TravelCenters of America (TA) Tops Q1 EPS by 35c, Revenues Beat

TravelCenters of America (NASDAQ: TA) reported Q1 EPS of ($0.37), $0.35 better than the analyst estimate of ($0.72). Revenue for the quarter came in at $1.53 billion versus the consensus estimate of $1.41 billion.

"Our improved operating results in the first quarter demonstrate the early progress of our Transformation Plan, despite the continuing adverse impact of the pandemic on our full service restaurants and gasoline volumes. We reduced our net loss from $18.5 million to $5.7 million and more than doubled adjusted EBITDA from $13.8 million to $28.6 million compared to the prior year first quarter, with the improvement driven primarily by a $12.4 million increase in nonfuel gross margin and a $9.3 million reduction in site level operating expense. Our discipline in rationalizing and managing expenses continues to be a primary factor in delivering improved results, helping to drive a 230 basis point improvement in adjusted EBITDAR margin versus the prior year first quarter.

"While diesel fuel sales volume increased 13.6% over the prior year first quarter, overall fuel gross margin decreased 5.5% because of low volatility in the diesel fuel market that began during the fourth quarter and persisted into early March of 2021 as well as lower gasoline volume as a result of reduced four wheel traffic. Total nonfuel revenues increased 5.4% over the prior year first quarter, driven by significant growth in store and retail services, truck service and diesel exhaust fluid, or DEF. Excluding full service restaurants, many of which remain closed due to governmental mandates and our own precautions and decisions, total nonfuel revenues increased 12.0% over the prior year first quarter.

"We continue to move forward with our expansive capital plan, which focuses on improving the customer experience through remedial site improvements, reimagined restaurant offerings, information technology upgrades and increased availability of biodiesel and DEF. We also recently announced our commitment to sustainability and alternative energy with the creation of a new business division, eTA, to serve the changing needs of our customers and their energy requirements. With eTA we plan to be a leader in the area of sustainability and alternative energy in the travel center industry. We were recently awarded a California Energy Commission grant and are developing collaborative relationships with groups in both electric and hydrogen vehicles."

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

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