margin increased by 19.6% and adjusted fuel gross margin increased by 9.6% versus prior year, driven by a favorable fuel purchasing environment, changes to our approach to pricing and the federal biodiesel blenders' tax credit.

"On a strategic front, in early July, we raised approximately $80.1 million of net proceeds in an equity offering intended primarily to fund deferred maintenance and other capital expenditures necessary to update property conditions and implement growth initiatives, as well as for working capital and for general corporate purposes. With this capital raise complete, our management team in place and our plan to transform the business in hand, we can focus our collective energy on executing through operational initiatives to improve TA’s performance and create long term value for our stockholders."

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

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